SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April 17, 2000
BANK OF AMERICA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
1-6523
(Commission File Number)
56-0906609
(IRS Employer Identification No.)
100 North Tryon Street
Charlotte, North Carolina
(Address of principal executive offices)
28255
(Zip Code)
(704) 386-5000
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS.
Release of First Quarter Earnings. On April 17, 2000, Bank of America
Corporation, the registrant (the "Registrant"), announced financial results for
the first quarter of fiscal 2000, reporting earnings of $2.24 billion and
diluted earnings per common share of $1.33. A copy of the press release
announcing the results of the Registrant's fiscal quarter ended March 31, 2000
is filed as Exhibit 99.1 to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
The following exhibit is filed herewith:
EXHIBIT NO. DESCRIPTION OF EXHIBIT
99.1 Press Release dated April 17, 2000 with
respect to the Registrant's financial
results for the fiscal quarter ended
March 31, 2000.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
BANK OF AMERICA CORPORATION
By: /s/ Marc D. Oken
---------------------------
Marc D. Oken
Executive Vice President and
Principal Financial Executive
Dated: April 19, 2000
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION OF EXHIBIT
99.1 Press Release dated April 17, 2000 with
respect to the Registrant's financial
results for the fiscal quarter ended March
31, 2000.
EXHIBIT 99.1
April 17, 2000
Contact:
Investors Susan Carr (704-386-8059) or Kevin Stitt (704-386-5667)
Media Bob Stickler or Sharon Tucker (704-386-8465)
Bank of America Earnings Per Share Increase 23% To $1.33
CHARLOTTE, April 17, 2000 - Paced by a 10 percent increase in revenue generated
by widespread gains in most business lines, earnings at Bank of America
Corporation increased 23 percent to $1.33 per share (diluted) in the first
quarter from $1.08 a year earlier.
Net income increased 17 percent to $2.24 billion from $1.91 billion a year ago.
The return on common equity rose to 19.6 percent from 16.8 percent and the
return on assets increased to 1.38 percent from 1.27 percent.
Cash-basis earnings - which exclude the amortization of intangibles - were
$2.46 billion, or $1.46 per share, in the latest quarter. The return on average
tangible common shareholders' equity was 30.8 percent.
"The growth in revenue and earnings this quarter demonstrates that our strategy
to create more valuable customer relationships is beginning to show results,"
said Hugh L. McColl, Jr., Bank of America chairman and chief executive officer.
"We are gaining market share in many investment banking products as we meet more
of our business clients' financial needs. Our customer retention continues to
improve, and we are having good success in rewarding customers who bring more of
their business to our company.
more
<PAGE>
Page 2
"One of the company's most important strategic goals is to maintain our
leadership in developing our Internet capabilities to improve the customer
experience and participate in the New Economy," McColl said. Among the
highlights in the first quarter:
o The company expanded its technology leadership to meet two important
objectives: provide better service to customers and connect those customers
to the increasing number of e-commerce capabilities as they become
available. Initiatives are underway in both areas to accomplish the
company's strategy of creating more valuable customer relationships.
o New online banking enrollments increased to 125,000 per month, from a pace
of 80,000 per month a year earlier, as total online retail customers rose
to more than 2.1 million. Penetration increased to 14 percent of customers
holding Bank of America checking accounts. Visitors to BankofAmerica.com
increased by more than 70 percent, and consumer loan products sold over the
Internet increased by 300 percent from a year earlier.
o An alliance announced with Ariba intends to combine the Bank of America
financial services engine with Ariba's leading business-to-business
commerce platform resulting in a complete purchase-to-payment system for
business-to-business commerce activities.
o Use of Bank of America Direct, the company's web-based cash management
system, grew more than 500 percent from a year earlier.
First Quarter Financial Highlights (compared to a year ago)
o Total revenue climbed 10 percent, fueled by a 26 percent increase in
noninterest income.
o Noninterest income rose to 47 percent of revenue driven by higher equity
investment gains along with significant improvement in trading, investment
banking and card income.
o The efficiency ratio improved more than 300 basis points to 53 percent.
Noninterest expense, excluding incentive compensation, was flat.
o Average managed consumer loans and leases increased 19 percent.
o Net charge-offs declined to an annualized .45 percent of loans and leases -
an improvement of 13 basis points.
more
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Page 3
Net Interest Income
Fully taxable-equivalent net interest income of $4.60 billion was 1 percent
below a year earlier, but 1 percent above the fourth quarter of 1999. Loan
growth and higher levels of core deposits and equity did not fully offset the
impact of asset securitizations and loan sales during 1999, spread compression
and share repurchases.
Average managed loans and leases grew 9 percent to $406 billion, primarily
reflecting a 19 percent increase in consumer loans and leases. Average domestic
deposits grew by 2 percent, or $5.8 billion, to $295 billion. The net interest
yield declined 31 basis points to 3.27 percent due to a higher level of
lower-yielding trading-related assets and investment securities as well as
spread compression and the cost of share repurchases.
Noninterest Income
Noninterest income increased 26 percent to $4.05 billion, reflecting the
company's strategy to expand customer relationships through both traditional
banking and other financial service products. Noninterest income rose to 47
percent of revenue from 41 percent a year earlier.
Trading profits were up 45 percent from last year's strong first quarter. Led by
a 149 percent increase in securities underwriting fees, investment banking
results rose 70 percent, reflecting the continuing benefits of the expansion
of that platform begun last year.
Equity investment gains improved by $408 million, which included $219 million
realized through sales and $189 million due to appreciation in fair value.
Investment and brokerage services, corporate service charges and card income
also improved significantly, as the company successfully pursued its strategy to
gain more business through such value packages as Money Manager.
Securities gains were $6 million compared to $130 million in the first quarter
of 1999.
Efficiency
Noninterest expense increased 4 percent to $4.62 billion, reflecting higher
incentives associated with increased results as well as spending on projects to
improve sales and service. These were somewhat offset by cost reductions
resulting from recent mergers. Of the $201 million increase in personnel
expense, $189 million was due to higher incentives. The efficiency ratio
improved to 53 percent from 57 percent a year earlier.
More
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Page 4
Credit Quality
The provision for credit losses in the first quarter was $420 million, down from
$510 million a year earlier. Net charge-offs were $420 million, down from
$519 million a year ago. Net charge-offs were equal to an annualized .45 percent
of loans and leases, a 13-basis-point improvement from a year ago.
Nonperforming assets were $3.48 billion, or .91 percent of loans, leases and
foreclosed properties on March 31, 2000, compared to $3.12 billion, or .86
percent a year earlier. The allowance for credit losses totaled $6.83 billion on
March 31, 2000, equal to 1.79 percent of loans and leases. The allowance was
$7.12 billion, or 1.96 percent of loans and leases, a year earlier.
Capital Strength
Total shareholders' equity was $45.3 billion at March 31, 2000. This represented
6.90 percent of period-end assets of $656 billion.
In June 1999, the company initiated a share buyback program of up to 130 million
shares. Through March 2000, 98 million shares had been repurchased, representing
an investment in Bank of America stock of almost $6 billion. Average (diluted)
common shares outstanding were 1.69 billion in the first quarter compared to
1.78 billion a year earlier.
Business Segment Results
Consumer and Commercial Banking, which serves individuals and businesses with
annual sales of up to $500 million, earned $1.06 billion. This segment
represented 47 percent of the company's net income.
Asset Management, which encompasses the private bank, trust, investment
management, mutual funds and retail brokerage, earned $154 million, representing
7 percent of total net income.
Global Corporate and Investment Banking, which serves large corporate,
institutional and government customers, earned $960 million, representing
43 percent of the company's earnings.
more
<PAGE>
Page 5
Bank of America is the largest bank in the United States. It has full-service
operations in 21 states and the District of Columbia and provides financial
products and services to 30 million households and two million businesses, as
well as providing international corporate financial services for business
transactions in 190 countries. The company's stock (ticker: BAC) is listed on
the New York, Pacific and London stock exchanges and certain shares are listed
on the Tokyo Stock Exchange.
www.bankofamerica.com
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Three Months
Ended March 31
----------------------------------
Financial Summary 2000 1999
-------------- -------------
(In millions, except per share data)
<S> <C> <C>
Net income $ 2,240 $ 1,914
Earnings per common share 1.34 1.10
Diluted earnings per common share 1.33 1.08
Cash basis earnings (1) 2,457 2,136
Cash basis earnings per common share 1.47 1.23
Cash basis diluted earnings per common share 1.46 1.20
Dividends paid per common share .50 .45
Price per share of common stock at period-end 52.44 70.63
Average common shares 1,669.311 1,737.562
Average diluted common shares 1,688.318 1,779.708
Summary Income Statement
(Taxable-equivalent basis in millions)
Net interest income $ 4,595 $ 4,645
Provision for credit losses (420) (510)
Gains on sales of securities 6 130
Noninterest income 4,046 3,223
Other noninterest expense (4,623) (4,453)
-------------- -------------
Income before income taxes 3,604 3,035
Income taxes - including FTE adjustment 1,364 1,121
-------------- -------------
Net income $ 2,240 $ 1,914
============== =============
Summary Balance Sheet
(Average balances in billions)
Loans and leases $ 376.584 $ 360.746
Managed loans and leases (2) 405.526 371.302
Securities 88.211 75.830
Earning assets 563.170 523.682
Total assets 651.019 609.624
Deposits 345.374 345.931
Shareholders' equity 46.030 46.279
Common shareholders' equity 45.953 46.208
Performance Indices
Return on average common shareholders' equity 19.59 % 16.78 %
Return on average tangible common shareholders' equity 30.83 27.44
Return on average assets 1.38 1.27
Return on average tangible assets 1.55 1.46
Net interest yield 3.27 3.58
Efficiency ratio 53.49 56.59
Cash basis efficiency ratio 50.98 53.76
Net charge-offs (in millions) $ 420 $ 519
% of average loans and leases .45 % .58 %
Managed bankcard net charge-offs as a % of average
managed bankcard receivables 5.43 6.01
(1) Cash basis earnings equals net income excluding amortization of goodwill and other intangible assets.
(2) Prior periods are restated for comparison (e.g. acquisitions, divestitures and securitizations).
<PAGE>
Bank of America Corporation - Continued
March 31
----------------------------------
2000 1999
----------------------------------
Balance Sheet Highlights
(In billions, except per share data)
Loans and leases $ 382.085 $ 363.102
Securities 83.851 78.469
Earning assets 564.356 529.980
Total assets 656.113 614.245
Deposits 351.626 343.317
Shareholders' equity 45.299 46.831
Common shareholders' equity 45.222 46.761
Per share 27.28 26.86
Total equity to assets ratio (period-end) 6.90 % 7.62 %
Risk-based capital
Tier 1 capital ratio 7.42 7.40
Total capital ratio 11.00 11.17
Leverage ratio 6.17 6.47
Common shares issued and outstanding (in millions) 1,657.754 1,740.872
Allowance for credit losses $ 6.827 $ 7.123
Allowance for credit losses as a % of loans and leases 1.79 % 1.96 %
Allowance for credit losses as a % of nonperforming loans 206.79 250.99
Nonperforming loans $ 3.302 $ 2.838
Nonperforming assets 3.481 3.120
Nonperforming assets as a % of:
Total assets .53 % .51 %
Loans, leases and foreclosed properties .91 .86
Other Data
Full-time equivalent headcount 152,948 166,422
Banking centers 4,502 4,676
ATMs 13,954 14,229
BUSINESS SEGMENT RESULTS - Three Months Ended March 31, 2000
(In millions)
Average Loans Return on Average
Total Revenue Net Income and Leases Equity
---------------- ------------------- ------------------ ------------------
Consumer and Commercial Banking $ 5,018 $ 1,060 $ 248,480 17.8 %
Asset Management 565 154 20,724 35.6
Global Corporate and Investment Banking 2,900 960 107,507 26.0
Other 158 66 n/m n/m
n/m = not meaningful
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Consolidated Financial Highlights
(Excludes Merger-Related Charges)
- ------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions Except Per Share Information, Shares in Millions)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2000 1999 1999 1999 1999
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operating net income $ 2,240 $ 2,115 $ 2,151 $ 2,060 $ 1,914
Cash basis earnings (1) 2,457 2,334 2,373 2,285 2,136
Operating earnings per common share 1.34 1.24 1.25 1.18 1.10
Diluted operating earnings per common share 1.33 1.23 1.23 1.15 1.08
Cash basis earnings per common share 1.47 1.37 1.38 1.31 1.23
Cash basis diluted earnings per common share 1.46 1.35 1.35 1.28 1.20
Dividends per common share .50 .50 .45 .45 .45
Average common shares issued and outstanding 1,669.311 1,701.092 1,722.307 1,743.503 1,737.562
Average diluted common shares issued and oustanding 1,688.318 1,725.187 1,755.146 1,786.844 1,779.708
Period-end common shares issued and outstanding 1,657.754 1,677.273 1,710.039 1,722.931 1,740.872
Period-end managed loans and leases* $ 410,464 $ 399,194 $ 383,073 $ 377,973 $ 372,574
Average managed loans and leases* 405,526 391,228 379,452 375,357 371,302
*Prior periods restated for comparison (e.g. acquisitions, divestitures and securitizations).
Performance ratios (Operating basis):
Return on average assets 1.38 % 1.33 % 1.40 % 1.34 % 1.27 %
Return on average tangible assets 1.55 1.50 1.58 1.53 1.46
Return on average common shareholders' equity 19.59 17.95 18.40 17.64 16.78
Return on average tangible common shareholders' equity 30.83 28.38 29.48 28.49 27.44
Efficiency ratio 53.49 55.91 54.34 54.44 56.59
Cash basis efficiency ratio 50.98 53.22 51.67 51.70 53.76
Net interest yield 3.27 3.32 3.46 3.53 3.58
Book value per common share $ 27.28 $ 26.44 $ 26.79 $ 26.44 $ 26.86
Market price per share of common stock:
High for the period 55 3/16 67 1/2 76 3/8 76 1/8 74 1/2
Low for the period 42 5/16 47 5/8 53 1/4 61 1/2 59 1/2
Closing price 52 7/16 50 3/16 55 11/16 73 5/16 70 5/8
Other data:
Number of banking centers 4,502 4,524 4,535 4,531 4,676
Number of ATMs 13,954 14,019 14,042 14,051 14,229
Full-time equivalent employees 152,948 155,906 158,886 161,919 166,422
(1) Cash basis earnings equals net income excluding amortization of goodwill and other intangible assets.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Consolidated Statement of Income
- ---------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions, Except Per Share Information)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2000 1999 1999 1999 1999
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans and leases $ 7,394 $ 7,063 $ 6,883 $ 6,853 $ 6,770
Interest and dividends on securities 1,331 1,300 1,208 1,143 1,175
Federal funds sold and securities
purchased under agreements to resell 575 458 440 387 381
Trading account assets 536 535 482 525 545
Other interest income 250 266 281 298 330
--------------------------------------------------------------
Total interest income 10,086 9,622 9,294 9,206 9,201
--------------------------------------------------------------
Interest expense
Deposits 2,495 2,324 2,198 2,168 2,312
Short-term borrowings 1,802 1,638 1,437 1,396 1,355
Trading account liabilities 181 190 189 150 129
Long-term debt 1,084 995 920 880 805
--------------------------------------------------------------
Total interest expense 5,562 5,147 4,744 4,594 4,601
--------------------------------------------------------------
Net interest income 4,524 4,475 4,550 4,612 4,600
Provision for credit losses 420 350 450 510 510
--------------------------------------------------------------
Net interest income after provision for credit losses 4,104 4,125 4,100 4,102 4,090
Gains on sales of securities 6 14 44 52 130
Noninterest income
Consumer service charges 618 669 644 634 603
Corporate service charges 489 477 480 439 453
-------------------------------------------------------------
Total service charges 1,107 1,146 1,124 1,073 1,056
-------------------------------------------------------------
Consumer investment and brokerage services 364 334 355 334 311
Corporate investment and brokerage services 121 103 63 133 115
-------------------------------------------------------------
Total investment and brokerage services 485 437 418 467 426
-------------------------------------------------------------
Mortgage servicing income 128 210 206 125 132
Investment banking income 397 394 363 421 233
Equity investment gains 563 205 339 134 155
Card income 484 558 557 497 394
Trading account profits 724 287 313 395 500
Other income 158 359 408 410 327
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Total noninterest income 4,046 3,596 3,728 3,522 3,223
--------------------------------------------------------------
Other noninterest expense
Personnel 2,534 2,378 2,336 2,261 2,333
Occupancy 418 419 417 395 396
Equipment 301 336 313 339 358
Marketing 119 98 145 147 147
Professional fees 105 178 160 166 126
Amortization of intangibles 217 219 222 225 222
Data processing 159 195 164 214 190
Telecommunications 131 142 131 140 136
Other general operating 515 456 498 446 420
General administrative and other 124 129 140 124 125
--------------------------------------------------------------
Total other noninterest expense 4,623 4,550 4,526 4,457 4,453
--------------------------------------------------------------
Operating income before income taxes 3,533 3,185 3,346 3,219 2,990
Income tax expense 1,293 1,070 1,195 1,159 1,076
--------------------------------------------------------------
Operating net income $ 2,240 $ 2,115 $ 2,151 $ 2,060 $ 1,914
--------------------------------------------------------------
Operating net income available to common shareholders $ 2,239 $ 2,114 $ 2,149 $ 2,059 $ 1,912
--------------------------------------------------------------
Per share information
Operating earnings per common share $1.34 $1.24 $1.25 $1.18 $1.10
--------------------------------------------------------------
Diluted operating earnings per common share $1.33 $1.23 $1.23 $1.15 $1.08
--------------------------------------------------------------
Dividends per common share $ .50 $ .50 $ .45 $ .45 $ .45
--------------------------------------------------------------
Average common shares issued and outstanding (in thousands) 1,669,311 1,701,092 1,722,307 1,743,503 1,737,562
--------------------------------------------------------------
Average diluted common shares issued and outstanding (in thousands) 1,688,318 1,725,187 1,755,146 1,786,844 1,779,708
--------------------------------------------------------------
As reported (includes merger-related charges, net of tax)
Net income $ 2,240 $ 1,902 $ 2,151 $ 1,915 $ 1,914
Net income available to common shareholders 2,239 1,901 2,149 1,914 1,912
Earnings per common share 1.34 1.12 1.25 1.10 1.10
Diluted earnings per common share 1.33 1.10 1.23 1.07 1.08
Certain prior period amounts have been reclassified to conform to current period classifications.
</TABLE>
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<TABLE>
<CAPTION>
Bank of America Corporation
Consolidated Balance Sheet
- -----------------------------------------------------------------------------------------------------------------
March 31 December 31 March 31
(Dollars in Millions) 2000 1999 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Cash and cash equivalents $27,259 $26,989 $25,925
Time deposits placed and other short-term investments 3,250 4,838 5,615
Federal funds sold and securities purchased under agreements to resell 39,801 37,928 26,751
Trading account assets 47,321 38,460 42,382
Securities:
Available-for-sale 82,557 81,647 76,947
Held-for-investment 1,294 1,422 1,522
- -----------------------------------------------------------------------------------------------------------------
Total securities 83,851 83,069 78,469
- -----------------------------------------------------------------------------------------------------------------
Loans and leases 382,085 370,662 363,102
Allowance for credit losses (6,827) (6,828) (7,123)
- -----------------------------------------------------------------------------------------------------------------
Loans and leases, net of allowance for credit losses 375,258 363,834 355,979
- -----------------------------------------------------------------------------------------------------------------
Premises and equipment, net 6,607 6,713 7,129
Customers' acceptance liability 2,362 1,869 2,194
Derivative-dealer assets 17,877 16,055 13,585
Interest receivable 3,870 3,777 3,620
Mortgage servicing rights 4,080 4,093 3,037
Goodwill 12,121 12,262 12,651
Core deposit and other intangibles 1,674 1,730 1,942
Other assets 30,782 30,957 34,966
- -----------------------------------------------------------------------------------------------------------------
Total assets $656,113 $632,574 $614,245
- -----------------------------------------------------------------------------------------------------------------
Liabilities
Deposits in domestic offices:
Noninterest-bearing $92,496 $93,476 $87,769
Interest-bearing 209,427 207,048 201,343
Deposits in foreign offices:
Noninterest-bearing 1,986 1,993 1,748
Interest-bearing 47,717 44,756 52,457
- -----------------------------------------------------------------------------------------------------------------
Total deposits 351,626 347,273 343,317
- -----------------------------------------------------------------------------------------------------------------
Federal funds purchased and securities sold under agreements to repurchase 83,775 74,561 74,767
Trading account liabilities 23,007 20,958 16,454
Derivative-dealer liabilities 17,805 16,200 14,372
Commercial paper 9,045 7,331 8,379
Other short-term borrowings 37,007 40,340 31,366
Acceptances outstanding 2,362 1,869 2,194
Accrued expenses and other liabilities 19,173 19,169 20,712
Long-term debt 62,059 55,486 50,899
Trust preferred securities 4,955 4,955 4,954
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 610,814 588,142 567,414
- -----------------------------------------------------------------------------------------------------------------
Shareholders' equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and
outstanding 1,807,349; 1,797,702 and 1,902,039 shares 77 77 81
Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and
outstanding 1,657,753,677; 1,677,273,267 and 1,740,871,815 shares 10,828 11,671 15,828
Retained earnings 37,089 35,681 32,128
Accumulated other comprehensive loss (2,492) (2,658) (580)
Other (203) (339) (626)
- -----------------------------------------------------------------------------------------------------------------
Total shareholders' equity 45,299 44,432 46,831
- -----------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $656,113 $632,574 $614,245
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<CAPTION>
Bank of America Corporation
Quarterly Taxable-Equivalent Data
-------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
First Quarter 2000 Fourth Quarter 1999
-------------------------------------------------------------
Interest Interest
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
--------------------------- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Earning assets:
Time deposits placed and other short-term investments $ 4,504 $ 75 6.65 % $ 4,512 $ 73 6.33 %
Federal funds sold and securities purchased under
agreements to resell 45,459 575 5.07 39,700 458 4.60
Trading account assets 39,733 542 5.47 38,453 544 5.63
Securities:
Available-for-sale (1) 86,878 1,332 6.15 85,009 1,301 6.10
Held-for-investment 1,333 24 7.19 1,433 25 7.25
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Total securities 88,211 1,356 6.16 86,442 1,326 6.12
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Loans and leases (2):
Commercial - domestic 145,362 2,824 7.81 140,674 2,707 7.64
Commercial - foreign 27,927 486 6.99 27,430 453 6.56
Commercial real estate - domestic 24,664 517 8.43 24,345 506 8.23
Commercial real estate - foreign 344 8 9.29 306 6 8.96
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Total commercial 198,297 3,835 7.78 192,755 3,672 7.56
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Residential mortgage 85,427 1,566 7.34 79,783 1,450 7.26
Home equity lines 17,573 377 8.62 16,882 345 8.12
Direct/Indirect consumer 41,858 887 8.52 42,442 888 8.30
Consumer finance 22,798 486 8.53 21,340 440 8.18
Bankcard 8,404 234 11.22 8,578 245 11.32
Foreign consumer 2,227 50 9.00 2,430 54 8.77
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Total consumer 178,287 3,600 8.10 171,455 3,422 7.94
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Total loans and leases 376,584 7,435 7.93 364,210 7,094 7.74
-------------------------------------------------------------
Other earning assets 8,679 174 8.11 10,247 193 7.51
-------------------------------------------------------------
Total earning assets (3) 563,170 10,157 7.24 543,564 9,688 7.09
-------------------------------------------------------------
Cash and cash equivalents 25,830 25,467
Other assets, less allowance for credit losses 62,019 61,712
-------------------------------------------------------------
Total assets $651,019 $630,743
-------------------------------------------------------------
Interest-bearing liabilities:
Domestic interest-bearing deposits:
Savings $24,237 78 1.29 $25,082 80 1.27
NOW and money market deposit accounts 98,424 679 2.78 97,481 639 2.60
Consumer CDs and IRAs 76,074 983 5.20 74,653 932 4.95
Negotiated CDs, public funds and other time deposits 6,966 103 5.93 6,825 98 5.73
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Total domestic interest-bearing deposits 205,701 1,843 3.60 204,041 1,749 3.40
-------------------------------------------------------------
Foreign interest-bearing deposits (4):
Banks located in foreign countries 14,180 188 5.33 14,305 178 4.93
Governments and official institutions 8,745 124 5.72 7,121 99 5.53
Time, savings and other 26,382 340 5.17 24,993 298 4.72
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Total foreign interest-bearing deposits 49,307 652 5.31 46,419 575 4.91
-------------------------------------------------------------
Total interest-bearing deposits 255,008 2,495 3.93 250,460 2,324 3.68
-------------------------------------------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 131,517 1,802 5.51 120,858 1,638 5.38
Trading account liabilities 23,013 181 3.16 19,223 190 3.92
Long-term debt (5) 64,256 1,084 6.75 59,972 995 6.63
-------------------------------------------------------------
Total interest-bearing liabilities (6) 473,794 5,562 4.72 450,513 5,147 4.54
-------------------------------------------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 90,366 91,453
Other liabilities 40,829 41,985
Shareholders' equity 46,030 46,792
-------------------------------------------------------------
Total liabilities and shareholders' equity $651,019 $630,743
-------------------------------------------------------------
Net interest spread 2.52 2.55
Impact of noninterest-bearing sources .75 .77
-------------------------------------------------------------
Net interest income/yield on earning assets $4,595 3.27 % $4,541 3.32 %
-------------------------------------------------------------
<PAGE>
(1) The average balance and yield on available-for-sale securities are based on the average of historical amortized cost
balances.
(2) Nonperforming loans are included in the average loan balances. Income on such nonperforming loans is recognized on a cash
basis.
(3) Interest income includes taxable-equivalent basis adjustments of $71 in the first quarter of 2000 and $66, $53, $51 and
$45 in the fourth, third, second and first quarters of 1999, respectively. Interest income also includes the impact of
risk management interest rate contracts, which increased interest income on the underlying assets $7 in the first quarter
of 2000 and $57, $103, $83 and $63 in the fourth, third, second and first quarters of 1999, respectively.
(4) Primarily consists of time deposits in denominations of $100,000 or more.
(5) Long-term debt includes trust preferred securities.
(6) Interest expense includes the impact of risk management interest rate contracts, which (increased) decreased interest
expense on the underlying liabilities $(8) in the first quarter of 2000 and $(2), $6, $52 and $60 in the fourth, third,
second and first quarters of 1999, respectively.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Third Quarter 1999 Second Quarter 1999 First Quarter 1999
- --------------------------------------------------------------------------------------------
Interest Interest Interest
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
- ------------ --------- ------- ----------- -------- ------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 5,018 $ 69 5.50 % $ 5,159 $ 65 5.03 % $ 6,408 $ 88 5.58 %
33,074 440 5.30 29,521 387 5.25 26,561 381 5.80
37,453 483 5.14 39,837 528 5.31 41,129 547 5.36
78,779 1,208 6.12 76,373 1,139 5.97 73,925 1,161 6.31
1,482 26 7.02 1,482 28 7.61 1,905 33 6.84
- --------------------------------------------------------------------------------------------
80,261 1,234 6.13 77,855 1,167 6.00 75,830 1,194 6.33
- --------------------------------------------------------------------------------------------
136,149 2,488 7.25 138,257 2,473 7.17 138,272 2,444 7.16
28,348 494 6.93 30,209 456 6.05 31,568 494 6.35
25,056 517 8.19 25,938 533 8.25 26,827 559 8.45
295 7 8.80 289 6 8.48 286 6 8.79
- --------------------------------------------------------------------------------------------
189,848 3,506 7.33 194,693 3,468 7.14 196,953 3,503 7.21
- --------------------------------------------------------------------------------------------
80,015 1,431 7.14 80,151 1,430 7.14 75,789 1,356 7.18
16,316 321 7.79 15,857 304 7.68 15,537 298 7.79
42,740 875 8.13 42,240 859 8.15 41,652 847 8.24
19,923 433 8.62 17,794 424 9.56 15,880 373 9.53
8,923 256 11.38 10,365 306 11.83 11,287 327 11.76
3,635 86 9.36 3,653 87 9.55 3,648 89 9.90
- -------------------------------------------------------------------------------------------
171,552 3,402 7.89 170,060 3,410 8.03 163,793 3,290 8.11
- -------------------------------------------------------------------------------------------
361,400 6,908 7.59 364,753 6,878 7.56 360,746 6,793 7.62
- -------------------------------------------------------------------------------------------
11,358 213 7.40 12,924 232 7.23 13,008 243 7.53
- --------------------------------------------------------------------------------------------
528,564 9,347 7.03 530,049 9,257 7.00 523,682 9,246 7.13
- --------------------------------------------------------------------------------------------
25,905 25,868 25,826
56,979 59,447 60,116
- --------------------------------------------------------------------------------------------
$611,448 $615,364 $609,624
- --------------------------------------------------------------------------------------------
$26,037 82 1.25 $21,799 67 1.24 $21,637 71 1.33
96,402 579 2.38 100,897 581 2.31 99,864 575 2.33
73,429 898 4.85 73,601 847 4.61 74,362 857 4.68
6,609 94 5.66 6,238 80 5.14 6,914 89 5.20
- --------------------------------------------------------------------------------------------
202,477 1,653 3.24 202,535 1,575 3.12 202,777 1,592 3.18
- --------------------------------------------------------------------------------------------
13,668 160 4.65 16,947 196 4.62 20,379 268 5.34
7,185 90 4.99 8,089 98 4.81 9,172 113 5.02
25,500 295 4.57 26,354 299 4.56 26,980 339 5.10
- --------------------------------------------------------------------------------------------
46,353 545 4.66 51,390 593 4.62 56,531 720 5.17
- --------------------------------------------------------------------------------------------
248,830 2,198 3.50 253,925 2,168 3.42 259,308 2,312 3.62
- --------------------------------------------------------------------------------------------
114,934 1,437 4.96 116,339 1,396 4.82 112,384 1,355 4.88
15,677 189 4.78 14,178 150 4.25 12,679 129 4.13
59,283 920 6.21 58,302 880 6.03 52,642 805 6.12
- --------------------------------------------------------------------------------------------
438,724 4,744 4.30 442,744 4,594 4.16 437,013 4,601 4.26
- --------------------------------------------------------------------------------------------
88,168 88,324 86,623
38,117 37,405 39,709
46,439 46,891 46,279
- --------------------------------------------------------------------------------------------
$611,448 $615,364 $609,624
- --------------------------------------------------------------------------------------------
2.73 2.84 2.87
.73 .69 .71
- --------------------------------------------------------------------------------------------
$4,603 3.46 % $4,663 3.53 % $4,645 3.58 %
- --------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Bank of America Corporation
Credit Quality - Nonperforming Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
March 31, December 31, September 30, June 30, March 31,
2000 1999 1999 1999 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nonperforming loans:
Commercial - domestic $1,301 $1,163 $1,026 $1,085 $1,085
Commercial - foreign 500 486 477 492 434
Commercial real estate - domestic 208 191 174 203 272
Commercial real estate - foreign 3 3 3 3 3
Residential mortgage 483 529 542 565 634
Home equity lines 45 46 44 44 41
Direct/Indirect consumer 18 19 16 17 20
Consumer finance 737 598 519 382 332
Foreign consumer 7 7 9 21 17
----------------------------------------------------------------------------
Total nonperforming loans 3,302 3,042 2,810 2,812 2,838
Foreclosed properties 179 163 228 258 282
----------------------------------------------------------------------------
Total nonperforming assets $3,481 $3,205 $3,038 $3,070 $3,120
----------------------------------------------------------------------------
Loans past due 90 days or more and not classified as
nonperforming $ 461 $ 521 $ 466 $ 631 $ 571
Nonperforming assets as a percentage of:
Total assets .53 % .51 % .49 % .50 % .51 %
Loans, leases and foreclosed properties .91 .86 .84 .84 .86
- ---------------------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets by Business Segment:
Consumer and Commercial Banking $2,047 $1,868 $1,908 $1,964 $1,953
Asset Management 18 33 42 32 51
Global Corporate and Investment Banking 1,415 1,299 1,086 1,073 1,115
Other 1 5 2 1 1
----------------------------------------------------------------------------
Total nonperforming assets $3,481 $3,205 $3,038 $3,070 $3,120
----------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Credit Quality - Loan Losses
- ----------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
2000 1999 1999 1999 1999
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Gross charge-offs:
Commercial - domestic $ 202 $ 223 $ 213 $ 178 $ 206
Commercial - foreign 12 29 14 88 30
Commercial real estate - domestic 8 6 6 5 2
Commercial real estate - foreign - - - 1 -
Residential mortgage 7 9 11 8 7
Home equity lines 5 7 4 7 6
Bankcard 94 112 120 167 172
Direct/Indirect consumer 146 153 125 127 140
Consumer finance 93 104 101 84 98
Other consumer domestic 2 - (1) - -
Foreign consumer 1 1 7 7 5
----------------------------------------------------------------------
Total $ 570 $ 644 $ 600 $ 672 $ 666
----------------------------------------------------------------------
Net charge-offs:
Commercial - domestic $ 172 $ 191 $ 192 $ 147 $ 181
Commercial - foreign 5 22 9 84 29
Commercial real estate - domestic 6 1 1 (6) (2)
Commercial real estate - foreign (2) - - 1 -
Residential mortgage 4 6 10 7 5
Home equity lines 3 4 1 3 4
Bankcard 81 94 93 153 155
Direct/Indirect consumer 91 110 82 83 95
Consumer finance 57 72 67 42 48
Other consumer domestic 2 - (1) - -
Foreign consumer 1 1 6 6 4
----------------------------------------------------------------------
Total $ 420 $ 501 $ 460 $ 520 $ 519
----------------------------------------------------------------------
Loss ratios:
Commercial - domestic .47 % .54 % .56 % .43 % .53 %
Commercial - foreign .08 .32 .13 1.12 .37
Commercial real estate - domestic .10 .02 .03 n/m n/m
Commercial real estate - foreign n/m .44 .40 .10 -
Residential mortgage .02 .03 .05 .04 .03
Home equity lines .07 .10 .01 .09 .10
Bankcard** 3.86 4.34 4.11 5.94 5.63
Direct/Indirect consumer .88 1.02 .77 .78 .93
Consumer finance 1.01 1.33 1.35 .94 1.22
Other consumer domestic - - - - -
Foreign consumer .12 .25 .67 .65 .43
Total .45 .55 .51 .57 .58
Loss Ratios by Business Segment:
Consumer and Commercial Banking .52 % .78 % .56 % .60 % .62 %
Asset Management n/m .22 .70 .32 .15
Global Corporate and Investment Banking .36 .40 .35 .56 .56
Other n/m n/m .87 1.31 n/m
Allowance for credit losses $ (6,827) $ (6,828) $ (7,076) $ (7,096) $ (7,123)
Allowance for credit losses as a percentage
of loans and leases 1.79 % 1.84 % 1.96 % 1.95 % 1.96 %
- ----------------------------------------------------------------------------------------------------------------------
* Managed Bankcard receivable net charge-offs $ 257 $ 257 $ 233 $ 294 $ 294
** Managed Bankcard portfolio loss ratios 5.43 % 5.29 % 4.83 % 6.13 % 6.01 %
Average managed Bankcard receivables $19,051 $19,258 $19,162 $19,204 $19,814
n/m = not meaningful
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Capital
- ----------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2000 1999 1999 1999 1999
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Beginning total shareholders' equity $ 44,432 $ 45,889 $ 45,631 $ 46,831 $ 45,938
Net income 2,240 1,902 2,151 1,915 1,914
Dividends (833) (852) (776) (787) (784)
Common stock issued 25 154 329 330 350
Common stock repurchased (911) (1,954) (1,182) (1,722) -
Change in FAS 115 adjustment-net
unrealized gains (losses) 166 (726) (337) (1,007) (703)
Change in preferred equity - (1) (2) 10 (2)
Foreign currency translation
adjustment and other 180 20 75 61 118
- ----------------------------------------------------------------------------------------------------------------------------------
Ending total shareholders' equity $ 45,299 $ 44,432 $ 45,889 $ 45,631 $ 46,831
- ----------------------------------------------------------------------------------------------------------------------------------
Preferred equity (77) (77) (78) (80) (70)
- ----------------------------------------------------------------------------------------------------------------------------------
Ending common equity $ 45,222 $ 44,355 $ 45,811 $ 45,551 $ 46,761
- ----------------------------------------------------------------------------------------------------------------------------------
FAS 115 adjustment - end of period $(2,304) $(2,470) $(1,744) $(1,407) $ (400)
Total equity as a percentage of total assets 6.90 % 7.02 % 7.39 % 7.43 % 7.62 %
Common equity as a percentage of total assets 6.89 7.01 7.38 7.42 7.61
Risk-based capital ratios:
Tier 1 capital $39,355 $38,651 $39,380 $38,145 $38,522
Tier 1 capital ratio 7.42 % 7.35 % 7.71 % 7.38 % 7.40 %
Total capital $58,376 $57,192 $58,167 $57,365 $58,132
Total capital ratio 11.00 % 10.88 % 11.39 % 11.09 % 11.17 %
Leverage ratio 6.17 6.26 6.59 6.34 6.47
Risk-weighted assets, net $530,514 $525,625 $510,866 $517,130 $520,396
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Business Segment Results
-------------------------------------------------------------------
Consumer and Commercial Banking
-------------------------------------------------------------------
Quarterly Annual
-------------------------------------------------------------------
Key Measures (in Millions) 1Q99 2Q99 3Q99 4Q99 1Q00 1999
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenue $ 5,029 $ 5,302 $ 5,437 $ 5,364 $ 5,018 $ 21,132
Net Income 1,070 1,190 1,311 1,208 1,060 4,779
Cash Basis Earnings (1) 1,243 1,367 1,484 1,378 1,228 5,472
Average Equity to Average Assets 8.14% 8.24% 8.28% 8.35% 8.01% 8.29%
Return on Average Equity 18.6 19.8 21.8 19.7 17.8 20.0
Return on Tangible Equity (1) 27.5 28.8 31.3 28.4 25.9 29.0
Efficiency Ratio 58.8 56.5 55.3 57.3 57.7 56.9
Cash Basis Efficiency Ratio (1) 55.4 53.2 52.1 54.1 54.4 53.7
Selected Average Balance
Sheet Components (in Billions)
Total Loans and Leases $ 230 $ 237 $ 238 $ 240 $ 248 $ 236
Total Deposits 251 252 251 253 253 252
Total Earning Assets 262 264 261 263 271 261
--------------------------------------------------------------------
Asset Management
--------------------------------------------------------------------
Quarterly Annual
--------------------------------------------------------------------
Key Measures (in Millions) 1Q99 2Q99 3Q99 4Q99 1Q00 1999
- --------------------------------------------------------------------------------------------------------------
Total Revenue $ 564 $ 536 $ 501 $ 539 $ 565 $ 2,140
Net Income 151 135 91 132 154 509
Cash Basis Earnings (1) 158 141 96 139 160 534
Average Equity to Average Assets 8.78% 8.33% 8.37% 8.19% 7.83% 8.41%
Return on Average Equity 36.1 32.2 21.1 30.3 35.6 29.9
Return on Tangible Equity (1) 42.3 38.0 25.3 35.4 41.2 35.2
Efficiency Ratio 53.6 56.2 63.7 57.5 53.8 57.6
Cash Basis Efficiency Ratio (1) 52.5 55.0 62.5 56.4 52.7 56.4
Selected Average Balance
Sheet Components (in Billions)
Total Loans and Leases $ 18 $ 19 $ 19 $ 20 $ 21 $ 19
Total Deposits 12 12 11 11 11 11
Total Earning Assets 19 19 20 20 22 19
--------------------------------------------------------------------
Global Corporate and Investment Banking
--------------------------------------------------------------------
Quarterly Annual
--------------------------------------------------------------------
Key Measures (in Millions) 1Q99 2Q99 3Q99 4Q99 1Q00 1999
- --------------------------------------------------------------------------------------------------------------
Total Revenue $ 2,174 $ 2,246 $ 2,301 $ 2,143 $ 2,900 $ 8,864
Net Income 546 650 689 713 960 2,598
Cash Basis Earnings (1) 589 692 731 754 1,002 2,766
Average Equity to Average Assets 6.47% 6.49% 6.86% 6.43% 6.25% 6.56%
Return on Average Equity 15.4 18.3 18.8 19.3 26.0 18.0
Return on Tangible Equity (1) 18.5 21.6 22.1 22.6 30.0 21.2
Efficiency Ratio 54.9 51.4 52.5 54.2 47.1 53.2
Cash Basis Efficiency Ratio (1) 52.9 49.6 50.7 52.2 45.7 51.3
Selected Average Balance
Sheet Components (in Billions)
Total Loans and Leases $ 114 $ 109 $ 105 $ 105 $ 108 $ 108
Total Deposits 66 66 64 65 66 65
Total Assets 185 182 177 187 196 183
(1) Cash basis calculations exclude goodwill and other intangible assets and their related amortization expense.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Business Sub-Segment Results
- ---------------------------------------------------------------------------------------------------------------------
Consumer and Commercial Banking
---------------------------------------------------------------------------
Quarterly Annual
---------------------------------------------------------------------------
Key Measures (in Millions) 1Q99 2Q99 3Q99 4Q99 1Q00 1999
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Banking Regions
Total Revenue $ 2,854 $ 2,976 $ 3,001 $ 3,003 $ 2,904 $ 11,834
Cash Basis Earnings (1) 659 743 769 711 683 2,882
Cash Basis Efficiency Ratio (1) 63.5% 60.3% 60.5% 62.2% 61.3% 61.6%
Consumer Products
Total Revenue $ 1,452 $ 1,551 $ 1,666 $ 1,551 $ 1,328 $ 6,220
Cash Basis Earnings (1) 372 388 483 392 325 1,635
Cash Basis Efficiency Ratio (1) 44.3% 43.5% 39.2% 45.2% 44.8% 42.9%
Commercial
Total Revenue $ 723 $ 775 $ 770 $ 810 $ 786 $ 3,078
Cash Basis Earnings (1) 212 236 232 275 220 955
Cash Basis Efficiency Ratio (1) 45.8% 45.2% 47.0% 41.3% 45.0% 44.8%
Global Corporate and Investment Banking
----------------------------------------------------------------------------
Quarterly Annual
----------------------------------------------------------------------------
Key Measures (in Millions) 1Q99 2Q99 3Q99 4Q99 1Q00 1999
- ----------------------------------------------------------------------------------------------------------------------
Global Credit Products
Total Revenue $ 737 $ 800 $ 730 $ 792 $ 726 $ 3,059
Cash Basis Earnings (1) 279 364 347 432 291 1,422
Cash Basis Efficiency Ratio (1) 25.3% 22.7% 24.6% 16.2% 23.2% 22.1%
Global Capital Raising
Total Revenue $ 474 $ 562 $ 511 $ 520 $ 803 $ 2,067
Cash Basis Earnings (1) 29 97 35 119 189 280
Cash Basis Efficiency Ratio (1) 90.9% 73.6% 91.8% 91.9% 71.8% 86.7%
Global Markets
Total Revenue $ 522 $ 459 $ 395 $ 316 $ 594 $ 1,692
Cash Basis Earnings (1) 182 149 99 74 191 504
Cash Basis Efficiency Ratio (1) 47.8% 51.4% 65.5% 64.0% 50.2% 55.9%
Global Treasury Services
Total Revenue $ 328 $ 331 $ 365 $ 349 $ 334 $ 1,373
Cash Basis Earnings (1) 44 35 95 45 77 219
Cash Basis Efficiency Ratio (1) 80.0% 79.4% 60.6% 81.8% 76.6% 75.2%
Principal Investing
Total Revenue $ 113 $ 94 $ 300 $ 166 $ 443 $ 673
Cash Basis Earnings (1) 55 47 155 84 254 341
Cash Basis Efficiency Ratio (1) 19.5% 20.6% 12.2% 15.8% 5.6% 15.5%
(1) Cash basis calculations exclude goodwill and other intangible assets and their related amortization expense.
</TABLE>
