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):
January 18, 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 Fourth Quarter Earnings. On January 18, 2000, Bank of
America Corporation, the registrant (the "Registrant"), announced financial
results for the fourth quarter of fiscal 1999, reporting earnings of $1.90
billion and diluted earnings per common share of $1.10. A copy of the press
release announcing the results of the Registrant's fiscal quarter ended December
31, 1999 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 January 18, 2000 with
respect to the Registrant's financial
results for the fiscal quarter ended
December 31, 1999.
<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: January 20, 2000
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION OF EXHIBIT
99.1 Press Release dated January 18, 2000 with
respect to the Registrant's financial
results for the fiscal quarter ended
December 31, 1999.
<PAGE>
FOR IMMEDIATE RELEASE
January 18, 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 OPERATING EARNINGS PER SHARE
RISE 35% TO $1.23 IN THE FOURTH QUARTER;
1999 OPERATING EARNINGS PER SHARE UP 29% TO $4.68
CHARLOTTE, NC, January 18, 2000 - Bank of America Corporation today reported
that operating earnings per share increased 35 percent in the fourth quarter of
1999 to $1.23 (diluted) from $.91 a year earlier. Operating net income rose 32
percent to $2.12 billion from $1.60 billion.
As previously disclosed, the company recorded a $213 million after-tax charge to
cover costs associated with the merger of NationsBank and BankAmerica in the
latest quarter compared to a $441 million after-tax charge a year earlier. As a
result, net income for the fourth quarter of 1999 was $1.90 billion, or $1.10
per share, compared to $1.16 billion, or $.66 per share, a year earlier.
Bank of America earned $2.15 billion, or $1.23 per share in the third quarter of
1999.
For all of 1999, Bank of America's operating earnings rose 27 percent to $8.24
billion from $6.49 billion while operating earnings per share increased
29 percent to $4.68 from $3.64. Including merger-related charges, net income in
1999 was up 53 percent to $7.88 billion, or $4.48 per share, compared to $5.17
billion, or $2.90 per share, a year earlier.
more
<PAGE>
"1999 was a significant step in the right direction," said Hugh L. McColl, Jr.,
Bank of America chairman and chief executive officer. "We delivered
above-average earnings growth and either met or made progress toward our other
financial targets. Our merger transition effort could not have gone more
smoothly. We ended the year having consolidated all of our business lines,
expanded our investment banking platform, and made substantial progress in our
relationship-based strategies. Bank of America is now positioned to work to
achieve our next goal, which is to become the most widely recognized and
respected financial services brand."
Fourth Quarter Earnings (compared to a year ago)
- ------------------------------------------------
Revenue rose 11 percent, paced by significant improvements in every fee-based
business, especially investment banking, trading, mortgage banking and card
income. Meanwhile, expenses and provision expense were lower. The completion of
annual tax planning strategies resulted in a lower effective tax rate. Operating
earnings represented an 18 percent return on common equity.
Net Interest Income
- -------------------
Taxable-equivalent net interest income decreased 2 percent from a year earlier
to $4.54 billion. Average managed loans and leases grew an annualized 8 percent,
led by increases of more than 30 percent in residential real estate lending.
Contributing to the reduction in net interest income were the cost of funding
share repurchases and the decisions during the year to sell or securitize loans.
Securitizations have the effect of transferring interest revenue to noninterest
income. The net yield on earning assets declined 26 basis points to 3.32
percent, reflecting continued margin compression and higher levels of
lower-yielding assets.
Noninterest Income
- -------------------
Noninterest income grew 35 percent to $3.60 billion. Investment banking and
trading income were up sharply, in part due to the impact of market turbulence
in the previous year as well as the build out of investment banking
capabilities. Mortgage servicing income, card services fees and service charges
on deposit accounts also had healthy gains. Other income was also up.
Noninterest income has been increasing as a percentage of the company's revenues
and reached 44 percent in the fourth quarter.
Securities gains were $14 million, compared to $404 million a year earlier.
more
<PAGE>
Efficiency
- ----------
Noninterest expense decreased 3 percent to $4.55 billion, reflecting cost
reductions resulting from recent mergers, somewhat offset by continued spending
on technology-related projects associated with the merger of NationsBank and
BankAmerica and higher incentive payments associated with the build out of the
investment banking platform. The efficiency ratio was 56 percent, an improvement
of 825 basis points.
Credit Quality
- --------------
Nonperforming assets were $3.20 billion, or .86 percent of loans, leases and
foreclosed properties on December 31, 1999, compared to $2.76 billion, or .77
percent, a year earlier. The allowance for credit losses totaled $6.8 billion on
December 31, 1999, equal to 224 percent of nonperforming loans and 1.84 percent
of loans and leases. It was $7.1 billion, or 1.99 percent of loans and leases, a
year earlier.
The provision for credit losses in the fourth quarter was $350 million compared
to $510 million a year earlier. Net charge-offs declined to $501 million, equal
to an annualized .55 percent of average loans and leases, from $544 million, or
.60 percent, a year earlier.
The lower provision expense reflects the significant reduction in the risk and
size of the company's emerging markets portfolio since September 1998. In
addition, foreign losses in 1999 were lower than expected, as several Latin
American and Asian economies have stabilized or progressed and their prospects
improved. The company's credit outlook for 2000 remains favorable, driven by the
expectation of continued healthy economic conditions and growth in loans with
historically lower credit risk.
Full-Year Earnings
- ------------------
Results for the year also reflected favorable operating leverage created by a
6 percent increase in revenue combined with a 4 percent reduction in expenses
and a lower tax rate. The return on equity rose more than 300 basis points to 18
percent.
more
<PAGE>
Taxable-equivalent net interest income was virtually unchanged at $18.5 billion,
as a 9 percent increase in average managed loans and core deposit growth was
offset by securitizations, loan sales and spread compression. The net yield on
earning assets declined 22 basis points to 3.47 percent.
Noninterest income rose 15 percent, paced by strong increases in trading,
deposit services, investment banking, mortgage banking and card income.
Noninterest expense declined 4 percent to $18.0 billion, reflecting cost savings
from recent mergers. The efficiency ratio for the year was 55 percent compared
to 61 percent last year.
The provision for credit losses was $1.82 billion, down from $2.92 billion a
year earlier. Net charge-offs declined to $2.00 billion, equal to .55 percent of
average net loans and leases, from $2.47 billion, or .71 percent, a year
earlier.
Capital Strength
- ----------------
Total shareholders' equity was $44.4 billion at December 31, 1999. This
represented 7.02 percent of period-end assets, compared to 7.44 percent on
December 31, 1998.
In June, the company initiated a share buyback program of up to 130 million
shares. Through December, 78 million shares had been purchased, representing an
investment in Bank of America stock of almost $5 billion.
Business Segment Results
- ------------------------
Consumer Banking, which serves individuals and small businesses, earned
$3.9 billion for all of 1999 while Commercial Banking, which serves companies
with from $10 million to $500 million in revenue, earned $878 million. Together,
they represented 58 percent of the company's operating income. Global Corporate
and Investment Banking, which serves large corporate customers, earned $2.3
billion, representing 27 percent of the company's earnings. Principal Investing
and Asset Management, which encompasses the private bank, trust, investment
management, mutual funds, retail brokerage and principal investing, earned $841
million, representing 10 percent.
more
<PAGE>
Bank of America, with $633 billion in assets, is the largest bank in the United
States. The company serves more than 30 million households and 2 million
businesses across the country, offering customers the largest and most
convenient delivery network from offices and ATMs to telephone and internet
access. It also provides comprehensive international corporate financial
services for clients doing business around the world. The company creates
financial relationships featuring a wide array of financial services, from
traditional banking products to investments and capital raising within the
securities markets. Bank of America stock (ticker: BAC) is listed on the New
York, Pacific and London stock exchanges and certain shares are listed on the
Tokyo Stock Exchange. Further investor information can be found at
www.bankofamerica.com/investor.
www.bankofamerica.com
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Three Months Twelve Months
Ended December 31 Ended December 31
------------------------------- -----------------------------
Financial Summary 1999 1998 1999 1998
- ------------------ ------------ -------------- ------------- ---------
<S> <C> <C> <C> <C>
(In millions, except per-share data)
Operating net income $ 2,115 $ 1,603 $ 8,240 $ 6,490
Operating earnings per common share 1.24 .92 4.77 3.73
Diluted operating earnings per common share 1.23 .91 4.68 3.64
Cash basis earnings (1) 2,334 1,825 9,128 7,391
Cash basis earnings per common share 1.37 1.05 5.28 4.25
Cash basis diluted earnings per common share 1.35 1.04 5.19 4.15
Dividends paid per common share .50 .45 1.85 1.59
Price per share of common stock at period end 50.19 60.13 50.19 60.13
Average common shares 1,701.092 1,731.314 1,726.006 1,732.057
Average diluted common shares 1,725.187 1,763.055 1,760.058 1,775.760
Summary Income Statement (Operating Basis)
- -------------------------------------------
(Taxable-equivalent basis in millions)
Net interest income $ 4,541 $ 4,650 $ 18,452 $ 18,461
Provision for credit losses (350) (510) (1,820) (2,920)
Gains on sales of securities 14 404 240 1,017
Noninterest income 3,596 2,655 14,069 12,189
Other noninterest expense (4,550) (4,687) (17,986) (18,741)
------------ -------------- ------------- ----------
Income before income taxes 3,251 2,512 12,955 10,006
Income taxes - including FTE adjustment 1,136 909 4,715 3,516
------------ -------------- ------------- ----------
Operating net income $ 2,115 $ 1,603 $ 8,240 $ 6,490
============ ============== ============= ==========
Summary Balance Sheet
- ----------------------
(Average balances in billions)
Loans and leases $ 364.210 $ 357.636 $362.783 $ 347.840
Managed loans and leases (2) 393.708 365.297 388.918 356.802
Securities 86.442 72.302 80.127 66.684
Earning assets 543.564 517.066 531.511 499.739
Total assets 630.743 606.541 616.838 584.487
Deposits 341.913 351.766 341.748 345.485
Shareholders' equity 46.792 45.051 46.601 44.829
Common shareholders' equity 46.714 44.989 46.527 44.467
Performance Indices (Operating Basis)
- --------------------------------------
Return on average common shareholders' equity 17.95 % 14.12 % 17.70 % 14.54 %
Return on average tangible common shareholders' equity 28.38 23.97 28.46 25.24
Return on average assets 1.33 1.05 1.34 1.11
Return on average tangible assets 1.50 1.22 1.52 1.30
Net interest yield 3.32 3.58 3.47 3.69
Efficiency ratio 55.91 64.16 55.30 61.15
Cash basis efficiency ratio 53.22 61.12 52.57 58.20
Net charge-offs (in millions) $ 501 $ 544 $ 2,000 $ 2,467
% of average loans and leases .55 % .60 % .55 % .71 %
Managed bankcard net charge-offs as a % of average
managed bankcard receivables 5.29 5.83 5.57 6.27
Reported Results (Including Merger-Related Charges)
- ----------------------------------------------------
(In millions, except per-share data)
Net income $ 1,902 $ 1,162 $ 7,882 $ 5,165
Earnings per common share 1.12 .67 4.56 2.97
Diluted earnings per common share 1.10 .66 4.48 2.90
Return on average common shareholders' equity 16.14 10.23 16.93 11.56
(1) Cash basis earnings equal operating net income excluding amortization of intangibles.
(2) Prior periods are restated for comparison (e.g. acquisitions, divestitures and securitizations).
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation - Continued
December 31
-----------------------------------
1999 1998
-----------------------------------
Balance Sheet Highlights
- --------------------------
(In billions, except per-share data)
<S> <C> <C>
Loans and leases $ 370.662 $ 357.328
Securities 83.069 80.587
Earning assets 544.940 525.149
Total assets 632.574 617.679
Deposits 347.273 357.260
Shareholders' equity 44.432 45.938
Common shareholders' equity 44.355 45.866
Per share 26.44 26.60
Total equity to assets ratio (period-end) 7.02 % 7.44 %
Risk-based capital
Tier 1 capital ratio 7.35 7.06
Total capital ratio 10.88 10.94
Leverage ratio 6.26 6.22
Common shares issued and outstanding (in millions) 1,677.273 1,724.484
Allowance for credit losses $ 6.828 $ 7.122
Allowance for credit losses as a % of loans and leases 1.84 % 1.99 %
Allowance for credit losses as a % of nonperforming loans 224.48 287.01
Nonperforming loans $ 3.042 $ 2.482
Nonperforming assets 3.205 2.764
Nonperforming assets as a % of:
Total assets .51 % .45 %
Loans, leases and foreclosed properties .86 .77
Other Data
- -----------
Full-time equivalent headcount 155,906 170,975
Banking centers 4,524 4,708
ATMs 14,019 14,327
<CAPTION>
BUSINESS SEGMENT RESULTS - Three Months Ended December 31, 1999
(In millions)
Operating Average Loans Return on Average
Total Revenue Net Income and Leases Equity
------------- ----------------- ----------------- -------------------
Consumer Banking $ 4,551 $ 951 $ 183,244 19%
Commercial Banking 813 256 56,912 24
Global Corporate and Investment Banking 1,975 630 103,999 19
Principal Investing and Asset Management 704 214 20,165 26
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
Bank of America Corporation
Consolidated Financial Highlights
(Excludes Merger-Related Charges)
- ------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions Except Per-Share Information, Shares in Millions)
Fourth Third Second First Fourth
Year-to-date Quarter Quarter Quarter Quarter Quarter
1999 1999 1999 1999 1999 1998
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net income $ 8,240 $ 2,115 $ 2,151 $ 2,060 $ 1,914 $ 1,603
Cash basis earnings 9,128 2,334 2,373 2,285 2,136 1,825
Earnings per common share 4.77 1.24 1.25 1.18 1.10 .92
Diluted earnings per common share 4.68 1.23 1.23 1.15 1.08 .91
Cash basis earnings per common share 5.28 1.37 1.38 1.31 1.23 1.05
Cash basis diluted earnings per common share 5.19 1.35 1.35 1.28 1.20 1.04
Dividends per common share 1.85 .50 .45 .45 .45 .45
Average common shares issued and outstanding 1,726.006 1,701.092 1,722.307 1,743.503 1,737.562 1,731.314
Average diluted common shares issued and oustanding 1,760.058 1,725.187 1,755.146 1,786.844 1,779.708 1,763.055
Period-end common shares issued and outstanding 1,677.273 1,677.273 1,710.039 1,722.931 1,740.872 1,724.484
Period-end managed loans and leases* $ 400,164 $ 400,164 $ 384,197 $ 379,502 $ 374,103 $ 369,076
Average managed loans and leases* 388,918 393,708 381,560 377,482 373,368 365,297
*Prior periods restated for comparison (e.g. acquisitions, divestitures and securitizations).
Performance ratios:
Return on average assets 1.34 % 1.33 % 1.40 % 1.34 % 1.27 % 1.05 %
Return on average tangible assets 1.52 1.50 1.58 1.53 1.46 1.22
Return on average common shareholders' equity 17.70 17.95 18.40 17.64 16.78 14.12
Return on average tangible common shareholders' equity 28.46 28.38 29.48 28.49 27.44 23.97
Efficiency ratio 55.30 55.91 54.34 54.44 56.59 64.16
Cash basis efficiency ratio 52.57 53.22 51.67 51.70 53.76 61.12
Net interest yield 3.47 3.32 3.46 3.53 3.58 3.58
Book value per common share $ 26.44 $ 26.44 $ 26.79 $ 26.44 $ 26.86 $ 26.60
Market price per share of common stock:
High for the period 76 3/8 67 1/2 76 3/8 76 1/8 74 1/2 66 5/8
Low for the period 47 5/8 47 5/8 53 1/4 61 1/2 59 1/2 44
Closing price 50 3/16 50 3/16 55 11/16 73 5/16 70 5/8 60 1/8
Other data:
Number of banking centers 4,524 4,524 4,535 4,531 4,676 4,708
Number of ATMs 14,019 14,019 14,042 14,051 14,229 14,327
Full-time equivalent employees 155,906 155,906 158,886 161,919 166,422 170,975
Business Segment Results - Fourth Quarter 1999
Average loans Return on
Total revenue Net income and leases average equity
------------------ -------------------- -------------------- ---------------------
Consumer Banking $ 4,551 56% $ 951 45% $ 183,244 50% 19%
Commercial Banking 813 10 256 12 56,912 16 24
Global Corporate and Investment Banking 1,975 24 630 30 103,999 29 19
Principal Investing and Asset Management 704 9 214 10 20,165 6 26
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Consolidated Statement of Income
(Operating Results excluding Merger-Related Charges)
- ------------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions, Except Per-Share Information)
Fourth Third Second First Fourth
Year-to-date Quarter Quarter Quarter Quarter Quarter
1999 1999 1999 1999 1999 1998
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans and leases $ 27,569 $ 7,063 $ 6,883 $ 6,853 $ 6,770 $ 7,030
Interest and dividends on securities 4,826 1,300 1,208 1,143 1,175 1,191
Federal funds sold and securities
purchased under agreements to resell 1,666 458 440 387 381 486
Trading account assets 2,087 535 482 525 545 612
Other interest income 1,175 266 281 298 330 319
---------------------------------------------------------------
Total interest income 37,323 9,622 9,294 9,206 9,201 9,638
---------------------------------------------------------------
Interest expense
Deposits 9,002 2,324 2,198 2,168 2,312 2,598
Short-term borrowings 5,826 1,638 1,437 1,396 1,355 1,422
Trading account liabilities 658 190 189 150 129 165
Long-term debt 3,600 995 920 880 805 844
---------------------------------------------------------------
Total interest expense 19,086 5,147 4,744 4,594 4,601 5,029
---------------------------------------------------------------
Net interest income 18,237 4,475 4,550 4,612 4,600 4,609
Provision for credit losses 1,820 350 450 510 510 510
---------------------------------------------------------------
Net interest income after provision for credit losses 16,417 4,125 4,100 4,102 4,090 4,099
Gains on sales of securities 240 14 44 52 130 404
Noninterest income
Service charges on deposit accounts 3,645 948 942 900 855 881
Mortgage servicing income 673 210 206 125 132 103
Investment banking income 2,244 599 702 555 388 356
Trading account profits and fees 1,495 287 313 395 500 96
Brokerage income 724 180 168 192 184 162
Nondeposit-related service fees 554 159 136 123 136 150
Asset management and fiduciary service fees 1,023 256 250 274 243 229
Credit card income 1,791 487 496 448 360 398
Other income 1,920 470 515 510 425 280
---------------------------------------------------------------
Total noninterest income 14,069 3,596 3,728 3,522 3,223 2,655
---------------------------------------------------------------
Other noninterest expense
Personnel 9,308 2,378 2,336 2,261 2,333 2,301
Occupancy 1,627 419 417 395 396 413
Equipment 1,346 336 313 339 358 384
Marketing 537 98 145 147 147 135
Professional fees 630 178 160 166 126 233
Amortization of intangibles 888 219 222 225 222 223
Data processing 763 195 164 214 190 205
Telecommunications 549 142 131 140 136 152
Other general operating 1,820 456 498 446 420 493
General administrative and other 518 129 140 124 125 148
---------------------------------------------------------------
Total other noninterest expense 17,986 4,550 4,526 4,457 4,453 4,687
---------------------------------------------------------------
Income before income taxes 12,740 3,185 3,346 3,219 2,990 2,471
Income tax expense 4,500 1,070 1,195 1,159 1,076 868
---------------------------------------------------------------
Net income $ 8,240 $ 2,115 $ 2,151 $ 2,060 $ 1,914 $ 1,603
---------------------------------------------------------------
Net income available to common shareholders $ 8,234 $ 2,114 $ 2,149 $ 2,059 $ 1,912 $ 1,602
---------------------------------------------------------------
Per-share information
Earnings per common share $4.77 $1.24 $1.25 $1.18 $1.10 $ .92
---------------------------------------------------------------
Diluted earnings per common share $4.68 $1.23 $1.23 $1.15 $1.08 $ .91
---------------------------------------------------------------
Dividends per common share $1.85 $ .50 $ .45 $ .45 $ .45 $ .45
---------------------------------------------------------------
Average common shares issued and outstanding (in thousands) 1,726,006 1,701,092 1,722,307 1,743,503 1,737,562 1,731,314
---------------------------------------------------------------
Average diluted common shares issued and outstanding (in thousands) 1,760,058 1,725,187 1,755,146 1,786,844 1,779,708 1,763,055
---------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Consolidated Balance Sheet
- --------------------------------------------------------------------------------------------------------------------
December 31 September 30 December 31
(Dollars in Millions) 1999 1999 1998
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Cash and cash equivalents $26,989 $25,414 $28,277
Time deposits placed and other short-term investments 4,838 4,846 6,750
Federal funds sold and securities purchased under agreements to resell 37,928 40,369 27,146
Trading account assets 38,460 38,651 39,602
Securities:
Available-for-sale 81,647 78,353 78,590
Held-for-investment 1,422 1,483 1,997
- --------------------------------------------------------------------------------------------------------------------
Total securities 83,069 79,836 80,587
- --------------------------------------------------------------------------------------------------------------------
Loans and leases 370,662 360,236 357,328
Allowance for credit losses (6,828) (7,076) (7,122)
- --------------------------------------------------------------------------------------------------------------------
Loans and leases, net of allowance for credit losses 363,834 353,160 350,206
- --------------------------------------------------------------------------------------------------------------------
Premises and equipment, net 6,713 6,728 7,289
Customers' acceptance liability 1,869 2,066 2,671
Derivative-dealer assets 16,055 18,103 16,400
Interest receivable 3,777 3,838 3,734
Mortgage servicing rights 4,093 3,845 2,376
Goodwill 12,262 12,414 12,695
Core deposit and other intangibles 1,730 1,800 2,013
Other assets 30,957 29,582 37,933
- --------------------------------------------------------------------------------------------------------------------
Total assets $632,574 $620,652 $617,679
- --------------------------------------------------------------------------------------------------------------------
Liabilities
Deposits in domestic offices:
Noninterest-bearing $93,476 $87,292 $92,623
Interest-bearing 207,048 202,037 203,644
Deposits in foreign offices:
Noninterest-bearing 1,993 1,981 1,713
Interest-bearing 44,756 45,701 59,280
- --------------------------------------------------------------------------------------------------------------------
Total deposits 347,273 337,011 357,260
- --------------------------------------------------------------------------------------------------------------------
Federal funds purchased and securities sold under agreements to repurchase 74,561 79,739 67,543
Trading account liabilities 20,958 18,239 14,170
Derivative-dealer liabilities 16,200 18,689 16,835
Commercial paper 7,331 7,826 6,749
Other short-term borrowings 40,340 32,893 24,742
Acceptances outstanding 1,869 2,066 2,671
Accrued expenses and other liabilities 19,169 18,993 30,929
Long-term debt 55,486 54,352 45,888
Trust preferred securities 4,955 4,955 4,954
- --------------------------------------------------------------------------------------------------------------------
Total liabilities 588,142 574,763 571,741
- --------------------------------------------------------------------------------------------------------------------
Shareholders' equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and
outstanding 1,797,702; 1,828,702 and 1,952,039 shares 77 78 83
Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and
outstanding - 1,677,273,267; 1,710,039,286 and 1,724,484,305 shares 11,671 13,538 14,837
Retained earnings 35,681 34,631 30,998
Accumulated other comprehensive income (2,658) (1,929) 152
Other (339) (429) (132)
- --------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 44,432 45,889 45,938
- --------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $632,574 $620,652 $617,679
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<CAPTION>
Bank of America Corporation
Quarterly Taxable-Equivalent Data
--------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
Fourth Quarter 1999 Third 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 $ 4,512 $ 73 6.33 % $ 5,018 $ 69 5.50 %
Federal funds sold and securities purchased under
agreements to resell 39,700 458 4.60 33,074 440 5.30
Trading account assets 38,453 544 5.63 37,453 483 5.14
Securities:
Available-for-sale (1) 85,009 1,301 6.10 78,779 1,208 6.12
Held-for-investment 1,433 25 7.25 1,482 26 7.02
-----------------------------------------------------
Total securities 86,442 1,326 6.12 80,261 1,234 6.13
-----------------------------------------------------
Loans and leases (2):
Commercial - domestic 140,674 2,707 7.64 136,149 2,488 7.25
Commercial - foreign 27,430 453 6.56 28,348 494 6.93
Commercial real estate - domestic 24,345 506 8.23 25,056 517 8.19
Commercial real estate - foreign 306 6 8.96 295 7 8.80
-----------------------------------------------------
Total commercial 192,755 3,672 7.56 189,848 3,506 7.33
-----------------------------------------------------
Residential mortgage 79,783 1,450 7.26 80,015 1,431 7.14
Home equity lines 16,882 345 8.12 16,316 321 7.79
Direct/Indirect consumer 42,442 888 8.30 42,740 875 8.13
Consumer finance 21,340 440 8.18 19,923 433 8.62
Bankcard 8,578 245 11.32 8,923 256 11.38
Foreign consumer 2,430 54 8.77 3,635 86 9.36
-----------------------------------------------------
Total consumer 171,455 3,422 7.94 171,552 3,402 7.89
-----------------------------------------------------
Total loans and leases 364,210 7,094 7.74 361,400 6,908 7.59
-----------------------------------------------------
Other earning assets 10,247 193 7.51 11,358 213 7.40
-----------------------------------------------------
Total earning assets (3) 543,564 9,688 7.09 528,564 9,347 7.03
-----------------------------------------------------
Cash and cash equivalents 25,467 25,905
Other assets, less allowance for credit losses 61,712 56,979
-----------------------------------------------------
Total assets $630,743 $611,448
-----------------------------------------------------
Interest-bearing liabilities:
Domestic interest-bearing deposits:
Savings $25,082 80 1.27 $26,037 82 1.25
NOW and money market deposit accounts 97,481 639 2.60 96,402 579 2.38
Consumer CDs and IRAs 74,653 932 4.95 73,429 898 4.85
Negotiated CDs, public funds and other time deposits 6,825 98 5.73 6,609 94 5.66
-----------------------------------------------------
Total domestic interest-bearing deposits 204,041 1,749 3.40 202,477 1,653 3.24
-----------------------------------------------------
Foreign interest-bearing deposits (4):
Banks located in foreign countries 14,305 178 4.93 13,668 160 4.65
Governments and official institutions 7,121 99 5.53 7,185 90 4.99
Time, savings and other 24,993 298 4.72 25,500 295 4.57
-----------------------------------------------------
Total foreign interest-bearing deposits 46,419 575 4.91 46,353 545 4.66
-----------------------------------------------------
Total interest-bearing deposits 250,460 2,324 3.68 248,830 2,198 3.50
-----------------------------------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 120,858 1,638 5.38 114,934 1,437 4.96
Trading account liabilities 19,223 190 3.92 15,677 189 4.78
Long-term debt (5) 59,972 995 6.63 59,283 920 6.21
-----------------------------------------------------
Total interest-bearing liabilities (6) 450,513 5,147 4.54 438,724 4,744 4.30
-----------------------------------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 91,453 88,168
Other liabilities 41,985 38,117
Shareholders' equity 46,792 46,439
-----------------------------------------------------
Total liabilities and shareholders' equity $630,743 $611,448
-----------------------------------------------------
Net interest spread 2.55 2.73
Impact of noninterest-bearing sources .77 .73
----------------- -----------------------------------
Net interest income/yield on earning assets $4,541 3.32 % $4,603 3.46 %
-----------------------------------------------------
<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 respective average loan balances. Income on such nonperforming loans is
recognized on a cash basis.
(3) Interest income includes taxable-equivalent basis adjustments of $66, $53, $51 and $45 in the fourth, third, second
and first quarters of 1999 and $41 in the fourth quarter of 1998, respectively. Interest income also includes the
impact of risk management interest rate contracts, which increased interest income on the underlying assets $57,
$103, $83 and $63 in the fourth, third, second and first quarters of 1999 and $70 in the fourth quarter of 1998,
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 $(2), $6, $52 and $60 in the fourth, third, second and first quarters of
1999 and $27 in the fourth quarter of 1998, respectively.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
Second Quarter 1999 First Quarter 1999 Fourth Quarter 1998
- ----------------------------------------------------------------------------------
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>
$ 5,159 $ 65 5.03 % $ 6,408 $ 88 5.58 % $ 6,702 $ 111 6.56 %
29,521 387 5.25 26,561 381 5.80 29,564 486 6.53
39,837 528 5.31 41,129 547 5.36 39,391 613 6.19
76,373 1,139 5.97 73,925 1,161 6.31 69,354 1,162 6.68
1,482 28 7.61 1,905 33 6.84 2,948 44 6.09
- ----------------------------------------------------------------------------------
77,855 1,167 6.00 75,830 1,194 6.33 72,302 1,206 6.66
- ----------------------------------------------------------------------------------
138,257 2,473 7.17 138,272 2,444 7.16 136,629 2,542 7.39
30,209 456 6.05 31,568 494 6.35 32,893 569 6.86
25,938 533 8.25 26,827 559 8.45 28,427 601 8.38
289 6 8.48 286 6 8.79 319 8 9.39
- ----------------------------------------------------------------------------------
194,693 3,468 7.14 196,953 3,503 7.21 198,268 3,720 7.45
- ----------------------------------------------------------------------------------
80,151 1,430 7.14 75,789 1,356 7.18 73,033 1,336 7.30
15,857 304 7.68 15,537 298 7.79 15,781 326 8.17
42,240 859 8.15 41,652 847 8.24 40,557 876 8.57
17,794 424 9.56 15,880 373 9.53 14,368 338 9.33
10,365 306 11.83 11,287 327 11.76 12,078 366 12.01
3,653 87 9.55 3,648 89 9.90 3,551 94 10.47
- ----------------------------------------------------------------------------------
170,060 3,410 8.03 163,793 3,290 8.11 159,368 3,336 8.32
- ----------------------------------------------------------------------------------
364,753 6,878 7.56 360,746 6,793 7.62 357,636 7,056 7.84
- ----------------------------------------------------------------------------------
12,924 232 7.23 13,008 243 7.53 11,471 207 7.19
- ----------------------------------------------------------------------------------
530,049 9,257 7.00 523,682 9,246 7.13 517,066 9,679 7.44
- ----------------------------------------------------------------------------------
25,868 25,826 25,834
59,447 60,116 63,641
- ----------------------------------------------------------------------------------
$615,364 $609,624 $606,541
- ----------------------------------------------------------------------------------
$21,799 67 1.24 $21,637 71 1.33 $21,702 91 1.67
100,897 581 2.31 99,864 575 2.33 97,589 622 2.53
73,601 847 4.61 74,362 857 4.68 74,923 956 5.06
6,238 80 5.14 6,914 89 5.20 7,388 96 5.16
- ----------------------------------------------------------------------------------
202,535 1,575 3.12 202,777 1,592 3.18 201,602 1,765 3.47
- ----------------------------------------------------------------------------------
16,947 196 4.62 20,379 268 5.34 24,938 325 5.17
8,089 98 4.81 9,172 113 5.02 10,278 143 5.54
26,354 299 4.56 26,980 339 5.10 26,868 365 5.39
- ----------------------------------------------------------------------------------
51,390 593 4.62 56,531 720 5.17 62,084 833 5.32
- ----------------------------------------------------------------------------------
253,925 2,168 3.42 259,308 2,312 3.62 263,686 2,598 3.91
- ----------------------------------------------------------------------------------
116,339 1,396 4.82 112,384 1,355 4.88 104,416 1,422 5.40
14,178 150 4.25 12,679 129 4.13 14,194 165 4.62
58,302 880 6.03 52,642 805 6.12 51,779 844 6.52
- ----------------------------------------------------------------------------------
442,744 4,594 4.16 437,013 4,601 4.26 434,075 5,029 4.60
- ----------------------------------------------------------------------------------
88,324 86,623 88,080
37,405 39,709 39,335
46,891 46,279 45,051
- ----------------------------------------------------------------------------------
$615,364 $609,624 $606,541
- ----------------------------------------------------------------------------------
2.84 2.87 2.84
.69 .71 .74
- ----------------------------------------------------------------------------------
$4,663 3.53 % $4,645 3.58 % $4,650 3.58 %
- ----------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
12-Month Taxable-Equivalent Data
- ----------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
1999 1998
-----------------------------------------------------------
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 $ 5,268 $ 295 5.59 % $ 7,649 $ 514 6.72 %
Federal funds sold and securities purchased under
agreements to resell 32,252 1,666 5.17 27,288 1,828 6.70
Trading account assets 39,206 2,102 5.36 39,774 2,634 6.62
Securities:
Available-for-sale (1) 78,552 4,809 6.12 62,571 4,286 6.85
Held-for-investment 1,575 112 7.16 4,113 282 6.88
-----------------------------------------------------------
Total securities 80,127 4,921 6.14 66,684 4,568 6.85
-----------------------------------------------------------
Loans and leases (2):
Commercial - domestic 138,339 10,112 7.31 130,177 9,988 7.67
Commercial - foreign 29,374 1,897 6.46 31,015 2,246 7.24
Commercial real estate - domestic 25,533 2,115 8.28 28,418 2,503 8.81
Commercial real estate - foreign 294 25 8.76 330 33 10.05
-----------------------------------------------------------
Total commercial 193,540 14,149 7.31 189,940 14,770 7.78
-----------------------------------------------------------
Residential mortgage 78,948 5,667 7.18 70,842 4,880 6.89
Home equity lines 16,152 1,268 7.85 16,129 1,741 10.79
Direct/Indirect consumer 42,274 3,469 8.21 40,204 3,506 8.72
Consumer finance 18,752 1,670 8.91 14,368 1,529 10.64
Bankcard 9,778 1,134 11.59 12,960 1,638 12.64
Foreign consumer 3,339 316 9.45 3,397 357 10.51
-----------------------------------------------------------
Total consumer 169,243 13,524 7.99 157,900 13,651 8.65
-----------------------------------------------------------
Total loans and leases 362,783 27,673 7.63 347,840 28,421 8.17
-----------------------------------------------------------
Other earning assets 11,875 881 7.41 10,504 786 7.49
-----------------------------------------------------------
Total earning assets (3) 531,511 37,538 7.06 499,739 38,751 7.75
-----------------------------------------------------------
Cash and cash equivalents 25,766 24,907
Other assets, less allowance for credit losses 59,561 59,841
-----------------------------------------------------------
Total assets $616,838 $584,487
-----------------------------------------------------------
Interest-bearing liabilities:
Domestic interest-bearing deposits:
Savings $23,655 300 1.27 $22,692 421 1.86
NOW and money market deposit accounts 98,649 2,374 2.41 96,541 2,536 2.63
Consumer CDs and IRAs 74,010 3,534 4.78 74,655 3,915 5.24
Negotiated CDs, public funds and other time deposits 6,646 361 5.44 7,604 414 5.44
-----------------------------------------------------------
Total domestic interest-bearing deposits 202,960 6,569 3.24 201,492 7,286 3.62
-----------------------------------------------------------
Foreign interest-bearing deposits (4):
Banks located in foreign countries 16,301 802 4.92 24,587 1,405 5.72
Governments and official institutions 7,884 400 5.08 10,517 590 5.61
Time, savings and other 25,949 1,231 4.74 24,261 1,530 6.30
-----------------------------------------------------------
Total foreign interest-bearing deposits 50,134 2,433 4.85 59,365 3,525 5.94
-----------------------------------------------------------
Total interest-bearing deposits 253,094 9,002 3.56 260,857 10,811 4.14
-----------------------------------------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 116,150 5,826 5.02 90,630 5,239 5.78
Trading account liabilities 15,458 658 4.26 17,472 895 5.12
Long-term debt (5) 57,574 3,600 6.25 49,969 3,345 6.69
-----------------------------------------------------------
Total interest-bearing liabilities (6) 442,276 19,086 4.32 418,928 20,290 4.84
-----------------------------------------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 88,654 84,628
Other liabilities 39,307 36,102
Shareholders' equity 46,601 44,829
-----------------------------------------------------------
Total liabilities and shareholders' equity $616,838 $584,487
-----------------------------------------------------------
Net interest spread 2.74 2.91
Impact of noninterest-bearing sources .73 .78
-----------------------------------------------------------
Net interest income/yield on earning assets $18,452 3.47 % $18,461 3.69 %
-----------------------------------------------------------
(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 respective average loan balances. Income on such nonperforming loans is recognized on
a cash basis.
(3) Interest income includes taxable-equivalent basis adjustments of $215, $163 and $157 in 1999, 1998 and 1997, respectively.
Interest income also includes the impact of risk management interest rate contracts, which increased interest income
on the underlying assets $306, $174, and $159 in 1999, 1998 and 1997, 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 decreased (increased) interest
expense on the underlying liabilities $116, $(45) and $15 in 1999, 1998, and 1997, respectively.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Credit Quality - Nonperforming Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
December 31, September 30, June 30, March 31, December 31,
1999 1999 1999 1999 1998
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nonperforming loans:
Commercial - domestic $1,163 $1,026 $1,085 $1,085 $ 812
Commercial - foreign 486 477 492 434 314
Commercial real estate - domestic 191 174 203 272 299
Commercial real estate - foreign 3 3 3 3 4
Residential mortgage 529 542 565 634 722
Home equity lines 46 44 44 41 50
Direct/Indirect consumer 19 16 17 20 21
Consumer finance 598 519 382 332 246
Foreign consumer 7 9 21 17 14
---------------------------------------------------------------------------
Total nonperforming loans 3,042 2,810 2,812 2,838 2,482
Foreclosed properties 163 228 258 282 282
---------------------------------------------------------------------------
Total nonperforming assets $3,205 $3,038 $3,070 $3,120 $2,764
---------------------------------------------------------------------------
Loans past due 90 days or more and not classified as
nonperforming $ 521 $ 466 $ 631 $ 571 $ 611
Nonperforming assets as a percentage of:
Total assets .51 % .49 % .50 % .51 % .45 %
Loans, leases and foreclosed properties .86 .84 .84 .86 .77
- ---------------------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets by Business Segment:
Consumer Banking $1,432 $1,399 $1,383 $1,347 $1,314
Commercial Banking 436 510 580 605 469
Global Corporate Investment Banking 1,291 1,086 1,066 1,099 937
Principal Investing and Asset Management 41 42 39 66 40
Other 5 1 2 3 4
---------------------------------------------------------------------------
Total nonperforming assets $3,205 $3,038 $3,070 $3,120 $2,764
---------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Credit Quality - Loan Losses
- -----------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
Year-to-date Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
1999 1999 1999 1999 1999 1998
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Gross charge-offs:
Commercial - domestic $ 820 $ 223 $ 213 $ 178 $ 206 $ 137
Commercial - foreign 161 29 14 88 30 66
Commercial real estate - domestic 19 6 6 5 2 3
Commercial real estate - foreign 1 - - 1 - -
Residential mortgage 35 9 11 8 7 9
Home equity lines 24 7 4 7 6 6
Bankcard 571 112 120 167 172 185
Direct/Indirect consumer 545 153 125 127 140 153
Consumer finance 387 104 101 84 98 116
Other consumer domestic (1) - (1) - - (1)
Foreign consumer 20 1 7 7 5 5
-------------------------------------------------------------------------------------
Total $ 2,582 $ 644 $ 600 $ 672 $ 666 $ 679
-------------------------------------------------------------------------------------
Net charge-offs:
Commercial - domestic $ 711 $ 191 $ 192 $ 147 $ 181 $ 113
Commercial - foreign 144 22 9 84 29 65
Commercial real estate - domestic (6) 1 1 (6) (2) -
Commercial real estate - foreign 1 - - 1 - -
Residential mortgage 28 6 10 7 5 8
Home equity lines 12 4 1 3 4 3
Bankcard 495 94 93 153 155 164
Direct/Indirect consumer 370 110 82 83 95 113
Consumer finance 229 72 67 42 48 76
Other consumer domestic (1) - (1) - - (1)
Foreign consumer 17 1 6 6 4 3
-------------------------------------------------------------------------------------
Total $ 2,000 $ 501 $ 460 $ 520 $ 519 $ 544
-------------------------------------------------------------------------------------
Loss ratios:
Commercial - domestic .51 % .54 % .56 % .43 % .53 % .33 %
Commercial - foreign .49 .32 .13 1.12 .37 .78
Commercial real estate - domestic (.02) .02 .03 (.11) (.02) -
Commercial real estate - foreign .39 .44 .40 .10 - -
Residential mortgage .04 .03 .05 .04 .03 .04
Home equity lines .07 .10 .01 .09 .10 .07
Bankcard** 5.08 4.34 4.11 5.94 5.63 5.49
Direct/Indirect consumer .88 1.02 .77 .78 .93 1.09
Consumer finance 1.22 1.33 1.35 .94 1.22 2.11
Other consumer domestic - - - - - -
Foreign consumer .52 .25 .67 .65 .43 .42
Total .55 .55 .51 .57 .58 .60
Loss Ratios by Business Segment:
Consumer Banking .76 % .93 % .64 % .70 % .76 % 1.01 %
Commercial Banking .26 .31 .29 .26 .17 .40
Global Corporate and Investment Banking .46 .39 .32 .56 .55 .35
Principal Investing and Asset Management .44 .29 .89 .35 .24 .01
Other 18.83 n/m .76 1.30 (1.51) 56.99
Allowance for credit losses $ (6,828) $ (6,828) $ (7,076) $ (7,096) $ (7,123) $ (7,122)
Allowance for credit losses as a percentage
of loans and leases 1.84 % 1.84 % 1.96 % 1.95 % 1.96 % 1.99 %
- -----------------------------------------------------------------------------------------------------------------------------------
* Managed Bankcard receivable net charge-offs $ 1,077 $ 257 $ 233 $ 294 $ 294 $ 301
** Managed Bankcard portfolio loss ratios 5.57 % 5.29 % 4.83 % 6.13 % 6.01 % 5.83 %
Average managed Bankcard receivables $19,358 $19,258 $19,162 $19,204 $19,814 $20,526
n/m = not meaningful
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Capital
- ----------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
Fourth Third Second First Fourth
Year-to-date Quarter Quarter Quarter Quarter Quarter
1999 1999 1999 1999 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Beginning common equity $ 45,866 $ 45,811 $ 45,551 $ 46,761 $ 45,866 $ 47,245
Net income 7,882 1,902 2,151 1,915 1,914 1,162
Dividends (3,199) (852) (776) (787) (784) (778)
Common stock issued 1,163 154 329 330 350 19
Common stock repurchased (4,858) (1,954) (1,182) (1,722) - (1,151)
Change in FAS 115 adjustment-net
unrealized gains (losses) (2,773) (726) (337) (1,007) (703) (625)
Foreign currency translation
adjustment and other 274 20 75 61 118 (6)
- ----------------------------------------------------------------------------------------------------------------------------
Ending common equity 44,355 44,355 45,811 45,551 46,761 45,866
- ----------------------------------------------------------------------------------------------------------------------------
Preferred equity 77 77 78 80 70 72
- ----------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity $ 44,432 $ 44,432 $ 45,889 $ 45,631 $ 46,831 $ 45,938
- ----------------------------------------------------------------------------------------------------------------------------
FAS 115 adjustment - end of period $(2,470) $(2,470) $(1,744) $(1,407) $ (400) $ 303
Total equity as a percentage of total assets 7.02 % 7.02 % 7.39 % 7.43 % 7.62 % 7.44 %
Common equity as a percentage of total assets 7.01 7.01 7.38 7.42 7.61 7.43
Risk-based capital ratios:
Tier 1 capital $38,651 $38,651 $39,380 $38,145 $38,522 $36,849
Tier 1 capital ratio 7.35 % 7.35 % 7.71 % 7.38 % 7.40 % 7.06 %
Total capital $57,192 $57,192 $58,167 $57,365 $58,132 $57,055
Total capital ratio 10.88 % 10.88 % 11.39 % 11.09 % 11.17 % 10.94 %
Leverage ratio 6.26 6.26 6.59 6.34 6.47 6.22
Risk-weighted assets, net $525,625 $525,625 $510,866 $517,130 $520,396 $521,637
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Consolidated Statement of Income
(Operating Results including Merger-Related Charges)
- ----------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions, Except Per-Share Information)
Fourth Third Second First Fourth
Year-to-date Quarter Quarter Quarter Quarter Quarter
1999 1999 1999 1999 1999 1998
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans and leases $ 27,569 $ 7,063 $ 6,883 $ 6,853 $ 6,770 $ 7,030
Interest and dividends on securities 4,826 1,300 1,208 1,143 1,175 1,191
Federal funds sold and securities
purchased under agreements to resell 1,666 458 440 387 381 486
Trading account assets 2,087 535 482 525 545 612
Other interest income 1,175 266 281 298 330 319
-------------------------------------------------------------
Total interest income 37,323 9,622 9,294 9,206 9,201 9,638
-------------------------------------------------------------
Interest expense
Deposits 9,002 2,324 2,198 2,168 2,312 2,598
Short-term borrowings 5,826 1,638 1,437 1,396 1,355 1,422
Trading account liabilities 658 190 189 150 129 165
Long-term debt 3,600 995 920 880 805 844
-------------------------------------------------------------
Total interest expense 19,086 5,147 4,744 4,594 4,601 5,029
-------------------------------------------------------------
Net interest income 18,237 4,475 4,550 4,612 4,600 4,609
Provision for credit losses 1,820 350 450 510 510 510
-------------------------------------------------------------
Net interest income after provision for credit losses 16,417 4,125 4,100 4,102 4,090 4,099
Gains on sales of securities 240 14 44 52 130 404
Noninterest income
Service charges on deposit accounts 3,645 948 942 900 855 881
Mortgage servicing income 673 210 206 125 132 103
Investment banking income 2,244 599 702 555 388 356
Trading account profits and fees 1,495 287 313 395 500 96
Brokerage income 724 180 168 192 184 162
Nondeposit-related service fees 554 159 136 123 136 150
Asset management and fiduciary service fees 1,023 256 250 274 243 229
Credit card income 1,791 487 496 448 360 398
Other income 1,920 470 515 510 425 280
-------------------------------------------------------------
Total noninterest income 14,069 3,596 3,728 3,522 3,223 2,655
-------------------------------------------------------------
Merger-related charges 525 325 - 200 - 600
Other noninterest expense
Personnel 9,308 2,378 2,336 2,261 2,333 2,301
Occupancy 1,627 419 417 395 396 413
Equipment 1,346 336 313 339 358 384
Marketing 537 98 145 147 147 135
Professional fees 630 178 160 166 126 233
Amortization of intangibles 888 219 222 225 222 223
Data processing 763 195 164 214 190 205
Telecommunications 549 142 131 140 136 152
Other general operating 1,820 456 498 446 420 493
General administrative and other 518 129 140 124 125 148
-------------------------------------------------------------
Total other noninterest expense 17,986 4,550 4,526 4,457 4,453 4,687
-------------------------------------------------------------
Income before income taxes 12,215 2,860 3,346 3,019 2,990 1,871
Income tax expense 4,333 958 1,195 1,104 1,076 709
-------------------------------------------------------------
Net income $ 7,882 $ 1,902 $ 2,151 $ 1,915 $ 1,914 $ 1,162
-------------------------------------------------------------
Net income available to common shareholders $ 7,876 $ 1,901 $ 2,149 $ 1,914 $ 1,912 $ 1,161
-------------------------------------------------------------
Per-share information
Earnings per common share $4.56 $1.12 $1.25 $1.10 $1.10 $ .67
-------------------------------------------------------------
Diluted earnings per common share $4.48 $1.10 $1.23 $1.07 $1.08 $ .66
-------------------------------------------------------------
Dividends per common share $1.85 $ .50 $ .45 $ .45 $ .45 $ .45
-------------------------------------------------------------
Average common shares issued and outstanding (in thousands) 1,726,006 1,701,092 1,722,307 1,743,503 1,737,562 1,731,314
-------------------------------------------------------------
Average diluted common shares issued and outstanding (in thousands) 1,760,058 1,725,187 1,755,146 1,786,844 1,779,708 1,763,055
-------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bank of America Corporation
Country Risk Reporting
- -----------------------------------------------------------------------------------------------------------------------------
Binding Exposure by Region, Country of Risk and Category
(Dollars in Millions) Total Increase Increase
Net Revaluation Binding (Decrease) (Decrease)
Gains on Securities/ Exposure from from
Trade Other Derivatives and Other December 31, September 30, December 31,
Region/Country Finance (a) Financing (b) FX Products Investments 1999 1999 1997
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Asia
China $ 11 $ 253 $ 36 $ 56 $ 356 $ 10 $ (409)
Hong Kong 176 3,871 35 237 4,319 (223) (1,312)
India 51 1,584 60 289 1,984 (258) (515)
Indonesia - 407 19 96 522 11 (988)
Japan 86 1,458 411 1,846 3,801 376 (3,169)
Korea (South) 433 1,098 212 395 2,138 276 (1,666)
Malaysia 16 526 1 47 590 (42) (664)
Pakistan 59 250 1 13 323 (55) (227)
Philippines 35 378 3 87 503 14 (260)
Singapore 5 1,089 37 161 1,292 (287) (1,120)
Taiwan 16 882 37 26 961 (219) (1,477)
Thailand 6 483 31 88 608 (117) (1,349)
Other 19 129 - 2 150 (14) (47)
- -----------------------------------------------------------------------------------------------------------------------------
Total 913 12,408 883 3,343 17,547 (528) (13,203)
- -----------------------------------------------------------------------------------------------------------------------------
Central and Eastern Europe
Russian Federation 4 8 - 6 18 (6) (429)
Other 6 356 23 68 453 52 (245)
- -----------------------------------------------------------------------------------------------------------------------------
Total 10 364 23 74 471 46 (674)
- -----------------------------------------------------------------------------------------------------------------------------
Latin America
Argentina 4 735 4 395 1,138 90 (505)
Brazil 646 968 2 892 2,508 (103) (1,122)
Chile 10 911 16 62 999 (256) (681)
Colombia 22 439 1 30 492 (19) (293)
Mexico 162 2,300 103 1,310 3,875 (283) (2,237)
Venezuela 2 226 - 185 413 (54) (210)
Other 141 125 3 78 347 (40) (96)
- -----------------------------------------------------------------------------------------------------------------------------
Total 987 5,704 129 2,952 9,772 (665) (5,144)
- -----------------------------------------------------------------------------------------------------------------------------
Total $1,910 $18,476 $1,035 $6,369 $27,790 $(1,147) $(19,021)
- -----------------------------------------------------------------------------------------------------------------------------
(a) Includes extensions of credit with maturities of one year or less that are directly related to imports or exports and will be
liquidated through the proceeds of international trade. Such extensions of credit may include acceptances, pre-export
financing where there is a firm export sales order, commercial letters of credit, as well as other loans and advances directly
related to international trade.
(b) This category includes time deposits placed and extensions of credit that do not meet the criteria for Trade Finance.
</TABLE>
