10-KPeriod: FY2002

BANK OF AMERICA CORP /DE/ Annual Report, Year Ended Dec 31, 2002

Filed March 3, 2003For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

This 10-K filing for Bank of America Corporation (BAC) for the fiscal year ended December 31, 2002, details the company's extensive operations as a diversified financial holding company. The report highlights BAC's strong market positions across various regions in the United States, particularly in key states like California and Florida, supported by favorable demographic and economic trends in its primary market areas. The company operates under a comprehensive regulatory framework, emphasizing its adherence to capital and operational requirements, with its banking subsidiaries being considered "well capitalized" by regulators. Investors will find information regarding the company's diverse business segments, including Consumer and Commercial Banking, Asset Management, Global Corporate and Investment Banking, and Equity Investments. The filing also addresses significant legal proceedings, including ongoing litigation related to Enron and WorldCom, though management believes these will not have a material adverse effect on the company's financial position. Dividends per share have been consistently paid, with an increase in the fourth quarter of 2002, reflecting the company's performance and regulatory compliance.

Key Highlights

  • 1Bank of America holds leading or strong market share positions in deposits across numerous U.S. states, including California, Florida, Maryland, and Washington.
  • 2The company operates under a robust regulatory framework, with all banking subsidiaries classified as "well capitalized" according to FDICIA guidelines, maintaining strong Tier 1 and total capital ratios.
  • 3BAC is a diversified financial holding company with four key business segments: Consumer and Commercial Banking, Asset Management, Global Corporate and Investment Banking, and Equity Investments.
  • 4Significant legal proceedings are disclosed, including ongoing litigation related to Enron and WorldCom, with management expressing confidence that these will not materially impact the company's financial health.
  • 5The company demonstrated consistent dividend payments on its common stock, with an increase from $0.60 to $0.64 per share in the fourth quarter of 2002.
  • 6As of December 31, 2002, Bank of America employed 133,944 full-time equivalent employees across its various operations.

Frequently Asked Questions

Bank of America holds a leading bank deposit market share in California, Florida, Maryland, and Washington. It ranks second in several other states including Arizona, Kansas, Missouri, North Carolina, South Carolina, and Texas, demonstrating a significant presence across the Mid-Atlantic, Southeast, Southwest, Northwest, and West regions of the United States.

As of December 31, 2002, Bank of America's banking subsidiaries were considered "well capitalized" by regulators. The company reported a Tier 1 risk-based capital ratio of 8.22% and a total risk-based capital ratio of 12.43%, both exceeding the minimum requirements. The leverage ratio was 6.29%, also meeting the "well capitalized" threshold.

Bank of America is involved in several significant legal proceedings, including class action lawsuits related to the Enron and WorldCom securities litigations, as well as past litigation stemming from the merger of NationsBank and BankAmerica. While these matters are ongoing or under appeal, management believes that any resulting liabilities will not have a material adverse effect on the company's consolidated financial position, operations, or liquidity.

The filing states that detailed information regarding market risk management and liquidity risk management can be found within the Management's Discussion and Analysis section of the 2002 Annual Report, incorporated by reference. This indicates the company actively monitors and manages these critical financial risks.