Bank of America 2001 Annual Report Download - page 102

BANK OF AMERICA 2001 ANNUAL REPORT
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Bank of America Corporation has a 300 billion yen-denominated (approximately U.S. $3 billion) shelf registration in Japan to be used exclusively
for primary offerings to non-United States residents. In addition, Bank of America Corporation allocated $2 billion of a joint Euro medium-term note
program to be used exclusively for secondary offerings to non-United States residents for a shelf registration statement filed in Japan. The Corporation
had $420 million outstanding under these programs at December 31, 2001. At December 31, 2000, the Corporation had no notes outstanding under
these programs.
Bank of America, N.A. maintains a domestic program to offer up to a maximum of $50.0 billion, at any one time, of bank notes with fixed or
floating rates and maturities ranging from seven days or more from date of issue. Short-term bank notes outstanding under this program totaled
$2.5 billion at December 31, 2001 compared to $14.5 billion at December 31, 2000. These short-term bank notes, along with Treasury tax and loan
notes and term federal funds purchased, are reflected in other short-term borrowings in the Consolidated Balance Sheet. Long-term debt under current
and former programs totaled $4.5 billion at December 31, 2001 compared to $17.6 billion at December 31, 2000. During 2001, Bank of America N.A.
issued $1.2 billion in senior long-term bank notes maturing in 2002 through 2007. Of the $1.2 billion issued, $377 million bears interest at fixed rates
ranging from 4.00 percent to 4.88 percent. The remaining $812 million bears interest at floating rates ranging from 8 basis points below three-month
LIBOR to 20 basis points over three-month LIBOR.
Bank of America Corporation and Bank of America, N.A. maintain a joint Euro medium-term note program to offer up to $25.0 billion of senior, or
in the case of Bank of America Corporation, subordinated notes exclusively to non-United States residents. The notes bear interest at fixed or floating
rates and may be denominated in U.S. dollars or foreign currencies. Bank of America Corporation uses foreign currency contracts to convert certain
foreign-denominated debt into U.S. dollars. Bank of America Corporation’s notes outstanding under this program totaled $6.3 billion at December 31,
2001 compared to $5.2 billion at December 31, 2000. Bank of America, N.A.’s notes outstanding under this program totaled $1.4 billion at December 31,
2001 and December 31, 2000. Of the $25.0 billion authorized at December 31, 2001, Bank of America Corporation and Bank of America, N.A. had
remaining authority to issue approximately $8.7 billion and $8.6 billion, respectively. At December 31, 2001 and 2000, $2.0 billion and $2.7 billion,
respectively, were outstanding under the former BankAmerica Corporation (BankAmerica) Euro medium-term note program. No additional debt securities
will be offered under that program.
At December 31, 2001, Bank of America Oregon, N.A. maintained approximately $6.0 billion in Federal Home Loan Bank borrowings from the
Home Loan Bank in Seattle, Washington. During 2001, Bank of America Oregon, N.A. accepted $463 million in Federal Home Loan Bank, Seattle
advances with maturities ranging from 2004 to 2031. Of the $463 million accepted, $450 million was converted from fixed rates ranging from 5.72 per-
cent to 5.89 percent to floating rates through interest rate swaps at a spread of 11 basis points below three-month LIBOR. The remaining $13 million
bears interest at fixed rates ranging from 5.44 percent to 6.44 percent.
During 2001, Bank of America Georgia, N.A. accepted $2.3 billion in advances from the Federal Home Loan Bank in Atlanta, Georgia. All of the
$2.3 billion matures in 2006 and bears interest at spreads to three-month LIBOR.
The Corporation had $1.5 billion of mortgage-backed bonds outstanding at December 31, 2001 and 2000. These bonds were collateralized by
$3.0 billion and $4.5 billion of mortgage loans and cash at December 31, 2001 and 2000, respectively.
As part of its interest rate risk management activities, the Corporation enters into interest rate contracts for certain long-term debt issuances.
At December 31, 2001 and 2000, through the use of interest rate swaps, $22.1 billion and $16.7 billion of fixed-rate debt, with rates ranging primarily
from 4.75 percent to 8.57 percent, had been effectively converted to floating rates primarily at spreads to LIBOR.
Including the effects of interest rate contracts for certain long-term debt issuances, the weighted average effective interest rates for total long-term
debt, total fixed-rate debt and total floating-rate debt (based on the rates in effect at December 31, 2001) were 3.44 percent, 7.26 percent and 2.40
percent, respectively, at December 31, 2001 and (based on the rates in effect at December 31, 2000) were 7.00 percent, 7.51 percent, and 6.84 percent,
respectively, at December 31, 2000. These obligations were denominated primarily in U.S. dollars.
As described below, certain debt obligations outstanding at December 31, 2001 may be redeemed prior to maturity at the option of Bank of
America Corporation:
(Dollars in millions)
Year Redeemable Year of Maturities Amount Outstanding
Currently redeemable 2002-2028 $1,638
2002 2009-2023 530
2003-2004 2005-2018 2,006
2005-2008 2007-2028 1,232