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BANK OF AMERICA 2001 ANNUAL REPORT
52
Table 9 Short-Term Borrowings
2001 2000 1999
(Dollars in millions)
Amount Rate Amount Rate Amount Rate
Federal funds purchased
At December 31 $ 5,487 1.45% $ 4,612 5.92% $ 4,806 3.04%
Average during year 6,267 3.99 4,506 6.44 5,835 5.03
Maximum month-end balance during year 8,718 – 7,149 – 8,311 –
Securities sold under agreements to repurchase
At December 31 42,240 1.25 44,799 6.26 69,755 4.12
Average during year 54,826 4.01 79,217 5.93 73,242 4.89
Maximum month-end balance during year 70,674 – 90,062 – 83,046 –
Commercial paper
At December 31 1,558 1.99 6,955 6.54 7,331 5.83
Average during year 4,156 4.91 9,645 6.41 7,610 5.17
Maximum month-end balance during year 7,410 – 10,762 – 8,379 –
Other short-term borrowings
At December 31 20,659 2.13 35,243 5.97 40,340 5.18
Average during year 27,227 5.56 38,124 6.18 29,463 5.30
Maximum month-end balance during year 39,391 – 45,271 – 40,340 –
Long-Term Debt and Trust Preferred Securities
Long-term debt decreased $5.0 billion to $62.5 billion at December 31, 2001, from $67.5 billion at December 31, 2000. The overall decline in long-term
debt reflected a decline in average assets, but was partially offset by additional issuances to maintain liquidity, repay maturing debt and fund share
repurchases. During 2001, the Corporation issued, domestically and internationally, $14.9 billion in long-term senior and subordinated debt, an
$8.6 billion decrease from $23.5 billion during 2000. The Corporation issued $575 million of trust preferred securities in 2001. There were no trust
preferred securities issued in 2000. See Notes Ten and Eleven of the consolidated financial statements for further details on long-term debt and
trust preferred securities, respectively.
Subsequent to December 31, 2001, the Corporation issued $1.7 billion of long-term senior and subordinated debt, with maturities ranging from
2007 to 2027.
Bank of America Corporation, as successor to NationsBank Corporation, announced the redemption of its 7.84 percent Trust Originated
Preferred Securities issued by NB Capital Trust I and its 7.75 percent Trust Originated Preferred Securities issued by BankAmerica Capital I. The
redemption date is March 15, 2002 with a redemption price of $25 per security plus accrued and unpaid distributions, if any, up to but excluding
the redemption date of March 15, 2002.
Subsequent to December 31, 2001, BAC Capital Trust II, a wholly-owned grantor trust of Bank of America Corporation, issued $900 million in
capital securities. The annual dividend rate is 7 percent and is paid quarterly on February 1, May 1, August 1 and November 1 of each year, commencing
May 1, 2002.
The debt ratings of the Corporation and Bank of America, N.A at December 31, 2001 are reflected in the following table:
Bank of America Corporation Bank of America, N.A.
Commercial Senior Subordinated
Paper Debt Debt Short-Term Long-Term
Moody’s Investors Service P-1 Aa2 Aa3 P-1 Aa1
Standard & Poor’s Corporation A-1 A+ A A-1+ AA-
Fitch, Inc. F-1+ AA- A+ F-1+ AA
Debt and Lease Obligations
The Corporation has contractual obligations to make future payments on debt and lease agreements. Long-term debt, capital leases and trust preferred
securities are reflected on the balance sheet, whereas, operating lease obligations for office space and equipment are not recorded on the balance
sheet. These types of obligations are more fully discussed in Notes Ten and Eleven of the consolidated financial statements. Total debt and lease obliga-
tions at December 31, 2001 included:
Due after Due after
Due in 1 year 3 years
1 year through through Due after
(Dollars in millions)
or less 3 years 5 years 5 years Total
Debt and lease obligations
Long-term debt and capital leases(1) $ 11,592 $ 18,781 $14,875 $17,248 $62,496
Trust preferred securities(1) – – – 5,530 5,530
Operating lease obligations 1,174 1,994 1,413 2,528 7,109
Total debt and lease obligations $12,766 $20,775 $16,288 $25,306 $75,135
(1) Includes principal payments only.