Bank of America 2003 Annual Report Download - page 39

74 BANK OF AMERICA 2003 BANK OF AMERICA 2003 75
Consolidated Statement of Income
Bank of America Corporation and Subsidiaries
Year Ended December 31
(Dollars in millions, except per share information) 2003 2002 2001
Interest income
Interest and fees on loans and leases $21,668 $22,030 $27,279
Interest on debt securities 3,160 4,035 3,706
Federal funds sold and securities purchased under agreements to resell 1,373 870 1,414
Trading account assets 3,935 3,811 3,623
Other interest income 1,507 1,415 2,271
Total interest income 31,643 32,161 38,293
Interest expense
Deposits 4,908 5,434 8,886
Short-term borrowings 1,951 2,089 4,167
Trading account liabilities 1,286 1,260 1,155
Long-term debt 2,034 2,455 3,795
Total interest expense 10,179 11,238 18,003
Net interest income 21,464 20,923 20,290
Noninterest income
Consumer service charges 3,230 2,986 2,865
Corporate service charges 2,388 2,290 2,078
Total service charges 5,618 5,276 4,943
Consumer investment and brokerage services 1,559 1,544 1,546
Corporate investment and brokerage services 792 693 566
Total investment and brokerage services 2,351 2,237 2,112
Mortgage banking income 1,922 761 597
Investment banking income 1,736 1,545 1,579
Equity investment gains (losses) 215 (280) 291
Card income 3,052 2,620 2,422
Trading account profits 409 778 1,842
Other income(1) 1,119 634 562
Total noninterest income 16,422 13,571 14,348
Total revenue 37,886 34,494 34,638
Provision for credit losses 2,839 3,697 4,287
Gains on sales of debt securities 941 630 475
Noninterest expense
Personnel 10,446 9,682 9,829
Occupancy 2,006 1,780 1,774
Equipment 1,052 1,124 1,115
Marketing 985 753 682
Professional fees 844 525 564
Amortization of intangibles 217 218 878
Data processing 1,104 1,017 776
Telecommunications 571 481 484
Other general operating 2,902 2,856 3,302
Business exit costs ––1,305
Total noninterest expense 20,127 18,436 20,709
Income before income taxes 15,861 12,991 10,117
Income tax expense 5,051 3,742 3,325
Net income $10,810 $9,249 $ 6,792
Net income available to common shareholders $10,806 $9,244 $ 6,787
Per common share information
Earnings $7.27 $6.08 $ 4.26
Diluted earnings $7.13 $5.91 $ 4.18
Dividends paid $2.88 $2.44 $ 2.28
Average common shares issued and outstanding (in thousands) 1,486,703 1,520,042 1,594,957
Average diluted common shares issued and outstanding (in thousands) 1,515,178 1,565,467 1,625,654
(1) Other income includes whole mortgage loan sale gains totaling $772, $500 and $27 for the years ended December 31, 2003, 2002 and 2001, respectively.
See accompanying notes to consolidated financial statements.
Consolidated Balance Sheet
Bank of America Corporation and Subsidiaries
December 31
(Dollars in millions) 2003 2002
Assets
Cash and cash equivalents $27,084 $24,973
Time deposits placed and other short-term investments 8,051 6,813
Federal funds sold and securities purchased under agreements to resell (includes $76,446
and $44,779 pledged as collateral)
76,492 44,878
Trading account assets (includes $18,722 and $35,515 pledged as collateral) 68,547 63,996
Derivative assets 36,507 34,310
Debt securities:
Available-for-sale (includes $20,858 and $32,919 pledged as collateral)
67,993 68,122
Held-to-maturity, at cost (market value – $254 and $1,001) 247 1,026
Total debt securities 68,240 69,148
Loans and leases 371,463 342,755
Allowance for loan and lease losses (6,163) (6,358)
Loans and leases, net of allowance 365,300 336,397
Premises and equipment, net 6,036 6,717
Mortgage banking assets 2,762 2,110
Goodwill 11,455 11,389
Core deposit intangibles and other intangibles 908 1,095
Other assets 65,063 59,125
Total assets $736,445 $660,951
Liabilities
Deposits in domestic offices:
Noninterest-bearing
$118,495 $122,686
Interest-bearing 262,032 232,320
Deposits in foreign offices:
Noninterest-bearing
3,035 1,673
Interest-bearing 30,551 29,779
Total deposits 414,113 386,458
Federal funds purchased and securities sold under agreements to repurchase 78,046 65,079
Trading account liabilities 26,844 25,574
Derivative liabilities 24,526 23,566
Commercial paper and other short-term borrowings 42,478 25,234
Accrued expenses and other liabilities 27,115 17,545
Long-term debt 75,343 61,145
Trust preferred securities – 6,031
Total liabilities 688,465 610,632
Commitments and contingencies (Note 13)
Shareholders’ equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding –
1,269,600 and 1,356,749 shares
54 58
Common stock, $0.01 par value; authorized – 5,000,000,000 shares; issued and outstanding –
1,441,143,786 and 1,500,691,103 shares
14 496
Retained earnings 50,213 48,517
Accumulated other comprehensive income (loss) (2,148) 1,232
Other (153) 16
Total shareholders’ equity 47,980 50,319
Total liabilities and shareholders’ equity $736,445 $660,951
See accompanying notes to consolidated financial statements.