Bank of America 2004 Annual Report Download - page 34

BANK OF AMERICA 2004 33
This report contains certain statements that are forward-looking within
the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult to
predict. Actual outcomes and results may differ materially from those
expressed in, or implied by, our forward-looking statements. Words such
as “expects,” “anticipates,” “believes,” “estimates” and other similar
expressions or future or conditional verbs such as “will,” “should,”
“would” and “could” are intended to identify such forward-looking
statements. Readers of the Annual Report of Bank of America
Corporation and its subsidiaries (the Corporation) should not rely solely
on the forward-looking statements and should consider all uncertainties
and risks throughout this report. The statements are representative
only as of the date they are made, and the Corporation undertakes no
obligation to update any forward-looking statement.
Possible events or factors that could cause results or performance
to differ materially from those expressed in our forward-looking statements
include the following: changes in general economic conditions and
economic conditions in the geographic regions and industries in which
the Corporation operates which may affect, among other things, the level
of nonperforming assets, charge-offs and provision expense; changes in
the interest rate environment which may reduce interest margins and
impact funding sources; changes in foreign exchange rates; adverse
movements and volatility in debt and equity capital markets; changes in
market rates and prices which may adversely impact the value of financial
products including securities, loans, deposits, debt and derivative financial
instruments, and other similar financial instruments; political conditions
and related actions by the United States abroad which may adversely
affect the Corporation’s businesses and economic conditions as a whole;
liabilities resulting from litigation and regulatory investigations, including
costs, expenses, settlements and judgments; changes in domestic or
foreign tax laws, rules and regulations as well as Internal Revenue
Service (IRS) or other governmental agencies’ interpretations thereof;
various monetary and fiscal policies and regulations, including those
determined by the Board of Governors of the Federal Reserve System
(FRB), the Office of the Comptroller of Currency, the Federal Deposit
Insurance Corporation and state regulators; competition with other local,
regional and international banks, thrifts, credit unions and other nonbank
financial institutions; ability to grow core businesses; ability to develop and
introduce new banking-related products, services and enhancements,
and gain market acceptance of such products; mergers and acquisitions
and their integration into the Corporation; decisions to downsize, sell or
close units or otherwise change the business mix of the Corporation; and
management’s ability to manage these and other risks.
The Corporation, headquartered in Charlotte, North Carolina, operates
in 29 states and the District of Columbia and has offices located in
43 foreign countries. The Corporation provides a diversified range of
banking and nonbanking financial services and products both
domestically and internationally through four business segments. In
order to more closely align with the scope of our businesses, we have
renamed each of our business segments. Consumer and Small
Business Banking has been renamed Global Consumer and Small
Business Banking, Commercial Banking is now called Global Business
and Financial Services, Global Corporate and Investment Banking is
now called Global Capital Markets and Investment Banking, and
Wealth and Investment Management has been renamed Global Wealth
and Investment Management.
At December 31, 2004, the Corporation had $1.1 trillion in
assets and approximately 176,000 full-time equivalent employees.
Notes to Consolidated Financial Statements referred to in
Management’s Discussion and Analysis of Results of Operations and
Financial Condition are incorporated by reference into Management’s
Discussion and Analysis of Results of Operations and Financial
Condition. Certain prior period amounts have been reclassified to
conform to current period presentation.
On April 1, 2004, we completed our merger with FleetBoston
Financial Corporation (FleetBoston) (the Merger) after obtaining final
shareholder and regulatory approvals. The Merger was accounted for
under the purchase method of accounting. Accordingly, results for
2004 included nine months of combined company results. Results
for 2003 and at December 31, 2003 excluded FleetBoston. For
informational and comparative purposes, certain tables have been
expanded to include a column entitled FleetBoston, April 1, 2004.
This column represents balances acquired from FleetBoston as of
April 1, 2004, including purchase accounting adjustments.
On October 15, 2004, we acquired 100 percent of National
Processing, Inc. (NPC), for $1.4 billion in cash, creating the second
largest merchant processor in the United States.
During the second quarter of 2004, our Board of Directors
(the Board) approved a 2-for-1 stock split in the form of a common
stock dividend and increased the quarterly cash dividend 12.5 percent
from $0.40 to $0.45 per post-split share. The common stock dividend
was effective August 27, 2004 to common shareholders of record on
August 6, 2004 and the cash dividend was effective September 24,
2004 to common shareholders of record on September 3, 2004. All
prior period common share and related per common share information
has been restated to reflect the 2-for-1 stock split.
Management’s Discussion and Analysis
of Results of Operations and Financial Condition
Bank of America Corporation and Subsidiaries