Bank of America Annual Report 1998

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FY1998 Annual Report · Bank of America

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1998 Summary Annual Report

Financial highlights

BankAmerica Corporation and Subsidiaries
(Dollars in millions except per-share information)

For the year
Operating results (1)(2)

For the year
Cash basis
Financial data (1)(2)(3)

At year end (2)

Net income
Earnings per common share
Diluted earnings per common share
Cash dividends paid per common share
Return on average assets
Return on average common shareholders’ equity
Efficiency ratio
Average common shares issued (in millions)

1998

1997

$ 6,490
3.73
3.64
1.59
1.11 %
14.54
61.2
1,732

$ 6,806
3.86
3.76
1.37
1.25 %
15.88
58.1
1,733

Earnings per common share
Diluted earnings per common share
Return on average tangible assets
Return on average tangible common shareholders’ equity
Efficiency ratio

$ 4.25
4.15
1.30 %
25.24
58.2

$ 4.36
4.24
1.45 %
27.77
55.3

Total assets
Total loans and leases
Total deposits
Total shareholders’ equity
Common shareholders’ equity

Per common share

Market price per share of common stock
Common shares issued (in millions)

$617,679
357,328
357,260
45,938
45,866
26.60
60.1250
1,724

$570,983
342,140
346,297
44,584
43,907
25.49
60.8125
1,723

(1) Excludes merger and restructuring items.
(2) Shares and per-share data reflect a 2-for-1 stock split on February 27, 1997.
(3) Cash basis calculations exclude intangible assets and the related amortization expense.

Contents

Message to shareholders

Discussion of earnings

Building the bank of the future

Products and services
Consolidated financial statements

Principal Officers and Board of Directors

Corporate information

24
26

We want to be the people who make banking
work for you in ways it never has before.

We achieve the dream of nationwide banking.

To our shareholders:

In 1998, your company became a nationwide bank. We took giant steps

toward fulfilling our vision of providing a consistent and exceptional banking

experience to all our clients and customers throughout the world. And we unveiled

a new name and logo that will signify unequaled strength and leadership in the

financial services industry in the century to come.

In 1998, we became America’s bank. We became the new Bank of America.

As I said at our announcement ceremony last April, the new Bank of

America is unmatched in coast-to-coast market presence. But perhaps more

important, we believe our franchise is unmatchable.

Our company has the unprecedented ability to serve customers everywhere

with the products and services they want, when they want, where they want and

how they want. The creation of our new company was a turning point in the

financial services industry — with the customer as the defining element. Apart,

BankAmerica and NationsBank were the two finest franchises in North America.

Together, we are America’s bank — at home and around the world.

A new name, a new company. The question that looms over any merger —

particularly a merger of this size — is: Why? Why combine two seemingly healthy,

robust companies at the height of their respective powers, taking huge

cultural and execution risks to create a new, unknown, untested entity? It’s a

good question.

The answer to that question over the past ten years has had to do with

scale, breadth of product offerings and the slow deregulation of the financial

services industry. Scale has always been important as a way to spread fixed costs

over a larger customer base, but it has become even more important as the financial

services industry has become increasingly technology-driven. Our annual budget

for developing, installing and maintaining new technologies surpassed a billion

dollars several years ago. Without scale, such investments in the future would

be impossible.

A broad range of products and services has become necessary as

non-bank competitors have encroached further and further into a market that

once was dominated by traditional banks. And changing regulations have enabled

banks to expand not only into new products and services, but also geographically.

Hugh L. McColl Jr.,
Chairman and Chief Executive Officer

“Customer demands for greater

convenience and broader product

offerings created a need for the

kind of company we’ve built.”

1998 Letter to Shareholders

These forces have led to a mass consolidation in the industry between banks and

other financial services firms.

I have argued in the past that we were in an end-game that would leave a

handful of large banks as players on the national stage. I would now argue that

the merger between NationsBank and BankAmerica was, for those organizations,

the culmination of an aggressive growth strategy that had as its rationale the

end-game of consolidation. Customer demands for greater convenience and

broader product offerings created a need for the kind of company we’ve built.

With this merger, however, we have reached the watershed. We must now

Dividends
(Per share)

turn our attention to an even greater task.

Your company now has more retail and commercial customers in the U.S.

than any other bank. Our geographic reach is unparalleled. We offer a multitude

of financial products and services, and we can provide those products and services

Return on equity (operating basis)
(Percent)

through every existing delivery channel on the market. Our task is to put these

pieces of our business together in a way that creates value for our clients and

customers — value no other bank has ever offered. Technology, of course, is

helping us do this.

Technology is enabling us to create a bank that is available to customers

24 hours a day every day of the year from any telephone or computer terminal in

the world. Technology is enabling us to build connectivity and seamlessness for

customers across product lines and company divisions.

But at the end of the day, it’s not all about technology. It’s about putting

the best people in our markets and giving them the best technology so they can go

out and build the best bank in America.

What will that bank look like? In sum, it will be a nationwide bank

with a strong position in all the country’s best growth markets and the most com-

prehensive corporate client base in the industry. It will have the power and reach

to serve these corporate clients anywhere in the world. It will have the scale and

the capital power to invest in systems and products that will make banking easier

and better for all its customers. And it will be a valued financial partner to indi-

1.59

1.37

1.20

1.04

14.5

15.9

17.0

15.5

viduals, small business and large corporations, creating broad, deep relationships

“Our task is to put these pieces of our business

over customers’ lifetimes.

This is the bank we’re building.

Financial challenges. While the news of our merger generated great

optimism, financial results for the year were disappointing, largely due to

unforeseen turmoil in international markets during late summer and early fall.

Profits also were hurt by the lending relationship with D.E. Shaw, a trading and

together in a way that creates value for our

clients and customers.”

Operating earnings per share
(Dollars)

Operating net income
(Dollars in billions)

3.73

3.86

3.58

3.03

6.49

6.81

6.06

5.15

investment firm that experienced mounting losses in late September and October.

To address this problem, the D.E. Shaw relationship has been restructured. In

addition, steps have been taken to minimize future losses.

All of that said, our trading losses and the D.E. Shaw relationship

obscured what otherwise would have been a good overall financial performance

for the year. In fact, many of our core earnings drivers remain vibrant. For

example, Consumer Banking earned $4 billion in 1998, a number that would have

ranked this unit alone in the top six U.S. banking companies for net earnings.

While we anticipate earnings challenges in 1999 from continuing pressure

on spreads, we are confident that the corrective actions we’ve taken and the

strategic advantages of the company we’re building will quickly return profits to

healthy levels.

One expression of this confidence is our decision to invest $750 million

in 1999 on projects that will help make Bank of America the bank we all envision.

We are certainly taking steps in 1999 to reduce expenses — but we are keenly

aware that we cannot save our way into prosperity. We continue to believe our

future is bright, and we will continue to invest in it.

Bringing it all together. There were several key events over the course of

the year that contributed to the creation of your new company.

First, on January 9 we completed our acquisition of Barnett Banks, Inc.

At the time this was the largest acquisition in banking history, and it created the

premier banking franchise in Florida, one of our country’s fastest growing states.

As expected, we completed the Barnett transition in the fall of 1998. The

addition of the Barnett franchise ensures our leading position in one of the

fastest-growing and most profitable banking markets in the country.

Second, we completed the installation of the Model Bank throughout

the former NationsBank franchise. The technological cornerstone of our vision

for banking in the next century, the Model Bank provides associates complete

information about customer relationships across product lines, business lines

and state lines. Operating on one system also greatly eases product upgrades and

rollouts, internal communications and service consistency and uniformity across

the franchise. The system, installed over the past seven years, enables consumer

bankers and relationship managers to serve customers with unprecedented

efficiency, consistency and responsiveness.

In the states where the Model Bank has been in use for more than a year,

associates have demonstrated its power by increasing sales levels by more than

35 percent. Our current schedule for installing the system in our western states

1998 Letter to Shareholders

calls for conversion in Texas and New Mexico in April, Arizona and Nevada in

the third quarter, California in the second half of 2000 and the Northwest in the

first half of 2001.

Third, we achieved our long-time goal of consolidating all our former

bank charters throughout the former NationsBank franchise into our national

bank charter, NationsBank, N.A.

This was an important step in our decades-old fight to overcome

Depression-era restrictions on interstate banking. We plan to consolidate the

charters in the western half of our franchise into our national charter as quickly

as possible. The creation of a single, nationwide bank charter throughout our new

company will enable us to serve customers without regard to state boundaries,

and also will enable us to eliminate redundant and costly administrative functions.

Finally, we achieved our dream of creating the first nationwide bank by

bringing together the two greatest U.S. banking franchises — the former

BankAmerica Corporation and the former NationsBank Corporation — to form

the new Bank of America.

The people who will make it happen. The real story behind your new

company is the opportunity we have to fulfill our vision for the future of banking,

the core values that will shape our decisions and our actions every day, and

the promise of what we’ll become for our customers, our communities, our

shareholders and ourselves. The Bank of America brand we are building will

represent unprecedented value, convenience and financial confidence in the

minds of our customers; a strong partner and an able leader for our communities;

a wise investment decision for our shareholders; and the best place to work for

our associates.

Of course, it is Bank of America associates who will make all this

happen. And, I am happy to report, my meetings with associates across your new

company have made me more confident than ever in our future.

In Dallas, we held our first senior management meeting in November, a

meeting marked by camaraderie and straight talk about what we must do to

achieve our goals. In San Francisco, Jacksonville and many places in between,

“The Bank of America brand we are

I’ve met with groups of enthusiastic associates at numerous events during the

past year. In Seattle, I had the honor of speaking at the Annual Seafirst Diversity

Dinner, an inspiring event that spoke volumes about our commitment to

teamwork. And as part of our Day One celebration, I spoke via satellite to

more than 20,000 of our associates in 36 cities around the world about

our challenges and opportunities.

building will represent unprecedented value,

convenience and financial confidence in the

minds of our customers.”

Revenue
(Dollars in billions)

Shareholders’ equity
(Dollars in billions)

In every instance, our associates have been enthusiastic and confident

about the challenges and opportunities before us. At the end of the day, it is our

people that make me so confident about the future of your new company.

New teammates. In addition to welcoming all our associates to the new

Bank of America, I would particularly like to welcome the 18 individuals who

comprise the new board of directors. (A list of their names can be found on

page 28.) This is an extraordinarily experienced, talented and diverse group of

directors who will guide your company into the next century with courage

and wisdom.

I also would like to thank Andy Craig and Charlie Rice for their service

as chairmen of the NationsBank board. Andy’s support and wise counsel over

the past two years have earned him our gratitude; he’s been a good friend, and a

good leader for our company. We wish him well in his retirement. I welcome

Charlie to our new company in his new role as vice chairman for corporate

development. Charlie is an outstanding banker who will continue to contribute

greatly to our company.

Finally, I thank all the members of the boards of our predecessor

organizations for their service, their guidance and their vision. Each has my

sincere gratitude.

In closing, as always, I welcome your thoughts and suggestions.

30.6

30.3

26.7

24.0

45.9

44.6

37.8

36.3

Hugh L. McColl Jr.

Chairman and Chief Executive Officer

Operating earnings reach $6.5 billion in 1998.

BankAmerica’s operating earnings
totaled $6.49 billion, or $3.73 per share,
in 1998 compared to $6.81 billion, or
$3.86 per share, in 1997. Solid gains
in the company’s core consumer and
commercial banking businesses were
offset by the impact of higher provision
expense and weaker trading revenues
resulting from turbulence in financial
markets.

The provision for credit losses was

$2.92 billion, up from $1.90 billion
a year earlier due largely to losses
associated with the company’s lending
relationship to D.E. Shaw, a trading
and investment firm. Net charge-offs
rose to $2.47 billion, equal to an
annualized .71 percent of average net
loans and leases, from $1.85 billion,
or .54 percent, a year earlier.

Nonperforming assets were
$2.76 billion, or .77 percent of net
loans, leases and foreclosed properties
on December 31, 1998, up from
$2.42 billion, or .71 percent a year
earlier. The allowance for credit losses
totaled $7.12 billion on December 31,
1998, equal to 287 percent of nonper-
forming loans and 1.99 percent of
loans and leases. The allowance was
$6.78 billion, or 1.98 percent of loans
and leases, a year earlier.

Total shareholders’ equity was
$45.9 billion at December 31, 1998.
This represented 7.44 percent of
period-end assets, compared to
7.81 percent on December 31, 1997.
Book value per common share rose
4 percent to $26.60 at December 31,
1998, from a year earlier.

Total assets stood at $618 billion

on December 31, 1998.

Including charges related to mergers,

net income in 1998 was $5.17 billion,
or $2.97 per share, compared to
$6.54 billion, or $3.71 per share, a
year earlier.

Taxable-equivalent net interest

income declined less than 1 percent to
$18.46 billion, as an 8 percent increase
in managed loans was offset by a
31-basis-point reduction in the
company’s net yield on earning assets.

Noninterest income rose 4 percent to

$12.19 billion. Investment banking,
which includes results from
NationsBanc Montgomery Securities
and Robertson Stephens acquired late
in 1997, credit card and brokerage
registered significant year-over-year
gains. These gains were partially offset
by lower trading results.

Noninterest expense increased
6 percent, reflecting the purchase of
NationsBanc Montgomery Securities
on October 1, 1997 and Robertson
Stephens, acquired that same date but
sold in the third quarter of 1998, and
spending on transition projects.

1998 Bank of America Summary Annual Report

Building the bank of the future.

Consider the comfort of dealing with

As a businessperson, consider the

a local bank, where the staff members

opportunity to work with a financial

(who live in the same town you do)

services organization which can meet all

provide exceptional service, and where

of your financial needs. One which

products and prices are keenly com-

offers tremendous resources to small-

petitive. Where bankers hold broad

and mid-sized businesses, corporations

authority to make decisions without

and government agencies across the

calling headquarters. Where everyone

nation and around the world. An

accepts a responsibility (and has the

organization that delivers capacity and

power) to do the right thing for clients

product breadth, global reach and

and customers. A bank whose people

superior execution to each client

enthusiastically support the whole life

through teams of talented profession-

of your community: youth soccer, the

als. One which is firmly positioned at

arts, the underserved. A neighborhood

the forefront of global finance, opening

institution, therefore, with character

doors into Asia and Europe, and

and history.

Now consider the even greater satis-

faction that comes from knowing your

bank also provides you with the choice,

southward into Latin America, helping

a majority of America’s leading

corporations compete successfully in

a burgeoning global economy.

convenience and coast-to-coast access

Finally, consider that all these

of nationwide banking. That it is sup-

accomplishments are just the beginning.

ported by thousands of sister offices,

The company we’re discussing — Bank

ATMs and product and service facilities

of America — is determined to be

in 22 states (and the District of

much more. Our goal is to build a

Columbia) from Maryland to Florida

company that makes banking work as it

to California. That all this constitutes a

never has before. A company reshaped

banking company of such size and

around those things that matter most to

scope that it can (and does) spend

our individual and business customers:

almost $3 billion a year on technology

convenience, simplicity, flexibility and

alone, a visionary investment that,

dependability. A company that under-

among other things, lets you bank how

stands and anticipates the needs of

and when you want, even by phone and

PC any place in the world.

Bank of America helps make the

dream of home ownership come true

for a customer every 3 minutes

around the clock.

Fay Darmawi of Community Development
Banking and Maurice Miller of Asian
Neighborhood Design in San Francisco.

Fay Darmawi came to the Community Development Banking Group in 1994 after experience with
a nonprofit housing development corporation in Hayward, California. She now works with nonprofit
developers in the San Francisco area to customize financing for affordable housing projects.

(cid:210)Affordable housing deals are so complex and unique that it takes all our expertise to come up

with financial solutions. That(cid:213)s why it(cid:213)s so important that the people on our team come from such
diverse backgrounds. We understand the needs of development firms, nonprofit organizations and
other lenders, because we(cid:213)ve been there. The fact that we have all these people from different
backgrounds helps us think out of the box. We have so many different points of view and we(cid:213)re
constantly questioning each other and pushing each other to think of new ways to do things.

(cid:210)It(cid:213)s so natural for us to be open to ideas from the developer community because we are part
of the community. When we leave our offices at night, a lot of us go to nonprofit board meetings,
city commissions, do volunteer work. We see how everything links together. Now that the bank
is much larger, we touch even more areas, and therefore we can influence economies as well as
public policy to improve the environment in which we(cid:213)re lending, and to increase our investment
in communities.(cid:211)

1998 Bank of America Summary Annual Report

each corporate client, responding with

mobilize our capital resources and

innovative solutions and consistently

worldwide network to deliver unmatched

delivering knowledge, creative ideas and

market perspective, transaction experi-

excellence in execution. In short, a

ence and expertise.

banking company with an outstanding

global banking franchise and the best

opportunity to create greater value for

shareholders.

l Middle-market companies realize

similar benefits. Suppose you’re a

medium-sized firm with $50 million in

sales. You appreciate working with a

Major sports teams count on Bank

of America. We serve as agent,

co-agent or sole provider for

Last year’s historic merger gives us

local client manager who fully under-

an unmatched foundation on which to

stands you and your business. But you

build this highly responsive, customer-

also appreciate access to full-service

centered bank of the future. Size and

banking in our 22 franchise states. And

17 National Football League fran-

scale in key businesses allow us to offer

you want access to capital markets. And

chises, six Major League Baseball

customers and clients a wide choice of

transaction speed. What bank are you

franchises, six National Hockey

League franchises and six National

Basketball Association franchises.

products and delivery methods at the

going to use? Or, how many banks must

lowest possible cost. Combined

you use? Finally, the answer is … one.

resources will help us continue develop-

Once all our systems are combined, we

ing the kind of technology customers

can provide you with consistent services

demand. And we bring together the

in each state, leading to unmatched

skills of tens of thousands of the best

simplicity and convenience.

bankers in the United States and

around the globe.

l To our retail customers, an

immediate benefit is coast-to-coast

Bank of America offers many

access to our ATMs and banking

advantages our customers and clients

centers. No competitor can touch us.

just can’t get elsewhere.

But an even greater advantage is our

l Corporate clients benefit from our

client teams consisting of seasoned

industry experts, product specialists and

determination to make all the rest of

banking easier and better than anything

our customers have ever experienced.

investment bankers offering a compre-

One of our most important initiatives,

hensive range of products through

and one that sets us apart from the

offices in 38 countries. Client teams can

Redick Edwards (right) of Business
Banking in Houston with Raymond G.
Sewell in a restaurant just opened
by Sewell(cid:213)s company.

Redick Edwards is a native of Houston and has been with the bank for 26 years.

(cid:210)The purpose of the new Bank of America is to help people realize their dreams. Customers tell
me almost every day that we are helping to turn their dreams into realities. From lines of credit to
treasury management services, we can, and should be, a one-stop shop for our customers.

(cid:210)When I have a doctor who is keeping too high a balance in his checking account, I can call
upon the resources of our investment team to help the customer make the most of their money. It(cid:213)s
reassuring to know there are people, just like me, throughout the company to help meet the
needs of all our customers.

(cid:210)Service is what customers value in their banking relationship. I like to drop in on new
businesses when they come to town to introduce myself and tell them about the ways that we
can help grow their business. Some people may call this approach old-fashioned, but I call it
common sense. We have the ability to deliver customer service like a small-town bank, but we
can call upon the resources of a global company. I don(cid:213)t see how anyone can compete with that.(cid:211)

1998 Bank of America Summary Annual Report

competition, is the development of

When you sit down with your

information systems that connect all

banker, Model Banking’s computer

the different parts of our company.

system, named Merlin, provides on-

The centerpiece of these systems is a

screen calculators which help you and

banking platform for our consumer

your banker make good financial

business called Model Banking.

choices, find the lowest rates and deter-

Here’s the advantage of Model

In 1998, Bank of America provided

Banking: It helps us provide a consis-

more than $60 billion in commercial

real estate financing. This included:

l Homebuilder financing for 50,000

new homes

l Construction financing for 145 million

tent banking experience throughout our

company, from office to office and state

to state, no matter how a customer

chooses to do business with us —

at a banking center, by phone, by

PC or ATM.

square feet of new offices, shopping

The computer network at the heart

centers, apartments and industrial

of Model Banking, now serving more

buildings

l Permanent mortgage financing for

678 commercial properties

l Mortgage-backed securities totaling

$2.6 billion

than half of our retail customers,

gives our bankers a picture of each

customer’s relationship. As we extend

this platform nationwide, the same

information about your accounts with

the bank will appear on a banking

center computer in Los Angeles as on a

mine the best deals. Another click and

the PC helps our bankers determine

what product you are likely to want

next. Merlin also lets you apply for a

loan at home or by telephone, then

close that loan at any Bank of America

office in our franchise.

This technology has raised satisfac-

tion levels among our customers by

making their banking faster and more

productive. It makes it easier to get

things done however you want to — in

person, by phone or electronically. It

gives time back to our customers and

makes life a little less complicated. And

we are constantly making the whole

process better.

call center screen in Wichita. The same

Customers want the same kind of

procedures will be in place in Virginia

service when they bank by telephone.

as in Oregon. The best products will be

Well-trained associates and our call

available from Seattle to Key West.

center technology, which we think is

Every banker will have the same

among the best in the world, help us

extensive sales and service tools at the

meet those expectations. The technology,

touch of a mouse.

Jan Rosenlund (right), Consumer Banking,
with teammate Carol Albo in Seattle.

Jan Rosenlund is a self-professed career banker. She manages the King District in western

Washington, where she is responsible for 35 banking centers.

(cid:210)I(cid:213)ve spent my entire career working one on one with customers, serving customers. That(cid:213)s

what it(cid:213)s all about. You wouldn(cid:213)t be in this business if you didn(cid:213)t feel very strongly about the
clients. They(cid:213)re looking for individualized attention, professional service, someone who cares
and someone who(cid:213)s really focused on them.

(cid:210)It(cid:213)s really fun to provide fabulous service and I think we do that, although not always with the
consistency that we expect. We will always need to work at that. Customer service isn(cid:213)t something
you train for once. It(cid:213)s an ongoing, minute-by-minute, day-by-day investment. That, like our
associates, is how we differentiate ourselves, how we earn the loyalty of our clients.

(cid:210)Whatever national bank we compete against may have similar products and technology,
but I hope they never have my associates. I truly believe we have the most talented group of
professionals working for us. They(cid:213)re dedicated and they are absolutely driven to take care of
their customers. They see themselves as advocates for their customers.(cid:211)

1998 Bank of America Summary Annual Report

which links call centers to the Model

two prominent examples.

Banking platform, will be expanded

nationwide as well.

Listening is still another way we’ve

responded. We are constantly asking

Similar investments give us the

customers to evaluate processes that

ability to stay in the forefront of such

affect their banking experience. Then

fast-growing operations as Internet

we act decisively on what they say.

banking, electronic payments and many

Customer input has led to a number of

other key programs that provide cus-

changes our customers appreciate. For

tomers with greater speed, accuracy

example, we cut decision time for some

and options. The result, as we build out

business loans from days to hours.

Our telephone banking call centers

expect to handle more than 500

this technology across the country, will

be a nationwide, world-connected bank

developed to the specifications of our

clients, customers and associates. And

we are making technology flexible, so

million customer calls in 1999.

we can change quickly as customer

preferences and markets change. This

saves dollars and time.

Bank of America is redefining

banking on many other fronts. A major

example is how people today wish to

manage their money. Increasingly, our

customers and potential customers are

moving away from deposits and toward

investments, and we have responded by

building one of the nation’s largest and

most comprehensive asset management

businesses. People also are becoming

We also are preparing our associates

for the challenges ahead. To help our

bankers better understand our

customers, our markets and the

competition, we have undertaken a

coast-to-coast education program

involving nearly all of our associates.

These kinds of efforts make a differ-

ence to our customers and our share-

holders. They directly affect the quality

of customer and client relationships

and the billions of transactions they do

with us every year. They produce the

actions and attitudes that determine

whether our customers are satisfied . . .

and how much business they choose to

do with us.

more and more pushed by time, so we

The geographic reach and the

have answered by expanding the ways

resources of Bank of America may be

people can do business with us.

Telephone and Internet banking are

Sandy Copney (right), Telephone Banking,
with Spanish consumer banker Gisel
Cort(cid:142)s in Tampa.

Sandy Copney is customer service manager at a 1,200-associate call center in Tampa. The
center is equipped with one of the world(cid:213)s most advanced telephone and computer response
systems.

(cid:210)You can sell till you(cid:213)re blue in the face, but if you aren(cid:213)t backing up your sales with the highest

quality service your company will fail. And the highest service is what the customer expects, not
what we as a business think we ought to give them.

(cid:210)Customers using telephones to do their banking don(cid:213)t have a lot of time to waste, want
accurate information, want it quickly, and want it handled in a professional and polite manner.
That(cid:213)s what we give them.

(cid:210)The direct banking system we have here is a wonderful resource for customers and a
wonderful tool for us. I can call and find out what my balances are, what my last deposits were,
what my last withdrawals were. I can transfer money from one account to another. I can get copies
of my statements. There(cid:213)s almost nothing I can(cid:213)t do over the phone other than get cash. As soon
as an associate answers a call, she has the customer information in front of her, so right away she
can start talking knowledgeably. Now, this makes me, Mrs. Customer, feel like this banker really
knows me.(cid:211)

1998 Bank of America Summary Annual Report

unmatchable. We hold leading positions

our income. Finally, our private

in the largest, fastest growing markets

banking, trust, money management and

throughout the United States, from

principal investing businesses account

California to Florida. This large and

for more than 10 percent of our income.

diverse franchise makes banking easier

for businesses and individuals.

To further diversify risk, Bank of

America continues to diversify its

Bank of America is a market leader

revenue stream — complementing the

in 9 of the 10 states expected to have

deposit and lending base by increasing

the highest population growth over the

income from value-added fee-based

next five years. These 10 states are

services our customers want.

expected to account for more than

70 percent of U.S. growth over the

next five years.

Ask anyone caught in an economic

downturn about risk diversification and

they’ll tell you: put your eggs in many

As the statistics demonstrate, Bank

baskets, not just in oil … or textiles …

of America is one of the most diversi-

or tourism … or mortgages … or just

fied banking companies in the nation,

one or two states or regions of the

and diversification is one of the princi-

world … because market cycles are

At the end of 1998, more than

one million of our customers were

banking online via the Internet,

America Online or personal

financial management software,

up 75 percent from year-end 1997.

pal reasons that creating larger banks

inevitable and they hurt if you aren’t

makes sense. Bank of America has geo-

diversified.

graphic diversity, product diversity, and

revenue and income diversity. These

broad enterprises and markets enable us

to achieve another important kind of

diversity: diversity of risk.

Bank of America, on the other hand,

holds the promise of more stable revenue

and earnings (benefiting customers,

shareholders, communities) by

spreading risk across many states,

Our company operates a retail fran-

many customers, many lines of business,

chise that spans 22 states and the

funding, credit portfolios and other

District of Columbia. This franchise

factors.

accounts for about half of our income.

We have commercial banking through-

out the nation and corporate banking

around the world. These businesses

account for approximately 35 percent of

The American appetite for invest-

ment services continues to grow, and

we are meeting customer demand

Jesse Cureton (right), mortgage banker,
and Robert Farmer, Mulvaney Homes, in
Charlotte.

Jesse Cureton manages the University City Mortgage office in Charlotte.

(cid:210)What you(cid:213)ll hear a lot of around here is customer experience and customer service. I can sit
down with a customer and provide great mortgage products but the overall customer experience is
what is ultimately important. And that starts with me. I can be efficient and positive on the front
end but we have to constantly look for ways to make it better all along the line.

(cid:210)What do I tell my people? Do what we say we(cid:213)re going to do. Set proper expectations. In this
industry, that is the most important thing we can do. If we say we(cid:213)re going to do it Friday and we
can deliver it on Wednesday, we(cid:213)ve gone over and above. But let(cid:213)s not say we are going to do it
Friday and not deliver until the following Friday. Set proper expectations and then exceed them.

(cid:210)I also tell them that all of the associates of the new Bank of America are sales people. Every

one of us should be as committed to our customers as we are to watching our stock price on a
daily basis. From that I mean that all two hundred thousand of us need to sell this company and
the service that we provide. Can you imagine what would happen if we took all of us and we hit a
switch and we all became sales people for this company.(cid:211)

1998 Bank of America Summary Annual Report

through our comprehensive wealth

We coordinate all aspects of our

management business. No matter what

clients’ finances. Products and services

kind of investment expertise a customer

are focused on building wealth through

needs, we can provide it. We have been

customized investment management,

preparing for this market change for

transferring wealth through estate plan-

a number of years, building a strong

ning and personal trust services, and

mutual fund and brokerage operation

leveraging wealth by providing credit

to earn the right to serve our customer’s

for asset purchases and liquidity needs.

The U.S. Postal Service has been

working to consolidate its banking

investment needs.

relationships nationwide for

deposit collections and other cash

Customers of all sizes invest in our

standardized or personalized solutions.

mutual funds, making our fund complex

Many solutions are fully customized.

Clients receive more than just

management services. While both

one of the largest bank-advised fund

We routinely save clients and their

Bank of America and NationsBank

had significant relationships with

the Postal Service before the

merger, our company(cid:213)s broader

families, with about $60 billion in assets.

families millions of dollars by develop-

Among all mutual fund complexes ours

ing strategies that combine new ideas

ranks among the top 25. Our retail

about minimizing taxes with investing,

brokerage business provides customers

borrowing and trust services. Our

with easy access to a full range of

cutting-edge thinking has surprised

ability to handle a significant

investment expertise, whether they need

and delighted clients, their law firms

portion of the Postal Service(cid:213)s

business nationwide makes us

an even more efficient partner.

financial advice and planning or conve-

and their accountants.

nient execution of an investment trade.

Our wealth management business

Our private bank serves clients

serves more than just individuals.

through more than 100 offices in the

Through four wholly owned investment

U.S. and a number of other countries.

advisers we provide creative investment

solutions for corporations, public

entities, pension plans, endowments and

foundations. Our clients’ investment

needs are met through a wide selection

of equity, fixed income and cash

management services.

Our success comes from offering

clients solutions they do not get any-

where else. We take time to understand

each client’s entire financial picture and

respond with new and creative ideas on

a regular basis. It’s one of the reasons

our average client has been with us

more than a decade. Some families have

been with us for generations.

Carolyn Tabb (right), Professional and
Executive Banking, with attorney
Carol Lynn Calomiri.

Carolyn Tabb, Bethesda, Maryland, provides personal banking services for doctors, attorneys

and corporate executives in Washington, D.C., and its suburbs.

(cid:210)I probably get about 60 phone calls a day from my customers, and my customer service

philosophy is simple. If I(cid:213)m not available when they call, I(cid:213)ll call back as soon as possible.
My customers are very busy people who often don(cid:213)t have the time to manage their money
closely. They trust me to provide them with the products and services that make sense for
them. And they demand and deserve excellent customer service.

(cid:210)In recent years there has been a dramatic change in the way people bank. Customers are

more knowledgeable about managing their finances and earning more on their money. Our
company has worked hard to stay out front with products and services that meet and often exceed
customers(cid:213) expectations. This is my biggest challenge—keeping up with all of the new products
and knowing which products make the most sense for my customers. Everyone I work with
throughout the bank is committed to making banking easier for our customers. By being
flexible and innovative there really isn(cid:213)t any product or service we can(cid:213)t provide.(cid:211)

1998 Bank of America Summary Annual Report

Our predecessor corporate and invest-

is a global reach that many corporations

ment banking organizations could not

require from their financial provider.

be a more perfect fit for our clients.

We not only offer these products and

We do business with 80 percent of the

services, we are a recognized market

Fortune Global 500. Our global

leader in delivering many of them.

network includes countries representing

more than 90 percent of the world’s

gross domestic product. We serve clients

in 190 countries. By many measures, we

are the preferred financial provider to a

majority of the corporate market.

For example, as a result of the

merger we are now number one in loan

syndications based on dollar volume or

number of deals. We are one of the

world’s leading international treasury

services banks with a global banking

Our client managers are selected for

system that is euro-ready. Our real

their ability to identify and deliver

estate finance business generates nearly

creative financial solutions to financial

$1 billion in revenues a year. We are a

The combined capabilities of our

predecessor organizations enabled

Bank of America to arrange a

$350-million financing for

MacDermid, a New England chemi-

opportunities. Each relationship has a

leader in commercial mortgage-backed

cal company, building a strong new

dedicated client team whose mandate is

securities and residential construction

relationship with the company.

to craft innovative ideas and solutions

loans. We are one of the top-ranked

to meet that client’s evolving needs.

U.S. investment banks in equity

Client managers are highly skilled,

underwriting.

experienced professionals who are

trained to understand each client’s

business and financial objectives in

order to provide the most appropriate

financial solution — from investment

banking to traditional commercial

lending products.

Our combined capital base helps us

be more flexible for our clients when

market conditions change, as they did

in mid-1998. With this enhanced capital

strength we can continue to stand

behind our clients, enabling them to

move forward with projects until

Our product breadth is another clear

markets rebound. Few commercial or

competitive advantage. We are one of

investment banks can offer the global

the few U.S.-based banks that can offer

expertise, capital resources and client-

clients a complete range of financial

focused commitment we deliver.

services from capital raising and capital

markets, treasury and trade finance, to

investment banking and financial

advisory services. Complementing this

Andrew Dewing (right), Global Corporate &
Investment Banking, with Richard James of
Cookson Group, PLC, in London.

Andrew Dewing heads the United Kingdom multinational group based in London. He is
responsible for a team of five relationship managers who work directly with major multinational
corporate clients headquartered in the United Kingdom.

(cid:210)We succeed in corporate banking in Europe, as we do everywhere else, because of the depth

of the banking relationships we establish with our clients. We work hard to understand our
corporate clients(cid:213) needs to ensure we can effectively advise them on financial matters. Because
we understand their business, we can bring product specialists from throughout the bank to our
team to help solve our clients(cid:213) problems and achieve their business goals.

(cid:210)In 1998, for example, we arranged and executed a multi-source financing plan for one of our
UK companies to reduce their financing costs, extend the maturity of their debt, and cut expense
and management time by dealing with one institution for their fund needs. In looking at their
requirements over the next three to five years, we were able to show them that market conditions
were ripe to refinance their existing loan agreement. We won this business because we developed
a relationship with the client that is built on trust and the ability to deliver. A lot of banks can offer
the same services, but there is no substitute for a strong personal relationship. I am a strong
believer in client managers building and developing relationships over time.(cid:211)

1998 Bank of America Summary Annual Report

No bank serves more mid-sized

shareholder value and achieve their

companies (annual revenues from

personal goals.

$10 million to $500 million) than we do:

approximately 35,000 coast-to-coast,

many concentrated in the large, fast-

growing metropolitan areas where the

new Bank of America is so active.

Bank of America also has the

resources to provide unmatched

international services to middle market

companies which, in today’s world, are

more and more dependent on a world

Our commercial banking organiza-

economy… a textile company buying

tion places more than 1,400 profession-

knitting equipment from an Italian

als in the market. Our associates (like

manufacturer … a temporary services

thousands of others throughout our

company expanding into Latin America

Our corporate bankers and invest-

ment bankers worked together to

advise Hercules, a Delaware

specialty chemicals company, on a

$3.65-billion financing during a

company) live and work where their

… a computer technology company

difficult market to help the

company complete its purchase of

clients live and work. They have sub-

selling a component to a European

stantial authority to make decisions.

manufacturer. We are there when

BetzDearborn and fulfill its

Lending and treasury management

strategic objectives. As a result of

its outstanding performance,

Bank of America has become

services have long been — and remain

— the heartbeat of commercial

banking. But today’s clients want much

Indeed, that is our goal for all of our

more. They also want access to capital

customers, businesses and individuals:

business needs us, and we are among

a relatively few banks that can accom-

modate all their needs.

Hercules(cid:213) lead relationship bank.

raising and all the special services we

to be the most capable and most

can make available through our

responsive banking company this

unparalleled breadth of capabilities.

country has ever seen.

In response, we have created a new

We approach the 21st century with

investment banking team dedicated

the scale and reach that our clients and

exclusively to commercial clients. We

customers want. We bring with us the

collaborate with our client to explore

people and the technology to create new

alternate capital sources and the

possibilities and new solutions. And we

hedging of interest rate risk. This new

have the willpower and confidence to

team underscores our commitment to

make the journey.

helping business owners maximize their

Nan Hillis, Commercial Banking, with Gary
Byrd of Pratt Industries (U.S.A.), Inc., a
recycled paper mill in Conyers, Georgia.

Nan Hillis is manager of a Financial Strategies group for Commercial Banking in Atlanta.

(cid:210)Leadership team members, including the client managers and me, concentrate on becoming

partners with our clients. One of our major goals is to get close enough to become part of each
client(cid:213)s financial solution team.

(cid:210)Earlier this year, we restructured our group to include a specialist who is responsible for the
underwriting, negotiation and administration of our core product, credit. This change allows our
client managers to focus on other services our clients want, such as deposit services, treasury
management, debt other than senior debt, and private banking.

(cid:210)As an international city, we have a number of clients who have international needs. The new

Bank of America has delighted many of our customers, who had split their financial services
relationships to obtain West Coast presence and more international capacity. These clients are
delighted they can work with one team for the services they need.

(cid:210)Our relationship with NationsBanc Montgomery Securities is an exciting melding of abilities.
We can now provide most services our clients need. This partnership should be difficult to beat.(cid:211)

Products and services we provide

Consumers

Products and services are delivered
through 4,700 banking centers and 14,000
ATMs, which serve 30 million households in
22 states, the District of Columbia and
Hong Kong, plus through telephone and
personal computers.

Deposit Products. Checking, money
market, savings accounts, time deposits,
IRAs.

Small and middle-market
businesses

Services delivered to small businesses

through 4,700 banking centers and
14,000 ATMs, which serve 2 million small
businesses in 22 states and the District of
Columbia; through telephone and personal
computers; and through commercial
banking offices which serve middle
market businesses with sales of up to
$500 million.

Consumer Finance. Home equity,

personal, auto and student loans and auto
leasing.

Deposit Products. Treasury and cash
management services, checking, savings,
money market deposit accounts, IRAs.

Mortgage Banking. Home loans for

one- to four-unit properties.

Card Services. Consumer and
commercial credit cards, check cards,
ATM cards, smart cards (stored value
cards).

Community Investment. Affordable
housing initiatives, economic development
and related consumer lending activities in
underserved communities.

Private Banking. Investment manage-
ment, personal trust, tax and estate plan-
ning, customized lending and banking for
high-net-worth customers.

Brokerage. Full-services and discount
brokerage services which provide access
to a wide range of non-FDIC-insured
investments, including stocks, bonds,
fixed-income securities, and mutual funds.

Insurance Products. Credit-related
insurance products and access to personal
life insurance.

Military Banking. Financial products

and services for U.S. military personnel
worldwide.

Credit Services. Commercial lending,
inventory financing for auto, truck, boat,
manufactured housing and RV dealers,
asset-backed and cash flow lending,
leasing and factoring.

Commercial Finance. Equipment loans

and leases, loans for debt restructuring,
mergers, and working capital, real estate
and health care financing and inventory
financing to manufacturers, distributors,
and dealers.

Community Investment. Conventional
and government-assisted loans, as well as
investments in small business investment
corporations, minority business venture
capital funds and other products.

Private Banking. Investment manage-

ment, personal trust, tax and estate
planning, customized lending and
banking for private businesses.

Brokerage. Full-services and discount
brokerage services which provide access
to a wide range of non-FDIC-insured
investments, including stocks, bonds,
fixed-income securities, and mutual funds.

Domestic and international
corporations, financial institutions,
and government entities

Clients supported through offices in
37 countries in four distinct geographic
regions: the U.S. and Canada; Asia; Europe,
Middle East and Africa; and Latin
America. We deliver specialized industry
expertise to the following sectors: aerospace
and defense, apparel, automotive and trans-
portation, business services, communications,
construction and engineering, consumer
products and services, entertainment and
media, financial services, food and agribusi-
ness, healthcare and pharmaceuticals,
natural resources (chemicals, energy, paper
and forest products, utilities), real estate,
retail, sports, and technology.

Equity and Advisory. Public and

private equity, research, sales and trading,
derivatives, institutional brokerage
(including prime brokerage and
correspondent clearing services),
mergers and acquisitions advisory.

Debt Products. Corporate lending,

syndicated finance, crossover and
investment-grade fixed-income products
and services, commercial paper, global
asset securitization, global project finance,
leasing, private placements.

Debt Sales and Trading. Sales, trading
and research for high-grade and high-yield
fixed income and floating-rate products,
syndications, mortgage-backed securities,
distressed debt.

Global Markets. Global foreign
exchange, global derivative products,
municipal and government securities,
emerging markets trading, global
markets/financial research.

Global Treasury. Global cash
management (receipts, payments, and
treasury management), U.S. interstate
depository network, internet-based
solutions and EDI, global trade services.

Real Estate. Originating, structuring,
and underwriting services for real estate
companies, investors, funds, home builders.

Principal Investing. Direct and indirect

equity investments in a broad array of
industries.

Institutional Investment Management.

Investment advisory and management
services for institutional clients.

Report of independent accountants

To the Board of Directors and Shareholders of BankAmerica Corporation

We have audited, in accordance with generally accepted auditing standards, the consolidated

financial statements of BankAmerica Corporation and its subsidiaries as of December 31, 1998 and

1997 and for each of the three years in the period ended December 31, 1998 (which statements are not

presented herein); and in our report dated January 15, 1999 we expressed an unqualified opinion on

those consolidated financial statements. In our opinion, the information set forth in the accompanying

condensed consolidated balance sheet at December 31, 1998 and 1997 and the related condensed

consolidated statement of income for each of the three years in the period ended December 31, 1998,

when read in conjunction with the consolidated financial statements from which it has been derived, is

fairly stated in all material respects in relation thereto.

Charlotte, North Carolina

January 15, 1999

Consolidated statement of income

BankAmerica Corporation and Subsidiaries
(Dollars in millions except per-share information)

Interest income

Interest and fees on loans and leases
Interest and dividends on securities
Federal funds sold and securities purchased under agreements to resell
Trading account securities
Other interest income

Total interest income

Interest expense
Deposits
Borrowed funds
Trading account liabilities
Long-term debt

Total interest expense

Net interest income
Provision for credit losses
Net credit income

Gains on sales of securities

Noninterest income

Service charges on deposit accounts
Mortgage servicing and other mortgage-related income
Investment banking income
Trading account profits and fees
Brokerage income
Other nondeposit-related service fees
Asset management and fiduciary service fees
Credit card income
Other income

Total noninterest income

Merger and restructuring items expense, net

Other noninterest expense

Personnel
Occupancy, net
Equipment
Marketing
Professional fees
Amortization of intangibles
Data processing
Telecommunications
Other general operating
General administrative and miscellaneous

Total other noninterest expense

Income before income taxes
Income tax expense
Net income
Net income available to common shareholders
Per-share information (1)

Earnings per common share
Diluted earnings per common share
Dividends per common share

Average common shares issued (in thousands) (1)

1998

28,331
4,502
1,828
2,626
1,301
38,588

10,811
5,239
895
3,345
20,290
18,298
2,920
15,378

1,017

3,396
115
2,009
171
728
652
973
1,448
2,697
12,189

1,795

9,412
1,643
1,404
581
843
902
765
563
2,044
584
18,741
8,048
2,883
5,165
5,140

2.97
2.90
1.59
1,732,057

$
$

$
$
$

Year ended December 31
1997

$
$

$
$
$

29,085
3,283
1,516
2,582
867
37,333

10,684
4,105
975
3,137
18,901
18,432
1,904
16,528

271

3,373
401
1,476
976
355
680
990
1,231
2,274
11,756

374

8,703
1,576
1,408
655
763
855
626
491
2,059
489
17,625
10,556
4,014
6,542
6,431

3.71
3.61
1.37
1,733,194

1996

26,439
2,797
1,371
2,229
800
33,636

9,600
3,699
880
2,503
16,682
16,954
1,645
15,309

147

2,822
340
1,028
885
259
520
744
899
2,107
9,604

398

7,501
1,476
1,229
589
634
544
551
413
1,998
416
15,351
9,311
3,498
5,813
5,611

3.42
3.36
1.20
1,638,382

$
$

$
$
$

(1) Share and per-share data reflect a 2-for-1 stock split on February 27, 1997.

Refer to the BankAmerica 1998 Annual Report on Form 10-K for a complete set of consolidated financial statements.

Consolidated balance sheet

BankAmerica Corporation and Subsidiaries
(Dollars in millions)

Assets

Cash and cash equivalents
Time deposits placed and other short-term investments
Securities

Held for investment, at cost (market value $1,853 and $4,905)
Available for sale
Total securities

Federal funds sold and securities purchased under agreements to resell
Trading account assets

Loans and leases
Allowance for credit losses

Loans and leases, net of allowance for credit losses

Premises and equipment, net
Customers’ acceptance liability
Interest receivable
Unrealized gains on off-balance sheet instruments
Mortgage servicing rights
Goodwill
Core deposits and other intangibles
Other assets

Total assets

Liabilities

Deposits in domestic offices

Interest-bearing
Noninterest-bearing
Deposits in foreign offices
Interest-bearing
Noninterest-bearing
Total deposits

Federal funds purchased and securities sold under agreements to repurchase
Trading account liabilities
Commercial paper
Other short-term borrowings
Acceptances outstanding
Unrealized losses on off-balance sheet instruments
Accrued expenses and other liabilities
Trust preferred securities
Long-term debt

Total liabilities

Shareholders’ equity

Preferred stock: authorized - 100,000,000 shares; issued and

outstanding - 1,952,039 and 10,933,884 shares

Common stock: authorized - 5,000,000,000 shares; issued and
outstanding - 1,724,484,305 and 1,722,537,672 shares (1)

Retained earnings
Accumulated other comprehensive income
Other

Total shareholders’ equity

Total liabilities and shareholders’ equity

1998

$ 28,277
6,750

1,997
78,590
80,587
27,146
39,602

357,328
(7,122)
350,206
7,289
2,671
3,734
16,400
2,376
12,695
2,013
37,933
$617,679

$203,644
92,623

59,280
1,713
357,260
67,543
14,170
6,749
24,742
2,671
16,835
30,929
4,954
45,888
571,741

December 31

1997

$ 28,466
8,363

4,822
62,209
67,031
20,200
35,937

342,140
(6,778)
335,362
8,123
4,891
3,584
14,824
2,040
13,551
2,203
26,408
$570,983

$202,082
85,815

56,719
1,681
346,297
61,414
17,300
5,925
12,120
4,893
13,639
17,346
4,578
42,887
526,399

708

14,837
30,998
152
(132)
45,938
$617,679

15,140
28,438
407
(109)
44,584
$570,983

(1) Shares reflect a 2-for-1 stock split on February 27, 1997.

Refer to the BankAmerica 1998 Annual Report on Form 10-K for a complete set of consolidated financial statements.

Principal Officers

Board of Directors

Hugh L. McColl Jr.
Chairman and
Chief Executive Officer

James H. Hance Jr.
Vice Chairman and
Chief Financial Officer

Kenneth D. Lewis
President, Consumer &
Commercial Banking

Michael J. Murray
President, Global Corporate &
Investment Banking

Michael E. O’Neill
President, Principal Investing &
Wealth Management

F. William Vandiver Jr.
Corporate Risk Management
Executive

Richard M. Rosenberg
Retired Chairman and
Chief Executive Officer
BankAmerica Corporation
San Francisco, California

O. Temple Sloan Jr.
Chairman
General Parts Inc.
Raleigh, North Carolina

Meredith R. Spangler
Trustee and Board Member
Charlotte, North Carolina

A. Michael Spence
Dean of the Graduate School
of Business
Stanford University
Stanford, California

Ronald Townsend
Communications Consultant
Jacksonville, Florida

Solomon D. Trujillo
President and
Chief Executive Officer
U S WEST
Denver, Colorado

Jackie M. Ward
President and
Chief Executive Officer
Computer Generation Incorporated
Atlanta, Georgia

Virgil R. Williams
Chairman and
Chief Executive Officer
Williams Group International, Inc.
Stone Mountain, Georgia

Shirley Young
Vice President
General Motors Corporation
Detroit, Michigan

Charles W. Coker
Chairman
Sonoco Products Company
Hartsville, South Carolina

Timm F. Crull
Retired Chairman
Nestle USA, Inc.
Newport Beach, California

Alan T. Dickson
Chairman
Ruddick Corporation
Charlotte, North Carolina

Kathleen Feldstein
President
Economic Studies Inc.
Belmont, Massachusetts

Paul Fulton
Chairman and
Chief Executive Officer
Bassett Furniture Industries Inc.
Winston-Salem, North Carolina

Donald E. Guinn
Chairman Emeritus
Pacific Telesis Group
San Francisco, California

C. Ray Holman
Chairman and
Chief Executive Officer
Mallinckrodt Inc.
St. Louis, Missouri

W. W. Johnson
Chairman of the
Executive Committee
BankAmerica Corporation
Charlotte, North Carolina

Walter E. Massey
President
Morehouse College
Atlanta, Georgia

Hugh L. McColl Jr.
Chairman and
Chief Executive Officer
BankAmerica Corporation
Charlotte, North Carolina

Corporate information

Shareholders

The Corporation provides its share-

Customers

BankAmerica Corporation (the

holders electronic direct deposit of divi-

Customers seeking assistance with

Corporation) common stock is listed on

dends. Dividend payments may be sent

NationsBank products and services

the New York Stock Exchange and the

electronically to a designated financial

should call (800) 299-2265. Customers

Pacific Stock Exchange under the sym-

institution and credited to the share-

seeking assistance with Bank of

bol BAC. The Corporation’s common

holder’s account on the dividend pay-

America products and services should

stock is also listed on the London Stock

ment date. Shareholders interested in

call (800) 521-2632.

Exchange, and certain shares are listed

additional information on this service

Information on Bank of America’s

on the Tokyo Stock Exchange. The

should call Shareholder Services at

products and services can be found on

stock is typically listed as BankAm in

(800) 642-9855.

newspapers.

The Corporation’s annual meeting of

shareholders will be held at 11:00 a.m.

on Wednesday, April 28, 1999, at the

North Carolina Blumenthal Performing

Arts Center, 130 North Tryon Street,

Charlotte, North Carolina.

Shareholders seeking general

information regarding the Corporation’s

stock should contact Jane Smith,

manager of shareholder relations, at

(800) 521-3984.

The Corporation offers a stock pur-

chase and dividend reinvestment plan.

For information and a prospectus on

this plan, please call our plan adminis-

trator, ChaseMellon Shareholder

Services, at (800) 642-9855.

Bank of America’s web sites at

www.bankofamerica.com and

www.nationsbank.com.

News media

News media representatives seeking

information should contact Richard

Analysts, portfolio managers, and

Stilley, director of public relations, at

other investors seeking additional infor-

(704) 386-8135.

mation about the Corporation should

News releases and other material

contact Susan Carr, investor relations

of particular value to the news media

executive, at (704) 386-8059, or Kevin

are available through Bank of

Stitt, director of investor relations,

America’s corporate web site at

For shareholder inquiries concerning

at (704) 386-5667.

www.bankofamerica.com.

dividend checks, dividend reinvestment,

electronic deposit of dividends, tax

information, transferring ownership,

address changes or lost or stolen stock

certificates, please contact ChaseMellon

Shareholder Services L.L.C., P.O. Box

590, Ridgefield Park NJ 07660, phone

(800) 642-9855. ChaseMellon’s web site

is www.cmssonline.com.

Starting in April 1999, visit Bank

of America’s new corporate web site at

www.bankofamerica.com for up-to-date

investor information, news, and

other material of interest to the

Corporation’s shareholders.

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