Nonperforming assets include nonperforming commercial loans, other real estate owned and consumer loans that are 90 days past due. This increase reflected the continued deterioration in the commercial loan portfolio, with areas of weakness including health care and certain acquisition finance transactions. The allowance for credit losses is an estimate of inherent losses in the loan portfolio at a point of time. Overall credit quality trends continued to perform as expected, reflecting the broad-based diversification of the portfolio. Nevertheless, further increases in nonperforming assets and net charge-offs could occur, which could result in the need to further build the allowance for loan losses.
Capital ratios remain very strong and exceed well-capitalized regulatory guidelines.
Bank One offers a full range of financial services to large corporate and middle market commercial customers and retail consumers. It is the largest VISA credit card issuer, the third largest bank lender to small businesses and one of the top 25 managers of mutual funds. A leader in the retail market, Bank One operates more than 1,800 banking centers and a nationwide network of ATMs. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words believe, expect, anticipate, intend, plan, estimate or words of similar meaning, or future or conditional verbs such as will, would, should, could or may.