Bank of America Corporation (NYSE: BAC, TYO: 8648) is an American global financial services company, the largest bank holding company in the United States, by assets, and the second largest bank by market capitalization.Bank of America serves clients in more than 150 countries and has a relationship with 99% of the U.S. Fortune 500 companies and 83% of the Fortune Global 500. The company is a member of the Federal Deposit Insurance Corporation (FDIC) and a component of both the S&P 500 Index and the Dow Jones Industrial Average.
As of 2010, Bank of America is the 5th largest company in the United States by total revenue,[10] as well as the second largest non-oil company in the U.S. (after Wal-Mart). In 2010, Forbes listed Bank of America as the 3rd "best" large company in the world.
The bank's 2008 acquisition of Merrill Lynch made Bank of America the world's largest wealth manager and a major player in the investment banking industry.
The company holds 12.2% of all U.S. deposits, as of August 2009,and is one of the Big Four banks of the United States, along with Citigroup, JPMorgan Chase and Wells Fargo—its main competitors. According to its 2010 annual report, Bank of America operates "in all 50 states, the District of Columbia and more than 40 non-U.S. countries." It has a "retail banking footprint" that "covers approximately 80 percent of the U.S. population and in the U.S." it serves "approximately 57 million consumer and small business relationships" at "5,900 banking centers" and "18,000 ATMs
Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company. Bank of America is a financial institution, serving individual consumers, small and middle market businesses, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various non-banking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and non-banking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets (GBAM) and Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other. On January 1, 2010, it realigned the Global Corporate and Investment Banking portion of the former Global Banking business segment with the former Global Markets business segment to form GBAM and to reflect Global Commercial Banking, as a standalone segment. In April 2011, the Company merged its corporate and investment banking divisions.
Deposits
Deposits segment includes the results of consumer deposit activities, which consist of a range of products provided to consumers and small businesses. In addition, Deposits includes an allocation of asset liability management (ALM) activities. In the United States, it serves approximately 57 million consumer and small business relationships through a franchise that stretches coast to coast through 32 states and the District of Columbia utilizing its network of approximately 5,900 banking centers, 18,000 automated teller machines (ATMs), nationwide call centers and online and mobile banking platforms.
The Company’s deposit products include traditional savings accounts, money market savings accounts, certificate of deposits (CDs) and retirement accounts (IRAs), and non-interest and interest-bearing checking accounts. Deposit products provide a relatively stable source of funding and liquidity. It earns net interest spread revenue from investing this liquidity in earning assets through client-facing lending and ALM activities. Deposits also generate fees, such as account service fees, non-sufficient funds fees, overdraft charges and ATM fees. Deposits include the net impact of migrating customers and their related deposit balances between GWIM and Deposits.
Global Card Services
Bank of America’s Global Card Services provides an offering of products, including United States consumer and business card, consumer lending, international card and debit card to consumers and small businesses. The Company provides credit card products to customers in the United States, Canada, Ireland, Spain and the United Kingdom. It offers a variety of co-branded and affinity credit and debit card products and are one of the leading issuers of credit cards through endorsed marketing in the United States and Europe.
Home Loans & Insurance
Home Loans & Insurance generates revenue by providing a line of consumer real estate products and services to customers nationwide. Home Loans & Insurance products are available to its customers through a retail network of 5,900 banking centers, mortgage loan officers in approximately 750 locations and a sales force offering its customers direct telephone and online access to its products. These products are also offered through its correspondent loan acquisition channels. On February 4, 2011, the Company announced that it is exiting the reverse mortgage origination business. In October 2010, it exited the first mortgage wholesale acquisition channel.
Home Loans & Insurance products include fixed and adjustable-rate first-lien mortgage loans for home purchase and refinancing needs, reverse mortgages, home equity lines of credit and home equity loans. First mortgage products are either sold into the secondary mortgage market to investors, while retaining mortgage servicing rights (MSRs) and the Bank of America customer relationships, or are held on its balance sheet in All Other for ALM purposes.
Global Commercial Banking
Global Commercial Banking provides a range of lending related products and services, integrated working capital management and treasury solutions to clients’ through its network of offices and client relationship teams along with various product partners. The Company’s clients include business banking and middle market companies, commercial real estate firms and governments. Its lending products and services include commercial loans and commitment facilities, real estate lending, asset-based lending and indirect consumer loans. Its capital management and treasury solutions include treasury management, foreign exchange and short-term investing options.
Global Banking & Markets (GBAM)
GBAM provides financial products, advisory services, financing, securities clearing, settlement and custody services globally to its institutional investor clients in support of their investing and trading activities. The Company also works with its commercial and corporate clients to provide debt and equity underwriting and distribution capabilities, merger-related and other advisory services, and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income and mortgage-related products. GBAM is a global distribution of fixed-income, currency and energy commodity products and derivatives. GBAM also has equity trading operations in the world and equity-related products.
Global Wealth & Investment Management (GWIM)
GWIM consists of three primary businesses: Merrill Lynch Global Wealth Management (MLGWM), United States Trust, Bank of America Private Wealth Management (United States Trust) and Retirement Services. MLGWM’s advisory business provides a client experience through a network of approximately 15,500 financial advisors focused on clients with more than $250,000 in total investable assets. MLGWM also includes Merrill Edge, a new integrated investing and banking service. Merrill Edge provides team-based investment advice and guidance, brokerage services, a self-directed online investing platform and key banking capabilities, including access to the Corporation’s branch network and ATMs. In addition, MLGWM includes the Private Banking & Investments Group.
United States Trust, together with MLGWM’s Private Banking & Investments Group, provides wealth management solutions for wealthy and ultra-wealthy clients with investable assets, as well as customized solutions to meet clients’ wealth structuring, investment management, trust and banking needs, including specialty asset management services. Retirement Services partners with financial advisors to provide institutional and personal retirement solutions, including investment management, administration, recordkeeping and custodial services for 401(k), pension, profit-sharing, equity award and non-qualified deferred compensation plans. Retirement Services also provides investment advisory services to individuals, small to large corporations and pension plans.
All Other
All Other consists of two groupings, Equity Investments and Other. Equity Investments includes Corporate Investments, Global Principal Investments and Strategic Investments. Other include liquidating businesses, merger and restructuring charges, ALM functions (which include residential mortgage portfolio and investment securities) and related activities (which include economic hedges, fair value option on structured liabilities), and the impact of certain allocation methodologies.
After nine months of preparation, the merger of BankAmerica Corp. and Security Pacific Corp. became final on April 22, 1992. The merger was part of a national trend of bank consolidation that sought to strengthen troubled and even healthy institutions. For BankAmerica, the merger offered an opportunity to become more efficient and save money--an estimated $1.2 billion annually within the next three years. The merger also helped the bank expand into new markets and geographic locations. By the end of 1992, consumer banking services were provided in ten western states, trust and consumer financial services were provided nationwide, and commercial and corporate banking operations were located in 35 countries worldwide.
Acquisition activity continued with the purchase of Sunbelt Federal Savings, which held 111 branches in 76 cities in Texas; HonFed, the largest thrift in Hawaii; and Valley Bank of Nevada, which made BankAmerica the largest depository institution in that state. However, the persistent national recession, combined with a recession in the state of California, caused a decline in earnings reported for 1992.
Domestic expansion continued in 1993 with the acquisition of First Gibraltar of Texas and with an agreement to make a $1 million equity investment in Founders National Bank, the only African-American-owned bank on the West Coast. Additional overseas expansion occurred when BankAmerica received approval from the People's Bank of China to upgrade its Guangzhou representative office into a full-service branch, the first U.S. bank to have such a branch. Consolidation of consumer and commercial finance units was undertaken, and one year after the merger, the bank had consumer operations in much of the United States, wholesale offices in 37 nations, retail branches in ten western states, and consumer finance company operations in 43 states.
As BankAmerica moved into the mid-1990s, it planned to continue many of the policies it had begun in the 1980s. They included the development of new products and services for consumers; geographic diversification into such fast-growing economies as Asia and Latin America, which would enable the bank to better withstand the economic cycles of the domestic market; community investments; environmental programs; and loans to students and those with low income. BankAmerica also continued to hope for changes in laws and regulations that would allow interstate banking and more effective competition with non-bank institutions providing similar financial services. Such legislation would create new markets for which BankAmerica was poised to serve.
Principal Subsidiaries: Bank of America NT&SA; Bank of America Alaska, N.A.; Bank of America Arizona; Bank of America FSB; Bank of America Idaho, N.A.; Bank of America Nevada; Bank of America New Mexico, N.A.; Bank of America Oregon; Bank of America Texas, N.A.; Seafirst Corp. Seattle-First National Bank.
OVERALL
Beta: 2.19
Market Cap (Mil.): $124,287.80
Shares Outstanding (Mil.): 10,121.15
Annual Dividend: 0.04
Yield (%): 0.33
FINANCIALS
BAC.N Industry Sector
P/E (TTM): -- 14.68 24.82
EPS (TTM): -143.43 -- --
ROI: -- 0.00 4.59
ROE: -2.09 3.34 9.20
Statistics:
Public Company
Incorporated: 1904 as Bank of Italy
Employees: 54,369
Assets: $180.64 billion
Stock Exchanges: New York Pacific Midwest
SICs: 6712 Bank Holding Companies; 6021 National Commercial Banks
Name Age Since Current Position
Holliday, Charles 63 2010 Independent Chairman of the Board
Moynihan, Brian 51 2010 President, Chief Executive Officer, Director
Noski, Charles 58 2010 Chief Financial Officer, Executive Vice President
Desoer, Barbara 58 2010 President - Bank of America Home Loans and Insurance
Price, Joe 50 2010 President - Consumer, Small Business Banking
Montag, Thomas 54 2010 President - Global Banking and Markets
Darnell, David 58 2010 President - Global Commercial Banking
Krawcheck, Sallie 46 2009 President - Global Wealth and Investment Management
O' Keefe, Edward 55 2009 General Counsel
Thompson, Bruce 46 2010 Chief Risk Officer
Laughlin, Terrence 56 2011 Legacy Asset Servicing Executive
Simpson, Paul 2011 Head - Global Treasury Solutions
Gifford, Charles 68 2005 Director
May, Thomas 64 2004 Independent Director
Bramble, Frank 62 2006 Independent Director
Lozano, Monica 54 2006 Independent Director
Rossotti, Charles 70 2009 Independent Director
Colbert, Virgis 71 2009 Independent Director
Bies, Susan 64 2009 Independent Director
Boardman, William 69 2009 Independent Director
Jones, D. Paul 68 2009 Independent Director
Powell, Donald 70 2009 Independent Director
Scully, Robert 61 2009 Independent Director
Ambani, Mukesh 53 2011 Independent Director
Address:
555 California Street
San Francisco, California 94104
U.S.A.
As of 2010, Bank of America is the 5th largest company in the United States by total revenue,[10] as well as the second largest non-oil company in the U.S. (after Wal-Mart). In 2010, Forbes listed Bank of America as the 3rd "best" large company in the world.
The bank's 2008 acquisition of Merrill Lynch made Bank of America the world's largest wealth manager and a major player in the investment banking industry.
The company holds 12.2% of all U.S. deposits, as of August 2009,and is one of the Big Four banks of the United States, along with Citigroup, JPMorgan Chase and Wells Fargo—its main competitors. According to its 2010 annual report, Bank of America operates "in all 50 states, the District of Columbia and more than 40 non-U.S. countries." It has a "retail banking footprint" that "covers approximately 80 percent of the U.S. population and in the U.S." it serves "approximately 57 million consumer and small business relationships" at "5,900 banking centers" and "18,000 ATMs
Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company. Bank of America is a financial institution, serving individual consumers, small and middle market businesses, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various non-banking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and non-banking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets (GBAM) and Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other. On January 1, 2010, it realigned the Global Corporate and Investment Banking portion of the former Global Banking business segment with the former Global Markets business segment to form GBAM and to reflect Global Commercial Banking, as a standalone segment. In April 2011, the Company merged its corporate and investment banking divisions.
Deposits
Deposits segment includes the results of consumer deposit activities, which consist of a range of products provided to consumers and small businesses. In addition, Deposits includes an allocation of asset liability management (ALM) activities. In the United States, it serves approximately 57 million consumer and small business relationships through a franchise that stretches coast to coast through 32 states and the District of Columbia utilizing its network of approximately 5,900 banking centers, 18,000 automated teller machines (ATMs), nationwide call centers and online and mobile banking platforms.
The Company’s deposit products include traditional savings accounts, money market savings accounts, certificate of deposits (CDs) and retirement accounts (IRAs), and non-interest and interest-bearing checking accounts. Deposit products provide a relatively stable source of funding and liquidity. It earns net interest spread revenue from investing this liquidity in earning assets through client-facing lending and ALM activities. Deposits also generate fees, such as account service fees, non-sufficient funds fees, overdraft charges and ATM fees. Deposits include the net impact of migrating customers and their related deposit balances between GWIM and Deposits.
Global Card Services
Bank of America’s Global Card Services provides an offering of products, including United States consumer and business card, consumer lending, international card and debit card to consumers and small businesses. The Company provides credit card products to customers in the United States, Canada, Ireland, Spain and the United Kingdom. It offers a variety of co-branded and affinity credit and debit card products and are one of the leading issuers of credit cards through endorsed marketing in the United States and Europe.
Home Loans & Insurance
Home Loans & Insurance generates revenue by providing a line of consumer real estate products and services to customers nationwide. Home Loans & Insurance products are available to its customers through a retail network of 5,900 banking centers, mortgage loan officers in approximately 750 locations and a sales force offering its customers direct telephone and online access to its products. These products are also offered through its correspondent loan acquisition channels. On February 4, 2011, the Company announced that it is exiting the reverse mortgage origination business. In October 2010, it exited the first mortgage wholesale acquisition channel.
Home Loans & Insurance products include fixed and adjustable-rate first-lien mortgage loans for home purchase and refinancing needs, reverse mortgages, home equity lines of credit and home equity loans. First mortgage products are either sold into the secondary mortgage market to investors, while retaining mortgage servicing rights (MSRs) and the Bank of America customer relationships, or are held on its balance sheet in All Other for ALM purposes.
Global Commercial Banking
Global Commercial Banking provides a range of lending related products and services, integrated working capital management and treasury solutions to clients’ through its network of offices and client relationship teams along with various product partners. The Company’s clients include business banking and middle market companies, commercial real estate firms and governments. Its lending products and services include commercial loans and commitment facilities, real estate lending, asset-based lending and indirect consumer loans. Its capital management and treasury solutions include treasury management, foreign exchange and short-term investing options.
Global Banking & Markets (GBAM)
GBAM provides financial products, advisory services, financing, securities clearing, settlement and custody services globally to its institutional investor clients in support of their investing and trading activities. The Company also works with its commercial and corporate clients to provide debt and equity underwriting and distribution capabilities, merger-related and other advisory services, and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income and mortgage-related products. GBAM is a global distribution of fixed-income, currency and energy commodity products and derivatives. GBAM also has equity trading operations in the world and equity-related products.
Global Wealth & Investment Management (GWIM)
GWIM consists of three primary businesses: Merrill Lynch Global Wealth Management (MLGWM), United States Trust, Bank of America Private Wealth Management (United States Trust) and Retirement Services. MLGWM’s advisory business provides a client experience through a network of approximately 15,500 financial advisors focused on clients with more than $250,000 in total investable assets. MLGWM also includes Merrill Edge, a new integrated investing and banking service. Merrill Edge provides team-based investment advice and guidance, brokerage services, a self-directed online investing platform and key banking capabilities, including access to the Corporation’s branch network and ATMs. In addition, MLGWM includes the Private Banking & Investments Group.
United States Trust, together with MLGWM’s Private Banking & Investments Group, provides wealth management solutions for wealthy and ultra-wealthy clients with investable assets, as well as customized solutions to meet clients’ wealth structuring, investment management, trust and banking needs, including specialty asset management services. Retirement Services partners with financial advisors to provide institutional and personal retirement solutions, including investment management, administration, recordkeeping and custodial services for 401(k), pension, profit-sharing, equity award and non-qualified deferred compensation plans. Retirement Services also provides investment advisory services to individuals, small to large corporations and pension plans.
All Other
All Other consists of two groupings, Equity Investments and Other. Equity Investments includes Corporate Investments, Global Principal Investments and Strategic Investments. Other include liquidating businesses, merger and restructuring charges, ALM functions (which include residential mortgage portfolio and investment securities) and related activities (which include economic hedges, fair value option on structured liabilities), and the impact of certain allocation methodologies.
After nine months of preparation, the merger of BankAmerica Corp. and Security Pacific Corp. became final on April 22, 1992. The merger was part of a national trend of bank consolidation that sought to strengthen troubled and even healthy institutions. For BankAmerica, the merger offered an opportunity to become more efficient and save money--an estimated $1.2 billion annually within the next three years. The merger also helped the bank expand into new markets and geographic locations. By the end of 1992, consumer banking services were provided in ten western states, trust and consumer financial services were provided nationwide, and commercial and corporate banking operations were located in 35 countries worldwide.
Acquisition activity continued with the purchase of Sunbelt Federal Savings, which held 111 branches in 76 cities in Texas; HonFed, the largest thrift in Hawaii; and Valley Bank of Nevada, which made BankAmerica the largest depository institution in that state. However, the persistent national recession, combined with a recession in the state of California, caused a decline in earnings reported for 1992.
Domestic expansion continued in 1993 with the acquisition of First Gibraltar of Texas and with an agreement to make a $1 million equity investment in Founders National Bank, the only African-American-owned bank on the West Coast. Additional overseas expansion occurred when BankAmerica received approval from the People's Bank of China to upgrade its Guangzhou representative office into a full-service branch, the first U.S. bank to have such a branch. Consolidation of consumer and commercial finance units was undertaken, and one year after the merger, the bank had consumer operations in much of the United States, wholesale offices in 37 nations, retail branches in ten western states, and consumer finance company operations in 43 states.
As BankAmerica moved into the mid-1990s, it planned to continue many of the policies it had begun in the 1980s. They included the development of new products and services for consumers; geographic diversification into such fast-growing economies as Asia and Latin America, which would enable the bank to better withstand the economic cycles of the domestic market; community investments; environmental programs; and loans to students and those with low income. BankAmerica also continued to hope for changes in laws and regulations that would allow interstate banking and more effective competition with non-bank institutions providing similar financial services. Such legislation would create new markets for which BankAmerica was poised to serve.
Principal Subsidiaries: Bank of America NT&SA; Bank of America Alaska, N.A.; Bank of America Arizona; Bank of America FSB; Bank of America Idaho, N.A.; Bank of America Nevada; Bank of America New Mexico, N.A.; Bank of America Oregon; Bank of America Texas, N.A.; Seafirst Corp. Seattle-First National Bank.
OVERALL
Beta: 2.19
Market Cap (Mil.): $124,287.80
Shares Outstanding (Mil.): 10,121.15
Annual Dividend: 0.04
Yield (%): 0.33
FINANCIALS
BAC.N Industry Sector
P/E (TTM): -- 14.68 24.82
EPS (TTM): -143.43 -- --
ROI: -- 0.00 4.59
ROE: -2.09 3.34 9.20
Statistics:
Public Company
Incorporated: 1904 as Bank of Italy
Employees: 54,369
Assets: $180.64 billion
Stock Exchanges: New York Pacific Midwest
SICs: 6712 Bank Holding Companies; 6021 National Commercial Banks
Name Age Since Current Position
Holliday, Charles 63 2010 Independent Chairman of the Board
Moynihan, Brian 51 2010 President, Chief Executive Officer, Director
Noski, Charles 58 2010 Chief Financial Officer, Executive Vice President
Desoer, Barbara 58 2010 President - Bank of America Home Loans and Insurance
Price, Joe 50 2010 President - Consumer, Small Business Banking
Montag, Thomas 54 2010 President - Global Banking and Markets
Darnell, David 58 2010 President - Global Commercial Banking
Krawcheck, Sallie 46 2009 President - Global Wealth and Investment Management
O' Keefe, Edward 55 2009 General Counsel
Thompson, Bruce 46 2010 Chief Risk Officer
Laughlin, Terrence 56 2011 Legacy Asset Servicing Executive
Simpson, Paul 2011 Head - Global Treasury Solutions
Gifford, Charles 68 2005 Director
May, Thomas 64 2004 Independent Director
Bramble, Frank 62 2006 Independent Director
Lozano, Monica 54 2006 Independent Director
Rossotti, Charles 70 2009 Independent Director
Colbert, Virgis 71 2009 Independent Director
Bies, Susan 64 2009 Independent Director
Boardman, William 69 2009 Independent Director
Jones, D. Paul 68 2009 Independent Director
Powell, Donald 70 2009 Independent Director
Scully, Robert 61 2009 Independent Director
Ambani, Mukesh 53 2011 Independent Director
Address:
555 California Street
San Francisco, California 94104
U.S.A.
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