Bank of America Corporation (Bank of America)

Bank of America Corporation (Bank of America)

 

Bank of America Corporation (Bank of America), incorporated in 1998, is a bank holding company. Through its banking subsidiaries (the Banks) and various non-banking subsidiaries throughout the United States and in selected international markets, Bank of America provides a diversified range of banking and non-banking financial services and products through three business segments: Global Consumer and Small Business Banking, Global Corporate and Investment Banking, and Global Wealth and Investment Management. The Company operates in 30 states, the District of Columbia and 44 foreign countries. In the United States, it serves more than 55 million consumer and small business relationships with more than 5,700 retail banking offices, more than 17,000 automated teller machines (ATMs) and more than 21 million active online users. It offers services in 16 states.

 

In July 2007, Bank of America completed the acquisition of U.S. Trust Corporation, creating U.S. Trust, Bank of America Private Wealth Management, a private wealth management organization in the United States. In June 2007, the Company completed the acquisition of the reverse mortgage business of Seattle Mortgage Company, an indirect subsidiary of Seattle Financial Group, Inc. Seattle Mortgage had marketed its reverse mortgages under its division name, Reverse Mortgage of America. In April 2007, ABN AMRO Holding N.V. announced the sale of ABN AMRO North America Holding Company, which principally consists of the retail and commercial banking activities of LaSalle Bank Corporation, to Bank of America. In December 2006, the Company completed the sale of its retail and commercial business in Hong Kong and Macau (Asia Commercial Banking business) to China Construction Bank. In October 2006, BentleyForbes, a commercial real estate investment and operations company, completed the acquisition of Bank of America Plaza in Atlanta from CSC Associates, a partnership of Cousins Properties Incorporated and Bank of America Corporation. In September 2006, the Company completed the sale of its Brazilian operations. On January 1, 2006, Bank of America completed its merger with MBNA Corporation.

 

Global Consumer and Small Business Banking

 

Global Consumer and Small Business Banking offers a range of products and services through a franchise that stretches coast to coast through 30 states and the District of Columbia. The Company provides credit card products to customers in Canada, Ireland, Spain and the United Kingdom. In the United States, it serves more than 55 million consumer and small business relationships utilizing its network of 5,747 banking centers, 17,079 domestic branded ATMs, and telephone and Internet channels. Within Global Consumer and Small Business Banking, there are four primary businesses: Deposits, Card Services, Mortgage and Home Equity. Deposits provides a range of products to consumers and small businesses.

 

Bank of America's products include traditional savings accounts, money market savings accounts, certificate of deposit (CDs), individual retirement account (IRAs), and regular and interest checking accounts. Debit card results are also included in Deposits. During the year ended December 31, 2006, the Company added approximately 2.4 million net new retail checking accounts and 1.2 million net new retail savings accounts.

 

Card Services offers United States Consumer and Business Card, Unsecured Lending, Merchant Services and International Card Businesses. Bank of America offers a variety of co-branded and affinity credit card products. Prior to the merger with MBNA, Card Services included United States Consumer Card, United States Business Card and Merchant Services. Mortgage generates revenue by providing a line of mortgage products and services to customers nationwide. Mortgage products are available to the Company's customers through a retail network of personal bankers located in 5,747 banking centers, sales account executives in nearly 200 locations and through a sales force offering its customers direct telephone and online access to its products. In addition, it serves customers through a partnership with more than 6,500 mortgage brokers in all 50 states. The mortgage product offerings for home purchase and refinancing needs include fixed and adjustable rate loans.

The mortgage business includes the origination, fulfillment, sale and servicing of first mortgage loan products. Servicing activities primarily include collecting cash for principal, interest and escrow payments from borrowers, and accounting for and remitting principal and interest payments to investors, and escrow payments to third parties. Servicing income includes ancillary income derived in connection with these activities, such as late fees. The Mortgage servicing portfolio includes loans serviced for others, and originated and retained residential mortgages. As of December 31, 2006, the servicing portfolio was $333.0 billion.

 

Home Equity generates revenue by providing a line of home equity products and services to customers nationwide. Home Equity products include lines of credit and home equity loans and are also available to Bank of America's customers through its retail network and its partnership with mortgage brokers. As of December 31, 2006, the Home Equity servicing portfolio was $86.5 billion.

 

Global Corporate and Investment Banking

 

Global Corporate and Investment Banking provides a range of financial services to both the Company's issuer and investor clients that range from business banking clients to international corporate and institutional investor clients. Global Corporate and Investment Banking's products and services are delivered from three primary businesses: Business Lending, Capital Markets and Advisory Services, and Treasury Services, and are provided to its clients through a global team of client relationship managers and product partners. The Company's clients are supported through offices in 26 countries that are divided into four geographic regions: United States and Canada; Asia; Europe, Middle East and Africa, and Latin America.

 

Business Lending provides a range of lending-related products and services to Bank of America's clients through client relationship teams along with various product partners. Products include commercial and corporate bank loans and commitment facilities, which cover its business banking clients, middle market commercial clients and its multinational corporate clients. Real estate lending products are issued primarily to public and private developers, homebuilders and commercial real estate firms. Leasing and asset-based lending products offer the Company's clients financing solutions. Products also include indirect consumer loans, which allow it to offer financing through automotive, marine, motorcycle and recreational vehicle dealerships across the United States.

 

Capital Markets and Advisory Services provides products, advisory services and financing globally to Bank of America's institutional investor clients in support of their investing and trading activities. The Company also works with its commercial and corporate issuer clients to provide debt and equity underwriting and distribution capabilities, merger-related advisory services and risk management solutions using interest rate, equity, credit and commodity derivatives, foreign exchange, fixed income and mortgage-related products. Underwriting debt and equity, securities research and certain market-based activities are executed through Banc of America Securities, LLC, which is a primary dealer in the United States and several other countries.

 

Treasury Services provides integrated working capital management and treasury solutions to clients worldwide through Bank of America's network of offices and special clearing arrangements. The Company's clients include multinationals, middle-market companies, correspondent banks, commercial real estate firms and governments. Its products and services include treasury management, trade finance, foreign exchange, short-term credit facilities and short-term investing options. Net Interest Income is derived from interest and non-interest-bearing deposits, sweep investments and other liability management products.

 

Global Wealth and Investment Management

 

Global Wealth and Investment Management provides offers customized banking and investment services. The Company's clients have access to a range of services offered through three primary businesses: The Private Bank, Columbia Management (Columbia), and Premier Banking and Investments (PB&I). The Private Bank provides integrated wealth management solutions to high-net-worth individuals, middle-market institutions and charitable organizations with investable assets greater than $3 million. The Private Bank provides investment, trust and banking services, as well as specialty asset management services (oil and gas, real estate, farm and ranch, timberland, private businesses and tax advisory). The Private Bank also provides integrated wealth management solutions to high-net-worth individuals and families with investable assets greater than $50 million through its Family Wealth Advisors unit.

 

Columbia is an asset management business serving the needs of both institutional clients and individual customers. Columbia provides asset management services, including mutual funds, liquidity strategies and separate accounts. Columbia mutual fund offerings provide an array of investment strategies and products, including equities, fixed income (taxable and non-taxable) and money market (taxable and non-taxable) funds. Columbia distributes its products and services directly to institutional clients, and distributes to individuals through The Private Bank, Family Wealth Advisors, Premier Banking and Investments, and non-proprietary channels, including other brokerage firms.

Premier Banking and Investments includes Banc of America Investments, the Company's full-service retail brokerage business and its Premier Banking channel. PB&I has a network of approximately 4,400 client advisors to its customers with a personal wealth profile that includes investable assets plus a mortgage that exceeds $500,000 or at least $100,000 of investable assets. Equity Investments includes Principal Investing, Corporate Investments and Strategic Investments. Principal Investing is comprised of a portfolio of investments in privately held and publicly traded companies at all stages of their life cycle from start-up to buyout. These investments are made either directly in a company or held through a fund.