Bank of America Corp. (BAC, Financial) filed Quarterly Report for the period ended 2009-09-30.
Bank of America Corp. is one of the world's leading financial services companies. Bank of America provides individuals small businesses and commercial corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever wherever and however they choose. Bank Of America Corp. has a market cap of $130.9 billion; its shares were traded at around $15.13 with a P/E ratio of 100.8 and P/S ratio of 1.7. The dividend yield of Bank Of America Corp. stocks is 0.3%. Bank Of America Corp. had an annual average earning growth of 7.5% over the past 10 years.
On October 28, 2009, the Board declared a regular quarterly cash dividend on common stock of $0.01 per share, payable on December 24, 2009 to common stockholders of record on December 4, 2009. On July 21, 2009, the Board declared a regular quarterly cash dividend on common stock of $0.01 per share, which was paid on September 25, 2009 to common stockholders of record on September 4, 2009. In addition, in October 2009 the Board declared aggregate dividends on preferred stock of $1.0 billion including $713 million in dividend payments to the U.S. government on the preferred stock issued pursuant to the TARP. In the third quarter of 2009, we recorded aggregate dividends on preferred stock of $1.1 billion including $713 million to the U.S. government. For further discussion on our liquidity and capital, see Liquidity Risk and Capital Management beginning on page 150.
On October 21, 2009, the Corporation reached an agreement to sell First Republic Bank (First Republic) to a number of investors, led by First Republics existing management, Colony Capital, LLC and General Atlantic, LLC. First Republic, acquired on January 1, 2009 as part of the Merrill Lynch acquisition, provides personalized relationship-based banking services, including private banking, private business banking, real estate lending, trust, brokerage and investment management. First Republic is a standalone bank that operates primarily on the west coast and in the northeast and caters to high-end customers. As of September 30, 2009, First Republic had approximately $19.0 billion in total assets, $16.0 billion in deposits, and $15.0 billion in AUM. The transaction is expected to close in the second quarter of 2010 subject to regulatory approval.
On September 30, 2009, the Corporation reached an agreement to sell the long-term asset management business of Columbia Management (Columbia) to Ameriprise Financial, Inc., for consideration of approximately $900 million to $1.2 billion subject to certain adjustments including, among other factors, customer retention by the buyer. The sale includes the management of Columbias equity and fixed-income mutual funds and separate accounts. The transaction is expected to close in the second quarter of 2010 and is subject to regulatory approvals and customary closing conditions, including fund board, fund shareholder and other required client approvals.
In addition to being committed to the loan modification programs, we extended approximately $183.7 billion of credit during the third quarter which was comprised of $95.7 billion in mortgages, $65.5 billion in commercial non-real estate, $8.3 billion in commercial real estate, $4.5 billion in domestic retail and small business credit card, $2.7 billion in home equity products; and approximately $7.0 billion in other consumer credit products. Commercial credit extensions of $73.8 billion included commercial renewals of $50.9 billion.
Net income (loss) was $(1.0) billion, or $(0.26) per diluted common share after preferred dividends for the three months ended September 30, 2009, compared to $1.2 billion, or $0.15 per diluted common share, for the same period in 2008. Net income was $6.5 billion, or $0.39 per diluted common share for the nine months ended September 30, 2009, compared to $5.8 billion, or $1.09 per diluted common share, for same period in 2008.
Read the The complete ReportBAC is in the portfolios of David Tepper of APPALOOSA MANAGEMENT LP, John Paulson of Paulson & Co., Daniel Loeb of Third Point, LLC, Ronald Muhlenkamp of Muhlenkamp Fund, Andreas Halvorsen of Viking Global Investors LP, Richard Snow of Snow Capital Management, L.P., Richard Snow of Snow Capital Management, L.P., Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Brian Rogers of T Rowe Price Equity Income Fund, Richard Pzena of Pzena Investment Management LLC, Arnold Schneider of Schneider Capital Management, Bill Nygren of Oak Mark Fund, Charles Brandes of Brandes Investment, David Dreman of Dreman Value Management, Tom Gayner of Markel Gayner Asset Management Corp, Tom Gayner of Markel Gayner Asset Management Corp, Donald Yacktman of Yacktman Asset Management Co., Irving Kahn of Kahn Brothers & Company Inc., Warren Buffett of Berkshire Hathaway, Chris Davis of Davis Selected Advisers, George Soros of Soros Fund Management LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, John Keeley of Keeley Fund Management, Dodge & Cox, Kenneth Fisher of Fisher Asset Management, LLC.
Bank of America Corp. is one of the world's leading financial services companies. Bank of America provides individuals small businesses and commercial corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever wherever and however they choose. Bank Of America Corp. has a market cap of $130.9 billion; its shares were traded at around $15.13 with a P/E ratio of 100.8 and P/S ratio of 1.7. The dividend yield of Bank Of America Corp. stocks is 0.3%. Bank Of America Corp. had an annual average earning growth of 7.5% over the past 10 years.
Highlight of Business Operations:
Pursuant to the Emergency Economic Stabilization Act of 2008 (EESA), the U.S. Treasury announced the creation of the Financial Stability Plan. This plan outlined a series of key initiatives including a new Capital Assistance Program (CAP) to help ensure that banking institutions have sufficient capital. As part of the CAP, we, as well as several other large financial institutions, are subject to the Supervisory Capital Assessment Program (SCAP) conducted by federal regulators. The objective of the SCAP is to assess losses that could occur under certain economic scenarios, including economic conditions more severe than we currently anticipate. As a result of the SCAP, in May 2009, federal regulators determined that the Corporation required an additional $33.9 billion of Tier 1 common capital to sustain the most severe economic circumstances assuming a more prolonged and deeper recession over the next two years than the majority of both private and government economists currently project. We achieved the increased capital requirement during the first half of 2009 through strategic transactions that increased common capital, including the expected reductions in preferred dividends and related reduction in deferred tax asset disallowances, approximately $39.7 billion which significantly exceeded the SCAP buffer. This Tier 1 common capital increase resulted from the exchange of approximately $14.8 billion aggregate liquidation preference of non-government preferred shares into approximately 1.0 billion common shares, an at-the-market offering of 1.25 billion common shares for $13.5 billion, a $4.4 billion benefit (inclusive of associated tax effects) related to the sale of shares of China Construction Bank (CCB), a $3.2 billion benefit (net-of-tax and including an approximate $800 million reduction in goodwill and intangibles) related to the gain from the contribution of our merchant processing business to a joint venture, $1.6 billion due to reduced actual and forecasted preferred dividends throughout 2009 and 2010 related to the exchange of the preferred for common shares and a $2.2 billion reduction in the deferred tax asset disallowance for Tier 1 common capital from the preceding items.On October 28, 2009, the Board declared a regular quarterly cash dividend on common stock of $0.01 per share, payable on December 24, 2009 to common stockholders of record on December 4, 2009. On July 21, 2009, the Board declared a regular quarterly cash dividend on common stock of $0.01 per share, which was paid on September 25, 2009 to common stockholders of record on September 4, 2009. In addition, in October 2009 the Board declared aggregate dividends on preferred stock of $1.0 billion including $713 million in dividend payments to the U.S. government on the preferred stock issued pursuant to the TARP. In the third quarter of 2009, we recorded aggregate dividends on preferred stock of $1.1 billion including $713 million to the U.S. government. For further discussion on our liquidity and capital, see Liquidity Risk and Capital Management beginning on page 150.
On October 21, 2009, the Corporation reached an agreement to sell First Republic Bank (First Republic) to a number of investors, led by First Republics existing management, Colony Capital, LLC and General Atlantic, LLC. First Republic, acquired on January 1, 2009 as part of the Merrill Lynch acquisition, provides personalized relationship-based banking services, including private banking, private business banking, real estate lending, trust, brokerage and investment management. First Republic is a standalone bank that operates primarily on the west coast and in the northeast and caters to high-end customers. As of September 30, 2009, First Republic had approximately $19.0 billion in total assets, $16.0 billion in deposits, and $15.0 billion in AUM. The transaction is expected to close in the second quarter of 2010 subject to regulatory approval.
On September 30, 2009, the Corporation reached an agreement to sell the long-term asset management business of Columbia Management (Columbia) to Ameriprise Financial, Inc., for consideration of approximately $900 million to $1.2 billion subject to certain adjustments including, among other factors, customer retention by the buyer. The sale includes the management of Columbias equity and fixed-income mutual funds and separate accounts. The transaction is expected to close in the second quarter of 2010 and is subject to regulatory approvals and customary closing conditions, including fund board, fund shareholder and other required client approvals.
In addition to being committed to the loan modification programs, we extended approximately $183.7 billion of credit during the third quarter which was comprised of $95.7 billion in mortgages, $65.5 billion in commercial non-real estate, $8.3 billion in commercial real estate, $4.5 billion in domestic retail and small business credit card, $2.7 billion in home equity products; and approximately $7.0 billion in other consumer credit products. Commercial credit extensions of $73.8 billion included commercial renewals of $50.9 billion.
Net income (loss) was $(1.0) billion, or $(0.26) per diluted common share after preferred dividends for the three months ended September 30, 2009, compared to $1.2 billion, or $0.15 per diluted common share, for the same period in 2008. Net income was $6.5 billion, or $0.39 per diluted common share for the nine months ended September 30, 2009, compared to $5.8 billion, or $1.09 per diluted common share, for same period in 2008.
Read the The complete ReportBAC is in the portfolios of David Tepper of APPALOOSA MANAGEMENT LP, John Paulson of Paulson & Co., Daniel Loeb of Third Point, LLC, Ronald Muhlenkamp of Muhlenkamp Fund, Andreas Halvorsen of Viking Global Investors LP, Richard Snow of Snow Capital Management, L.P., Richard Snow of Snow Capital Management, L.P., Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Brian Rogers of T Rowe Price Equity Income Fund, Richard Pzena of Pzena Investment Management LLC, Arnold Schneider of Schneider Capital Management, Bill Nygren of Oak Mark Fund, Charles Brandes of Brandes Investment, David Dreman of Dreman Value Management, Tom Gayner of Markel Gayner Asset Management Corp, Tom Gayner of Markel Gayner Asset Management Corp, Donald Yacktman of Yacktman Asset Management Co., Irving Kahn of Kahn Brothers & Company Inc., Warren Buffett of Berkshire Hathaway, Chris Davis of Davis Selected Advisers, George Soros of Soros Fund Management LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, John Keeley of Keeley Fund Management, Dodge & Cox, Kenneth Fisher of Fisher Asset Management, LLC.
