The Strength of Our Firm
For more than 200 years,
through evolving markets,
changing legal environments
and the growing complexity of
the financial world, U.S. Trust
has helped clients achieve
their objectives. Today we
offer clients the benefits of
broader reach and resources,
backed by our fiduciary
responsibility and commitment
to personal attention.
BANK OF AMERICA CORPORATION’S FINANCIAL POWER
• In
the second quarter of 2011, Bank of America Corporation reported a net
loss of $8.8 billion, or ($0.90) per diluted share, compared with net income of $3.1 billion for the same period a year ago and net income of $2.0 billion in the first quarter of 2011.
• The
loss was largely driven by charges related to an agreement to resolve a significant portion of the company’s legacy mortgage-related issues, as well as other mortgage-related costs.
• Excluding
these certain mortgage-related items and other selected items,
net income was $3.7 billion,1 or $0.33 per diluted share, in the second
quarter of 2011.
• In
the second quarter of 2011, deposit balances for Bank of America were
$1.04 trillion, up from $1.02 trillion from the previous quarter. (See chart.)
• Bank
Deposit balances (period end)
of America Corporation’s capital and liquidity positions were solid in the
second quarter of 2011. Tier 1 capital and Tier 1 common ratios continued
to exceed the levels required to meet the regulatory definitions of a “well
capitalized” company, and Bank of America Corporation ended the quarter
with approximately $402 billion in global excess liquidity — compared with
$386 billion at the end of the first quarter of 2011.
• One
$1.02
Trillion
$1.04
Trillion
At March 31, 2011
At June 30, 2011
measure of Bank of America’s strength is what is called “time to required
funding”— which refers to the number of months Bank of America Corporation,
the parent company, can meet its financial commitments without issuing any
new debt or accessing other sources of cash. Its time to required funding, as
of the end of the second quarter of 2011, was 22 months.
CREDIT STRENGTH
• Merrill
Lynch, Pierce, Fenner & Smith Inc. (MLPF&S), Bank of America’s brokerdealer unit, and Bank of America, N.A. (BANA) have been individually rated by
Standard & Poor’s (S&P), with each receiving the long-term senior unsecured
credit rating of A+, S&P’s highest credit rating on their 22-point scale.
Bank of America Corporation (“BAC”) is the financial holding company that, through its subsidiaries and affiliated companies, provides banking and nonbanking financial services.
Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer and member
SIPC, and other subsidiaries of BAC.
Banking products are provided by Bank of America, N.A., and affiliated banks, members FDIC and wholly owned subsidiaries of BAC.
Investment products:
Are Not FDIC Insured
Are Not Bank Guaranteed
May Lose Value
U.S. Trust, Bank of America Private Wealth Management operates through Bank of America, N.A. and other subsidiaries of Bank of America Corporation. Bank of America, N.A.,
Member FDIC.
ONE OF THE WORLD’S LARGEST FINANCIAL INSTITUTIONS
THE TRUST FIDUCIARY STANDARD
• Bank
U.S. Trust has long been held to — and continues to observe with
pride — the highest fiduciary standard of care in dealing with
our clients and their wealth.8 Whether we are managing your
portfolio, administering a trust or assisting you in developing
a wealth plan to guide you and your family, our focus is what
best meets your objectives and expectations.
SUPPORTING THE ECONOMY
Your best interests are ours as well — The trust fiduciary standard
is the foundation for a consistent, disciplined investment process.
of America serves approximately 58 million
consumers and small businesses around the world,
doing business with one out of every two households
in the U.S. It has approximately 5,700 banking
centers and approximately 17,800 ATMs. Nearly
30 million of its customers actively bank online.
• Bank
of America extended approximately $147 billion
in credit in the second quarter of 2011, according to
preliminary data. This included $84 billion in commercial
non-real estate loans, $40 billion in residential first
mortgages, $11 billion in commercial real estate loans,
$4 billion in U.S. consumer and small business card, $1 billion in home equity products and $7 billion in other
consumer credit.
U.S. TRUST OVERVIEW
U.S. Trust delivers broad-based customized financial
solutions encompassing investment management;
financial, tax2 and estate planning; philanthropic
management; custom credit3 and banking services;
specialty asset management; and trust services and administration.
• As
of June 30, 2011, U.S. Trust had $197.6 billion in assets under management.4
•When we provide investment services to you, your portfolio
manager works with you to design and adhere to a formal
investment policy statement. As a result, your portfolio is
driven by your personal and financial objectives and the asset
allocation that is specifically designed to meet them.
•In adhering to this standard, our commitment, first and
foremost, is to serving your best interests and placing those
ahead of our own.
•When we call upon our partners and affiliates at
Bank of America to assist us, we provide full disclosure of
conflicts of interest we believe may exist.
Ensuring that we meet our obligations — As a national bank,
government regulators examine our fiduciary activities regularly to
assess continuous compliance with our responsibilities to you.
• The
•T hrough a prescribed process, we review all accounts to see
that fiduciary investment standards are being met and that
the accounts are being administered in accordance with their
investment policy statements, governing documents and laws
and regulations.
• U.S. Trust
•When we serve as trustee, we monitor adherence to the terms
of the trust document as well as the unique investment and
wealth transfer objectives of the trust to help ensure that
we are meeting our fiduciary obligations to you and the trust
beneficiaries, both present and future.
firm has more than 4,000 associates, over 2,000 of whom are client-facing professionals5 serving individuals, families, endowments and
foundations in more than 111 offices in 32 states across
the country.6
operates through Bank of America, N.A and is
part of Bank of America’s Global Wealth & Investment
Management division, a global leader in wealth
management, private banking and retail brokerage.7
ustrust.com
1
E xcluding certain mortgage-related items and other selected items represents a non-GAAP measure. For reconciliation to GAAP net income and EPS, refer to the company’s
second-quarter financial results, published on July 19, 2011.
2
Bank of America, N.A. is not a tax or legal advisor. We suggest you consult your personal tax or legal advisor before making any tax-related investment decisions.
3
Credit and collateral subject to approval. Terms and conditions apply. Programs, rates, terms and conditions subject to change without notice. Equal Housing Lender.
4
Source: Bank of America. As of June 30, 2011, U.S. Trust, Bank of America Private Wealth Management managed assets of $197.6 billion.
5
“U.S. Trust June Executive Financial Summary.” (June 30, 2011).
6
“U.S. Trust Nationwide Office Listings.” (June 30, 2011).
7
Brokerage services are provided by Merrill Lynch, Pierce, Fenner & Smith Incorporated.
8
Bank of America, N.A. and its affiliates do not serve in a fiduciary capacity when offering or providing any type of credit solution.
Breakdown reflects ratings from Standard & Poor’s, Moody’s and/or Fitch Ratings. For additional information on ratings, please see www.standardandpoors.com,
www.moodys.com,and/or www.fitchratings.com.
© 2011 Bank of America Corporation. All rights reserved. | ARJ5L280 | 8/2011
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