Bank of America Corp.

Bank of America Corp.
Charlotte, NC 28255
704-386-8486
www.bankofamerica.com

2003 net revenues: $37.8 billion
2003 net income: $10.8 billion
2003 investment banking and brokerage revenues: $1.6 billion
2003 securities underwriting revenues: $963 million

2003 total capital: $11.8 billion

2003 total employees; 133,549

Chairman and Chief Executive Officer: Kenneth D. Lewis

Bank of America Corporation is a bank holding company and a financial holding company.

History

Bank of America was formed by the merger of NationsBank and BankAmerica in 1998. BankAmerica was founded in 1904 as the Bank of Italy. The company used to be one of the largest banks in the U.S., but lost its market share over the years. NationsBank was formed as the Commercial National Bank in 1874. Over the years it went through several mergers and formed a holding company NCNB (North Carolina National Bank). By 1980, NCNB was the largest bank in North Carolina and became the first southern bank with operations in six states. The company increased its assets in the late 1980s by buying defunct thrifts at low prices after the savings and loan scandal. In 1991, NCNB changed its name to NationsBank.

The company faced a class action lawsuit and investigations by the Securities Exchange Commission in relation to a 1993 securities brokerage joint venture with Dean Witter Discover. Dean Witter withdrew from the deal in 1994. Complaints against the company included charges that customers were not being fully informed about the potential risks of some investments. The company settled the charges for $30 million in 1995. In 1997 and 1998, it bought a few other major banks, including Barnett Bank, Florida's leading bank.

In 1998, the newly formed Bank of America, born out of the merger of BankAmerica and NationsBank, decided to write down a billion-dollar bad loan to D. E. Shaw & Co., which led to the resignation of BankAmerica head David Coulter. In 1999, Kenneth Lewis took the helm as Chairman and CEO.

Business Segments

The company has four primary business segments:

Consumer and Commercial Banking
Asset Management
Global Corporate and Investment Banking
Equity Investments.

Its underwriting business is conducted through its Investment Banking business. The company's 2003 10-K states: "Investment banking fees include underwriting revenue, merger and acquisition, private placement, advisory, loan syndication and derivative product arrangement fees. Underwriting revenue is reflected net of syndicate expenses and arises from securities offerings in which the company acts as an underwriter and is recorded when the underwriting is complete and the income reasonably determinable."

The company conducts its underwriting business through Banc of America Securities LLC, which is wholly owned by NationsBanc Montgomery Holdings Corporation. NationsBanc Montgomery is wholly owned by NB Holdings Corporation and NBHC is wholly owned by Bank of America Corporation.

Banc of America Securities underwrites and deals in state and municipal securities, U.S. government agency obligations, corporate debt and equity securities.

Income/Revenues from Business Segments

Net income in 2003 for Bank of America Corp. was $10.8 billion, a 17 percent increase from 2003 net income of $9.2 billion. Net revenues in 2003 totaled $37.8 billion.
In 2003 total income from investment banking was $1.6 billion. Income from investment banking income increased $188 million, or 13 percent in 2003 compared to 2002. Although the overall market for securities underwriting declined for equity offerings, securities underwriting fees increased by 34 percent.

The share of income from each area of investment banking income in 2003 was as follows:

Securities Underwriting.....................................$963 million
Syndications........................................................$428 million
Advisory Services...............................................$228 million
Other........................................................................$50 million

Total...................................................................$1,669 million