BofA Retains Top Rank

Based on a ranking analysis released on Wednesday by Virginia-based research firm SNL Financial, Bank of America Corporation (BAC - Analyst Report) still remains the highest ranked banking institution in U.S. by second-quarter total assets.

The analysis was based on the filings of Federal Deposit Insurance Corporation (FDIC). According to the filing, as of June 30, 2009, Bank of America has total assets of $2.3 trillion and total deposits of $971 billion.
 
Earlier this week, Bank of America offered to repay a part of the $45 billion it had received from the U.S. government in relation to its participation in the Troubled Asset Relief Program (TARP). Also, the repayment offer was aimed to end a loss-sharing deal with the government related to its acquisition of Merrill Lynch & Co. The completion of the payments would enable Bank of America to reduce part of government involvement in its affairs.

We think that Bank of America is in a relatively good shape from a capital perspective. During this delicate period of market stress, the availability of significant private-sector capital is very limited. As a result, the management remains focused on managing asset-levels efficiently, ensuring the deployment of TARP funds to core lending businesses and trimming other assets in non-core businesses.

Also, management seems to derive confidence from its capital position in its indication to pay back a portion of TARP funds.

Though bank failures across the country have pushed several big banks up the ranks, the top nine banking institutions have retained their ranking from the first quarter.

JPMorgan Chase & Co. (JPM - Analyst Report) retained the second place with assets of $2 trillion and deposits $866 billion, while Citigroup Inc. (C - Analyst Report) is third with assets of $1.8 trillion and deposits of $804 billion. Wells Fargo & Co. (WFC - Analyst Report) came in fourth with $1.2 trillion in assets and $813 billion in deposits. HSBC North America Holdings ranked five with $383 billion in assets and $150.6 billion in deposits.

Remarkably, BB&T Corporation (BBT - Analyst Report) jumped two steps higher in the second quarter to rank 10th after its acquisition of failed institution Colonial Bank in mid-August. BB&T had total assets of $174 billion.

Another remarkable jump was made by BBVA USA Bancshares Inc. This holding company jumped four spots to rank 23rd as a result of its acquisition of Guaranty Bank, which was also shuttered by the FDIC in mid-August. Despite the turmoil, the major institutions have been able to hold on to their ranks in the last two quarters.

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