As shown by a number of high-profile hires, the private banking arm of Bank of America continues to pursue opportunities in the US South and Southeast regions. We talk to one of its senior figures.

Migration of wealth in the US – and from overseas – to the Southeast region, and not just to Florida, is a growth engine that Bank of America Private Bank is harnessing.

A report in August 2024 by CNBC (citing a SmartAsset study) noted that Florida had the biggest net gain of affluent households. Using $200,000 of adjusted gross income as a threshold, the study, based on the 2021-21 tax year, crunched data about net inflows. Texas came second in the rankings, followed by North and South Carolina and Arizona.

Hong Ogle (pictured), Southeast/Southwest division executive at Bank of America Private Bank, considers such forces, and others, and is understandably optimistic. BoA’s private banking clients are mostly domestic US, falling into the category of “deca-millionaires” and up to the UHNW classification, leading to billionaires.

“We see wealth migration to everywhere in the southeast,” Ogle told Family Wealth Report in a recent interview, “as an example of our investment in the region. We recently hired Luke Palacio from Citi to lead our South Florida market.” (Palacio joined in October 2024.)

In February, the private bank appointed Mike Marino as Georgia market executiive. Previously, he worked at JP Morgan Private Bank, where he was vice chairman of its South Atlantic region. In November 2024, former Citi Private Bank figures overseeing a total of $7 billion of client money joined the private bank in Palm Beach.

There is a lot of territory that Ogle oversees. She is responsible for Arkansas, Florida, Georgia, Kansas, North Carolina, Oklahoma, South Carolina, and Texas. Ogle has overseen this region for three years. 

“We accommodate families who are based in the US but have businesses and families globally as part of a large, global bank,” she continued.

BoA obviously comes up against plenty of competitors, with the likes of Goldman Sachs Private Wealth Management; Citi Private Bank, JP Morgan Private Bank and Wells Fargo Private Bank, among others. And there are medium-sized boutiques, single- and multi-family offices, and other wealth management organizations, in the region. (Editor's note: This news service is planning features about the Miami/Florida market in coming days; in January, it held its second Miami Family Wealth Report Awards incorporating Latin America and the Caribbean. Stay tuned for more details.)

Warmth of the sun
“They are seeking a warmer climate and have a second home there and they want to go there permanently. There are more people moving their business to the South,” Ogle continued. “A lot of younger people are moving to the South to start their business here.” She gave examples such as young adults getting tech-related businesses off the ground in Houston, Texas.

An important focus is connecting with the “centers of influence” such as lawyers, accountants, tax advisors, various businesses, art gallery owners, etc.

Added to that, Ogle said she and colleagues on the private banking side interact constantly with peers in other parts of BoA, such as commercial banking, investment banking, etc. “We know our partners across the hall, and we do a lot together,” she said. 

About a third of referrals to the private bank are internal, she said.

Financial results appear to bear out Ogle’s upbeat mood. The private banking arm’s asset under management balances stood at $404 billion; and total client balances were $674 billion, with 720 net new relationships added in Q4 2024. In January, Bank of America said its global wealth and investment management arm logged a year-on-year gain in net income at $1.171 billion in the fourth quarter of 2024, driven by a rise in net revenue of $6 billion from $5.23 billion a year earlier.

Culture fit
Ogle spoke about the importance of a culture fit for new private bankers. For example, a person working in southern Florida would be advantaged in speaking Spanish. Many advisors, trust officers, etc, do so, she said. 

The private bank's advisors have a mix of ages to ensure a breadth of experience and comfort with different clients.

The bank is moving to more use of digital tech, such as AI.

“We are moving towards more digital technology and AI is going to come into play…we are looking to hire the best, who can use technology capabilities to work with clients, as well as grow market share,” Ogle said.  

For example, BoA spends $12 billion annually on technology, including $4 billion on new initiatives each year. Within the private bank, it has increased investment in new technology by 300 per cent since 2020. 

“This investment has created convenience and efficiency for both our clients and employees. For example, clients can now be onboarded digitally, and our advisor teams use a virtual assistant to quickly look up information. This gives them time back in their day to invest in new and existing clients,” she said. 

Onboarding, for example, is an important “pain point” that banks want to ease as much as possible, as this recent Fenergo study demonstrates, based on data from a number of nations. 

For all the talk about tech, that most traditional of banking roles, providing credit mustn’t be overlooked. “Most clients have some sort of borrowing needs – real estate, aviation, even sports teams,” Ogle said.