Bank of America bumps net income by 63%

Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC) reported second-quarter earnings of $4 billion, a 63 percent bump from $2.5 billion in the same quarter a year ago.

The holding company, which operates six branches in Springfield, registered earnings per diluted share of 32 cents for the three months ending June 30, a 13-cent increase from second-quarter 2012, according to a news release.

"At the beginning of the year, we said we would focus on three things – revenue stability, strengthening the balance sheet and managing costs," Bank of America Chief Financial Officer Bruce Thompson said in the release. "This quarter, we delivered on all three. Revenue increased 3 percent, we continued to build capital ratios despite the negative impact of higher interest rates on our bond portfolio and we reduced expenses related to servicing delinquent mortgage loans at a faster rate than we originally expected."

Second-quarter financial highlights:

• Revenue, net of interest expense, increased 3.4 percent to $23 million from $22.2 million in the same quarter last year.
• Bank of America employed 257,158 full-time workers as of June 30, down from 275,460 at the end of second-quarter 2012.
• Provision for credit losses moved down to $1.2 million, a 31.7 percent decrease from $1.8 million.

As of June 30, the company's assets totaled $2.2 trillion and deposits were $1.1 trillion. Bank of America claims roughly 51 million consumer and small-business customers with approximately 5,300 branches, the release said.

BAC shares were trading at $14.91 as of 10:02 a.m., near a 52-week high of $15.03 reached July 23. Its 52-week low is $7.10.