Bank of America doubles second-quarter earnings

Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC) recorded second-quarter net income of $5.3 billion, more than doubling its $2.3 million earnings in a quarter that last year carried heavy litigation expenses.

Diluted share earnings for the three months ended June 30 were 45 cents, a 26-cent uptick from the same period in 2014, according to a news release.

During the second quarter last year, the holding company of five Bank of America branches in Springfield posted litigation expenses of $4 billion, the majority of which paid for a settlement with the Federal Housing Finance Agency over allegedly selling troubled mortgage-backed securities to Fannie Mae and Freddie Mac, according to Springfield Business Journal archives.

“The lowest expenses since 2008 contributed to our strongest earnings in several years, as we continued to build broader and deeper relationships with our customers and clients,” Bank of America CEO Brian Moynihan said in the release, of the latest quarter. “We also benefited from the improvement in the U.S. economy, where we are particularly well positioned.”

Second-quarter financial notes:

• The company’s noninterest expense figure, excluding litigation, dropped 6 percent to $13.6 billion.
• Net interest income improved by 4.7 percent to $10.5 billion.
• The number of loans that were at least 60 days delinquent declined 50 percent to 132,000.

As of June 30, Bank of America held assets of $2.1 trillion and deposits of $1.1 trillion. The company claims 48 million customers at 4,800 branches and 16,000 ATMs, according to the release.

BAC shares were trading at $17.67 as of 10:37 a.m., compared to a 52-week range of $14.84 to $18.21.