Bank of America posts $2.4B earnings in 2Q

Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC) posted second-quarter earnings of $2.4 billion, a 128 percent jump compared to a net loss of $8.8 billion in the same quarter of 2011.

The holding company for seven Bank of America branches in Springfield recorded diluted earnings per share of 19 cents during the latest quarter, compared to a loss per diluted share of 90 cents in second-quarter 2011, according to a news release.

The financial results for second-quarter 2011 included $18.2 billion in pretax charges related to mortgages and other adjustments, including provisions for representations and warranties and goodwill impairment. According to the release, the latest quarter financials reflected higher mortgage banking income, low provisions for representations and warranties, improved credit quality and the absence of a goodwill impairment charge.

Second-quarter 2012 financial notes:

• The number of mortgage loans delinquent by 60 or more days declined to 1.06 million, compared to 1.28 million by the end of second-quarter 2011.
• The company's provision for credit losses landed at $186 million, down $1.3 billion from a year ago.
• Noninterest expense dropped 41 percent to $3.6 billion, largely due to lower litigation expense and mortgage-related assessments, waivers and costs associated with foreclosure delays. In the second quarter of 2011, noninterest expense included a $2.6 billion noncash goodwill impairment charge.
• Average loans and leases rose 2.9 percent to $267.8 million from $260.1 million.

"Once again, we had strong capital generation this quarter through a combination of earnings growth and a reduction in risk-weighted assets," said Chief Financial Officer Bruce Thompson in the release. "In one year, our Tier 1 common capital ratios have gone from being the lowest of the major U.S. banks to among the highest, and we've maintained our strong liquidity levels even as we reduced our long-term debt by $125 billion."

As of June 30, Bank of America's assets were $2.2 trillion, its total loans and leases were $906.6 billion and its total deposits were $1 trillion, according to the release.  

As of 9:29 a.m., the company's shares were trading at $7.10, compared to a 52-week range of $4.92 to $10.28.