Bank of America profits fall 43%

Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC) reported second-quarter net income of $2.3 billion, representing a 42.9 percent decrease compared to profits of $4 billion in the corresponding quarter of 2013.

The holding company of five Bank of America branches in Springfield reported diluted share earnings of 19 cents for the three months ended June 30, down from 32 cents a share in the same quarter last year, according to a news release.

During the second quarter, Bank of America recorded a litigation expense of $4 billion, the majority of which was related to a settlement with the Federal Housing Finance Agency, the regulator and conservator of Fannie Mae and Freddie Mac. Bank of America allegedly sold troubled mortgage-backed securities to Fannie and Freddie before the financial crisis. Bank of America's $6 billion litigation expense in the first quarter resulted in a net loss of $276 million, according to Springfield Business Journal archives.

Second-quarter financial notes:

• Revenue, net of interest expense, was $22 billion in the second quarter, down from $23 billion in the same quarter last year.
• Bank of America issued 1.1 million new credit cards, with 65 percent doled out to existing customers.
• The company funded $13.7 billion in residential home loans and home equity loans, helping nearly 43,000 homeowners purchase a home or refinance a mortgage, according to the release.

As of June 30, Bank of America held assets of $2.2 trillion, deposits of $1.1 trillion and claimed 49 million customers at its roughly 5,000 branches and 16,000 ATMs, the release said.

BAC shares were trading at $15.44 as of 9:34 a.m., compared to a 52-week range of $13.60 to $18.03.