Bank of America profits fall 93% after settlement expenses

Factoring settlement expenses paid to the federal government, Bank of America Corp. (NYSE: BAC) reported third-quarter net income of $168 million, a 93.3 percent decrease compared to earnings of $2.5 billion a year earlier.

For the three months ended Sept. 30, the company posted a diluted share loss of 1 cent, down from 20-cent earnings for third-quarter 2013, according to a news release.

Noninterest expenses totaled $19.7 billion during the quarter, a figure driven by higher mortgage-related litigation expenses. In August, Bank of America agreed to pay $16.65 billion to resolve allegations it sold toxic mortgage-backed securities and other financial products in the lead-up to the financial crisis. The deal represented the largest civil settlement between a single firm and the government. During the third quarter, the company recorded a pretax charge of $5.3 billion related to the settlement.

Third-quarter financial notes:

• Bank of America originated $14.9 billion in residential home loans and home equity loans to 43,500 consumers.
• Revenue, net of interest expense, decreased by 1 percent to $21.4 billion.
• At the end of the quarter, the company employed 229,538 full-time employees, a 7 percent decrease from a year ago.

According to Federal Deposit Insurance Corp. data released in late September, Bank of America ranked sixth in deposits held in the five-county Springfield metropolitan statistical area. As of June 30, the company held Springfield metro area deposits of $386 million, or 4.7 percent of the market, according to Springfield Business Journal archives.

As of Sept. 30, Charlotte, N.C.-based Bank of America's assets were $2.1 trillion and deposits were $1.1 trillion, according to the release. The company operates five branches in Springfield, according to its website.

BAC shares were trading at $15.83 as of 8:44 a.m., compared to a 52-week range of $13.80 to $18.03.