Bank of America profits jump in 2012

Despite a down quarter, Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC) recorded 2012 earnings of $4.2 billion, a 190 percent jump from $1.5 billion in 2011.

“We enter 2013 strong and well positioned for further growth,” Bank of America CEO Brian Moynihan said in a news release. “Double-digit growth since last year in mortgage production, commercial lending and global markets revenue demonstrates the power of deeper customer and client relationships as we intensify the focus on connecting all our capabilities.”

The company, which operates six branches in Springfield, posted fourth-quarter profits of $732 million, down 63 percent from $2 billion in the same quarter a year before.

Last quarter's financial results were adversely affected by a $2.7 billion provision after settling with Fannie Mae to absolve claims related to troubled mortgages.

Fourth-quarter financial notes:

• Noninterest income decreased by 41 percent to $8.3 billion, while noninterest expense dropped to $18.4 million from $18.9 million in the same quarter of 2011.
• Diluted earnings per share totaled 3 cents, down from 15 cents in fourth-quarter 2011.
• Litigation expenses totaled $900 million during the quarter.

During the quarter, Bank of America entered into an agreement to sell 29 of its branches, including 15 in Missouri, to Fayetteville, Ark.-based Arvest Bank. The transaction is expected to close in the first quarter.

As of Dec. 31, Bank of America's assets were $2.2 trillion, its deposits were $1 trillion, and the company claimed 53 million customers at about 5,500 branches, the release said.

The company's shares were trading at $11.26 as of 9:51 a.m., compared to a 52-week range of $6.72 to $12.20.[[In-content Ad]]