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Bank of America reports 185% profit increase

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Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC), holding company for seven Bank of America branches in Springfield, recorded $6.2 billion in net income in the third quarter, a 185 percent increase compared to a net loss of $7.3 billion in the same quarter last year.

Earnings per share for the three months ended Sept. 30 were 56 cents, compared to a 77-cent loss per share in third-quarter 2010, according to a company news release.

"Our focus this quarter was on strengthening the balance sheet by selling noncore assets and building capital to position the company for future growth," Chief Financial Officer Bruce Thompson said in the release. "In that regard, we accomplished a great deal."

During the quarter, the company extended roughly $141 billion in credit, comprising $85 billion in commercial non-real estate loans, $33 billion in residential first mortgages, $10 billion in commercial real estate loans, $7 billion in other consumer credit, $5 billion in U.S. consumer and small business card items, and $847 million in home equity products.

With the $33 billion in residential first mortgages, more than 151,000 homeowners either purchased a home or refinanced an existing mortgage, according to the release.

Third-quarter financial highlights:
  • The company had a pretax gain of $3.6 billion from the sale of shares of China Construction Bank, of which Bank of America has a stake.
  • At the end of the quarter, total loans and leases were $932 billion, roughly flat from the same time last year.
  • Noninterest income was $17.96 billion, and noninterest expense was $17.61 billion.
Bank of America officials handed down a decision to cut roughly 3,500 jobs in the third quarter. By the end of the quarter, the company had 290,509 full-time employees, compared to 287,293 at the end of the same quarter last year.

As of Sept. 30, assets were $2.22 trillion, while deposits were $1.04 trillion.

In the five-county Springfield metropolitan statistical area, Bank of America recently ranked No. 7 in deposit market share. As of June 30, Bank of America held 4.25 percent of the market share with $316.6 million in deposits across seven branches in the MSA. The Federal Deposit Insurance Corp. released the updated market share rankings Oct. 4.

Bank of America has roughly 58 million customers at its approximately 5,700 branches and 17,750 automated teller machines.

As of 10:51 a.m., the company's shares were trading at $6.62, compared to its 52-week range of $5.13 to $15.31.[[In-content Ad]]

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