Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC) posted first-quarter net income of $2.6 billion, a 302 percent increase compared to earnings of $653 million in the same quarter of 2012.
The holding company, which operates six branches in Springfield, reported diluted earnings per share of 20 cents for the three-month period that ended March 31, a 17-cent increase from first-quarter 2012, according to a news release. Analysts, however, had expected 23-cent earnings per share, according to a New York Times
report.
Bank of America officials said first-quarter growth was driven by increased brokerage income, higher investment banking fees and improved credit quality in all major portfolios. Partially offsetting increases was lower mortgage banking income and decreased net gains on the sales of debt securities.
"Solid increases in loan growth to small businesses and middle-market companies, four straight quarters of steady growth in mortgage originations, record earnings in wealth management, and another quarter near the top in investment banking fees show we are balanced, focused and moving forward," Bank of America CEO Brian Moynihan said in the release.
Chief Financial Officer Bruce Thompson added the company reduced its noninterest income by nearly $1 billion during the quarter.
Other first-quarter financial notes:
- Noninterest income rose 12.3 percent to $12.8 billion from $11.1 billion in the same quarter of 2012.
- Noninterest expense decreased by 5.2 percent to $18.2 billion from $19.1 billion.
- Provision for credit losses registered at $1.7 billion, down 29.2 percent from $2.4 billion.
- Revenues totaled $7.2 billion, down from $7.4 billion in the same quarter a year ago.
During the first quarter, Arkansas-based Arvest Bank
finalized the purchase of 29 Bank of America branches, including 15 in Missouri. The acquisition price was undisclosed.
As of March 31, Bank of America's assets were $2.2 trillion and its deposits were 1.1 trillion. The company claimed 5,389 banking centers at the end of the quarter, the release said.
BAC shares were trading at $11.30 as of 10:06 a.m., compared to a 52-week range of $6.72 to $12.94[[In-content Ad]]
