Litigation expenses bruise Bank of America profits

In a year when Bank of America Corp. (NYSE: BAC) agreed to pay the largest civil settlement in U.S. history to the federal government, its earnings took an expected tumble.

The Charlotte, N.C.-based company, which operates five branches in Springfield, posted 2014 earnings of $4.8 billion, a 57.7 percent drop from the $11.4 billion net income recorded in 2013. Diluted earnings per share dropped 54 cents year to year to land at 36 cents, according to a news release.

In August, Bank of America agreed to pay $16.65 billion to settle allegations it sold toxic mortgage-backed securities and other financial products in the lead-up to the recession.

"In 2014, we continued to invest in our businesses while reducing expenses and resolving our most significant litigation matters," Bank of America CEO Brian Moynihan said in the release.

2014 financial notes:

• Bank of America posted $3.1 billion in fourth-quarter profits, marking an 11.3 percent decrease from earnings of $3.4 billion in the same three-month period of 2013. Diluted earnings per share dropped 4 cents to 29 cents during the latest quarter.
• Revenue, net of interest expense, was $85.1 billion for the year, down from $89.8 billion a year earlier.
• The company originated $15 billion in fourth-quarter residential mortgage and home equity loans and 1.2 million new credit cards during the quarter.

As of Dec. 31, Bank of America’s assets were $2.1 trillion and deposits were $1.1 trillion, according to the release.

BAC shares were trading at $15.53 as of 10:19 a.m., compared to a 52-week range of $14.37 to $18.21.[[In-content Ad]]