The parent of Bank of America N.A. branches in the Rochester market Wednesday reported a quarterly net loss of $33 million, the result of adjustments and litigation expenses.
Excluding charges, the bank earned net income of $340 million, or zero cents a share in the third quarter. Wall Street analysts, typically excluding special items, projected a loss of 7 cents a share.
The bank had reported net income of $5.9 billion, or 56 cents a common share, in the third quarter of 2011.
Bank of America previously announced a $1.9 billion pre-tax valuation adjustment in the company’s credit spreads, and a $1.6 billion pre-tax litigation expense related to its settlement of a class-action lawsuit against subsidiary Merrill Lynch & Co. Inc.
Combined with an $800 million charge related to a re-pricing of some deferred tax assets because of a reduction in the British corporate tax rate, the three items totaled a loss of 28 cents per share.
Deposits and mortgage originations are increasing, CEO Brian Moynihan said in a statement, and lending to small businesses is up 27 percent year over year.
“Our strategy is taking hold even as we work through a challenging economy and continue to clean up legacy issues,” he said.
Bank of America N.A. ranks eighth in the Rochester market with a local deposits of $692 million.
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email email@example.com.