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Bank of America reports first quarterly loss since 2011

Rochester Business Journal
April 16, 2014

Bank of America Corp. on Wednesday reported a quarterly net loss of $514 million attributable to common shareholders largely due to a $6 billion charge for litigation expenses.

Its shares (NYSE: BAC) dipped more than 2 percent midday to $15.99, down from Tuesday’s close of $16.39.

The loss, at a nickel per diluted share, compares to net income of $1.1 billion, or 10 cents a diluted share, in the first quarter of 2013.

Wall Street anticipated earnings of 5 cents a share.

Excluding special items, the Charlotte, N.C.-based bank reported a net loss of $276 million, or 5 cents a basic share.

The loss was the first for the bank since the second quarter of 2011.

The bank agreed to a $9.3 billion settlement in March related to claims that Countrywide Financial Corp. and other of its entities overstated the quality of mortgages sold to the Federal Housing Finance Agency between 2005 and 2007.

Bank of America acquired Countrywide for $4.1 billion in 2008 as the Great Recession hit.

“The cost of resolving more of our mortgage issues hurt our earnings this quarter,” CEO Brian Moynihan said in a statement. “But the earnings power of our business and customer strategy generated solid results and we continued to return excess capital to our shareholders.”

Bank of America N.A. ranks eighth in the Rochester market with local deposits of $721.5 million.

(c) 2014 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.


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