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Bank Of America Reports Fourth-Quarter 2012 Net Income Of $0.7 Billion, Or $0.03 Per Diluted Share

Stocks in this article: BAC

Provision for credit losses decreased $334 million from the year-ago quarter to $963 million due to improvement in delinquencies and bankruptcies primarily within the Card Services business. Noninterest expense decreased $308 million to $4.1 billion compared to the fourth quarter of 2011 as a result of lower FDIC expense and lower operating expenses.

Consumer Real Estate Services (CRES)

    Three Months Ended   Year Ended
(Dollars in millions)     December 31 2012   December 312011   December 31 2012   December 312011
Total revenue, net of interest expense, FTE basis $ 468   $ 3,275 $ 8,759   $ (3,154 )
Provision for credit losses 485 1,001 1,442 4,524
Noninterest expense 1 5,629 4,569 17,306 21,791
Net loss $ (3,722 ) $ (1,442 ) $ (6,507 ) $ (19,465 )
Average loans and leases 97,912 116,993 104,754 119,820

At December 31, 2012


At December 31,2011

Period-end loans and leases             $ 95,972     $ 112,359  

1 Full-year results include a goodwill impairment charge of $2.6 billion in the second quarter of 2011.

Business Highlights

  • Bank of America funded $22.5 billion in residential home loans and home equity loans during the fourth quarter of 2012, up 41 percent from the fourth quarter of 2011, excluding correspondent originations of $6.5 billion in the year-ago quarter. The company exited the correspondent business in late 2011.
  • The number of 60+ day delinquent first mortgage loans serviced by Legacy Assets and Servicing declined by 163,000, or 17 percent, during the fourth quarter of 2012 to 773,000 from 936,000 at the end of the third quarter of 2012 and 1.16 million at the end of the fourth quarter of 2011.

Financial Overview

Consumer Real Estate Services reported a net loss of $3.7 billion for the fourth quarter of 2012, compared to a net loss of $1.4 billion for the same period in 2011 primarily due to mortgage banking losses driven by the Fannie Mae settlements and higher expenses, partially offset by lower provision for credit losses.

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