Bank of America (NYSE: BAC) announced Friday first quarter earings slid 23 percent due to slower mortgage banking business. However, the bank topped Wall Street estimates and said credit losses are slowing.
The nation’s largest bank earned $3.2 billion or 28 cents a share in the first quarter, down from $4.2 billion or 44 cents a share in the same period a year earlier.
Revenue slipped 11 percent in the quarter to $32.3 billion, from $36.1 billion last year. Bank of America said the revenue decline was due to a credit related gain on Merrill Lynch structured notes that was booked in the first quarter of 2009.
to a loss of 15 cents a share.
Bank of America also said it took a $9.8 billion provision for loan losses in the first quarter, down from the $13.4 billion the bank took in the same period a year earlier. However, the bank still booked a $2.1 billion loss from its home mortgage business.
“With each day that passes, the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy,” said Chief Executive Officer and President Brian T. Moynihan. “Our customers – individuals, companies, and institutional investors – increasingly see the value of our integrated capabilities. We also are seeing ample indications that those integrated capabilities hold promise for long-term shareholder value.”
Bank of America said it funded $69.5 billion in first mortgages during the quarter, helping more than 320,000 people either purchase homes or refinance existing mortgages. This funding included $17.4 billion in mortgages made to nearly 115,000 low- and moderate-income borrowers. Roughly 37 percent of first mortgages were for home purchases, according to
the bank.
Concurrent with JP Morgan’s report a few days earlier, Bank of America added to its workforce in the first qaurter, increasing its home loan staff by 7 percent to more than 16,000 people.
