BofA Reports Improvement in Net Income, Decline in Servicing Portfolio

After a net loss of $2.2 billion in 2010, ""Bank of America"":https://www.bankofamerica.com/ reported net income of $1.4 billion, $0.01 per diluted share, for the year in 2011, according to the company's earnings report released Thursday. On a fully taxable-equivalent basis, net interest expense declined 15 percent for the year arriving at $94.4 billion.

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BofA's net income for the fourth quarter of 2011 was $2 billion, $0.15 per diluted share. This is up from a net loss of $1.2 billion in the fourth quarter of 2010.

On a fully taxable-equivalent basis, revenue increased 11 percent over the quarter to $25.1 billion.

""Our fourth-quarter results reflect the aggressive steps we have been taking to strengthen the balance sheet and position the company for long-term growth,"" said BofA's CFO, Bruce Thompson. ""During the quarter, we significantly increased capital and liquidity.""

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""We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company,"" said BofA's CEO, Brian Moynihan.

The number of individuals employed full-time by the bank declined from 288,739 in the third quarter to 281,791 in the fourth quarter.

BofA's Consumer Real Estate Services reported a net loss in the last quarter of the year, but it was down from the loss reported in the same quarter of last year. The $1.5 billion loss in the fourth quarter coincided with $480 billion in revenue, while last year's $4.9 billion loss occurred with a $3.3 billion revenue.

BofA's mortgage servicing portfolio is on the decline. The $1.8 trillion portfolio reported at the end of the year is down from $1.9 trillion in the previous quarter and $2.1 trillion a year ago.

However, the bank financed $151.8 billion in residential mortgages in 2011, as 695,000 borrowers purchased new homes or refinanced through BofA. About $22.4 billion of the total residential mortgage financing for the year took place in the fourth quarter.

BofA's Legacy Asset Servicing reported a decline in 60-plus day delinquencies, which declined from $1.2 million in the third quarter to $1.1 million in the fourth quarter. The rate one year ago stood at $1.4 million.

BofA also reports it has now completed more than 1 million mortgage modifications, 78 percent of which were completed through its own programs. The remainder were completed through HAMO and the government's 2MP programs.