Home / News / Foreclosure / BofA Reports Improvement in Net Income, Decline in Servicing Portfolio
Print This Post Print This Post

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.

[IMAGE]

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.""

[COLUMN_BREAK]

""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.

About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.
x

Check Also

What’s Driving Delinquency Rates?

Delinquency rates fell for the third consecutive month while non-performing loans hit record-setting levels in May.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.