After recording a loss in the first quarter of the year, ""Bank of America"":https://www.bankofamerica.com/ announced a net income of $2.5 billion, $0.19 per diluted share in the second quarter of this year, according to a ""press release"":http://mediaroom.bankofamerica.com/phoenix.zhtml?c=234503&p=irol-newsArticle&ID=1715713&highlight Wednesday.[IMAGE]
The $8.8 billion in net loss in the first quarter was partially due to $18.2 billion charges ""for certain mortgage-related items and other select adjustments, including provisions for representations and warranties and goodwill impairment,"" according to the press release. This trend reversed during the second quarter.
While mortgage-related business may have contributed to losses during the first quarter, they contributed to gains in the second quarter, and the bank reports the increase in mortgage-banking income[COLUMN_BREAK]
was ""driven largely by lower provisions for representations and warranties, the absence of the goodwill impairment charge and improved credit quality across most major portfolios.""
Bank of America lent out about $107 billion during the second quarter, with $18 billion as residential first-lien mortgage loans. Another $8.2 billion went to commercial real estate loans, and about $930 million was distributed into home equity products.
The greatest amount of the bank's second quarter lending ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô $68.4 billion ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô went to commercial non-real estate loans.
While refinance loans continue to outpace first-lien mortgage originations, first-lien originations increased 18 percent over the second quarter.
Of the $18 billion in residential home loans during the second quarter, the majority ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô about 81 percent ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô went to refinancing, while the remaining 19 percent went to first-lien mortgage loans.
In total, BofA's residential lending reached more than 72,000 homeowners. About 5,000 of these were first-time homebuyers, and about 22,000 were low- and moderate-income borrowers.
Commercial lending is also on the rise at BofA. ""Lending to commercial businesses increased for the sixth straight quarter ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô with small business lending and commitments up 23 percent in a year - and consumer credit is in the best shape in years,"" said Brian Moynihan, CEO at BofA.
Also during the second quarter, BofA's long-term debt decreased by about $53 billion.