Bank of America (BAC) recorded a second-quarter net income of $5.3 billion, or $0.45 per diluted share, compared to $2.3 billion, or $0.19 per share, a year ago.
Revenue, net of interest expense, on an FTE basis, rose $385 million, or 2%, from the second quarter of 2014 to $22.3 billion.
Bank of America beat the EPS Capital IQ Consensus Estimate of $0.36 and the revenue Capital IQ Consensus Estimate of $21.72 billion, according to briefing.com.
“Solid core loan growth, higher mortgage originations and the lowest expenses since 2008 contributed to our strongest earnings in several years, as we continued to build broader and deeper relationships with our customers and clients,” said CEO Brian Moynihan. “We also benefited from the improvement in the U.S. economy, where we are particularly well positioned.”
The company originated $16 billion in first-lien residential mortgage loans and $3.2 billion in home equity loans in the second quarter of 2015, compared to $11.1 billion and $2.6 billion, respectively, in the year-ago quarter. This is a 40% jump from Q214.
The number of 60+ days delinquent first mortgage loans serviced by Legacy Assets & Servicing declined to 132,000 loans at the end of the second quarter of 2015, down 21,000 loans, or 14%, from the prior quarter and down 131,000 loans, or 50%, from the year-ago quarter.
The provision for credit losses increased $369 million from the second quarter of 2014 to $780 million.
Adjusted for the impact of the August 2014 U.S. Department of Justice settlement (previously reserved for) and recoveries from nonperforming loan sales, net charge-offs declined $329 million, or 26%, from the second quarter of 2014 to $929 million, with the adjusted net charge-off ratio falling to 0.43% in the second quarter of 2015 from 0.56% in the year-ago quarter.
The decline in net charge-offs was driven by an improvement in consumer portfolio trends.
In its first-quarter earnings, Bank of America posted net income of $3.4 billion, or $0.27 per diluted share, for the first quarter of 2015, compared to a loss of $276 million, or $0.05 per share, in the year-ago period.