Bank of America 1Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“commercial loans and leases, they’re up 3% relative to the fourth quarter of 2012, and up 17% compared to the year ago period”

“deposits were down slightly from the fourth quarter of ’12 to the first quarter of ’13, although up approximately $54 billion, or 5%, from the first quarter of 2012”

“Tangible common equity ratio was up 20 basis points from the fourth quarter to 6.94%, and tangible book value was up about $0.10 to $13.46 ”

“Under Basel III, on a fully phased in basis, tier one common capital was estimated to be $131 billion, or 9.4%”

“The consumer loss rate dropped 34 basis points to 1.7%, the lowest since the beginning of 2008, while the commercial loss rate declined 5 basis points to 25 basis points, the lowest since 2006.”

“The provision for reps and warranties was $250 million during the quarter”

“Results did include approximately $700 million of litigation…addressed original principal balance RMBS that exceeded $350 billion, or what we believe represents approximately 70% of the unpaid principal balance of all MBS”

“we’re generally through the GSE exposure as it relates to rep and warrant…You then go down to the monolines. There are three significant monolines that we did business with, five in total. We obviously have had previous settlements with two of those three monolines. The one that obviously gets a lot of press is MBIA, that continues to be out there….If you then flip to the securities litigation, which is the other significant piece of the litigation expense, one of the reasons that we think the settlement that we announced today was significant is as I referenced, if we look at the original unpaid balance company wide, of all of the securities that were underwritten, this settlement today relates to, companywide, about 70% of that…So I don’t think anyone’s going to ever, at this point, declare complete victory. We do think that between the Fannie and related settlements and the look back in the fourth quarter as well as the settlement that we’ve announced today, that we’re moving through in a pretty meaningful way this pipeline of items.”

“mortgage loan officers are up about a thousand year over year. We are still adding as we speak…the pipeline is still as strong as it’s ever been…I think we should be able to drive it up to more of our natural share in things like deposits and stuff, which is more than 10% over time.”