Tag Archives: Quarterly Earnings

For the first time in more than four years, banks insured by the Federal Deposit Insurance Corporation (FDIC) reported an annual loss, according to the regulator's Quarterly Banking Profile released Tuesday. At $36 million, the net income of FDIC-insured banks in the third quarter is $1.5 million below earnings reported in the third quarter of last year.

With third-quarter numbers from most of the industry's heavy-hitters in, analysts with FBR Capital Markets say their forecasts--$1.6 billion in mortgage volume for 2013 followed by $1.4 billion in 2014--are still well within reach, even though they argue that declining interest rates and lower overall loan volume translated to disappointing mortgage numbers last quarter.

Bank of America exhibited healthy growth during the third quarter despite an expected weakening in its mortgage banking operations, according to the company's Q3 earnings report released Wednesday. BofA's third-quarter net income was $2.5 billion, a significant increase compared to $340 million reported for Q3 2012. Its consumer real estate services division, though, reported a net loss of $1 billion.

Citigroup reported a third quarter net income of $3.2 billion Tuesday, slipping somewhat as higher interest rates took a bite out of mortgage revenues. The bank also suffered from $635 million worth of incremental mortgage charge-offs required by the Office of the Comptroller of the Currency's guidance on the treatment of loans where the borrower has gone through Chapter 7 bankruptcy.

Wells Fargo and JPMorgan Chase are the first of the big banks to release their earnings summaries for the third quarter. The two reports paint a very mixed picture. Wells Fargo raked in record profits during the July-to-September period, while JPMorgan Chase reported its first-ever loss under CEO Jamie Dimon's watch as a result of a hefty one-time legal expense, which included reserves for litigation and regulatory proceedings.

Investment bank FBR Capital Markets released its preview of third-quarter earnings for major U.S. banks Monday, with a cloudy outlook for mortgage banking. In general, bank stocks have underperformed the broader market by about 2 percent over the third quarter; and zeroing in on the mortgage market, FBR is not optimistic about Q3 results.

Shrugging off cutbacks in government spending, the nation’s economy grew in the second quarter at a faster pace than originally reported, the Bureau of Economic Analysis said Thursday. Second quarter growth was calculated at a seasonally adjusted annual 2.5 percent rate, a sharp increase from the 1.7 percent initially reported for gross domestic product (GDP), the broadest measure of the nation's economy, a month ago. The stronger growth suggests a recovery on track, though the growth rate is shy of the 3 percent trend rate, a threshold generally considered necessary to expand payrolls.

Fannie Mae&'s second-quarter profits nearly doubled year-over-year, the GSE reported. The company reported Thursday net income of $10.1 billion in Q2 2013 compared to $5.1 billion for Q2 2012. It was the sixth consecutive quarter of profit for Fannie Mae. Comprehensive income totaled $10.3 billion, again nearly double that of the same quarter last year ($5.4 billion).

Freddie Mac had a banner second quarter, pulling in its second-largest profit in company history, the enterprise reported Wednesday. According to Freddie Mac's quarterly earnings report, Q2 2013 net income totaled $5.0 billion, up about $407 million over the first quarter. Comprehensive income was $4.4 billion compared to Q1's $7.0 billion.

According to its quarterly earnings report, BofA pulled in approximately $4.0 billion in Q2, an increase of 63 percent over the $2.5 billion recorded for Q2 2012. Last quarter's results ""were driven by year-over-year improvements in net interest income, investment and brokerage income, investment banking fees, sales and trading revenue, equity investment income and credit quality as well as expense reductions,"" the bank said.