After Massive Stock Collapse, Bank Of America Beats Lowered Expectations

brian moynihan

After watching its stock get killed, here’s the slightest whiff of OK news for Bank of America…

The company just reported earnings of $.33 vs expectations of $.29.

Of course, on a GAAP basis, the company reported a big $.90/share loss.

Still, shares are currently up modestly pre-market.

Here’s what the company says about its “legacy” issues:

– The company continued to make progress on its legacy mortgage issues during the second quarter, including an agreement to resolve nearly all of the legacy Countrywide-issued first-lien non-GSE RMBS repurchase exposures, representing 530 trusts with an original principal balance of $424 billion.

— With the agreement and other mortgage-related actions taken in the second quarter of 2011, the company believes it has recorded reserves in its financial statements for a substantial portion of its representations and warranties exposure as measured by original principal balance.

— The company also has updated the range of possible loss for the remainder of its exposure with respect to non-GSE investor representations and warranties provision and currently estimates that such range of possible loss could be up to $5 billion over accruals at the end of the second quarter of 2011.

— Since the start of 2008, Bank of America and legacy Countrywide have completed more than 900,000 loan modifications with customers. During the second quarter, more than 69,000 loan modifications were completed, an 8 per cent increase from the modifications completed in the first quarter of 2011.

The full release is here.