Summary
Bank of America Corporation (BAC) filed an 8-K on October 6, 2008, to report its third-quarter 2008 financial results and disclose other material events. The company reported a net income of $1.18 billion, or $0.15 per diluted share for the quarter. This filing also revealed significant strategic actions related to the integration of Countrywide Financial Corporation. In conjunction with the Countrywide integration, Bank of America announced its intention to transfer substantially all assets and operations of Countrywide and its subsidiary, Countrywide Home Loans, Inc. (CHL), to other BAC subsidiaries. As part of this potential transaction, Bank of America would assume approximately $21 billion in debt securities and related guarantees of Countrywide and CHL. Investors should note that there is no assurance that this transfer will occur, or as to its timing or terms, indicating ongoing uncertainty around the full integration and financial implications of the Countrywide acquisition.
Key Highlights
- 1Bank of America reported third quarter 2008 net income of $1.18 billion.
- 2Diluted earnings per common share for the third quarter of 2008 was $0.15.
- 3The company held an investor conference call and webcast on October 6, 2008, to discuss Q3 financial results.
- 4Bank of America intends to transfer substantially all assets and operations of Countrywide and CHL to other BAC subsidiaries.
- 5As part of the Countrywide integration, BAC would assume approximately $21 billion in debt securities and related guarantees of Countrywide and CHL.
- 6The potential transfer of Countrywide assets/operations and debt assumption is subject to uncertainty regarding occurrence, timing, and terms.