Summary
Bank of America Corporation (BAC) filed an 8-K on April 15, 2011, to report its first quarter 2011 financial results and to announce a significant legal settlement. The company reported a net income of $2.0 billion, or $0.17 per diluted common share, for the quarter ended March 31, 2011. This filing also details an agreement reached with Assured Guaranty Ltd. to resolve all outstanding and potential repurchase claims related to 29 residential mortgage-backed securitization trusts, including historical loan servicing issues. The settlement with Assured Guaranty marks a step towards resolving legacy liabilities stemming from the company's acquisition of Countrywide Financial Corporation. Investors will be keen to assess the financial impact of this settlement and how it contributes to the company's ongoing efforts to manage its balance sheet and reduce litigation-related risks. The earnings release and supplemental information provide further details on operational performance and financial condition.
Key Highlights
- 1First Quarter 2011 Net Income: $2.0 billion
- 2First Quarter 2011 Diluted Earnings Per Common Share: $0.17
- 3Agreement reached with Assured Guaranty Ltd. to resolve repurchase claims related to 29 RMBS trusts.
- 4Settlement includes resolution of historical loan servicing issues and other potential liabilities.
- 5The agreement addresses claims arising from alleged breaches of representations and warranties.
- 6Filing includes press releases and slides detailing Q1 2011 financial results and the Assured Guaranty settlement.
- 7The settlement is a component of resolving liabilities related to legacy Countrywide Financial Corporation affiliates.