BofA Reports Increase in Profits, Drop in Mortgage Banking Income

""Bank of America's"":https://www.bankofamerica.com/ first quarter net income nearly quadrupled over that of last year, according to the bank's quarterly filings.

BofA reported Wednesday net income of $2.6 billion for the first quarter of 2013, up from $653 million the same quarter last year. Revenue was $23.7 billion, up from $22.5 billion a year ago.

In its earnings report, BofA attributed the results to ""increased brokerage income, higher investment banking fees, and improved credit quality across all major portfolios, partially offset by lower mortgage banking income and lower net gains on the sales of debt securities.""

On the residential lending front, the company reported lower mortgage banking income, largely as a result of lower servicing income. However, first-lien mortgage production rose 57 percent to $24 billion, approximately 91 percent of which was for refinances.

In addition, the number of 60-plus day delinquent first mortgage loans dropped by more than 100,000 from Q4, falling to 667,000.

Litigation expenses were $881 million in Q1 2013, down quarter-over-quarter but up nearly $100 million year-over-year. Included in those expenses was a class action settlement between Countrywide entities and several institutional and individual plaintiffs concerning mortgage-backed securities issued by Countrywide subsidiaries. Once approved, BofA estimates the settlement will resolve approximately 80 percent of the unpaid principal balance of the Countrywide-issued securities involved in claims.