Bank of America Corp (NYSE:BAC) released the earnings results from its most recently completed quarter before opening bell this morning. The bank posted earnings per share of 35 cents, excluding items, on revenue of $22.8 billion for the first quarter. Analysts had been expecting earnings of 30 cents per share on revenue of $22.1 billion. Net losses were 5 cents per diluted share. In the same quarter a year ago, Bank of America reported net income of 10 cents per share.

Bank Of America BAC

Bank of America continues the momentum

The bank reported pretax litigation expenses of $6 billion during the quarter, which amounted to about 40 cents per share after tax. Bank of America Corp (NYSE:BAC) reported that the expenses were in connection with the company’s settlement with Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC). The bank also set aside more reserves for other “previously disclosed legacy mortgage-related matters.”

“The cost of resolving more of our mortgage issues hurt our earnings this quarter,” said Bank of America Corp (NYSE:BAC) CEO Brian Moynihan in a statement. “But the earnings power of our business and customer strategy generated solid results and we continued to return excess capital to our shareholders.”

Breaking down Bank of America’s results

Bank of America Corp (NYSE:BAC) saw its period-end deposit balances increase by $38 billion year over year to hit a new record of $1.13 trillion. The company funded $10.8 billion in residential home loans and home equity loans and issued more than one million new credit cards.

Bank of America Corp (NYSE:BAC)’s global wealth and investment management division had record asset management fees of $1.9 billion with a 25.6% pretax margin. Global banking average loan balances rose 11% year over year, bringing them to $271 billion. Bank of America Merrill Lynch posted fees of $1.5 billion. Excluding litigation expenses, noninterest expense fell 6% year over year. The bank also reported that net charge-offs fell 45% year over year, showing continued improvements in credit quality.

Bank of America updates capital and liquidity

According to this morning’s release, Bank of America Corp (NYSE:BAC)’s estimate common equity Tier 1 ratio under Basel III rose to 9.3% during the quarter. Under the advanced approach, the ratio was 9.9%. The company said its estimated supplementary leverage ratios were above the minimum levels required.

Also long term debt fell $25 billion year over year, mostly due to actions related to maturities and liability management. Bank of America Corp (NYSE:BAC) also reported record global excess liquidity sources, which reached $427 billion, a $55 billion year over year increase.

Bank of America increases capital returns

Bank of America Corp (NYSE:BAC) also said it will increase the capital actions it had reported previously. The bank raised its common stock dividend to 5 cents per share in the second quarter and began a new $4 billion common share buyback program.