Bank of America Corp., reports a fourth-quarter net loss of $2.39 billion, or 48 cents per diluted share. The news comes on the same day the Charlotte-based bank says it will slash its dividend to one cent per share from 32 cents and accept an additional $20 billion in bailout money.
The federal funds are in addition to the $25 billion BofA has already received under the Troubled Asset Relief Program, which is designed to unfreeze the credit markets and boost the economy.
BofA earned $215 million, or 5 cents per diluted share, in the fourth quarter of 2007.
The latest figures include results from Countrywide Financial Corp., which BofA purchased on July 1, but not Merrill Lynch & Co. Inc., which it purchased Jan. 1.
Net interest income rose to $13.1 billion in the latest quarter from nearly $9.17 billion in the fourth quarter of 2007. Total noninterest income fell to $2.57 billion from $3.64 billion in the same period.
BofA (NYSE:BAC) says fourth-quarter results were driven by escalating credit costs, including additions to reserves, and significant writedowns and trading losses in its capital-markets businesses.
"These actions reflect the deepening economic recession and extremely challenging financial environment, both of which significantly intensified in the last three months of 2008," BofA says.
BofA's provision for credit losses rose to $8.54 billion from $3.31 billion in the fourth quarter of 2007.
Global consumer and small-business banking and global wealth and investment management were profitable, boosted by BofA's expanding deposit business. However, BofA says negative results in capital markets and advisory services offset the bank's profitability in business lending and treasury services, which are part of BofA's global corporate- and investment-banking division.
Merrill Lynch's preliminary results indicate a fourth-quarter net loss of $15.31 billion, or $9.62 per diluted share, driven by severe dislocations in the capital markets.
As part of BofA's acquisition of Merrill Lynch, federal officials have given BofA an additional $20 billion in funds. The government also has agreed to provide protection against further losses on $118 billion in capital-markets exposure, primarily from the Merrill Lynch portfolio.
Under the agreement, BofA would cover the first $10 billion in losses and the government would cover 90 percent of any subsequent losses. BofA has agreed to pay a premium of 3.4 percent of those assets.
The latest assistance from the U.S. Treasury Department and the Federal Deposit Insurance Corp. come amid growing concerns about BofA's financial condition.
Federal officials announced the deal early this morning.
BofA's stock, which has traded between $7.35 and $45.08 over the last year, closed at $8.32 per share Thursday, down from Wednesday's closing price of $10.20. It dropped another 13.7 percent Friday, closing at $7.18 per share.
For the full year, BofA earned $2.56 billion, or 55 cents per diluted share, down from $14.8 billion, or $3.30 per diluted share.
Net interest income rose to $45.36 billion from $34.44 billion in 2007. Total noninterest income fell to $27.42 billion from $32.39 billion in the same period.
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Thursday, January 22, 2009
Charlotte, NC - Team Freeman Real Estate - Bank of America
An Italian court has acquitted Bank of America Corp. of charges related to events before April 2002 in a trial of five banks, Dow Jones Newswires reports. The case revolves around the collapse of Parmalat Finanziaria SpA, the Italian dairy conglomerate that collapsed in December
2003 in one of Europe's biggest financial scandals.
An Italian judge ordered BofA to go to trial on allegations that it failed to prevent three former employees from market rigging in connection with Parmalat. The former employees faced charges for vetting a news release issued by Parmalat in 1999 that Italian regulators claim was misrepresentative.
The charges against Charlotte-based BofA (NYSE:BAC) were administrative. Italian law stipulates that a company can be charged for not having proper governance in place to prevent illegal actions.
The other banks ordered to go to trial by Judge Cesare Tacconi were Citigroup Inc. (NYSE:C), Morgan Stanley (NYSE:MWD), Deutsche Bank AG (NYSE:DB) and UBS AB (NYSE:UBS). The banks have denied any wrongdoing.
According to Dow Jones Newswires, the Milan court acquitted BofA of charges related to events before April 2002, because at the time the law that attributes administrative responsibilities to companies wasn't in place yet.
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Aimee & Team Freeman
RE/MAX Executive Realty
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888-278-4935
2003 in one of Europe's biggest financial scandals.
An Italian judge ordered BofA to go to trial on allegations that it failed to prevent three former employees from market rigging in connection with Parmalat. The former employees faced charges for vetting a news release issued by Parmalat in 1999 that Italian regulators claim was misrepresentative.
The charges against Charlotte-based BofA (NYSE:BAC) were administrative. Italian law stipulates that a company can be charged for not having proper governance in place to prevent illegal actions.
The other banks ordered to go to trial by Judge Cesare Tacconi were Citigroup Inc. (NYSE:C), Morgan Stanley (NYSE:MWD), Deutsche Bank AG (NYSE:DB) and UBS AB (NYSE:UBS). The banks have denied any wrongdoing.
According to Dow Jones Newswires, the Milan court acquitted BofA of charges related to events before April 2002, because at the time the law that attributes administrative responsibilities to companies wasn't in place yet.
For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain
Aimee & Team Freeman
RE/MAX Executive Realty
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888-278-4935
Charlotte, NC - Team Freeman Real Estate - Charlotte Hotels Occupancy Falls
Occupancy at Charlotte-area hotel rooms fell to 49 percent in November, down 17 percent from a year earlier.
According to data from the Charlotte Regional Visitors Authority, local hotel occupancy fell 8.2 percent in the first 11 months of last year to 61.6 percent.
By comparison, in the first 11 months of 2008, hotel occupancy fell 4 percent in the United States and 6.6 percent in North Carolina.
The average room rate in the Charlotte area fell 1 percent to $81.40 in November.
For the first 11 months in 2008, the average daily rate was $87.36, up 4.9 percent from the same period in 2007.
That's more than the 3.7 percent increase in North Carolina and 2.8 percent increase nationwide.
Charlotte-market revenue per available room was $40.59 in November, down 17.7 percent from the same month in 2007.
In the first 11 months of the year, revenue per available room was $53.81 in the Charlotte area, down 3.7 percent from the same period in 2007.
It declined 1.3 percent in the United States and 3.1 percent in North Carolina in the same period.
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Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935
According to data from the Charlotte Regional Visitors Authority, local hotel occupancy fell 8.2 percent in the first 11 months of last year to 61.6 percent.
By comparison, in the first 11 months of 2008, hotel occupancy fell 4 percent in the United States and 6.6 percent in North Carolina.
The average room rate in the Charlotte area fell 1 percent to $81.40 in November.
For the first 11 months in 2008, the average daily rate was $87.36, up 4.9 percent from the same period in 2007.
That's more than the 3.7 percent increase in North Carolina and 2.8 percent increase nationwide.
Charlotte-market revenue per available room was $40.59 in November, down 17.7 percent from the same month in 2007.
In the first 11 months of the year, revenue per available room was $53.81 in the Charlotte area, down 3.7 percent from the same period in 2007.
It declined 1.3 percent in the United States and 3.1 percent in North Carolina in the same period.
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RE/MAX Executive Realty
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888-278-4935
Charlotte, NC - Team Freeman Real Estate - Family Dollar Raises Dividend 8%
Family Dollar Stores Inc. has increased its quarterly dividend by 8 percent.
The Matthews-based discount chain has declared a quarterly cash dividend on its common stock of 13.5 cents per share, payable April 15 to shareholders of record on March 13.
The company's previous quarterly cash dividend was 12.5 cents per share.
"Increasing our dividend for the 33rd consecutive year reflects our confidence in the long-term growth opportunity for Family Dollar," says Howard Levine, chief executive.
Last week, the company reported a 14.1 percent increase in earnings for its first fiscal quarter ended Nov. 29.
Family Dollar earned $59.3 million, or 42 cents per diluted share, up from $51.9 million, or 37 cents per diluted share, a year earlier.
Revenue rose 4.2 percent to $1.75 billion, and comparable-store sales increased 2.1 percent.
Family Dollar (NYSE:FDO) operates more than 6,600 stores in 44 states.
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Aimee & Team Freeman
RE/MAX Executive Realty
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888-278-4935
The Matthews-based discount chain has declared a quarterly cash dividend on its common stock of 13.5 cents per share, payable April 15 to shareholders of record on March 13.
The company's previous quarterly cash dividend was 12.5 cents per share.
"Increasing our dividend for the 33rd consecutive year reflects our confidence in the long-term growth opportunity for Family Dollar," says Howard Levine, chief executive.
Last week, the company reported a 14.1 percent increase in earnings for its first fiscal quarter ended Nov. 29.
Family Dollar earned $59.3 million, or 42 cents per diluted share, up from $51.9 million, or 37 cents per diluted share, a year earlier.
Revenue rose 4.2 percent to $1.75 billion, and comparable-store sales increased 2.1 percent.
Family Dollar (NYSE:FDO) operates more than 6,600 stores in 44 states.
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RE/MAX Executive Realty
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888-278-4935
Charlotte, NC - Team Freeman Real Estate - IKEA readies for Charlotte opening
Swedish home-furnishings giant Ikea is putting the final touches on its first Carolinas store, which opens in five weeks in the University area.
The 356,000-square-foot store will be one of the chain's largest. It will feature three model homes and 49 room vignettes, including 17 kitchens. Shoppers will be able to buy more than 10,000 exclusively designed products - from furniture to art, tableware and even food.
Ikea is known for low-priced furnishings that customers assemble at home.
But it has expanded its offerings and services in recent years. For example, complete kitchen setups can be purchased from about $1,800 to $3,800, including Ikea-branded appliances, cabinets and countertops.
Ikea now offers on-site designers to help shoppers create complete rooms, take measurements and recommend contractors to assemble the furniture. The store also can arrange home delivery.
And customers can rent vans at the store to take their purchases home.
"We've taken a product that is pretty good and made it fantastic," says Joseph Roth, Ikea spokesman.
Most of the store's 400 employees have been hired and are working to assemble the furniture and displays. The store is opening ahead of schedule on Feb. 18, anchoring a new Crescent Resources development off the newly created City Boulevard exit on Interstate 85.
Roth says it normally takes up to 13 months to open an Ikea store. The company broke ground for the Charlotte Ikea in April and expects to open within 10 months. Roth says the accessibility of the site and good weather contributed to the fast pace of construction.
Shoppers can start lining up 24 hours before the opening. Ikea openings can attract several thousand shoppers for a grand opening.
Ikea, founded in 1943, is a privately owned retailer based in Helsingborg, Sweden. Its U.S. sales in 2008 topped $3.2 billion. The chain has more than 280 stores around the world
For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain
Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935
The 356,000-square-foot store will be one of the chain's largest. It will feature three model homes and 49 room vignettes, including 17 kitchens. Shoppers will be able to buy more than 10,000 exclusively designed products - from furniture to art, tableware and even food.
Ikea is known for low-priced furnishings that customers assemble at home.
But it has expanded its offerings and services in recent years. For example, complete kitchen setups can be purchased from about $1,800 to $3,800, including Ikea-branded appliances, cabinets and countertops.
Ikea now offers on-site designers to help shoppers create complete rooms, take measurements and recommend contractors to assemble the furniture. The store also can arrange home delivery.
And customers can rent vans at the store to take their purchases home.
"We've taken a product that is pretty good and made it fantastic," says Joseph Roth, Ikea spokesman.
Most of the store's 400 employees have been hired and are working to assemble the furniture and displays. The store is opening ahead of schedule on Feb. 18, anchoring a new Crescent Resources development off the newly created City Boulevard exit on Interstate 85.
Roth says it normally takes up to 13 months to open an Ikea store. The company broke ground for the Charlotte Ikea in April and expects to open within 10 months. Roth says the accessibility of the site and good weather contributed to the fast pace of construction.
Shoppers can start lining up 24 hours before the opening. Ikea openings can attract several thousand shoppers for a grand opening.
Ikea, founded in 1943, is a privately owned retailer based in Helsingborg, Sweden. Its U.S. sales in 2008 topped $3.2 billion. The chain has more than 280 stores around the world
For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain
Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935
Charlotte, NC - Team Freeman Real Estate - B of A Stocks Plummets
Bank of America Corp.'s stock, which had already dropped more than 27 percent this month, fell another 18 percent in Thursday trading.
BofA's stock, which has traded between $10.01 and $45.08 over the last year, closed at $8.32 per share Thursday, down from Wednesday's closing price of $10.20.
The drop in value follows a report from The Wall Street Journal late Wednesday that the federal government may commit billions more in aid to BofA as it acquires Merrill Lynch & Co. Inc.
According to the report, which cites individuals familiar with the situation, discussions over the funds began last month when BofA told the U.S. Treasury Department it might not acquire Merrill because of the securities firm's larger-than-expected losses in the fourth quarter.
The government agreed to a plan that includes new federal funds because it was concerned that a failed deal could affect the financial markets.
The report says details are slated to be released Tuesday when BofA announces its fourth-quarter earnings.
A possible arrangement might protect BofA from some losses on Merrill's bad assets, the newspaper says.
A BofA spokesman had no comment on the Journal 's report.
So far, BofA has received $25 billion through the federal bailout of the nation's financial system. Under the Troubled Asset Relief Program (TARP) program, the Treasury Department is purchasing up to $250 billion in preferred stock in U.S. banks. The program was designed to stabilize the ailing financial system and to encourage banks to increase lending and stimulate the economy.
The bank received $15 billion in late October. Another $10 million was originally intended for Merrill. Because BofA acquired the securities firm Jan. 1, the Charlotte-based bank (NYSE:BAC) got the $10 billion. Treasury forwarded the funds through the Troubled Asset Relief Program on Jan 9.
Concerns have grown about BofA's financial position in recent weeks. The $2.7-trillion-asset bank has enormous exposure to consumer loans, which are deteriorating along with the economy. It also is juggling two merger integrations in Countrywide Financial Corp. and Merrill, eliminating 42,500 jobs across the company tied to those two deals.
This week Citigroup Inc. (NYSE:C) analyst Keith Horowitz said he expected BofA to post a $3.6 billion loss in the fourth quarter, and he also believes the company will cut its dividend again, to 5 cents from 32 cents. In the third quarter the bank cut its dividend by 50 percent.
In a research note last night, Standard & Poor's analyst Stuart Plesser said that even with additional government funding, BofA's capital levels will still be low relative to peers. Banks are required to maintain a certain amount of capital to protect against loan losses, and Plesser expects BofA will likely have to raise additional equity capital in the coming months and cut its dividend again. A capital raise via a common stock offering would dilute existing shareholders' equity further; in October the bank raised $10 billion in new capital through a common stock offering. Plesser continues to rate BofA's shares a "sell."
Christoper Mutascio, an analyst with Stifel Nicolaus, says he is reserving judgment on the latest capital infusion from the government. In a note this morning, Mutascio says while "the initial take on this is negative," the devil will be in the details and terms of the capital infusion. If the government assistance is "punitive, then it is a bailout of (BofA), which is not good. If it is advantageous then it would appear that (BofA) earned some ‘goodwill' from the federal government and any initial negative reaction would be premature." Mutascio rates the shares a "buy."
BofA reported net income of $1.17 billion in the third quarter, down from $3.7 billion a year earlier. Analysts polled by Thomson Financial expect the company to report fourth-quarter earnings of $1.2 billion, or 8 cents per share.
For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain
Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935
BofA's stock, which has traded between $10.01 and $45.08 over the last year, closed at $8.32 per share Thursday, down from Wednesday's closing price of $10.20.
The drop in value follows a report from The Wall Street Journal late Wednesday that the federal government may commit billions more in aid to BofA as it acquires Merrill Lynch & Co. Inc.
According to the report, which cites individuals familiar with the situation, discussions over the funds began last month when BofA told the U.S. Treasury Department it might not acquire Merrill because of the securities firm's larger-than-expected losses in the fourth quarter.
The government agreed to a plan that includes new federal funds because it was concerned that a failed deal could affect the financial markets.
The report says details are slated to be released Tuesday when BofA announces its fourth-quarter earnings.
A possible arrangement might protect BofA from some losses on Merrill's bad assets, the newspaper says.
A BofA spokesman had no comment on the Journal 's report.
So far, BofA has received $25 billion through the federal bailout of the nation's financial system. Under the Troubled Asset Relief Program (TARP) program, the Treasury Department is purchasing up to $250 billion in preferred stock in U.S. banks. The program was designed to stabilize the ailing financial system and to encourage banks to increase lending and stimulate the economy.
The bank received $15 billion in late October. Another $10 million was originally intended for Merrill. Because BofA acquired the securities firm Jan. 1, the Charlotte-based bank (NYSE:BAC) got the $10 billion. Treasury forwarded the funds through the Troubled Asset Relief Program on Jan 9.
Concerns have grown about BofA's financial position in recent weeks. The $2.7-trillion-asset bank has enormous exposure to consumer loans, which are deteriorating along with the economy. It also is juggling two merger integrations in Countrywide Financial Corp. and Merrill, eliminating 42,500 jobs across the company tied to those two deals.
This week Citigroup Inc. (NYSE:C) analyst Keith Horowitz said he expected BofA to post a $3.6 billion loss in the fourth quarter, and he also believes the company will cut its dividend again, to 5 cents from 32 cents. In the third quarter the bank cut its dividend by 50 percent.
In a research note last night, Standard & Poor's analyst Stuart Plesser said that even with additional government funding, BofA's capital levels will still be low relative to peers. Banks are required to maintain a certain amount of capital to protect against loan losses, and Plesser expects BofA will likely have to raise additional equity capital in the coming months and cut its dividend again. A capital raise via a common stock offering would dilute existing shareholders' equity further; in October the bank raised $10 billion in new capital through a common stock offering. Plesser continues to rate BofA's shares a "sell."
Christoper Mutascio, an analyst with Stifel Nicolaus, says he is reserving judgment on the latest capital infusion from the government. In a note this morning, Mutascio says while "the initial take on this is negative," the devil will be in the details and terms of the capital infusion. If the government assistance is "punitive, then it is a bailout of (BofA), which is not good. If it is advantageous then it would appear that (BofA) earned some ‘goodwill' from the federal government and any initial negative reaction would be premature." Mutascio rates the shares a "buy."
BofA reported net income of $1.17 billion in the third quarter, down from $3.7 billion a year earlier. Analysts polled by Thomson Financial expect the company to report fourth-quarter earnings of $1.2 billion, or 8 cents per share.
For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain
Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935
Charlotte, NC - Team Freeman Real Estate - Charlotte DOT
Danny Pleasant has been named director of the Charlotte Department of Transportation.
Pleasant became interim director after the retirement of Jim Humphrey in late 2007. He has worked in executive positions at the department for seven years.
The department is responsible for Charlotte's road planning and operations.
"Danny has proven to be an effective leader during his tenure as interim director, helping to position Charlotte as a national model for land-use and transportation choices," says City Manager Curt Walton. "His strategic planning and urban design expertise will help guide the city as we prepare for the future in terms of managing growth, sustaining a high quality of life and accommodating more residents."
Pleasant says he will focus on enhancing services to developers, streamlining the development-review processes, improving the speediness of project delivery and finding a balance between transportation and economic-development objectives.
For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain
Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935
Pleasant became interim director after the retirement of Jim Humphrey in late 2007. He has worked in executive positions at the department for seven years.
The department is responsible for Charlotte's road planning and operations.
"Danny has proven to be an effective leader during his tenure as interim director, helping to position Charlotte as a national model for land-use and transportation choices," says City Manager Curt Walton. "His strategic planning and urban design expertise will help guide the city as we prepare for the future in terms of managing growth, sustaining a high quality of life and accommodating more residents."
Pleasant says he will focus on enhancing services to developers, streamlining the development-review processes, improving the speediness of project delivery and finding a balance between transportation and economic-development objectives.
For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain
Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935
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