Economy

Bank of America profits up in first quarter

Bank of America Corp. this morning reported a first-quarter profit, a shake-up in its executive ranks and an agreement to settle mortgage loan buyback requests from an insurer.

The Charlotte-based bank, after two consecutive money-losing years, reported a first-quarter profit for common shareholders of $1.7 billion, down 39 percent from a $2.8 billion gain a year earlier. The results were hurt by higher mortgage-related and legal expenses and helped by an overall reduction in loan losses and improved results in commercial banking and wealth management.

In a surprise move, the bank said chief financial officer Chuck Noski, with the company less than a year, will become vice chairman and hand his duties to chief risk officer Bruce Thompson by the end of the second quarter. Noski, 58, intended to relocate to Charlotte this summer but has told chief executive Brian Moynihan he can’t do so because of an illness to a close family member, the bank said.

Bank of America also named Morgan Stanley vice chairman Gary Lynch global chief of legal, compliance and regulatory relations, based in New York. The bank’s current general counsel, Ed O’Keefe, will report to Lynch, 60, who will join the company after an industry-required time-off period.

Noski will be based in Los Angeles and continue to advise management and help with client development. Thompson, 46, will keep his chief risk officer title until a search for a replacement is completed. He is based in Charlotte.

Read the complete story at charlotteobserver.com

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