BofA's CFO: Florida's in 'hard downdraft'
Bank of America chief financial officer Joe Price can tell you right off the bat which is BofA's most troubled state: Florida.
The banking giant on Monday reported a $4.25 billion profit, more than tripling from a year earlier. But the retail and commercial banking, credit card, and mortgage businesses show no signs of a recovery. And BofA had to set aside more money for delinquent loans, and profit margins in some businesses contracted.
Price, during a conference call with analysts Monday, said he sees credit card delinquencies rising, especially in California and Florida. But choosing between the two states, he said California looked better than Florida in credit card and mortgage losses. Said Price: "I think Florida, you continue to see some pretty hard downdraft in that one."
Analyst Meredith Whitney of Meredith Whitney Advisory LLC asked Price: "So nothing further in terms of weak spots regionally? Hot spots regionally? Or exposure that you worry about?"
Price responded: "Like I said, it’s more of a broader spread as opposed to real hot spots beyond that, but I’d probably still put Florida at the top of your and our list of focus."
-- Robert Trigaux, Times Business Columnist