Bank of America to lay off more than 200 in Norfolk

Feb. 04--Bank of America plans to lay off 202 employees in a loan servicing unit in Norfolk by March 29 because of the continuing decline in the number of delinquent mortgages, the company confirmed Tuesday.

Notice of the Bank of America layoff appeared on the Virginia Workforce Network's online listing of planned layoffs or closures.

In 2011, Charlotte, N.C.-headquartered Bank of America created a division specializing in assisting mortgage customers who were at risk of foreclosure or defaulting on their home loans, spokeswoman Jumana Bauwens said in an emailed statement. The number of delinquent mortgage loans has since dropped to "one-seventh of their peak levels."

"Now, we are in the process of returning to normal staffing levels," Bauwens continued.

Affected employees may apply for other open positions, she said. While Bauwens declined to say how many mortgage-servicing employees were left in Norfolk, she said Bank of America's legacy asset servicing division companywide had 15,800 employees as of the fourth quarter. That's down from 42,000 workers in that division at its peak in 2012, according to an Associated Press report.

Bank of America says it will continue to provide help to customers at risk of foreclosure, and is maintaining staff to help administer consumer relief -- in the form of loan modifications or new loans for borrowers with good credit -- as part of the company's $7 billion civil settlement with the Department of Justice.

That settlement announced in August also included nearly $10 billion in fines connected with mortgage fraud practices by Countrywide Financial Corp. and Merrill Lynch before Bank of America acquired them. According to the Department of Justice, Bank of America also conceded that it originated risky mortgages and misrepresented the quality of loans to investors in residential mortgage-backed securities.

TowneBank grows regional market share

In other local banking news, Suffolk-based TowneBank on Tuesday reported record earnings for the year again at $42.2 million in 2014, up from $41.8 million in 2013.

The bank also increased its Hampton Roads deposit market share to 16.7 percent -- the second largest after Wells Fargo at 20.4 percent. TowneBank's total deposits increased 7.8 percent to $3.85 billion. Additionally, TowneBank says its Norfolk Wards Corner branch that opened in June had $42.9 million in deposits by the end of the year.

Year-to-year, net interest income increased 1.3 percent from $143.9 million to $145.7 million while noninterest income increased 7.6 percent from $89.9 million to $96.7 million, according to the bank's financial statement. Total 2014 revenues increased 3.4 percent, with insurance commissions rising 22 percent.

Total bank assets reached $4.98 billion, a 6.6 percent increase from 2013. Nonperforming assets decreased nearly 20 percent from 2013.

TowneBank completed its acquisition of Richmond-based Franklin Financial Corp, opening eight branches in the Richmond area as TowneBank on Jan. 5.

5 largest banks in Hampton Roads

The five largest Hampton Roads banks based on deposit market share as of June 30, according to the Federal Deposit Insurance Corp.: Wells Fargo, 20.4 percent; TowneBank, 16.7 percent; SunTrust Bank, 16.2 percent; BB&T, 13.5 percent; and Bank of America, 10.8 percent.

Bozick can be reached by phone at 757-247-4741. Sign up for a free weekday business news email at TidewaterBiz.com.

___

(c)2015 Daily Press (Newport News, Va.)

Visit the Daily Press (Newport News, Va.) at www.dailypress.com

Distributed by Tribune Content Agency, LLC