Bank of America Corporation (BAC) reported its first-quarter earnings last week. The banking giant reported net income of $653 million for the first quarter of 2012. On an earnings per share basis, the bank earned income of $0.03 per share. In the comparable period last year, Bank of America's net income was $2.0 billion or $0.17 per share.

"By focusing on building strong customer and client relationships, we're doing more business and winning in the marketplace," said Chief Executive Officer Brian Moynihan. "Our strategy is paying off. With the economy steadily improving and because of the work we have done to strengthen and simplify our company, we saw improved profitability in all of our businesses this quarter compared to the fourth quarter of last year."

Bank of America is based in Charlotte, North Carolina. With 57 million customers from more than 40 countries, Bank of America operates 5,700 retail-banking offices and 17,250 ATMs.

Shares of Bank of America Corporation (BAC) closed the week at $8.36 per share.

BB&T Bank's Earnings Rise in Latest Report

Winston-Salem, N.C.-based BB&T Corporation (BBT) reported its first-quarter earnings last week. The bank reported significant gains signaling the health of the financial services industry. BB&T reported net income of $431 million in the first quarter of 2012, an increase of 92% above the first quarter earnings in the prior year. In Q1 of 2011, BB&T reported earnings of $225 million.

On an earnings per share basis, BB&T reported earnings of $0.61. BB&T's earnings per share nearly doubled from the comparable period last year in which earnings were $0.32 per share. "BB&T also significantly reduced credit-related costs this quarter," Kelly S. King, BB&T's Chairman and Chief Executive Officer stated. "Net charge-offs fell to 1.28% of average loans and leases in the quarter compared to 1.46% last quarter and losses are expected to continue to trend lower this year. In addition, costs related to foreclosed properties decreased significantly reflecting progress in our cost reduction strategies."

For the week, shares of BB&T Corp (BBT) closed at $31.58.

Fifth Third Bank Reports Impressive Earnings Results

Fifth Third Bancorp (FITB) reported its first-quarter earnings last week. The Ohio-based bank reported impressive earnings. The bank reported net income of $430 million, compared to $314 million in the previous quarter and $265 million in the same period last year. Fifth Third's earnings per share came in at $0.45 per share compared to $0.10 per share in the comparable period last year.

"It was a strong earnings quarter for Fifth Third and we're pleased with our results," stated Kevin Kabatt, Fifth Third's President and Chief Executive Officer. "It was a good start to 2012. We feel good about our momentum and positioning in this environment, and will continue to execute our strategic plans to make this a great year for the company."

Fifth Third Bancorp is a financial services company headquartered in Cincinnati, Ohio. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Its operations include 1.315 full service banking centers and 2,404 ATMS in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina.

Fifth Third Bank Corp (FITB) closed the week at $13.95 per share.

The Dow started the week at 12,801 and closed at 13,029. The S&P 500 started the week at 1,343 and ended at 1,379. The NASDAQ started the week at 2,904 and finished at 3,000.

For the first time in nearly six months, German business confidence has declined. The decline is attributed to fears that economic growth may once again be threatened by concerns over Europe's sovereign debt. Germany's economy contracted in the fourth quarter of last year as a result of spending cuts across Europe. German exports fell as demand for German goods declined across the Euro-region declined.

All is not bad news for Europe's largest economy as German unemployment is at a two-decade low. Low unemployment has boosted domestic consumption, helping Germany avoid a recession. AlineSchuiling, a senior economist with ABN Amro NV commented on the Euro-debt issue and the German economy stating, "The German economy stabilized in the first quarter but the sovereign debt crisis is flaring up again and companies are getting reluctant to place orders."

The 10-year Treasury note yield finished the week at 1.97% while the 30-year Treasury note yield finished the week at 3.11%.

Freddie Mac issued its most recent Primary Mortgage Market Survey (PMMS) at the end of last week. Freddie Mac reported that the interest rates for fixed rate mortgages (FRM) rose slightly, ending three straight weeks of declines.

Freddie Mac reported that the 30-year FRM averaged 3.90% for the week. Last week, the 30-year FRM averaged 3.88%. At this time last year, the 30-year mortgage averaged 4.80%.The 15-year FRM average also increased over the past week. The 15-year mortgage averaged 3.13%, up from a record low of 3.11% a week ago. Last year, the 15-year mortgage averaged 4.02%.

"Fixed mortgage rates held relatively stable this week amid signs that inflation remains in check," stated Frank Nothaft, Freddie Mac's vice president and chief economist. "Industrial production was flat in March, a reading below the market consensus forecast. Meanwhile, both headline inflation gauges (the consumer and producer price indexes) for March were in line with market expectations."

The money market fund finished this week at 0.50%. The 1-year CD finished at 0.70%.