Bank of America Earnings Fall 39%

Filed under: Bank of America (BAC)

Bank of America Corp.'s first-quarter income fell 39 percent on higher costs related to its mortgage business and higher litigation expenses. The bank also settled a claim over faulty mortgage investments and set aside less money to cover soured loans.



The Charlotte, N.C. bank on Friday said it earned $1.7 billion, or 17 cents per share, compared with $2.8 billion, or 28 cents a share in the first quarter of last year. The earnings fell short of the 28 cents a share estimated by analysts surveyed by FactSet.



Revenue fell to $26.9 billion from $32 billion in the same period last year.



The nation's largest bank by assets also announced that the bank's chief risk officer, Bruce Thompson, will become chief financial officer, replacing Chuck Noski, who was named vice chairman. Noski couldn't relocate to Charlotte to fulfill his CFO duties because of an illness of a close family member, the bank said in a statement.



Bank of America continued to fight losses, lawsuits and higher costs related to its mortgage businesses. Its real estate services business reported a loss of $2.4 billion compared to loss of $2.1 billion for the same period in 2010.

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