By The Associated Press
2014-04-17 03:01 AM
CHARLOTTE, North Carolina (AP) -- Bank of America said Wednesday that it swung to a loss in the first quarter, hurt by $6 billion in legal charges.
The Charlotte, North Carolina, bank reported a loss applicable to common shareholders of $514 million, compared with a profit of $1.11 billion a year earlier.
The loss amounted to 5 cents a share. A year earlier, the bank earned 10 cents a share.
Revenue totaled $22.66 billion after stripping out an accounting change. That was down 3.8 percent from last year.
The $6 billion legal expense stems from a previously announced settlement with the Federal Housing Finance Agency, and additional reserves for other mortgage-related matters.
The bank also said it reached a settlement with the Financial Guaranty Insurance Company, as well as separate settlements with The Bank of New York Mellon, over residential mortgage-backed securities.
The bank continues to slim down as a result of the financial crisis. The bank had 238,600 full-time employees this quarter, down from 262,800 employees from a year ago. It reduced the number of bank branches to 5,095, a 5 percent less than a year earlier.
Bank of America shares fell 35 cents, or 2 percent, to $16.04 in midday Wednesday trading.