The bank earned $340 million in the most recent quarter, which works out to a fraction of a penny per share. Financial analysts expected an 11-cent loss, according to a poll by data provider FactSet. 

Last month, Bank of America announced it would settle a legal dispute with shareholders who said the bank misled them about its purchase of Merrill Lynch, announced in 2008. 

Profits were also hurt by a controversial accounting rule that cuts into banks' net income when the value of their corporate debt rises. 

Without those charges, Bank of America revenue was essentially flat at $22.5 billion, beating the expected $21.9 billion.

(Copyright 2012 by The Associated Press. All Rights Reserved.)