Tomahawk, WI 04/16/2014 (Basicsmedia) – Bank of America Corp (NYSE:BAC) was the last of the four banking titans to report its 1Q2014 earnings and it has posted disappointing figures.

Two Good Guys, Two Bad Guys

If you want to look at things from a 30,000 ft perspective, two banks posted good results and these were Wells Fargo & Co (NYSE:WFC) and Citigroup Inc (NYSE:C). Two banks posted negative results and these were JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corp (NYSE:BAC).

Quarterly Loss of $276 Million

The legal and settlement expenses of $6.3 billion for Bank of America are not exactly a surprise and they weighed down the bank’s results heavily, perhaps more heavily than analysts’ expectation.

The bank reported 1Q2014 loss of $276 million or $0.05 cents per share as against a profit of $1.5 billion or $0.10 cents per share in 1Q2013. The revenues for 1Q2014 came in at $22.76 billion.

Its consumer real estate division—including mortgage banking—reported a loss of $5 billion.

The bank agreed to pay $6.3 billion to the Federal Housing Administration (FHA) to settle a lawsuit related to mortgage-backed securities that it had sold to Fannie Mae and Freddie Mac before the financial crisis and it will additionally repurchase mortgage securities from Fannie and Freddie worth about $3.2 billion.

These so-called private-label mortgage-backed securities were sold by Bank of America and entities such as Countrywide Financial and Merrill Lynch that the bank acquired after the financial crisis of 2009.

Compared To Its Peers

Bank of America Corp (NYSE:BAC)’s results mirror those of its Wall St peers Citigroup and JPMorgan. Its fixed-income trading operations suffered just as those of Citigroup’s and JPMorgan’s did. Only Wells Fargo has been the outlier in this regard as it’s more focused on consumer banking and hence reaped the benefits of its West Coast location and lower dependence on Wall St and fixed-income tradition activities.

Still A Good Long-Term Bet

Despite a total of $50 billion that the bank has spent since 2010 in legal fees and settlements, it is fundamentally a strong long-term play.

To position itself more strongly for the future, Bank of America Corp (NYSE:BAC) has cut its staff by about 46,000 (or 16% of its total staff) since 2010.

After successfully passing the Dodd-Frank stress tests administered by the Federal Reserve last month, it announced a rise in its dividend payment for the first time since the financial crisis.

Even though shares are down by less than 1% today in pre-market trading, the bank’s shares are up by 34.68% in the last year easily beating its three peers Citigroup, JPMorgan, and Wells Fargo.

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