Bank of America: Earnings Loser (Update 1)

Updated with market close information.

NEW YORK ( TheStreet) -- Bank of America ( BAC) was the big loser among the largest U.S. financial names on Wednesday, with shares declining 5% to close at $11.70.

The Dow Jones Industrial Average and the S&P 500 ( SPX.X) index ended the session 1% declines, while the Nasdaq saw a 2% decline, after a disappointing first-quarter earnings report from Bank of America.

Oil and other commodity prices were also showing declines, after a prominent Chinese auditor warned local government debt in China was " out of control," according to the Financial Times.

Zhang Ke, of the accounting firm ShineWing, was quoted as saying "we audited some local government bond issues and found them very dangerous, so we pulled out," and that most of the municipal governments "don't have strong debt servicing abilities. Things could become very serious."

Shares of Apple ( AAPL) also weighed heavily on the market, sank 5.5% to close at $402.80, amid investor fear that disappointing earnings results from Cirrus Logic ( CRUS) -- one of Apple's suppliers -- could point to a weak first-quarter for the manufacturer of the iPhone.

Turning back to financials, the KBW Bank Index ( I:BKX) was down 2% to close at 54.52, with all 24 index components showing declines, except for PNC Financial Services ( PNC), which was up slightly to close at $65.05. The Pittsburgh-based regional lender reported strong first-quarter results, with revenue increases and expense reductions, and beat the consensus earnings estimate by a wide margin. Please see TheStreet's earnings coverage for full details on PNC's results.

Bank of America Disappoints

Bank of America reported a first-quarter profit of $2.6 billion, or 20 cents a share, increasing from $732 million, or 3 cents a share in the fourth quarter, and $653 million, or 3 cents a share, in the first quarter of 2012. Pretax results for the fourth quarter had been lowered by $2.5 billion in costs for independent foreclosure reviews, and $2.7 billion in charges related to the company's $10.3 billion settlement of a long-term dispute with Fannie Mae ( FNMA), over mortgage repurchase claims.

The first-quarter results disappointed investors, coming in below the consensus analyst estimate of a 22 cents a share.

Bank of America's first-quarter revenue totaled $23.7 billion, increasing from $22.5 billion a year earlier, and coming in ahead of the consensus estimate of $23.41 billion.

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