Bank of America posts profit, surprises investors

Waking up this morning to find Bank of America posted a profit on their stock was great.

I've own Bank of America stock since Oct. 2007 and while I will say that purchasing it at $35.50 still have me at a loss, I hope the stock rises.

Depending on what the stock do today and in a few days, I might double on on my holding to bring my cost basis down.

Bank of America managed to avoid a loss in the first quarter, surpassing analysts' expectations and providing further evidence the banking sector might be improving.

The company says it earned $2.81 billion after paying preferred dividends, or 44 cents per share. Analysts expected profit of 4 cents per share.

However, Bank of America recorded a $13.4 billion loan-loss provision, proving that it is not immune from deteriorating credit quality and growing unemployment.

With better-than-expected profit is the latest in a string of bank earnings that have beat expectations, including JPMorgan Chase and Citigroup.

Bank of America has received $45 billion in government funds as part of the Treasury Department's $700 billion financial rescue package.