Bank of America (NYSE: BAC) has released its first-quarter earnings report, surpassing expectations on both the top and bottom lines. However, investors are expressing some concerns over elevated expenses and charge-offs of bad loans that exceeded expectations, leading to a slight dip in the bank's stock price.

For the first quarter, Bank of America reported earnings of $0.83 per share on sales of $25.82 billion, outperforming Wall Street's consensus estimate of $0.77 per share profit on sales of $25.46 billion. Although revenue dipped by 2% compared to the previous year, higher investment banking and trading revenues could not fully offset lower net interest income.

The consumer banking segment experienced a 5% decline in revenue, and average deposits were down 7%. However, they remain above pre-pandemic levels. The bank added 245,000 new checking accounts during the quarter, witnessing sturdy growth in its global wealth management, banking, and markets divisions.

Bank of America's CEO, Brian Moynihan, highlighted the strong performance of the company's businesses and expressed optimism regarding continued earnings growth and effective expense management. However, concerns have arisen over the increased expenses and higher charge-offs for bad loans, totaling $1.5 billion. This figure marks a 26% increase from the previous quarter and is significantly higher than the estimated $1.26 billion.

Bank officials attributed the elevated charge-off number to credit card issues, which they believe are recovering from the final months of 2023. Additionally, one-time issues in the quarter included a $700 million special assessment from the Federal Deposit Insurance Corp. that was paid by all large banks to offset regional bank failures from the previous year.

Despite the challenges, Bank of America continues to demonstrate resilience in a turbulent economic environment. Investors seeking exposure to large national banking franchises are advised to consider Bank of America as a potential investment opportunity.

It is worth noting that The Motley Fool's Stock Advisor analyst team recently identified the top 10 stocks they believe will deliver significant returns in the coming years, and Bank of America did not make the list. The Stock Advisor service offers investors a comprehensive blueprint for success, providing guidance on portfolio building and offering regular updates and two new stock picks each month. Since 2002, the Stock Advisor service has delivered returns that have quadrupled those of the S&P 500.

Bank of America's Q1 performance indicates strength and resilience, despite some concerns over elevated expenses and bad loans. Investors should monitor the bank's progress going forward to gauge its ability to navigate the challenging economic landscape.