Bank of America reported net income of $340 million for the third quarter of 2012, compared to $6.2 billion in the third quarter of 2011.

The bank noted that earnings were negatively impacted by $1.9 billion of debit valuation and fair value option adjustments related to the improvement in the company’s credit spreads, $1.6 billion for total litigation expense, including a charge for the settlement of the Merrill Lynch class action litigation, and a charge of $0.8 billion related to the re-pricing of certain deferred tax assets due to a reduction in the U.K. corporate tax rate.

“We are doing more business with our customers and clients: Deposits are up; mortgage originations are up; we surpassed 11 million in mobile customers; small business lending is up 27% year over year; loans to our commercial clients rose for the seventh consecutive quarter; and our corporate clients made us the second-ranked global investment banking firm,” said Brian Moynihan, chief executive officer. “Our strategy is taking hold even as we work through a challenging economy and continue to clean up legacy issues.”

To read the Bank of America news release click here.