Bank of America Corp said credit-card defaults increased in August as unemployment rose to its highest rate in 26 years.

The credit card charge-off rate -- loans the company does not expect to be repaid -- rose to 14.54 percent in August from 13.81 percent in July, according to a regulatory filing on Tuesday.

Bank of America shares fell 0.35 percent to $16.93 in morning trading on the New York Stock Exchange.

(Reporting by Juan Lagorio; editing by John Wallace)

Bank of america