UPDATE 2-BofA earnings may stay under pressure-Oppenheimer

* Sees "ugly" period for credit

* Sees net charge-offs peaking this year

* May prefer to repay TARP in two stages

* Sees completion of capital raising

* Shares down about 1 pct (Recasts; adds analyst's comments, background)

NEW YORK, May 29 (Reuters) - Bank of America Corp's (BAC.N: Quote, Profile, Research) earnings will likely suffer for some time as the bank keeps building reserves and faces a few more quarters of credit problems, Oppenheimer & Co analysts said after meeting with top executives of the bank.

The analysts, led by Chris Kotowski, said they met with the executives, including Chief Executive Kenneth Lewis, Chief Financial Officer Joe Price and Chief Risk Executive Amy Brinkley, on Wednesday.

Top executives of the largest U.S. bank expect the next two or three quarters to be "ugly" for the bank and for the industry as a whole in terms of credit defaults and nonperforming assets, but they see net charge-offs -- debt the company believes they will never collect -- peaking sometime in 2009, Kotowski wrote.

Core operating earnings are likely to be nominal in 2009 as most profits will be set aside for reserves, Kotowski said, but earnings may turn higher in 2010 as reserve building stops.