← Back to BAC filing summaryOriginal filing text · Part I
Item 2 — Management's Discussion and Analysis
Bank of America Corp · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
View complete filing on SEC EDGAR ↗This is the extracted source text from the SEC filing. Formatting may differ from the original document.
Executive Summary 3
Recent Developments 3
Financial Highlights 4
Supplemental Financial Data 6
Business Segment Operations 10
Consumer Banking 10
Global Wealth & Investment Management 12
Global Banking 14
Global Markets 16
All Other 18
Managing Risk 19
Capital Management 19
Liquidity Risk 23
Credit Risk Management 27
Consumer Portfolio Credit Risk Management 27
Commercial Portfolio Credit Risk Management 32
Non-U.S. Portfolio 38
Allowance for Credit Losses 39
Market Risk Management 41
Trading Risk Management 41
Interest Rate Risk Management for the Banking Book 43
Mortgage Banking Risk Management 45
Critical Accounting Estimates 45
Current Accounting Developments 45
Non-GAAP Reconciliations 46
Item 3. Quantitative and Qualitative Disclosures about Market Risk 46
Item 4. Controls and Procedures 46
1 Bank of America
Part II. Other Information
Item 1. Legal Proceedings 103
Item 1A. Risk Factors 103
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 103
Item 5. Other Information 103
Item 6. Exhibits 104
Signature 104
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Bank of America Corporation (the Corporation) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “outlook,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Corporation’s current expectations, plans or forecasts of its or its business segments’ future results, which may include, among other measures, revenue, liquidity, net interest income, other income, provision for credit losses, expenses, operating leverage, effective tax rate, efficiency ratio, capital measures, deposits and assets, as well as strategy, future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Corporation’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.
You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K and in any of the Corporation’s subsequent U.S. Securities and Exchange Commission (SEC) filings: the Corporation’s potential judgments, orders, settlements, penalties, fines and reputational damage, which are inherently difficult to predict, resulting from pending, threatened or future litigation and regulatory inquiries, demands, requests, investigations, proceedings and enforcement actions, which the Corporation is subject to in the ordinary course of business, including matters related to our processing of unemployment benefits for California and certain other states, the features of our automatic credit card payment service, the adequacy of the Corporation’s anti-money laundering and economic sanctions programs and the processing of electronic payments, including through the Zelle network, and related fraud, which are in various stages; in connection with ongoing litigation, the impact of certain changes to Visa’s and Mastercard’s respective card payment network rules and reductions in interchange fees for U.S.-based merchants; the possibility that the Corporation’s future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, and regulatory and government actions; the impact of U.S. and global interest rates (including the potential for fluctuations in interest rates), inflation, currency exchange rates, economic conditions, trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, which may have varying effects across industries and
geographies, and geopolitical instability; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Corporation’s exposures to such risks, including direct, indirect and operational; the impact of the interest rate, inflationary, macroeconomic, banking and regulatory environment on the Corporation’s assets, business, financial condition and results of operations; the impact of adverse developments affecting the U.S. or global banking industry, including a deterioration in private credit markets, bank failures and liquidity concerns, resulting in worsening economic and market volatility, and regulatory responses thereto; the possibility that future credit losses may be higher than currently expected, including due to changes in economic assumptions, which may include unemployment rates, real estate prices, gross domestic product levels and corporate bond spreads, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties, such as the impact of trade policies, supply chain disruptions, commodity prices, inflationary pressures and labor shortages on economic conditions and our business; potential losses related to the Corporation's concentration of credit risk; the Corporation’s ability to achieve its expense targets (including noninterest expense) and expectations regarding revenue, net interest income, operating leverage, other income, provision for credit losses, net charge-offs, effective tax rate, loan or deposit growth or other projections and targets; variances to the underlying assumptions and judgments used in estimating banking book net interest income sensitivity; adverse changes to the Corporation’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Corporation’s assets and liabilities; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements, stress capital buffer requirements and/or global systemically important bank surcharges; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Corporation’s capital plans; the effect of changes in or interpretations of income tax laws and regulations, including impacts from the 2025 Budget Reconciliation Act; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory interpretations, including recovery and resolution planning requirements, Federal Deposit Insurance Corporation assessments, fiduciary standards, derivatives regulations and potential changes to loss allocations between financial institutions and customers, including for losses incurred from the use of our products and services, including electronic payments and payment of checks, that were authorized by the customer but induced by fraud; the impact of failures or disruptions in or breaches of the Corporation’s operations or
Bank of America 2
information systems, or those of various third parties, including regulators and federal and state governments, such as from cybersecurity incidents; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and the ability to achieve expected or potential benefits, such as increased productivity and cost savings; the risks related to the transition and physical impacts of climate change; our ability to achieve environmental goals or the impact of any changes in the Corporation’s sustainability or human capital management strategy or goals; the impact of uncertain or changing political conditions, federal government shutdowns, including partial shutdowns, and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary, trade or regulatory policy; the emergence of widespread health emergencies or pandemics; the impact of natural disasters, extreme weather events, military conflicts (including the Russia/Ukraine conflict, the conflicts in the Middle East, the possible expansion of such conflicts and potential geopolitical and economic consequences), civil unrest, terrorism or other geopolitical events; and other matters.
Forward-looking statements speak only as of the date they are made, and the Corporation undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
Notes to the Consolidated Financial Statements referred to in Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) are incorporated by reference into the MD&A. Throughout the MD&A, the Corporation uses certain acronyms and abbreviations that are defined in the Glossary.
Executive Summary
Business Overview
The Corporation is a Delaware corporation, a bank holding company (BHC) and a financial holding company. When used in this report, “Bank of America,” “the Corporation,” “we,” “us” and “our” may refer to Bank of America Corporation individually, Bank of America Corporation and its subsidiaries, or certain of Bank of America Corporation’s subsidiaries or affiliates. Our principal executive offices are located in Charlotte, North Carolina. Through our various bank and nonbank subsidiaries throughout the U.S. and in international markets, we provide a diversified range of banking and nonbank financial services and products through four business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets, with the remaining operations
recorded in All Other. We operate our banking activities primarily under the Bank of America, National Association (Bank of America, N.A. or BANA) charter. At June 30, 2026, the Corporation had $3.5 trillion in assets and a headcount of approximately 211,000 employees. As of June 30, 2026, we served clients through operations across the U.S., its territories and more than 35 countries and/or jurisdictions. Our retail banking footprint covers all major markets in the U.S., and we serve more than 69 million consumer and small business clients with approximately 3,500 retail financial centers, approximately 15,000 automated teller machines (ATMs), and leading digital banking platforms (www.bankofamerica.com) with approximately 50 million active users, including approximately 42 million active mobile users. We offer industry-leading support to approximately four million small business households. Our GWIM businesses, with client balances of approximately $4.9 trillion, provide tailored solutions to meet client needs through a full set of investment management, brokerage, banking, trust and retirement products. We are a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world.
The Corporation’s website is www.bankofamerica.com, and the Investor Relations portion of our website is https://investor.bankofamerica.com. We use our website to distribute company information, including as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. We routinely post and make accessible financial and other information regarding the Corporation on our website. Investors should monitor our website, including the Investor Relations portion, in addition to our press releases, SEC filings, public conference calls and webcasts. Notwithstanding the foregoing, the information contained on our website as referenced in this paragraph is not incorporated by reference into this Quarterly Report on Form 10-Q.
Recent Developments
Capital Management
On July 23, 2026, the Corporation’s Board of Directors (Board) declared a quarterly common stock dividend of $0.32 per share, an increase of 14 percent compared to the prior quarterly dividend, payable on September 25, 2026 to shareholders of record as of September 4, 2026.
For more information on our capital resources, see Capital Management beginning on page 19.
3 Bank of America
Financial Highlights
Table 1 Summary Income Statement and Selected Financial Data
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions, except per share information) 2026 2025 2026 2025
Income statement
Net interest income $ 15,997 $ 14,670 $ 31,742 $ 29,113
Noninterest income 15,561 12,773 30,088 26,577
Total revenue, net of interest expense 31,558 27,443 61,830 55,690
Provision for credit losses 1,366 1,592 2,703 3,072
Noninterest expense 18,627 17,183 37,158 34,953
Income before income taxes 11,565 8,668 21,969 17,665
Income tax expense 2,491 1,498 4,311 3,135
Net income 9,074 7,170 17,658 14,530
Preferred stock dividends and other 326 291 755 697
Net income applicable to common shareholders $ 8,748 $ 6,879 $ 16,903 $ 13,833
Per common share information
Earnings $ 1.22 $ 0.91 $ 2.35 $ 1.81
Diluted earnings 1.21 0.90 2.31 1.79
Dividends paid 0.28 0.26 0.56 0.52
Performance ratios
Return on average assets (1) 1.03 % 0.84 % 1.01 % 0.86 %
Return on average common shareholders’ equity (1) 12.71 10.12 12.33 10.24
Return on average tangible common shareholders’ equity (2) 17.03 13.61 16.52 13.79
Efficiency ratio (1) 59.02 62.61 60.10 62.76
June 30 2026 December 31 2025
Balance sheet
Total loans and leases $ 1,217,619 $ 1,185,700
Total assets 3,499,191 3,411,738
Total deposits 2,025,124 2,018,729
Total liabilities 3,198,097 3,108,495
Total common shareholders’ equity 276,098 277,251
Total shareholders’ equity 301,094 303,243
(1)For definitions, see Key Metrics on page 101.
(2)Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to the most directly comparable financial measures defined by accounting principles generally accepted in the United States of America (GAAP), see Non-GAAP Reconciliations on page 46.
Net income was $9.1 billion and $17.7 billion, or $1.21 and $2.31 per diluted share, for the three and six months ended June 30, 2026 compared to $7.2 billion and $14.5 billion, or $0.90 and $1.79 per diluted share, for the same periods in 2025. The increase in net income was due to higher noninterest income and net interest income, as well as lower provision for credit losses, partially offset by higher noninterest expense.
Total assets increased $87.5 billion from December 31, 2025 to $3.5 trillion primarily driven by higher securities borrowed or purchased under agreements to resell and higher customer and other receivables to support Global Markets client activity, as well as higher loans and leases due to growth in commercial loans, partially offset by lower debt securities primarily due to maturities and paydowns.
Total liabilities increased $89.6 billion from December 31, 2025 to $3.2 trillion primarily driven by higher customer trade payables and trading account liabilities to support Global Markets client activity, as well as higher long-term debt issuances and short-term borrowings for liquidity positioning.
Shareholders’ equity decreased $2.1 billion from December 31, 2025 primarily due to returns of capital to shareholders through common stock repurchases and common and preferred stock dividends, a decrease in accumulated other comprehensive income (OCI) and a preferred stock redemption, partially offset by net income.
Net Interest Income
Net interest income increased $1.3 billion to $16.0 billion, and $2.6 billion to $31.7 billion for the three and six months ended June 30, 2026 compared to the same periods in 2025. Net interest yield on a fully taxable-equivalent (FTE) basis increased 14 basis points (bps) and 12 bps to 2.08 percent for both the three and six months ended June 30, 2026 compared to the same periods in 2025. The increases were primarily driven by higher net interest income related to Global Markets activity, deposit and loan growth, and fixed-asset repricing, partially offset by the impact of lower interest rates. For more information on net interest yield and FTE basis, see Supplemental Financial Data on page 6, and for more information on interest rate risk management, see Interest Rate Risk Management for the Banking Book on page 43.
Bank of America 4
Noninterest Income
Table 2 Noninterest Income
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
Fees and commissions:
Card income $ 1,583 $ 1,646 $ 3,076 $ 3,164
Service charges 1,706 1,615 3,380 3,176
Investment and brokerage services 5,653 4,780 11,194 9,593
Investment banking fees 2,138 1,428 3,979 2,951
Total fees and commissions 11,080 9,469 21,629 18,884
Market making and similar activities 4,177 3,153 7,814 6,737
Other income (loss) 304 151 645 956
Total noninterest income $ 15,561 $ 12,773 $ 30,088 $ 26,577
Noninterest income increased $2.8 billion to $15.6 billion and increased $3.5 billion to $30.1 billion for the three and six months ended June 30, 2026 compared to the same periods in 2025. The following highlights the significant changes.
● Service charges increased $91 million and $204 million primarily due to higher treasury service charges.
● Investment and brokerage services increased $873 million and $1.6 billion primarily driven by higher asset management fees reflecting higher market valuations and the impact of positive assets under management (AUM) flows, as well as higher brokerage fees due to increased transactional volume.
● Investment banking fees increased $710 million for the three-month period due to higher debt issuance, advisory and equity issuance fees. The increase of $1.0 billion in the six-month period was driven by higher advisory, debt issuance and equity issuance fees.
● Market making and similar activities increased $1.0 billion and $1.1 billion primarily driven by higher trading revenue in Equities, partially offset by lower income from foreign currency risk management activities.
● Other income increased $153 million for the three-month period primarily due to relatively higher equity investment expenses recognized in the prior year related to certain tax-related equity investments placed in service during that period. The decrease of $311 million in the six-month period was primarily due to gains recorded on leveraged finance activities in the prior-year period, partially offset by relatively higher equity investment expenses recognized in the prior year related to certain tax-related equity investments placed in service during that period.
Provision for Credit Losses
The provision for credit losses decreased $226 million to $1.4 billion and $369 million to $2.7 billion for the three and six months ended June 30, 2026 compared to the same periods in 2025. For more information on the provision for credit losses, see Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.
Noninterest Expense
Table 3 Noninterest Expense
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
Compensation and benefits $ 10,987 $ 10,332 $ 22,321 $ 21,221
Information processing and communications 1,924 1,819 3,942 3,713
Occupancy and equipment 1,914 1,836 3,814 3,692
Product delivery and transaction related 1,327 974 2,453 1,888
Professional fees 573 640 1,156 1,292
Marketing 736 563 1,269 1,069
Other general operating 1,166 1,019 2,203 2,078
Total noninterest expense $ 18,627 $ 17,183 $ 37,158 $ 34,953
Noninterest expense increased $1.4 billion to $18.6 billion and $2.2 billion to $37.2 billion for the three and six months ended June 30, 2026 compared to the same periods in 2025. The increases were primarily driven by higher revenue-related expenses during both periods, as well as continued investments in the business, including people, marketing and technology for the three-month period, and continued investments in people, technology and marketing for the six-month period.
5 Bank of America
Income Tax Expense
Table 4 Income Tax Expense
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
Income before income taxes $ 11,565 $ 8,668 $ 21,969 $ 17,665
Income tax expense 2,491 1,498 4,311 3,135
Effective tax rate 21.5 % 17.3 % 19.6 % 17.7 %
The effective tax rate increased for the three and six months ended June 30, 2026 compared to the same periods in 2025 driven by lower tax preference items, primarily related to lower renewable energy tax credits on certain tax-related equity investment activity and lower discrete tax benefits relative to pretax earnings.
Supplemental Financial Data
Non-GAAP Financial Measures
In this Quarterly Report on Form 10-Q, we present certain non-GAAP financial measures. Non-GAAP financial measures exclude certain items or otherwise include components that differ from the most directly comparable measures calculated in accordance with GAAP. Non-GAAP financial measures are provided as additional useful information to assess our financial condition, results of operations (including period-to-period operating performance) or compliance with prospective regulatory requirements. These non-GAAP financial measures are not intended as a substitute for GAAP financial measures and may not be defined or calculated the same way as non-GAAP financial measures used by other companies.
When presented on a consolidated basis, we view net interest income on an FTE basis as a non-GAAP financial measure. To derive the FTE basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, we use the federal statutory tax rate of 21 percent and a representative state tax rate. Net interest yield, which measures the basis points we earn over the cost of funds, utilizes net interest income on an FTE basis. We believe that presentation of these items on an FTE basis allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices.
We may present certain key performance indicators and ratios excluding certain items (e.g., debit valuation adjustment (DVA) gains (losses)), which result in non-GAAP financial measures. We believe that the presentation of measures that exclude these items is useful because such measures provide additional information to assess the underlying operational performance and trends of our businesses and to allow better comparison of period-to-period operating performance.
We also evaluate our business based on certain ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents shareholders’ equity or common shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights (MSRs)), net of related deferred tax liabilities (“adjusted” shareholders’ equity or common shareholders’ equity). These measures are used to evaluate our use of equity. In addition, profitability, relationship and investment models use both return on average tangible
common shareholders’ equity and return on average tangible shareholders’ equity as key measures to support our overall growth objectives. These ratios are:
● Return on average tangible common shareholders’ equity measures our net income applicable to common shareholders as a percentage of adjusted average common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total tangible assets.
● Return on average tangible shareholders’ equity measures our net income as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total tangible assets.
● Tangible book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding.
We believe ratios utilizing tangible equity provide additional useful information because they present measures of those assets that can generate income. Tangible book value per common share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock.
The aforementioned supplemental data and performance measures are presented in Table 5 on page 7.
For more information on the reconciliation of these non-GAAP financial measures to the corresponding GAAP financial measures, see Non-GAAP Reconciliations on page 46.
Key Performance Indicators
We present certain key financial and nonfinancial performance indicators (key performance indicators) that management uses when assessing our consolidated and/or segment results. We believe they are useful to investors because they provide additional information about our underlying operational performance and trends. These key performance indicators (KPIs) may not be defined or calculated in the same way as similar KPIs used by other companies. For information on how these metrics are defined, see Key Metrics on page 101.
Our consolidated key performance indicators, which include various equity and credit metrics, are presented in Table 1 on page 4, and Table 5 on page 7.
For information on key segment performance metrics, see Business Segment Operations on page 10.
Bank of America 6
Table 5 Selected Financial Data
Six Months Ended June 30
2026 Quarters 2025 Quarters
(In millions, except per share information) Second First Fourth Third Second 2026 2025
Income statement
Net interest income $ 15,997 $ 15,745 $ 15,750 $ 15,233 $ 14,670 $ 31,742 $ 29,113
Noninterest income 15,561 14,527 12,617 13,807 12,773 30,088 26,577
Total revenue, net of interest expense 31,558 30,272 28,367 29,040 27,443 61,830 55,690
Provision for credit losses 1,366 1,337 1,308 1,295 1,592 2,703 3,072
Noninterest expense 18,627 18,531 17,437 17,337 17,183 37,158 34,953
Income before income taxes 11,565 10,404 9,622 10,408 8,668 21,969 17,665
Income tax expense 2,491 1,820 1,975 2,076 1,498 4,311 3,135
Net income 9,074 8,584 7,647 8,332 7,170 17,658 14,530
Net income applicable to common shareholders 8,748 8,155 7,319 7,903 6,879 16,903 13,833
Average common shares issued and outstanding 7,151.2 7,256.1 7,364.9 7,466.0 7,581.2 7,203.5 7,629.5
Average diluted common shares issued and outstanding 7,294.2 7,417.5 7,546.9 7,627.1 7,651.6 7,356.2 7,711.2
Performance ratios
Return on average assets (1) 1.03 % 0.99 % 0.89 % 0.96 % 0.84 % 1.01 % 0.86 %
Four-quarter trailing return on average assets (2) 0.97 0.92 0.89 0.88 0.84 n/a n/a
Return on average common shareholders’ equity (1) 12.71 11.95 10.45 11.40 10.12 12.33 10.24
Return on average tangible common shareholders’ equity (3) 17.03 16.00 13.97 15.29 13.61 16.52 13.79
Return on average shareholders’ equity (1) 12.09 11.51 9.98 11.01 9.74 11.80 9.94
Return on average tangible shareholders’ equity (3) 15.76 14.98 12.97 14.35 12.77 15.37 13.04
Total ending equity to total ending assets 8.60 8.60 8.89 8.89 8.66 8.60 8.66
Common equity ratio (1) 7.89 7.88 8.13 8.12 7.98 7.89 7.98
Total average equity to total average assets 8.52 8.61 8.86 8.75 8.61 8.57 8.70
Dividend payout (1) 22.77 24.82 28.02 26.31 28.48 23.76 28.57
Per common share data
Earnings $ 1.22 $ 1.12 $ 0.99 $ 1.06 $ 0.91 $ 2.35 $ 1.81
Diluted earnings 1.21 1.11 0.98 1.04 0.90 2.31 1.79
Dividends paid 0.28 0.28 0.28 0.28 0.26 0.56 0.52
Book value (1) 39.34 38.66 38.44 37.72 36.92 39.34 36.92
Tangible book value (3) 29.37 28.84 28.73 28.16 27.49 29.37 27.49
Market capitalization $ 399,884 $ 347,583 $ 396,686 $ 378,125 $ 351,904 $ 399,884 $ 351,904
Average balance sheet
Total loans and leases $ 1,216,519 $ 1,189,528 $ 1,170,895 $ 1,153,035 $ 1,128,453
Total assets 3,531,568 3,512,490 3,427,791 3,433,447 3,430,280
Total deposits 2,022,950 2,016,929 2,012,523 1,991,434 1,973,761
Long-term debt 256,197 253,997 245,470 247,425 249,104
Common shareholders’ equity 275,988 276,753 277,881 275,149 272,756
Total shareholders’ equity 300,984 302,501 303,873 300,381 295,329
Asset quality
Allowance for credit losses (4) $ 14,264 $ 14,309 $ 14,380 $ 14,361 $ 14,434
Nonperforming loans, leases and foreclosed properties (5) 5,870 5,933 5,905 5,470 6,104
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5) 1.08 % 1.09 % 1.12 % 1.14 % 1.17 %
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5) 228 225 228 248 222
Net charge-offs $ 1,412 $ 1,409 $ 1,287 $ 1,367 $ 1,525
Annualized net charge-offs as a percentage of average loans and leases outstanding (5) 0.47 % 0.48 % 0.44 % 0.47 % 0.55 %
Capital ratios at period end (6)
Common equity tier 1 capital 11.2 % 11.2 % 11.4 % 11.6 % 11.5 %
Tier 1 capital 12.6 12.6 12.8 13.1 12.9
Total capital 14.7 14.5 14.7 15.0 14.8
Tier 1 leverage 6.6 6.5 6.8 6.8 6.7
Supplementary leverage ratio 5.5 5.5 5.7 5.8 5.7
Tangible equity (3) 6.7 6.7 7.0 7.0 6.8
Tangible common equity (3) 6.0 6.0 6.2 6.2 6.1
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets 26.3 % 26.1 % 26.3 % 27.0 % 27.1 %
Total loss-absorbing capacity to supplementary leverage exposure 11.4 11.3 11.7 11.9 12.0
Eligible long-term debt to risk-weighted assets 12.8 12.6 12.7 13.1 13.5
Eligible long-term debt to supplementary leverage exposure 5.6 5.5 5.7 5.8 6.0
(1)For definitions, see Key Metrics on page 101.
(2)Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.
(3)Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios and corresponding reconciliations to GAAP financial measures, see Supplemental Financial Data on page 6 and Non-GAAP Reconciliations on page 46.
(4)Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.
(5)Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 32 and corresponding Table 25 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 36 and corresponding Table 31.
(6)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 19.
n/a = not applicable
7 Bank of America
Table 6 Quarterly Average Balances and Interest Rates - FTE Basis
Average Balance Interest Income/Expense (1) Yield/ Rate Average Balance InterestIncome/Expense (1) Yield/ Rate
(Dollars in millions) Second Quarter 2026 Second Quarter 2025
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks $ 254,700 $ 2,215 3.49 % $ 274,839 $ 2,843 4.15 %
Time deposits placed and other short-term investments 11,839 93 3.15 10,405 89 3.43
Federal funds sold and securities borrowed or purchased under agreements to resell 373,297 4,185 4.50 353,331 4,094 4.65
Trading account assets 240,768 3,097 5.16 234,282 3,081 5.27
Debt securities 880,724 6,051 2.74 933,065 6,932 2.96
Loans and leases (2)
Residential mortgage 236,187 2,106 3.57 235,130 2,031 3.46
Home equity 27,099 370 5.48 26,190 379 5.80
Credit card 103,640 2,794 10.81 100,013 2,846 11.41
Direct/Indirect and other consumer 116,455 1,484 5.11 108,955 1,484 5.47
Total consumer 483,381 6,754 5.60 470,288 6,740 5.74
U.S. commercial 482,510 6,034 5.01 427,194 5,709 5.36
Non-U.S. commercial 164,502 1,940 4.73 149,044 2,016 5.42
Commercial real estate (3) 70,280 985 5.62 65,847 1,023 6.23
Commercial lease financing 15,846 200 5.06 16,080 214 5.33
Total commercial 733,138 9,159 5.01 658,165 8,962 5.46
Total loans and leases 1,216,519 15,913 5.24 1,128,453 15,702 5.58
Other earning assets 128,879 2,441 7.60 115,831 2,277 7.89
Total earning assets 3,106,726 33,995 4.39 3,050,206 35,018 4.60
Cash and due from banks 26,656 24,781
Other assets, less allowance for loan and lease losses 398,186 355,293
Total assets $ 3,531,568 $ 3,430,280
Interest-bearing liabilities
U.S. interest-bearing deposits
Demand and money market deposits $ 1,108,939 $ 5,042 1.82 % $ 1,078,771 $ 5,739 2.13 %
Time and savings deposits 254,022 1,661 2.62 259,261 1,998 3.09
Total U.S. interest-bearing deposits 1,362,961 6,703 1.97 1,338,032 7,737 2.32
Non-U.S. interest-bearing deposits 126,738 669 2.11 121,921 944 3.11
Total interest-bearing deposits 1,489,699 7,372 1.98 1,459,953 8,681 2.38
Federal funds purchased and securities loaned or sold under agreements to repurchase 353,243 4,135 4.70 414,655 4,946 4.78
Short-term borrowings and other interest-bearing liabilities 228,651 2,472 4.34 183,008 2,489 5.45
Trading account liabilities 57,026 756 5.32 53,805 676 5.04
Long-term debt 256,197 3,100 4.85 249,104 3,411 5.49
Total interest-bearing liabilities 2,384,816 17,835 3.00 2,360,525 20,203 3.43
Noninterest-bearing sources
Noninterest-bearing deposits 533,251 513,808
Other liabilities (4) 312,517 260,618
Shareholders’ equity 300,984 295,329
Total liabilities and shareholders’ equity $ 3,531,568 $ 3,430,280
Net interest spread 1.39 % 1.17 %
Impact of noninterest-bearing sources 0.69 0.77
Net interest income/yield on earning assets (5) $ 16,160 2.08 % $ 14,815 1.94 %
(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 43.
(2)Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.
(3)Includes U.S. commercial real estate loans of $65.0 billion and $59.9 billion, and non-U.S. commercial real estate loans of $5.3 billion and $5.9 billion for the second quarter of 2026 and 2025.
(4)Includes $84.6 billion and $58.8 billion of structured notes and liabilities for the second quarter of 2026 and 2025.
(5)Net interest income includes FTE adjustments of $163 million and $145 million for the second quarter of 2026 and 2025.
Bank of America 8
Table 7 Year-to-Date Average Balances and Interest Rates - FTE Basis
Average Balance InterestIncome/Expense (1) Yield/ Rate Average Balance InterestIncome/Expense (1) Yield/ Rate
Six Months Ended June 30
(Dollars in millions) 2026 2025
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks $ 249,443 $ 4,302 3.48 % $ 273,433 $ 5,653 4.17 %
Time deposits placed and other short-term investments 11,158 170 3.07 9,806 181 3.72
Federal funds sold and securities borrowed or purchased under agreements to resell 359,867 8,042 4.51 337,758 7,868 4.70
Trading account assets 249,355 6,329 5.12 232,867 6,115 5.29
Debt securities 897,762 12,358 2.76 928,432 13,718 2.96
Loans and leases (2)
Residential mortgage 236,138 4,190 3.55 231,902 3,947 3.41
Home equity 26,992 722 5.39 26,020 745 5.77
Credit card 103,365 5,616 10.96 100,092 5,684 11.45
Direct/Indirect and other consumer 115,318 2,937 5.14 107,907 2,916 5.45
Total consumer 481,813 13,465 5.62 465,921 13,292 5.74
U.S. commercial 474,349 11,810 5.02 419,530 11,136 5.35
Non-U.S. commercial 161,309 3,791 4.74 143,977 4,074 5.71
Commercial real estate (3) 69,558 1,948 5.65 65,800 2,043 6.26
Commercial lease financing 16,069 433 5.41 15,963 429 5.40
Total commercial 721,285 17,982 5.03 645,270 17,682 5.52
Total loans and leases 1,203,098 31,447 5.27 1,111,191 30,974 5.62
Other earning assets 132,687 4,868 7.40 115,268 4,720 8.26
Total earning assets 3,103,370 67,516 4.38 3,008,755 69,229 4.63
Cash and due from banks 26,269 24,244
Other assets, less allowance for loan and lease losses 392,443 356,871
Total assets $ 3,522,082 $ 3,389,870
Interest-bearing liabilities
U.S. interest-bearing deposits
Demand and money market deposits $ 1,109,271 $ 9,982 1.81 % $ 1,073,674 $ 11,266 2.12 %
Time and savings deposits 252,985 3,350 2.67 260,977 4,116 3.18
Total U.S. interest-bearing deposits 1,362,256 13,332 1.97 1,334,651 15,382 2.32
Non-U.S. interest-bearing deposits 127,886 1,341 2.11 119,341 1,931 3.26
Total interest-bearing deposits 1,490,142 14,673 1.99 1,453,992 17,313 2.40
Federal funds purchased and securities loaned or sold under agreements to repurchase 368,642 8,422 4.61 399,955 9,575 4.83
Short-term borrowings and other interest-bearing liabilities 213,526 4,695 4.43 171,681 4,823 5.66
Trading account liabilities 54,988 1,501 5.51 53,741 1,383 5.19
Long-term debt 255,103 6,158 4.85 245,092 6,732 5.52
Total interest-bearing liabilities 2,382,401 35,449 3.00 2,324,461 39,826 3.45
Noninterest-bearing sources
Noninterest-bearing deposits 529,813 512,097
Other liabilities (4) 308,130 258,551
Shareholders’ equity 301,738 294,761
Total liabilities and shareholders’ equity $ 3,522,082 $ 3,389,870
Net interest spread 1.38 % 1.18 %
Impact of noninterest-bearing sources 0.70 0.78
Net interest income/yield on earning assets (5) $ 32,067 2.08 % $ 29,403 1.96 %
(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 43.
(2)Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.
(3)Includes U.S. commercial real estate loans of $64.0 billion and $59.9 billion, and non-U.S. commercial real estate loans of $5.5 billion and $5.9 billion for the six months ended June 30, 2026 and 2025.
(4)Includes $81.0 billion and $56.3 billion of structured notes and liabilities for the six months ended June 30, 2026 and 2025.
(5)Net interest income includes FTE adjustments of $325 million and $290 million for the six months ended June 30, 2026 and 2025.
9 Bank of America
Business Segment Operations
Segment Description and Basis of Presentation
We report our results of operations through four business segments: Consumer Banking, GWIM, Global Banking and Global Markets, with the remaining operations recorded in All Other. We manage our segments and report their results on an FTE basis. For more information, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
We periodically review capital allocated to our businesses and allocate capital annually during the strategic and capital planning processes. We utilize a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. The capital allocated to the business segments is referred to as allocated capital. Allocated equity in the reporting units is comprised of allocated capital plus capital
for the portion of goodwill and intangibles specifically assigned to the reporting unit. For more information, including the definition of a reporting unit, see Note 7 – Goodwill and Intangible Assets to the Consolidated Financial Statements.
For more information on our presentation of financial information on an FTE basis, see Supplemental Financial Data on page 6, and for reconciliations to consolidated total revenue, net income and period--end total assets, see Note 17 – Business Segment Information to the Consolidated Financial Statements.
Key Performance Indicators
We present certain key financial and nonfinancial performance indicators that management uses when evaluating segment results. We believe they are useful to investors because they provide additional information about our segments’ operational performance, client trends and business growth.
Consumer Banking
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 % Change 2026 2025 % Change
Net interest income $ 9,206 $ 8,726 6 % $ 18,199 $ 17,231 6 %
Noninterest income:
Card income 1,346 1,415 (5) 2,619 2,712 (3)
Service charges 639 627 2 1,277 1,245 3
All other income 145 45 n/m 290 118 146
Total noninterest income 2,130 2,087 2 4,186 4,075 3
Total revenue, net of interest expense 11,336 10,813 5 22,385 21,306 5
Provision for credit losses 1,160 1,282 (10) 2,292 2,574 (11)
Noninterest expense 5,801 5,567 4 11,638 11,393 2
Income before income taxes 4,375 3,964 10 8,455 7,339 15
Income tax expense 1,094 991 10 2,114 1,835 15
Net income $ 3,281 $ 2,973 10 $ 6,341 $ 5,504 15
Effective tax rate 25.0 % 25.0 % 25.0 % 25.0 %
Net interest yield 3.68 3.51 3.67 3.49
Efficiency ratio 51.18 51.48 51.99 53.48
Return on average allocated capital 29 27 28 25
Balance Sheet
Three Months Ended June 30 Six Months Ended June 30
Average 2026 2025 % Change 2026 2025 % Change
Total loans and leases $ 321,056 $ 319,142 1 % $ 321,607 $ 317,101 1 %
Total earning assets 1,002,799 996,193 1 999,632 994,233 1
Total assets 1,041,292 1,033,776 1 1,038,000 1,031,560 1
Total deposits 956,957 951,986 1 953,900 949,780 —
Allocated capital 45,500 44,000 3 45,500 44,000 3
Period end June 30 2026 December 31 2025 % Change
Total loans and leases $ 322,271 $ 325,871 (1) %
Total earning assets 999,457 998,969 —
Total assets 1,039,051 1,039,346 —
Total deposits 953,195 956,265 —
n/m = not meaningful
Consumer Banking offers a diversified range of lending, deposit and investment products and services to consumers and small businesses. For more information about Consumer Banking, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Consumer Banking Results
Three-Month Comparison
Net income for Consumer Banking increased $308 million to $3.3 billion due to higher revenue and lower provision for credit
losses, partially offset by higher noninterest expense. Net interest income increased $480 million to $9.2 billion primarily driven by higher deposit spreads, as well as loan and deposit balances. Noninterest income was $2.1 billion, relatively unchanged from the same period a year ago.
The provision for credit losses decreased $122 million to $1.2 billion primarily due to improved asset quality in credit card. Noninterest expense increased $234 million to $5.8 billion primarily driven by continued investments in the business, including technology and marketing.
Bank of America 10
Average loans and leases increased $1.9 billion to $321.1 billion primarily due to growth in credit card balances.
Average deposits increased $5.0 billion to $957.0 billion primarily due to net inflows of $11.5 billion in checking and $3.8 billion in time deposits, partially offset by net outflows of $10.4 billion in money market and other savings.
Six-Month Comparison
Net income for Consumer Banking increased $837 million to $6.3 billion due to higher revenue and lower provision for credit losses, partially offset by higher noninterest expense. Net interest income increased $968 million to $18.2 billion due to the same factors as described in the three-month discussion. Noninterest income increased $111 million to $4.2 billion, primarily due to a higher amount of allocated asset and liability management (ALM) activities.
The provision for credit losses decreased $282 million to $2.3 billion primarily due to the same factor as described in the three-month discussion. Noninterest expense increased $245
million to $11.6 billion primarily due to the same factors as described in the three-month discussion.
Average loans and leases increased $4.5 billion to $321.6 billion due to the same factor as described in the three-month discussion.
Average deposits increased $4.1 billion to $953.9 billion primarily due to net inflows of $10.3 billion in checking and $5.9 billion in time deposits, partially offset by net outflows of $12.1 billion in money market and other savings.
Consumer investment assets increased $99.8 billion to $639.5 billion driven by higher market valuations and positive net client flows.
Key Statistics
The table below provides key performance indicators for deposit spreads, other period-end information, credit and debit card and loan production activities.
Key Statistics
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
Deposit Spreads
Total deposit spreads (excludes noninterest costs) 3.08% 2.91% 3.05% 2.88%
Period end
Consumer investment assets (in millions) (1) $ 639,517 $ 539,727
Active digital banking users (in thousands) (2) 49,834 48,998
Active mobile banking users (in thousands) (3) 42,056 40,840
Financial centers 3,530 3,664
ATMs 14,939 14,904
Credit and Debit Card
Total credit card (4)
Gross interest yield (5) 11.36 % 12.06 % 11.49 % 12.09 %
Risk-adjusted margin (6) 6.47 7.07 6.58 6.88
New accounts (in thousands) 999 834 1,883 1,747
Purchase volumes $ 101,877 $ 94,814 $ 194,849 $ 183,022
Debit card purchase volumes 164,189 149,288 316,123 289,485
Loan Production (7)
Consumer Banking:
First mortgage $ 3,497 $ 3,052 $ 6,563 $ 4,909
Home equity 2,404 2,241 4,404 4,075
Total (8):
First mortgage $ 8,259 $ 6,604 $ 14,691 $ 11,112
Home equity 2,899 2,766 5,361 4,980
(1)Includes client brokerage assets, deposit sweep balances, brokered CDs and AUM in Consumer Banking.
(2)Represents mobile and/or online active users over the past 90 days.
(3)Represents mobile active users over the past 90 days.
(4)Includes consumer credit card portfolios in Consumer Banking and GWIM.
(5)Calculated as the effective annual percentage rate divided by average loans.
(6)Calculated as the difference between total revenue, net of interest expense, and net charge-offs divided by average loans.
(7)The loan production amounts represent the unpaid principal balance of loans and, in the case of home equity, the principal amount of the total line of credit.
(8)In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM.
11 Bank of America
Since June 30, 2025, active mobile banking users increased by more than one million, reflecting client growth and continuing changes in our clients’ banking preferences. We had a net decrease of 134 financial centers and an increase of 35 ATMs as we continued to optimize our consumer banking network.
During the three months ended June 30, 2026, the total risk-adjusted margin decreased 60 bps primarily driven by lower card-related fee income and lower net interest margin due to loan balance mix, partially offset by lower net charge-offs. During the six months ended June 30, 2026, the total risk-adjusted margin decreased 30 bps due to the same factors as described in the three-month discussion. During the three and six months ended June 30, 2026, total credit card purchase volumes
increased $7.1 billion and $11.8 billion, and debit card purchase volumes increased $14.9 billion and $26.6 billion, reflecting higher levels of consumer spending.
During the three and six months ended June 30, 2026, first mortgage loan originations for Consumer Banking increased $445 million and $1.7 billion, and first mortgage loan originations for the total Corporation increased $1.7 billion and $3.6 billion for the same periods, primarily driven by higher demand.
During the three and six months ended June 30, 2026, home equity production in Consumer Banking increased $163 million and $329 million, and home equity production for the total Corporation increased $133 million and $381 million for the same periods, primarily driven by higher demand.
Global Wealth & Investment Management
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 % Change 2026 2025 % Change
Net interest income $ 1,888 $ 1,762 7 % $ 3,750 $ 3,527 6 %
Noninterest income:
Investment and brokerage services 4,793 4,033 19 9,464 8,122 17
All other income 190 142 34 369 304 21
Total noninterest income 4,983 4,175 19 9,833 8,426 17
Total revenue, net of interest expense 6,871 5,937 16 13,583 11,953 14
Provision for credit losses 11 20 (45) 13 34 (62)
Noninterest expense 4,976 4,593 8 9,914 9,252 7
Income before income taxes 1,884 1,324 42 3,656 2,667 37
Income tax expense 471 331 42 914 667 37
Net income $ 1,413 $ 993 42 $ 2,742 $ 2,000 37
Effective tax rate 25.0 % 25.0 % 25.0 % 25.0 %
Net interest yield 2.42 2.31 2.39 2.28
Efficiency ratio 72.41 77.36 72.99 77.40
Return on average allocated capital 26 20 25 21
Balance Sheet
Three Months Ended June 30 Six Months Ended June 30
Average 2026 2025 % Change 2026 2025 % Change
Total loans and leases $ 270,257 $ 237,377 14 % $ 266,226 $ 234,866 13 %
Total earning assets 313,639 306,490 2 316,294 311,660 1
Total assets 328,688 320,224 3 331,035 325,387 2
Total deposits 281,593 276,825 2 284,072 281,586 1
Allocated capital 22,250 19,750 13 22,250 19,750 13
Period end June 30 2026 December 31 2025 % Change
Total loans and leases $ 276,980 $ 261,303 6 %
Total earning assets 311,564 320,899 (3)
Total assets 327,667 335,495 (2)
Total deposits 278,155 289,854 (4)
GWIM consists of two primary businesses: Merrill Wealth Management and Bank of America Private Bank. For more information on GWIM, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Three-Month Comparison
Net income for GWIM increased $420 million to $1.4 billion primarily due to higher revenue, partially offset by higher noninterest expense. The operating margin was 27 percent compared to 22 percent a year ago.
Net interest income increased $126 million to $1.9 billion primarily driven by loan and deposit growth.
Noninterest income, which primarily includes investment and brokerage services income, increased $808 million to $5.0 billion. The increase was primarily driven by higher asset
management fees, which increased 19 percent to $4.4 billion, reflecting higher market valuations and the impact of positive AUM flows, as well as higher brokerage fees due to increased transactional volume.
Noninterest expense increased $383 million to $5.0 billion primarily due to higher revenue-related incentives.
Average loans and leases increased $32.9 billion to $270.3 billion primarily driven by custom lending, securities-based lending and residential mortgage. Average deposits increased $4.8 billion to $281.6 billion, with growth in banking balances largely offset by a decline in brokerage deposits due to clients moving balances to higher yielding cash alternatives.
Merrill Wealth Management revenue of $5.7 billion increased 16 percent primarily driven by higher asset management fees
Bank of America 12
reflecting higher market valuations and the impact of positive AUM flows, as well as higher brokerage fees due to increased transactional volume.
Bank of America Private Bank revenue of $1.2 billion increased 17 percent primarily driven by higher net interest income from loan and deposit growth, as well as higher asset management fees reflecting higher market valuations and the impact of positive AUM flows.
Six-Month Comparison
Net income for GWIM increased $742 million to $2.7 billion primarily due to higher revenue, partially offset by higher noninterest expense. The operating margin was 27 percent compared to 22 percent a year ago.
Net interest income increased $223 million to $3.8 billion due to the same factors as described in the three-month discussion.
Noninterest income, which primarily includes investment and brokerage services income, increased $1.4 billion to $9.8 billion due to the same factors as described in the three-month discussion.
Noninterest expense increased $662 million to $9.9 billion due to the same factor as described in the three-month discussion.
Average loans increased $31.4 billion to $266.2 billion due to the same factors as described in the three-month discussion. Average deposits increased $2.5 billion to $284.1 billion due to the same factors as described in the three-month discussion.
Merrill Wealth Management revenue of $11.3 billion increased 13 percent, and Bank of America Private Bank revenue of $2.3 billion increased 15 percent primarily driven by the same factors as described in the three-month discussion.
Key Indicators and Metrics
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
Revenue by Business
Merrill Wealth Management $ 5,711 $ 4,942 $ 11,290 $ 9,961
Bank of America Private Bank 1,160 995 2,293 1,992
Total revenue, net of interest expense $ 6,871 $ 5,937 $ 13,583 $ 11,953
Client Balances by Business, at period end
Merrill Wealth Management $ 4,132,451 $ 3,695,213
Bank of America Private Bank 801,945 700,018
Total client balances $ 4,934,396 $ 4,395,231
Client Balances by Type, at period end
Assets under management $ 2,327,766 $ 1,986,523
Brokerage and other assets 2,094,157 1,932,182
Deposits 278,155 275,778
Loans and leases (1) 279,618 243,409
Less: Managed deposits in assets under management (45,300) (42,661)
Total client balances $ 4,934,396 $ 4,395,231
Assets Under Management Rollforward
Assets under management, beginning of period $ 2,115,782 $ 1,855,657 $ 2,177,708 $ 1,882,211
Net client flows 13,673 14,314 34,045 38,271
Market valuation/other 198,311 116,552 116,013 66,041
Total assets under management, end of period $ 2,327,766 $ 1,986,523 $ 2,327,766 $ 1,986,523
(1)Includes margin receivables, which are classified in customer and other receivables on the Consolidated Balance Sheet.
Client Balances
Client balances increased $539.2 billion, or 12 percent, to $4.9 trillion at June 30, 2026 compared to June 30, 2025. The increase in client balances was primarily driven by higher market valuations, as well as positive net client flows since June 30, 2025.
13 Bank of America
Global Banking
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 % Change 2026 2025 % Change
Net interest income $ 3,198 $ 3,081 4 % $ 6,428 $ 6,232 3 %
Noninterest income:
Service charges 932 864 8 1,836 1,690 9
Investment banking fees 1,154 767 50 2,201 1,614 36
All other income 952 977 (3) 2,058 2,145 (4)
Total noninterest income 3,038 2,608 16 6,095 5,449 12
Total revenue, net of interest expense 6,236 5,689 10 12,523 11,681 7
Provision for credit losses 215 277 (22) 400 431 (7)
Noninterest expense 3,199 3,070 4 6,422 6,254 3
Income before income taxes 2,822 2,342 20 5,701 4,996 14
Income tax expense 776 644 20 1,568 1,374 14
Net income $ 2,046 $ 1,698 20 $ 4,133 $ 3,622 14
Effective tax rate 27.5 % 27.5 % 27.5 % 27.5 %
Net interest yield 1.86 1.94 1.88 2.02
Efficiency ratio 51.30 53.98 51.29 53.55
Return on average allocated capital 15 13 15 14
Balance Sheet
Three Months Ended June 30 Six Months Ended June 30
Average 2026 2025 % Change 2026 2025 % Change
Total loans and leases $ 413,364 $ 387,864 7 % $ 405,222 $ 383,324 6 %
Total earning assets 689,980 638,259 8 687,699 623,607 10
Total assets 754,368 703,326 7 752,145 688,686 9
Total deposits 651,867 603,410 8 649,737 589,375 10
Allocated capital 54,250 50,750 7 54,250 50,750 7
Period end June 30 2026 December 31 2025 % Change
Total loans and leases $ 412,294 $ 388,998 6 %
Total earning assets 695,499 671,354 4
Total assets 761,395 734,710 4
Total deposits 662,867 641,211 3
Global Banking, which includes Global Corporate Banking, Global Commercial Banking, Business Banking and Global Investment Banking, provides a wide range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services through our network of global offices and client relationship teams. For more information about Global Banking, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Three-Month Comparison
Net income for Global Banking increased $348 million to $2.0 billion due to higher revenue and lower provision for credit losses, partially offset by higher noninterest expense.
Net interest income increased $117 million to $3.2 billion primarily due to the benefit of higher average deposit and loan balances, partially offset by the impact of lower interest rates.
Noninterest income increased $430 million to $3.0 billion primarily due to higher investment banking fees and treasury service charges.
The provision for credit losses decreased $62 million to $215 million primarily driven by improved asset quality within the commercial real estate portfolio.
Noninterest expense increased $129 million to $3.2 billion primarily due to continued investments in the business, including people and technology.
Six-Month Comparison
Net income for Global Banking increased $511 million to $4.1 billion due to higher revenue and lower provision for credit losses, partially offset by higher noninterest expense.
Net interest income increased $196 million to $6.4 billion primarily due to the same factors as described in the three-month discussion.
Noninterest income increased $646 million to $6.1 billion primarily due to higher investment banking fees, revenue from tax-related equity investment activity and higher treasury service charges, partially offset by gains related to sales of certain leveraged finance positions in the prior-year period.
The provision for credit losses decreased $31 million to $400 million primarily driven by improved asset quality within the commercial real estate portfolio, partially offset by loan growth in the commercial and industrial portfolio and a qualitative reserve build related to uncertainties associated with the ongoing conflicts in the Middle East.
Noninterest expense increased $168 million to $6.4 billion, primarily due to the same factors as described in the three-month discussion.
Bank of America 14
Global Corporate, Global Commercial and Business Banking
The following table and discussion present a summary of results, which exclude certain investment banking and other activities in Global Banking.
Global Corporate, Global Commercial and Business Banking
Global Corporate Banking Global Commercial Banking Business Banking Total
Three Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025 2026 2025 2026 2025
Revenue
Business Lending $ 893 $ 1,006 $ 1,118 $ 1,141 $ 50 $ 55 $ 2,061 $ 2,202
Global Transaction Services 1,399 1,270 1,118 1,018 403 361 2,920 2,649
Total revenue, net of interest expense $ 2,292 $ 2,276 $ 2,236 $ 2,159 $ 453 $ 416 $ 4,981 $ 4,851
Balance Sheet
Average
Total loans and leases $ 190,088 $ 177,238 $ 210,506 $ 198,717 $ 12,735 $ 11,861 $ 413,329 $ 387,816
Total deposits 357,758 344,529 233,772 206,546 60,336 52,334 651,866 603,409
Global Corporate Banking Global Commercial Banking Business Banking Total
Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025 2026 2025 2026 2025
Revenue
Business Lending $ 1,985 $ 1,955 $ 2,255 $ 2,250 $ 98 $ 109 $ 4,338 $ 4,314
Global Transaction Services 2,805 2,558 2,213 2,050 787 721 5,805 5,329
Total revenue, net of interest expense $ 4,790 $ 4,513 $ 4,468 $ 4,300 $ 885 $ 830 $ 10,143 $ 9,643
Balance Sheet
Average
Total loans and leases $ 186,336 $ 174,179 $ 206,272 $ 197,254 $ 12,545 $ 11,820 $ 405,153 $ 383,253
Total deposits 359,356 331,149 231,405 205,947 58,976 52,280 649,737 589,376
Period end
Total loans and leases $ 189,602 $ 179,017 $ 209,841 $ 199,794 $ 12,803 $ 11,856 $ 412,246 $ 390,667
Total deposits 358,213 370,575 243,834 219,468 60,816 53,483 662,863 643,526
Business Lending revenue decreased $141 million for the three months ended June 30, 2026 compared to the same period a year ago primarily driven by the impact of lower interest rates, partially offset by the benefit of higher average loan balances. Business Lending revenue increased $24 million for the six months ended June 30, 2026 compared to the same period a year ago primarily driven by higher tax-related equity investment activity across the portfolios, as well as the benefit of higher average loan balances, largely offset by the impact of lower interest rates.
Global Transaction Services revenue increased $271 million for the three months ended June 30, 2026 primarily driven by the benefit of higher average deposit balances and treasury service charges, partially offset by the impact of lower interest rates. Global Transaction Services revenue increased $476 million for the six months ended June 30, 2026 primarily driven by the same factors as described in the three-month discussion.
Average loans and leases of $413.3 billion increased seven percent for the three months ended June 30, 2026, and average loans and leases of $405.2 billion increased six percent for the six months ended June 30, 2026 due to client demand.
Average deposits of $651.9 billion increased eight percent for the three months ended June 30, 2026, and average deposits of $649.7 billion increased 10 percent for the six months ended June 30, 2026 due to growth in deposit balances from existing clients and the addition of new clients.
Global Investment Banking
Client teams and product specialists underwrite and distribute debt, equity and loan products, and provide advisory services and tailored risk management solutions. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. Global Banking originates certain deal-related transactions with our corporate and commercial clients that are executed and distributed by Global Markets. To provide a complete discussion of our consolidated investment banking fees, the table below presents total Corporation investment banking fees and the portion attributable to Global Banking.
15 Bank of America
Investment Banking Fees
Global Banking Total Corporation Global Banking Total Corporation
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025 2026 2025 2026 2025
Products
Advisory $ 517 $ 291 $ 558 $ 333 $ 1,014 $ 630 $ 1,111 $ 717
Debt issuance 417 346 1,113 837 837 755 2,099 1,779
Equity issuance 220 130 535 328 350 229 888 600
Gross investment banking fees 1,154 767 2,206 1,498 2,201 1,614 4,098 3,096
Self-led deals (18) (22) (68) (70) (32) (50) (119) (145)
Total investment banking fees $ 1,136 $ 745 $ 2,138 $ 1,428 $ 2,169 $ 1,564 $ 3,979 $ 2,951
Total Corporation investment banking fees, which exclude self-led deals and are primarily included within Global Banking and Global Markets, were $2.1 billion and $4.0 billion for the three and six months ended June 30, 2026. The three-month period increased 50 percent compared to the same period in 2025 due to higher debt issuance, advisory and equity issuance fees. The six-month period increased 35 percent compared to the same period in 2025 due to higher advisory, debt issuance and equity issuance fees.
Global Markets
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 % Change 2026 2025 % Change
Net interest income $ 1,911 $ 1,267 51 % $ 3,772 $ 2,456 54 %
Noninterest income:
Investment and brokerage services 729 642 14 1,489 1,269 17
Investment banking fees 965 666 45 1,727 1,347 28
Market making and similar activities 4,422 3,300 34 8,143 6,922 18
All other income (5) 107 (105) — 573 (100)
Total noninterest income 6,111 4,715 30 11,359 10,111 12
Total revenue, net of interest expense 8,022 5,982 34 15,131 12,567 20
Provision for credit losses (11) 22 n/m 16 50 (68)
Noninterest expense 4,484 3,806 18 8,854 7,617 16
Income before income taxes 3,549 2,154 65 6,261 4,900 28
Income tax expense 923 625 48 1,628 1,421 15
Net income $ 2,626 $ 1,529 72 $ 4,633 $ 3,479 33
Effective tax rate 26.0 % 29.0 % 26.0 % 29.0 %
Efficiency ratio 55.90 63.61 58.52 60.61
Return on average allocated capital 20 13 17 14
Balance Sheet Three Months Ended June 30 Six Months Ended June 30
Average 2026 2025 % Change 2026 2025 % Change
Trading-related assets:
Trading account securities $ 371,536 $ 343,971 8 % $ 379,481 $ 345,273 10 %
Reverse repurchases 168,093 169,064 (1) 162,604 156,405 4
Securities borrowed 159,969 146,889 9 150,113 141,872 6
Derivative assets 47,340 40,489 17 46,305 40,864 13
Total trading-related assets 746,938 700,413 7 738,503 684,414 8
Total loans and leases 204,994 176,368 16 203,126 168,043 21
Total earning assets 885,914 825,835 7 880,124 796,875 10
Total assets 1,120,548 1,022,955 10 1,111,115 996,267 12
Total deposits 38,129 38,040 — 38,936 38,423 1
Allocated capital 53,500 49,000 9 53,500 49,000 9
Period end June 30 2026 December 31 2025 % Change
Total trading-related assets $ 733,711 $ 670,949 9 %
Total loans and leases 198,678 202,733 (2)
Total earning assets 873,890 814,196 7
Total assets 1,106,999 1,032,858 7
Total deposits 38,146 40,614 (6)
n/m = not meaningful
Bank of America 16
Global Markets offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity and equity businesses. Global Markets product coverage includes securities and derivative products in both the primary and secondary markets. For more information about Global Markets, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
The following explanations for period-over-period changes in results for Global Markets, including those disclosed under Sales and Trading Revenue, are the same for amounts including and excluding net DVA. Amounts excluding net DVA are non-GAAP financial measures. For more information on net DVA, see Supplemental Financial Data on page 6.
Three-Month Comparison
Net income for Global Markets increased $1.1 billion to $2.6 billion for the three months ended June 30, 2026 compared to the same period in 2025. Net DVA losses totaled $57 million compared to $51 million in 2025. Excluding net DVA, net income increased $1.1 billion to $2.7 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.
Revenue increased $2.0 billion to $8.0 billion primarily due to higher sales and trading revenue and investment banking fees. Sales and trading revenue, including and excluding net DVA, increased $1.8 billion. These increases were primarily driven by higher revenue in Equities and Fixed-income, Currencies and Commodities (FICC).
Noninterest expense increased $678 million to $4.5 billion primarily driven by higher revenue-related expenses and continued investments in the business, including people and technology.
Average total assets increased $97.6 billion to $1.1 trillion for the three months ended June 30, 2026 compared to the same period in 2025 driven by increased financing activity and loan growth.
Six-Month Comparison
Net income for Global Markets increased $1.2 billion to $4.6 billion for the six months ended June 30, 2026 compared to the same period in 2025. Net DVA gains were $6 million compared to losses of $32 million in 2025. Excluding net DVA, net income increased $1.1 billion to $4.6 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.
Revenue increased $2.6 billion to $15.1 billion primarily due to higher sales and trading revenue and investment banking fees, partially offset by gains related to sales of certain leveraged finance positions in the prior-year period. Sales and trading revenue, including and excluding net DVA, increased $2.5 billion. These increases were driven by higher revenue in Equities and FICC. For more information, see Sales and Trading Revenue in this section.
Noninterest expense increased $1.2 billion to $8.9 billion primarily driven by the same factors as described in the three-month discussion.
Average total assets increased $114.8 billion to $1.1 trillion for the six months ended June 30, 2026 compared to the same period in 2025 driven by increased financing activity, loan growth and higher levels of inventory. Period-end total assets increased $74.1 billion from December 31, 2025 to $1.1 trillion driven by increased financing activity.
Sales and Trading Revenue
For a description of sales and trading revenue, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K. The following table and related discussion present sales and trading revenue, substantially all of which is in Global Markets, with the remainder in Global Banking. In addition, the following table and related discussion also present sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 6.
Sales and Trading Revenue (1, 2, 3)
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
Sales and trading revenue
Fixed-income, currencies and commodities $ 3,476 $ 3,195 $ 7,021 $ 6,674
Equities 3,622 2,133 6,464 4,319
Total sales and trading revenue $ 7,098 $ 5,328 $ 13,485 $ 10,993
Sales and trading revenue, excluding net DVA (4)
Fixed-income, currencies and commodities $ 3,536 $ 3,249 $ 7,032 $ 6,713
Equities 3,619 2,130 6,447 4,312
Total sales and trading revenue, excluding net DVA $ 7,155 $ 5,379 $ 13,479 $ 11,025
(1)For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements.
(2)Includes FTE adjustments of $222 million and $396 million for the three and six months ended June 30, 2026 compared to $216 million and $294 million for the same periods in 2025.
(3)Includes Global Banking sales and trading revenue of $227 million and $469 million for the three and six months ended June 30, 2026 compared to $212 million and $175 million for the same periods in 2025.
(4)FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA losses were $60 million and $11 million for the three and six months ended June 30, 2026 compared to $54 million and $39 million for the same periods in 2025. Equities net DVA gains were $3 million and $17 million for the three and six months ended June 30, 2026 compared to $3 million and $7 million for the same periods in 2025.
17 Bank of America
Three-Month Comparison
Including and excluding net DVA, FICC revenue increased $281 million and $287 million for the three months ended June 30, 2026 compared to the same period in 2025. These increases were driven by improved trading performance in credit products and commodities. Including and excluding net DVA, Equities revenue increased $1.5 billion driven by increased client financing activity and a strong trading performance in derivatives and cash.
Six-Month Comparison
Including and excluding net DVA, FICC revenue increased $347 million and $319 million for the six months ended June 30, 2026 compared to the same period in 2025 due to the same factors as described in the three-month discussion. Including and excluding net DVA, Equities revenue increased $2.1 billion due to the same factors as described in the three-month discussion.
All Other
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 % Change 2026 2025 % Change
Net interest income $ (43) $ (21) 105 % $ (82) $ (43) 91 %
Noninterest income (loss) (701) (812) (14) (1,385) (1,484) (7)
Total revenue, net of interest expense (744) (833) (11) (1,467) (1,527) (4)
Provision for credit losses (9) (9) — (18) (17) 6
Noninterest expense 167 147 14 330 437 (24)
Loss before income taxes (902) (971) (7) (1,779) (1,947) (9)
Income tax benefit (610) (948) (36) (1,588) (1,872) (15)
Net loss $ (292) $ (23) n/m $ (191) $ (75) n/m
Balance Sheet
Three Months Ended June 30 Six Months Ended June 30
Average 2026 2025 % Change 2026 2025 % Change
Total loans and leases $ 6,848 $ 7,702 (11) % $ 6,917 $ 7,857 (12) %
Total assets (1) 286,672 349,999 (18) 289,787 347,970 (17)
Total deposits 94,404 103,500 (9) 93,310 106,925 (13)
Period end June 30 2026 December 31 2025 % Change
Total loans and leases $ 7,396 $ 6,795 9 %
Total assets (1) 264,079 269,329 (2)
Total deposits 92,761 90,785 2
(1)In segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, we allocate assets from All Other to those segments to match liabilities (i.e., deposits) and allocated shareholders’ equity. Average allocated assets were $984.1 billion and $993.4 billion for the three and six months ended June 30, 2026 compared to $981.6 billion and $979.1 billion for the same periods in 2025, and period-end allocated assets were $982.1 billion and $1.0 trillion at June 30, 2026 and December 31, 2025.
n/m = not meaningful
All Other primarily consists of ALM activities, liquidating businesses and certain expenses not otherwise allocated to a business segment, and adjustments to allocate income tax benefits from tax-related equity investments to noninterest income to present Global Banking and Global Markets on an FTE basis. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments. For more information on our ALM activities, see Note 17 – Business Segment Information to the Consolidated Financial Statements.
Three-Month Comparison
The net loss in All Other increased $269 million to $292 million primarily driven by lower discrete tax benefits and lower renewable energy tax credits on certain tax-related equity investment activity.
Six-Month Comparison
The net loss in All Other increased $116 million to $191 million primarily driven by lower renewable energy tax credits on certain tax-related equity investment activity.
Bank of America 18
Managing Risk
Risk is inherent in all our business activities. The seven key types of risk faced by the Corporation are strategic, credit, market, liquidity, compliance, operational and reputational. Sound risk management enables us to serve our customers and deliver for our shareholders. If not managed well, risk can result in financial loss, regulatory sanctions and penalties, litigation and damage to our reputation, each of which may adversely impact our ability to execute our business strategies. We take a comprehensive approach to risk management with a defined Risk Framework and an articulated Risk Appetite Statement, which are approved annually by the Board’s Enterprise Risk Committee (ERC) and the Board.
Our Risk Framework serves as the foundation for the consistent and effective management of risks facing the Corporation. The Risk Framework sets forth roles and responsibilities for the management of risk and provides a blueprint for how the Board, through delegation of authority to committees and executive officers, establishes risk appetite and associated limits for our activities.
Our risk appetite provides a common framework that includes a set of measures to assist senior management and the Board in assessing the Corporation’s risk profile across all risk types against our risk appetite and risk capacity. Our risk appetite is formally articulated in the Risk Appetite Statement, which includes both qualitative statements and quantitative limits.
For more information on the Corporation’s risks, see Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K. These risks are being managed within our Risk Framework and supporting risk management programs. For more information on our Risk Framework, risk management activities and the key types of risk faced by the Corporation, see the Managing Risk section in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Capital Management
The Corporation manages its capital position so that its capital is more than adequate to support its business activities and aligns with risk, risk appetite and strategic planning. For more information, see Capital Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
CCAR and Capital Planning
The Federal Reserve requires BHCs with average total consolidated assets of $100 billion or more to submit a capital plan and planned capital actions on an annual basis, consistent with the rules governing the Comprehensive Capital Analysis and Review (CCAR) capital plan and associated stress capital buffer (SCB) requirements, which include supervisory stress testing by the Federal Reserve. The Corporation submitted its 2026 CCAR capital plan and related supervisory stress tests in April 2026. On June 24, 2026, the Federal Reserve released the results of the 2026 CCAR stress tests. As previously announced in February 2026, SCB requirements for large banks, including the Corporation, will not change until 2027. As a result, the Corporation’s SCB will remain at 2.5 percent through September 30, 2027, with a Common equity tier 1 (CET1) minimum requirement of 10.0 percent through December 31, 2026. The Corporation’s global systemically important bank (G-SIB) surcharge is expected to increase on January 1, 2027. For more information, see Regulatory Capital – Minimum Capital Requirements in this section.
The Board authorized a $40 billion common stock repurchase program, effective August 1, 2025. Pursuant to this
Board authorization, during the three months ended June 30, 2026, the Corporation repurchased $6.0 billion of common stock. For more information, including the remaining buyback authority amount as of June 30, 2026, see Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds on page 103 and Capital Management – CCAR and Capital Planning in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
The timing and amount of common stock repurchases are subject to various factors, including the Corporation’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions, and may be suspended or discontinued at any time. Such repurchases may be effected through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (Exchange Act).
Further, as part of our planned capital actions, during the three months ended June 30, 2026, the Corporation paid common stock dividends of $2.0 billion.
Regulatory Capital
As a BHC, we are subject to regulatory capital rules, including Basel 3, issued by U.S. banking regulators. Basel 3 established minimum capital ratios and buffer requirements and outlined two methods of calculating risk-weighted assets (RWA), the Standardized approach and the Advanced approaches. The Standardized approach relies primarily on supervisory risk weights based on exposure type, and the Advanced approaches determine risk weights based on internal models.
The Corporation's depository institution subsidiaries are also subject to the Prompt Corrective Action (PCA) framework. The Corporation and its primary affiliated banking entity, BANA, are Advanced approaches institutions under Basel 3 and are required to report regulatory risk-based capital ratios and RWA under both the Standardized and Advanced approaches. The lower of the capital ratios under Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements is used to assess capital adequacy, including under the PCA framework. As of June 30, 2026, the Corporation’s binding ratio was the Tier 1 capital ratio under the Standardized approach.
Minimum Capital Requirements
In order to avoid restrictions on capital distributions and discretionary bonus payments to executive officers, the Corporation must meet risk-based capital ratio requirements that include a capital conservation buffer of 2.5 percent (under the Advanced approaches only), an SCB (under the Standardized approach only), plus any applicable countercyclical capital buffer and a G-SIB surcharge. The buffers and surcharge must be comprised solely of CET1 capital. At June 30, 2026 and December 31, 2025, the Corporation’s minimum CET1 requirement was 10.0 percent under both the Standardized approach and the Advanced approaches. At June 30, 2026, the Corporation’s CET1 capital ratio was 11.2 percent under the Standardized approach and 12.5 percent under the Advanced approaches.
The Corporation is required to calculate its G-SIB surcharge on an annual basis under two methods and is subject to the higher of the resulting two surcharges. Method 1 is consistent with the approach prescribed by the Basel Committee on Banking Supervision’s assessment methodology and is calculated using specified indicators of systemic importance.
19 Bank of America
Method 2 modifies the Method 1 approach for various factors. The Corporation’s Method 1 G-SIB surcharge is 1.5 percent, and its Method 2 G-SIB surcharge is 3.0 percent. Under the current regulatory framework, on January 1, 2027, the Corporation’s G-SIB surcharge will increase by 50 bps to 2.0 percent under Method 1 and to 3.5 percent under Method 2, which will increase the Corporation’s minimum capital ratio requirements.
The Corporation and its insured depository institution subsidiaries are also required to maintain a minimum supplementary leverage ratio (SLR) plus a leverage buffer to avoid certain restrictions on capital distributions and discretionary bonus payments to executive officers. Prior to January 1, 2026, the minimum SLR requirement was 5.0 percent for the Corporation and 6.0 percent for its insured depository institutions. Effective January 1, 2026, the Corporation and its insured depository institutions early adopted a final rule on modified enhanced SLR requirements, resulting in
a minimum SLR requirement of 3.75 percent, which includes the leverage buffer, for both the Corporation and its insured depository institutions. At June 30, 2026, the Corporation’s SLR was 5.5 percent and BANA’s SLR was 5.9 percent, which both exceeded their minimum SLR requirement of 3.75 percent. For more information, see Capital Management – Regulatory Developments in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Capital Composition and Ratios
Table 8 presents Bank of America Corporation’s capital ratios and related information in accordance with Basel 3 Standardized and Advanced approaches as measured at June 30, 2026 and December 31, 2025. For the periods presented herein, the Corporation met the definition of well capitalized under current regulatory requirements.
Table 8 Bank of America Corporation Regulatory Capital under Basel 3
Standardized Approach Advanced Approaches Regulatory Minimum (1)
(Dollars in millions, except as noted) June 30, 2026
Risk-based capital metrics:
Common equity tier 1 capital $ 201,581 $ 201,581
Tier 1 capital 226,568 226,568
Total capital (2) 262,752 252,284
Risk-weighted assets (in billions) 1,792 1,613
Common equity tier 1 capital ratio 11.2 % 12.5 % 10.0 %
Tier 1 capital ratio 12.6 14.0 11.5
Total capital ratio 14.7 15.6 13.5
Leverage-based metrics:
Adjusted quarterly average assets (in billions) (3) $ 3,452 $ 3,452
Tier 1 leverage ratio 6.6 % 6.6 % 4.0
Supplementary leverage exposure (in billions) $ 4,122
Supplementary leverage ratio 5.5 % 3.75
December 31, 2025
Risk-based capital metrics:
Common equity tier 1 capital $ 201,410 $ 201,410
Tier 1 capital 227,382 227,382
Total capital (2) 261,232 250,347
Risk-weighted assets (in billions) 1,773 1,570
Common equity tier 1 capital ratio 11.4 % 12.8 % 10.0 %
Tier 1 capital ratio 12.8 14.5 11.5
Total capital ratio 14.7 15.9 13.5
Leverage-based metrics:
Adjusted quarterly average assets (in billions) (3) $ 3,348 $ 3,348
Tier 1 leverage ratio 6.8 % 6.8 % 4.0
Supplementary leverage exposure (in billions) $ 3,986
Supplementary leverage ratio 5.7 % 5.0
(1)The CET1 capital regulatory minimum is the sum of the CET1 capital ratio minimum of 4.5 percent, our G-SIB surcharge of 3.0 percent, and SCB (under the Standardized approach) of 2.5 percent at June 30, 2026 and December 31, 2025. The countercyclical capital buffer was zero for both periods. The SLR regulatory minimum at June 30, 2026 and December 31, 2025 includes a leverage buffer of 0.75 percent and 2.0 percent.
(2)Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses.
(3)Reflects total average assets adjusted for certain Tier 1 capital deductions.
At June 30, 2026, CET1 capital was $201.6 billion, an increase of $171 million from December 31, 2025, primarily due to earnings, largely offset by capital distributions and accumulated OCI. Tier 1 capital decreased $814 million driven by the same factors as CET1 capital and a preferred stock redemption. Total capital under the Standardized approach increased $1.5 billion driven by the same factors as Tier 1 capital, a subordinated debt issuance and a decrease in the
adjusted allowance for credit losses included in Tier 2 capital. RWA under the Standardized approach, which drove the lower CET1 capital ratio at June 30, 2026, increased $19.3 billion during the second quarter of 2026 to $1,792 billion primarily driven by growth in Global Banking and Global Markets, partially offset by GWIM. Supplementary leverage exposure at June 30, 2026 increased $135.8 billion primarily driven by increased activity in Global Markets and loan growth.
Bank of America 20
Table 9 shows the capital composition at June 30, 2026 and December 31, 2025.
Table 9 Capital Composition under Basel 3
(Dollars in millions) June 30 2026 December 31 2025
Total common shareholders’ equity $ 276,098 $ 277,251
Goodwill, net of related deferred tax liabilities (68,651) (68,651)
Deferred tax assets arising from net operating loss and tax credit carryforwards (8,561) (8,761)
Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities (1,357) (1,386)
Defined benefit pension plan net assets (886) (868)
Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax 1,541 1,825
Accumulated net (gain) loss on certain cash flow hedges (1) 3,413 2,020
Other (16) (20)
Common equity tier 1 capital 201,581 201,410
Qualifying preferred stock, net of issuance cost 24,995 25,991
Other (8) (19)
Tier 1 capital 226,568 227,382
Tier 2 capital instruments 22,348 19,627
Qualifying allowance for credit losses 14,318 14,431
Other (482) (208)
Total capital under the Standardized approach 262,752 261,232
Adjustment in qualifying allowance for credit losses under the Advanced approaches (10,468) (10,885)
Total capital under the Advanced approaches $ 252,284 $ 250,347
(1)Includes amounts in accumulated OCI related to the hedging of items that are not recognized at fair value on the Consolidated Balance Sheet.
Table 10 shows the components of RWA as measured under Basel 3 at June 30, 2026 and December 31, 2025.
Table 10 Risk-weighted Assets under Basel 3
Standardized Approach Advanced Approaches Standardized Approach Advanced Approaches
(Dollars in billions) June 30, 2026 December 31, 2025
Credit risk $ 1,710 $ 1,120 $ 1,694 $ 1,087
Market risk 82 82 79 79
Operational risk n/a 358 n/a 357
Risks related to credit valuation adjustments n/a 53 n/a 47
Total risk-weighted assets $ 1,792 $ 1,613 $ 1,773 $ 1,570
n/a = not applicable
21 Bank of America
Bank of America, N.A. Regulatory Capital
Table 11 presents regulatory capital information for BANA in accordance with Basel 3 Standardized and Advanced approaches as measured at June 30, 2026 and December 31, 2025. BANA met the definition of well capitalized under the PCA framework for both periods.
Table 11 Bank of America, N.A. Regulatory Capital under Basel 3
Standardized Approach Advanced Approaches Regulatory Minimum (1)
(Dollars in millions, except as noted) June 30, 2026
Risk-based capital metrics:
Common equity tier 1 capital $ 186,728 $ 186,728
Tier 1 capital 186,728 186,728
Total capital (2) 202,413 192,214
Risk-weighted assets (in billions) 1,544 1,259
Common equity tier 1 capital ratio 12.1 % 14.8 % 7.0 %
Tier 1 capital ratio 12.1 14.8 8.5
Total capital ratio 13.1 15.3 10.5
Leverage-based metrics:
Adjusted quarterly average assets (in billions) (3) $ 2,625 $ 2,625
Tier 1 leverage ratio 7.1 % 7.1 % 5.0
Supplementary leverage exposure (in billions) $ 3,161
Supplementary leverage ratio 5.9 % 3.75
December 31, 2025
Risk-based capital metrics:
Common equity tier 1 capital $ 190,831 $ 190,831
Tier 1 capital 190,831 190,831
Total capital (2) 206,640 196,006
Risk-weighted assets (in billions) 1,530 1,227
Common equity tier 1 capital ratio 12.5 % 15.6 % 7.0 %
Tier 1 capital ratio 12.5 15.6 8.5
Total capital ratio 13.5 16.0 10.5
Leverage-based metrics:
Adjusted quarterly average assets (in billions) (3) $ 2,592 $ 2,592
Tier 1 leverage ratio 7.4 % 7.4 % 5.0
Supplementary leverage exposure (in billions) $ 3,101
Supplementary leverage ratio 6.2 % 6.0
(1)Risk-based capital regulatory minimums at both June 30, 2026 and December 31, 2025 are the minimum ratios under Basel 3 including a capital conservation buffer of 2.5 percent. The regulatory minimums for the Tier 1 leverage ratios as of both period ends, and the SLR as of December 31, 2025, are the percent required to be considered well capitalized under the PCA framework.
(2)Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses.
(3)Reflects total average assets adjusted for certain Tier 1 capital deductions.
Total Loss-Absorbing Capacity Requirements
Total loss-absorbing capacity (TLAC) consists of the Corporation’s Tier 1 capital and eligible long-term debt issued directly by the Corporation. Eligible long-term debt for TLAC ratios is comprised of unsecured debt that has a remaining maturity of at least one year and satisfies additional requirements as prescribed in the TLAC final rule. As with the
risk-based capital ratios and SLR, the Corporation is required to maintain TLAC ratios in excess of minimum requirements plus applicable buffers to avoid restrictions on capital distributions and discretionary bonus payments to executive officers. Table 12 presents the Corporation's TLAC and long-term debt ratios and related information as of June 30, 2026 and December 31, 2025.
Bank of America 22
Table 12 Bank of America Corporation Total Loss-Absorbing Capacity and Long-Term Debt
TLAC Regulatory Minimum (1) Long-term Debt Regulatory Minimum (2)
(Dollars in millions) June 30, 2026
Total eligible balance $ 471,209 $ 229,637
Percentage of risk-weighted assets (3) 26.3 % 22.0 % 12.8 % 9.0 %
Percentage of supplementary leverage exposure 11.4 8.25 5.6 3.25
December 31, 2025
Total eligible balance $ 466,728 $ 225,518
Percentage of risk-weighted assets (3) 26.3 % 22.0 % 12.7 % 9.0 %
Percentage of supplementary leverage exposure 11.7 9.5 5.7 4.5
(1)The TLAC RWA regulatory minimum consists of 18.0 percent plus a TLAC RWA buffer comprised of 2.5 percent plus the Method 1 G-SIB surcharge of 1.5 percent. The countercyclical buffer is zero for both periods. The TLAC supplementary leverage exposure regulatory minimum consists of 7.5 percent plus a 0.75 percent TLAC leverage buffer. The TLAC RWA and leverage buffers must be comprised solely of CET1 capital and Tier 1 capital, respectively.
(2)The long-term debt RWA regulatory minimum is comprised of 6.0 percent plus the Corporation’s Method 2 G-SIB surcharge of 3.0 percent. The long-term debt leverage exposure regulatory minimum is 3.25 percent, consisting of 2.5 percent plus a 0.75 percent long-term debt leverage buffer.
(3)The approach that yields the higher RWA is used to calculate TLAC and long-term debt ratios, which was the Standardized approach as of June 30, 2026 and December 31, 2025.
Regulatory Developments
The following supplements the disclosure in Capital Management – Regulatory Developments in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
On March 19, 2026, the Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation issued a notice of proposed rulemaking (NPR) regarding risk-based capital requirements for large banking organizations. Separately, the Federal Reserve issued an NPR that would revise the calculation of the G-SIB surcharge. Any final rules issued are subject to change from the current proposals. The Corporation is evaluating the potential impact of the proposed rules on its regulatory capital requirements.
Regulatory Capital and Securities Regulation
The Corporation’s principal U.S. broker-dealer subsidiaries are BofA Securities, Inc. (BofAS) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S). The Corporation's principal European subsidiaries undertaking broker-dealer activities are Merrill Lynch International (MLI) and BofA Securities Europe SA (BofASE).
The U.S. broker-dealer subsidiaries are subject to the net capital requirements of Rule 15c3-1 under the Exchange Act. BofAS computes its capital requirements as an alternative net capital broker-dealer under Rule 15c3-1(a)(7) and Rule 15c3-1e, which permit the use of SEC-approved models, and MLPF&S computes its capital requirements in accordance with the alternative standard under Rule 15c3-1. BofAS is registered as a futures commission merchant and is subject to Commodity Futures Trading Commission (CFTC) Regulation 1.17. The U.S. broker-dealer subsidiaries are also registered with the Financial Industry Regulatory Authority, Inc. (FINRA). Pursuant to FINRA Rule 4110, FINRA may impose higher net capital requirements than Rule 15c3-1 under the Exchange Act with respect to each of the broker-dealers.
BofAS provides institutional services, and in accordance with the SEC alternative net capital requirements, is required to regularly maintain tentative net capital in excess of $5.0 billion and net capital in excess of the greater of $1.0 billion or a certain percentage of its reserve requirement in addition to a certain percentage of securities-based swap risk margin. BofAS must also notify the SEC in the event its tentative net capital is less than $6.0 billion. In accordance with CFTC net capital requirements, BofAS is required to hold a certain percentage of its customers' and affiliates' risk-based margin if greater than the SEC’s minimum net capital requirement. At June 30, 2026, BofAS had tentative net capital of $25.8 billion. BofAS also had
regulatory net capital of $21.1 billion, which exceeded the minimum requirement of $5.4 billion.
MLPF&S provides retail services and is required to maintain net capital that is the greater of $250,000 or two percent of a certain component of its reserve calculation. At June 30, 2026, MLPF&S' regulatory net capital was $11.4 billion, which exceeded the minimum requirement of $227 million.
Our European broker-dealers are subject to requirements from U.S. and non-U.S. regulators. MLI, a U.K. investment firm, is regulated by the Prudential Regulation Authority and the Financial Conduct Authority and is subject to certain regulatory capital requirements. At June 30, 2026, MLI’s capital resources were $34.3 billion, which exceeded the minimum Pillar 1 requirement of $14.0 billion.
BofASE, an authorized credit institution with its head office located in France, is regulated by the Autorité de Contrôle Prudentiel et de Résolution and the Autorité des Marchés Financiers, and supervised under the Single Supervisory Mechanism by the European Central Bank. At June 30, 2026, BofASE's capital resources were $11.6 billion, which exceeded the minimum Pillar 1 requirement of $4.4 billion.
In addition, MLI and BofASE remained conditionally registered with the SEC as security-based swap dealers, and maintained net liquid assets at June 30, 2026 that exceeded the applicable minimum requirements under the Exchange Act. The entities are also registered as swap dealers with the CFTC and met applicable capital requirements at June 30, 2026.
Liquidity Risk
Funding and Liquidity Risk Management
Our primary liquidity risk management objective is to meet expected or unexpected cash flow and collateral requirements, including payments under long-term debt agreements, commitments to extend credit and customer deposit withdrawals, while continuing to support our businesses and customers under a range of economic conditions. To achieve that objective, we analyze and monitor our liquidity risk under expected and stressed conditions, maintain liquidity and access to diverse funding sources, including our stable deposit base, and seek to align liquidity-related incentives and risks. These liquidity risk management practices have helped enable us to effectively navigate market volatility arising from the interest rate environment, inflationary pressures and broader macroeconomic changes.
We define liquidity as readily available assets, limited to cash and high-quality, liquid, unencumbered securities that we
23 Bank of America
can use to meet our contractual and contingent financial obligations as they arise. We manage our liquidity position through line of business and ALM activities, as well as through our legal entity funding strategy, on both a forward and current (including intraday) basis under both expected and stressed conditions. We believe that a centralized approach to funding and liquidity management enhances our ability to monitor liquidity requirements, maximizes access to funding sources, minimizes borrowing costs and facilitates timely responses to liquidity events.
We provide centralized funding and liquidity management through a variety of activities, including monitoring of established limits, assessing exposures under both normal and stressed conditions and reviewing liquidity risk management processes and controls. Global Risk Management (GRM) provides oversight of liquidity management across the Corporation, including front line units and legal entities. GRM oversees the liquidity risk management governance structure, establishes liquidity risk policies, and provides independent review and challenge of the Corporation's liquidity risk management processes.
For more information on the Corporation’s liquidity risks, see the Liquidity section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K. For more information regarding global funding and liquidity risk management, as well as liquidity sources, liquidity arrangements, contingency planning and credit ratings discussed below, see Liquidity Risk in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
NB Holdings Corporation
Bank of America Corporation, as the parent company (the Parent), which is a separate and distinct legal entity from our bank and nonbank subsidiaries, has an intercompany arrangement with our wholly-owned holding company subsidiary, NB Holdings Corporation (NB Holdings). We have transferred, and agreed to transfer, additional Parent assets not required to satisfy anticipated near-term expenditures to NB Holdings. The Parent is expected to continue to have access to the same flow of dividends, interest and other amounts of cash necessary to service its debt, pay dividends and perform other obligations as it would have had it not entered into these arrangements and transferred any assets. These arrangements support our preferred single point of entry resolution strategy, under which only the Parent would be resolved under the U.S. Bankruptcy Code.
Global Liquidity Sources and Other Unencumbered Assets
We maintain liquidity available to the Corporation, including the Parent and selected subsidiaries, in the form of cash and high- quality, liquid, unencumbered securities. Our liquidity buffer, referred to as Global Liquidity Sources (GLS), is comprised of assets that are readily available to the Parent and selected subsidiaries, including holding company, bank and broker-dealer subsidiaries, even during stressed market conditions. Our cash is primarily on deposit with the Federal Reserve Bank and, to a lesser extent, central banks outside of the U.S. We limit the composition of high-quality, liquid, unencumbered securities to U.S. government securities, U.S. agency securities, U.S. agency mortgage-backed securities and other investment-grade securities, and a select group of non-U.S. government securities. We can obtain cash for these securities, even in stressed conditions, through repurchase agreements or outright sales. We hold our GLS in legal entities that allow us to meet the liquidity requirements of our global businesses, and we consider the impact of potential regulatory, tax, legal and other
restrictions that could limit the transferability of funds among entities.
Table 13 presents average GLS for the three months ended June 30, 2026 and December 31, 2025.
Table 13 Average Global Liquidity Sources
Three Months Ended
(Dollars in billions) June 30 2026 December 31 2025
Bank entities $ 759 $ 789
Nonbank and other entities (1) 188 186
Total Average Global Liquidity Sources $ 947 $ 975
(1) Nonbank includes Parent, NB Holdings and other regulated entities.
Our bank subsidiaries’ liquidity is primarily driven by deposit and lending activity, as well as securities valuation and net debt activity. Bank subsidiaries can also generate incremental liquidity by pledging a range of unencumbered loans and securities to certain Federal Home Loan Banks (FHLBs) and the Federal Reserve Discount Window. The cash we could have obtained by borrowing against this pool of specifically-identified eligible assets was $357 billion and $343 billion at June 30, 2026 and December 31, 2025. We have established operational procedures to enable us to borrow against these assets, including regularly monitoring our total pool of eligible loans and securities collateral. Eligibility is defined in guidelines from the FHLBs and the Federal Reserve and is subject to change at their discretion. Due to regulatory restrictions, liquidity generated by the bank subsidiaries can generally be used only to fund obligations within the bank subsidiaries, and transfers to the Parent or nonbank subsidiaries may be subject to prior regulatory approval.
Liquidity is also held in nonbank entities, including the Parent, NB Holdings and other regulated entities. The Parent and NB Holdings liquidity is typically in the form of cash deposited at BANA, which is excluded from the liquidity at bank subsidiaries, and high-quality, liquid, unencumbered securities. Liquidity held in other regulated entities, comprised primarily of broker-dealer subsidiaries, is primarily available to meet the obligations of that entity, and transfers to the Parent or to any other subsidiary may be subject to prior regulatory approval due to regulatory restrictions and minimum requirements. Our other regulated entities also hold unencumbered investment-grade securities and equities that we believe could be used to generate additional liquidity.
Table 14 presents the composition of average GLS for the three months ended June 30, 2026 and December 31, 2025.
Table 14 Average Global Liquidity Sources Composition
Three Months Ended
(Dollars in billions) June 30 2026 December 31 2025
Cash on deposit $ 251 $ 227
U.S. Treasury securities 298 371
U.S. agency securities, mortgage-backed securities, and other investment-grade securities 356 336
Non-U.S. government securities 42 41
Total Average Global Liquidity Sources $ 947 $ 975
Our GLS are substantially the same in composition as what qualifies as High Quality Liquid Assets (HQLA) under the final U.S. Liquidity Coverage Ratio (LCR) rules. However, HQLA for purposes of calculating LCR is not reported at market value, but
Bank of America 24
at a lower value that incorporates regulatory deductions and the exclusion of excess liquidity held at certain subsidiaries. The LCR is calculated as the amount of a financial institution’s unencumbered HQLA relative to the estimated net cash outflows the institution could encounter over a 30-day period of significant liquidity stress, expressed as a percentage. Our average consolidated HQLA, on a net basis, was $684 billion and $667 billion for the three months ended June 30, 2026 and December 31, 2025. For both periods, the average consolidated LCR was 112 percent. Our LCR may fluctuate due to normal business flows from customer activity.
Liquidity Stress Analysis
We utilize liquidity stress analysis to assist us in determining the appropriate amounts of liquidity to maintain at the Parent and our subsidiaries to meet contractual and contingent cash outflows under a range of scenarios. For more information on liquidity stress analysis, see Liquidity Risk – Liquidity Stress Analysis in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Net Stable Funding Ratio
The Net Stable Funding Ratio (NSFR) is a liquidity requirement for large banks to maintain a minimum level of stable funding over a one-year period. The requirement is intended to support the ability of banks to lend to households and businesses in both normal and adverse economic conditions and is complementary to the LCR, which focuses on short-term liquidity risks. The U.S. NSFR applies to the Corporation on a consolidated basis and to our insured depository institutions. For the three months ended March 31, 2026 and June 30, 2026, the average consolidated NSFR was 119 percent and 117 percent.
Diversified Funding Sources
We fund our assets primarily with a mix of deposits, and secured and unsecured liabilities through a centralized, globally coordinated funding approach diversified across products, programs, markets, currencies and investor groups. We fund a substantial portion of our lending activities through our deposits, which were $2.03 trillion and $2.02 trillion at June 30, 2026 and December 31, 2025. Our trading activities in other regulated entities are primarily funded on a secured
basis through securities lending and repurchase agreements, and these amounts will vary based on customer activity and market conditions.
Deposits
Our deposit base is well-diversified by clients, geography and product type across our business segments. At June 30, 2026, 47 percent of our deposits were in Consumer Banking, 14 percent in GWIM and 33 percent in Global Banking. We consider a substantial portion of our deposit base to be a stable, low-cost and consistent source of liquidity. At June 30, 2026, approximately 70 percent of consumer and small business deposits and approximately 83 percent of U.S. deposits in Global Banking were held by clients who have had accounts with us for 10 or more years. In addition, at June 30, 2026 and December 31, 2025, 27 percent and 26 percent of our deposits were noninterest bearing and were primarily operating accounts of our consumer and commercial clients. Deposits at June 30, 2026 increased $6.4 billion from December 31, 2025 primarily due to deposit growth in Global Banking, partially offset by lower deposits in GWIM due to an expected seasonal decline from customer tax payments.
During the three months ended June 30, 2026 and 2025, rates paid on deposits were 48 bps and 58 bps in Consumer Banking, 202 bps and 247 bps in GWIM, and 223 bps and 277 bps in Global Banking. For information on rates paid on consolidated deposit balances, see Table 6 on page 8.
Long-term Debt
During the six months ended June 30, 2026, we issued $73.8 billion of long-term debt consisting of $22.7 billion of notes issued by Bank of America Corporation, substantially all of which were TLAC compliant, $24.2 billion of notes issued by Bank of America, N.A. and $26.9 billion of other debt, which was primarily structured notes.
During the six months ended June 30, 2026, we had total long-term debt maturities and redemptions in the aggregate of $51.2 billion consisting of $20.0 billion for Bank of America Corporation, $13.5 billion for Bank of America, N.A. and $17.7 billion of other debt. Table 15 presents the carrying value of aggregate annual contractual maturities of long-term debt at June 30, 2026.
25 Bank of America
Table 15 Long-term Debt by Maturity
(Dollars in millions) Remainder of 2026 2027 2028 2029 2030 Thereafter Total
Bank of America Corporation
Senior notes (1) $ 411 $ 11,624 $ 30,085 $ 26,644 $ 12,070 $ 104,395 $ 185,229
Senior structured notes 838 1,953 553 1,457 1,051 16,192 22,044
Subordinated notes 2,906 2,006 869 — — 20,420 26,201
Junior subordinated notes — 178 — — — 557 735
Total Bank of America Corporation 4,155 15,761 31,507 28,101 13,121 141,564 234,209
Bank of America, N.A.
Senior notes 8,464 15,451 687 — — — 24,602
Subordinated notes — — — — — 1,398 1,398
Advances from Federal Home Loan Banks 1,402 5,806 7 2 5 27 7,249
Securitizations and other bank VIEs (2) 1,500 1,295 1,878 1,980 542 179 7,374
Other 34 207 113 174 — 3 531
Total Bank of America, N.A. 11,400 22,759 2,685 2,156 547 1,607 41,154
Other debt
Structured liabilities 4,727 12,671 7,000 4,931 4,997 29,993 64,319
Nonbank VIEs (2) — — — — 2 179 181
Total other debt 4,727 12,671 7,000 4,931 4,999 30,172 64,500
Total $ 20,282 $ 51,191 $ 41,192 $ 35,188 $ 18,667 $ 173,343 $ 339,863
(1)Total includes $176.9 billion of outstanding senior notes that are both TLAC eligible and callable one year before their stated maturities, including $11.7 billion during the remainder of 2026, and $27.1 billion, $27.8 billion, $12.0 billion and $21.4 billion during each year of 2027 through 2030, respectively, and $76.9 billion thereafter. For more information on our TLAC eligible and callable outstanding notes, see Liquidity Risk – Diversified Funding Sources in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
(2)Represents liabilities of consolidated variable interest entities (VIEs) included in long-term debt on the Consolidated Balance Sheet.
Total long-term debt increased $22.0 billion to $339.9 billion during the six months ended June 30, 2026 primarily due to debt issuances, partially offset by maturities and valuation adjustments. We may, from time to time, repurchase outstanding debt instruments in various transactions, depending on market conditions, liquidity and other factors. Our other regulated entities may also make markets in our debt instruments to provide liquidity for investors.
During the six months ended June 30, 2026, we issued $31.4 billion of structured notes, which are debt obligations that pay investors returns linked to other debt or equity securities, indices, currencies or commodities. These structured notes are typically issued to meet client demand, and notes with certain attributes may also be TLAC eligible. We typically use derivatives and/or investments to economically hedge the variable returns due on the structured notes so that the net cost, which is recognized in market making and similar activities, is similar to unsecured long-term debt. We could be required to settle certain structured note obligations for cash or other securities prior to maturity under certain circumstances, which we consider for liquidity planning purposes. We believe, however, that a portion of such borrowings will remain outstanding beyond the earliest put or redemption date.
Substantially all of our senior and subordinated debt obligations contain no provisions that could trigger a requirement for an early repayment, require additional collateral support, result in changes to terms, accelerate maturity or create additional financial obligations upon an adverse change in our credit ratings, financial ratios, earnings, cash flows or stock price. For more information on long-term debt funding,
including issuances and maturities and redemptions, see Note 11 – Long-term Debt to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.
We use derivative transactions to manage the duration, interest rate and currency risks of our borrowings, considering the characteristics of the assets they are funding. For more information on our ALM activities, see Interest Rate Risk Management for the Banking Book on page 43.
Credit Ratings
Credit ratings and outlooks are opinions expressed by rating agencies on our creditworthiness and that of our obligations or securities, including long-term debt, short-term borrowings, preferred stock and other securities, including asset securitizations. Table 16 presents the Corporation’s current long-term/short-term senior debt ratings and outlooks expressed by the rating agencies.
The ratings and outlooks from Moody's Investors Service, Standard & Poor’s Global Ratings and Fitch Ratings for the Corporation and its subsidiaries have not changed from those disclosed in the Corporation's 2025 Annual Report on Form 10-K.
For more information on additional collateral and termination payments that could be required in connection with certain over-the-counter derivative contracts and other trading agreements in the event of a credit rating downgrade, see Note 3 – Derivatives to the Consolidated Financial Statements herein and Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K.
Bank of America 26
Table 16 Senior Debt Ratings
Moody’s Investors Service Standard & Poor’s Global Ratings Fitch Ratings
Long-term Short-term Outlook Long-term Short-term Outlook Long-term Short-term Outlook
Bank of America Corporation A1 P-1 Stable A- A-2 Stable AA- F1+ Stable
Bank of America, N.A. Aa2 P-1 Stable A+ A-1 Stable AA F1+ Stable
Bank of America Europe Designated Activity Company NR NR NR A+ A-1 Stable AA F1+ Stable
Merrill Lynch, Pierce, Fenner & Smith Incorporated NR NR NR A+ A-1 Stable AA F1+ Stable
BofA Securities, Inc. NR NR NR A+ A-1 Stable AA F1+ Stable
Merrill Lynch International NR NR NR A+ A-1 Stable AA F1+ Stable
BofA Securities Europe SA NR NR NR A+ A-1 Stable AA F1+ Stable
NR = not rated
Finance Subsidiary Issuers and Parent Guarantor
BofA Finance LLC, a Delaware limited liability company (BofA Finance), is a consolidated finance subsidiary of the Corporation that has issued and sold, and is expected to continue to issue and sell, its senior unsecured debt securities (Guaranteed Notes) that are fully and unconditionally guaranteed by the Corporation. The Corporation guarantees the due and punctual payment, on demand, of amounts payable on the Guaranteed Notes if not paid by BofA Finance. In addition, each of BAC Capital Trust XIII, BAC Capital Trust XIV and BAC Capital Trust XV, Delaware statutory trusts (collectively, the Trusts) is a 100 percent owned finance subsidiary of the Corporation that has issued and sold trust preferred securities (the Trust Preferred Securities) or capital securities (the Capital Securities and, together with the Guaranteed Notes and the Trust Preferred Securities, the Guaranteed Securities), as applicable, that remained outstanding at June 30, 2026. The Corporation has fully and unconditionally guaranteed (or effectively provided for the full and unconditional guarantee of) all such securities issued by such finance subsidiaries. For more information regarding such guarantees by the Corporation, see Liquidity Risk – Finance Subsidiary Issuers and Parent Guarantor in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Representations and Warranties Obligations
For information on representations and warranties obligations in connection with the sale of mortgage loans, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.
Credit Risk Management
For information on our credit risk management activities, see the following: Consumer Portfolio Credit Risk Management on page 27, Commercial Portfolio Credit Risk Management on page 32, Non-U.S. Portfolio on page 38, Allowance for Credit Losses on page 39, Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements, and Credit Risk Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K. For more information on the Corporation’s credit risks, see the Credit section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K. For more information on the Corporation’s economic and geopolitical risks, see the Geopolitical section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K.
During the six months ended June 30, 2026, our net charge-off ratio decreased compared to the same period in 2025 primarily driven by lower commercial real estate office charge-offs. Commercial reservable criticized exposure decreased $2.7
billion compared to December 31, 2025 driven by commercial real estate as well as the commercial and industrial portfolio. Nonperforming loans remained relatively unchanged compared to December 31, 2025 at $5.8 billion. Uncertainties surrounding geopolitical tensions, particularly related to the ongoing conflicts in the Middle East, and persistent inflationary pressures continue to weigh on the broader economic outlook. These factors have been assessed for any impacts to the portfolio and may contribute to future deterioration in credit quality metrics as they evolve.
Consumer Portfolio Credit Risk Management
Credit risk management for the consumer portfolio begins with initial underwriting and continues throughout a borrower’s credit cycle. Statistical techniques in conjunction with experiential judgment are used in all aspects of portfolio management including underwriting, product pricing, risk appetite, setting credit limits, and establishing operating processes and metrics to quantify and balance risks and returns. Statistical models are built using detailed behavioral information from external sources, such as credit bureaus, and/or internal historical experience and are a component of our consumer credit risk management process. These models are used in part to assist in making both new and ongoing credit decisions as well as portfolio management strategies, including authorizations and line management, collection practices and strategies, and determination of the allowance for loan and lease losses and allocated capital for credit risk.
Consumer Credit Portfolio
During the six months ended June 30, 2026, the U.S. unemployment rate and home prices remained relatively stable. During the three months ended June 30, 2026, net charge-offs remained relatively unchanged at $1.0 billion compared to the same period in 2025. During the six months ended June 30, 2026, net charge-offs decreased $79 million to $2.1 billion compared to the same period in 2025, primarily due to improvement in the credit card portfolio.
The consumer allowance for loan and lease losses decreased $134 million to $8.2 billion from December 31, 2025. For more information, see Allowance for Credit Losses on page 39.
For more information on our accounting policies regarding delinquencies, nonperforming status, charge-offs and loan modifications for the consumer portfolio, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.
27 Bank of America
Table 17 presents our outstanding consumer loans and leases, consumer nonperforming loans and accruing consumer loans past due 90 days or more.
Table 17 Consumer Credit Quality
Outstandings Nonperforming Accruing Past Due 90 Days or More
(Dollars in millions) June 30 2026 December 31 2025 June 30 2026 December 31 2025 June 30 2026 December 31 2025
Residential mortgage (1) $ 236,316 $ 236,302 $ 2,049 $ 2,008 $ 219 $ 207
Home equity 27,114 26,823 371 392 — —
Credit card 105,659 106,027 n/a n/a 1,241 1,351
Direct/Indirect consumer (2) 118,327 114,130 170 176 1 5
Other consumer 182 144 — — — —
Consumer loans excluding loans accounted for under the fair value option $ 487,598 $ 483,426 $ 2,590 $ 2,576 $ 1,461 $ 1,563
Loans accounted for under the fair value option (3) 159 165
Total consumer loans and leases $ 487,757 $ 483,591
Percentage of outstanding consumer loans and leases (4) n/a n/a 0.53 % 0.53 % 0.30 % 0.32 %
Percentage of outstanding consumer loans and leases, excluding fully-insured loan portfolios (4) n/a n/a 0.54 0.54 0.26 0.29
(1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At June 30, 2026 and December 31, 2025, residential mortgage included $119 million and $104 million of loans on which interest had been curtailed by the Federal Housing Administration (FHA), and therefore were no longer accruing interest, although principal was still insured, and $100 million and $103 million of loans on which interest was still accruing.
(2)Outstandings primarily includes auto and specialty lending loans and leases of $52.4 billion and $55.3 billion, U.S. securities-based lending loans of $61.9 billion and $55.0 billion, and non-U.S. consumer loans of $3.2 billion and $3.0 billion at June 30, 2026 and December 31, 2025.
(3)For more information on the fair value option, see Note 15 – Fair Value Option to the Consolidated Financial Statements.
(4)Excludes consumer loans accounted for under the fair value option. At June 30, 2026 and December 31, 2025, loans accounted for under the fair value option that were past due 90 days or more and not accruing interest were insignificant.
n/a = not applicable
Table 18 presents net charge-offs and related ratios for consumer loans and leases.
Table 18 Consumer Net Charge-offs and Related Ratios
Net Charge-offs (1) Net Charge-off Ratios (1)
Three Months Ended June 30 Six Months Ended June 30 Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025 2026 2025 2026 2025
Residential mortgage $ 1 $ 2 $ 6 $ 2 — % — % — % — %
Home equity (6) (10) (13) (22) (0.09) (0.15) (0.09) (0.17)
Credit card 919 954 1,843 1,955 3.55 3.82 3.59 3.94
Direct/Indirect consumer 56 47 130 117 0.19 0.17 0.23 0.22
Other consumer 70 66 133 126 n/m n/m n/m n/m
Total $ 1,040 $ 1,059 $ 2,099 $ 2,178 0.86 0.90 0.88 0.94
(1)Negative numbers represent net recoveries. Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases, excluding loans accounted for under the fair value option.
n/m = not meaningful
We believe that the presentation of information adjusted to exclude the impact of the fully-insured loan portfolio and loans accounted for under the fair value option is more representative of the ongoing operations and credit quality of the business. As a result, in the following tables and discussions of the residential mortgage and home equity portfolios, we exclude loans accounted for under the fair value option and provide information that excludes the impact of the fully-insured loan portfolio in certain credit quality statistics.
Residential Mortgage
The residential mortgage portfolio made up the largest percentage of our consumer loan portfolio at 48 percent of consumer loans and leases at June 30, 2026. Approximately 49 percent of the residential mortgage portfolio was in Consumer Banking, 48 percent was in GWIM and the remaining portion was in Global Markets and All Other.
Outstanding balances in the residential mortgage portfolio were relatively unchanged during the six months ended June 30, 2026.
At June 30, 2026 and December 31, 2025, the residential mortgage portfolio included $8.7 billion and $9.1 billion of outstanding fully-insured loans, of which $1.8 billion and $1.9 billion had FHA insurance, with the remainder protected by Fannie Mae long-term standby agreements.
Table 19 presents certain residential mortgage key credit statistics on both a reported basis and excluding the fully-insured loan portfolio. The following discussion presents the residential mortgage portfolio excluding the fully-insured loan portfolio.
Bank of America 28
Table 19 Residential Mortgage – Key Credit Statistics
Reported Basis (1) Excluding Fully-insured Loans (1)
(Dollars in millions) June 30 2026 December 31 2025 June 30 2026 December 31 2025
Outstandings $ 236,316 $ 236,302 $ 227,665 $ 227,227
Accruing past due 30 days or more 1,691 1,609 1,271 1,159
Accruing past due 90 days or more 219 207 — —
Nonperforming loans (2) 2,049 2,008 2,049 2,008
Percent of portfolio
Refreshed LTV greater than 90 but less than or equal to 100 1 % 1 % 1 % 1 %
Refreshed LTV greater than 100 1 1 1 1
Refreshed FICO below 620 2 2 1 1
(1)Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option.
(2)Includes loans that are contractually current that have not yet demonstrated a sustained period of payment performance following a modification.
Nonperforming outstanding balances in the residential mortgage portfolio increased $41 million to $2.0 billion during the six months ended June 30, 2026 driven by extended relief provided to borrowers for their residential rebuilding efforts after the 2025 California wildfires. Of the nonperforming residential mortgage loans at June 30, 2026, $1.2 billion, or 58 percent, were current on contractual payments. Excluding fully-insured loans, loans accruing past due 30 days or more increased $112 million to $1.3 billion during the six months ended June 30, 2026.
Of the $227.7 billion in total residential mortgage loans outstanding at June 30, 2026, $66.1 billion, or 29 percent, of loans were originated as interest-only. The outstanding balance of interest-only residential mortgage loans that had entered the amortization period was $3.7 billion, or six percent, at June 30, 2026. Residential mortgage loans that have entered the amortization period generally experience a higher rate of early stage delinquencies and nonperforming status compared to the residential mortgage portfolio as a whole. At June 30, 2026, $42 million, or one percent, of outstanding interest-only residential mortgages that had entered the amortization period were accruing past due 30 days or more compared to $1.3
billion, or less than one percent, for the entire residential mortgage portfolio. In addition, at June 30, 2026, $158 million, or four percent, of outstanding interest-only residential mortgage loans that had entered the amortization period were nonperforming, of which $46 million were contractually current. Loans that have yet to enter the amortization period in our interest-only residential mortgage portfolio are primarily well-collateralized loans to our wealth management clients and have an interest-only period of three years to 10 years. Substantially all of these loans that have yet to enter the amortization period will not be required to make a fully-amortizing payment until 2028 or later.
Table 20 presents outstandings, nonperforming loans and net charge-offs by certain state concentrations for the residential mortgage portfolio. In the New York area, the New York-Northern New Jersey-Long Island Metropolitan Statistical Area (MSA) made up 14 percent and 15 percent of outstandings at June 30, 2026 and December 31, 2025. The Los Angeles-Long Beach-Santa Ana MSA within California represented 14 percent of outstandings at both June 30, 2026 and December 31, 2025.
Table 20 Residential Mortgage State Concentrations
Outstandings (1) Nonperforming (1) Net Charge-offs (2)
June 30 2026 December 31 2025 June 30 2026 December 31 2025 Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
California $ 83,223 $ 82,719 $ 677 $ 601 $ 2 $ 2 $ 2 $ 2
New York 25,861 25,927 279 277 — — 1 —
Florida 16,885 16,696 136 139 (1) — (1) —
Massachusetts 9,577 9,674 42 51 — — — —
New Jersey 9,360 9,474 78 83 (1) — — —
Other 82,759 82,737 837 857 1 — 4 —
Residential mortgage loans $ 227,665 $ 227,227 $ 2,049 $ 2,008 $ 1 $ 2 $ 6 $ 2
Fully-insured loan portfolio 8,651 9,075
Total residential mortgage loan portfolio $ 236,316 $ 236,302
(1)Outstandings and nonperforming loans exclude loans accounted for under the fair value option.
(2)Negative numbers represent net recoveries.
Home Equity
At June 30, 2026, the home equity portfolio made up six percent of the consumer portfolio and was comprised of home equity lines of credit (HELOCs), home equity loans and reverse mortgages. HELOCs generally have an initial draw period of 10 years, and after the initial draw period ends, the loans generally convert to 15- or 20-year amortizing loans. We no longer originate home equity loans or reverse mortgages.
At June 30, 2026, 85 percent of the home equity portfolio was in Consumer Banking, 11 percent was in GWIM and the remainder of the portfolio was in All Other. Outstanding balances in the home equity portfolio increased $291 million during the six months ended June 30, 2026 primarily due to draws on existing lines and new originations outpacing paydowns. Of the total home equity portfolio at June 30, 2026 and December 31, 2025, $8.8 billion and $8.9 billion, or 33 percent for both periods, were in first-lien positions.
29 Bank of America
At June 30, 2026, outstanding balances in the home equity portfolio that were in a second-lien or more junior-lien position and where we also held the first-lien loan totaled $4.8 billion, or 18 percent, of our total home equity portfolio.
Unused HELOCs totaled $42.3 billion and $43.1 billion at June 30, 2026 and December 31, 2025. The HELOC utilization rate was 39 percent and 38 percent at June 30, 2026 and December 31, 2025.
Table 21 presents certain home equity portfolio key credit statistics.
Table 21 Home Equity – Key Credit Statistics (1)
(Dollars in millions) June 30 2026 December 31 2025
Outstandings $ 27,114 $ 26,823
Accruing past due 30 days or more 75 87
Nonperforming loans (2) 371 392
Percent of portfolio
Refreshed CLTV greater than 90 but less than or equal to 100 — % — %
Refreshed CLTV greater than 100 — —
Refreshed FICO below 620 3 3
(1)Outstandings, accruing past due, nonperforming loans and percentages of the portfolio exclude loans accounted for under the fair value option.
(2)Includes loans that are contractually current that have not yet demonstrated a sustained period of payment performance following a modification.
Nonperforming outstanding balances in the home equity portfolio decreased $21 million to $371 million during the six months ended June 30, 2026. Of the nonperforming home equity loans at June 30, 2026, $231 million, or 62 percent, were current on contractual payments. In addition, $71 million, or 19 percent, were 180 days or more past due and had been written down to the estimated fair value of the collateral, less costs to sell. Accruing loans that were 30 days or more past due remained relatively unchanged during the six months ended June 30, 2026.
Of the $27.1 billion in total home equity portfolio outstandings at June 30, 2026, as shown in Table 21, nine percent require interest-only payments. The outstanding balance of HELOCs that had reached the end of their draw period and entered the amortization period was $3.1 billion at June 30, 2026. The HELOCs that have entered the amortization period have experienced a higher percentage of early stage delinquencies and nonperforming status when compared to the HELOC portfolio as a whole. At June 30, 2026, $23 million, or one percent, of outstanding HELOCs that had entered the
amortization period were accruing past due 30 days or more. In addition, at June 30, 2026, $193 million, or six percent, were nonperforming.
For our interest-only HELOC portfolio, we can determine how many of our home equity customers pay only the minimum amount due on their home equity loans and lines through a review of our HELOC portfolio that we service and is still in its revolving period. During the six months ended June 30, 2026, 21 percent of these customers with an outstanding balance did not pay any principal on their HELOCs.
Table 22 presents outstandings, nonperforming balances and net recoveries by certain state concentrations for the home equity portfolio. In the New York area, the New York-Northern New Jersey-Long Island MSA made up 10 percent of the outstanding home equity portfolio at both June 30, 2026 and December 31, 2025. The Los Angeles-Long Beach-Santa Ana MSA within California made up 10 percent of the outstanding home equity portfolio at both June 30, 2026 and December 31, 2025.
Table 22 Home Equity State Concentrations
Outstandings (1) Nonperforming (1) Net Charge-offs (2)
June 30 2026 December 31 2025 June 30 2026 December 31 2025 Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
California $ 7,283 $ 7,219 $ 106 $ 108 $ (1) $ (3) $ (3) $ (5)
Florida 2,563 2,588 40 43 (1) (1) (2) (2)
New Jersey 1,890 1,871 24 27 (1) (1) (2) (2)
Texas 1,708 1,674 18 17 1 — 1 —
New York 1,396 1,421 50 55 (1) (1) (2) (3)
Other 12,274 12,050 133 142 (3) (4) (5) (10)
Total home equity loan portfolio $ 27,114 $ 26,823 $ 371 $ 392 $ (6) $ (10) $ (13) $ (22)
(1)Outstandings and nonperforming loans exclude loans accounted for under the fair value option.
(2)Negative numbers represent net recoveries.
Credit Card
At June 30, 2026, 96 percent of the credit card portfolio was managed in Consumer Banking with the remainder in GWIM. Outstandings in the credit card portfolio remained relatively unchanged at $105.7 billion during the six months ended June 30, 2026.
Net charge-offs decreased $35 million to $919 million and decreased $112 million to $1.8 billion during the three and six months ended June 30, 2026 compared to the same periods in 2025, as asset quality continued to improve. Credit card loans 30 days or more past due decreased $252 million to $2.4 billion, and 90 days or more past due decreased $110 million to $1.2 billion during the six months ended June 30, 2026.
Bank of America 30
Unused lines of credit for credit card increased to $430.1 billion at June 30, 2026 from $417.6 billion at December 31, 2025.
Table 23 presents certain state concentrations for the credit card portfolio.
Table 23 Credit Card State Concentrations
Outstandings Past Due 90 Days or More Net Charge-offs
June 30 2026 December 31 2025 June 30 2026 December 31 2025 Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
California $ 17,567 $ 17,664 $ 228 $ 241 $ 166 $ 186 $ 334 $ 379
Florida 11,110 11,169 173 192 131 126 263 267
Texas 9,395 9,403 124 142 95 94 190 193
Washington 5,954 5,853 44 47 31 32 62 63
New York 5,774 5,822 76 80 55 58 109 118
Other 55,859 56,116 596 649 441 458 885 935
Total credit card portfolio $ 105,659 $ 106,027 $ 1,241 $ 1,351 $ 919 $ 954 $ 1,843 $ 1,955
Direct/Indirect Consumer
At June 30, 2026, 44 percent of the direct/indirect portfolio was included in Consumer Banking (consumer auto and recreational vehicle lending) and 56 percent was included in GWIM (principally securities-based lending loans). Outstandings
in the direct/indirect portfolio increased $4.2 billion during the six months ended June 30, 2026 to $118.3 billion driven by an increase in securities-based lending.
Table 24 presents certain state concentrations for the direct/indirect consumer loan portfolio.
Table 24 Direct/Indirect State Concentrations
Outstandings Nonperforming Net Charge-offs
June 30 2026 December 31 2025 June 30 2026 December 31 2025 Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
California $ 17,862 $ 17,247 $ 42 $ 44 $ 22 $ 12 $ 47 $ 29
Florida 16,347 15,127 16 20 5 7 14 15
Texas 11,436 11,051 16 17 6 6 14 14
New York 8,565 8,019 25 10 2 2 4 7
New Jersey 5,032 4,740 6 6 1 2 3 3
Other 59,085 57,946 65 79 20 18 48 49
Total direct/indirect loan portfolio $ 118,327 $ 114,130 $ 170 $ 176 $ 56 $ 47 $ 130 $ 117
Other Consumer
Other consumer primarily consists of deposit overdraft balances. Net charge-offs increased $4 million to $70 million and $7 million to $133 million during the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily driven by higher overdraft losses.
Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity
Table 25 presents nonperforming consumer loans, leases and foreclosed properties activity for the three and six months ended June 30, 2026 and 2025. During the six months ended June 30, 2026, nonperforming consumer loans remained relatively unchanged at $2.6 billion.
At June 30, 2026, $480 million, or 19 percent, of nonperforming loans were 180 days or more past due and had been written down to their estimated property value less costs to sell. In addition, at June 30, 2026, $1.5 billion, or 57 percent, of nonperforming consumer loans were current and classified as nonperforming loans in accordance with applicable policies.
During the six months ended June 30, 2026, foreclosed properties increased $7 million to $97 million.
31 Bank of America
Table 25 Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
Nonperforming loans and leases, beginning of period $ 2,680 $ 2,613 $ 2,576 $ 2,647
Additions 305 264 700 506
Reductions:
Paydowns and payoffs (135) (132) (253) (243)
Sales (87) (1) (87) (2)
Returns to performing status (1) (156) (157) (306) (311)
Charge-offs (12) (13) (27) (18)
Transfers to foreclosed properties (5) (10) (13) (15)
Total net additions (reductions) to nonperforming loans and leases (90) (49) 14 (83)
Total nonperforming loans and leases, June 30 2,590 2,564 2,590 2,564
Foreclosed properties, June 30 97 94 97 94
Nonperforming consumer loans, leases and foreclosed properties, June 30 $ 2,687 $ 2,658 $ 2,687 $ 2,658
Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases (2) 0.53 % 0.54 %
Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties (2) 0.55 0.56
(1)Consumer loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection.
(2)Outstanding consumer loans and leases exclude loans accounted for under the fair value option.
Commercial Portfolio Credit Risk Management
Commercial credit risk is evaluated and managed with the goal that concentrations of credit exposure continue to be aligned with our risk appetite. We review, measure and manage concentrations of credit exposure by industry, product, geography, customer relationship and loan size. We also review, measure and manage commercial real estate loans by geographic location and property type. In addition, within our non-U.S. portfolio, we evaluate exposures by region and by country. Tables 30, 32 and 35 summarize our concentrations. We also utilize syndications of exposure to third parties, loan sales, hedging and other risk mitigation techniques to manage the size and risk profile of the commercial credit portfolio. For more information on our industry concentrations, see Table 32 and Commercial Portfolio Credit Risk Management – Industry Concentrations on page 36.
For more information on our accounting policies regarding delinquencies, nonperforming status and net charge-offs, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.
Commercial Credit Portfolio
Outstanding commercial loans and leases increased $27.8 billion during the six months ended June 30, 2026 due to growth in U.S. and Non-U.S. commercial, primarily in Global Banking and GWIM. During the six months ended June 30, 2026, commercial credit quality improved, as the reservable criticized utilized exposure decreased $2.7 billion and reservable criticized utilized exposure rate improved to 2.89 percent from 3.37 percent as of December 31, 2025.
Nonperforming commercial loans decreased $67 million during the six months ended June 30, 2026, primarily due to commercial real estate. Commercial net charge-offs decreased $94 million and $77 million to $372 million and $722 million during the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to continued asset quality improvement in the commercial real estate portfolio, partially offset by higher charge-offs in commercial and industrial.
We are closely monitoring emerging trends, including the ongoing conflicts in the Middle East and elevated energy prices, as well as borrower performance in the current environment.
The commercial allowance for loan and lease losses increased $45 million during the six months ended June 30, 2026 to $4.9 billion. For more information, see Allowance for Credit Losses on page 39.
Total commercial utilized credit exposure increased $38.7 billion during the six months ended June 30, 2026 to $847.0 billion primarily driven by higher loans and leases, as well as derivative assets. The utilization rate for loans and leases, standby letters of credit (SBLCs) and financial guarantees, and commercial letters of credit, in the aggregate, was 55 percent at both June 30, 2026 and December 31, 2025.
Table 26 presents commercial credit exposure by type for utilized, unfunded and total binding committed credit exposure. Commercial utilized credit exposure includes SBLCs and financial guarantees and commercial letters of credit that have been issued and for which we are legally bound to advance funds under prescribed conditions during a specified time period, and excludes exposure related to trading account assets. Although funds have not yet been advanced, these exposure types are considered utilized for credit risk management purposes.
Bank of America 32
Table 26 Commercial Credit Exposure by Type
Commercial Utilized (1) Commercial Unfunded (2, 3, 4) Total Commercial Committed
(Dollars in millions) June 30 2026 December 31 2025 June 30 2026 December 31 2025 June 30 2026 December 31 2025
Loans and leases $ 729,862 $ 702,109 $ 616,239 $ 596,676 $ 1,346,101 $ 1,298,785
Derivative assets (5) 45,336 40,881 — — 45,336 40,881
Standby letters of credit and financial guarantees 37,393 35,048 2,187 2,081 39,580 37,129
Debt securities and other investments 20,803 19,155 3,465 3,391 24,268 22,546
Loans held-for-sale 3,978 3,450 8,345 17,151 12,323 20,601
Operating leases 6,283 5,686 — — 6,283 5,686
Commercial letters of credit 839 748 — — 839 748
Other 2,552 1,312 — — 2,552 1,312
Total $ 847,046 $ 808,389 $ 630,236 $ 619,299 $ 1,477,282 $ 1,427,688
(1)Commercial utilized exposure includes loans of $3.2 billion and $3.3 billion accounted for under the fair value option at June 30, 2026 and December 31, 2025.
(2)Commercial unfunded exposure includes commitments accounted for under the fair value option with a notional amount of $3.2 billion and $2.3 billion at June 30, 2026 and December 31, 2025.
(3)Excludes unused business card lines, which are not legally binding.
(4)Includes the notional amount of unfunded legally binding lending commitments, net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.5 billion and $10.6 billion at June 30, 2026 and December 31, 2025.
(5)Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $33.8 billion and $27.2 billion at June 30, 2026 and December 31, 2025. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $84.7 billion and $71.4 billion at June 30, 2026 and December 31, 2025, which consists primarily of other marketable securities.
Nonperforming commercial loans decreased $67 million during the six months ended June 30, 2026, driven by commercial real estate. Table 27 presents our commercial loans and leases portfolio and related credit quality information at June 30, 2026 and December 31, 2025.
Table 27 Commercial Credit Quality
Outstandings Nonperforming Accruing Past Due 90 Days or More
(Dollars in millions) June 30 2026 December 31 2025 June 30 2026 December 31 2025 June 30 2026 December 31 2025
Commercial and industrial:
U.S. commercial $ 456,632 $ 436,242 $ 1,674 $ 1,404 $ 127 $ 302
Non-U.S. commercial 159,894 155,045 312 80 35 9
Total commercial and industrial 616,526 591,287 1,986 1,484 162 311
Commercial real estate 71,097 68,748 1,068 1,596 33 10
Commercial lease financing 15,402 16,241 62 97 25 33
703,025 676,276 3,116 3,177 220 354
U.S. small business commercial (1) 23,637 22,500 45 51 181 204
Commercial loans excluding loans accounted for under the fair value option $ 726,662 $ 698,776 $ 3,161 $ 3,228 $ 401 $ 558
Loans accounted for under the fair value option (2) 3,200 3,333
Total commercial loans and leases $ 729,862 $ 702,109
(1)Includes card-related products.
(2)Commercial loans accounted for under the fair value option includes U.S. commercial of $2.2 billion and $2.1 billion and non-U.S. commercial of $1.0 billion and $1.2 billion at June 30, 2026 and December 31, 2025. For more information on the fair value option, see Note 15 – Fair Value Option to the Consolidated Financial Statements.
Table 28 presents net charge-offs and related ratios for the three and six months ended June 30, 2026 and 2025.
Table 28 Commercial Net Charge-offs and Related Ratios
Net Charge-offs Net Charge-off Ratios (1)
Three Months Ended June 30 Six Months Ended June 30 Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025 2026 2025 2026 2025
Commercial and industrial:
U.S. commercial $ 180 $ 129 $ 312 $ 199 0.16 % 0.13 % 0.14 % 0.10 %
Non-U.S. commercial 53 — 60 7 0.13 — 0.08 0.01
Total commercial and industrial 233 129 372 206 0.15 0.09 0.12 0.08
Commercial real estate 2 202 58 325 0.01 1.24 0.17 1.00
Commercial lease financing — 1 12 1 — 0.02 0.14 0.01
235 332 442 532 0.13 0.21 0.13 0.17
U.S. small business commercial 137 134 280 267 2.35 2.48 2.45 2.52
Total commercial $ 372 $ 466 $ 722 $ 799 0.20 0.29 0.20 0.25
(1)Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases, excluding loans accounted for under the fair value option.
33 Bank of America
Table 29 presents commercial reservable criticized utilized exposure by loan type. Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories as defined by regulatory authorities. Total commercial reservable criticized utilized exposure of $22.1 billion decreased $2.7 billion, or 11 percent, during the six months ended June 30,
2026 primarily driven by commercial real estate and U.S. commercial. At June 30, 2026 and December 31, 2025, 86 percent and 87 percent of commercial reservable criticized utilized exposure was secured.
Table 29 Commercial Reservable Criticized Utilized Exposure (1, 2)
(Dollars in millions) June 30, 2026 December 31, 2025
Commercial and industrial:
U.S. commercial $ 11,625 2.38 % $ 12,239 2.63 %
Non-U.S. commercial 2,594 1.57 2,803 1.74
Total commercial and industrial 14,219 2.18 15,042 2.40
Commercial real estate 6,420 8.87 8,356 11.91
Commercial lease financing 606 3.93 471 2.9
21,245 2.87 23,869 3.35
U.S. small business commercial 829 3.51 879 3.91
Total commercial reservable criticized utilized exposure $ 22,074 2.89 $ 24,748 3.37
(1)Total commercial reservable criticized utilized exposure includes loans and leases of $21.2 billion and $23.9 billion and commercial letters of credit of $888 million and $869 million at June 30, 2026 and December 31, 2025.
(2)Percentages are calculated as commercial reservable criticized utilized exposure divided by total commercial reservable utilized exposure for each exposure category.
Commercial and Industrial
Commercial and industrial loans include U.S. commercial and non-U.S. commercial portfolios.
U.S. Commercial
At June 30, 2026, 56 percent of the U.S. commercial loan portfolio, excluding small business, was managed in Global Banking, 24 percent in Global Markets, 18 percent in GWIM (loans that provide financing for asset purchases, business investments and other liquidity needs for high net worth clients) and the remainder primarily in Consumer Banking. U.S. commercial loans increased $20.4 billion, or five percent, during the six months ended June 30, 2026 primarily driven by Global Banking and GWIM. Reservable criticized utilized exposure decreased $614 million, or five percent, driven by a broad range of industries.
Non-U.S. Commercial
At June 30, 2026, 53 percent of the non-U.S. commercial loan portfolio was managed in Global Banking and 46 percent in Global Markets. Non-U.S. commercial loans increased $4.8 billion, or three percent, during the six months ended June 30, 2026 primarily driven by Global Banking. Reservable criticized utilized exposure decreased $209 million, or seven percent. For more information on the non-U.S. commercial portfolio, see Non-U.S. Portfolio on page 38.
Commercial Real Estate
Commercial real estate primarily includes commercial loans secured by non-owner-occupied real estate and is dependent on the sale or lease of the real estate as the primary source of repayment. Outstanding loans increased $2.3 billion or three
percent during the six months ended June 30, 2026 to $71.1 billion, driven by growth across multiple property types. The commercial real estate portfolio is primarily managed in Global Banking and consists of loans made primarily to public and private developers, and commercial real estate firms. The portfolio remains diversified across property types and geographic regions. California represented the largest state concentration at 20 percent of commercial real estate at both June 30, 2026 and December 31, 2025. Industrial/Warehouse loans represented the largest property type concentration at 18 percent and 19 percent of commercial real estate at June 30, 2026 and December 31, 2025. Office loans decreased $1.0 billion, or eight percent, from December 31, 2025 and represented less than one percent of total loans for the Corporation.
Reservable criticized utilized exposure for commercial real estate decreased $1.9 billion, or 23 percent, during the six months ended June 30, 2026. Reservable criticized exposure for the office property type was $2.8 billion at June 30, 2026, representing a decrease of $664 million, or 19 percent, from December 31, 2025. Approximately $3.2 billion of office loans are scheduled to mature by the end of 2026.
During the three and six months ended June 30, 2026, net charge-offs decreased $200 million and $267 million to $2 million and $58 million compared to the same periods in 2025 driven by office loans. We use a number of proactive risk mitigation initiatives designed to reduce adversely rated exposure in the commercial real estate portfolio, including transfers of deteriorating exposures for management by independent special asset officers and the pursuit of loan restructurings or asset sales to achieve the best results for our customers and the Corporation.
Bank of America 34
Table 30 presents outstanding commercial real estate loans by geographic region, based on the geographic location of the collateral, and by property type.
Table 30 Outstanding Commercial Real Estate Loans
(Dollars in millions) June 30 2026 December 31 2025
By Geographic Region
Northeast $ 16,536 $ 17,044
California 14,313 13,916
Southwest 10,404 8,412
Southeast 6,333 6,958
Florida 5,701 5,167
Midsouth 3,498 2,962
Midwest 2,989 2,862
Illinois 2,798 2,513
Northwest 1,653 1,451
Non-U.S. 5,175 6,021
Other 1,697 1,442
Total outstanding commercial real estate loans $ 71,097 $ 68,748
By Property Type
Non-residential
Industrial / Warehouse $ 12,738 $ 13,031
Multi-family rental 11,807 10,986
Office 11,404 12,447
Shopping centers / Retail 7,966 6,947
Hotel / Motels 4,760 4,629
Multi-use 2,377 2,509
Other 18,808 17,295
Total non-residential 69,860 67,844
Residential 1,237 904
Total outstanding commercial real estate loans $ 71,097 $ 68,748
U.S. Small Business Commercial
The U.S. small business commercial loan portfolio is comprised of small business card loans and small business loans primarily managed in Consumer Banking. Credit card-related products were 51 percent of the U.S. small business commercial portfolio at both June 30, 2026 and December 31, 2025, and represented 95 percent and 96 percent of net charge-offs for the three and six months ended June 30, 2026. Accruing loans that were past due 90 days or more decreased $23 million during the six months ended June 30, 2026.
Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
Table 31 presents the nonperforming commercial loans, leases and foreclosed properties activity during the three and six months ended June 30, 2026 and 2025. Nonperforming loans do not include loans accounted for under the fair value option. During the six months ended June 30, 2026, nonperforming commercial loans and leases decreased $67 million to $3.2 billion. At June 30, 2026, 92 percent of commercial nonperforming loans, leases and foreclosed properties were secured, and 48 percent were contractually current. Commercial nonperforming loans were carried at 80 percent of their unpaid principal balance, as the carrying value of these loans has been reduced to the estimated collateral value less costs to sell.
35 Bank of America
Table 31 Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2)
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
Nonperforming loans and leases, beginning of period $ 3,151 $ 3,470 $ 3,228 $ 3,328
Additions 680 1,105 1,345 1,749
Reductions:
Paydowns (205) (484) (483) (759)
Sales (126) (107) (351) (107)
Returns to performing status (3) (71) (219) (73) (228)
Charge-offs (254) (348) (491) (566)
Transfers to foreclosed properties (14) — (14) —
Total net (reductions) additions to nonperforming loans and leases 10 (53) (67) 89
Total nonperforming loans and leases, June 30 3,161 3,417 3,161 3,417
Foreclosed properties, June 30 22 29 22 29
Nonperforming commercial loans, leases and foreclosed properties, June 30 $ 3,183 $ 3,446 $ 3,183 $ 3,446
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4) 0.43 % 0.51 %
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4) 0.44 0.52
(1)Balances do not include nonperforming loans held-for-sale of $358 million and $481 million at June 30, 2026 and 2025.
(2)Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.
(3)Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, when the loan otherwise becomes well-secured and is in the process of collection, or when a modified loan demonstrates a sustained period of payment performance.
(4)Outstanding commercial loans exclude loans accounted for under the fair value option.
Industry Concentrations
Table 32 presents commercial committed and utilized credit exposure by industry. For information on net notional credit protection purchased to hedge funded and unfunded exposures for which we elected the fair value option, as well as certain other credit exposures, see Commercial Portfolio Credit Risk Management – Risk Mitigation.
Commercial credit exposure is diversified across a broad range of industries. Total commercial committed exposure increased $49.6 billion during the six months ended June 30, 2026 to $1.5 trillion. The increase in commercial committed exposure was primarily concentrated in Capital goods, Asset managers and funds, Individuals and trusts, and Technology hardware and equipment.
For information on industry limits, see Commercial Portfolio Credit Risk Management – Risk Mitigation in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Asset managers and funds, our largest industry concentration with committed exposure of $244.9 billion, increased $10.6 billion, or four percent, during the six months
ended June 30, 2026, which was primarily driven by investment-grade exposures.
Finance companies, our second largest industry concentration, had committed exposure of $129.9 billion at June 30, 2026, relatively unchanged compared to December 31, 2025.
Capital goods, our third largest industry concentration with committed exposure of $119.6 billion, increased $10.9 billion, or 10 percent, during the six months ended June 30, 2026. The increase in committed exposure was driven by increases in Trading companies and distributors, and Machinery and Electrical equipment, partially offset by a decrease in Industrial conglomerates.
Geopolitical tensions, particularly related to the ongoing conflicts in the Middle East, and higher costs associated with persistent inflationary pressures have led to increased uncertainty in the U.S. and global economies and have adversely impacted, and may continue to adversely impact, a number of industries. We continue to monitor these risks.
Bank of America 36
Table 32 Commercial Credit Exposure by Industry (1)
Commercial Utilized Total Commercial Committed (2)
(Dollars in millions) June 30 2026 December 31 2025 June 30 2026 December 31 2025
Asset managers and funds $ 158,972 $ 149,178 $ 244,880 $ 234,323
Finance companies 92,461 94,444 129,861 129,652
Capital goods 56,536 54,293 119,644 108,722
Real estate (3) 70,197 69,939 99,742 99,454
Healthcare equipment and services 39,552 35,417 74,237 71,944
Individuals and trusts 51,250 43,556 66,984 59,713
Materials 30,374 29,094 61,528 61,872
Retailing 26,404 25,648 56,795 55,313
Consumer services 29,019 29,757 56,212 55,291
Food, beverage and tobacco 24,802 25,561 53,498 51,016
Government and public education 34,112 33,874 50,651 50,898
Commercial services and supplies 27,640 24,680 49,700 46,058
Utilities 20,560 18,670 46,788 43,554
Energy 14,425 13,199 40,347 39,122
Transportation 25,826 24,772 38,852 37,707
Media 12,303 11,324 35,445 43,691
Technology hardware and equipment 14,155 11,488 35,373 30,519
Software and services 16,308 15,317 33,089 32,070
Global commercial banks 24,268 22,377 27,074 25,327
Pharmaceuticals and biotechnology 8,397 7,166 26,820 23,325
Insurance 12,432 11,443 25,075 23,762
Vehicle dealers 19,833 19,222 25,049 24,669
Consumer durables and apparel 9,838 9,612 21,888 23,299
Telecommunication services 6,784 6,525 17,141 15,686
Automobiles and components 7,348 8,129 16,291 17,284
Food and staples retailing 5,936 5,313 11,703 10,836
Financial markets infrastructure (clearinghouses) 5,013 6,101 8,368 8,336
Religious and social organizations 2,301 2,290 4,247 4,245
Total commercial credit exposure by industry $ 847,046 $ 808,389 $ 1,477,282 $ 1,427,688
(1)Includes U.S. small business commercial exposure.
(2)Includes the notional amount of unfunded legally binding lending commitments, net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.5 billion and $10.6 billion at June 30, 2026 and December 31, 2025.
(3)Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the primary business activity of the borrowers or counterparties using operating cash flows and primary source of repayment as key factors.
Risk Mitigation
We purchase credit protection to cover the funded portion as well as the unfunded portion of certain credit exposures. To lower the cost of obtaining our desired credit protection levels, we may add credit exposure within an industry, borrower or counterparty group by selling protection.
At June 30, 2026 and December 31, 2025, net notional credit default protection purchased in our credit derivatives portfolio to hedge our funded and unfunded exposures for which we elected the fair value option, as well as certain other credit exposures, was $12.0 billion and $14.5 billion. We recorded net losses of $46 million and $34 million for the three and six months ended June 30, 2026 compared to net losses of $59 million and $56 million for the three and six months ended June 30, 2025. The net losses on these instruments were largely offset by net gains on the related exposures. The Value-at-Risk
(VaR) results for these exposures are included in the fair value option portfolio information in Table 38. For more information, see Trading Risk Management on page 41.
Tables 33 and 34 present the maturity profiles and the credit exposure debt ratings of the net credit default protection portfolio at June 30, 2026 and December 31, 2025.
Table 33 Net Credit Default Protection by Maturity
June 30 2026 December 31 2025
Less than or equal to one year 39 % 37 %
Greater than one year and less than or equal to five years 59 61
Greater than five years 2 2
Total net credit default protection 100 % 100 %
37 Bank of America
Table 34 Net Credit Default Protection by Credit Exposure Debt Rating
Net Notional (1) Percent of Total Net Notional (1) Percent of Total
(Dollars in millions) June 30, 2026 December 31, 2025
Ratings (2, 3)
AAA $ (125) 1.0 % $ (145) 1.0 %
AA (2,015) 16.7 (1,968) 13.5
A (4,968) 41.3 (6,348) 43.7
BBB (3,356) 27.9 (4,639) 31.9
BB (677) 5.6 (697) 4.8
B (280) 2.3 (441) 3.0
CCC and below (28) 0.2 (17) 0.1
NR (4) (591) 5.0 (270) 2.0
Total net credit default protection $ (12,040) 100.0 % $ (14,525) 100.0 %
(1)Represents net credit default protection purchased.
(2)Ratings are refreshed on a quarterly basis.
(3)Ratings of BBB- or higher are considered to meet the definition of investment grade.
(4)NR is comprised of index positions held and any names that have not been rated.
For more information on credit derivatives and counterparty credit risk valuation adjustments, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.
Non-U.S. Portfolio
Our non-U.S. credit and trading portfolios are subject to country risk. We define country risk as the risk of loss from unfavorable economic and political conditions, currency fluctuations, social instability and changes in government policies. A risk management framework is in place to measure, monitor and manage non-U.S. risk and exposures. In addition to the direct risk of doing business in a country, we also are exposed to indirect country risks (e.g., related to the collateral received on secured financing transactions or related to client clearing activities). These indirect exposures are managed in the normal course of business through credit, market and operational risk governance rather than through country risk governance. For more information on our non-U.S. credit and trading portfolios, see Non-U.S. Portfolio in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K. For more information on risks related to our non-U.S. portfolio, see the Geopolitical section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K.
Table 35 presents our 20 largest non-U.S. country exposures at June 30, 2026. These exposures accounted for 87 percent of our total non-U.S. exposure at June 30, 2026 and 88 percent at December 31, 2025. Net country exposure for these 20 countries increased $10.2 billion from December 31, 2025 primarily driven by increases in India, Australia, Hong Kong and Italy.
Table 35 Top 20 Non-U.S. Countries Exposure
(Dollars in millions) Funded Loans and Loan Equivalents Unfunded Loan Commitments Net Counterparty Exposure Securities/ Other Investments Country Exposure at June 30 2026 Hedges and Credit Default Protection Net Country Exposure at June 30 2026 Increase (Decrease) from December 31 2025
United Kingdom $ 35,304 $ 18,429 $ 5,706 $ 7,885 $ 67,324 $ (2,584) $ 64,740 $ 125
Germany 22,730 14,627 2,035 2,778 42,170 (1,709) 40,461 1,353
Australia 26,550 6,917 749 2,487 36,703 (623) 36,080 3,208
Canada 13,838 11,234 2,428 4,306 31,806 (574) 31,232 (531)
France 14,573 10,725 1,582 3,941 30,821 (2,402) 28,419 857
Brazil 10,614 1,262 1,082 5,738 18,696 (115) 18,581 587
Japan 9,800 1,703 3,686 3,180 18,369 (738) 17,631 (1,348)
India 9,615 337 1,222 4,235 15,409 (36) 15,373 3,997
Switzerland 5,695 6,721 899 281 13,596 (475) 13,121 442
Singapore 4,872 670 885 5,190 11,617 (165) 11,452 79
Italy 5,823 3,442 345 1,703 11,313 (392) 10,921 2,063
China 4,104 480 1,223 4,869 10,676 (316) 10,360 (573)
South Korea 5,190 1,279 1,471 2,740 10,680 (551) 10,129 596
Ireland 7,944 1,407 492 319 10,162 (106) 10,056 (564)
Netherlands 4,225 3,632 689 1,131 9,677 (622) 9,055 (3,604)
Mexico 4,819 2,161 550 1,547 9,077 (286) 8,791 (968)
Hong Kong 4,842 570 1,089 1,382 7,883 (93) 7,790 2,110
Spain 2,908 2,546 369 1,124 6,947 (465) 6,482 (282)
Saudi Arabia 3,432 1,302 329 84 5,147 (1,055) 4,092 811
Indonesia 1,609 80 92 2,166 3,947 (46) 3,901 1,815
Total top 20 non-U.S. countries exposure $ 198,487 $ 89,524 $ 26,923 $ 57,086 $ 372,020 $ (13,353) $ 358,667 $ 10,173
Our largest non-U.S. country exposure at June 30, 2026 was the United Kingdom with net exposure of $64.7 billion, relatively unchanged from December 31, 2025. Our second largest non-U.S. country exposure was Germany with net exposure of $40.5 billion at June 30, 2026, which increased $1.4 billion from December 31, 2025 primarily due to increased corporate
debt exposures. We continue to closely monitor the ongoing conflicts in the Middle East and potential impacts on our portfolio and borrowers, including through elevated energy prices, increased market volatility, supply chain disruptions and related macroeconomic effects.
Bank of America 38
Allowance for Credit Losses
The allowance for credit losses decreased $116 million from December 31, 2025 to $14.3 billion at June 30, 2026, which included a $126 million reserve decrease and $10 million reserve increase related to the consumer and commercial portfolios, respectively. Table 36 presents an allocation of the allowance for credit losses by product type at June 30, 2026 and December 31, 2025.
Table 36 Allocation of the Allowance for Credit Losses by Product Type
Amount Percent of Total Percent of Loans and LeasesOutstanding (1) Amount Percent of Total Percent of Loans and LeasesOutstanding (1)
(Dollars in millions) June 30, 2026 December 31, 2025
Allowance for loan and lease losses
Residential mortgage $ 313 2.39 % 0.13 % $ 294 2.23 % 0.12 %
Home equity 128 0.98 0.47 122 0.92 0.46
Credit card 7,060 53.84 6.68 7,197 54.51 6.79
Direct/Indirect consumer 681 5.19 0.58 713 5.40 0.63
Other consumer 64 0.49 n/m 54 0.41 n/m
Total consumer 8,246 62.89 1.69 8,380 63.47 1.73
U.S. commercial (2) 3,035 23.14 0.63 2,967 22.47 0.65
Non-U.S. commercial 868 6.62 0.54 801 6.07 0.52
Commercial real estate 908 6.92 1.28 1,007 7.63 1.46
Commercial lease financing 57 0.43 0.37 48 0.36 0.29
Total commercial 4,868 37.11 0.67 4,823 36.53 0.69
Allowance for loan and lease losses 13,114 100.00 % 1.08 13,203 100.00 % 1.12
Reserve for unfunded lending commitments 1,150 1,177
Allowance for credit losses $ 14,264 $ 14,380
(1)Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option.
(2)Includes allowance for loan and lease losses for U.S. small business commercial loans of $1.4 billion at both June 30, 2026 and December 31, 2025.
n/m = not meaningful
Table 37 presents a rollforward of the allowance for credit losses, including certain loan and allowance ratios for the three and six months ended June 30, 2026 and 2025. For more information on the Corporation’s credit loss accounting policies and activity related to the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.
39 Bank of America
Table 37 Allowance for Credit Losses
Three Months Ended June 30 Six Months Ended June 30
(Dollars in millions) 2026 2025 2026 2025
Allowance for loan and lease losses, beginning of period $ 13,148 $ 13,256 $ 13,203 $ 13,240
Loans and leases charged off
Residential mortgage (9) (9) (18) (12)
Home equity (7) (5) (14) (8)
Credit card (1,150) (1,148) (2,294) (2,326)
Direct/Indirect consumer (88) (81) (193) (186)
Other consumer (76) (70) (143) (136)
Total consumer charge-offs (1,330) (1,313) (2,662) (2,668)
U.S. commercial (1) (349) (298) (645) (542)
Non-U.S. commercial (54) — (61) (8)
Commercial real estate (5) (210) (94) (336)
Commercial lease financing (2) (3) (15) (3)
Total commercial charge-offs (410) (511) (815) (889)
Total loans and leases charged off (1,740) (1,824) (3,477) (3,557)
Recoveries of loans and leases previously charged off
Residential mortgage 8 7 12 10
Home equity 13 15 27 30
Credit card 231 194 451 371
Direct/Indirect consumer 32 34 63 69
Other consumer 6 4 10 10
Total consumer recoveries 290 254 563 490
U.S. commercial (2) 32 35 53 76
Non-U.S. commercial 1 — 1 1
Commercial real estate 3 8 36 11
Commercial lease financing 2 2 3 2
Total commercial recoveries 38 45 93 90
Total recoveries of loans and leases previously charged off 328 299 656 580
Net charge-offs (1,412) (1,525) (2,821) (2,977)
Provision for loan and lease losses 1,377 1,560 2,730 3,026
Other 1 — 2 2
Allowance for loan and lease losses, June 30 13,114 13,291 13,114 13,291
Reserve for unfunded lending commitments, beginning of period 1,161 1,110 1,177 1,096
Provision for unfunded lending commitments (11) 32 (27) 46
Other — 1 — 1
Reserve for unfunded lending commitments, June 30 1,150 1,143 1,150 1,143
Allowance for credit losses, June 30 $ 14,264 $ 14,434 $ 14,264 $ 14,434
Loan and allowance ratios (3):
Loans and leases outstanding at June 30 $ 1,214,260 $ 1,140,193 $ 1,214,260 $ 1,140,193
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at June 30 1.08 % 1.17 % 1.08 % 1.17 %
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at June 30 1.69 1.82 1.69 1.82
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at June 30 0.67 0.71 0.67 0.71
Average loans and leases outstanding $ 1,212,888 $ 1,120,764 $ 1,199,481 $ 1,105,318
Annualized net charge-offs as a percentage of average loans and leases outstanding 0.47 % 0.55 % 0.47 % 0.54 %
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at June 30 228 222 228 222
Ratio of the allowance for loan and lease losses at June 30 to annualized net charge-offs 2.32 2.17 2.31 2.21
Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (4) $ 8,387 $ 8,714 $ 8,387 $ 8,714
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (4) 82 % 77 % 82 % 77 %
(1)Includes U.S. small business commercial charge-offs of $150 million and $306 million for the three and six months ended June 30, 2026 compared to $149 million and $296 million for the same periods in 2025.
(2)Includes U.S. small business commercial recoveries of $13 million and $26 million for the three and six months ended June 30, 2026 compared to $15 million and $29 million for the same periods in 2025.
(3)Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option.
(4)Primarily includes amounts related to credit card and unsecured consumer lending portfolios in Consumer Banking.
Bank of America 40
Market Risk Management
For more information on our market risk management process, see Market Risk Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K. For more information on market risks, see the Market section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K.
Market risk is the risk that changes in market conditions may adversely impact the value of assets or liabilities, or otherwise negatively impact earnings. This risk is inherent in the financial instruments associated with our operations, primarily within our Global Markets segment. We are also exposed to these risks in other areas of the Corporation (e.g., our ALM activities). In the event of market stress, these risks could have a material impact on our results.
Trading Risk Management
To evaluate risks in our trading activities, we focus on the actual and potential volatility of revenues generated by individual positions as well as portfolios of positions. VaR is a common statistic used to measure market risk. Our primary VaR statistic is equivalent to a 99 percent confidence level, which means that for a VaR with a one-day holding period, there should not be
losses in excess of VaR, on average, 99 out of 100 trading days.
Table 38 presents the total market-based portfolio VaR, which is the combination of the total trading positions portfolio and the fair value option portfolio. The VaR amounts for all periods presented in Table 38 and Table 39 include the financial instruments used in the Corporation’s market risk management of its trading portfolios. For more information on the market risk VaR for trading activities, see Trading Risk Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
The total market-based portfolio VaR results in Table 38 include market risk to which we are exposed from all business segments’ trading activities, which exclude credit valuation adjustment (CVA), DVA and the related hedges of these items. The majority of this portfolio is within the Global Markets segment.
Table 38 presents period-end, average, high and low daily trading VaR for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, as well as average daily trading VaR for the six months ended June 30, 2026 and 2025 using a 99 percent confidence level.
Table 38 Market Risk VaR for Trading Activities
Three Months Ended Six Months Ended June 30
June 30, 2026 March 31, 2026 June 30, 2025
(Dollars in millions) Period End Average High (1) Low (1) Period End Average High (1) Low (1) Period End Average High (1) Low (1) 2026 Average 2025 Average
Foreign exchange $ 13 $ 16 $ 32 $ 8 $ 8 $ 14 $ 22 $ 8 $ 25 $ 17 $ 25 $ 11 $ 15 $ 17
Interest rate 36 35 50 27 30 30 49 19 51 55 90 40 33 59
Credit 49 39 50 31 36 38 56 29 49 51 63 42 39 53
Mortgage 20 21 26 18 26 28 31 22 29 36 43 29 24 35
Equity 36 33 50 24 27 30 66 20 22 22 63 13 32 23
Commodities 13 13 17 8 11 15 22 9 8 9 12 7 14 10
Portfolio diversification (122) (108) n/a n/a (92) (108) n/a n/a (108) (106) n/a n/a (109) (110)
Total trading positions portfolio VaR 45 49 66 38 46 47 74 38 76 84 102 65 48 87
Fair value option loans 18 22 33 16 21 17 23 14 15 21 27 15 19 24
Fair value option hedges 14 14 24 10 11 9 13 6 12 15 18 12 11 17
Fair value option portfolio diversification (22) (25) n/a n/a (19) (13) n/a n/a (18) (24) n/a n/a (18) (27)
Total fair value option portfolio 10 11 13 9 13 13 14 12 9 12 16 8 12 14
Portfolio diversification (7) (8) n/a n/a (10) (8) n/a n/a (6) (7) n/a n/a (8) (7)
Total market-based portfolio $ 48 $ 52 69 43 $ 49 $ 52 77 43 $ 79 $ 89 111 72 $ 52 $ 94
(1)The high and low for each portfolio may have occurred on different trading days than the high and low for the components. Therefore, the amount of portfolio diversification, which is the difference between the total portfolio and the sum of the individual components, is not relevant.
n/a = not applicable
41 Bank of America
The following graph presents the trading positions portfolio VaR for the previous five quarters, corresponding to the data in Table 38.
Additional VaR statistics produced within our single VaR model are provided in Table 39 at the same level of detail as in Table 38. Evaluating VaR with additional statistics allows for an increased understanding of the risks in the portfolio, as the historical market data used in the VaR calculation does not necessarily follow a predefined statistical distribution. Table 39 presents average trading VaR statistics at 99 percent and 95 percent confidence levels for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025.
Table 39 Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics
Three Months Ended
June 30, 2026 March 31, 2026 June 30, 2025
(Dollars in millions) 99 percent 95 percent 99 percent 95 percent 99 percent 95 percent
Foreign exchange $ 16 $ 8 $ 14 $ 7 $ 17 $ 10
Interest rate 35 18 30 17 55 26
Credit 39 16 38 14 51 24
Mortgage 21 12 28 14 36 18
Equity 33 15 30 14 22 11
Commodities 13 5 15 8 9 6
Portfolio diversification (108) (51) (108) (51) (106) (60)
Total trading positions portfolio VaR 49 23 47 23 84 35
Fair value option loans 22 13 17 10 21 12
Fair value option hedges 14 9 9 5 15 8
Fair value option portfolio diversification (25) (16) (13) (8) (24) (14)
Total fair value option portfolio 11 6 13 7 12 6
Portfolio diversification (8) (5) (8) (5) (7) (3)
Total market-based portfolio $ 52 $ 24 $ 52 $ 25 $ 89 $ 38
Backtesting
The accuracy of the VaR methodology is evaluated by backtesting, which compares the daily VaR results, utilizing a one-day holding period, against a comparable subset of trading revenue. For more information on our backtesting process, see Trading Risk Management – Backtesting in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
During the three months ended June 30, 2026, there was one day where this subset of trading revenue had losses that exceeded our total covered portfolio VaR, utilizing a one-day holding period. During the six months ended June 30, 2026, there were three days with losses that exceeded our total covered portfolio VaR.
Bank of America 42
Total Trading-related Revenue
Total trading-related revenue, excluding brokerage fees, and CVA, DVA and funding valuation adjustment gains (losses), represents the total amount earned from trading positions, including net interest income associated with Global Markets trading activities, which are taken in a diverse range of financial instruments and markets. For more information, see Trading Risk Management – Total Trading-related Revenue in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
The following histogram is a graphic depiction of trading volatility and illustrates the daily level of trading-related revenue for the three months ended June 30, 2026 compared to the three months ended March 31, 2026. During the three months ended June 30, 2026, positive trading-related revenue was recorded for 100 percent of the trading days, of which 98 percent were daily trading gains of over $25 million. This compares to the three months ended March 31, 2026 where positive trading-related revenue was recorded for 100 percent of the trading days, of which 97 percent were daily trading gains of over $25 million.
Trading Portfolio Stress Testing
Because the very nature of a VaR model suggests results can exceed our estimates and it is dependent on a limited historical window, we also stress test our portfolio using scenario analysis. This analysis estimates the change in the value of our trading portfolio that may result from abnormal market movements. For more information, see Trading Risk Management – Trading Portfolio Stress Testing in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Interest Rate Risk Management for the Banking Book
The following discussion presents net interest income for banking book activities. For more information, see Interest Rate Risk Management for the Banking Book in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Table 40 presents the spot and 12-month forward rates used in developing the forward curve used in our baseline forecasts at June 30, 2026 and December 31, 2025.
Table 40 Forward Rates
Federal Funds SOFR 10-Year SOFR
June 30, 2026
Spot rates 3.75 % 3.68 % 4.05 %
12-month forward rates 4.25 4.06 4.03
December 31, 2025
Spot rates 3.75 % 3.87 % 3.80 %
12-month forward rates 3.25 3.11 3.89
Table 41 shows the potential pretax impact to forecasted net interest income over the next 12 months from June 30, 2026 and December 31, 2025 resulting from instantaneous parallel and non-parallel shocks to the market-based forward curve. Periodically, we evaluate the scenarios presented so that they are meaningful in the context of the current rate environment. Amounts presented reflect dynamic deposit sensitivities, which incorporate behavioral customer deposit balance changes that could occur under various scenarios. For more information, see Interest Rate Risk Management for the Banking Book in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
43 Bank of America
Table 41 Estimated Banking Book Net Interest Income Sensitivity to Curve Changes
Short Rate (bps) Long Rate (bps)
(Dollars in billions) June 30 2026 December 31 2025
Parallel Shifts
+100 bps instantaneous shift +100 +100 $ 1.0 $ 0.7
-100 bps instantaneous shift -100 -100 (2.2) (2.0)
+200 bps instantaneous shift +200 +200 1.9 0.8
-200 bps instantaneous shift -200 -200 (5.5) (4.9)
Flatteners
Short-end instantaneous change +100 — 0.8 0.5
Long-end instantaneous change — -100 (0.3) (0.3)
Steepeners
Short-end instantaneous change -100 — (1.8) (1.7)
Long-end instantaneous change — +100 0.2 0.3
We continue to be asset sensitive to a parallel move in interest rates, with the majority of that impact coming from the short end of the yield curve. Additionally, higher interest rates negatively impact the fair value of our debt securities classified as available for sale and adversely affect accumulated OCI, and thus capital levels under the Basel 3 capital rules. Under instantaneous upward parallel shifts, the near-term adverse impact to Basel 3 capital would be reduced over time by offsetting positive impacts to net interest income generated from banking book activities. For more information on Basel 3, see Capital Management – Regulatory Capital on page 19.
As part of our ALM activities, we use securities, certain residential mortgages, and interest rate and foreign exchange derivatives in managing interest rate sensitivity. The sensitivity analysis in Table 41 assumes that we take no action in response to these rate shocks and does not assume any change in other macroeconomic variables normally correlated with changes in interest rates. In higher rate scenarios, the analysis assumes that a portion of low-cost or noninterest-bearing deposits is replaced with higher yielding deposits or market-based funding. Conversely, in lower rate scenarios, the analysis assumes that a portion of higher yielding deposits or market-based funding is replaced with low-cost or noninterest-bearing deposits.
For larger interest rate shift scenarios, the interest rate sensitivity may behave in a non-linear manner as there are numerous estimates and assumptions, which require a high degree of judgment and are often interrelated, that could impact the outcome. Pertaining to the mortgage-backed securities and residential mortgage portfolio, if long-end interest rates were to significantly decrease over the next twelve months, for example over 200 bps, there would generally be an increase in customer prepayment behaviors with an incremental reduction to net interest income, noting that the extent of changes in customer prepayment activity can be impacted by multiple factors and is not necessarily limited to long-end interest rates. Conversely, if long-end interest rates were to significantly increase over the next twelve months, for example, over 200 bps, customer prepayments would likely modestly decrease and result in an incremental increase to net interest income. In addition, deposit pricing is rate sensitive in nature. This sensitivity is assumed to have non-linear impacts to larger short-end rate movements. In decreasing interest rate scenarios, and particularly where interest rates have decreased to small amounts, the ability to further reduce rates paid is reduced as customer rates near zero. In higher short-end rate scenarios, deposit pricing will likely increase at a faster rate, leading to incremental interest expense and reducing asset sensitivity. While the impact related to the above assumptions used in the asset sensitivity analysis can provide directional analysis on how net interest income will
be impacted in changing environments, the ultimate impact is dependent upon the interrelationship of the assumptions and factors, which vary in different macroeconomic scenarios.
Economic Value of Equity
In addition to interest rate sensitivity described above, the Corporation’s management of its interest rate exposures in the banking book also considers a long-term view of interest rate sensitivity through the measurement of Economic Value of Equity (EVE). EVE captures changes in the net present value of banking book assets and liabilities under various interest rate scenarios and its impact to Tier 1 capital. Similar to net interest income, the Corporation establishes limits for EVE. EVE is largely driven by the Corporation’s longer duration fixed-rate products, such as investment securities, residential mortgages and deposits. For assets or liabilities that have no stated maturity, such as deposits, the Corporation estimates the duration for measurement purposes.
Interest Rate and Foreign Exchange Derivative Contracts
We use interest rate and foreign exchange derivative contracts in our ALM activities to manage our interest rate and foreign exchange risks. Specifically, we use those derivatives to manage both the variability in cash flows and changes in fair value of various assets and liabilities arising from those risks. Our interest rate derivative contracts are generally non-leveraged swaps tied to various benchmark interest rates and foreign exchange basis swaps, options, futures and forwards, and our foreign exchange contracts include cross-currency interest rate swaps, foreign currency futures contracts, foreign currency forward contracts and options.
The derivatives used in our ALM activities can be split into two broad categories: designated accounting hedges and other risk management derivatives. Designated accounting hedges are primarily used to manage our exposure to interest rates as described in the Interest Rate Risk Management for the Banking Book section and are included in the sensitivities presented in Table 41. The Corporation also uses foreign currency derivatives in accounting hedges to manage substantially all of the foreign exchange risk of our foreign operations. By hedging the foreign exchange risk of our foreign operations, the Corporation's market risk exposure in this area is not significant.
Risk management derivatives are predominantly used to hedge foreign exchange risks related to various foreign currency-denominated assets and liabilities and eliminate substantially all foreign currency exposures in the cash flows of the Corporation’s non-trading foreign currency-denominated financial instruments. These foreign exchange derivatives are sensitive to other market risk exposures such as cross-currency basis
Bank of America 44
spreads and interest rate risk. However, as these features are not a significant component of these foreign exchange derivatives, the market risk related to this exposure is not significant. For more information on the accounting for derivatives, see Note 3 – Derivatives to the Consolidated Financial Statements.
Mortgage Banking Risk Management
We originate, fund and service mortgage loans, which subject us to credit, liquidity and interest rate risks, among others. We determine whether loans will be held for investment or held for sale at the time of commitment and manage credit and liquidity risks by selling or securitizing a portion of the loans we originate.
Changes in interest rates impact the value of interest rate lock commitments (IRLCs) and the related residential first mortgage loans held-for-sale (LHFS), as well as the value of the MSRs. Because the interest rate risks of these hedged items offset, we combine them into one overall hedged item with one combined economic hedge portfolio consisting of derivative contracts and securities. For more information on IRLCs and the related residential mortgage LHFS, see Mortgage Banking Risk Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.
Critical Accounting Estimates
Our significant accounting principles are essential in understanding the MD&A. Many of our significant accounting principles require complex judgments to estimate the values of assets and liabilities. We have procedures and processes in place to facilitate making these judgments. For more information, see Critical Accounting Estimates in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K and Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.
Goodwill and Intangible Assets
The nature of and accounting for goodwill and intangible assets are discussed in Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K and Note 7 – Goodwill and Intangible Assets to the Consolidated Financial Statements. As of June 30, 2026, goodwill recorded on our consolidated balance sheet was as follows.
Table 42 Goodwill by Reporting Segment
(Dollars in millions) June 30 2026 December 31 2025
Consumer Banking $ 30,137 $ 30,137
Global Wealth and Investment Management 9,677 9,677
Global Banking 24,026 24,026
Global Markets 5,181 5,181
Total $ 69,021 $ 69,021
We completed our annual goodwill impairment test as of June 30, 2026 using a qualitative assessment. In performing the assessment, we considered various factors, including macroeconomic conditions and outlook, industry and market considerations, financial performance and other relevant reporting unit-specific factors. Based on this evaluation, we concluded that it was not more likely than not that the fair value of any reporting unit was less than its carrying value. Accordingly, no reporting unit was considered at risk of impairment, and no further testing was required.
Current Accounting Developments
Accounting Standard Issued but Not Yet Adopted
Accounting for Internal‑Use Software Costs
The Financial Accounting Standards Board issued updated guidance on the accounting for internal‑use software, providing targeted improvements to the capitalization of costs incurred in the internal development of software. The amendments update existing guidance by eliminating the consideration of software project development stages and enhancing the criteria for when capitalization begins, including establishing a “probable to complete” threshold. The Accounting Standards Update is effective for annual and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Corporation is currently evaluating the impact of and its approach to adopting this guidance; however, adoption is not expected to have a material impact on its Consolidated Financial Statements.
45 Bank of America
Non-GAAP Reconciliations
Table 43 provides reconciliations of certain non-GAAP financial measures to the most directly comparable GAAP financial measures.
Table 43 Average and Period-end Supplemental Financial Data and Reconciliations to GAAP Financial Measures (1)
Six Months Ended June 30
2026 Quarters 2025 Quarters
(Dollars in millions) Second First Fourth Third Second 2026 2025
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity and average tangible common shareholders’ equity
Shareholders’ equity $ 300,984 $ 302,501 $ 303,873 $ 300,381 $ 295,329 $ 301,738 $ 294,761
Goodwill (69,021) (69,021) (69,021) (69,021) (69,021) (69,021) (69,021)
Intangible assets (excluding MSRs) (1,815) (1,834) (1,853) (1,873) (1,893) (1,824) (1,902)
Related deferred tax liabilities 820 825 827 839 846 823 848
Tangible shareholders’ equity $ 230,968 $ 232,471 $ 233,826 $ 230,326 $ 225,261 $ 231,716 $ 224,686
Preferred stock (24,996) (25,748) (25,992) (25,232) (22,573) (25,370) (22,440)
Tangible common shareholders’ equity $ 205,972 $ 206,723 $ 207,834 $ 205,094 $ 202,688 $ 206,346 $ 202,246
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity and period- end tangible common shareholders’ equity
Shareholders’ equity $ 301,094 $ 300,668 $ 303,243 $ 302,437 $ 298,021
Goodwill (69,021) (69,021) (69,021) (69,021) (69,021)
Intangible assets (excluding MSRs) (1,803) (1,821) (1,841) (1,860) (1,880)
Related deferred tax liabilities 816 821 825 828 842
Tangible shareholders’ equity $ 231,086 $ 230,647 $ 233,206 $ 232,384 $ 227,962
Preferred stock (24,996) (24,996) (25,992) (25,992) (23,495)
Tangible common shareholders’ equity $ 206,090 $ 205,651 $ 207,214 $ 206,392 $ 204,467
Reconciliation of period-end assets to period-end tangible assets
Assets $ 3,499,191 $ 3,496,186 $ 3,411,738 $ 3,403,149 $ 3,440,798
Goodwill (69,021) (69,021) (69,021) (69,021) (69,021)
Intangible assets (excluding MSRs) (1,803) (1,821) (1,841) (1,860) (1,880)
Related deferred tax liabilities 816 821 825 828 842
Tangible assets $ 3,429,183 $ 3,426,165 $ 3,341,701 $ 3,333,096 $ 3,370,739
(1)For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 6.