BANK OF AMERICA CORP /DE/ (BAC)

CIK: 0000070858. SIC: 6021 National Commercial Banks. Latest 10-K as of: 2026-02-25.
SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6021 National Commercial Banks
SEC company page: https://www.sec.gov/edgar/browse/?CIK=70858. Latest filing source: 0000070858-26-000157.
Selected Fundamentals

Metric	Value	Unit	FY	Filed
Revenue	113,097,000,000	USD	2025	2026-02-25
Net income	30,509,000,000	USD	2025	2026-02-25
Assets	3,411,738,000,000	USD	2025	2026-02-25
Macro Cross-References

CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
UNRATE - Unemployment Rate
FEDFUNDS - Federal Funds Effective Rate
CES0500000003 - Average Hourly Earnings of All Employees, Total Private
DFEDTARU - Federal Funds Target Range - Upper Limit
DFEDTARL - Federal Funds Target Range - Lower Limit
DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
PCEPI - Personal Consumption Expenditures: Chain-type Price Index
PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
PPIACO - Producer Price Index by Commodity: All Commodities
T10YIE - 10-Year Breakeven Inflation Rate
U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
PAYEMS - All Employees, Total Nonfarm
CIVPART - Labor Force Participation Rate
EMRATIO - Employment-Population Ratio
UNEMPLOY - Unemployed
CE16OV - Employment Level
ICSA - Initial Claims
JTSJOL - Job Openings: Total Nonfarm
JTSQUR - Quits: Total Nonfarm
GDPC1 - Real Gross Domestic Product
A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
INDPRO - Industrial Production: Total Index
TCU - Capacity Utilization: Total Index
HOUST - New Privately-Owned Housing Units Started: Total Units
PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
RSAFS - Advance Retail Sales: Retail Trade
PCE - Personal Consumption Expenditures
DSPIC96 - Real Disposable Personal Income
PSAVERT - Personal Saving Rate
M2SL - M2
BOPGSTB - U.S. International Trade in Goods and Services: Balance
Latest 10-K MD&A

Extracted from a later financial-section MD&A body after the formal Item 7 span was a short reference. Confidence: high. Filing date: 2026-02-25. Report date: 2025-12-31.
Management's Discussion and Analysis of Financial Condition and Results of Operations

Table of Contents

Page

Executive Summary

27

Recent Developments

27

Financial Highlights

27

Balance Sheet Overview

29

Supplemental Financial Data

31

Business Segment Operations

36

Consumer Banking

37

Global Wealth & Investment Management

39

Global Banking

41

Global Markets

43

All Other

44

Managing Risk

45

Strategic Risk Management

48

Capital Management

48

Liquidity Risk

54

Credit Risk Management

59

Consumer Portfolio Credit Risk Management

59

Commercial Portfolio Credit Risk Management

64

Non-U.S. Portfolio

70

Loan and Lease Contractual Maturities

72

Allowance for Credit Losses

73

Market Risk Management

75

Trading Risk Management

76

Interest Rate Risk Management for the Banking Book

79

Mortgage Banking Risk Management

81

Compliance and Operational Risk Management

81

Reputational Risk Management

83

Critical Accounting Estimates

83

Non-GAAP Reconciliations

86

25 Bank of America

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 lines of business 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 this 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 ongoing 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 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, 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, the Volcker Rule, 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 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; 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 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 consequences), civil unrest, terrorism or other geopolitical events; and other matters.

Bank of America 26

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 the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) are incorporated by reference into the MD&A. Certain prior-year amounts have been reclassified to conform to current-year presentation. 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 December 31, 2025, the Corporation had $3.4 trillion in assets and a headcount of approximately 213,000 employees. As of December 31, 2025, 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 approximately 69 million consumer and small business clients with approximately 3,600 retail financial centers, approximately 15,000 automated teller machines (ATMs), and leading digital banking platforms (www.bankofamerica.com) with approximately 49 million active users, including approximately 41 million active mobile users. We offer industry-leading support to approximately four million small business households. Our GWIM businesses, with client balances of $4.8 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.

Recent Developments

Capital Management

On February 3, 2026, the Board of Directors (Board) declared a quarterly common stock dividend of $0.28 per share, payable on March 27, 2026 to shareholders of record as of March 6, 2026.

For more information on our capital resources and regulatory developments, see Capital Management beginning on page 48.

Financial Highlights

Effective in the fourth quarter of 2025, the Corporation elected to change accounting methods for its tax-related affordable housing, eligible wind renewable energy and solar renewable energy equity investments, which were applied on a retrospective basis. The Corporation determined that the new accounting methods are preferable, as they better align the financial statement presentation with the economic impact of these equity investments. The primary impact of the accounting changes is a reclassification between income statement line items that nets income tax credits and benefits against the investment expense. Certain prior-period information presented herein has been revised to reflect the accounting method changes. For more information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements and Exhibit 18 to this Annual Report on Form 10-K.

Table 1

Summary Income Statement and Selected Financial Data

(Dollars in millions, except per share information)

2025

2024

Income statement

Net interest income

$

60,096 

$

56,060 

Noninterest income

53,001 

49,796 

Total revenue, net of interest expense

113,097 

105,856 

Provision for credit losses

5,675 

5,821 

Noninterest expense

69,727 

66,812 

Income before income taxes

37,695 

33,223 

Income tax expense

7,186 

6,250 

Net income

30,509 

26,973 

Preferred stock dividends and other

1,454 

1,629 

Net income applicable to common shareholders

$

29,055 

$

25,344 

Per common share information

Earnings

$

3.86 

$

3.23 

Diluted earnings

3.81 

3.19 

Dividends paid

1.08 

1.00 

Performance ratios

Return on average assets (1)

0.89 

%

0.82 

%

Return on average common shareholders’ equity (1)

10.59 

9.53 

Return on average tangible common shareholders’ equity (2)

14.22 

12.94 

Efficiency ratio (1)

61.65 

63.12 

Balance sheet at year end

Total loans and leases

$

1,185,700 

$

1,095,835 

Total assets

3,411,738 

3,261,299 

Total deposits

2,018,729 

1,965,467 

Total liabilities

3,108,495 

2,967,336 

Total common shareholders’ equity

277,251 

270,804 

Total shareholders’ equity

303,243 

293,963 

(1)For definitions, see Key Metrics on page 172.

(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 86.

Net income was $30.5 billion, or $3.81 per diluted share, in 2025 compared to $27.0 billion, or $3.19 per diluted share, in 2024. The increase in net income was due to higher net interest income and noninterest income, and lower provision for credit losses, partially offset by higher noninterest expense.

For discussion and analysis of our consolidated and business segment results of operations for 2024 compared to 2023, see the Financial Highlights and Business Segment Operations sections in the MD&A of the Corporation’s 2024 Annual Report on Form 10-K.

27 Bank of America

Net Interest Income

Net interest income increased $4.0 billion to $60.1 billion in 2025 compared to 2024. Net interest yield on a fully taxable-equivalent (FTE) basis increased six basis points (bps) to 2.01 percent for 2025. The increases were primarily driven by higher net interest income related to Global Markets activity, fixed-asset repricing, and deposit and loan growth, partially offset by the impact of lower interest rates and one less day of interest accrual. For more information on net interest yield and FTE basis, see Supplemental Financial Data on page 31, and for more information on interest rate risk management, see Interest Rate Risk Management for the Banking Book on page 79.

Noninterest Income

Table 2

Noninterest Income

(Dollars in millions)

2025

2024

Fees and commissions:

Card income

$

6,359 

$

6,284 

Service charges

6,457 

6,055 

Investment and brokerage services

19,956 

17,766 

Investment banking fees

6,630 

6,186 

Total fees and commissions

39,402 

36,291 

Market making and similar activities

12,014 

12,967 

Other income (loss)

1,585 

538 

Total noninterest income

$

53,001 

$

49,796 

Noninterest income increased $3.2 billion to $53.0 billion in 2025 compared to 2024. The following highlights the significant changes.

●    Service charges increased $402 million primarily due to higher treasury service charges.

●    Investment and brokerage services increased $2.2 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 client activity.

●    Investment banking fees increased $444 million driven by higher debt issuance and advisory fees, partially offset by lower equity issuance fees.

●    Market making and similar activities decreased $953 million primarily driven by lower trading revenue from credit products in Fixed Income, Currencies and Commodities (FICC) and lower income from derivatives used in foreign currency risk management activities.

●    Other income increased $1.0 billion primarily due to gains on leveraged finance positions.

Provision for Credit Losses

The provision for credit losses decreased $146 million to $5.7 billion for 2025 compared to 2024. For more information on the provision for credit losses, see Allowance for Credit Losses on page 73.

Noninterest Expense

Table 3

Noninterest Expense

(Dollars in millions)

2025

2024

Compensation and benefits

$

42,346 

$

40,182 

Information processing and communications

7,453 

7,231 

Occupancy and equipment

7,448 

7,289 

Product delivery and transaction related

3,924 

3,494 

Professional fees

2,580 

2,669 

Marketing

2,204 

1,956 

Other general operating

3,772 

3,991 

Total noninterest expense

$

69,727 

$

66,812 

Noninterest expense increased $2.9 billion to $69.7 billion in 2025 compared to 2024. The increase was primarily driven by continued investments in the business, including people, technology and marketing, as well as higher revenue-related expenses, partially offset by a reduction in the Corporation’s accrual in 2025 for the Federal Deposit Insurance Corporation (FDIC) special assessment compared to an increase in the accrual in 2024.

Income Tax Expense

Table 4

Income Tax Expense

(Dollars in millions)

2025

2024

Income before income taxes

$

37,695 

$

33,223 

Income tax expense

7,186 

6,250 

Effective tax rate

19.1 

%

18.8 

%

The effective tax rates (ETR) for 2025 and 2024 were driven by pretax income and changes in the mix of income and expenses subject to U.S. federal and state and local taxes, as well as our recurring tax preference benefits, which mainly consisted of tax credits from investments in affordable housing and renewable energy. For more information, see Note 19 – Income Taxes to the Consolidated Financial Statements.

Bank of America 28

Balance Sheet Overview

Table 5

Selected Balance Sheet Data

December 31

(Dollars in millions)

2025

2024

$ Change

% Change

Assets

Cash and cash equivalents

$

231,845 

$

290,114 

$

(58,269)

(20)

%

Federal funds sold and securities borrowed or purchased under agreements to resell

316,578 

274,709 

41,869 

15 

Trading account assets

366,954 

314,460 

52,494 

17 

Debt securities

925,635 

917,284 

8,351 

1 

Loans and leases

1,185,700 

1,095,835 

89,865 

8 

Allowance for loan and lease losses

(13,203)

(13,240)

37 

— 

All other assets

398,229 

382,137 

16,092 

4 

Total assets

$

3,411,738 

$

3,261,299 

$

150,439 

5 

Liabilities

Deposits

$

2,018,729 

$

1,965,467 

$

53,262 

3 

Federal funds purchased and securities loaned or sold under agreements to repurchase

344,716 

331,758 

12,958 

4 

Trading account liabilities

105,996 

92,543 

13,453 

15 

Short-term borrowings

48,088 

43,391 

4,697 

11 

Long-term debt

317,816 

283,279 

34,537 

12 

All other liabilities

273,150 

250,898 

22,252 

9 

Total liabilities

3,108,495 

2,967,336 

141,159 

5 

Shareholders’ equity

303,243 

293,963 

9,280 

3 

Total liabilities and shareholders’ equity

$

3,411,738 

$

3,261,299 

$

150,439 

5 

Assets

At December 31, 2025, total assets were approximately $3.4 trillion, up $150.4 billion from December 31, 2024. The increase in assets was primarily due to higher loans and leases, trading account assets, and federal funds sold and securities borrowed or purchased under agreements to resell, partially offset by lower cash and cash equivalents.

Cash and Cash Equivalents

Cash and cash equivalents decreased $58.3 billion primarily driven by loan growth and activity within Global Markets.

Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell

Federal funds transactions involve lending reserve balances on a short-term basis. Securities borrowed or purchased under agreements to resell are collateralized lending transactions utilized to accommodate customer transactions, earn interest rate spreads, and obtain securities for settlement and for collateral. Federal funds sold and securities borrowed or purchased under agreements to resell increased $41.9 billion primarily due to activity within Global Markets.

Trading Account Assets

Trading account assets consist primarily of long positions in equity and fixed-income securities including U.S. government and agency securities, corporate securities and non-U.S. sovereign debt. Trading account assets increased $52.5 billion primarily due to activity within Global Markets.

Debt Securities

Debt securities primarily include U.S. Treasury and agency securities, mortgage-backed securities (MBS), principally agency MBS, non-U.S. bonds, corporate bonds and municipal debt. We reinvest cash in the debt securities portfolio primarily to manage interest rate and liquidity risk. Debt securities increased $8.4 billion primarily due to investment of excess cash from higher deposits and long-term debt. For more information on debt securities, see Note 4 – Securities to the Consolidated Financial Statements.

Loans and Leases

Loans and leases increased $89.9 billion primarily driven by growth in commercial loans and a residential mortgage loan portfolio acquisition in the first quarter of 2025. For more information on the loan portfolio, see Credit Risk Management on page 59.

29 Bank of America

Allowance for Loan and Lease Losses

The allowance for loan and lease losses decreased $37 million primarily due to reserve releases in credit card and commercial real estate as asset quality improved. For more information, see Allowance for Credit Losses on page 73.

All Other Assets

All other assets increased $16.1 billion primarily driven by activity within Global Markets.

Liabilities

At December 31, 2025, total liabilities were approximately $3.1 trillion, up $141.2 billion from December 31, 2024, primarily due to higher deposits, long-term debt, all other liabilities, trading account liabilities and federal funds purchased and securities loaned or sold under agreements to repurchase.

Deposits

Deposits increased $53.3 billion primarily driven by growth in commercial client balances.

Federal Funds Purchased and Securities Loaned or Sold Under Agreements to Repurchase

Federal funds transactions involve borrowing reserve balances on a short-term basis. Securities loaned or sold under agreements to repurchase are collateralized borrowing transactions utilized to accommodate customer transactions, earn interest rate spreads and finance assets on the balance sheet. Federal funds purchased and securities loaned or sold under agreements to repurchase increased $13.0 billion primarily driven by activity within Global Markets.

Trading Account Liabilities

Trading account liabilities consist primarily of short positions in equity and fixed-income securities including U.S. Treasury and agency securities, non-U.S. sovereign debt and corporate securities. Trading account liabilities increased $13.5 billion primarily due to activity within Global Markets.

Short-term Borrowings

Short-term borrowings provide an additional funding source and primarily consist of Federal Home Loan Bank (FHLB) short-term borrowings, commercial paper, notes payable and various other borrowings that generally have maturities of one year or less. Short-term borrowings increased $4.7 billion primarily due to higher unsecured borrowings to manage liquidity needs. For more information on short-term borrowings, see Note 10 – Securities Financing Agreements, Short-term Borrowings, Collateral and Restricted Cash to the Consolidated Financial Statements.

Long-term Debt

Long-term debt increased $34.5 billion primarily due to debt issuances and valuation adjustments, partially offset by maturities and redemptions. For more information on long-term debt, see Note 11 – Long-term Debt to the Consolidated Financial Statements.

All Other Liabilities

All other liabilities increased $22.3 billion primarily driven by activity within Global Markets.

Shareholders’ Equity

Shareholders’ equity increased $9.3 billion primarily due to net income, preferred stock issuances and an increase in accumulated other comprehensive income (OCI), partially offset by returns of capital to shareholders through common stock repurchases and common and preferred stock dividends, as well as preferred stock redemptions.

Cash Flows Overview

The Corporation’s operating assets and liabilities support our global markets and lending activities. We believe that cash flows from operations, available cash balances and our ability to generate cash through short- and long-term debt are sufficient to fund our operating liquidity needs. Our investing activities primarily include the debt securities portfolio and loans and leases. Our financing activities reflect cash flows primarily related to customer deposits, securities financing agreements, long-term debt and common and preferred stock.

Bank of America 30

Supplemental Financial Data

Non-GAAP Financial Measures

In this Form 10-K, 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 6 on page 32 and Table 7 on page 33.

For more information on the reconciliation of these non-GAAP financial measures to the corresponding GAAP financial measures, see Non-GAAP Reconciliations on page 86.

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 172.

Our consolidated key performance indicators, which include various equity and credit metrics, are presented in Table 1 on page 27, Table 6 on page 32 and Table 7 on page 33.

For information on key segment performance metrics, see Business Segment Operations on page 36.

31 Bank of America

Table 6

Selected Annual Financial Data

(In millions, except per share information)

2025

2024

2023

Income statement

Net interest income

$

60,096 

$

56,060 

$

56,931 

Noninterest income

53,001 

49,796 

45,838 

Total revenue, net of interest expense

113,097 

105,856 

102,769 

Provision for credit losses

5,675 

5,821 

4,394 

Noninterest expense

69,727 

66,812 

65,845 

Income before income taxes

37,695 

33,223 

32,530 

Income tax expense

7,186 

6,250 

6,225 

Net income

30,509 

26,973 

26,305 

Net income applicable to common shareholders

29,055 

25,344 

24,656 

Average common shares issued and outstanding

7,521.9 

7,855.5 

8,028.6 

Average diluted common shares issued and outstanding

7,680.9 

7,935.8 

8,080.5 

Performance ratios

Return on average assets (1)

0.89 

%

0.82 

%

0.83 

%

Return on average common shareholders’ equity (1)

10.59 

9.53 

9.73 

Return on average tangible common shareholders’ equity (2)

14.22 

12.94 

13.45 

Return on average shareholders’ equity (1)

10.22 

9.22 

9.33 

Return on average tangible shareholders’ equity (2)

13.36 

12.13 

12.43 

Total ending equity to total ending assets

8.89 

9.01 

9.12 

Common equity ratio (1)

8.13 

8.30 

8.23 

Total average equity to total average assets

8.75 

8.91 

8.94 

Dividend payout (1)

27.82 

30.86 

29.90 

Per common share data

Earnings

$

3.86 

$

3.23 

$

3.07 

Diluted earnings

3.81 

3.19 

3.05 

Dividends paid

1.08 

1.00 

0.92 

Book value (1)

38.44 

35.58 

33.16 

Tangible book value (2)

28.73 

26.37 

24.28 

Market capitalization

$

396,686 

$

334,497 

$

265,840 

Average balance sheet

Total loans and leases

$

1,136,787 

$

1,060,081 

$

1,046,256 

Total assets

3,410,412 

3,282,045 

3,152,461 

Total deposits

1,984,182 

1,924,106 

1,887,541 

Long-term debt

245,775 

246,081 

248,853 

Common shareholders’ equity

274,435 

265,980 

253,464 

Total shareholders’ equity

298,474 

292,467 

281,861 

Asset quality

Allowance for credit losses (3)

$

14,380 

$

14,336 

$

14,551 

Nonperforming loans, leases and foreclosed properties (4)

5,905 

6,120 

5,630 

Allowance for loan and lease losses as a percentage of total loans and leases outstanding (4)

1.12 

%

1.21 

%

1.27 

%

Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (4)

228 

222 

243 

Net charge-offs

$

5,631 

$

6,031 

$

3,799 

Net charge-offs as a percentage of average loans and leases outstanding (4)

0.50 

%

0.57 

%

0.36 

%

Capital ratios at year end (5)

Common equity tier 1 capital

11.4 

%

11.9 

%

11.8 

%

Tier 1 capital

12.8 

13.2 

13.5 

Total capital

14.7 

15.1 

15.2 

Tier 1 leverage

6.8 

6.9 

7.1 

Supplementary leverage ratio

5.7 

5.9 

6.1 

Tangible equity (2)

7.0 

7.0 

7.1 

Tangible common equity (2)

6.2 

6.3 

6.2 

(1)For definition, see Key Metrics on page 172.

(2)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 31 and Non-GAAP Reconciliations on page 86.

(3)Includes the allowance for loan and leases losses and the reserve for unfunded lending commitments.

(4)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 63 and corresponding Table 28 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 67 and corresponding Table 34.

(5)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 48.

Bank of America 32

Table 7

Selected Quarterly Financial Data

2025 Quarters

2024 Quarters

(In millions, except per share information)

Fourth

Third

Second

First

Fourth

Third

Second

First

Income statement

    Net interest income

$

15,750 

$

15,233 

$

14,670 

$

14,443 

$

14,359 

$

13,967 

$

13,702 

$

14,032 

    Noninterest income

12,617 

13,807 

12,773 

13,804 

12,116 

12,246 

12,603 

12,831 

    Total revenue, net of interest expense

28,367 

29,040 

27,443 

28,247 

26,475 

26,213 

26,305 

26,863 

Provision for credit losses

1,308 

1,295 

1,592 

1,480 

1,452 

1,542 

1,508 

1,319 

    Noninterest expense

17,437 

17,337 

17,183 

17,770 

16,787 

16,479 

16,309 

17,237 

    Income before income taxes

9,622 

10,408 

8,668 

8,997 

8,236 

8,192 

8,488 

8,307 

Income tax expense

1,975 

2,076 

1,498 

1,637 

1,430 

1,481 

1,685 

1,654 

   Net income

7,647 

8,332 

7,170 

7,360 

6,806 

6,711 

6,803 

6,653 

   Net income applicable to common shareholders

7,319 

7,903 

6,879 

6,954 

6,540 

6,195 

6,488 

6,121 

      Average common shares issued and outstanding

7,364.9 

7,466.0 

7,581.2 

7,677.9 

7,738.4 

7,818.0 

7,897.9 

7,968.2 

      Average diluted common shares issued and outstanding

7,546.9 

7,627.1 

7,651.6 

7,770.8 

7,843.7 

7,902.1 

7,960.9 

8,031.4 

Performance ratios

    Return on average assets (1)

0.89 

%

0.96 

%

0.84 

%

0.89 

%

0.82 

%

0.81 

%

0.84 

%

0.82 

%

    Four-quarter trailing return on average assets (2)

0.89 

0.88 

0.84 

0.84 

0.82 

0.72 

0.76 

0.78 

    Return on average common shareholders’ equity (1)

10.45 

11.40 

10.12 

10.37 

9.64 

9.22 

9.89 

9.37 

Return on average tangible common shareholders’ equity (3)

13.97 

15.29 

13.61 

13.97 

13.02 

12.49 

13.47 

12.79 

    Return on average shareholders’ equity (1)

9.98 

11.01 

9.74 

10.15 

9.23 

9.10 

9.37 

9.19 

    Return on average tangible shareholders’ equity (3)

12.97 

14.35 

12.77 

13.32 

12.12 

11.96 

12.34 

12.11 

    Total ending equity to total ending assets

8.89 

8.89 

8.66 

8.78 

9.01 

8.87 

8.97 

8.92 

Common equity ratio (1)

8.13 

8.12 

7.98 

8.17 

8.30 

8.13 

8.16 

8.05 

    Total average equity to total average assets

8.86 

8.75 

8.61 

8.78 

8.85 

8.91 

8.92 

8.97 

    Dividend payout (1)

28.02 

26.31 

28.48 

28.65 

30.62 

32.65 

29.08 

31.21 

Per common share data

    Earnings

$

0.99 

$

1.06 

$

0.91 

$

0.91 

$

0.85 

$

0.79 

$

0.82 

$

0.77 

    Diluted earnings

0.98 

1.04 

0.90 

0.89 

0.83 

0.78 

0.82 

0.76 

    Dividends paid

0.28 

0.28 

0.26 

0.26 

0.26 

0.26 

0.24 

0.24 

    Book value (1)

38.44 

37.72 

36.92 

36.17 

35.58 

35.14 

34.19 

33.52 

    Tangible book value (3)

28.73 

28.16 

27.49 

26.90 

26.37 

26.03 

25.17 

24.61 

Market capitalization

$

396,686 

$

378,125 

$

351,904 

$

315,482 

$

334,497 

$

305,090 

$

309,202 

$

298,312 

Average balance sheet

    Total loans and leases

$

1,170,895 

$

1,153,035 

$

1,128,453 

$

1,093,738 

$

1,081,009 

$

1,059,728 

$

1,051,472 

$

1,047,890 

    Total assets

3,427,791 

3,433,447 

3,430,280 

3,349,011 

3,315,578 

3,293,900 

3,272,956 

3,245,247 

    Total deposits

2,012,523 

1,991,434 

1,973,761 

1,958,332 

1,957,950 

1,920,748 

1,909,925 

1,907,462 

    Long-term debt

245,470 

247,425 

249,104 

241,036 

238,988 

247,338 

243,689 

254,782 

Common shareholders’ equity

277,881 

275,149 

272,756 

271,880 

269,905 

267,447 

263,830 

262,677 

Total shareholders’ equity

303,873 

300,381 

295,329 

294,187 

293,398 

293,431 

291,943 

291,074 

Asset quality

Allowance for credit losses (4)

$

14,380 

$

14,361 

$

14,434 

$

14,366 

$

14,336 

$

14,351 

$

14,342 

$

14,371 

Nonperforming loans, leases and foreclosed properties (5)

5,905 

5,470 

6,104 

6,201 

6,120 

5,824 

5,691 

6,034 

Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)

1.12 

%

1.14 

%

1.17 

%

1.20 

%

1.21 

%

1.24 

%

1.26 

%

1.26 

%

Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)

228 

248 

222 

218 

222 

235 

242 

225 

Net charge-offs

$

1,287 

$

1,367 

$

1,525 

$

1,452 

$

1,466 

$

1,534 

$

1,533 

$

1,498 

Annualized net charge-offs as a percentage of average loans and leases outstanding (5)

0.44 

%

0.47 

%

0.55 

%

0.54 

%

0.54 

%

0.58 

%

0.59 

%

0.58 

%

Capital ratios at period end (6)

Common equity tier 1 capital

11.4 

%

11.6 

%

11.5 

%

11.8 

%

11.9 

%

11.8 

%

11.9 

%

11.9 

%

      Tier 1 capital

12.8 

13.1 

12.9 

13.0 

13.2 

13.2 

13.5 

13.6 

      Total capital

14.7 

15.0 

14.8 

15.0 

15.1 

14.9 

15.1 

15.2 

      Tier 1 leverage

6.8 

6.8 

6.7 

6.8 

6.9 

6.9 

7.0 

7.1 

      Supplementary leverage ratio

5.7 

5.8 

5.7 

5.7 

5.9 

5.9 

6.0 

6.0 

      Tangible equity (3)

7.0 

7.0 

6.8 

6.8 

7.0 

6.9 

7.0 

6.9 

Tangible common equity (3)

6.2 

6.2 

6.1 

6.2 

6.3 

6.2 

6.1 

6.0 

Total loss-absorbing capacity and long-term debt metrics

    Total loss-absorbing capacity to risk-weighted assets

26.3 

%

27.0 

%

27.1 

%

27.4 

%

27.1 

%

27.4 

%

28.2 

%

28.7 

%

    Total loss-absorbing capacity to supplementary leverage

      exposure

11.7 

11.9 

12.0 

12.1 

12.0 

12.2 

12.5 

12.8 

    Eligible long-term debt to risk-weighted assets

12.7 

13.1 

13.5 

13.6 

13.0 

13.3 

13.7 

14.2 

Eligible long-term debt to supplementary leverage exposure

5.7 

5.8 

6.0 

6.0 

5.8 

6.0 

6.0 

6.3 

(1)For definitions, see Key Metrics on page 172.

(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 31 and Non-GAAP Reconciliations on page 86.

(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 63 and corresponding Table 28 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 68 and corresponding Table 34.

(6)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 48.

33 Bank of America

Table 8

Average Balances and Interest Rates - FTE Basis

Average

Balance

Interest

Income/

Expense (1)

Yield/

Rate

Average

Balance

Interest

Income/

Expense (1)

Yield/

Rate

Average

Balance

Interest

Income/

Expense (1)

Yield/

Rate

(Dollars in millions)

2025

2024

2023

Earning assets

Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks

$

260,543 

$

10,493 

4.03 

%

$

332,897 

$

16,806 

5.05 

%

$

324,389 

$

15,965 

4.92 

%

Time deposits placed and other short-term investments

9,902 

354 

3.58 

10,105 

459 

4.54 

9,704 

465 

4.79 

Federal funds sold and securities borrowed or purchased under agreements to resell

328,423 

15,433 

4.70 

310,626 

19,911 

6.41 

291,669 

18,679 

6.40 

Trading account assets

235,772 

12,346 

5.24 

207,557 

10,476 

5.05 

189,263 

8,849 

4.68 

Debt securities

930,634 

27,466 

2.94 

868,709 

26,107 

2.99 

794,192 

20,332 

2.55 

Loans and leases (2)

Residential mortgage

233,745 

8,093 

3.46 

227,777 

7,391 

3.24 

229,001 

6,923 

3.02 

Home equity

26,315 

1,512 

5.75 

25,621 

1,607 

6.27 

25,969 

1,471 

5.67 

Credit card

101,043 

11,518 

11.40 

99,914 

11,438 

11.45 

96,190 

10,436 

10.85 

Direct/Indirect and other consumer 

109,701 

5,960 

5.43 

104,548 

5,829 

5.58 

104,571 

5,200 

4.97 

Total consumer

470,804 

27,083 

5.75 

457,860 

26,265 

5.74 

455,731 

24,030 

5.27 

U.S. commercial

434,652 

23,023 

5.30 

390,574 

21,402 

5.48 

378,212 

19,494 

5.15 

Non-U.S. commercial

148,871 

8,233 

5.53 

126,596 

8,749 

6.91 

125,486 

8,023 

6.39 

Commercial real estate (3)

66,356 

4,092 

6.17 

69,940 

5,000 

7.15 

72,981 

5,162 

7.07 

Commercial lease financing

16,104 

870 

5.40 

15,111 

806 

5.33 

13,846 

646 

4.67 

Total commercial

665,983 

36,218 

5.44 

602,221 

35,957 

5.97 

590,525 

33,325 

5.64 

Total loans and leases

1,136,787 

63,301 

5.57 

1,060,081 

62,222 

5.87 

1,046,256 

57,355 

5.48 

Other earning assets

122,211 

9,782 

8.00 

108,893 

11,245 

10.33 

98,127 

9,184 

9.36 

Total earning assets

3,024,272 

139,175 

4.60 

2,898,868 

147,226 

5.08 

2,753,600 

130,829 

4.75 

Cash and due from banks

24,784 

24,045 

26,076 

Other assets, less allowance for loan and lease losses

361,356 

359,132 

372,785 

Total assets

$

3,410,412 

$

3,282,045 

$

3,152,461 

Interest-bearing liabilities

U.S. interest-bearing deposits

Demand and money market deposits

$

1,087,871 

$

22,836 

2.10 

%

$

1,050,904 

$

25,177 

2.40 

%

$

1,038,681 

$

19,081 

1.84 

%

Time and savings deposits

258,373 

7,904 

3.06 

250,591 

8,848 

3.53 

168,531 

3,812 

2.26 

Total U.S. interest-bearing deposits

1,346,244 

30,740 

2.28 

1,301,495 

34,025 

2.61 

1,207,212 

22,893 

1.90 

Non-U.S. interest-bearing deposits

123,461 

3,773 

3.06 

109,246 

4,417 

4.04 

96,845 

3,270 

3.38 

Total interest-bearing deposits

1,469,705 

34,513 

2.35 

1,410,741 

38,442 

2.72 

1,304,057 

26,163 

2.01 

Federal funds purchased, securities loaned or sold under agreements to repurchase

385,966 

18,572 

4.81 

367,192 

23,777 

6.48 

301,015 

20,583 

6.84 

Short-term borrowings and other interest-bearing liabilities

175,902 

9,470 

5.38 

149,355 

10,761 

7.21 

152,548 

9,970 

6.54 

Trading account liabilities

51,758 

2,657 

5.13 

52,371 

2,191 

4.18 

46,083 

2,043 

4.43 

Long-term debt

245,775 

13,258 

5.39 

246,081 

15,376 

6.25 

248,853 

14,572 

5.86 

Total interest-bearing liabilities

2,329,106 

78,470 

3.37 

2,225,740 

90,547 

4.07 

2,052,556 

73,331 

3.57 

Noninterest-bearing sources

Noninterest-bearing deposits

514,477 

513,365 

583,484 

Other liabilities (4)

268,355 

250,473 

234,560 

Shareholders’ equity

298,474 

292,467 

281,861 

Total liabilities and shareholders’ equity

$

3,410,412 

$

3,282,045 

$

3,152,461 

Net interest spread

1.23 

%

1.01 

%

1.18 

%

Impact of noninterest-bearing sources

0.78 

0.94 

0.90 

Net interest income/yield on earning assets (5)

$

60,705 

2.01 

%

$

56,679 

1.95 

%

$

57,498 

2.08 

%

(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 79.

(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 $60.4 billion, $63.8 billion and $67.2 billion, and non-U.S. commercial real estate loans of $5.9 billion, $6.1 billion and $5.8 billion for 2025, 2024 and 2023, respectively.

(4)Includes $62.9 billion, $48.4 billion and $40.2 billion of structured notes and liabilities for 2025, 2024 and 2023, respectively.

(5)Net interest income includes FTE adjustments of $609 million, $619 million and $567 million for 2025, 2024 and 2023, respectively.

Bank of America 34

Table 9

Analysis of Changes in Net Interest Income - FTE Basis

Due to Change in (1)

Net Change

Due to Change in (1)

Net Change

Volume

Rate

Volume

Rate

(Dollars in millions)

From 2024 to 2025

From 2023 to 2024

Increase (decrease) in interest income

Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks

$

(3,649)

$

(2,664)

$

(6,313)

$

414 

$

427 

$

841 

Time deposits placed and other short-term investments

(9)

(96)

(105)

19 

(25)

(6)

Federal funds sold and securities borrowed or purchased under agreements to resell

1,141 

(5,619)

(4,478)

1,201 

31 

1,232 

Trading account assets

1,430 

440 

1,870 

865 

762 

1,627 

Debt securities

1,719 

(360)

1,359 

1,820 

3,955 

5,775 

Loans and leases

Residential mortgage

182 

520 

702 

(44)

512 

468 

Home equity

43 

(138)

(95)

(18)

154 

136 

Credit card

131 

(51)

80 

405 

597 

1,002 

Direct/Indirect and other consumer

292 

(161)

131 

(4)

633 

629 

Total consumer

818 

2,235 

U.S. commercial

2,417 

(796)

1,621 

621 

1,287 

1,908 

Non-U.S. commercial

1,538 

(2,054)

(516)

66 

660 

726 

Commercial real estate

(256)

(652)

(908)

(217)

55 

(162)

Commercial lease financing

52 

12 

64 

60 

100 

160 

Total commercial

261 

2,632 

Total loans and leases

1,079 

4,867 

Other earning assets

1,379 

(2,842)

(1,463)

1,008 

1,053 

2,061 

Net increase (decrease) in interest income

$

(8,051)

$

16,397 

Increase (decrease) in interest expense

U.S. interest-bearing deposits

Demand and money market deposit accounts

$

932 

$

(3,273)

$

(2,341)

$

256 

$

5,840 

$

6,096 

Time and savings deposits

273 

(1,217)

(944)

1,851 

3,185 

5,036 

Total U.S. interest-bearing deposits

(3,285)

11,132 

Non-U.S. interest-bearing deposits

571 

(1,215)

(644)

423 

724 

1,147 

Total interest-bearing deposits

(3,929)

12,279 

Federal funds purchased and securities loaned or sold under agreements to

   repurchase

1,234 

(6,439)

(5,205)

4,533 

(1,339)

3,194 

Short-term borrowings and other interest bearing liabilities

1,922 

(3,213)

(1,291)

(202)

993 

791 

Trading account liabilities

(28)

494 

466 

277 

(129)

148 

Long-term debt

(15)

(2,103)

(2,118)

(152)

956 

804 

Net increase (decrease) in interest expense

(12,077)

17,216 

Net increase (decrease) in net interest income (2)

$

4,026 

$

(819)

(1)The changes for each category of interest income and expense are divided between the portion of change attributable to the variance in volume and the portion of change attributable to the variance in rate for that category. The unallocated change in rate or volume variance is allocated between the rate and volume variances.

(2)Includes changes in FTE basis adjustments of a $10 million decrease from 2024 to 2025 and a $52 million increase from 2023 to 2024.

35 Bank of America

Business Segment Operations

Segment Description and Basis of Presentation

We report our results of operations through the following 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. The primary activities, products and businesses of the business segments and All Other are shown below.

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. Our internal risk-based capital models use a risk-adjusted methodology incorporating each segment’s credit, market, interest rate, business and operational risk components. For more information on the nature of these risks, see Managing Risk on page 45. The capital allocated to the business segments is referred to as allocated capital.

For more information on our presentation of financial information on an FTE basis, see Supplemental Financial Data on page 31, and for reconciliations to consolidated total revenue, net income and year--end total assets, see Note 23 – 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. These KPIs may not be defined or calculated in the same way as similar KPIs used by other companies.

Bank of America 36

Consumer Banking

(Dollars in millions)

2025

2024

% Change

Net interest income

$

35,309 

$

33,078 

7 

%

Noninterest income:

Card income

5,456 

5,432 

— 

Service charges

2,528 

2,445 

3 

All other income

380 

481 

(21)

Total noninterest income

8,364 

8,358 

— 

Total revenue, net of interest expense

43,673 

41,436 

5 

Provision for credit losses

4,649 

4,987 

(7)

Noninterest expense

22,697 

22,104 

3 

Income before income taxes

16,327 

14,345 

14 

Income tax expense

4,082 

3,586 

14 

Net income

$

12,245 

$

10,759 

14 

Effective tax rate

25.0 

%

25.0 

%

Net interest yield

3.56 

3.34 

Efficiency ratio

51.97 

53.35 

Return on average allocated capital

28 

25 

Balance Sheet

Average

Total loans and leases

$

319,312 

$

313,792 

2 

%

Total earning assets

992,579 

988,950 

— 

Total assets

1,030,094 

1,026,310 

— 

Total deposits

948,078 

945,549 

— 

Allocated capital

44,000 

43,250 

2 

Year End

Total loans and leases

$

325,871 

$

318,754 

2 

%

Total earning assets

998,969 

995,369 

— 

Total assets

1,039,346 

1,034,370 

— 

Total deposits

956,265 

952,311 

— 

Consumer Banking offers a diversified range of lending, deposit and investment products and services to consumers and small businesses. Consumer Banking includes the net impact of migrating customers and their related deposit, brokerage asset and loan balances between Consumer Banking and GWIM, as well as other client-managed businesses. Our customers and clients have access to a coast-to-coast network, including financial centers in 38 states and the District of Columbia. As of December 31, 2025, our network includes approximately 3,600 financial centers, approximately 15,000 ATMs, nationwide call centers and leading digital banking platforms with approximately 49 million active users, including approximately 41 million active mobile users.

Consumer Banking Results

Net income for Consumer Banking increased $1.5 billion to $12.2 billion primarily due to higher revenue and lower provision for credit losses, partially offset by higher noninterest expense. Net interest income increased $2.2 billion to $35.3 billion primarily driven by higher deposit spreads, as well as loan and deposit balances. Noninterest income was $8.4 billion, relatively unchanged from the same period a year ago.

The provision for credit losses decreased $338 million to $4.6 billion primarily due to improved asset quality in credit card. Noninterest expense increased $593 million to $22.7 billion primarily driven by investments in the business, including people and marketing.

The return on average allocated capital was 28 percent, up from 25 percent, due to higher net income, partially offset by an increase in allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 36.

Average loans and leases increased $5.5 billion to $319.3 billion due to growth across all products.

Average deposits increased $2.5 billion to $948.1 billion primarily due to growth in time deposits of $16.5 billion and net inflows of $7.2 billion in checking, partially offset by net outflows of $21.1 billion in money market and other savings.

Consumer investment assets increased $81.3 billion to $599.1 billion driven by higher market valuations and positive net client flows.

Key Statistics

The following table provides key performance indicators for deposit spreads, other period-end information, credit and debit card and loan production activities.

37 Bank of America

Key Statistics

(Dollars in millions)

2025

2024

Deposit Spreads

Total deposit spreads (excludes noninterest costs)

2.92%

2.77%

Year end

Consumer investment assets (in millions) (1)

$

599,110

$

517,835

Active digital banking users (in thousands) (2)

49,323

48,150

Active mobile banking users (in thousands) (3)

41,427

39,958

Financial centers

3,628

3,700

ATMs

14,909

14,893

Credit and Debit Card

Total credit card (4)

Gross interest yield (5)

12.02 

%

12.30 

%

Risk-adjusted margin (6)

7.06 

6.98 

New accounts (in thousands)

3,531 

3,820 

Purchase volumes

$

377,760 

$

368,861 

 Debit card purchase volumes

594,603 

557,000 

Loan Production (7)

Consumer Banking:

First mortgage

$

12,137 

$

10,252 

Home equity

8,560 

7,450 

Total (8):

First mortgage

$

26,326 

$

21,104 

Home equity

10,400 

8,884 

(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.

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 72 financial centers and an increase of 16 ATMs as we continued to optimize our consumer banking network.

During 2025, the total risk-adjusted margin increased eight bps primarily driven by higher net interest margin and lower net charge-offs, partially offset by lower fee income. Total credit card purchase volumes increased $8.9 billion, and debit card purchase volumes increased $37.6 billion, reflecting higher levels of consumer spending.

During 2025, first mortgage loan originations for Consumer Banking increased $1.9 billion, and first mortgage loan originations for the total Corporation increased $5.2 billion, primarily driven by higher demand.

During 2025, home equity production in Consumer Banking increased $1.1 billion, and home equity production for the total Corporation increased $1.5 billion, primarily driven by higher demand.

Bank of America 38

Global Wealth & Investment Management

(Dollars in millions)

2025

2024

% Change

Net interest income

$

7,197 

$

6,969 

3 

%

Noninterest income:

Investment and brokerage services

17,019 

15,238 

12 

All other income

667 

722 

(8)

Total noninterest income

17,686 

15,960 

11 

Total revenue, net of interest expense

24,883 

22,929 

9 

Provision for credit losses

35 

4 

n/m

Noninterest expense

18,621 

17,241 

8 

Income before income taxes

6,227 

5,684 

10 

Income tax expense

1,557 

1,421 

10 

Net income

$

4,670 

$

4,263 

10 

Effective tax rate

25.0 

%

25.0 

%

Net interest yield

2.32 

2.20 

Efficiency ratio

74.84 

75.19 

Return on average allocated capital

24 

23 

Balance Sheet

Average

Total loans and leases

$

243,123 

$

223,899 

9 

%

Total earning assets

309,890 

317,283 

(2)

Total assets

323,914 

331,014 

(2)

Total deposits

279,776 

287,491 

(3)

Allocated capital

19,750 

18,500 

7 

Year end

Total loans and leases

$

261,303 

$

231,981 

13 

%

Total earning assets

320,899 

323,496 

(1)

Total assets

335,495 

338,367 

(1)

Total deposits

289,854 

292,278 

(1)

n/m = not meaningful

GWIM consists of two primary businesses: Merrill Wealth Management and Bank of America Private Bank.

Merrill Wealth Management’s advisory business provides a high-touch client experience through a network of financial advisors focused on clients with over $250,000 in total investable assets. Merrill Wealth Management provides tailored solutions to meet clients’ needs through a full set of investment management, brokerage, banking and retirement products.

Bank of America Private Bank, together with Merrill Wealth Management’s Private Wealth Management business, provides comprehensive wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients’ wealth structuring, investment management, trust and banking needs, including specialty asset management services.

Net income for GWIM increased $407 million to $4.7 billion primarily due to higher revenue, partially offset by higher noninterest expense. The operating margin was 25 percent in both 2025 and 2024.

Net interest income increased $228 million to $7.2 billion primarily driven by loan growth.

Noninterest income, which primarily includes investment and brokerage services income, increased $1.7 billion to $17.7 billion. The increase was primarily driven by higher asset management fees, which increased 12 percent to $15.4 billion, reflecting higher market valuations and the impact of positive AUM flows as well as higher brokerage fees due to increased transactional volume, partially offset by the impact of lower AUM pricing.

Noninterest expense increased $1.4 billion to $18.6 billion primarily due to higher revenue-related incentives and investments in the business, including people and technology.

The return on average allocated capital was 24 percent, up from 23 percent, due to higher net income, partially offset by an increase in allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 36.

Average loans and leases increased $19.2 billion to $243.1 billion primarily driven by custom lending, securities-based lending and residential mortgage. Average deposits decreased $7.7 billion to $279.8 billion primarily driven by clients moving deposits to higher yielding investment cash alternatives, including offerings on our investment and brokerage platforms, as well as a higher level of client tax payments.

Merrill Wealth Management revenue of $20.7 billion increased nine percent primarily driven by higher asset management fees 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 $4.2 billion increased eight 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.

39 Bank of America

Key Indicators and Metrics

(Dollars in millions)

2025

2024

Revenue by Business

Merrill Wealth Management

$

20,716 

$

19,066 

Bank of America Private Bank

4,167 

3,863 

Total revenue, net of interest expense

$

24,883 

$

22,929 

Client Balances by Business, at year end

Merrill Wealth Management

$

3,992,312 

$

3,578,513 

Bank of America Private Bank

759,082 

673,593 

Total client balances

$

4,751,394 

$

4,252,106 

Client Balances by Type, at year end

Assets under management

$

2,177,708 

$

1,882,211 

Brokerage and other assets

2,067,937 

1,888,334 

Deposits

289,854 

292,278 

Loans and leases (1)

263,819 

234,208 

Less: Managed deposits in assets under management

(47,924)

(44,925)

Total client balances

$

4,751,394 

$

4,252,106 

Assets Under Management Rollforward

Assets under management, beginning of year

$

1,882,211 

$

1,617,740 

Net client flows

81,997 

79,227 

Market valuation/other

213,500 

185,244 

Total assets under management, end of year

$

2,177,708 

$

1,882,211 

(1)Includes margin receivables, which are classified in customer and other receivables on the Consolidated Balance Sheet.

Client Balances

Client balances managed under advisory and/or discretion of GWIM are AUM and are typically held in diversified portfolios. Fees earned on AUM are calculated as a percentage of clients’ AUM balances. The asset management fees charged to clients per year depend on various factors but are commonly driven by the breadth of the client’s relationship. The net client AUM flows

represent the net change in clients’ AUM balances over a specified period of time, excluding market appreciation/depreciation and other adjustments.

Client balances increased $499.3 billion, or 12 percent, to $4.8 trillion at December 31, 2025 compared to December 31, 2024. The increase in client balances was driven by higher market valuations and positive net client flows.

Bank of America 40

Global Banking

(Dollars in millions)

2025

2024

% Change

Net interest income

$

12,611 

$

13,235 

(5)

%

Noninterest income:

Service charges

3,438 

3,135 

10 

Investment banking fees

3,742 

3,453 

8 

All other income

4,317 

3,925 

10 

Total noninterest income

11,497 

10,513 

9 

Total revenue, net of interest expense

24,108 

23,748 

2 

Provision for credit losses

943 

883 

7 

Noninterest expense

12,416 

11,853 

5 

Income before income taxes

10,749 

11,012 

(2)

Income tax expense

2,956 

3,028 

(2)

Net income

$

7,793 

$

7,984 

(2)

Effective tax rate

27.5 

%

27.5 

%

Net interest yield

1.94 

2.29 

Efficiency ratio

51.51 

49.91 

Return on average allocated capital

15 

16 

Balance Sheet

Average

Total loans and leases

$

385,379 

$

373,227 

3 

%

Total earning assets

650,829 

577,481 

13 

Total assets

715,866 

643,337 

11 

Total deposits

616,831 

545,769 

13 

Allocated capital

50,750 

49,250 

3 

Year end

Total loans and leases

$

388,998 

$

379,473 

3 

%

Total earning assets

671,354 

605,499 

11 

Total assets

734,710 

670,505 

10 

Total deposits

641,211 

578,159 

11 

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. Our lending products and services include commercial loans, leases, commitment facilities, trade finance, commercial real estate lending and asset-based lending. Our treasury solutions business includes deposits, treasury management, corporate credit card, merchant services, foreign exchange and short-term investment products. We also provide investment banking services to our clients such as debt and equity underwriting and distribution, and merger-related and other advisory services. Underwriting debt and equity issuances, fixed-income and equity research, and certain market-based activities are executed through our global broker-dealer affiliates, which are our primary dealers in several countries. Within Global Banking, Global Corporate Banking clients generally include large global corporations, financial institutions and leasing clients. Global Commercial Banking clients generally include middle-market companies, commercial real estate firms and not-for-profit companies. Business Banking clients include mid-sized U.S.-based businesses requiring customized and integrated financial advice and solutions.

Net income for Global Banking decreased $191 million to $7.8 billion driven by higher noninterest expense and provision for credit losses, partially offset by higher revenue.

Net interest income decreased $624 million to $12.6 billion primarily due to the impact of lower interest rates, partially offset by the benefit of higher average deposit and loan balances.

Noninterest income increased $984 million to $11.5 billion primarily due to sales of certain leveraged finance positions, higher investment banking fees and higher treasury service charges.

The provision for credit losses increased $60 million to $943 million driven by the commercial and industrial portfolio, partially offset by improvement within the commercial real estate portfolio.

Noninterest expense increased $563 million to $12.4 billion primarily due to continued investments in the business, including people, technology and operations, as well as higher regulatory costs.

The return on average allocated capital was 15 percent, down from 16 percent, due to lower net income and an increase in allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 36.

41 Bank of America

Global Corporate, Global Commercial and Business Banking

Global Corporate, Global Commercial and Business Banking each include Business Lending and Global Transaction Services activities. Business Lending includes various lending-related products and services, and related hedging activities, including commercial loans, leases, commitment facilities, trade finance,

commercial real estate lending and asset-based lending. Global Transaction Services includes deposits, treasury management, corporate credit card, merchant services, foreign exchange and short-term investment products. The table below and discussion present a summary of the 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

(Dollars in millions)

2025

2024

2025

2024

2025

2024

2025

2024

Revenue

Business Lending

$

4,031 

$

4,339 

$

4,566 

$

4,941 

$

216 

$

231 

$

8,813 

$

9,511 

Global Transaction Services

5,299 

5,125 

4,224 

3,906 

1,488 

1,474 

11,011 

10,505 

Total revenue, net of interest expense

$

9,330 

$

9,464 

$

8,790 

$

8,847 

$

1,704 

$

1,705 

$

19,824 

$

20,016 

Balance Sheet

Average

Total loans and leases

$

174,993 

$

164,179 

$

198,414 

$

196,650 

$

11,913 

$

12,272 

$

385,320 

$

373,101 

Total deposits

347,396 

300,154 

215,160 

193,533 

54,275 

52,081 

616,831 

545,768 

Year end

Total loans and leases

$

179,314 

$

173,013 

$

197,313 

$

194,529 

$

12,358 

$

11,791 

$

388,985 

$

379,333 

Total deposits

348,798 

316,214 

234,887 

209,792 

57,523 

52,152 

641,208 

578,158 

Business Lending revenue decreased $698 million in 2025 compared to 2024 primarily driven by lower net interest income.

Global Transaction Services revenue increased $506 million in 2025 compared to 2024 primarily driven by the benefit of higher average deposit balances and higher treasury service charges, partially offset by the impact of lower interest rates.

Average loans and leases of $385.3 billion increased three percent in 2025 compared to 2024 due to client demand. Average deposits of $616.8 billion increased 13 percent in 2025 compared to 2024 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.

Investment Banking Fees

Global Banking

Total Corporation

(Dollars in millions)

2025

2024

2025

2024

Products

Advisory

$

1,707 

$

1,504 

$

1,890 

$

1,690 

Debt issuance

1,548 

1,398 

3,698 

3,310 

Equity issuance

487 

551 

1,259 

1,354 

Gross investment banking fees

3,742 

3,453 

6,847 

6,354 

Self-led deals

(69)

(32)

(217)

(168)

Total investment banking fees

$

3,673 

$

3,421 

$

6,630 

$

6,186 

Total Corporation investment banking fees, which exclude self-led deals and are primarily included within Global Banking and Global Markets, increased seven percent to $6.6 billion compared to the same period in 2024 primarily due to higher debt issuance and advisory fees, partially offset by lower equity issuance fees.

Bank of America 42

Global Markets

(Dollars in millions)

2025

2024

% Change

Net interest income

$

5,690 

$

3,375 

69 

%

Noninterest income:

Investment and brokerage services

2,511 

2,128 

18 

Investment banking fees

2,837 

2,655 

7 

Market making and similar activities

12,064 

12,778 

(6)

All other income

994 

876 

13 

Total noninterest income

18,406 

18,437 

— 

Total revenue, net of interest expense

24,096 

21,812 

10 

Provision for credit losses

71 

(32)

n/m

Noninterest expense

15,418 

13,926 

11 

Income before income taxes

8,607 

7,918 

9 

Income tax expense

2,496 

2,296 

9 

Net income

$

6,111 

$

5,622 

9 

Effective tax rate

29.0 

%

29.0 

%

Efficiency ratio

63.99 

63.85 

Return on average allocated capital

13 

12 

Balance Sheet

Average

Trading-related assets:

Trading account securities

$

352,548 

$

324,065 

9 

%

Reverse repurchases

145,925 

137,052 

6 

Securities borrowed

138,791 

135,108 

3 

Derivative assets

40,699 

37,795 

8 

Total trading-related assets

677,963 

634,020 

7 

Total loans and leases

181,334 

140,557 

29 

Total earning assets

806,901 

710,604 

14 

Total assets

1,010,898 

911,657 

11 

Total deposits

38,074 

34,120 

12 

Allocated capital

49,000 

45,500 

8 

Year end

Total trading-related assets

$

670,949 

$

580,557 

16 

%

Total loans and leases

202,733 

157,450 

29 

Total earning assets

814,196 

687,678 

18 

Total assets

1,032,858 

876,548 

18 

Total deposits

40,614 

38,848 

5 

n/m = not meaningful

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. Global Markets provides market-making, financing, securities clearing, settlement and custody services globally to our institutional investor clients in support of their investing and trading activities. We also work with our commercial and corporate clients to provide risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income and mortgage-related products. As a result of our market-making activities in these products, we may be required to manage risk in a broad range of financial products including government securities, equity and equity-linked securities, high-grade and high-yield corporate debt securities, syndicated loans, MBS, commodities and asset-backed securities. The economics of certain investment banking and underwriting activities are shared primarily between Global Markets and Global Banking 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. For information on

investment banking fees on a consolidated basis, see page 42.

The following explanations for year-over-year 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 a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 31.

Net income for Global Markets increased $489 million to $6.1 billion. Net DVA losses were $35 million compared to $113 million in 2024. Excluding net DVA, net income increased $430 million to $6.1 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.

Revenue increased $2.3 billion to $24.1 billion primarily due to higher sales and trading revenue, sales of certain leveraged finance positions and higher investment banking fees. Sales and trading revenue increased $2.1 billion, and excluding net DVA, increased $2.0 billion. These increases were driven by higher revenue in Equities and FICC. Noninterest expense increased $1.5 billion to $15.4 billion primarily driven by higher revenue-related expenses and continued investments in the business, including people and technology.

43 Bank of America

Average total assets increased $99.2 billion to $1.0 trillion, driven by loan growth, higher levels of inventory and increased financing activity. Year-end total assets increased $156.3 billion to $1.0 trillion driven by the same factors as average total assets.

The return on average allocated capital was 13 percent, up from 12 percent, due to an increase in net income, partially offset by higher allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 36.

Sales and Trading Revenue

Sales and trading revenue includes unrealized and realized gains and losses on trading and other assets that are included in market making and similar activities, net interest income, and fees primarily from commissions on equity securities. Sales and trading revenue is segregated into fixed-income (government debt obligations, investment and non-investment grade corporate debt obligations, commercial MBS, residential mortgage-backed securities, collateralized loan obligations, interest rate and credit derivative contracts), currencies (interest rate and foreign exchange contracts), commodities (primarily futures, forwards, swaps and options) and equities (equity-linked derivatives and cash equity activity). 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 31.

Sales and Trading Revenue (1, 2, 3)

(Dollars in millions)

2025

2024

Sales and trading revenue (2)

Fixed-income, currencies and commodities

$

12,267 

$

11,371 

Equities

8,604 

7,436 

Total sales and trading revenue

$

20,871 

$

18,807 

Sales and trading revenue, excluding net DVA (4)

Fixed-income, currencies and commodities

$

12,308 

$

11,468 

Equities

8,598 

7,452 

Total sales and trading revenue, excluding net DVA

$

20,906 

$

18,920 

(1)For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements.

(2)Includes FTE adjustments of $708 million and $890 million for 2025 and 2024.

(3)Includes Global Banking sales and trading revenue of $530 million and $677 million for 2025 and 2024.

(4)FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA losses were $41 million and $97 million for 2025 and 2024. Equities net DVA gains (losses) were $6 million and $(16) million for 2025 and 2024.

Including and excluding net DVA, FICC revenue increased $896 million and $840 million driven by improved trading performance in macro products. Including and excluding net DVA, Equities revenue increased $1.2 billion and $1.1 billion driven by increased client activity.

All Other

(Dollars in millions)

2025

2024

% Change

Net interest income

$

(102)

$

22 

n/m

Noninterest income (loss)

(2,952)

(3,472)

(15)

%

Total revenue, net of interest expense

(3,054)

(3,450)

(11)

Provision for credit losses

(23)

(21)

10 

Noninterest expense

575 

1,688 

(66)

Loss before income taxes

(3,606)

(5,117)

(30)

Income tax benefit

(3,296)

(3,462)

(5)

Net loss

$

(310)

$

(1,655)

(81)

Balance Sheet

Average

Total loans and leases

$

7,639 

$

8,606 

(11)

%

Total assets (1)

329,640 

369,727 

(11)

Total deposits

101,423 

111,177 

(9)

Year end

Total loans and leases

$

6,795 

$

8,177 

(17)

%

Total assets (1)

269,329 

341,509 

(21)

Total deposits

90,785 

103,871 

(13)

(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 $990.6 billion and $956.5 billion for 2025 and 2024 and year-end allocated assets were $1.0 trillion and $980.4 billion at December 31, 2025 and 2024.

n/m = not meaningful

All Other primarily consists of asset and liability management (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. For more information, see Note 23 – Business Segment Information to the Consolidated Financial Statements.

The net loss in All Other decreased $1.3 billion to $310 million primarily due to lower noninterest expense and a lower loss in noninterest income, partially offset by a lower income tax benefit.

The loss in noninterest income decreased $520 million primarily due to a reduction in the volume of tax-related equity investments and lower valuation losses on certain derivatives.

Noninterest expense decreased $1.1 billion to $575 million primarily due to a reduction in the Corporation’s accrual in 2025 for the FDIC special assessment compared to an increase in the accrual in 2024, and lower expenses related to a liquidating business activity.

The income tax benefit decreased $166 million primarily due to a lower pretax loss.

Bank of America 44

Managing Risk

Risk is inherent in all our business activities. 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.

The seven key types of risk faced by the Corporation are strategic, credit, market, liquidity, compliance, operational and reputational.

●    Strategic risk is the risk to current or projected financial condition arising from incorrect assumptions about external or internal factors, inappropriate business plans, ineffective business strategy execution or failure to respond in a timely manner to changes in the regulatory, macroeconomic or competitive environments in the geographic locations in which we operate.

●    Credit risk is the risk of loss arising from the inability or failure of a borrower or counterparty to meet its obligations.

●    Market risk is the risk that changes in market conditions adversely impact the value of assets or liabilities or otherwise negatively impact earnings. Market risk is composed of price risk and interest rate risk.

●    Liquidity risk is the risk of the inability to meet expected or unexpected cash flow and collateral needs while continuing to support our businesses and customers under a range of economic conditions.

●    Compliance risk is the risk of legal action or regulatory sanctions, material financial loss or damage to the reputation of the Corporation arising from the failure of the Corporation to comply with the requirements of applicable laws, rules and regulations (LRRs) and our internal policies and procedures.

●    Operational risk is the risk of loss resulting from inadequate or failed internal processes or systems, people or external events.

●    Reputational risk is the risk that negative perception of the Corporation may materially impact its financial condition.

The following sections address in more detail the specific procedures, measures and analyses of the major categories of risk.

As set forth in our Risk Framework, a culture of managing risk well is fundamental to our values and our purpose, and how we drive Responsible Growth. It requires us to focus on risk in all activities and encourages the necessary mindset and behavior to enable effective risk management and promote sound risk-taking within our risk appetite. Sustaining a culture of managing risk well throughout the organization is critical to the success of the Corporation and is a clear expectation of our executive management team 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.

Executive management assesses, with Board oversight, the risk-adjusted returns of each business. Management reviews and approves the strategic and financial operating plans, as well as the capital plan and Risk Appetite Statement, and recommends them annually to the Board for approval. Our strategic plan takes into consideration return objectives and financial resources, which must align with risk capacity and risk appetite. Management sets financial objectives for each business by allocating capital and setting a target for return on capital for each business. Capital allocations are regularly evaluated as part of our overall governance processes as the businesses and the economic environment in which we operate continue to evolve. For more information regarding capital allocations, see Business Segment Operations on page 36.

The Corporation’s risk appetite indicates the amount of capital, earnings or liquidity we are willing to put at risk to achieve our strategic objectives and business plans, consistent with applicable regulatory requirements. It also 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.

Our overall capacity to take risk is limited. Accordingly, we prioritize the risks we take in order to maintain a strong and flexible financial position so we can weather challenging economic times and take advantage of organic growth opportunities while complying with all applicable regulatory requirements. Therefore, we set objectives and targets for capital and liquidity that permit us to continue to operate in a safe and sound manner at all times, including during periods of stress. We also maintain strong operational risk management and operational resiliency capabilities so we can meet the expectations of our customers and clients through a range of operating conditions.

Our lines of business operate with risk limits that align with the Corporation’s risk appetite. Management is responsible for tracking and reporting performance measurements as well as any breaches or exceptions to risk appetite limits. The Board, and its committees when appropriate, oversee financial performance, execution of the strategic and financial operating plans, adherence to risk appetite limits and the adequacy of internal controls.

For a more detailed discussion of our risk management activities, see the discussion below and pages 48 through 83.

Risk Management Governance

The Risk Framework describes delegations of authority whereby the Board and its committees may delegate authority to management-level committees or executive officers. Such delegations may authorize certain decision-making and approval functions, which may be evidenced in documents such as committee charters, job descriptions, meeting minutes and resolutions.

The chart below illustrates the interrelationship among the Board, Board committees and management committees that have the majority of risk oversight responsibilities for the Corporation.

45 Bank of America

Board of Directors and Board Committees

The Board is composed of 14 directors, all but one of whom are independent. The Board oversees management’s establishment of an effective Risk Framework and oversees compliance with safe and sound banking practices. In addition, the Board and its committees make inquiries of, and receive reports from senior management on, risk-related matters to assess scope or resource limitations that could impede the ability of Global Risk Management (GRM) and/or Corporate Audit to execute their responsibilities. The Audit and Enterprise Risk Committees discussed below have the principal responsibility for enterprise-wide oversight of our risk management activities. Through these responsibilities, the Board and applicable committees are provided with information on our risk profile and oversee senior management addressing key risks we face. Other Board committees, as described below, provide additional oversight of specific risks.

The Audit and Enterprise Risk Committees regularly report to the Board on risk-related matters within the committees’ responsibilities, which are intended to collectively provide the Board with integrated insight about the Corporation’s risk profile and our management of enterprise-wide risks.

Audit Committee

The Audit Committee provides risk assessment and management oversight for compliance risk pursuant to New York Stock Exchange listing standards and regularly receives updates from management on compliance risk-related matters. In addition, the Audit Committee oversees the qualifications, performance and independence of the Independent Registered Public Accounting Firm, the performance of our Corporate Audit function, the integrity of our consolidated financial statements, our compliance with legal and regulatory requirements, and makes inquiries of the Chief Audit Executive (CAE) or other senior management to determine whether there are scope or resource limitations that impede the ability of Corporate Audit to execute its responsibilities.

Enterprise Risk Committee

The ERC oversees the Corporation’s Risk Framework, risk appetite and senior management’s identification, measurement, monitoring and control of key risks facing the Corporation. The

ERC regularly receives risk management updates from management on key risks and selected risk topics, including emerging risks. The ERC also periodically reviews the adequacy of the resources of the Corporation’s independent GRM function. The ERC may consult with other Board committees on risk-related matters such as the Audit Committee for compliance risks.

Other Board Committees

Our Corporate Governance Committee oversees corporate governance matters, including periodically reviewing and making recommendations to the Board on Board succession planning and composition matters, conducting an annual review of the Board’s performance and leading itself and the Board’s other committees in an annual assessment of their performance. The committee also oversees sustainability matters (other than human capital matters), including the Corporation’s public policy engagement, sustainability initiatives, charitable contributions, and community reinvestment activities and performance.

Our Compensation and Human Capital Committee oversees establishing, maintaining and administering our compensation programs and employee benefit plans, including approving and recommending our Chief Executive Officer’s (CEO) compensation to our Board for further approval by all independent directors; reviewing and approving our executive officers’ compensation, as well as compensation for non-management directors; and reviewing certain other human capital management topics.

Management Committees

Management committees receive their authority from the Board, a Board committee, or another management committee. Our primary management risk committee is the MRC. Subject to Board oversight, the MRC is responsible for management oversight of key risks facing the Corporation, including an integrated evaluation of risk, earnings, capital and liquidity.

Executive Officers

Executive officers lead various functions representing the functional roles. Authority for functional roles may be delegated to executive officers from the Board, Board committees or management-level committees. Executive officers, in turn, may further delegate responsibilities, as appropriate, to management-level committees, management routines or

Bank of America 46

individuals. Executive officers review our activities for consistency with our Risk Framework, risk appetite, and applicable strategic, capital and financial operating plans, as well as applicable policies and standards. Executive officers and other employees make decisions individually on a day-to-day basis, consistent with the authority they have been delegated. Executive officers and other employees may also serve on committees and participate in committee decisions.

Lines of Defense

We have clear ownership and accountability for managing risk across three lines of defense: Front Line Units (FLUs), GRM and Corporate Audit. We also have control functions outside of FLUs and GRM (e.g., Legal and Public Policy, and Chief People Organization). The three lines of defense are integrated into our management-level governance structure. Each of these functional roles is further described in this section.

Front Line Units and Control Functions

FLUs, which include the business segments and underlying businesses, as well as the organizations that support technology and operations for the Corporation, are responsible for appropriately assessing and effectively managing all of the risks associated with their activities. Control functions provide guidance and subject matter expertise on day-to-day activities affecting the Corporation, as well as by overseeing and managing risks that emanate from their own respective activities.

Global Risk Management

GRM is part of our control functions and operates as our independent risk management function. GRM, led by the Chief Risk Officer (CRO), is responsible for independently assessing and overseeing risks within FLUs and other control functions. GRM establishes written enterprise policies and procedures outlining how aggregate risks are identified, measured, monitored and controlled.

The CRO has the stature, authority and independence needed to develop and implement a meaningful risk management framework and practices to guide the Corporation in managing risk. The CRO has unrestricted access to the Board and reports directly to both the ERC and the CEO. GRM is organized into horizontal risk teams that cover a specific risk area and vertical CRO teams that cover a particular FLU or control function. These teams work collaboratively in executing their respective duties.

Corporate Audit

Corporate Audit and the CAE maintain their independence from the FLUs, GRM and other control functions by reporting directly to the Audit Committee. The CAE administratively reports to the CEO. Corporate Audit provides independent assessment and validation through testing of key processes and controls across the Corporation. Corporate Audit includes Credit Review, which provides an independent assessment of credit lending decisions and the effectiveness of credit processes across the Corporation’s credit platform through examinations and monitoring.

Risk Management Processes

The Risk Framework requires that strong risk management practices are integrated in key strategic, capital and financial planning processes and in day-to-day business processes across the Corporation, thereby ensuring risks are appropriately considered, evaluated and responded to in a timely manner. We employ an effective risk management process, referred to as

Identify, Measure, Monitor and Control, as part of our daily activities.

Identify – To be effectively managed, risks must be proactively identified and well understood. Proper risk identification focuses on recognizing and understanding key risks inherent in our business activities or key risks that may arise from external factors. Each employee is expected to identify and escalate risks promptly. Risk identification is an ongoing process that incorporates input from FLUs and control functions. It is designed to be forward-looking and to capture relevant risk factors across all of our lines of business.

Measure – Once a risk is identified, it must be prioritized and accurately measured through a systematic process including qualitative statements and quantitative limits. Risk is measured at various levels, including, but not limited to, risk type, FLU and legal entity, and also on an aggregate basis. This risk measurement process helps to capture changes in our risk profile due to changes in strategic direction, concentrations, portfolio quality and the overall economic environment. Senior management considers how risk exposures might evolve under a variety of stress scenarios.

Monitor – We monitor risk levels regularly to track adherence to risk appetite, policies and standards. We also regularly update risk assessments and review risk exposures. Through our monitoring, we know our level of risk relative to limits and can take action in a timely manner. We also know when risk limits are breached and have processes to appropriately report and escalate exceptions. This includes timely requests for approval to managers and alerts to executive management, management-level committees or the Board (directly or through an appropriate committee).

Control – We establish and communicate risk limits and controls through policies, standards, procedures and processes. The limits and controls can be adjusted by senior management or the Board when conditions or risk tolerances warrant. These limits may be absolute (e.g., loan amount, trading volume, operational loss) or relative (e.g., percentage of loan book in higher-risk categories). Our FLUs are held accountable for performing within the established limits.

The formal processes used to manage risk represent a part of our overall risk management process. We instill a strong and comprehensive culture of managing risk well through communications, training, policies, procedures and organizational roles and responsibilities. Establishing a culture reflective of our purpose to help make our customers’ financial lives better and delivering on Responsible Growth is also critical to effective risk management. We are committed to the highest principles of ethical and professional conduct. Conduct risk is the risk of improper actions, behaviors or practices by the Corporation, its employees or representatives that are illegal, unethical and/or contrary to our core values that could result in harm to the Corporation, our shareholders or our customers, damage the integrity of the financial markets, or negatively impact our reputation. We have established protocols and structures so that conduct risk is governed and reported across the Corporation appropriately. All employees are held accountable for adhering to the Code of Conduct, operating within our risk appetite and managing risk in their daily business activities. In addition, our performance management and compensation practices encourage responsible risk-taking that is consistent with our Risk Framework and risk appetite.

47 Bank of America

Corporation-wide Stress Testing

Integral to our Capital Planning, Financial Planning and Strategic Planning processes, we conduct capital scenario management and stress forecasting on a regular basis to better understand balance sheet, earnings and capital sensitivities to a wide range of economic and business scenarios, including economic and market conditions that are more severe than anticipated. These stress forecasts provide an understanding of the potential impacts from our risk profile on the balance sheet, earnings and capital, and serve as a key component of our capital and risk management practices. The intent of stress testing is to develop a comprehensive understanding of potential impacts of on- and off-balance sheet risks at the Corporation and certain subsidiaries and how they impact financial resiliency, which provides confidence to management, regulators and our investors.

Contingency Planning

We have developed and maintain comprehensive contingency plans that are designed to prepare us in advance to respond in the event of potential adverse economic, operational, financial or market stress conditions. These contingency plans include our Financial Contingency and Recovery Plan, which provides monitoring, escalation, actions and routines designed to enable us to increase capital and/or liquidity, access funding sources and reduce risk through consideration of potential options that include asset sales, business sales, capital or debt issuances, and other risk reducing strategies at various levels of capital or liquidity depletion during a period of stress. We also maintain a Resolution Plan to limit adverse systemic impacts that could be associated with a potential resolution of Bank of America.

Strategic Risk Management

Strategic risk is embedded in every business and is one of the major risk categories along with credit, market, liquidity, compliance, operational and reputational risks. This risk results from incorrect assumptions about external or internal factors, inappropriate business plans, ineffective business strategy execution, or failure to respond in a timely manner to changes in the regulatory, macroeconomic or competitive environments in the geographic locations in which we operate (e.g., competitor actions, changing customer preferences, product obsolescence and technology developments).

An aspect of strategic risk is the risk that the Corporation’s capital levels are not adequate to meet minimum regulatory requirements and support execution of business activities or absorb losses from risks during normal or adverse economic and market conditions. As such, capital risk is managed in parallel to strategic risk.

We manage strategic risk through the Strategic Risk Enterprise Policy and integration into the strategic planning process, among other activities. Our strategic plan is consistent with our risk appetite, capital plan and liquidity requirements, and specifically addresses strategic risks impacting each business.

On an annual basis, the Board reviews and approves the strategic plan, capital plan, financial operating plan and Risk Appetite Statement. With oversight by the Board, senior management directs the lines of business to execute our strategic plan consistent with our core operating principles and risk appetite. The executive management team monitors business performance throughout the year and provides the Board with regular progress reports on whether strategic objectives and timelines are being met, including reports on strategic risks and if additional or alternative actions need to be

considered or implemented. The regular executive reviews focus on assessing forecasted earnings and returns on capital, the current risk profile, current capital and liquidity positions and related requirements, staffing levels and changes required to support the strategic plan, stress testing results, and other qualitative factors such as market growth rates and peer analysis.

Significant strategic actions, such as capital actions, material acquisitions or divestitures, and resolution plans are reviewed and approved by the Board or delegate. At the business level, processes are in place to discuss the strategic risk implications of new, expanded or modified businesses, products or services, regulatory change and other strategic initiatives, and to provide formal review and approval where required. With oversight by the Board and the ERC, executive management performs similar analyses throughout the year, and evaluates changes to the financial forecast or the risk, capital or liquidity positions as deemed appropriate to balance and optimize achieving the targeted risk appetite, shareholder returns and maintaining the targeted financial strength. Proprietary models are used to measure the capital requirements for credit, country, market, operational and strategic risks. The allocated capital assigned to each business is based on its unique risk profile. With oversight by the Board, executive management assesses the risk-adjusted returns of each business in approving strategic and financial operating plans. The businesses use allocated capital to define business strategies, and price products and transactions.

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. Additionally, we seek to maintain safety and soundness at all times, even under adverse scenarios, take advantage of organic growth opportunities, meet obligations to creditors and counterparties, maintain ready access to financial markets, continue to serve as a credit intermediary, remain a source of strength for our subsidiaries, and satisfy current and future regulatory capital requirements. Capital management is integrated into our risk and governance processes, as capital is a key consideration in the development of our strategic plan, risk appetite and risk limits.

We conduct an Internal Capital Adequacy Assessment Process (ICAAP) on a periodic basis. The ICAAP is a forward-looking assessment of our projected capital needs and resources, incorporating earnings, balance sheet and risk forecasts under baseline and adverse economic and market conditions. We utilize periodic stress tests to assess the potential impacts to our balance sheet, earnings, regulatory capital and liquidity under a variety of stress scenarios. We perform qualitative risk assessments to identify and assess material risks not fully captured in our forecasts or stress tests. We assess the potential capital impacts of proposed changes to regulatory capital requirements. Management assesses ICAAP results and provides documented quarterly assessments of the adequacy of our capital guidelines and capital position to the Board or its committees.

We periodically review capital allocated to our businesses and allocate capital annually during the strategic and capital planning processes. For more information, see Business Segment Operations on page 36.

Bank of America 48

CCAR and Capital Planning

The Board of Governors of the Federal Reserve System (Federal Reserve) requires large BHCs to submit a capital plan and planned capital actions on an annual basis, consistent with the rules governing capital planning and the stress capital buffer (SCB) requirement, which include supervisory stress testing by the Federal Reserve. Based on the results of our 2025 Comprehensive Capital Analysis and Review (CCAR) stress test under the current regulatory framework, our SCB is 2.5 percent, resulting in a Common equity tier 1 (CET1) minimum requirement of 10.0 percent, effective October 1, 2025. At December 31, 2025, the Corporation’s CET1 capital ratio was 11.4 percent under the Standardized approach. As part of the Federal Reserve’s release of 2026 hypothetical stress test scenarios, the Federal Reserve announced the Corporation’s SCB will remain 2.5 percent through September 30, 2027. For more information, see Regulatory Developments in this section.

On July 24, 2024, the Corporation announced the Board’s authorization of a $25 billion common stock repurchase program, effective August 1, 2024 (2024 Repurchase Program), which replaced the Corporation’s previous repurchase program that expired on August 1, 2024. In addition, on July 23, 2025, the Corporation announced the Board’s authorization of a $40 billion common stock repurchase program, effective August 1, 2025, which replaced the 2024 Repurchase Program that expired on the same date. Pursuant to these Board-authorized repurchase programs, during 2025, the Corporation repurchased $21.4 billion of common stock. For more information, see Part II, Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 24.

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 2025, the Corporation paid common stock dividends of $8.1 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 December 31, 2025, the Corporation’s binding ratio was the Total 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 global systemically important bank (G-SIB) surcharge. The buffers and surcharge must be comprised solely of CET1 capital. For the period from October 1, 2024 through September 30, 2025, the Corporation’s minimum CET1 ratio requirements were 10.7 percent under the Standardized approach and 10.0 percent under the Advanced approaches. Effective October 1, 2025, the Corporation’s minimum CET1 requirement was 10.0 percent under both the Standardized approach and 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. 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. 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. At December 31, 2025, the Corporation’s CET1 capital ratio of 11.4 percent under the Standardized approach exceeded its minimum CET1 capital ratio requirement of 10.0 percent.

At December 31, 2025, the Corporation was also required to maintain a minimum supplementary leverage ratio (SLR) of 3.0 percent plus a leverage buffer of 2.0 percent in order to avoid certain restrictions on capital distributions and discretionary bonus payments to executive officers. Our insured depository institution subsidiaries were required to maintain a minimum SLR of 6.0 percent to be considered well capitalized under the PCA framework. At December 31, 2025, both the Corporation and its insured depository institution subsidiaries exceeded their minimum supplementary leverage requirements. Effective January 1, 2026, the minimum SLR requirement for the Corporation and its insured depository institutions is 3.75 percent. For more information, see Regulatory Developments in this section. The numerator of the SLR is quarter-end Basel 3 Tier 1 capital. The denominator is total leverage exposure based on the daily average of the sum of on-balance sheet exposures less permitted deductions and the simple average of certain off-balance sheet exposures, as of the end of each month in a quarter.

Capital Composition and Ratios

Effective in the fourth quarter of 2025, the Corporation elected to change its accounting methods related to certain tax-related equity investments and applied those changes retrospectively through a cumulative adjustment to retained earnings. For more information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements. Under applicable bank regulatory rules, the Corporation is not required to, and accordingly, did not revise regulatory capital information as of December 31, 2024.

49 Bank of America

Table 10 presents Bank of America Corporation’s capital ratios and related information in accordance with Basel 3 Standardized and Advanced approaches as measured at December 31, 2025 and 2024. For the periods presented herein, the Corporation met the definition of well capitalized under current regulatory requirements.

Table 10

Bank of America Corporation Regulatory Capital under Basel 3

Standardized

Approach (1, 2)

Advanced

Approaches (1, 2)

Regulatory

Minimum (3)

(Dollars in millions, except as noted)

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 (4)

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) (5)

$

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 

December 31, 2024

Risk-based capital metrics:

Common equity tier 1 capital

$

201,083 

$

201,083 

Tier 1 capital

223,458 

223,458 

Total capital (4)

255,363 

244,809 

Risk-weighted assets (in billions)

1,696 

1,490 

Common equity tier 1 capital ratio

11.9 

%

13.5 

%

10.7 

%

Tier 1 capital ratio

13.2 

15.0 

12.2 

Total capital ratio

15.1 

16.4 

14.2 

Leverage-based metrics:

Adjusted quarterly average assets (in billions) (5)

$

3,240 

$

3,240 

Tier 1 leverage ratio

6.9 

%

6.9 

%

4.0 

Supplementary leverage exposure (in billions)

$

3,818 

Supplementary leverage ratio

5.9 

%

5.0 

(1)As of January 1, 2025, current expected credit losses (CECL) transition provision’s impact was fully phased-in. Capital ratios as of December 31, 2024 were calculated using the regulatory capital rule that allowed a five-year transition period related to the adoption of the CECL accounting standard on January 1, 2020.

(2)Effective in the fourth quarter of 2025, the Corporation elected to change its accounting methods for certain tax-related equity investments and applied those changes retrospectively through cumulative adjustment to retained earnings. Under applicable bank regulatory rules, the Corporation is not required to revise previously-filed regulatory capital ratios and, accordingly, did not revise regulatory capital information as of December 31, 2024.

(3)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 December 31, 2025 and 3.2 percent at December 31, 2024. The countercyclical capital buffer was zero for both periods. The SLR regulatory minimum includes a leverage buffer of 2.0 percent.

(4)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.

(5)Reflects total average assets adjusted for certain Tier 1 capital deductions.

At December 31, 2025, CET1 capital was $201.4 billion, an increase of $327 million from December 31, 2024, primarily due to earnings, largely offset by capital distributions and, to a lesser extent, the impact of the tax-related equity investments accounting changes. Tier 1 capital increased $3.9 billion driven by the same factors as CET1 capital as well as preferred stock issuances. Total capital under the Standardized approach increased $5.9 billion driven by the same factors as Tier 1

capital, as well as subordinated debt issuances and an increase 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 December 31, 2025, increased $77.2 billion during 2025 to $1,773 billion primarily driven by lending activity in GWIM, Global Banking and Global Markets. Supplementary leverage exposure at December 31, 2025 increased $167.7 billion primarily driven by increased activity in Global Markets.

Bank of America 50

Table 11 shows the capital composition at December 31, 2025 and 2024.

Table 11

Capital Composition under Basel 3

December 31

(Dollars in millions)

2025

2024

Total common shareholders’ equity

$

277,251 

$

270,804 

Impact of change in accounting method (1)

— 

1,596 

CECL transitional amount (2)

— 

627 

Goodwill, net of related deferred tax liabilities

(68,651)

(68,649)

Deferred tax assets arising from net operating loss and tax credit carryforwards

(8,761)

(8,097)

Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities

(1,386)

(1,440)

Defined benefit pension plan net assets

(868)

(786)

Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness,

 net-of-tax

1,825 

1,491 

Accumulated net (gain) loss on certain cash flow hedges (3)

2,020 

5,629 

Other

(20)

(92)

Common equity tier 1 capital

201,410 

201,083 

Qualifying preferred stock, net of issuance cost

25,991 

22,391 

Other

(19)

(16)

Tier 1 capital

227,382 

223,458 

Tier 2 capital instruments

19,627 

18,592 

Qualifying allowance for credit losses (2)

14,431 

13,558 

Other

(208)

(245)

Total capital under the Standardized approach

261,232 

255,363 

Adjustment in qualifying allowance for credit losses under the Advanced approaches (2)

(10,885)

(10,554)

Total capital under the Advanced approaches

$

250,347 

$

244,809 

(1)Represents the decrease in retained earnings due to the Corporation’s election to change its accounting methods for certain tax-related equity investments in the fourth quarter of 2025. Under applicable bank regulatory rules, the Corporation is not required to revise previously-filed regulatory capital ratios and, accordingly, did not revise regulatory capital information as of December 31, 2024.

(2)The qualifying allowance for credit losses under the Standardized approach and under the Advanced approaches include the impact of transition provisions related to the CECL accounting standard. As of January 1, 2025, CECL transition provision’s impact was fully phased-in. December 31, 2024 includes 25 percent of the CECL transition provision’s impact as of December 31, 2021.

(3)Includes amounts in accumulated OCI related to the hedging of items that are not recognized at fair value on the Consolidated Balance Sheet.

Table 12 shows the components of RWA as measured under Basel 3 at December 31, 2025 and 2024.

Table 12

Risk-weighted Assets under Basel 3

Standardized Approach

Advanced Approaches

Standardized Approach

Advanced Approaches

December 31

(Dollars in billions)

2025

2024

Credit risk

$

1,694 

$

1,087 

$

1,623 

$

1,015 

Market risk

79 

79 

73 

73 

Operational risk

n/a

357 

n/a

359 

Risks related to credit valuation adjustments

n/a

47 

n/a

43 

Total risk-weighted assets (1)

$

1,773 

$

1,570 

$

1,696 

$

1,490 

(1)Effective October 1, 2025, the Corporation elected to change its accounting methods for certain tax-related equity investments and applied those changes retrospectively. Under applicable bank regulatory rules, the Corporation is not required to revise previously-filed regulatory capital ratios and, accordingly, did not revise regulatory capital information as of December 31, 2024.

n/a = not applicable

51 Bank of America

Bank of America, N.A. Regulatory Capital

Table 13 presents regulatory capital information for BANA in accordance with Basel 3 Standardized and Advanced approaches as measured at December 31, 2025 and 2024. BANA met the definition of well capitalized under the PCA framework for both periods.

Table 13

Bank of America, N.A. Regulatory Capital under Basel 3

Standardized

Approach (1, 2)

Advanced

Approaches (1, 2)

Regulatory

Minimum (3)

(Dollars in millions, except as noted)

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 (4)

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) (5)

$

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 

December 31, 2024

Risk-based capital metrics:

Common equity tier 1 capital

$

194,341 

$

194,341 

Tier 1 capital

194,341 

194,341 

Total capital (4)

209,256 

198,923 

Risk-weighted assets (in billions)

1,444 

1,151 

Common equity tier 1 capital ratio

13.5 

%

16.9 

%

7.0 

%

Tier 1 capital ratio

13.5 

16.9 

8.5 

Total capital ratio

14.5 

17.3 

10.5 

Leverage-based metrics:

Adjusted quarterly average assets (in billions) (5)

$

2,546 

$

2,546 

Tier 1 leverage ratio

7.6 

%

7.6 

%

5.0 

Supplementary leverage exposure (in billions)

$

3,015 

Supplementary leverage ratio

6.4 

%

6.0 

(1)As of January 1, 2025, CECL transition provision’s impact was fully phased-in. Capital ratios as of December 31, 2024 were calculated using the regulatory capital rule that allowed a five-year transition period related to the adoption of the CECL accounting standard on January 1, 2020.

(2)Effective in the fourth quarter of 2025, the Corporation elected to change its accounting methods for certain tax-related equity investments and applied those changes retrospectively through cumulative adjustment to retained earnings. Under applicable bank regulatory rules, the Corporation is not required to revise previously-filed regulatory capital ratios and, accordingly, did not revise regulatory capital information as of December 31, 2024.

(3)Risk-based capital regulatory minimums at both December 31, 2025 and 2024 are the minimum ratios under Basel 3 including a capital conservation buffer of 2.5 percent. The regulatory minimums for the leverage ratios as of both period ends are the percent required to be considered well capitalized under the PCA framework.

(4)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.

(5)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 14 presents the Corporation's TLAC and long-term debt ratios and related information as of December 31, 2025 and 2024.

Bank of America 52

Table 14

Bank of America Corporation Total Loss-Absorbing Capacity and Long-Term Debt

TLAC (1)

Regulatory Minimum (2)

Long-term

Debt

Regulatory Minimum (3)

(Dollars in millions)

December 31, 2025

Total eligible balance

$

466,728 

$

225,518 

Percentage of risk-weighted assets (4)

26.3 

%

22.0 

%

12.7 

%

9.0 

%

Percentage of supplementary leverage exposure

11.7 

9.5 

5.7 

4.5 

December 31, 2024

Total eligible balance

$

459,857 

$

220,666 

Percentage of risk-weighted assets (4)

27.1 

%

22.0 

%

13.0 

%

9.0 

%

Percentage of supplementary leverage exposure

12.0 

9.5 

5.8 

4.5 

(1)As of January 1, 2025, CECL transition provision’s impact was fully phased-in. TLAC ratios as of December 31, 2024 were calculated using the regulatory capital rule that allowed a five-year transition period related to the adoption of the CECL accounting standard on January 1, 2020.

(2)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 2.0 percent TLAC leverage buffer. The TLAC RWA and leverage buffers must be comprised solely of CET1 capital and Tier 1 capital, respectively.

(3)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 4.5 percent.

(4)The approach that yields the higher RWA is used to calculate TLAC and long-term debt ratios, which was the Standardized approach as of December 31, 2025 and 2024.

Regulatory Developments

On November 25, 2025, the Federal Reserve, Office of the Comptroller of the Currency and FDIC issued a final rule that modified enhanced SLR requirements for bank holding companies and their insured depository institution subsidiaries, with corresponding revisions to TLAC and long-term debt requirements. Under the final rule, static buffer requirements have been replaced with a dynamic buffer requirement equal to 50 percent of the G-SIB’s Method 1 surcharge, with the buffer capped at one percent for insured depository institutions. The Corporation elected to early adopt the final rule as of January 1, 2026, which decreased the regulatory minimum SLR requirement to 3.75 percent from 5.0 percent for the Corporation, and to 3.75 percent from 6.0 percent for BANA as of the same date. For more information on the Corporation’s Method 1 and Method 2 G-SIB surcharge, see Minimum Capital Requirements in this section.

On October 24, 2025, the Federal Reserve issued two notices of proposed rulemaking (NPRs) related to its annual stress test. The first NPR requested comment on the hypothetical scenarios that will be used in the 2026 supervisory stress test. The Federal Reserve released these scenarios on February 4, 2026. The second NPR requests comment on the models the Federal Reserve uses to conduct the supervisory stress test. This NPR also outlines proposed changes to the broader stress testing framework and codifies an enhanced disclosure process under which the Federal Reserve would annually publish and invite public comment on stress test scenarios, models and material changes to those models.

On April 17, 2025, the Federal Reserve issued an NPR to modify the capital plan rule and SCB requirements. Under this NPR, results from the two most recent annual supervisory stress tests would be averaged to determine the Corporation’s SCB requirement. In addition, the annual effective date of the SCB requirement would change from October 1st of the current year to January 1st of the following year, providing banks with additional time to comply with their new 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 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. BofAS is also required to hold a certain percentage of its customers' and affiliates' risk-based margin in order to meet its CFTC minimum net capital requirement. At December 31, 2025, BofAS had tentative net capital of $28.2 billion. BofAS also had regulatory net capital of $23.0 billion, which exceeded the minimum requirement of $5.1 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 December 31, 2025, MLPF&S' regulatory net capital was $8.1 billion, which exceeded the minimum requirement of $175 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 December 31, 2025, MLI’s capital resources were $33.4 billion, which exceeded the minimum Pillar 1 requirement of $13.2 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 December 31, 2025, BofASE's capital resources were $11.8 billion, which exceeded the minimum Pillar 1 requirement of $4.0 billion.

53 Bank of America

In addition, MLI and BofASE remained conditionally registered with the SEC as security-based swap dealers, and maintained net liquid assets at December 31, 2025 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 December 31, 2025.

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 allowed us to effectively manage market fluctuations from the elevated interest rate environment, inflationary pressures and changes in the macroeconomic environment.

We define liquidity as readily available assets, limited to cash and high-quality, liquid, unencumbered securities that we 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. GRM provides oversight of liquidity management across the Corporation, including FLUs 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.

The Board, its risk committee and various management committees oversee the Corporation’s liquidity activities and risk governance. The Board and/or ERC approve our liquidity risk policy, Financial Contingency and Recovery Plan and liquidity risk appetite limits. Management committees responsible for liquidity governance include the Corporation’s Management Risk Committee, Asset and Liability Governance Committee, Liquidity Risk Committee and Asset and Liability Management Investment Committee. For more information, see Managing Risk on page 88. Under this governance framework, we developed certain funding and liquidity risk management practices which include: maintaining liquidity at Bank of America Corporation (Parent) and selected subsidiaries, including our bank subsidiaries and

other regulated entities; determining what amounts of liquidity are appropriate for these entities based on analysis of debt maturities and other potential cash outflows, including those that we may experience during stressed market conditions; diversifying funding sources, considering our asset profile and legal entity structure; and performing contingency planning.

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.

In consideration for the transfer of assets, NB Holdings issued a subordinated note to the Parent in a principal amount equal to the value of the transferred assets. The aggregate principal amount of the note will increase by the amount of any future asset transfers. NB Holdings also provided the Parent with a committed line of credit that allows the Parent to draw funds necessary to service near-term cash needs. 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. These arrangements include provisions to terminate the line of credit, forgive the subordinated note and require the Parent to transfer its remaining financial assets to NB Holdings if our projected liquidity resources deteriorate so severely that resolution of the Parent becomes imminent.

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.

Bank of America 54

Table 15 presents average GLS for the three months ended December 31, 2025 and 2024.

Table 15

Average Global Liquidity Sources

Three Months Ended

December 31

(Dollars in billions)

December 31

2025

December 31

2024

Bank entities

$

789 

$

777 

Nonbank and other entities (1)

186 

176 

Total Average Global Liquidity Sources

$

975 

$

953 

(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 FHLBs and the Federal Reserve Discount Window. The cash we could have obtained by borrowing against this pool of specifically-identified eligible assets was $343 billion and $328 billion at December 31, 2025 and 2024. 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 16 presents the composition of average GLS for the three months ended December 31, 2025 and 2024.

Table 16

Average Global Liquidity Sources Composition

Three Months Ended

December 31

(Dollars in billions)

December 31

2025

December 31

2024

Cash on deposit

$

227 

$

315 

U.S. Treasury securities

371 

313 

U.S. agency securities, mortgage-backed securities, and other investment-grade securities

336 

296 

Non-U.S. government securities

41 

29 

Total Average Global Liquidity Sources

$

975 

$

953 

Our GLS are substantially the same in composition to 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

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 $667 billion and $623 billion for the three months ended December 31, 2025 and 2024. For the same periods, the average consolidated LCR was 112 percent and 113 percent. Our LCR fluctuates 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. The scenarios we consider and utilize incorporate market-wide and Corporation-specific events, including potential credit rating downgrades for the Parent and our subsidiaries, and more severe events including potential resolution scenarios. The scenarios are based on our historical experience, experience of distressed and failed financial institutions, regulatory guidance, and both expected and unexpected future events.

The types of potential contractual and contingent cash outflows we consider in our scenarios may include, but are not limited to, upcoming contractual maturities of unsecured debt and reductions in new debt issuances; diminished access to secured financing markets; potential deposit withdrawals; increased draws on loan commitments, liquidity facilities and letters of credit; additional collateral that counterparties could call if our credit ratings were downgraded; collateral and margin requirements arising from market value changes; and potential liquidity required to maintain businesses and finance customer activities. Changes in certain market factors, including, but not limited to, credit rating downgrades, could negatively impact potential contractual and contingent outflows and the related financial instruments, and in some cases these impacts could be material to our financial results.

We consider all sources of funds that we could access during each stress scenario and focus particularly on matching available sources with corresponding liquidity requirements by legal entity. We also use the stress modeling results to manage our asset and liability profile and establish limits and guidelines on certain funding sources and businesses.

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 both the three months ended September 30, 2025 and December 31, 2025, the average consolidated NSFR was 120 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.

55 Bank of America

The primary benefits of our centralized funding approach include greater control, reduced funding costs, wider name recognition by investors and greater flexibility to meet the variable funding requirements of subsidiaries. Where regulations, time zone differences or other business considerations make Parent funding impractical, certain other subsidiaries may issue their own debt.

We fund a substantial portion of our lending activities through our deposits, which were $2.02 trillion and $1.97 trillion at December 31, 2025 and 2024. Deposits are primarily generated by our Consumer Banking, GWIM and Global Banking segments. These deposits are diversified by clients, product type and geography, and the majority of our U.S. deposits are insured by the FDIC.

At December 31, 2025, 47 percent of our deposits were in Consumer Banking, 14 percent in GWIM and 32 percent in Global Banking. As of the same period, approximately 70 percent of consumer and small business deposits and 81 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 December 31, 2025 and 2024, 26 percent and 27 percent of our deposits were noninterest bearing and included operating accounts of our consumer and commercial clients. During the three months ended December 31, 2025 and 2024, rates paid on deposits were 55 bps and 64 bps in Consumer Banking, 221 bps and 275 bps in GWIM, and 252 bps and 297 bps in Global Banking. For information on annual rates paid on consolidated deposit balances, see Table 6 on page 34.

We consider a substantial portion of our deposit base to be a stable, low-cost and consistent source of funding. We believe this deposit funding is generally less sensitive to interest rate

changes, market volatility or changes in our credit ratings than wholesale funding sources. Our lending activities may also be financed through secured borrowings, including credit card securitizations and securitizations with government-sponsored enterprises (GSE), the Federal Housing Administration (FHA) and private-label investors, as well as FHLB loans.

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. We believe funding these activities in the secured financing markets is more cost-efficient and less sensitive to changes in our credit ratings than unsecured financing. Repurchase agreements are generally short-term and often overnight. Disruptions in secured financing markets for financial institutions have occurred in prior market cycles, which resulted in adverse changes in terms or significant reductions in the availability of such financing. We manage the liquidity risks arising from secured funding by sourcing funding globally from a diverse group of counterparties, providing a range of securities collateral and pursuing longer durations, when appropriate. For more information on secured financing agreements, see Note 10 – Securities Financing Agreements, Short-term Borrowings, Collateral and Restricted Cash to the Consolidated Financial Statements.

Long-term Debt

The Corporation’s long-term debt largely consists of senior, senior structured, subordinated and junior subordinated notes issued by the Parent and/or BANA. The following table provides the carrying value of long-term debt at December 31, 2025.

Table 17

Long-term Debt

(Dollars in millions)

December 31, 2025

Bank of America Corporation

Senior notes

$

187,569 

Senior structured notes

20,369 

Subordinated notes

25,428 

Junior subordinated notes

750 

Total Bank of America Corporation (1)

234,116 

Bank of America, N.A.

Senior notes (1)

16,872 

Subordinated notes (1)

1,403 

Advances from Federal Home Loan Banks

4,175 

Securitizations and other bank VIEs (2)

6,442 

Other

600 

Total Bank of America, N.A.

29,492 

Other debt

Structured liabilities

53,803 

Nonbank VIEs (2)

405 

Total other debt

54,208 

Total

$

317,816 

(1)As of December 31, 2025, the par values of Bank of America’s senior notes, senior structured notes, subordinated notes and junior subordinated notes were $201.5 billion, $23.5 billion, $25.2 billion and $1.3 billion, respectively. As of December 31, 2025, the par values of BANA’s senior notes and subordinated notes were $16.9 billion and $1.2 billion. The par value of long-term debt is the nominal or face value of each instrument as of December 31, 2025, and except for senior structured notes, represents the amount owed at the maturity date. The senior structured notes include zero coupon notes, whose par value increases through maturity and have a current par of $10.0 billion, compared to $28.1 billion owed at maturity. The par value of long-term debt is used by regulators and rating agencies to calculate certain resolution metrics.

(2)Represents liabilities of consolidated variable interest entities (VIEs) included in long-term debt on the Consolidated Balance Sheet.

Total long-term debt increased $34.5 billion to $317.8 billion during 2025 primarily due to debt issuances and valuation adjustments, partially offset by maturities and redemptions. We may, from time to time, purchase 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.

At December 31, 2025, Bank of America Corporation's senior notes of $187.6 billion included $177.8 billion of outstanding notes, substantially all of which are both TLAC eligible and callable at least one year before their stated maturities. Of these senior notes, $24.5 billion will be callable and become TLAC ineligible during 2026, and $27.4 billion, $28.1 billion, $8.4 billion and $21.7 billion will do so during each of 2027 through 2030, respectively, and $67.7 billion thereafter.

Bank of America 56

We issue long-term unsecured debt in a variety of maturities and currencies to achieve cost-efficient funding and to maintain an appropriate maturity profile. While the cost and availability of unsecured funding may be negatively impacted by general market conditions or by matters specific to the financial services industry or the Corporation, we seek to mitigate refinancing risk by actively managing the amount of our borrowings that we anticipate will mature within any month or quarter. We may issue unsecured debt in the form of structured notes for client purposes, certain of which qualify as TLAC-eligible debt. During 2025, we issued $44.4 billion of structured notes, which are debt obligations that pay investors returns linked to other debt or equity securities, indices, currencies or commodities. We typically hedge the returns we are obligated to pay on these liabilities with derivatives and/or investments in the underlying instruments, so that from a funding perspective, the cost is similar to our other 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.

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 121.

Uninsured Deposits

The FDIC insures the Corporation’s U.S. deposits up to $250,000 per depositor, per insured bank for each account ownership category, and various country-specific funds insure non-U.S. deposits up to specified limits. Deposits that exceed insurance limits are uninsured. At December 31, 2025, the Corporation’s deposits totaled $2.02 trillion, of which total estimated uninsured U.S. and non-U.S. deposits were $723.0 billion and $134.9 billion. At December 31, 2024, the Corporation’s deposits totaled $1.97 trillion, of which total estimated uninsured U.S. and non-U.S. deposits were $646.2 billion and $124.9 billion. Deposit balances exclude $11.9 billion and $16.9 billion of collateral received on certain derivative contracts that are netted against the derivative asset in the Consolidated Balance Sheet at December 31, 2025 and 2024. Estimated uninsured deposits presented in this section reflect amounts disclosed in our regulatory reports, adjusted to exclude related accrued interest and intercompany deposit balances.

The Corporation’s estimated uninsured deposits include time deposits. At December 31, 2025, the Corporation’s time deposits totaled $212.5 billion, of which estimated uninsured time deposits totaled $47.1 billion. Table 18 presents the Corporation’s estimated uninsured U.S. and non-U.S. time deposits by remaining maturity. For more information on our liquidity sources, see Global Liquidity Sources and Other Unencumbered Assets, and for more information on deposits,

see Diversified Funding Sources in this section. For more information on contractual time deposit maturities, see Note 9 – Deposits to the Consolidated Financial Statements.

Table 18

Uninsured Time Deposits (1)

December 31, 2025

(Dollars in millions)

U.S.

Non-U.S.

Total

Uninsured time deposits with a maturity of:

3 months or less

$

14,364 

$

10,960 

$

25,324 

Over 3 months through 6 months

8,243 

499 

8,742 

Over 6 months through 12 months

7,937 

1,005 

8,942 

Over 12 months

272 

3,771 

4,043 

Total

$

30,816 

$

16,235 

$

47,051 

(1)Amounts are estimated based on the regulatory methodologies defined by each local jurisdiction.

Contingency Planning

We maintain contingency funding plans that outline our potential responses to liquidity stress events at various levels of severity. These policies and plans are based on stress scenarios and include potential funding strategies and communication and notification procedures that we would implement in the event we experienced stressed liquidity conditions. We periodically review and test the contingency funding plans to validate efficacy and assess readiness.

Our U.S. bank subsidiaries can access contingency funding through the Federal Reserve Discount Window. Certain non-U.S. subsidiaries have access to central bank facilities in the jurisdictions in which they operate. While we do not rely on these sources in our liquidity modeling, we maintain the policies, procedures and governance processes that would enable us to access these sources if necessary.

Credit Ratings

Our borrowing costs and ability to raise funds are impacted by our credit ratings. In addition, credit ratings may be important to customers or counterparties when we compete in certain markets and when we seek to engage in certain transactions, including over-the-counter (OTC) derivatives. Thus, it is our objective to maintain high-quality credit ratings, and management maintains an active dialogue with the major rating agencies.

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. Our credit ratings are subject to ongoing review by the rating agencies, and they consider a number of factors, including our own financial strength, performance, prospects and operations as well as factors not under our control. The rating agencies could make adjustments to our ratings at any time, and they provide no assurances that they will maintain our ratings at current levels.

Other factors that influence our credit ratings include changes to the rating agencies’ methodologies for our industry or certain security types; the rating agencies’ assessment of the general operating environment for financial services companies; our relative positions in the markets in which we compete; our various risk exposures and risk management policies and activities; pending litigation and other contingencies or potential tail risks; our reputation; our liquidity position, diversity of funding sources and funding costs; the current and expected level and volatility of our earnings; our capital position and capital management practices; our corporate governance; the

57 Bank of America

sovereign credit ratings of the U.S. government; current or future regulatory and legislative initiatives; and the agencies’ views on whether the U.S. government would provide meaningful support to the Corporation or its subsidiaries in a crisis.

The ratings and outlooks from Moody's Investors Service, Standard & Poor’s Global Ratings and Fitch Ratings for the Corporation did not change in 2025. On May 19, 2025, Moody’s Investors Service downgraded its rating for the long-term senior

debt of BANA to Aa2 from Aa1, removing one notch of rating uplift for government support as a consequence of the agency’s downgrade of U.S. sovereign debt. The ratings and outlooks from Standard & Poor’s Global Ratings and Fitch Ratings for the Corporation’s rated subsidiaries did not change in 2025.

Table 19 presents the Corporation’s current long-term/short-term senior debt ratings and outlooks expressed by the rating agencies.

Table 19

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

A reduction in certain of our credit ratings or the ratings of certain asset-backed securitizations may have a material adverse effect on our liquidity, potential loss of access to credit markets, the related cost of funds, our businesses and on certain revenues, particularly in those businesses where counterparty creditworthiness is critical. In addition, under the terms of certain OTC derivative contracts and other trading agreements, in the event of downgrades of our or our rated subsidiaries’ credit ratings, the counterparties to those agreements may require us to provide additional collateral, or to terminate these contracts or agreements, which could cause us to sustain losses and/or adversely impact our liquidity. If the short-term credit ratings of our Parent, bank or broker-dealer subsidiaries were downgraded by one or more levels, the potential loss of access to short-term funding sources such as repo financing and the effect on our incremental cost of funds could be material.

While certain potential impacts are contractual and quantifiable, the full scope of the consequences of a credit rating downgrade to a financial institution is inherently uncertain, as it depends upon numerous dynamic, complex and inter-related factors and assumptions, including whether any downgrade of a company’s long-term credit ratings precipitates downgrades to its short-term credit ratings, and assumptions about the potential behaviors of various customers, investors and counterparties. For more information on potential impacts of credit rating downgrades, see Liquidity Risk – Liquidity Stress Analysis on page 55.

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 and Item 1A. Risk Factors.

Common Stock Dividends

For a summary of our declared quarterly cash dividends on common stock during 2025 and through February 25, 2026, see Note 13 – Shareholders’ Equity to the Consolidated Financial Statements.

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 December 31, 2025. The Corporation guarantees the payment of amounts and distributions with respect to the Trust Preferred Securities and Capital Securities if not paid by the Trusts, to the extent of funds held by the Trusts. This guarantee, together with the Corporation’s other obligations with respect to the Trust Preferred Securities and Capital Securities, effectively constitutes a full and unconditional guarantee of the Trusts’ payment obligations on the Trust Preferred Securities or Capital Securities, as applicable. No other subsidiary of the Corporation guarantees the Guaranteed Securities.

BofA Finance and each of the Trusts are finance subsidiaries, have no independent assets, revenues or operations and are dependent upon the Corporation and/or the Corporation’s other subsidiaries to meet their respective obligations under the Guaranteed Securities in the ordinary course. If holders of the Guaranteed Securities make claims on their Guaranteed Securities in a bankruptcy, resolution or similar proceeding, any recoveries on those claims will be limited to those available under the applicable guarantee by the Corporation, as described above.

The Corporation is a holding company and depends upon its subsidiaries for liquidity. Applicable laws and regulations and intercompany arrangements entered into in connection with the Corporation’s resolution plan could restrict the availability of funds from subsidiaries to the Corporation, which could

Bank of America 58

adversely affect the Corporation’s ability to make payments under its guarantees. In addition, the obligations of the Corporation under the guarantees of the Guaranteed Securities will be structurally subordinated to all existing and future liabilities of its subsidiaries, and claimants should look only to assets of the Corporation for payments. If the Corporation, as guarantor of the Guaranteed Notes, transfers all or substantially all of its assets to one or more direct or indirect majority-owned subsidiaries, under the indenture governing the Guaranteed Notes, the subsidiary or subsidiaries will not be required to assume the Corporation’s obligations under its guarantee of the Guaranteed Notes.

For more information on factors that may affect payments to holders of the Guaranteed Securities, see Liquidity Risk – NB Holdings Corporation in this section, Item 1. Business – Insolvency and the Orderly Liquidation Authority on page 6 and Item 1A. Risk Factors – Liquidity on page 6.

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.

Credit Risk Management

Credit risk is the risk of loss arising from the inability or failure of a borrower or counterparty to meet its obligations. Credit risk can also arise from operational failures that result in an erroneous advance, commitment or investment of funds. We define the credit exposure to a borrower or counterparty as the loss potential arising from all product classifications including loans and leases, deposit overdrafts, derivatives, assets held-for-sale and unfunded lending commitments, which include loan commitments, letters of credit and financial guarantees. Derivative positions are recorded at fair value, and assets held-for-sale are recorded at either fair value or the lower of cost or fair value. Certain loans and unfunded commitments are accounted for under the fair value option. Credit risk for categories of assets carried at fair value is not accounted for as part of the allowance for credit losses but as part of the fair value adjustments recorded in earnings. For derivative positions, our credit risk is measured as the net cost in the event the counterparties with contracts in which we are in a gain position fail to perform under the terms of those contracts. We use the current fair value to represent credit exposure without giving consideration to future mark-to-market changes. The credit risk amounts take into consideration the effects of legally enforceable master netting agreements and cash collateral. Our consumer and commercial credit extension and review procedures encompass funded and unfunded credit exposures. For more information on derivatives and credit extension commitments, see Note 3 – Derivatives and Note 12 – Commitments and Contingencies to the Consolidated Financial Statements.

We manage credit risk based on the risk profile of the borrower or counterparty, repayment sources, the nature of underlying collateral and other support given current events, conditions and expectations. We classify our portfolios as either consumer or commercial and monitor credit risk in each as discussed below.

We refine our underwriting and credit risk management practices as well as credit standards to meet the changing economic environment. To mitigate losses and enhance customer support in our consumer businesses, we have in place collection programs and loan modification and customer

assistance infrastructures. We utilize a number of actions to mitigate losses in the commercial businesses including increasing the frequency and intensity of portfolio monitoring, hedging activity and our practice of transferring management of deteriorating commercial exposures to independent special asset officers as credits enter criticized categories.

As part of our credit risk management, we also monitor and assess transverse risks such as climate risk, which includes physical risk and transition risk. Physical risks related to severe weather events can increase credit risk, including by diminishing borrowers’ repayment capacity or collateral values. Transition risks related to transitioning to a lower carbon economy can amplify credit risks through the financial impacts of changes in policy, technology or the market on our counterparties. For more information on the Corporation’s climate-related risks, see the Credit and Other sections within Item 1A. Risk Factors of this Annual Report on Form 10-K.

For information on our credit risk management activities, see the following: Consumer Portfolio Credit Risk Management on page 59, Commercial Portfolio Credit Risk Management on page 64, Non-U.S. Portfolio on page 70, Allowance for Credit Losses on page 73, Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements. For information on the Corporation’s loan modification programs, see Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements. For more information on the Corporation’s credit risks, see the Credit section within Item 1A. Risk Factors of this Annual Report on Form 10-K.

During 2025, our net charge-off ratio decreased seven bps compared to the same period in 2024 primarily driven by lower commercial real estate office charge-offs. Commercial reservable criticized exposure decreased $1.7 billion, and nonperforming loans decreased $171 million compared to December 31, 2024 driven by the commercial real estate portfolio. Ongoing uncertainty surrounding international trade policies, persistent inflationary pressures, interest rates and ongoing geopolitical tensions 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. For more information on risks related to macroeconomic conditions and political activity, see Item 1A. Risk Factors beginning on page 8.

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 2025, the U.S. unemployment rate and home prices remained relatively stable. Net charge-offs decreased $90

59 Bank of America

million to $4.1 billion in 2025, primarily driven by the other consumer and credit card portfolios.

The consumer allowance for loan and lease losses decreased $190 million to $8.4 billion from 2024. For more information, see Allowance for Credit Losses on page 73.

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 and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

Table 20 presents our outstanding consumer loans and leases, consumer nonperforming loans and accruing consumer loans past due 90 days or more.

Table 20

Consumer Credit Quality

Outstandings

Nonperforming

Accruing Past Due

90 Days or More

December 31

(Dollars in millions)

2025

2024

2025

2024

2025

2024

Residential mortgage (1)

$

236,302 

$

228,199 

$

2,008 

$

2,052 

$

207 

$

229 

Home equity 

26,823 

25,737 

392 

409 

— 

— 

Credit card

106,027 

103,566 

n/a

n/a

1,351 

1,401 

Direct/Indirect consumer (2)

114,130 

107,122 

176 

186 

5 

1 

Other consumer

144 

151 

— 

— 

— 

— 

Consumer loans excluding loans accounted for under the fair value option

$

483,426 

$

464,775 

$

2,576 

$

2,647 

$

1,563 

$

1,631 

Loans accounted for under the fair value option (3)

165 

221 

Total consumer loans and leases

$

483,591 

$

464,996 

Percentage of outstanding consumer loans and leases (4)

n/a

n/a

0.53 

%

0.57 

%

0.32 

%

0.35 

%

Percentage of outstanding consumer loans and leases, excluding fully-insured loan portfolios (4)

n/a

n/a

0.54 

0.58 

0.29 

0.31 

(1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2025 and 2024, residential mortgage included $104 million and $119 million of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $103 million and $110 million of loans on which interest was still accruing.

(2)Outstandings primarily includes auto and specialty lending loans and leases of $55.3 billion and $54.9 billion, U.S. securities-based lending loans of $55.0 billion and $48.7 billion at December 31, 2025 and 2024, and non-U.S. consumer loans of $3.0 billion and $2.8 billion at December 31, 2025 and 2024.

(3)For more information on the fair value option, see Note 21 – Fair Value Option to the Consolidated Financial Statements.

(4)Excludes consumer loans accounted for under the fair value option. At December 31, 2025 and 2024, 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 21 presents net charge-offs and related ratios for consumer loans and leases.

Table 21

Consumer Net Charge-offs and Related Ratios

Net Charge-offs (1)

Net Charge-off Ratios (1)

(Dollars in millions)

2025

2024

2025

2024

Residential mortgage

$

(1)

$

— 

— 

%

— 

%

Home equity

(41)

(41)

(0.16)

(0.16)

Credit card

3,717 

3,745 

3.68 

3.75 

Direct/Indirect consumer

235 

239 

0.21 

0.23 

Other consumer

238 

295 

n/m

n/m

Total

$

4,148 

$

4,238 

0.88 

0.93 

(1)Negative numbers represent net recoveries. Net charge-off ratios are calculated as 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 49 percent of consumer loans and leases in 2025. Approximately 49 percent of the residential mortgage portfolio was in Consumer Banking, 47 percent was in GWIM and the remaining portion was in Global Markets and All Other.

Outstanding balances in the residential mortgage portfolio increased $8.1 billion in 2025 primarily due to a loan portfolio acquisition in the first quarter of 2025.

At December 31, 2025 and 2024, the residential mortgage portfolio included $9.1 billion and $9.9 billion of outstanding fully-insured loans, of which $1.9 billion and $2.0 billion had FHA insurance, with the remainder protected by Fannie Mae long-term standby agreements.

Table 22 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 60

Table 22

Residential Mortgage – Key Credit Statistics

Reported Basis (1)

Excluding Fully-insured Loans (1)

December 31

(Dollars in millions)

2025

2024

2025

2024

Outstandings

$

236,302 

$

228,199 

$

227,227 

$

218,287 

Accruing past due 30 days or more

1,609 

1,494 

1,159 

1,007 

Accruing past due 90 days or more

207 

229 

— 

— 

Nonperforming loans (2)

2,008 

2,052 

2,008 

2,052 

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 

— 

Refreshed FICO below 620

2 

1 

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 decreased $44 million to $2.0 billion in 2025. Of the nonperforming residential mortgage loans at December 31, 2025, $1.2 billion, or 60 percent, were current on contractual payments. Excluding fully-insured loans, loans accruing past due 30 days or more increased $152 million to $1.2 billion in 2025.

Of the $227.2 billion in total residential mortgage loans outstanding at December 31, 2025, $65.5 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 $3.6 billion, or six percent, at December 31, 2025. 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 December 31, 2025, $43 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 $1.2 billion, or less than one percent, for the

entire residential mortgage portfolio. In addition, at December 31, 2025, $150 million, or four percent, of outstanding interest-only residential mortgage loans that had entered the amortization period were nonperforming, of which $48 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 2027 or later.

Table 23 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 15 percent of outstandings at both December 31, 2025 and 2024. The Los Angeles-Long Beach-Santa Ana MSA within California represented 14 percent of outstandings at both December 31, 2025 and 2024.

Table 23

Residential Mortgage State Concentrations

Outstandings (1)

Nonperforming (1)

December 31

Net Charge-offs (2)

(Dollars in millions)

2025

2024

2025

2024

2025

2024

California

$

82,719 

$

81,729 

$

601 

$

602 

$

(5)

$

1 

New York

25,927 

25,827 

277 

318 

1 

2 

Florida

16,696 

15,715 

139 

142 

— 

(4)

Massachusetts

9,674 

7,926 

51 

43 

— 

— 

New Jersey

9,474 

8,568 

83 

88 

— 

(2)

Other

82,737 

78,522 

857 

859 

3 

3 

Residential mortgage loans

$

227,227 

$

218,287 

$

2,008 

$

2,052 

$

(1)

$

— 

Fully-insured loan portfolio

9,075 

9,912 

Total residential mortgage loan portfolio

$

236,302 

$

228,199 

(1)Outstandings and nonperforming loans exclude loans accounted for under the fair value option.

(2)Negative numbers represent net recoveries

Home Equity

At December 31, 2025, 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 December 31, 2025, 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 $1.1 billion in

2025 primarily due to draws on existing lines and new originations outpacing paydowns. Of the total home equity portfolio at December 31, 2025 and 2024, $8.9 billion and $9.2 billion, or 33 percent and 36 percent, were in first-lien positions. At December 31, 2025, 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 $43.1 billion and $44.3 billion at December 31, 2025 and 2024. The HELOC utilization rate was 38 percent and 36 percent at December 31, 2025 and 2024.

61 Bank of America

Table 24 presents certain home equity portfolio key credit statistics.

Table 24

Home Equity – Key Credit Statistics (1)

December 31

(Dollars in millions)

2025

2024

Outstandings

$

26,823 

$

25,737 

Accruing past due 30 days or more

87 

84 

Nonperforming loans (2)

392 

409 

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 

2 

(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 $17 million to $392 million at December 31, 2025. Of the nonperforming home equity loans at December 31, 2025, $238 million, or 61 percent, were current on contractual payments. In addition, $82 million, or 21 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 in 2025 compared to 2024.

Of the $26.8 billion in total home equity portfolio outstandings at December 31, 2025, as shown in Table 24, eight 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 December 31, 2025. 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 December 31, 2025, $26 million, or one percent, of outstanding HELOCs that

had entered the amortization period were accruing past due 30 days or more. In addition, at December 31, 2025, $217 million, or seven percent, were nonperforming.

For our interest-only HELOC portfolio, we do not actively track how many of our home equity customers pay only the minimum amount due on their home equity loans and lines; however, we can infer some of this information through a review of our HELOC portfolio that we service and is still in its revolving period. During 2025, 13 percent of these customers with an outstanding balance did not pay any principal on their HELOCs.

Table 25 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 and 11 percent of the outstanding home equity portfolio at December 31, 2025 and 2024. The Los Angeles-Long Beach-Santa Ana MSA within California made up 10 percent and 11 percent of the outstanding home equity portfolio at December 31, 2025 and 2024.

Table 25

Home Equity State Concentrations

Outstandings (1)

Nonperforming (1)

December 31

Net Charge-offs (2)

(Dollars in millions)

2025

2024

2025

2024

2025

2024

California

$

7,219 

$

7,038 

$

108 

$

102 

$

(8)

$

(8)

Florida

2,588 

2,542 

43 

47 

(4)

(7)

New Jersey

1,871 

1,817 

27 

34 

(4)

(5)

Texas

1,674 

1,521 

17 

17 

1 

1 

New York

1,421 

1,447 

55 

62 

(6)

(4)

Other

12,050 

11,372 

142 

147 

(20)

(18)

Total home equity loan portfolio

$

26,823 

$

25,737 

$

392 

$

409 

$

(41)

$

(41)

(1)Outstandings and nonperforming loans exclude loans accounted for under the fair value option.

(2)Negative numbers represent net recoveries

Credit Card

At December 31, 2025, 96 percent of the credit card portfolio was managed in Consumer Banking with the remainder in GWIM. Outstandings in the credit card portfolio increased $2.5 billion during 2025 to $106.0 billion driven by purchase volume growth and card transfer demand. Net charge-offs remained relatively unchanged in 2025 at $3.7 billion. Credit card loans 30 days or

more past due decreased $34 million, and 90 days or more past due decreased $50 million at December 31, 2025.

Unused lines of credit for credit card increased to $417.6 billion at December 31, 2025 from $398.7 billion at December 31, 2024.

Bank of America 62

Table 26 presents certain state concentrations for the credit card portfolio.

Table 26

Credit Card State Concentrations

Outstandings

Past Due

90 Days or More

December 31

Net Charge-offs

(Dollars in millions)

2025

2024

2025

2024

2025

2024

California

$

17,664 

$

17,289 

$

241 

$

253 

$

709 

$

694 

Florida

11,169 

10,794 

192 

199 

516 

518 

Texas

9,403 

9,121 

142 

142 

367 

369 

Washington

5,853 

5,586 

47 

46 

123 

121 

New York

5,822 

5,765 

80 

84 

223 

238 

Other

56,116 

55,011 

649 

677 

1,779 

1,805 

Total credit card portfolio

$

106,027 

$

103,566 

$

1,351 

$

1,401 

$

3,717 

$

3,745 

Direct/Indirect Consumer

At December 31, 2025, 49 percent of the direct/indirect portfolio was included in Consumer Banking (consumer auto and recreational vehicle lending) and 51 percent was included in GWIM (principally securities-based lending loans). Outstandings

in the direct/indirect portfolio increased $7.0 billion in 2025 to $114.1 billion driven by increases in securities-based lending.

Table 27 presents certain state concentrations for the direct/indirect consumer loan portfolio.

Table 27

Direct/Indirect State Concentrations

Outstandings

Nonperforming

December 31

Net Charge-offs

(Dollars in millions)

2025

2024

2025

2024

2025

2024

California

$

17,247 

$

16,017 

$

44 

$

38 

$

64 

$

58 

Florida

15,127 

14,573 

20 

23 

28 

33 

Texas

11,051 

10,164 

17 

18 

28 

33 

New York

8,019 

7,820 

10 

15 

13 

15 

New Jersey

4,740 

4,429 

6 

7 

5 

8 

Other

57,946 

54,119 

79 

85 

97 

92 

Total direct/indirect loan portfolio

$

114,130 

$

107,122 

$

176 

$

186 

$

235 

$

239 

Other Consumer

Other consumer primarily consists of deposit overdraft balances. Net charge-offs decreased $57 million in 2025 to $238 million, primarily driven by lower overdraft losses.

Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

Table 28 presents nonperforming consumer loans, leases and foreclosed properties activity during 2025 and 2024. During 2025, nonperforming consumer loans of $2.6 billion decreased $71 million.

At December 31, 2025, $450 million, or 17 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 December 31, 2025, $1.5 billion, or 58 percent, of nonperforming consumer loans were current and classified as nonperforming loans in accordance with applicable policies.

Foreclosed properties was $90 million in 2025, relatively unchanged from 2024.

Table 28

Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

(Dollars in millions)

2025

2024

Nonperforming loans and leases, January 1

$

2,647 

$

2,712 

Additions

1,053 

969 

Reductions:

Paydowns and payoffs

(483)

(479)

Sales

(3)

(5)

Returns to performing status (1)

(578)

(489)

Charge-offs

(33)

(32)

Transfers to foreclosed properties

(27)

(29)

Total net reductions to nonperforming loans and leases

(71)

(65)

Total nonperforming loans and leases, December 31

2,576 

2,647 

Foreclosed properties, December 31

90 

89 

Nonperforming consumer loans, leases and foreclosed properties, December 31 (2)

$

2,666 

$

2,736 

Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases (3)

0.53 

%

0.58 

%

Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties (3)

0.55 

0.60 

(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)Includes repossessed non-real estate assets of $31 million and $29 million at December 31, 2025 and 2024.

(3)Outstanding consumer loans and leases exclude loans accounted for under the fair value option.

63 Bank of America

Commercial Portfolio Credit Risk Management

Credit risk management for the commercial portfolio begins with an assessment of the credit risk profile of the borrower or counterparty based on an analysis of its financial position. As part of the overall credit risk assessment, our commercial credit exposures are assigned a risk rating and are subject to approval based on defined credit approval standards. Subsequent to loan origination, risk ratings are monitored on an ongoing basis, and if necessary, adjusted to reflect changes in the financial condition, cash flow, risk profile or outlook of a borrower or counterparty. In making credit decisions, we consider risk rating, collateral, country, industry and single-name concentration limits while also balancing these considerations with the total borrower or counterparty relationship. We use a variety of tools to continuously monitor the ability of a borrower or counterparty to perform under its obligations. We use risk rating aggregations to measure and evaluate concentrations within portfolios. In addition, risk ratings are a factor in determining the level of allocated capital and the allowance for credit losses.

As part of our ongoing risk mitigation initiatives, we attempt to work with clients experiencing financial difficulty to modify their loans to terms that better align with their current ability to pay. For more information on our accounting policies regarding delinquencies, nonperforming status and net charge-offs for the commercial portfolio, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements.

Management of Commercial Credit Risk Concentrations

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 33, 35 and 38 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 35 and Commercial Portfolio Credit Risk Management – Industry Concentrations on page 68.

We account for certain large corporate loans and loan commitments, including issued but unfunded letters of credit which are considered utilized for credit risk management purposes, that exceed our single-name credit risk concentration guidelines under the fair value option. Lending commitments, both funded and unfunded, are actively managed and monitored, and as appropriate, credit risk for these lending relationships may be mitigated through the use of credit derivatives, with our credit view and market perspectives determining the size and timing of the hedging activity. In addition, we purchase credit protection to cover the funded portion as well as the unfunded portion of certain other credit exposures. To lessen the cost of obtaining our desired credit

protection levels, credit exposure may be added within an industry, borrower or counterparty group by selling protection. These credit derivatives do not meet the requirements for treatment as accounting hedges. They are carried at fair value with changes in fair value recorded in other income.

In addition, we are a member of various securities and derivative exchanges and clearinghouses, both in the U.S. and other countries. As a member, we may be required to pay a pro-rata share of the losses incurred by some of these organizations as a result of another member default and under other loss scenarios. For more information, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements.

Commercial Credit Portfolio

Outstanding commercial loans and leases increased $71.3 billion during 2025 due to growth in U.S. and Non-U.S. commercial, primarily in Global Markets and GWIM. During 2025, commercial credit quality improved, as the reservable criticized utilized exposure rate improved to 3.37 percent as of December 31, 2025 from 4.01 percent as of December 31, 2024. Nonperforming commercial loans decreased $100 million during 2025 primarily due to commercial real estate. Commercial net charge-offs decreased $310 million to $1.5 billion during 2025 primarily due to lower charge-offs in the commercial real estate office portfolio.

With the exception of the office property type, which is further discussed in the Commercial Real Estate section herein, credit quality of commercial borrowers has remained relatively stable since December 31, 2024; however, we are closely monitoring emerging trends, including ongoing negotiations and developments regarding tariffs and international trade policies, as well as borrower performance in the current environment. Recent demand for office space continues to be stagnant, and future demand for office space continues to be uncertain as companies evaluate space needs with employment models that utilize a mix of remote and conventional office use.

The commercial allowance for loan and lease losses increased $153 million during 2025 to $4.8 billion. For more information, see Allowance for Credit Losses on page 73.

Total commercial utilized credit exposure increased $68.9 billion during 2025 to $808.4 billion primarily driven by higher loans and leases. 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 December 31, 2025 and 2024.

Table 29 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 64

Table 29

Commercial Credit Exposure by Type

Commercial Utilized (1)

Commercial Unfunded (2, 3, 4)

Total Commercial Committed

December 31

(Dollars in millions)

2025

2024

2025

2024

2025

2024

Loans and leases

$

702,109 

$

630,839 

$

596,676 

$

535,675 

$

1,298,785 

$

1,166,514 

Derivative assets (5)

40,881 

40,948 

— 

— 

40,881 

40,948 

Standby letters of credit and financial guarantees

35,048 

33,147 

2,081 

1,889 

37,129 

35,036 

Debt securities and other investments

19,155 

19,133 

3,391 

4,407 

22,546 

23,540 

Loans held-for-sale

3,450 

7,985 

17,151 

5,003 

20,601 

12,988 

Operating leases

5,686 

5,608 

— 

— 

5,686 

5,608 

Commercial letters of credit

748 

839 

— 

111 

748 

950 

Other

1,312 

1,004 

— 

— 

1,312 

1,004 

Total

$

808,389 

$

739,503 

$

619,299 

$

547,085 

$

1,427,688 

$

1,286,588 

(1)Commercial utilized exposure includes loans of $3.3 billion and $4.0 billion accounted for under the fair value option at December 31, 2025 and 2024.

(2)Commercial unfunded exposure includes commitments accounted for under the fair value option with a notional amount of $2.3 billion and $2.2 billion at December 31, 2025 and 2024.

(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 $10.6 billion and $10.4 billion at December 31, 2025 and 2024.

(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 $27.2 billion and $30.1 billion at December 31, 2025 and 2024. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $71.4 billion and $59.7 billion at December 31, 2025 and 2024, which consists primarily of other marketable securities.

Nonperforming commercial loans decreased $100 million during 2025, driven by commercial real estate. Table 30 presents our commercial loans and leases portfolio and related credit quality information at December 31, 2025 and 2024.

Table 30

Commercial Credit Quality

Outstandings

Nonperforming

Accruing Past Due

90 Days or More

December 31

(Dollars in millions)

December 31

2025

December 31

2024

December 31

2025

December 31

2024

December 31

2025

December 31

2024

Commercial and industrial:

U.S. commercial

$

436,242 

$

386,990 

$

1,404 

$

1,204 

$

302 

$

90 

Non-U.S. commercial

155,045 

137,518 

80 

8 

9 

4 

Total commercial and industrial

591,287 

524,508 

1,484 

1,212 

311 

94 

Commercial real estate

68,748 

65,730 

1,596 

2,068 

10 

6 

Commercial lease financing

16,241 

15,708 

97 

20 

33 

3 

676,276 

605,946 

3,177 

3,300 

354 

103 

U.S. small business commercial (1)

22,500 

20,865 

51 

28 

204 

197 

Commercial loans excluding loans accounted for under the fair value option

$

698,776 

$

626,811 

$

3,228 

$

3,328 

$

558 

$

300 

Loans accounted for under the fair value option (2)

3,333 

4,028 

Total commercial loans and leases

$

702,109 

$

630,839 

(1)Includes card-related products.

(2)Commercial loans accounted for under the fair value option includes U.S. commercial of $2.1 billion and $2.8 billion and non-U.S. commercial of $1.2 billion and $1.3 billion at December 31, 2025 and 2024 For more information on the fair value option, see Note 21 – Fair Value Option to the Consolidated Financial Statements.

Table 31 presents net charge-offs and related ratios for our commercial loans and leases for 2025 and 2024.

Table 31

Commercial Net Charge-offs and Related Ratios

Net Charge-offs

Net Charge-off Ratios (1)

(Dollars in millions)

December 31

2025

December 31

2024

December 31

2025

December 31

2024

Commercial and industrial:

U.S. commercial

$

426 

$

388 

0.10 

%

0.11 

%

Non-U.S. commercial

31 

67 

0.02 

0.05 

Total commercial and industrial

457 

455 

0.08 

0.09 

Commercial real estate

491 

864 

0.74 

1.24 

Commercial lease financing

4 

1 

0.02 

0.01 

952 

1,320 

0.15 

0.23 

U.S. small business commercial

531 

473 

2.44 

2.34 

Total commercial

$

1,483 

$

1,793 

0.22 

0.30 

(1)Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases, excluding loans accounted for under the fair value option.

Table 32 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 $24.7 billion decreased $1.7

billion, or seven percent, during 2025 primarily driven by commercial real estate and U.S. commercial. At December 31, 2025 and 2024, 87 percent and 91 percent of commercial reservable criticized utilized exposure was secured.

65 Bank of America

Table 32

Commercial Reservable Criticized Utilized Exposure (1, 2)

December 31

(Dollars in millions)

2025

2024

Commercial and industrial:

U.S. commercial

$

12,239 

2.63 

%

$

13,387 

3.23 

%

Non-U.S. commercial

2,803 

1.74 

1,955 

1.37 

Total commercial and industrial

15,042 

2.40 

15,342 

2.75 

Commercial real estate

8,356 

11.91 

10,168 

15.17 

Commercial lease financing

471 

2.90 

291 

1.85 

23,869 

3.35 

25,801 

4.03 

U.S. small business commercial

879 

3.91 

694 

3.33 

Total commercial reservable criticized utilized exposure

$

24,748 

3.37 

$

26,495 

4.01 

(1)Total commercial reservable criticized utilized exposure includes loans and leases of $23.9 billion and $25.5 billion and commercial letters of credit of $869 million and $977 million at December 31, 2025 and 2024.

(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 December 31, 2025, 55 percent of the U.S. commercial loan portfolio, excluding small business, was managed in Global Banking, 26 percent in Global Markets, 17 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 $49.3 billion, or 13 percent, during 2025 primarily driven by Global Markets and GWIM. Reservable criticized utilized exposure decreased $1.1 billion, or nine percent, driven by a broad range of industries.

Non-U.S. Commercial

At December 31, 2025, 51 percent of the non-U.S. commercial loan portfolio was managed in Global Banking and 48 percent in Global Markets. Non-U.S. commercial loans increased $17.5 billion, or 13 percent, during 2025 primarily driven by Global Markets. Reservable criticized utilized exposure increased $848 million, or 43 percent. For more information on the non-U.S. commercial portfolio, see Non-U.S. Portfolio on page 70.

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 $3.0 billion or five percent during 2025. 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 and 21 percent of commercial real estate at December 31, 2025 and 2024. Industrial/Warehouse loans represented the largest property type concentration at 19 percent and 20 percent of commercial real estate at December 31, 2025 and 2024. Office loans decreased $2.6 billion, or 17 percent, during 2025 and represented approximately one percent of total loans for the Corporation.

Reservable criticized utilized exposure for commercial real estate decreased $1.8 billion, or 18 percent, during 2025. Reservable criticized exposure for the office property type was $3.5 billion at December 31, 2025, representing a decrease of $1.6 billion, or 32 percent, from December 31, 2024. Approximately $5.2 billion of office loans are scheduled to mature by the end of 2026.

During 2025, net charge-offs decreased $373 million to $491 million 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 66

Table 33 presents outstanding commercial real estate loans by geographic region, based on the geographic location of the collateral, and by property type.

Table 33

Outstanding Commercial Real Estate Loans

December 31

(Dollars in millions)

2025

2024

By Geographic Region 

Northeast

$

17,044 

$

14,708 

California

13,916 

13,712 

Southwest

8,412 

7,719 

Southeast

6,958 

6,914 

Florida

5,167 

4,410 

Midsouth

2,962 

2,487 

Midwest

2,862 

2,468 

Illinois

2,513 

2,996 

Northwest

1,451 

1,979 

Non-U.S. 

6,021 

6,109 

Other 

1,442 

2,228 

Total outstanding commercial real estate loans

$

68,748 

$

65,730 

By Property Type

Non-residential

Industrial / Warehouse

$

13,031 

$

13,166 

Office

12,447 

15,061 

Multi-family rental

10,986 

11,022 

Shopping centers / Retail

6,947 

5,603 

Hotel / Motels

4,629 

4,680 

Multi-use

2,509 

2,162 

Other

17,295 

13,179 

Total non-residential

67,844 

64,873 

Residential

904 

857 

Total outstanding commercial real estate loans

$

68,748 

$

65,730 

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 and 53 percent of the U.S. small business commercial portfolio at December 31, 2025 and 2024 and represented 98 percent and 99 percent of net charge-offs for 2025 and 2024. Accruing loans that were past due 90 days or more remained relatively unchanged during 2025.

Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity

Table 34 presents the nonperforming commercial loans, leases and foreclosed properties activity during 2025 and 2024. Nonperforming loans do not include loans accounted for under the fair value option. During 2025, nonperforming commercial loans and leases decreased $100 million to $3.2 billion. At December 31, 2025, 98 percent of commercial nonperforming loans, leases and foreclosed properties were secured, and 48 percent were contractually current. Commercial nonperforming loans were carried at 81 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.

67 Bank of America

Table 34

Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2)

(Dollars in millions)

2025

2024

Nonperforming loans and leases, beginning of period

$

3,328 

$

2,773 

Additions

3,182 

3,914 

Reductions:

Paydowns

(1,852)

(1,669)

Sales

(156)

(32)

Returns to performing status (3)

(245)

(182)

Charge-offs

(1,029)

(1,361)

Transfers to foreclosed properties

— 

(115)

Total net (reductions) additions to nonperforming loans and leases

(100)

555 

Total nonperforming loans and leases, December 31

3,228 

3,328 

Foreclosed properties, December 31

11 

56 

Nonperforming commercial loans, leases and foreclosed properties, December 31

$

3,239 

$

3,384 

Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4)

0.46 

%

0.53 

%

Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4)

0.46 

0.54 

(1)Balances do not include nonperforming loans held-for-sale of $517 million and $731 million at December 31, 2025 and 2024.

(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 35 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 $141.1 billion during 2025 to $1.4 trillion. The increase in commercial committed exposure was concentrated in Asset managers and funds, Finance companies and Media.

Industry limits are used internally to manage industry concentrations and are based on committed exposure that is determined on an industry-by-industry basis. A risk management framework is in place to set and approve industry limits as well as to provide ongoing monitoring.

Asset managers and funds, our largest industry concentration with committed exposure of $234.3 billion, increased $40.4 billion, or 21 percent, during 2025, which was primarily driven by investment-grade exposures.

Finance companies, our second largest industry concentration with committed exposure of $129.7 billion, increased $27.8 billion, or 27 percent, during 2025. The increase in committed exposure was primarily driven by increases in Consumer finance, Thrifts and mortgage finance and Diversified financials.

Capital goods, our third largest industry concentration with committed exposure of $108.7 billion, increased $9.9 billion, or ten percent, during 2025. The increase in committed exposure was driven by increases in Trading companies and distributors, Machinery, and Construction and engineering.

Various macroeconomic challenges, including geopolitical tensions, higher costs associated with inflationary pressures experienced over the past several years, interest rates and ongoing negotiations and developments regarding international trade policies have led to 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 68

Table 35

Commercial Credit Exposure by Industry (1)

Commercial

Utilized

Total Commercial

Committed (2)

December 31

(Dollars in millions)

2025

2024

2025

2024

Asset managers and funds

$

149,178 

$

118,123 

$

234,323 

$

193,947 

Finance companies

94,444 

74,975 

129,652 

101,828 

Capital goods

54,293 

51,367 

108,722 

98,780 

Real estate (3)

69,939 

69,841 

99,454 

95,981 

Healthcare equipment and services

35,417 

35,964 

71,944 

65,819 

Materials

29,094 

26,797 

61,872 

58,128 

Individuals and trusts

43,556 

35,457 

59,713 

50,353 

Retailing

25,648 

24,449 

55,313 

53,471 

Consumer services

29,757 

28,391 

55,291 

53,054 

Food, beverage and tobacco

25,561 

25,763 

51,016 

54,370 

Government and public education

33,874 

32,682 

50,898 

48,204 

Commercial services and supplies

24,680 

24,409 

46,058 

43,451 

Media

11,324 

12,130 

43,691 

24,023 

Utilities

18,670 

18,186 

43,554 

42,107 

Energy

13,199 

13,857 

39,122 

35,510 

Transportation

24,772 

24,135 

37,707 

35,743 

Software and services

15,317 

11,158 

32,070 

27,383 

Technology hardware and equipment

11,488 

11,526 

30,519 

30,093 

Global commercial banks

22,377 

22,641 

25,327 

25,220 

Vehicle dealers

19,222 

18,194 

24,669 

23,855 

Insurance

11,443 

12,640 

23,762 

23,445 

Pharmaceuticals and biotechnology

7,166 

7,378 

23,325 

21,717 

Consumer durables and apparel

9,612 

8,987 

23,299 

21,823 

Automobiles and components

8,129 

8,172 

17,284 

16,268 

Telecommunication services

6,525 

8,571 

15,686 

18,759 

Food and staples retailing

5,313 

7,206 

10,836 

12,777 

Financial markets infrastructure (clearinghouses)

6,101 

4,219 

8,336 

6,413 

Religious and social organizations

2,290 

2,285 

4,245 

4,066 

Total commercial credit exposure by industry

$

808,389 

$

739,503 

$

1,427,688 

$

1,286,588 

(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 $10.6 billion and $10.4 billion at December 31, 2025 and 2024.

(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 December 31, 2025 and 2024, 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 $14.5 billion and $10.4 billion. We recorded net losses of $100 million in 2025 compared to net losses of $87 million in 2024. The gains and losses on these instruments were largely offset by gains and losses on the related exposures. The Value-at-Risk (VaR) results for these exposures are included in the fair value option portfolio information in Table 42. For more information, see Trading Risk Management on page 76.

Tables 36 and 37 present the maturity profiles and the credit exposure debt ratings of the net credit default protection portfolio at December 31, 2025 and 2024.

Table 36

Net Credit Default Protection by Maturity

December 31

2025

2024

Less than or equal to one year

37 

%

24 

%

Greater than one year and less than or equal to five years

61 

76 

Greater than five years

2 

— 

Total net credit default protection

100 

%

100 

%

69 Bank of America

Table 37

Net Credit Default Protection by Credit Exposure Debt Rating

Net

Notional (1)

Percent of

Total

Net

Notional (1)

Percent of

Total

December 31

(Dollars in millions)

2025

2024

Ratings (2, 3)

AAA

$

(145)

1.0 

%

$

(120)

1.1 

%

AA

(1,968)

13.5 

(960)

9.2 

A

(6,348)

43.7 

(4,978)

47.7 

BBB

(4,639)

31.9 

(3,385)

32.4 

BB

(697)

4.8 

(526)

5.0 

B

(441)

3.0 

(385)

3.7 

CCC and below

(17)

0.1 

(82)

0.8 

NR (4)

(270)

2.0 

— 

0.1 

Total net credit

default protection

$

(14,525)

100.0 

%

$

(10,436)

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.

In addition to our net notional credit default protection purchased to cover the funded and unfunded portion of certain credit exposures, credit derivatives are used for market-making activities for clients and establishing positions intended to profit from directional or relative value changes. We execute the majority of our credit derivative trades in the OTC market with large, multinational financial institutions, including broker-dealers and, to a lesser degree, with a variety of other investors. Because these transactions are executed in the OTC market, we are subject to settlement risk. We are also subject to credit risk in the event that these counterparties fail to perform under the terms of these contracts. In order to properly reflect counterparty credit risk, we record counterparty credit risk valuation adjustments on certain derivative assets, including our purchased credit default protection. In most cases, credit derivative transactions are executed on a daily margin basis. Therefore, events such as a credit downgrade, depending on the ultimate rating level, or a breach of credit covenants would typically require an increase in the amount of collateral required by the counterparty, where applicable, and/or allow us to take additional protective measures such as early termination of all trades. For more information on credit derivatives and counterparty credit risk valuation adjustments, see Note 3 – Derivatives to the Consolidated Financial Statements.

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.

Table 38 presents our 20 largest non-U.S. country exposures at December 31, 2025. These exposures accounted for 88 percent of our total non-U.S. exposure at December 31, 2025 and 89 percent at December 31, 2024. Net country exposure for these 20 countries increased $32.9 billion from December 31, 2024 primarily driven by increases in Australia, the Netherlands, the United Kingdom and Ireland.

Non-U.S. exposure is presented on an internal risk management basis and includes sovereign and non-sovereign credit exposure, securities and other investments issued by or domiciled in countries other than the U.S.

Funded loans and loan equivalents include loans, leases, and other extensions of credit and funds, including letters of credit and due from placements. Unfunded commitments are the undrawn portion of legally binding commitments related to loans and loan equivalents. Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps (CDS), and secured financing transactions. Securities and other investments are carried at fair value, and long securities exposures are netted against short exposures with the same underlying issuer to, but not below, zero. Net country exposure represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.

Bank of America 70

Table 38

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 December 31

2025

Hedges and Credit Default Protection

Net Country Exposure at December 31

2025

Increase (Decrease) from December 31

2024

United Kingdom

$

35,666 

$

17,879 

$

4,682 

$

8,637 

$

66,864 

$

(2,249)

$

64,615 

$

2,570 

Germany

24,262 

12,686 

3,504 

2,252 

42,704 

(3,596)

39,108 

2,070 

Australia

23,570 

6,313 

540 

2,861 

33,284 

(412)

32,872 

10,736 

Canada

15,356 

11,449 

1,866 

3,700 

32,371 

(608)

31,763 

291 

France

14,617 

11,869 

1,633 

2,044 

30,163 

(2,601)

27,562 

1,408 

Japan

10,882 

1,593 

3,074 

4,033 

19,582 

(603)

18,979 

(262)

Brazil

11,105 

1,382 

953 

4,679 

18,119 

(125)

17,994 

1,256 

Switzerland

5,372 

6,447 

832 

278 

12,929 

(250)

12,679 

2,078 

Netherlands

6,925 

4,504 

661 

1,193 

13,283 

(624)

12,659 

4,530 

India

6,406 

246 

636 

4,118 

11,406 

(30)

11,376 

(2,410)

Singapore

4,991 

686 

242 

5,599 

11,518 

(145)

11,373 

1,486 

China

4,636 

591 

915 

5,088 

11,230 

(297)

10,933 

1,711 

Ireland

8,159 

1,994 

338 

392 

10,883 

(263)

10,620 

2,359 

Mexico

5,512 

2,192 

610 

1,662 

9,976 

(217)

9,759 

1,717 

South Korea

4,516 

1,320 

607 

3,359 

9,802 

(269)

9,533 

1,090 

Italy

5,741 

3,019 

212 

698 

9,670 

(812)

8,858 

969 

Spain

3,235 

2,555 

99 

1,248 

7,137 

(373)

6,764 

661 

Hong Kong

2,856 

540 

997 

1,322 

5,715 

(35)

5,680 

590 

Sweden

1,628 

1,897 

177 

263 

3,965 

(497)

3,468 

18 

Belgium

1,060 

1,359 

656 

407 

3,482 

(121)

3,361 

(14)

Total top 20 non-U.S. countries exposure

$

196,495 

$

90,521 

$

23,234 

$

53,833 

$

364,083 

$

(14,127)

$

349,956 

$

32,854 

Our largest non-U.S. country exposure at December 31, 2025 was the United Kingdom with net exposure of $64.6 billion, which increased $2.6 billion from December 31, 2024 primarily due to increased exposure to financial institutions. Our second largest non-U.S. country exposure was Germany with net exposure of $39.1 billion at December 31, 2025, which increased $2.1 billion from December 31, 2024 primarily due to increased exposure to financial institutions.

71 Bank of America

Loan and Lease Contractual Maturities

Table 39 disaggregates total outstanding loans and leases by remaining scheduled principal due dates and interest rates. The amounts provided do not reflect prepayment assumptions or hedging activities related to the loan portfolio. For information on the asset sensitivity of our total banking book balance sheet, see Interest Rate Risk Management for the Banking Book on page 79.

Table 39

Loan and Lease Contractual Maturities (1)

December 31, 2025

(Dollars in millions)

Due in One

Year or Less

Due After One Year Through Five Years

Due After Five Years Through 15 Years

Due After 15 Years

Total

Residential mortgage

$

6,043 

$

36,432 

$

101,819 

$

92,066 

$

236,360 

Home equity

574 

627 

1,822 

23,907 

26,930 

Credit card

106,027 

— 

— 

— 

106,027 

Direct/Indirect consumer

72,094 

36,728 

4,668 

640 

114,130 

Other consumer

144 

— 

— 

— 

144 

Total consumer loans

184,882 

73,787 

108,309 

116,613 

483,591 

U.S. commercial

133,448 

286,555 

16,082 

2,303 

438,388 

Non-U.S. commercial

51,894 

64,501 

35,703 

4,134 

156,232 

Commercial real estate

27,454 

39,702 

1,573 

19 

68,748 

Commercial lease financing

3,970 

10,002 

1,283 

986 

16,241 

U.S. small business commercial

13,067 

5,286 

4,014 

133 

22,500 

Total commercial loans

229,833 

406,046 

58,655 

7,575 

702,109 

Total loans and leases

$

414,715 

$

479,833 

$

166,964 

$

124,188 

$

1,185,700 

Amount due in one year or less at:

Amount due after one year at:

(Dollars in millions)

Variable Interest Rates

Fixed Interest Rates

Variable Interest Rates

Fixed Interest Rates

Total

Residential mortgage

$

1,247 

$

4,796 

$

91,627 

$

138,690 

$

236,360 

Home equity

98 

476 

24,083 

2,273 

26,930 

Credit card

100,130 

5,897 

— 

— 

106,027 

Direct/Indirect consumer

53,104 

18,990 

2,889 

39,147 

114,130 

Other consumer

25 

119 

— 

— 

144 

Total consumer loans

154,604 

30,278 

118,599 

180,110 

483,591 

U.S. commercial

104,248 

29,200 

251,959 

52,981 

438,388 

Non-U.S. commercial

40,483 

11,411 

98,512 

5,826 

156,232 

Commercial real estate

25,065 

2,389 

39,859 

1,435 

68,748 

Commercial lease financing

243 

3,727 

2,586 

9,685 

16,241 

U.S. small business commercial

7,911 

5,156 

131 

9,302 

22,500 

Total commercial loans

177,950 

51,883 

393,047 

79,229 

702,109 

Total loans and leases

$

332,554 

$

82,161 

$

511,646 

$

259,339 

$

1,185,700 

(1)Includes loans accounted for under the fair value option.

Bank of America 72

Allowance for Credit Losses

The allowance for credit losses increased $44 million from December 31, 2024 to $14.4 billion at December 31, 2025, which included a $185 million reserve decrease and

$229 million reserve increase related to the consumer and commercial portfolios, respectively.

Table 40 presents an allocation of the allowance for credit losses by product type at December 31, 2025 and 2024.

Table 40

Allocation of the Allowance for Credit Losses by Product Type

Amount

Percent of

Total

Percent of

Loans and

Leases

Outstanding (1)

Amount

Percent of

Total

Percent of

Loans and

Leases

Outstanding (1)

(Dollars in millions)

December 31, 2025

December 31, 2024

Allowance for loan and lease losses

Residential mortgage

$

294 

2.23 

%

0.12 

%

$

264 

1.99 

%

0.12 

%

Home equity

122 

0.92 

0.46 

29 

0.22 

0.11 

Credit card

7,197 

54.51 

6.79 

7,515 

56.76 

7.26 

Direct/Indirect consumer

713 

5.40 

0.63 

700 

5.29 

0.65 

Other consumer

54 

0.41 

n/m

62 

0.47 

n/m

Total consumer

8,380 

63.47 

1.73 

8,570 

64.73 

1.84 

U.S. commercial (2)

2,967 

22.47 

0.65 

2,637 

19.91 

0.65 

Non-U.S. commercial

801 

6.07 

0.52 

778 

5.88 

0.57 

Commercial real estate

1,007 

7.63 

1.46 

1,219 

9.21 

1.85 

Commercial lease financing

48 

0.36 

0.29 

36 

0.27 

0.23 

Total commercial

4,823 

36.53 

0.69 

4,670 

35.27 

0.75 

Allowance for loan and lease losses

13,203 

100.00 

%

1.12 

13,240 

100.00 

%

1.21 

Reserve for unfunded lending commitments

1,177 

1,096 

Allowance for credit losses

$

14,380 

$

14,336 

(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 and $1.2 billion at December 31, 2025 and 2024.

n/m = not meaningful

Net charge-offs for 2025 were $5.6 billion compared to $6.0 billion in 2024 driven by asset quality improvement in commercial real estate office. The provision for credit losses decreased $146 million to $5.7 billion during 2025 compared to 2024. The provision for credit losses in 2025 was impacted by improved asset quality in credit card and commercial real estate, partially offset by loan growth. The provision for credit losses for the consumer portfolio, including unfunded lending commitments, decreased $299 million to $4.0 billion during 2025 compared to 2024. The provision for credit losses for the commercial portfolio, including unfunded lending commitments,

increased $153 million to $1.7 billion during 2025 compared to 2024.

Table 41 presents a rollforward of the allowance for credit losses, including certain loan and allowance ratios for 2025 and 2024. 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 and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

73 Bank of America

Table 41

Allowance for Credit Losses

(Dollars in millions)

2025

2024

Allowance for loan and lease losses, January 1

$

13,240 

$

13,342 

Loans and leases charged off

Residential mortgage

(24)

(21)

Home equity

(16)

(21)

Credit card

(4,498)

(4,365)

Direct/Indirect consumer

(373)

(399)

Other consumer

(256)

(313)

Total consumer charge-offs

(5,167)

(5,119)

U.S. commercial (1)

(1,123)

(958)

Non-U.S. commercial

(33)

(81)

Commercial real estate

(520)

(894)

Commercial lease financing

(8)

(2)

Total commercial charge-offs

(1,684)

(1,935)

Total loans and leases charged off

(6,851)

(7,054)

Recoveries of loans and leases previously charged off

Residential mortgage

25 

21 

Home equity

57 

62 

Credit card

781 

620 

Direct/Indirect consumer

138 

160 

Other consumer

18 

18 

Total consumer recoveries

1,019 

881 

U.S. commercial (2)

166 

97 

Non-U.S. commercial

2 

14 

Commercial real estate

29 

30 

Commercial lease financing

4 

1 

Total commercial recoveries

201 

142 

Total recoveries of loans and leases previously charged off

1,220 

1,023 

Net charge-offs

(5,631)

(6,031)

Provision for loan and lease losses

5,595 

5,935 

Other

(1)

(6)

Allowance for loan and lease losses, December 31

13,203 

13,240 

Reserve for unfunded lending commitments, January 1

1,096 

1,209 

Provision for unfunded lending commitments

80 

(114)

Other

1 

1 

Reserve for unfunded lending commitments, December 31

1,177 

1,096 

Allowance for credit losses, December 31

$

14,380 

$

14,336 

Loan and allowance ratios (3):

Loans and leases outstanding at December 31

$

1,182,202 

$

1,091,586 

Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31

1.12 

%

1.21 

%

Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31

1.73 

1.84 

Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31

0.69 

0.75 

Average loans and leases outstanding

$

1,130,593 

$

1,056,507 

Net charge-offs as a percentage of average loans and leases outstanding

0.50 

%

0.57 

%

Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31

228 

222 

Ratio of the allowance for loan and lease losses at December 31 to net charge-offs

2.34 

2.20 

Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at December 31 (4)

$

8,473 

$

8,689 

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 December 31 (4)

82 

%

76 

%

(1)Includes U.S. small business commercial charge-offs of $587 million in 2025 compared to $519 million in 2024.

(2)Includes U.S. small business commercial recoveries of $56 million in 2025 compared to $46 million in 2024.

(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 74

Market Risk Management

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. For more information, see Interest Rate Risk Management for the Banking Book on page 79.

Our traditional banking loan and deposit products are non-trading positions and are generally reported at amortized cost for assets or the amount owed for liabilities (historical cost). However, these positions are still subject to changes in economic value based on varying market conditions, with one of the primary risks being changes in the levels of interest rates. The risk of adverse changes in the economic value of our non-trading positions arising from changes in interest rates is managed through our ALM activities. We have elected to account for certain assets and liabilities under the fair value option.

Our trading positions are reported at fair value with changes reflected in income. Trading positions are subject to various changes in market-based risk factors. The majority of this risk is generated by our activities in the interest rate, foreign exchange, credit, equity and commodities markets. In addition, the values of assets and liabilities could change due to market liquidity, correlations across markets and expectations of market volatility. We seek to manage these risk exposures by using a variety of techniques that encompass a broad range of financial instruments. The key risk management techniques are discussed in more detail in the Trading Risk Management section.

GRM is responsible for providing senior management with a clear and comprehensive understanding of the trading risks to which we are exposed. These responsibilities include ownership of market risk policy, developing and maintaining quantitative risk models, calculating aggregated risk measures, establishing and monitoring position limits consistent with risk appetite, conducting daily reviews and analysis of trading inventory, approving material risk exposures and fulfilling regulatory requirements. Market risks that impact businesses outside of Global Markets are monitored and governed by their respective governance functions.

Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. Given that models are used across the Corporation, model risk impacts all risk types including credit, market and operational risks. The Enterprise Model Risk Policy defines model risk standards, consistent with our Risk Framework and risk appetite, prevailing regulatory guidance and industry best practice. All models, including risk management, valuation and regulatory capital models, must meet certain validation criteria, including effective challenge of the conceptual soundness of the model, independent model testing and ongoing monitoring through outcomes analysis and benchmarking. The Enterprise Model Risk Committee, a subcommittee of the MRC, oversees that model standards are consistent with model risk requirements and monitors the effective challenge in the model validation process across the Corporation.

Interest Rate Risk

Interest rate risk represents exposures to instruments whose values vary with the level or volatility of interest rates. These instruments include, but are not limited to, loans, debt securities, certain trading-related assets and liabilities, deposits, borrowings and derivatives. Hedging instruments used to mitigate these risks include derivatives such as options, futures, forwards and swaps.

Foreign Exchange Risk

Foreign exchange risk represents exposures to changes in the values of current holdings and future cash flows denominated in currencies other than the U.S. dollar. The types of instruments exposed to this risk include investments in non-U.S. subsidiaries, foreign currency-denominated loans and securities, future cash flows in foreign currencies arising from foreign exchange transactions, foreign currency-denominated debt and various foreign exchange derivatives whose values fluctuate with changes in the level or volatility of currency exchange rates or non-U.S. interest rates. Hedging instruments used to mitigate this risk include foreign exchange options, currency swaps, futures, forwards, and foreign currency-denominated debt and deposits.

Mortgage Risk

Mortgage risk represents exposures to changes in the values of mortgage-related instruments. The values of these instruments are sensitive to prepayment rates, mortgage rates, agency debt ratings, default, market liquidity, government participation and interest rate volatility. Our exposure to these instruments takes several forms. For example, we trade and engage in market-making activities in a variety of mortgage securities including whole loans, pass-through certificates, commercial mortgages and collateralized mortgage obligations, including collateralized debt obligations using mortgages as underlying collateral. In addition, we originate a variety of MBS, which involves the accumulation of mortgage-related loans in anticipation of eventual securitization, and we may hold positions in mortgage securities and residential mortgage loans as part of the ALM portfolio. We also record MSRs as part of our mortgage origination activities. Hedging instruments used to mitigate this risk include derivatives such as options, swaps, futures and forwards, as well as securities including MBS and U.S. Treasury securities. For more information, see Mortgage Banking Risk Management on page 81.

Equity Market Risk

Equity market risk represents exposures to securities that represent an ownership interest in a corporation in the form of domestic and foreign common stock or other equity-linked instruments. Instruments that would lead to this exposure include, but are not limited to, the following: common stock, exchange-traded funds, American Depositary Receipts, convertible bonds, listed equity options (puts and calls), OTC equity options, equity total return swaps, equity index futures and other equity derivative products. Hedging instruments used to mitigate this risk include options, futures, swaps, convertible bonds and cash positions.

Commodity Risk

Commodity risk represents exposures to instruments traded in the petroleum, natural gas, power and metals markets. These instruments consist primarily of futures, forwards, swaps and options. Hedging instruments used to mitigate this risk include

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options, futures and swaps in the same or similar commodity product, as well as cash positions.

Issuer Credit Risk

Issuer credit risk represents exposures to changes in the creditworthiness of individual issuers or groups of issuers. Our portfolio is exposed to issuer credit risk where the value of an asset may be adversely impacted by changes in the levels of credit spreads, by credit migration or by defaults. Hedging instruments used to mitigate this risk include bonds, CDS and other credit fixed-income instruments.

Market Liquidity Risk

Market liquidity risk represents the risk that the level of expected market activity changes dramatically and, in certain cases, may even cease. This exposes us to the risk that we will not be able to transact business and execute trades in an orderly manner, which may impact our results. This impact could be further exacerbated if expected hedging or pricing correlations are compromised by disproportionate demand or lack of demand for certain instruments. We utilize various risk mitigating techniques as discussed in more detail in Trading Risk Management.

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. Various techniques and procedures are utilized to enable the most complete understanding of these risks. Quantitative measures of market risk are evaluated on a daily basis from a single position to the portfolio of the Corporation. These measures include sensitivities of positions to various market risk factors, such as the potential impact on revenue from a one basis point change in interest rates, and statistical measures utilizing both actual and hypothetical market moves, such as VaR and stress testing. Periods of extreme market stress influence the reliability of these techniques to varying degrees. Qualitative evaluations of market risk utilize the suite of quantitative risk measures while understanding each of their respective limitations. Additionally, risk managers independently evaluate the risk of the portfolios under the current market environment and potential future environments.

VaR is a common statistic used to measure market risk as it allows the aggregation of market risk factors, including the effects of portfolio diversification. A VaR model simulates the value of a portfolio under a range of scenarios in order to generate a distribution of potential gains and losses. VaR represents the loss a portfolio is not expected to exceed more than a certain number of times per period, based on a specified holding period, confidence level and window of historical data. We use one VaR model consistently across the trading portfolios, and it uses a historical simulation approach based on a three-year window of historical data. 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.

Within any VaR model, there are significant and numerous assumptions that will differ from company to company. The accuracy of a VaR model depends on the availability and quality of historical data for each of the risk factors in the portfolio. A VaR model may require additional modeling assumptions for new products that do not have the necessary historical market data or for less liquid positions for which accurate daily prices

are not consistently available. For positions with insufficient historical data for the VaR calculation, the process for establishing an appropriate proxy is based on fundamental and statistical analysis of the new product or less liquid position. This analysis identifies reasonable alternatives that replicate both the expected volatility and correlation to other market risk factors that the missing data would be expected to experience.

VaR may not be indicative of realized revenue volatility, as changes in market conditions or in the composition of the portfolio can have a material impact on the results. In particular, the historical data used for the VaR calculation might indicate higher or lower levels of portfolio diversification than will be experienced. In order for the VaR model to reflect current market conditions, we update the historical data underlying our VaR model on a weekly basis, or more frequently during periods of market stress, and regularly review the assumptions underlying the model. A minor portion of risks related to our trading positions is not included in VaR. These risks are reviewed as part of our ICAAP. For more information regarding ICAAP, see Capital Management on page 48.

GRM continually reviews, evaluates and enhances our VaR model so that it reflects the material risks in our trading portfolio. Changes to the VaR model are reviewed and approved prior to implementation, and any material changes are reported to management through the appropriate management committees.

Trading limits on quantitative risk measures, including VaR, are independently set by Global Markets Risk Management and reviewed on a regular basis so that trading limits remain relevant and within our overall risk appetite for market risks. Trading limits are reviewed in the context of market liquidity, volatility and strategic business priorities. Trading limits are set at both a granular level to allow for extensive coverage of risks as well as at aggregated portfolios to account for correlations among risk factors. All trading limits are approved at least annually. Approved trading limits are stored and tracked in a centralized limits management system. Trading limit excesses are communicated to management for review. Certain quantitative market risk measures and corresponding limits have been identified as critical in the Corporation’s Risk Appetite Statement. These risk appetite limits are reported on a daily basis and are approved at least annually by the ERC and the Board.

In periods of market stress, Global Markets senior leadership communicates daily to discuss losses, key risk positions and any limit excesses. As a result of this process, the businesses may selectively reduce risk.

Table 42 presents the total market-based portfolio VaR, which is the combination of the total trading positions portfolio and the fair value option portfolio. Prior to the first quarter of 2025, the Corporation presented its VaR using a total market-based portfolio VaR, which was primarily a combination of our total covered positions and certain less liquid trading positions. An insignificant amount of banking book positions was included in these portfolios. Beginning in the first quarter of 2025, the VaR amounts for all periods presented in Table 42 and Table 43 exclude those banking book positions and include only the financial instruments used in the Corporation’s market risk management of its trading portfolios.

In addition, Table 42 presents our fair value option portfolio, which includes substantially all of the funded and unfunded exposures for which we elect the fair value option, and their corresponding hedges. Additionally, market risk VaR for trading activities, as presented in Table 42, differs from VaR used for regulatory capital calculations due to the holding period used.

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The holding period for VaR used for regulatory capital calculations is 10 days, while for the market risk VaR presented below, it is one day. Both measures utilize the same process and methodology.

The total market-based portfolio VaR results in Table 42 include market risk to which we are exposed from all business segments’ trading activities, which exclude credit valuation

adjustment (CVA), DVA and related hedges. The majority of this portfolio is within the Global Markets segment.

Table 42 presents year-end, average, high and low daily trading VaR for 2025 and 2024 using a 99 percent confidence level. The annual average of total trading positions portfolio VaR marginally increased for 2025 compared to 2024, with modest changes across asset classes.

Table 42

Market Risk VaR for Trading Activities

2025

2024

(Dollars in millions)

Year

End

Average

High (1)

Low (1)

Year

End

Average

High (1)

Low (1)

Foreign exchange

$

14 

$

16 

$

36 

$

9 

$

24 

15 

$

27 

$

5 

Interest rate

37 

52 

90 

29 

65 

58 

94 

31 

Credit

34 

46 

67 

32 

56 

51 

60 

44 

Mortgage

26 

32 

43 

26 

27 

36 

51 

26 

Equity

20 

24 

63 

13 

20 

21 

34 

12 

Commodities

10 

9 

13 

7 

9 

10 

17 

7 

Portfolio diversification

(97)

(107)

n/a

n/a

(114)

(124)

n/a

n/a

Total trading positions portfolio VaR

44 

72 

119 

42 

87 

67 

89 

53 

Fair value option loans

17 

20 

35 

12 

31 

19 

45 

12 

Fair value option hedges

7 

13 

28 

6 

22 

10 

26 

5 

Fair value option portfolio diversification

(10)

(20)

n/a

n/a

(34)

(16)

n/a

n/a

Total fair value option portfolio

14 

13 

20 

8 

19 

13 

24 

10 

Portfolio diversification

(9)

(7)

n/a

n/a

(8)

(7)

n/a

n/a

Total market-based portfolio

$

49 

$

78 

127 

46 

$

98 

$

73 

100 

59 

(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

The following graph presents the trading positions portfolio VaR for 2025, corresponding to the data in Table 42.

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Additional VaR statistics produced within our single VaR model are provided in Table 43 at the same level of detail as in Table 42. 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 43 presents average trading VaR statistics at 99 percent and 95 percent confidence levels for 2025 and 2024.

Table 43

Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics

December 31, 2025

December 31, 2024

(Dollars in millions)

99 percent

95 percent

99 percent

95 percent

Foreign exchange

$

16 

$

8 

$

15 

$

7 

Interest rate

52 

27 

58 

32 

Credit

46 

20 

51 

27 

Mortgage

32 

17 

36 

20 

Equity

24 

12 

21 

10 

Commodities

9 

6 

10 

6 

Portfolio diversification

(107)

(58)

(124)

(68)

Total trading positions portfolio VaR

72 

32 

67 

34 

Fair value option loans

20 

11 

19 

11 

Fair value option hedges

13 

7 

10 

6 

Fair value option portfolio diversification

(20)

(11)

(16)

(10)

Total fair value option portfolio

13 

7 

13 

7 

Portfolio diversification

(7)

(5)

(7)

(3)

Total market-based portfolio

$

78 

$

34 

$

73 

$

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. A backtesting excess occurs when a trading loss exceeds the VaR for the corresponding day. These excesses are evaluated to understand the positions and market moves that produced the trading loss with a goal to help confirm that the VaR methodology accurately represents those losses. We expect the frequency of trading losses in excess of VaR to be in line with the confidence level of the VaR statistic being tested. For example, with a 99 percent confidence level, we expect one trading loss in excess of VaR every 100 days or between two to three trading losses in excess of VaR over the course of a year. The number of backtesting excesses observed can differ from the statistically expected number of excesses if the current level of market volatility is materially different than the level of market volatility that existed during the three years of historical data used in the VaR calculation.

The trading revenue used for backtesting is defined by regulatory agencies in order to most closely align with the VaR component of the regulatory capital calculation. This revenue differs from total trading-related revenue in that it excludes revenue from trading activities that either do not generate market risk or for which the market risk cannot be included in VaR. Some examples of the types of revenue excluded for backtesting are fees, commissions, reserves, net interest income and intra-day trading revenues.

We conduct daily backtesting on the VaR results used for regulatory capital calculations as well as at the level of key legal entities. These results are reported to senior management, who regularly review and evaluate the results of these tests.

During 2025, there were no days where this subset of trading revenue had losses that exceeded our total covered portfolio VaR, utilizing a one-day holding period.

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 on fair value, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements. Trading-related revenue can be volatile and is largely driven by general market conditions and customer demand. Also, trading-related revenue is dependent on the volume and type of transactions, the level of risk assumed, and the volatility of price and rate movements at any given time within the ever-changing market environment. Significant daily revenue by business is monitored and the primary drivers of these are reviewed.

The following histogram is a graphic depiction of trading volatility and illustrates the daily level of trading-related revenue for 2025 and 2024. During 2025, positive trading-related revenue was recorded for more than 99 percent of the trading days, of which 95 percent were daily trading gains of over $25 million, and the largest loss was $2 million. This compares to 2024 where positive trading-related revenue was recorded for more than 99 percent of the trading days, of which 94 percent were daily trading gains of over $25 million, and the largest loss was $12 million.

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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.

A set of scenarios, categorized as either historical or hypothetical, are computed daily for the overall trading portfolio and individual businesses. These scenarios include shocks to underlying market risk factors that may be well beyond the shocks found in the historical data used to calculate VaR. Historical scenarios simulate the impact of the market moves that occurred during a period of extended historical market stress. Generally, a multi-week period representing the most severe point during a crisis is selected for each historical scenario. Hypothetical scenarios provide estimated portfolio impacts from potential future market stress events. Scenarios are reviewed and updated in response to changing positions and new economic or political information. In addition, new or ad hoc scenarios are developed to address specific potential market events or particular vulnerabilities in the portfolio. The stress tests are reviewed on a regular basis and the results are presented to senior management.

Stress testing for the trading portfolio is integrated with enterprise-wide stress testing and incorporated into the limits framework. The macroeconomic scenarios used for enterprise-wide stress testing purposes differ from the typical trading portfolio scenarios in that they have a longer time horizon and the results are forecasted over multiple periods for use in consolidated capital and liquidity planning. For more information, see Managing Risk on page 88.

Interest Rate Risk Management for the Banking Book

The following discussion presents net interest income for banking book activities.

Interest rate risk represents the most significant market risk exposure to our banking book balance sheet. Interest rate risk is measured as the potential change in net interest income caused by movements in market interest rates. Client-facing

activities, primarily lending and deposit-taking, create interest rate sensitive positions on our balance sheet.

We prepare forward-looking forecasts of net interest income. The baseline forecast takes into consideration expected future business growth, ALM positioning and the future direction of interest rate movements as implied by market-based forward curves.

We then measure and evaluate the impact that alternative interest rate scenarios have on the baseline forecast in order to assess interest rate sensitivity under varied conditions. The net interest income forecast is frequently updated for changing assumptions and differing outlooks based on economic trends, market conditions and business strategies. Thus, we continually monitor our banking book balance sheet position in order to maintain an acceptable level of exposure to interest rate changes.

The interest rate scenarios that we analyze incorporate balance sheet assumptions such as loan and deposit growth and pricing, changes in funding mix, product repricing, maturity characteristics and investment securities premium amortization. Our overall goal is to manage interest rate risk so that movements in interest rates do not significantly adversely affect earnings and capital.

Table 44 presents the spot and 12-month forward rates used in developing the forward curve used in our baseline forecasts at December 31, 2025 and 2024.

Table 44

Forward Rates

December 31, 2025

Federal

Funds

SOFR

10-Year

SOFR

Spot rates

3.75 

%

3.87 

%

3.80 

%

12-month forward rates

3.25 

3.11 

3.89 

December 31, 2024

Spot rates

4.50 

%

4.49 

%

4.07 

%

12-month forward rates

4.00 

3.94 

4.07 

Table 45 shows the potential pretax impact to forecasted net interest income over the next 12 months from December 31, 2025 and 2024 resulting from instantaneous parallel and non-parallel shocks to the market-based forward curve.

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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.

Table 45

Estimated Banking Book Net Interest Income Sensitivity to Curve Changes

Short

Rate (bps)

Long

Rate (bps)

December 31

(Dollars in billions)

2025

2024

Parallel Shifts

 +100 bps instantaneous shift

+100

+100

$

0.7 

$

1.1 

 -100 bps instantaneous shift

-100

-100

(2.0)

(2.3)

 +200 bps instantaneous shift

+200

+200

0.8 

2.0 

 -200 bps instantaneous shift

-200

-200

(4.9)

(5.4)

Flatteners

Short-end instantaneous change

+100

— 

0.5 

1.1 

Long-end instantaneous change

— 

-100

(0.3)

(0.1)

Steepeners

Short-end instantaneous change

-100 

— 

(1.7)

(2.1)

Long-end instantaneous change

— 

+100

0.3 

0.1 

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 49.

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 45 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 are 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 are 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 45. 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

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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 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.

Interest rate risk and market risk can be substantial in the mortgage business. Changes in interest rates and other market factors impact the volume of mortgage originations. Changes in interest rates also impact the value of interest rate lock commitments and the related residential first mortgage loans held-for-sale, as well as the value of the MSRs. An increase in mortgage interest rates typically leads to a decrease in the value of these instruments. Conversely, when there is an increase in interest rates, the value of the MSRs will increase driven by lower prepayment expectations. 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.

Compliance and Operational Risk Management

Compliance risk is the risk of legal or regulatory sanctions, material financial loss or damage to the reputation of the Corporation arising from the failure of the Corporation to comply with the requirements of applicable LRRs and our internal policies and procedures (collectively, applicable LRRs). We are subject to comprehensive and evolving regulation under federal and state laws, rules and regulations in the U.S. and the laws of the various jurisdictions in which we operate, including those related to financial crimes and anti-money laundering, market conduct, trading activities, fair lending, privacy, data protection, development and use of AI, and unfair, deceptive or abusive acts or practices.

Operational risk is the risk of loss resulting from inadequate or failed internal processes or systems, people or external events, and includes legal risk. Operational risk may occur anywhere in the Corporation, including third-party business processes, and is not limited to operations functions. The Corporation faces a number of key operational risks including third-party risk, model risk, conduct risk, technology risk, information security risk and data risk. The pace of technological change, including in the field of AI, may heighten risks in those areas. Operational risk can result in financial losses and reputational impacts and is a component in the calculation of total RWA used in the Basel 3 capital calculation. For more information on Basel 3 calculations, see Capital Management on page 48.

FLUs and control functions are first and foremost responsible for managing all aspects of their businesses, including their compliance and operational risk. FLUs and control functions are required to understand their business processes and related risks and controls, including third-party dependencies and the related regulatory requirements, and monitor and report on the effectiveness of the control environment. In order to actively monitor and assess the performance of their processes and controls, they must conduct comprehensive quality assurance activities and identify issues and risks to remediate control gaps and weaknesses. FLUs and control functions must also adhere to compliance and operational risk appetite limits to meet strategic, capital and financial planning objectives. Finally, FLUs and control functions are responsible for the proactive identification, management and escalation of compliance and operational risks across the Corporation. Collectively, these efforts are important to strengthen their compliance and operational resiliency, which is the ability to deliver critical operations through disruption. To address AI-related risks, we have implemented internal processes and governance frameworks. These measures help with regulatory compliance and responsible use of AI across our operations.

Global Compliance and Operational Risk teams independently assess compliance and operational risk, monitor business activities and processes and evaluate FLUs and control functions for adherence to applicable LRRs, including identifying issues and risks, and reporting on the state of the control environment. Corporate Audit provides an independent assessment and validation through testing of key compliance and operational risk processes and controls across the Corporation.

The Corporation's Global Compliance – Enterprise Policy and Operational Risk Management – Enterprise Policy set the requirements for reporting compliance and operational risk information to executive management as well as the Board or appropriate Board-level committees and reflect Global Compliance and Operational Risk’s responsibilities for conducting independent oversight of the Corporation’s compliance and operational risk management activities. The Board provides oversight of compliance risk through its Audit Committee and the ERC, and operational risk through its ERC.

Cybersecurity

Risk Management and Strategy

Cybersecurity is a key operational risk facing the Corporation. We, our employees, customers, regulators, third parties and other entities, platforms, systems and networks upon which we rely to operate our business are ongoing targets of an increasing number of cybersecurity threats and cyberattacks and, accordingly, the Corporation devotes considerable resources to the establishment and maintenance of processes for assessing, identifying and managing cybersecurity risk through its global workforce and 24/7 cyber operations centers. The Corporation takes a cross-functional approach to addressing cybersecurity risk, with our Global Technology, Global Risk Management, Legal and Corporate Audit functions playing key roles. In addition, the Corporation’s processes related to cybersecurity risk are an element of and integrated with the Corporation’s comprehensive risk program, including our risk framework. For more information on the Corporation’s Cybersecurity risk, see Item 1A. Risk Factors – Business Operations beginning on page 14. For more information on our approach to risk management, including our risk management governance framework, see Managing Risk on page 45.

81 Bank of America

As part of the Corporation’s overall risk management program, the Corporation’s Global Information Security (GIS) Program is supported by three lines of defense. As the first line of defense, the GIS team is responsible for the day-to-day management of the GIS Program, which includes defining policies and procedures designed to safeguard the Corporation’s information systems and the information those systems collect, process, maintain, use, share, disseminate and dispose of. As the second line of defense, Global Compliance and Operational Risk independently assesses, monitors and tests cybersecurity risk across the Corporation, as well as the effectiveness of the GIS Program. As the third line of defense, Corporate Audit conducts additional independent review and validation of the first-line and second-line processes and functions.

The Corporation seeks to mitigate cybersecurity risk and associated legal, financial, reputational, operational and/or regulatory risks by employing a multi-faceted GIS Program, through various policies and procedures, that are focused on governing, preparing for, identifying, preventing, detecting, mitigating, responding to and recovering from cybersecurity threats and incidents, including those suffered by the Corporation and its third-party service providers, as well as effectively operating the Corporation’s processes. Our business continuity policies and procedures are designed to maintain the availability of business functions and enable impacted units within the Corporation and its third-party service providers to achieve strategic objectives in the event of a cybersecurity incident. In accordance with the Corporation’s cyber incident response framework, GIS, including its incident response team, tracks, documents, responds to and analyzes cybersecurity threats and cybersecurity incidents, including those experienced by the Corporation’s third-party service providers that may impact the Corporation. Additionally, the Corporation has a process for assembling multi-stakeholder executive response teams to monitor and coordinate cross-functional responses to certain cybersecurity incidents.

As part of the GIS Program, the Corporation leverages both internal and external assessments and industry partnerships. The Corporation engages third-party assessors, consultants, auditors and other third-party professionals to evaluate and test its cybersecurity program and provide guidance on operating and improving the GIS Program, including the design and operational effectiveness of the security and resiliency of our information systems.

The Corporation focuses on and has processes to oversee cybersecurity risk associated with its third-party service providers. As part of its cybersecurity risk management processes, the Corporation maintains an enterprise-wide program that defines standards for the planning, sourcing, management, and oversight of third-party relationships and third-party access to its information system, facilities, and/or confidential or proprietary data. The Corporation has established security requirements applicable to third-party service providers, and where permitted by contract, cybersecurity diligence is conducted to assess the alignment of third-party service providers’ cybersecurity programs with the Corporation’s cybersecurity requirements.

While we and our third parties have experienced cybersecurity incidents, as well as adverse impacts from such incidents, we have not experienced material losses or other material consequences relating to cybersecurity incidents experienced by us or our third parties. However, we expect that the Corporation, our third parties, and other entities, platforms, systems and networks upon which we rely to operate our

business will experience cybersecurity incidents resulting in adverse impacts with increased frequency and severity due to the evolving threat environment, including the increasing use of AI for cybersecurity threat and cyberattack purposes and campaigns involving nation states or their proxies, and there can be no assurance that future cybersecurity incidents, including incidents experienced by third parties, will not have a material adverse impact on the Corporation, including its business strategy, results of operations and/or financial condition.

Governance

Through established governance structures, the Corporation has policies and procedures to help facilitate oversight of cybersecurity risk. In accordance with these policies and procedures, the Corporation’s three lines of defense, and management, strive to prepare for, identify, prevent, detect, mitigate, respond to and recover from cybersecurity threats and incidents, monitor performance, and escalate to executive management, the committees of the Corporation’s Board and/or to the Board, as appropriate. Additionally, GIS reports cybersecurity incidents that meet certain criteria to the Legal Department for evaluation of materiality and potential escalation and disclosure, which includes the consideration of relevant quantitative and qualitative factors.

The Board is actively engaged in the oversight of the GIS Program and devotes time and attention to the oversight and mitigation of cybersecurity risk. The Board, which includes members with technology and cybersecurity experience, oversees management’s approach to staffing and the policies and procedures to address cybersecurity risk. The Board and its ERC, which is responsible for reviewing cybersecurity risk, each receive regular presentations, memoranda and reports from our Chief Technology and Information Officer (CTIO) and our Chief Information Security Officer (CISO) on internal and external cybersecurity developments, threats and risks.

The Board receives prompt and timely information from management on cybersecurity incidents, including cybersecurity incidents experienced by the Corporation’s third-party service providers, that may pose significant risk to the Corporation, and continues to receive regular reports on any such incidents until their conclusion. Additionally, the Board receives quarterly reports on the performance metrics for the GIS Program and the performance of the Corporation’s cybersecurity risk appetite metrics, including metrics on vulnerabilities and third-party cybersecurity risks and incidents, and is notified promptly if a Board-level cybersecurity risk limit is breached.

Our ERC also annually reviews and approves our GIS Program and our Information Security Policy, which establish administrative, technical, and physical safeguards designed to protect the security, confidentiality, availability and integrity of customer records and information in accordance with the Gramm-Leach-Bliley Act and the interagency guidelines issued thereunder, and applicable laws globally.

Under the Board’s oversight, management works closely with key stakeholders, including regulators, government agencies, law enforcement, peer institutions and industry groups, and develops and invests in talent and innovative technology in order to better manage cybersecurity risk.

Our most senior cybersecurity employees are the CTIO and CISO, who are primarily responsible for managing and assessing cybersecurity risk. The CISO oversees a team of more than 3,400 information security professionals spanning the globe. The CISO and the GIS senior leadership team have deep cybersecurity expertise, with over 200 years of collective

Bank of America 82

experience working in the cybersecurity field, at the Corporation, in government, and other companies in various industries. Additionally, certain members of the GIS leadership team hold leadership roles in sector-specific information and infrastructure security organizations, including the Financial Services Information Sharing and Analysis Center and the Financial Services Sector Coordinating Council. Employees across the Corporation also play a role in protecting the Corporation from cybersecurity threats and receive periodic training and education on cybersecurity-related topics.

Reputational Risk Management

Reputational risk is the risk that negative perception of the Corporation may materially impact its financial condition. Reputational risk may result from many of the Corporation’s activities, including those related to the management of strategic, operational, compliance, liquidity, market (price and interest rate) and credit risks.

The Corporation manages reputational risk through established policies and controls embedded throughout its business and risk management processes. We proactively monitor and identify potential reputational risk events and have processes established to mitigate reputational risks in a timely manner. If reputational risk events occur, we focus on remediating the underlying issue and taking action to minimize damage to the Corporation’s reputation. The Corporation has processes in place to respond to events that give rise to reputational risk, including implementing communication strategies to mitigate the impact. The Corporation’s organization and governance structure provides oversight of reputational risks through management and Board committees. Each FLU has an MRC that is responsible for the oversight of reputational risk, including decisions where elevated levels of reputational risks are present. Additionally, reputational risk reporting is provided to senior management and the Board regularly.

Critical Accounting Estimates

Our significant accounting principles are described in Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements and are essential in understanding the MD&A. The application of the accounting principles may involve the use of complex judgments, significant subjectivity, and extensive modeling techniques to estimate the values of assets and liabilities, particularly those related to credit exposures, fair value measurements, and other areas sensitive to changes in economic, market or borrower-specific conditions. These estimates are critical to the application of GAAP and are essential to understanding our reported financial condition, operating performance, and the comparability of results across reporting periods.

In developing these estimates, the Corporation employs established governance frameworks, including formal model‑risk management, independent validation and internal control processes to assess and select the relevant variables, assumptions and inputs that most appropriately reflect reasonable expectations at the time the estimates are made. Because these estimates involve matters that may be difficult to measure or that are sensitive to evolving credit, economic or market conditions, actual results may differ from estimated amounts as new information becomes available or as underlying conditions change.

Key variables, assumptions and inputs used in these estimates may fluctuate after the balance sheet date due to changes in credit conditions, interest rates, liquidity dynamics and broader market developments, which may materially impact

our financial condition or operating performance. These changes reflect inherent uncertainty in the economic and market environment and should not be interpreted as deficiencies in the Corporation’s models, methodologies or inputs. The Corporation’s critical accounting estimates, including the nature of the underlying estimation uncertainty and their potential effect on our results, are disclosed in the following discussion.

Allowance for Credit Losses

The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments. Our process for determining the allowance for credit losses is discussed in Note 1 – Summary of Significant Accounting Principles and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

The determination of the allowance for credit losses is based on numerous estimates and assumptions, which require a high degree of judgment and are often interrelated. A critical judgment in the process is the weighting of our forward-looking macroeconomic scenarios that are incorporated into our quantitative models. As any one economic outlook is inherently uncertain, the Corporation uses multiple macroeconomic scenarios in its CECL calculation, which have included a baseline scenario derived from consensus estimates, an adverse scenario reflecting a moderate recession, a downside scenario reflecting continued inflation, a tail risk scenario similar to the severely adverse scenario used in stress testing and an upside scenario that considers the potential for improvement above the baseline scenario. The overall economic outlook is weighted to reflect a moderate growth environment, with lower gross domestic product (GDP) growth and higher unemployment rate expectations as compared to what we experienced in 2025. Generally, as the consensus estimates improve or deteriorate, the allowance for credit losses will change in a similar direction.

There are multiple variables that drive the macroeconomic scenarios with the key variables including, but not limited to, U.S. real GDP and unemployment rates. As of December 31, 2025, the latest consensus estimate for the U.S. average unemployment rate for the fourth quarter of 2025 was 4.5 percent, and U.S. real GDP was forecasted to grow 1.7 percent year-over-year in the fourth quarter of 2025, reflecting a strong labor market and consistent levels of growth compared to our macroeconomic outlook as of December 31, 2024, and were factored into our allowance for credit losses estimate as of December 31, 2025. In addition, the table below presents the weighted macroeconomic outlook for U.S. average unemployment rate and U.S. real GDP growth rate.

Table 46

Key Allowance Variables

Quarterly Average

4Q Year 1 (1)

4Q Year 2 (1)

U.S. Unemployment

   December 31, 2024 forecast

4.8 

%

4.7 

%

   December 31, 2025 forecast

5.0 

4.9 

Year-Over-Year

4Q Year 1 (1)

4Q Year 2 (1)

U.S. Real GDP Growth

   December 31, 2024 forecast

1.4 

%

1.8 

%

   December 31, 2025 forecast

1.4 

1.8 

(1)Represents the forecasted weighted economic outlook one and two years out from the reporting date.

83 Bank of America

In addition to the above judgments and estimates, the allowance for credit losses can also be impacted by unanticipated changes in asset quality of the portfolio, such as increases or decreases in credit and/or internal risk ratings in our commercial portfolio, improvement or deterioration in borrower delinquencies or credit scores in our credit card portfolio and increases or decreases in home prices, which is a primary driver of LTVs, in our consumer real estate portfolio, all of which have some degree of uncertainty. The allowance for credit losses increased $44 million from $14.3 billion at December 31, 2024 to $14.4 billion as of December 31, 2025, as increases in the U.S. Commercial allowance were partially offset by decreases in the credit card and commercial real estate portfolios.

To provide an illustration of the sensitivity of the macroeconomic scenarios and other assumptions on the estimate of our allowance for credit losses, the Corporation compared the December 31, 2025 modeled CECL from the baseline scenario to our adverse scenario. Relative to the baseline scenario, the adverse scenario assumed a peak U.S. unemployment rate of approximately two percentage points higher than the baseline scenario, a decline in U.S. real GDP followed by a prolonged recovery and a lower home price outlook with a difference of approximately 18 percent at the trough. This sensitivity analysis resulted in a hypothetical increase in the allowance for credit losses of approximately $4.2 billion.

While the sensitivity analysis may be useful to consider how changes in certain macroeconomic assumptions could impact our baseline CECL, it should not be relied upon as a forecast of how our allowance for credit losses is expected to change in a different macroeconomic outlook. Ultimately, the estimate of the allowance for credit losses is dependent upon a variety of potential factors including, but not limited to, qualitative assessments, weighting of alternate macroeconomic scenarios and changes in portfolio mix that would need to be considered comprehensively in determining the allowance for credit losses. Due to the uncertainty in predicting these factors, they are not incorporated into the sensitivity analysis.

Fair Value of Financial Instruments

Under applicable accounting standards, we are required to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value. We classify fair value measurements of financial instruments and MSRs based on the three-level fair value hierarchy in the accounting standards.

The fair values of assets and liabilities may include adjustments, such as market liquidity and credit quality, where appropriate. Valuations of products using models or other techniques are sensitive to assumptions used for the significant inputs. Where market data is available, the inputs used for valuation reflect that information as of our valuation date. Inputs to valuation models are considered unobservable if they are supported by little or no market activity. In periods of extreme volatility, lessened liquidity or in illiquid markets, there may be more variability in market pricing or a lack of market data to use in the valuation process. In keeping with the prudent application of estimates and management judgment in determining the fair value of assets and liabilities, we have in place various processes and controls that include: a model validation policy that requires review and approval of quantitative models used for deal pricing, financial statement fair value determination and risk quantification; a trading product valuation policy that requires verification of all traded product valuations; and a periodic review and substantiation of daily profit and loss

reporting for all traded products. Primarily through validation controls, we utilize both broker and pricing service inputs which can and do include both market-observable and internally-modeled values and/or valuation inputs. Our reliance on this information is affected by our understanding of how the broker and/or pricing service develops its data with a higher degree of reliance applied to those that are more directly observable and lesser reliance applied to those developed through their own internal modeling. For example, broker quotes in less active markets may only be indicative and therefore less reliable. These processes and controls are performed independently of the business. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option to the Consolidated Financial Statements.

Level 3 Assets and Liabilities

Financial assets and liabilities, and MSRs, where values are based on valuation techniques that require inputs that are both unobservable and are significant to the overall fair value measurement are classified as Level 3 under the fair value hierarchy established in applicable accounting standards. The fair value of these Level 3 financial assets and liabilities and MSRs is determined using pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value requires significant management judgment or estimation.

Level 3 financial instruments may be hedged with derivatives classified as Level 1 or 2; therefore, gains or losses associated with Level 3 financial instruments may be offset by gains or losses associated with financial instruments classified in other levels of the fair value hierarchy. The Level 3 gains and losses recorded in earnings did not have a significant impact on our liquidity or capital. We conduct a review of our fair value hierarchy classifications on a quarterly basis. Transfers into or out of Level 3 are made if the significant inputs used in financial models measuring the fair values of the assets and liabilities became unobservable or observable, respectively, in the current marketplace, or when previously insignificant unobservable and observable inputs become significant, respectively. For more information on transfers into and out of Level 3 during 2025, 2024 and 2023, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements.

Accrued Income Taxes and Deferred Tax Assets

Accrued income taxes, reported as a component of either other assets or accrued expenses and other liabilities on the Consolidated Balance Sheet, represent the net amount of current income taxes we expect to pay to or receive from various taxing jurisdictions attributable to our operations to date. We currently file income tax returns in more than 60 states and municipalities and more than 40 non-U.S. jurisdictions and consider many factors, including statutory, judicial and regulatory guidance, in estimating the appropriate accrued income taxes for each jurisdiction.

Net deferred tax assets, reported as a component of other assets on the Consolidated Balance Sheet, represent the net decrease in taxes expected to be paid in the future because of net operating loss (NOL) and tax credit carryforwards and because of future reversals of temporary differences in the bases of assets and liabilities as measured by tax laws and their bases as reported in the financial statements. NOL and tax credit carryforwards result in reductions to future tax liabilities, and many of these attributes can expire if not utilized within certain periods. We consider the need for valuation allowances

Bank of America 84

to reduce net deferred tax assets to the amounts that we estimate are more likely than not to be realized.

Consistent with the applicable accounting guidance, we monitor relevant tax authorities and change our estimates of accrued income taxes and/or net deferred tax assets due to changes in income tax laws and their interpretation by the courts and regulatory authorities. These revisions of our estimates, which also may result from our income tax planning and from the resolution of income tax audit matters, may be material to our operating results for any given period.

See Note 19 – Income Taxes to the Consolidated Financial Statements for a table of significant tax attributes and additional information. For more information, see Item 1A. Risk Factors – Regulatory, Compliance and Legal.

Goodwill and Intangible Assets

The nature of and accounting for goodwill and intangible assets are discussed in Note 1 – Summary of Significant Accounting Principles and Note 7 – Goodwill and Intangible Assets to the Consolidated Financial Statements.

Table 47

Goodwill by Reporting Segment

December 31

(Dollars in millions)

2025

2024

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, 2025 using a quantitative assessment for the Consumer Banking reporting unit and a qualitative assessment for the remaining six reporting units. The quantitative assessment was performed for Consumer Banking because the Corporation combined its Consumer Lending and Deposits reporting units into a single reporting unit to correspond with the change in reporting structure that occurred in the Consumer Banking segment in the first quarter of 2025.

For the quantitative assessment, we compared the fair value of the reporting unit to its carrying value, as measured by allocated equity. The fair value was estimated based on the combination of an income approach (which utilizes the present value of cash flows to estimate fair value) and a market multiplier approach (which utilizes observable market prices and metrics of peer companies to estimate fair value). The cash flows used in the income approach were based on the Corporation’s three-year internal forecasts along with long-term terminal growth values, which were discounted at 10.50 percent. The discount rate was derived from a capital asset pricing model that incorporates the risk and uncertainty in the cash flow forecasts, the financial markets and industries similar to the reporting units. The market multiplier approach utilized various market multiples, primarily pricing multiples, from comparable publicly-traded companies in industries similar to the reporting unit. In addition, a control premium was factored in based upon observed comparable premiums paid for change-in-control transactions for financial institutions.

For the qualitative assessment, we used various factors, including macroeconomic conditions and outlook, industry and market pricing multiples, financial performance and other relevant reporting unit considerations, to support that it is not more likely than not that the fair value of the reporting units is less than the reporting units’ carrying value.

Based on our assessments, we have concluded that none of our reporting units are at risk of impairment, as each of the reporting units’ fair values are substantially in excess of their carrying values.

Certain Contingent Liabilities

For more information on the complex judgments associated with certain contingent liabilities, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements.

85 Bank of America

Non-GAAP Reconciliations

Tables 48 and 49 provide reconciliations of certain non-GAAP financial measures to GAAP financial measures.

Table 48

Annual Reconciliations to GAAP Financial Measures (1)

(Dollars in millions, shares in thousands)

2025

2024

2023

Reconciliation of average shareholders’ equity to average tangible shareholders’ equity and average tangible common shareholders’ equity

Shareholders’ equity

$

298,474 

$

292,467 

$

281,861 

Goodwill

(69,021)

(69,021)

(69,022)

Intangible assets (excluding MSRs)

(1,883)

(1,961)

(2,039)

Related deferred tax liabilities

841 

866 

893 

Tangible shareholders’ equity

$

228,411 

$

222,351 

$

211,693 

Preferred stock

(24,039)

(26,487)

(28,397)

Tangible common shareholders’ equity

$

204,372 

$

195,864 

$

183,296 

Reconciliation of year-end shareholders’ equity to year-end tangible shareholders’ equity and year-end tangible common shareholders’ equity

Shareholders’ equity

$

303,243 

$

293,963 

$

290,209 

Goodwill

(69,021)

(69,021)

(69,021)

Intangible assets (excluding MSRs)

(1,841)

(1,919)

(1,997)

Related deferred tax liabilities

825 

851 

874 

Tangible shareholders’ equity

$

233,206 

$

223,874 

$

220,065 

Preferred stock

(25,992)

(23,159)

(28,397)

Tangible common shareholders’ equity

$

207,214 

$

200,715 

$

191,668 

Reconciliation of year-end assets to year-end tangible assets

Assets

$

3,411,738 

$

3,261,299 

$

3,180,515 

Goodwill

(69,021)

(69,021)

(69,021)

Intangible assets (excluding MSRs)

(1,841)

(1,919)

(1,997)

Related deferred tax liabilities

825 

851 

874 

Tangible assets

$

3,341,701 

$

3,191,210 

$

3,110,371 

(1)Presents reconciliations of non-GAAP financial measures to GAAP financial measures. 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 31.

Table 49

Quarterly Reconciliations to GAAP Financial Measures (1)

2025 Quarters

2024 Quarters

(Dollars in millions)

Fourth

Third

Second

First

Fourth

Third

Second

First

Reconciliation of average shareholders’ equity to

average tangible shareholders’ equity and

average tangible common shareholders’ equity

Shareholders’ equity

$

303,873 

$

300,381 

$

295,329 

$

294,187 

$

293,398 

$

293,431 

$

291,943 

$

291,074 

Goodwill

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

Intangible assets (excluding MSRs)

(1,853)

(1,873)

(1,893)

(1,912)

(1,932)

(1,951)

(1,971)

(1,990)

Related deferred tax liabilities

827 

839 

846 

851 

859 

864 

869 

874 

Tangible shareholders’ equity

$

233,826 

$

230,326 

$

225,261 

$

224,105 

$

223,304 

$

223,323 

$

221,820 

$

220,937 

Preferred stock

(25,992)

(25,232)

(22,573)

(22,307)

(23,493)

(25,984)

(28,113)

(28,397)

Tangible common shareholders’ equity

$

207,834 

$

205,094 

$

202,688 

$

201,798 

$

199,811 

$

197,339 

$

193,707 

$

192,540 

Reconciliation of period-end shareholders’ equity to

period-end tangible shareholders’ equity and

period-end tangible common shareholders’ equity

Shareholders’ equity

$

303,243 

$

302,437 

$

298,021 

$

293,949 

$

293,963 

$

294,774 

$

292,340 

$

292,094 

Goodwill

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

Intangible assets (excluding MSRs)

(1,841)

(1,860)

(1,880)

(1,899)

(1,919)

(1,938)

(1,958)

(1,977)

Related deferred tax liabilities

825 

828 

842 

846 

851 

859 

864 

869 

Tangible shareholders’ equity

$

233,206 

$

232,384 

$

227,962 

$

223,875 

$

223,874 

$

224,674 

$

222,225 

$

221,965 

Preferred stock

(25,992)

(25,992)

(23,495)

(20,499)

(23,159)

(24,554)

(26,548)

(28,397)

Tangible common shareholders’ equity

$

207,214 

$

206,392 

$

204,467 

$

203,376 

$

200,715 

$

200,120 

$

195,677 

$

193,568 

Reconciliation of period-end assets to period-end

tangible assets

Assets

$

3,411,738 

$

3,403,149 

$

3,440,798 

$

3,349,039 

$

3,261,299 

$

3,323,917 

$

3,257,896 

$

3,273,884 

Goodwill

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

(69,021)

Intangible assets (excluding MSRs)

(1,841)

(1,860)

(1,880)

(1,899)

(1,919)

(1,938)

(1,958)

(1,977)

Related deferred tax liabilities

825 

828 

842 

846 

851 

859 

864 

869 

Tangible assets

$

3,341,701 

$

3,333,096 

$

3,370,739 

$

3,278,965 

$

3,191,210 

$

3,253,817 

$

3,187,781 

$

3,203,755 

(1)Presents reconciliations of non-GAAP financial measures to GAAP financial measures. 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 31.

Bank of America 86

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

See Market Risk Management on page 75 in the MD&A and the sections referenced therein for Quantitative and Qualitative Disclosures about Market Risk.

Item 8. Financial Statements and Supplementary Data

Table of Contents

Page

Consolidated Statement of Income

91

Consolidated Statement of Comprehensive Income

91

Consolidated Balance Sheet

92

Consolidated Statement of Changes in Shareholders’ Equity

93

Consolidated Statement of Cash Flows

94

Note 1 – Summary of Significant Accounting Principles

95

Note 2 – Net Interest Income and Noninterest Income

104

Note 3 – Derivatives

105

Note 4 – Securities

113

Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses

116

Note 6 – Securitizations and Other Variable Interest Entities

127

Note 7 – Goodwill and Intangible Assets

131

Note 8 – Leases

132

Note 9 – Deposits

133

Note 10 – Securities Financing Agreements, Short-term Borrowings, Collateral and Restricted Cash

134

Note 11 – Long-term Debt

136

Note 12 – Commitments and Contingencies

137

Note 13 – Shareholders’ Equity

142

Note 14 – Accumulated Other Comprehensive Income

144

Note 15 – Earnings Per Common Share

145

Note 16 – Regulatory Requirements and Restrictions

145

Note 17 – Employee Benefit Plans

147

Note 18 – Stock-based Compensation Plans

151

Note 19 – Income Taxes

151

Note 20 – Fair Value Measurements

153

Note 21 – Fair Value Option

162

Note 22 – Fair Value of Financial Instruments

164

Note 23 – Business Segment Information

165

Note 24 – Parent Company Information

169

Note 25 – Performance by Geographical Area

170

Glossary

171

Acronyms

173

87 Bank of America

Report of Management on Internal Control Over Financial Reporting

The management of Bank of America Corporation is responsible for establishing and maintaining adequate internal control over financial reporting.

The Corporation’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. The Corporation’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and directors of the Corporation; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Corporation’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2025 based on the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework (2013). Based on that assessment, management concluded that, as of December 31, 2025, the Corporation’s internal control over financial reporting is effective.

The Corporation’s internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers, LLP, an independent registered public accounting firm, as stated in their accompanying report which expresses an unqualified opinion on the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2025.

Brian T. Moynihan

Chair and Chief Executive Officer

Alastair M. Borthwick

Executive Vice President and Chief Financial Officer

Bank of America 88