CHARLOTTE, N.C.--(BUSINESS WIRE)--Mar. 14, 2013--
Bank of America today announced that the company’s Board of Directors
authorized the repurchase of up to $5.0 billion of common stock and the
redemption of approximately $5.5 billion in preferred stock.
The Federal Reserve Board has informed the company that it completed its
2013 Comprehensive Capital Analysis and Review and that it did not
object to the company’s capital plan, including proposed capital actions.
"We have simplified our company and we have more than adequate capital
to support our strategic plans. We are well positioned to return excess
capital to our shareholders,” said Chief Executive Officer Brian
Moynihan. “We believe buying back common shares is the best way to
continue to drive value for our shareholders.”
The timing and exact amount of common share repurchases will be
consistent with the company’s capital plan and will be subject to
various factors, including the company’s capital position, liquidity,
financial performance and alternative uses of capital, stock trading
price, and general market conditions, and may be suspended at any time.
The common share repurchases may be effected through open market
purchases or privately negotiated transactions, including Rule 10b5-1
plans, over the next four quarters. The company’s 2013 capital plan did
not include a request to increase the quarterly common stock dividend
rate of $0.01 per share.
The company’s Board of Directors also approved the redemption of all the
outstanding shares of two series of the company’s preferred stock. The
8.20% Non-Cumulative Preferred Stock, Series H, will be redeemed on May
1, 2013, and the 8.625% Non-Cumulative Preferred Stock, Series 8, will
be redeemed on May 28, 2013. The redemption price for each of these
preferred stock series will be 100 percent of the liquidation preference
per share, as specified in the company’s certificate of incorporation.
Notice of redemption for each series, including notice to holders of
depositary shares representing fractional interests in each redeemed
series of preferred stock, will be sent on or around April 1, 2013.
Bank of America
Bank of America is one of the world’s largest
financial institutions, serving individual consumers, small- and
middle-market businesses, institutional investors, large corporations
and governments with a full range of banking, investing, asset
management and other financial and risk management products and
services. We serve approximately 53 million consumer and small business
relationships with approximately 5,500 retail banking offices and
approximately 16,300 ATMs and award-winning online banking with 30
million active users. Bank of America is among the world's leading
wealth management companies and is 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. Bank of America offers industry-leading support to
approximately 3 million small business owners through a suite of
innovative, easy-to-use online products and services. The company serves
clients through operations in more than 40 countries. Bank of America
Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial
Average and is listed on the New York Stock Exchange.
Visit the Bank of America newsroom for more Bank
of America news.
Source: Bank of America
Investors May Contact:
Kevin Stitt, Bank of America, 1.980.386.5667
McEntire, Bank of America, 1.980.388.6780
Reporters May Contact:
Dubrowski, Bank of America, 1.980.388.2840