bac-20260930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from to

Commission file number:

1-6523

Exact name of registrant as specified in its charter:

Bank of America Corporation

State or other jurisdiction of incorporation or organization:

Delaware

IRS Employer Identification No.:

56-0906609

Address of principal executive offices:

Bank of America Corporate Center

Attention: Office of the Corporate Secretary

100 N. Tryon Street; NC1-007-56-06

Charlotte, North Carolina 28255

Registrant’s telephone number, including area code:

(704) 386-5681

Former name, former address and former fiscal year, if changed since last report:

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BAC	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrE	New York Stock Exchange
of Floating Rate Non-Cumulative Preferred Stock, Series E
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrB	New York Stock Exchange
of 6.000% Non-Cumulative Preferred Stock, Series GG
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrK	New York Stock Exchange
of 5.875% Non-Cumulative Preferred Stock, Series HH
7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L	BAC PrL	New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrG	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 1


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrH	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 2
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrJ	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 4
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrL	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 5
Floating Rate Preferred Hybrid Income Term Securities of BAC Capital	BAC/PF	New York Stock Exchange
Trust XIII (and the guarantee related thereto)
5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities	BAC/PG	New York Stock Exchange
of BAC Capital Trust XIV (and the guarantee related thereto)
Income Capital Obligation Notes initially due December 15, 2066 of	MER PrK	New York Stock Exchange
Bank of America Corporation
Senior Medium-Term Notes, Series A, Step Up Callable Notes, due	BAC/31B	New York Stock Exchange
November 28, 2031 of BofA Finance LLC (and the guarantee
of the Registrant with respect thereto)
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrM	New York Stock Exchange
5.375% Non-Cumulative Preferred Stock, Series KK
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrN	New York Stock Exchange
of 5.000% Non-Cumulative Preferred Stock, Series LL
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrO	New York Stock Exchange
4.375% Non-Cumulative Preferred Stock, Series NN
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrP	New York Stock Exchange
4.125% Non-Cumulative Preferred Stock, Series PP
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrQ	New York Stock Exchange
4.250% Non-Cumulative Preferred Stock, Series QQ
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrS	New York Stock Exchange
of 4.750% Non-Cumulative Preferred Stock, Series SS

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).

Yes ☐ No ☑

On October 29, 2026, there were 6,900,209,006 shares of Bank of America Corporation Common Stock outstanding.

Bank of America Corporation and Subsidiaries

September 30, 2026

Form 10-Q

INDEX

Part I. Financial Information


Item 1. Financial Statements						Page
Consolidated Statement of Income						47
Consolidated Statement of Comprehensive Income						47
Consolidated Balance Sheet						48
Consolidated Statement of Changes in Shareholders’ Equity						49
Consolidated Statement of Cash Flows						50
Notes to Consolidated Financial Statements						51
Note 1 – Summary of Significant Accounting Principles						51
Note 2 – Net Interest Income and Noninterest Income						52
Note 3 – Derivatives						53
Note 4 – Securities						60
Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses						63

Note 6 – Securitizations and Other Variable Interest Entities						74
Note 7 – Goodwill and Intangible Assets						79
Note 8 – Leases						79
Note 9 – Securities Financing Agreements, Collateral and Restricted Cash						80
Note 10 – Commitments and Contingencies						81
Note 11 – Shareholders’ Equity						84
Note 12 – Accumulated Other Comprehensive Income (Loss)						85
Note 13 – Earnings Per Common Share						86

Note 14 – Fair Value Measurements						86
Note 15 – Fair Value Option						93
Note 16 – Fair Value of Financial Instruments						95
Note 17 – Business Segment Information						96
Glossary						100
Acronyms						102



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Executive Summary						3
Recent Developments						3
Financial Highlights						4

Supplemental Financial Data						6
Business Segment Operations						10
Consumer Banking						10
Global Wealth & Investment Management						12
Global Banking						14
Global Markets						16

All Other						18
Managing Risk						19

Capital Management						19
Liquidity Risk						24
Credit Risk Management						27
Consumer Portfolio Credit Risk Management						27
Commercial Portfolio Credit Risk Management						32
Non-U.S. Portfolio						38

Allowance for Credit Losses						39
Market Risk Management						41
Trading Risk Management						41
Interest Rate Risk Management for the Banking Book						43
Mortgage Banking Risk Management						45



Critical Accounting Estimates						45
Current Accounting Developments						45
Non-GAAP Reconciliations						46

Item 3. Quantitative and Qualitative Disclosures about Market Risk						46
Item 4. Controls and Procedures						46


1 Bank of America

Part II. Other Information


Item 1. Legal Proceedings						103
Item 1A. Risk Factors						103
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						103
Item 5. Other Information						103
Item 6. Exhibits						104
Signature						104

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Bank of America Corporation (the Corporation) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “outlook,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Corporation’s current expectations, plans or forecasts of its or its business segments’ future results, which may include, among other measures, revenue, liquidity, net interest income, net interest yield, other income, provision for credit losses, expenses, operating leverage, effective tax rate, efficiency ratio, capital measures (including capital measures which utilize tangible common equity), deposits and assets, as well as strategy, future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Corporation’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.

You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K and in any of the Corporation’s subsequent U.S. Securities and Exchange Commission (SEC) filings: the Corporation’s potential judgments, orders, settlements, penalties, fines and reputational damage, which are inherently difficult to predict, including related to the adequacy of the Corporation’s anti-money laundering and economic sanctions compliance programs (including the October 2026 consent orders associated therewith) and 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 and the processing of electronic payments, including through the Zelle network, and related fraud, which are in various stages; in connection with ongoing litigation, the impact of certain changes to Visa’s and Mastercard’s respective card payment network rules and reductions in interchange fees for U.S.-based merchants; the possibility that the Corporation’s future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, and regulatory and government actions; the impact of U.S. and global interest rates (including the potential for fluctuations in interest rates), inflation, currency exchange rates, economic conditions, trade policies and tensions, including changes in, or the imposition of, tariffs and/or

trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, which may have varying effects across industries and geographies, and geopolitical instability; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Corporation’s exposures to such risks, including direct, indirect and operational; the impact of the interest rate, inflationary, macroeconomic, banking and regulatory environment on the Corporation’s assets, business, financial condition and results of operations; the impact of adverse developments affecting the U.S. or global banking industry, including a deterioration in private credit markets, bank failures and liquidity concerns, resulting in worsening economic and market volatility, and regulatory responses thereto; the possibility that future credit losses may be higher than currently expected, including due to changes in economic assumptions, which may include unemployment rates, real estate prices, gross domestic product levels and corporate bond spreads, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties, such as the impact of trade policies, supply chain disruptions, commodity prices, inflationary pressures and labor shortages on economic conditions and our business; potential losses related to the Corporation's concentration of credit risk; the Corporation’s ability to achieve its expense targets (including noninterest expense) and expectations regarding revenue, net interest income, operating leverage, other income, provision for credit losses, net charge-offs, effective tax rate, loan or deposit growth or other projections and targets; variances to the underlying assumptions and judgments used in estimating banking book net interest income sensitivity; adverse changes to the Corporation’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Corporation’s assets and liabilities; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements, stress capital buffer requirements and/or global systemically important bank surcharges; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Corporation’s capital plans; the effect of changes in or interpretations of income tax laws and regulations, including impacts from the 2025 Budget Reconciliation Act; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory interpretations, including recovery and resolution planning requirements, Federal Deposit Insurance Corporation assessments, fiduciary standards, derivatives regulations and potential changes to loss allocations between financial institutions and customers, including for losses incurred from the use of our products and services, including electronic


						Bank of America 2

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 and the ability to achieve expected or potential benefits, such as increased productivity, profitability and cost savings; the risks related to the transition and physical impacts of climate change; our ability to achieve environmental goals or the impact of any changes in the Corporation’s sustainability or human capital management strategy or goals; the impact of uncertain or changing political conditions, federal government shutdowns, including partial shutdowns, and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary, trade or regulatory policy; the emergence of widespread health emergencies or pandemics; the impact of natural disasters, extreme weather events, military conflicts (including the Russia/Ukraine conflict, the conflicts in the Middle East, the possible expansion of such conflicts and potential geopolitical and economic consequences), civil unrest, terrorism or other geopolitical events; and other matters.

Forward-looking statements speak only as of the date they are made, and the Corporation undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

Notes to the Consolidated Financial Statements referred to in Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) are incorporated by reference into the MD&A. Throughout the MD&A, the Corporation uses certain acronyms and abbreviations that are defined in the Glossary.

Executive Summary

Business Overview

The Corporation is a Delaware corporation, a bank holding company (BHC) and a financial holding company. When used in this report, “Bank of America,” “the Corporation,” “we,” “us” and “our” may refer to Bank of America Corporation individually, Bank of America Corporation and its subsidiaries, or certain of Bank of America Corporation’s subsidiaries or affiliates. Our principal executive offices are located in Charlotte, North Carolina. Through our various bank and nonbank subsidiaries throughout the U.S. and in international markets, we provide a diversified range of banking and nonbank financial services and products through four business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets, with the remaining operations recorded in All Other. We operate our banking activities primarily under the Bank of America, National Association (Bank of America, N.A. or BANA) charter. At September 30, 2026, the Corporation had $3.4 trillion in assets and a headcount of approximately 210,000 employees. As of September 30, 2026, we served clients through operations across the U.S., its territories and more than 35 countries and/or jurisdictions. Our retail banking footprint covers all major markets in the U.S., and we serve more than 69 million consumer and small business clients with approximately 3,500 retail financial centers, approximately 15,000 automated teller machines (ATMs), and leading digital banking platforms (www.bankofamerica.com) with approximately 50 million active users, including approximately 43 million active mobile users. We offer industry-leading support to approximately four million small business households. Our

GWIM businesses, with client balances of approximately $5.1 trillion, provide tailored solutions to meet client needs through a full set of investment management, brokerage, banking, trust and retirement products. We are a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world.

The Corporation’s website is www.bankofamerica.com, and the Investor Relations portion of our website is https://investor.bankofamerica.com. We use our website to distribute company information, including as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. We routinely post and make accessible financial and other information regarding the Corporation on our website. Investors should monitor our website, including the Investor Relations portion, in addition to our press releases, SEC filings, public conference calls and webcasts. Notwithstanding the foregoing, the information contained on our website as referenced in this paragraph is not incorporated by reference into this Quarterly Report on Form 10-Q.

Recent Developments

Capital Management

On October 21, 2026, the Corporation’s Board of Directors (Board) declared a quarterly common stock dividend of $0.32 per share, payable on December 24, 2026 to shareholders of record as of December 4, 2026.

For more information on our capital resources, see Capital Management beginning on page 19.

Regulatory Settlement

On October 13, 2026, the Office of the Comptroller of the Currency (OCC), the Financial Crimes Enforcement Network (FinCEN), and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced regulatory resolutions related to certain aspects of the Corporation’s U.S. Bank Secrecy Act, Anti-Money Laundering and Economic Sanctions Compliance Programs (Programs). These resolutions included consent orders with the OCC and FinCEN and a settlement agreement with OFAC. As a result, for the third quarter of 2026, the Corporation recorded a $1.2 billion non-tax-deductible charge in noninterest expense to accrue for the civil money penalties resulting from the regulatory consent orders and the settlement agreement (“regulatory settlement charge”).

FinCEN’s consent order and the previously disclosed December 2024 OCC consent order require the Corporation to undertake certain remedial actions to the Programs, including engaging independent consultants to review certain historical transactions, customer due diligence, foreign correspondent account due diligence, and Bank Secrecy Act/anti-money laundering data governance. The Corporation has completed significant steps to satisfy the requirements of the December 2024 OCC consent order. Since late 2023, the Corporation has increased the number of personnel dedicated to these activities and has made investments in technology and other resources supporting the remediation and ongoing compliance. The Corporation does not expect that the ongoing operating costs associated with these remediation and compliance activities will have a significant impact on consolidated noninterest expense in future periods.

For more information, see Note 10 – Commitments and Contingencies to the Consolidated Financial Statements.


3 Bank of America

Financial Highlights



Table 1	Summary Income Statement and Selected Financial Data

		Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions, except per share information)		2026			2025			2026			2025
Income statement
Net interest income		$	16,449		$	15,233		$	48,191		$	44,346
Noninterest income		13,509			13,807			43,597			40,384
Total revenue, net of interest expense		29,958			29,040			91,788			84,730
Provision for credit losses		1,269			1,295			3,972			4,367
Noninterest expense		19,722			17,337			56,880			52,290
Income before income taxes		8,967			10,408			30,936			28,073
Income tax expense		2,034			2,076			6,345			5,211
Net income		6,933			8,332			24,591			22,862
Preferred stock dividends and other		392			429			1,147			1,126
Net income applicable to common shareholders		$	6,541		$	7,903		$	23,444		$	21,736
Per common share information
Earnings		$	0.93		$	1.06		$	3.28		$	2.87
Diluted earnings		0.91			1.04			3.23			2.84
Dividends paid		0.32			0.28			0.88			0.80
Performance ratios
Return on average assets (1)		0.79		%	0.96		%	0.94		%	0.90		%
Return on average common shareholders’ equity (1)		9.41			11.40			11.35			10.63
Return on average tangible common shareholders’ equity (1, 2)		12.60			15.29			15.20			14.30
Efficiency ratio (1)		65.83			59.70			61.97			61.71
								September 30 2026			December 31 2025

Balance sheet
Total loans and leases								$	1,251,260		$	1,185,700
Total assets								3,427,704			3,411,738
Total deposits								2,038,758			2,018,729
Total liabilities								3,130,955			3,108,495
Total common shareholders’ equity								271,753			277,251
Total shareholders’ equity								296,749			303,243

(1)For definitions, see Key Metrics on page 101.

(2)Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to the most directly comparable financial measures defined by accounting principles generally accepted in the United States of America (GAAP), see Non-GAAP Reconciliations on page 46.

Net income was $6.9 billion and $24.6 billion, or $0.91 and $3.23 per diluted share, for the three and nine months ended September 30, 2026 compared to $8.3 billion and $22.9 billion, or $1.04 and $2.84 per diluted share, for the same periods in 2025. The decrease in net income for the three-month period was primarily due to higher noninterest expense and lower noninterest income, partially offset by higher net interest income. The increase in net income for the nine-month period was due to higher net interest income and noninterest income, as well as lower provision for credit losses, partially offset by higher noninterest expense.

Total assets increased $16.0 billion from December 31, 2025 to $3.4 trillion primarily driven by higher loans and leases due to growth in commercial loans, higher securities borrowed or purchased under agreements to resell and higher derivative assets to support Global Markets client activity, as well as higher cash and cash equivalents due to balance sheet positioning, partially offset by lower debt securities due to net sales, maturities, and paydowns, as well as lower trading account assets due to Global Markets client activity.

Total liabilities increased $22.5 billion from December 31, 2025 to $3.1 trillion primarily driven by deposit growth in Global Banking, higher derivative liabilities, customer trade payables, and trading account liabilities to support Global Markets client activity, as well as higher short-term borrowings, partially offset by lower securities loaned or sold under agreements to repurchase driven by balance sheet positioning.

Shareholders’ equity decreased $6.5 billion from December 31, 2025 primarily due to returns of capital to shareholders through common stock repurchases and common and preferred stock dividends, a decrease in accumulated other comprehensive income (OCI) and a preferred stock redemption, partially offset by net income.

Net Interest Income

Net interest income increased $1.2 billion to $16.4 billion, and $3.8 billion to $48.2 billion for the three and nine months ended September 30, 2026 compared to the same periods in 2025. Net interest yield on a fully taxable-equivalent (FTE) basis increased 15 basis points (bps) to 2.16 percent and 12 bps to 2.10 percent for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The increase in the three-month period was primarily driven by loan and deposit growth, higher net interest income related to Global Markets activity, and fixed-asset repricing, partially offset by the impact of lower interest rates. The increase in the nine-month period was primarily driven by higher net interest income related to Global Markets activity, loan and deposit growth, and fixed-asset repricing, partially offset by the impact of lower interest rates. For more information on net interest yield and FTE basis, see Supplemental Financial Data on page 6, and for more information on interest rate risk management, see Interest Rate Risk Management for the Banking Book on page 43.


						Bank of America 4

Noninterest Income



Table 2	Noninterest Income

		Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)		2026		2025		2026		2025
Fees and commissions:
Card income		$	1,561	$	1,629	$	4,637	$	4,793
Service charges		1,676		1,632		5,056		4,808
Investment and brokerage services		5,761		5,063		16,955		14,656
Investment banking fees		1,799		2,013		5,778		4,964
Total fees and commissions		10,797		10,337		32,426		29,221
Market making and similar activities		2,360		3,203		10,174		9,940


Other income (loss)		352		267		997		1,223

Total noninterest income		$	13,509	$	13,807	$	43,597	$	40,384

Noninterest income decreased $298 million to $13.5 billion and increased $3.2 billion to $43.6 billion for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The following highlights the significant changes.

● Service charges increased $44 million and $248 million primarily due to higher treasury service charges.

● Investment and brokerage services increased $698 million and $2.3 billion primarily driven by higher asset management fees reflecting higher market valuations and the impact of positive assets under management (AUM) flows.

● Investment banking fees decreased $214 million for the three-month period due to lower debt issuance and advisory fees. The increase of $814 million in the nine-month period was driven by higher equity issuance, advisory and debt issuance fees.

● Market making and similar activities decreased $843 million for the three-month period, primarily driven by lower trading revenue from credit products in Fixed Income, Currencies and Commodities (FICC), as well as lower income from foreign currency risk management activities. The increase of

$234 million in the nine-month period was primarily driven by higher trading revenue in Equities, partially offset by lower income from foreign currency risk management activities.

● Other income increased $85 million for the three-month period primarily due to relatively higher equity investment expenses recognized in the prior year related to certain tax-related equity investments. The decrease of $226 million in the nine-month period was primarily due to gains recorded on leveraged finance activities in the prior-year period, partially offset by relatively higher equity investment expenses recognized in the prior year related to certain tax-related equity investments placed in service during that period.

Provision for Credit Losses

The provision for credit losses decreased $26 million to $1.3 billion and $395 million to $4.0 billion for the three and nine months ended September 30, 2026 compared to the same periods in 2025. For more information on the provision for credit losses, see Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

Noninterest Expense



Table 3	Noninterest Expense

		Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)		2026		2025		2026		2025
Compensation and benefits		$	10,969	$	10,523	$	33,290	$	31,744
Information processing and communications		2,008		1,827		5,950		5,540
Occupancy and equipment		1,967		1,872		5,781		5,564
Product delivery and transaction related		1,170		1,025		3,623		2,913
Professional fees		606		606		1,762		1,898
Marketing		669		572		1,938		1,641
Other general operating		2,333		912		4,536		2,990
Total noninterest expense		$	19,722	$	17,337	$	56,880	$	52,290

Noninterest expense increased $2.4 billion to $19.7 billion and $4.6 billion to $56.9 billion for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The increases were primarily driven by the $1.2 billion regulatory settlement charge recorded in the third quarter of 2026 and higher revenue-related expenses, as well as continued investments in the business, including technology and marketing for the three-month period, and continued investments in people, technology and marketing for the nine-month period.


5 Bank of America

Income Tax Expense



Table 4	Income Tax Expense

		Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions)		2026			2025			2026			2025
Income before income taxes		$	8,967		$	10,408		$	30,936		$	28,073
Income tax expense		2,034			2,076			6,345			5,211
Effective tax rate		22.7		%	19.9		%	20.5		%	18.6		%

The effective tax rate (ETR) increased for the three months ended September 30, 2026 compared to the same period in 2025 primarily driven by the $1.2 billion discrete non-tax-deductible regulatory settlement charge. The ETR increase for the nine months ended September 30, 2026 compared to the same period in 2025, was primarily driven by lower tax preference benefits relative to pretax earnings and the discrete non-tax-deductible regulatory settlement charge.

Supplemental Financial Data

Non-GAAP Financial Measures

In this Quarterly Report on Form 10-Q, we present certain non-GAAP financial measures. Non-GAAP financial measures exclude certain items or otherwise include components that differ from the most directly comparable measures calculated in accordance with GAAP. Non-GAAP financial measures are provided as additional useful information to assess our financial condition, results of operations (including period-to-period operating performance) or compliance with prospective regulatory requirements. These non-GAAP financial measures are not intended as a substitute for GAAP financial measures and may not be defined or calculated the same way as non-GAAP financial measures used by other companies.

When presented on a consolidated basis, we view net interest income on an FTE basis as a non-GAAP financial measure. To derive the FTE basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, we use the federal statutory tax rate of 21 percent and a representative state tax rate. Net interest yield, which measures the basis points we earn over the cost of funds, utilizes net interest income on an FTE basis. We believe that presentation of these items on an FTE basis allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices.

We may present certain key performance indicators and ratios excluding certain items (e.g., debit valuation adjustment (DVA) gains (losses)), which result in non-GAAP financial measures. We believe that the presentation of measures that exclude these items is useful because such measures provide additional information to assess the underlying operational performance and trends of our businesses and to allow better comparison of period-to-period operating performance.

We also evaluate our business based on certain ratios that utilize tangible common equity, a non-GAAP financial measure. Tangible common equity represents common shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights (MSRs)), net of related deferred tax liabilities (“adjusted” common shareholders’ equity). These measures are used to evaluate our use of equity. In addition, profitability, relationship and investment models use return on average tangible common shareholders’ equity as a key measure to support our overall growth objectives. Measures utilizing tangible common equity 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.

● Tangible common equity ratio represents adjusted ending common 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 common equity provide additional useful information because they present measures of those assets that can generate income. Tangible book value per common share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock.

The aforementioned supplemental data and performance measures are presented in Table 5 on page 7.

For more information on the reconciliation of these non-GAAP financial measures to the corresponding GAAP financial measures, see Non-GAAP Reconciliations on page 46.

Key Performance Indicators

We present certain key financial and nonfinancial performance indicators (key performance indicators) that management uses when assessing our consolidated and/or segment results. We believe they are useful to investors because they provide additional information about our underlying operational performance and trends. These key performance indicators (KPIs) may not be defined or calculated in the same way as similar KPIs used by other companies. For information on how these metrics are defined, see Key Metrics on page 101.

Our consolidated key performance indicators, which include various equity and credit metrics, are presented in Table 1 on page 4, and Table 5 on page 7.

For information on key segment performance metrics, see Business Segment Operations on page 10.


						Bank of America 6




Table 5	Selected Financial Data
																	Nine Months Ended September 30
		2026 Quarters									2025 Quarters
(In millions, except per share information)		Third			Second			First			Fourth			Third			2026			2025
Income statement
Net interest income		$	16,449		$	15,997		$	15,745		$	15,750		$	15,233		$	48,191		$	44,346
Noninterest income		13,509			15,561			14,527			12,617			13,807			43,597			40,384
Total revenue, net of interest expense		29,958			31,558			30,272			28,367			29,040			91,788			84,730
Provision for credit losses		1,269			1,366			1,337			1,308			1,295			3,972			4,367
Noninterest expense		19,722			18,627			18,531			17,437			17,337			56,880			52,290
Income before income taxes		8,967			11,565			10,404			9,622			10,408			30,936			28,073
Income tax expense		2,034			2,491			1,820			1,975			2,076			6,345			5,211
Net income		6,933			9,074			8,584			7,647			8,332			24,591			22,862
Net income applicable to common shareholders		6,541			8,748			8,155			7,319			7,903			23,444			21,736
Average common shares issued and outstanding		7,052.5			7,151.2			7,256.1			7,364.9			7,466.0			7,152.7			7,574.5
Average diluted common shares issued and outstanding		7,222.2			7,294.2			7,417.5			7,546.9			7,627.1			7,312.5			7,724.7
Performance ratios
Return on average assets (1)		0.79		%	1.03		%	0.99		%	0.89		%	0.96		%	0.94		%	0.90		%
Four-quarter trailing return on average assets (2)		0.92			0.97			0.92			0.89			0.88			n/a			n/a
Return on average common shareholders’ equity (1)		9.41			12.71			11.95			10.45			11.40			11.35			10.63
Return on average tangible common shareholders’ equity (1, 3)		12.60			17.03			16.00			13.97			15.29			15.20			14.30
Return on average shareholders’ equity (1)		9.14			12.09			11.51			9.98			11.01			10.91			10.30

Total ending equity to total ending assets		8.66			8.60			8.60			8.89			8.89			8.66			8.89
Common equity ratio (1)		7.93			7.89			7.88			8.13			8.12			7.93			8.12
Total average equity to total average assets		8.67			8.52			8.61			8.86			8.75			8.60			8.71
Dividend payout (1)		34.35			22.77			24.82			28.02			26.31			26.71			27.75
Per common share data
Earnings		$	0.93		$	1.22		$	1.12		$	0.99		$	1.06		$	3.28		$	2.87
Diluted earnings		0.91			1.21			1.11			0.98			1.04			3.23			2.84
Dividends paid		0.32			0.28			0.28			0.28			0.28			0.88			0.80
Book value (1)		39.26			39.34			38.66			38.44			37.72			39.26			37.72
Tangible book value (3)		29.14			29.37			28.84			28.73			28.16			29.14			28.16




Market capitalization		$	376,802		$	399,884		$	347,583		$	396,686		$	378,125		$	376,802		$	378,125
Average balance sheet
Total loans and leases		$	1,226,018		$	1,216,519		$	1,189,528		$	1,170,895		$	1,153,035
Total assets		3,471,861			3,531,568			3,512,490			3,427,791			3,433,447
Total deposits		2,022,083			2,022,950			2,016,929			2,012,523			1,991,434
Long-term debt		247,313			256,197			253,997			245,470			247,425
Common shareholders’ equity		275,885			275,988			276,753			277,881			275,149
Total shareholders’ equity		300,881			300,984			302,501			303,873			300,381
Asset quality
Allowance for credit losses (4)		$	14,184		$	14,264		$	14,309		$	14,380		$	14,361
Nonperforming loans, leases and foreclosed properties (5)		5,649			5,870			5,933			5,905			5,470
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)		1.04		%	1.08		%	1.09		%	1.12		%	1.14		%
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)		235			228			225			228			248
Net charge-offs		$	1,349		$	1,412		$	1,409		$	1,287		$	1,367
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)		0.44		%	0.47		%	0.48		%	0.44		%	0.47		%







Capital ratios at period end (6)

Common equity tier 1 capital		10.9		%	11.2		%	11.2		%	11.4		%	11.6		%

Tier 1 capital		12.3			12.6			12.6			12.8			13.1
Total capital		14.2			14.7			14.5			14.7			15.0
Tier 1 leverage		6.6			6.6			6.5			6.8			6.8
Supplementary leverage ratio		5.5			5.5			5.5			5.7			5.8

Tangible common equity (1, 3)		6.0			6.0			6.0			6.2			6.2
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets		25.3		%	26.3		%	26.1		%	26.3		%	27.0		%
Total loss-absorbing capacity to supplementary leverage exposure		11.3			11.4			11.3			11.7			11.9
Eligible long-term debt to risk-weighted assets		12.2			12.8			12.6			12.7			13.1
Eligible long-term debt to supplementary leverage exposure		5.5			5.6			5.5			5.7			5.8

(1)For definitions, see Key Metrics on page 101.

(2)Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.

(3)Tangible common equity ratio and tangible book value per share of common stock are non-GAAP financial measures. For more information on these measures and corresponding reconciliations to GAAP financial measures, see Supplemental Financial Data on page 6 and Non-GAAP Reconciliations on page 46.

(4)Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.

(5)Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 32 and corresponding Table 25 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 36 and corresponding Table 31.

(6)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 19.

n/a = not applicable


7 Bank of America



Table 6	Quarterly Average Balances and Interest Rates - FTE Basis

		Average Balance		Interest Income/ Expense (1)		Yield/ Rate		Average Balance		Interest Income/ Expense (1)		Yield/ Rate
(Dollars in millions)		Third Quarter 2026						Third Quarter 2025
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		$	230,507	$	2,080	3.58	%	$	264,233	$	2,698	4.05	%
Time deposits placed and other short-term investments		12,164		90		2.93		9,716		88		3.59
Federal funds sold and securities borrowed or purchased under agreements to resell		362,890		4,214		4.61		316,603		3,802		4.76
Trading account assets		237,502		3,193		5.34		239,048		3,222		5.35
Debt securities		861,088		5,956		2.75		932,588		6,975		2.97
Loans and leases (2)
Residential mortgage		236,433		2,153		3.64		235,301		2,070		3.52
Home equity		27,370		385		5.58		26,413		390		5.86
Credit card		105,802		2,914		10.93		100,966		2,932		11.52

Direct/Indirect and other consumer		118,423		1,531		5.13		110,127		1,525		5.49

Total consumer		488,028		6,983		5.69		472,807		6,917		5.82
U.S. commercial		485,010		6,281		5.14		443,274		5,953		5.33
Non-U.S. commercial		164,025		2,033		4.92		154,458		2,121		5.45
Commercial real estate (3)		73,346		1,038		5.62		66,494		1,044		6.23
Commercial lease financing		15,609		201		5.13		16,002		216		5.37
Total commercial		737,990		9,553		5.14		680,228		9,334		5.45
Total loans and leases		1,226,018		16,536		5.36		1,153,035		16,251		5.60
Other earning assets		128,190		2,349		7.27		124,965		2,484		7.89
Total earning assets		3,058,359		34,418		4.47		3,040,188		35,520		4.64
Cash and due from banks		26,266						24,963
Other assets, less allowance for loan and lease losses		387,236						368,296
Total assets		$	3,471,861					$	3,433,447
Interest-bearing liabilities
U.S. interest-bearing deposits

Demand and money market deposits		$	1,103,073	$	5,198	1.87	%	$	1,095,931	$	6,063	2.19	%

Time and savings deposits		249,651		1,662		2.64		257,475		1,941		2.99
Total U.S. interest-bearing deposits		1,352,724		6,860		2.01		1,353,406		8,004		2.35




Non-U.S. interest-bearing deposits		132,664		745		2.23		125,309		928		2.94
Total interest-bearing deposits		1,485,388		7,605		2.03		1,478,715		8,932		2.40
Federal funds purchased and securities loaned or sold under agreements to repurchase		337,187		4,092		4.81		392,431		4,800		4.85
Short-term borrowings and other interest-bearing liabilities		204,194		2,239		4.35		178,368		2,372		5.28
Trading account liabilities		60,534		797		5.22		52,452		672		5.08
Long-term debt		247,313		3,075		4.95		247,425		3,357		5.40
Total interest-bearing liabilities		2,334,616		17,808		3.03		2,349,391		20,133		3.40
Noninterest-bearing sources
Noninterest-bearing deposits		536,695						512,719
Other liabilities (4)		299,669						270,956
Shareholders’ equity		300,881						300,381
Total liabilities and shareholders’ equity		$	3,471,861					$	3,433,447
Net interest spread						1.44	%					1.24	%
Impact of noninterest-bearing sources						0.72						0.77
Net interest income/yield on earning assets (5)				$	16,610	2.16	%			$	15,387	2.01	%

(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 43.

(2)Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.

(3)Includes U.S. commercial real estate loans of $67.6 billion and $60.6 billion, and non-U.S. commercial real estate loans of $5.7 billion and $5.9 billion for the third quarter of 2026 and 2025.

(4)Includes $86.7 billion and $66.2 billion of structured notes and liabilities for the third quarter of 2026 and 2025.

(5)Net interest income includes FTE adjustments of $161 million and $154 million for the third quarter of 2026 and 2025.


						Bank of America 8



Table 7	Year-to-Date Average Balances and Interest Rates - FTE Basis

		Average Balance		Interest Income/ Expense (1)		Yield/ Rate		Average Balance		Interest Income/ Expense (1)		Yield/ Rate
		Nine Months Ended September 30
(Dollars in millions)		2026						2025
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		$	243,063	$	6,382	3.51	%	$	270,333	$	8,351	4.13	%
Time deposits placed and other short-term investments		11,497		260		3.02		9,776		269		3.67
Federal funds sold and securities borrowed or purchased under agreements to resell		360,886		12,256		4.54		330,629		11,670		4.72
Trading account assets		245,360		9,522		5.19		234,950		9,337		5.31
Debt securities		885,403		18,314		2.75		929,833		20,693		2.96
Loans and leases (2)
Residential mortgage		236,238		6,343		3.58		233,047		6,017		3.44
Home equity		27,119		1,107		5.46		26,153		1,135		5.80
Credit card		104,187		8,530		10.95		100,387		8,616		11.48

Direct/Indirect and other consumer		116,363		4,468		5.13		108,655		4,441		5.46

Total consumer		483,907		20,448		5.65		468,242		20,209		5.77
U.S. commercial		477,942		18,091		5.06		427,532		17,089		5.34
Non-U.S. commercial		162,224		5,824		4.80		147,509		6,195		5.62
Commercial real estate (3)		70,835		2,986		5.64		66,034		3,087		6.25
Commercial lease financing		15,914		634		5.32		15,976		645		5.39
Total commercial		726,915		27,535		5.06		657,051		27,016		5.50
Total loans and leases		1,210,822		47,983		5.30		1,125,293		47,225		5.61
Other earning assets		131,172		7,217		7.36		118,534		7,204		8.13
Total earning assets		3,088,203		101,934		4.41		3,019,348		104,749		4.64
Cash and due from banks		26,266						24,486
Other assets, less allowance for loan and lease losses		390,689						360,721
Total assets		$	3,505,158					$	3,404,555
Interest-bearing liabilities
U.S. interest-bearing deposits

Demand and money market deposits		$	1,107,182	$	15,180	1.83	%	$	1,081,175	$	17,329	2.14	%

Time and savings deposits		251,862		5,012		2.66		259,796		6,057		3.12
Total U.S. interest-bearing deposits		1,359,044		20,192		1.99		1,340,971		23,386		2.33




Non-U.S. interest-bearing deposits		129,496		2,086		2.15		121,352		2,859		3.15
Total interest-bearing deposits		1,488,540		22,278		2.00		1,462,323		26,245		2.40
Federal funds purchased and securities loaned or sold under agreements to repurchase		358,042		12,514		4.67		397,419		14,375		4.84
Short-term borrowings and other interest-bearing liabilities		210,382		6,934		4.41		173,935		7,195		5.53
Trading account liabilities		56,857		2,298		5.40		53,307		2,055		5.15
Long-term debt		252,478		9,233		4.89		245,878		10,089		5.48
Total interest-bearing liabilities		2,366,299		53,257		3.01		2,332,862		59,959		3.44
Noninterest-bearing sources
Noninterest-bearing deposits		532,132						512,307
Other liabilities (4)		305,278						262,731
Shareholders’ equity		301,449						296,655
Total liabilities and shareholders’ equity		$	3,505,158					$	3,404,555
Net interest spread						1.40	%					1.20	%
Impact of noninterest-bearing sources						0.70						0.78
Net interest income/yield on earning assets (5)				$	48,677	2.10	%			$	44,790	1.98	%

(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 43.

(2)Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.

(3)Includes U.S. commercial real estate loans of $65.2 billion and $60.1 billion, and non-U.S. commercial real estate loans of $5.6 billion and $5.9 billion for the nine months ended September 30, 2026 and 2025.

(4)Includes $82.9 billion and $59.6 billion of structured notes and liabilities for the nine months ended September 30, 2026 and 2025.

(5)Net interest income includes FTE adjustments of $486 million and $444 million for the nine months ended September 30, 2026 and 2025.


9 Bank of America

Business Segment Operations

Segment Description and Basis of Presentation

We report our results of operations through four business segments: Consumer Banking, GWIM, Global Banking and Global Markets, with the remaining operations recorded in All Other. We manage our segments and report their results on an FTE basis. For more information, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

We periodically review capital allocated to our businesses and allocate capital annually during the strategic and capital planning processes. We utilize a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. The capital allocated to the business segments is referred to as allocated capital. Allocated equity in the reporting units is comprised of allocated capital plus capital

for the portion of goodwill and intangibles specifically assigned to the reporting unit. For more information, including the definition of a reporting unit, see Note 7 – Goodwill and Intangible Assets to the Consolidated Financial Statements.

For more information on our presentation of financial information on an FTE basis, see Supplemental Financial Data on page 6, and for reconciliations to consolidated total revenue, net income and period-end total assets, see Note 17 – Business Segment Information to the Consolidated Financial Statements.

Key Performance Indicators

We present certain key financial and nonfinancial performance indicators that management uses when evaluating segment results. We believe they are useful to investors because they provide additional information about our segments’ operational performance, client trends and business growth.

Consumer Banking




	Three Months Ended September 30								Nine Months Ended September 30
(Dollars in millions)	2026			2025			% Change		2026			2025			% Change
Net interest income	$	9,431		$	8,988		5	%	$	27,630		$	26,219		5	%
Noninterest income:
Card income	1,332			1,403			(5)		3,951			4,115			(4)
Service charges	641			645			(1)		1,918			1,890			1
All other income	168			130			29		458			248			85
Total noninterest income	2,141			2,178			(2)		6,327			6,253			1
Total revenue, net of interest expense	11,572			11,166			4		33,957			32,472			5

Provision for credit losses	1,045			1,009			4		3,337			3,583			(7)
Noninterest expense	5,833			5,575			5		17,471			16,968			3
Income before income taxes	4,694			4,582			2		13,149			11,921			10
Income tax expense	1,173			1,145			2		3,287			2,980			10
Net income	$	3,521		$	3,437		2		$	9,862		$	8,941		10

Effective tax rate	25.0		%	25.0		%			25.0		%	25.0		%

Net interest yield	3.76			3.59					3.70			3.53
Efficiency ratio	50.40			49.92					51.45			52.25
Return on average allocated capital	31			31					29			27

Balance Sheet



	Three Months Ended September 30								Nine Months Ended September 30
Average	2026			2025			% Change		2026			2025			% Change
Total loans and leases	$	320,953		$	320,297		—	%	$	321,387		$	318,178		1	%
Total earning assets	994,343			992,007			—		997,864			993,484			—
Total assets	1,032,792			1,029,529			—		1,036,245			1,030,874			1
Total deposits	948,635			947,414			—		952,126			948,983			—
Allocated capital	45,500			44,000			3		45,500			44,000			3


Period end									September 30 2026			December 31 2025			% Change
Total loans and leases									$	321,968		325,871			(1)	%
Total earning assets									994,547			998,969			—
Total assets									1,034,324			1,039,346			—
Total deposits									949,142			956,265			(1)

Consumer Banking offers a diversified range of lending, deposit and investment products and services to consumers and small businesses. For more information about Consumer Banking, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Three-Month Comparison

Net income for Consumer Banking increased $84 million to $3.5 billion primarily due to higher revenue, largely offset by higher noninterest expense. Net interest income increased $443

million to $9.4 billion primarily driven by higher deposit spreads, as well as loan and deposit balances. Noninterest income was $2.1 billion, relatively unchanged from the same period a year ago.

The provision for credit losses was $1.0 billion, relatively unchanged from the same period a year ago. Noninterest expense increased $258 million to $5.8 billion primarily driven by continued investments in the business, including technology and marketing.


						Bank of America 10

Average loans and leases increased $656 million to $321.0 billion primarily due to growth in credit card balances, partially offset by lower vehicle lending balances.

Average deposits increased $1.2 billion to $948.6 billion primarily due to net inflows of $7.7 billion in checking and $2.2 billion in time deposits, partially offset by net outflows of $8.5 billion in money market and other savings.

Nine-Month Comparison

Net income for Consumer Banking increased $921 million to $9.9 billion due to higher revenue and lower provision for credit losses, partially offset by higher noninterest expense. Net interest income increased $1.4 billion to $27.6 billion due to the same factors as described in the three-month discussion. Noninterest income increased $74 million to $6.3 billion, primarily due to higher income from risk management activities and investment and brokerage services revenue, partially offset by lower card income.

The provision for credit losses decreased $246 million to $3.3 billion driven by improved asset quality in credit card. Noninterest expense increased $503 million to $17.5 billion primarily due to the same factors as described in the three-month discussion.

Average loans and leases increased $3.2 billion to $321.4 billion primarily driven by growth in credit card balances.

Average deposits increased $3.1 billion to $952.1 billion primarily due to net inflows of $9.4 billion in checking and $4.6 billion in time deposits, partially offset by net outflows of $10.9 billion in money market and other savings.

Consumer investment assets increased $84.0 billion to $664.4 billion driven by higher market valuations and positive net client flows.

Key Statistics

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



Key Statistics

	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions)	2026			2025			2026			2025
Deposit Spreads
Total deposit spreads (excludes noninterest costs)	3.13%			2.94%			3.08%			2.90%

Period end
Consumer investment assets (in millions) (1)							$	664,439		$	580,391
Active digital banking users (in thousands) (2)							50,381			49,198
Active mobile banking users (in thousands) (3)							42,596			41,258
Financial centers							3,531			3,649
ATMs							14,965			14,920

Credit and Debit Card
Total credit card (4)
Gross interest yield (5)	11.47		%	12.17		%	11.49		%	12.12		%
Risk-adjusted margin (6)	6.74			7.48			6.63			7.08
New accounts (in thousands)	1,016			929			2,899			2,676
Purchase volumes	$	100,878		$	95,116		$	295,727		$	278,138
Debit card purchase volumes	164,779			150,048			480,902			439,533

Loan Production (7)
Consumer Banking:
First mortgage	$	2,727		$	3,052		$	9,290		$	7,961
Home equity	2,453			2,326			6,857			6,401
Total (8):
First mortgage	$	6,853		$	6,751		$	21,544		$	17,863
Home equity	2,974			2,800			8,335			7,780

(1)Includes client brokerage assets, deposit sweep balances, brokered CDs and AUM in Consumer Banking.

(2)Represents mobile and/or online active users over the past 90 days.

(3)Represents mobile active users over the past 90 days.

(4)Includes consumer credit card portfolios in Consumer Banking and GWIM.

(5)Calculated as the effective annual percentage rate divided by average loans.

(6)Calculated as the difference between total revenue, net of interest expense, and net charge-offs divided by average loans.

(7)The loan production amounts represent the unpaid principal balance of loans and, in the case of home equity, the principal amount of the total line of credit.

(8)In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM.


11 Bank of America

Since September 30, 2025, active mobile banking users increased by more than one million, reflecting client growth and continuing changes in our clients’ banking preferences. We had a net decrease of 118 financial centers and an increase of 45 ATMs as we continued to optimize our consumer banking network.

During the three months ended September 30, 2026, the total risk-adjusted margin decreased 74 bps primarily driven by lower card-related fee income and lower net interest margin due to loan balance mix, partially offset by lower net charge-offs. During the nine months ended September 30, 2026, the total risk-adjusted margin decreased 45 bps due to the same factors as described in the three-month discussion. During the three and nine months ended September 30, 2026, total credit card purchase volumes increased $5.8 billion and $17.6 billion, and

debit card purchase volumes increased $14.7 billion and $41.4 billion, reflecting higher levels of consumer spending.

During the three and nine months ended September 30, 2026, first mortgage loan originations for Consumer Banking decreased $325 million and increased $1.3 billion. The three-month period decreased driven by lower demand due to higher interest rates, and the nine-month period increased driven by higher demand. First mortgage loan originations for the total Corporation increased $102 million and $3.7 billion for the same periods, primarily driven by higher demand in GWIM.

During the three and nine months ended September 30, 2026, home equity production in Consumer Banking increased $127 million and $456 million, and home equity production for the total Corporation increased $174 million and $555 million for the same periods, primarily driven by higher demand.

Global Wealth & Investment Management



	Three Months Ended September 30								Nine Months Ended September 30
(Dollars in millions)	2026			2025			% Change		2026			2025			% Change
Net interest income	$	1,963		$	1,800		9	%	$	5,713		$	5,327		7	%
Noninterest income:
Investment and brokerage services	4,956			4,334			14		14,420			12,456			16
All other income	199			178			12		568			482			18
Total noninterest income	5,155			4,512			14		14,988			12,938			16
Total revenue, net of interest expense	7,118			6,312			13		20,701			18,265			13

Provision for credit losses	17			4			n/m		30			38			(21)
Noninterest expense	5,048			4,622			9		14,962			13,874			8
Income before income taxes	2,053			1,686			22		5,709			4,353			31
Income tax expense	513			421			22		1,427			1,088			31
Net income	$	1,540		$	1,265		22		$	4,282		$	3,265		31

Effective tax rate	25.0		%	25.0		%			25.0		%	25.0		%

Net interest yield	2.49			2.33					2.42			2.30
Efficiency ratio	70.91			73.22					72.27			75.96
Return on average allocated capital	28			26					26			22


Balance Sheet

	Three Months Ended September 30								Nine Months Ended September 30
Average	2026			2025			% Change		2026			2025			% Change

Total loans and leases	$	278,642		$	245,523		13	%	$	270,410		$	238,457		13	%
Total earning assets	312,385			306,384			2		314,976			309,882			2
Total assets	326,364			320,484			2		329,461			323,735			2
Total deposits	278,937			276,534			1		282,341			279,883			1
Allocated capital	22,250			19,750			13		22,250			19,750			13

Period end									September 30 2026			December 31 2025			% Change


Total loans and leases									$	283,377		$	261,303		8	%
Total earning assets									315,159			320,899			(2)
Total assets									328,816			335,495			(2)
Total deposits									279,723			289,854			(3)

n/m = not meaningful

GWIM consists of two primary businesses: Merrill Wealth Management and Bank of America Private Bank. For more information on GWIM, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Three-Month Comparison

Net income for GWIM increased $275 million to $1.5 billion primarily due to higher revenue, partially offset by higher noninterest expense. The operating margin was 29 percent compared to 27 percent a year ago.

Net interest income increased $163 million to $2.0 billion primarily driven by loan growth and lower interest rates on average deposits.

Noninterest income, which primarily includes investment and brokerage services income, increased $643 million to $5.2 billion. The increase was primarily driven by higher asset management fees, which increased 16 percent to $4.5 billion, reflecting higher market valuations and the impact of positive AUM flows.

Noninterest expense increased $426 million to $5.0 billion primarily due to higher revenue-related incentives.

Average loans and leases increased $33.1 billion to $278.6 billion primarily driven by custom lending, securities-based lending and residential mortgage. Average deposits increased $2.4 billion to $278.9 billion, with growth in banking balances


						Bank of America 12

largely offset by a decline in brokerage deposits due to clients moving balances to higher yielding cash alternatives.

Merrill Wealth Management revenue of $5.9 billion increased 12 percent primarily driven by higher asset management fees, reflecting higher market valuations, the impact of positive AUM flows and higher net interest income.

Bank of America Private Bank revenue of $1.2 billion increased 15 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.

Nine-Month Comparison

Net income for GWIM increased $1.0 billion to $4.3 billion primarily due to higher revenue, partially offset by higher noninterest expense. The operating margin was 28 percent compared to 24 percent a year ago.

Net interest income increased $386 million to $5.7 billion due to the same factors as described in the three-month discussion.

Noninterest income, which primarily includes investment and brokerage services income, increased $2.1 billion to $15.0 billion due to the same factors as described in the three-month discussion.

Noninterest expense increased $1.1 billion to $15.0 billion due to the same factor as described in the three-month discussion.

Average loans increased $32.0 billion to $270.4 billion, and average deposits increased $2.5 billion to $282.3 billion due to the same factors as described in the three-month discussion.

Merrill Wealth Management revenue of $17.2 billion increased 13 percent, and Bank of America Private Bank revenue of $3.5 billion increased 15 percent primarily driven by the same factors as described in the three-month discussion.



Key Indicators and Metrics

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025
Revenue by Business
Merrill Wealth Management	$	5,905	$	5,261	$	17,195	$	15,222
Bank of America Private Bank	1,213		1,051		3,506		3,043

Total revenue, net of interest expense	$	7,118	$	6,312	$	20,701	$	18,265

Client Balances by Business, at period end
Merrill Wealth Management					$	4,240,601	$	3,896,124
Bank of America Private Bank					816,186		744,675

Total client balances					$	5,056,787	$	4,640,799

Client Balances by Type, at period end


Assets under management					$	2,370,848	$	2,109,946
Brokerage and other assets					2,164,406		2,040,748

Deposits					279,723		278,931
Loans and leases (1)					286,092		255,381
Less: Managed deposits in assets under management					(44,282)		(44,207)
Total client balances					$	5,056,787	$	4,640,799

Assets Under Management Rollforward
Assets under management, beginning of period	$	2,327,766	$	1,986,523	$	2,177,708	$	1,882,211


Net client flows	19,980		23,517		54,025		61,788
Market valuation/other	23,102		99,906		139,115		165,947
Total assets under management, end of period	$	2,370,848	$	2,109,946	$	2,370,848	$	2,109,946

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

Client Balances

Client balances increased $416.0 billion, or nine percent, to $5.1 trillion at September 30, 2026 compared to September 30, 2025. The increase in client balances was primarily driven by higher market valuations, as well as positive net client flows since September 30, 2025.


13 Bank of America

Global Banking



	Three Months Ended September 30								Nine Months Ended September 30
(Dollars in millions)	2026			2025			% Change		2026			2025			% Change
Net interest income	$	3,259		$	3,141		4	%	$	9,687		$	9,373		3	%
Noninterest income:
Service charges	930			863			8		2,766			2,553			8
Investment banking fees	971			1,155			(16)		3,172			2,769			15
All other income	1,045			1,030			1		3,103			3,175			(2)
Total noninterest income	2,946			3,048			(3)		9,041			8,497			6
Total revenue, net of interest expense	6,205			6,189			—		18,728			17,870			5

Provision for credit losses	210			269			(22)		610			700			(13)
Noninterest expense	3,250			3,044			7		9,672			9,298			4
Income before income taxes	2,745			2,876			(5)		8,446			7,872			7
Income tax expense	755			791			(5)		2,323			2,165			7
Net income	$	1,990		$	2,085		(5)		$	6,123		$	5,707		7

Effective tax rate	27.5		%	27.5		%			27.5		%	27.5		%

Net interest yield	1.83			1.87					1.87			1.97
Efficiency ratio	52.36			49.16					51.64			52.03
Return on average allocated capital	15			16					15			15

Balance Sheet

	Three Months Ended September 30								Nine Months Ended September 30
Average	2026			2025			% Change		2026			2025			% Change

Total loans and leases	$	418,883		$	388,482		8	%	$	409,825		$	385,062		6	%
Total earning assets	704,930			665,143			6		693,506			637,605			9
Total assets	769,684			730,206			5		758,056			702,678			8
Total deposits	668,588			631,560			6		656,090			603,591			9
Allocated capital	54,250			50,750			7		54,250			50,750			7


Period end									September 30 2026			December 31 2025			% Change

Total loans and leases									$	428,146		$	388,998		10	%
Total earning assets									719,228			671,354			7
Total assets									784,081			734,710			7
Total deposits									683,867			641,211			7

Global Banking, which includes Global Corporate Banking, Global Commercial Banking, Business Banking and Global Investment Banking, provides a wide range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services through our network of global offices and client relationship teams. For more information about Global Banking, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Three-Month Comparison

Net income for Global Banking decreased $95 million to $2.0 billion due to higher noninterest expense and lower noninterest income, partially offset by higher net interest income and lower provision for credit losses.

Net interest income increased $118 million to $3.3 billion primarily due to the benefit of higher average deposit and loan balances, partially offset by lower interest rates on loans.

Noninterest income decreased $102 million to $2.9 billion primarily due to lower investment banking fees, partially offset by higher treasury service charges.

The provision for credit losses decreased $59 million to $210 million primarily driven by improved asset quality within the commercial real estate portfolio.

Noninterest expense increased $206 million to $3.3 billion primarily due to continued investments in the business, including people and technology.

Nine-Month Comparison

Net income for Global Banking increased $416 million to $6.1 billion due to higher noninterest income and net interest income, as well as lower provision for credit losses, partially offset by higher noninterest expense.

Net interest income increased $314 million to $9.7 billion primarily due to the same factors as described in the three-month discussion.

Noninterest income increased $544 million to $9.0 billion primarily due to higher investment banking fees, treasury service charges and tax-related equity investment income, partially offset by gains related to sales of certain leveraged finance positions in the prior-year period.

The provision for credit losses decreased $90 million to $610 million primarily driven by improved asset quality within the commercial real estate portfolio, partially offset by loan growth in the commercial and industrial portfolio and a qualitative reserve build related to uncertainties associated with the ongoing conflicts in the Middle East.

Noninterest expense increased $374 million to $9.7 billion, primarily due to the same factors as described in the three-month discussion.


						Bank of America 14

Global Corporate, Global Commercial and Business Banking

The following table and discussion present a summary of results, which exclude certain investment banking and other activities in Global Banking.



Global Corporate, Global Commercial and Business Banking

	Global Corporate Banking				Global Commercial Banking				Business Banking				Total
	Three Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025		2026		2025		2026		2025
Revenue
Business Lending	$	1,017	$	1,045	$	1,112	$	1,135	$	50	$	56	$	2,179	$	2,236
Global Transaction Services	1,413		1,326		1,192		1,043		435		370		3,040		2,739
Total revenue, net of interest expense	$	2,430	$	2,371	$	2,304	$	2,178	$	485	$	426	$	5,219	$	4,975

Balance Sheet
Average
Total loans and leases	$	193,425	$	176,378	$	212,486	$	200,201	$	12,950	$	11,844	$	418,861	$	388,423
Total deposits	356,295		357,835		249,067		219,345		63,224		54,378		668,586		631,558

	Global Corporate Banking				Global Commercial Banking				Business Banking				Total
	Nine Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025		2026		2025		2026		2025
Revenue
Business Lending	$	3,002	$	3,000	$	3,367	$	3,385	$	148	$	165	$	6,517	$	6,550
Global Transaction Services	4,218		3,884		3,405		3,093		1,222		1,091		8,845		8,068
Total revenue, net of interest expense	$	7,220	$	6,884	$	6,772	$	6,478	$	1,370	$	1,256	$	15,362	$	14,618

Balance Sheet

Average
Total loans and leases	$	188,725	$	174,920	$	208,366	$	198,247	$	12,682	$	11,828	$	409,773	$	384,995
Total deposits	358,325		340,142		237,357		210,462		60,407		52,987		656,089		603,591

Period end
Total loans and leases	$	196,048	$	174,680	$	218,866	$	200,116	$	13,255	$	12,053	$	428,169	$	386,849
Total deposits	362,768		360,531		256,656		223,333		64,440		56,931		683,864		640,795

Business Lending revenue decreased $57 million for the three months ended September 30, 2026 compared to the same period a year ago primarily driven by lower interest rates on loans, partially offset by the benefit of higher average loan balances as well as higher tax-related equity investment income. Business Lending revenue decreased $33 million for the nine months ended September 30, 2026 compared to the same period a year ago primarily driven by the same factors as described in the three-month discussion.

Global Transaction Services revenue increased $301 million for the three months ended September 30, 2026, primarily driven by the benefit of higher average deposit balances and lower interest rates paid on deposits, as well as higher treasury service charges. Global Transaction Services revenue increased $777 million for the nine months ended September 30, 2026 primarily driven by the benefit of higher average deposit balances and higher treasury service charges.

Average loans and leases of $418.9 billion increased eight percent for the three months ended September 30, 2026, and average loans and leases of $409.8 billion increased six percent for the nine months ended September 30, 2026 due to client demand.

Average deposits of $668.6 billion increased six percent for the three months ended September 30, 2026, and average deposits of $656.1 billion increased nine percent for the nine months ended September 30, 2026 due to growth in deposit balances from existing clients and the addition of new clients.

Global Investment Banking

Client teams and product specialists underwrite and distribute debt, equity and loan products, and provide advisory services and tailored risk management solutions. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. Global Banking originates certain deal-related transactions with our corporate and commercial clients that are executed and distributed by Global Markets. To provide a complete discussion of our consolidated investment banking fees, the table below presents total Corporation investment banking fees and the portion attributable to Global Banking.


15 Bank of America



Investment Banking Fees

	Global Banking				Total Corporation				Global Banking				Total Corporation
	Three Months Ended September 30								Nine Months Ended September 30

(Dollars in millions)	2026		2025		2026		2025		2026		2025		2026		2025
Products
Advisory	$	422	$	536	$	471	$	583	$	1,436	$	1,166	$	1,582	$	1,300
Debt issuance	397		472		958		1,109		1,234		1,227		3,057		2,888
Equity issuance	152		147		395		362		502		376		1,283		962
Segment investment banking fees	971		1,155		1,824		2,054		3,172		2,769		5,922		5,150
Self-led deals (1)	(2)		(12)		(25)		(41)		(34)		(62)		(144)		(186)
Total investment banking fees	$	969	$	1,143	$	1,799	$	2,013	$	3,138	$	2,707	$	5,778	$	4,964

(1)Represents investment banking fees on Bank of America issuances that are eliminated through All Other in consolidation.

Total Corporation investment banking fees, which exclude self-led deals and are primarily included within Global Banking and Global Markets, were $1.8 billion and $5.8 billion for the three and nine months ended September 30, 2026. The three-month period decreased 11 percent compared to the same period in 2025 due to lower debt issuance and advisory fees. The nine-month period increased 16 percent compared to the same period in 2025 due to higher equity issuance, advisory and debt issuance fees.

Global Markets



	Three Months Ended September 30								Nine Months Ended September 30
(Dollars in millions)	2026			2025			% Change		2026			2025			% Change
Net interest income	$	2,008		$	1,484		35	%	$	5,780		$	3,940		47	%
Noninterest income:
Investment and brokerage services	683			614			11		2,172			1,883			15
Investment banking fees	767			834			(8)		2,494			2,181			14
Market making and similar activities	2,554			3,141			(19)		10,697			10,063			6
All other income	(145)			152			n/m		(145)			725			(120)
Total noninterest income	3,859			4,741			(19)		15,218			14,852			2
Total revenue, net of interest expense	5,867			6,225			(6)		20,998			18,792			12

Provision for credit losses	3			9			(67)		19			59			(68)
Noninterest expense	4,195			3,895			8		13,049			11,512			13
Income before income taxes	1,669			2,321			(28)		7,930			7,221			10
Income tax expense	434			673			(36)		2,062			2,094			(2)
Net income	$	1,235		$	1,648		(25)		$	5,868		$	5,127		14

Effective tax rate	26.0		%	29.0		%			26.0		%	29.0		%

Efficiency ratio	71.51			62.58					62.15			61.26
Return on average allocated capital	9			13					15			14


Balance Sheet	Three Months Ended September 30								Nine Months Ended September 30
Average	2026			2025			% Change		2026			2025			% Change


Trading-related assets:
Trading account securities	$	361,207		$	361,610		—	%	$	373,323		$	350,777		6	%
Reverse repurchases	164,491			138,908			18		163,240			150,511			8
Securities borrowed	152,239			135,615			12		150,829			139,764			8
Derivative assets	51,401			40,488			27		48,023			40,737			18
Total trading-related assets	729,338			676,621			8		735,415			681,789			8
Total loans and leases	200,645			190,994			5		202,290			175,777			15
Total earning assets	869,392			813,197			7		876,507			802,377			9
Total assets	1,091,797			1,024,300			7		1,104,606			1,005,714			10
Total deposits	38,309			37,588			2		38,725			38,141			2
Allocated capital	53,500			49,000			9		53,500			49,000			9

Period end									September 30 2026			December 31 2025			% Change


Total trading-related assets									$	681,904		$	670,949		2	%
Total loans and leases									210,590			202,733			4
Total earning assets									825,364			814,196			1
Total assets									1,052,335			1,032,858			2
Total deposits									38,449			40,614			(5)

n/m = not meaningful


						Bank of America 16

Global Markets offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity and equity businesses. Global Markets product coverage includes securities and derivative products in both the primary and secondary markets. For more information about Global Markets, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

The following explanations for period-over-period changes in results for Global Markets, including those disclosed under Sales and Trading Revenue, are the same for amounts including and excluding net DVA. Amounts excluding net DVA are non-GAAP financial measures. For more information on net DVA, see Supplemental Financial Data on page 6.

Three-Month Comparison

Net income for Global Markets decreased $413 million to $1.2 billion for the three months ended September 30, 2026 compared to the same period in 2025. Net DVA gains totaled $20 million compared to $14 million in 2025. Excluding net DVA, net income decreased $417 million to $1.2 billion. These decreases were primarily driven by lower revenue and higher noninterest expense.

Revenue decreased $358 million to $5.9 billion primarily due to lower sales and trading revenue and investment banking fees. Including net DVA, sales and trading revenue decreased $287 million. Excluding net DVA, sales and trading revenue decreased $293 million. These decreases were primarily driven by lower revenue in FICC, partially offset by higher revenue in Equities. For more information, see Sales and Trading Revenue in this section.

Noninterest expense increased $300 million to $4.2 billion primarily driven by higher revenue-related expenses and continued investments in the business, including people and technology.

Average total assets increased $67.5 billion to $1.1 trillion for the three months ended September 30, 2026 compared to the same period in 2025 driven by increased financing activity and loan growth.

Nine-Month Comparison

Net income for Global Markets increased $741 million to $5.9 billion for the nine months ended September 30, 2026 compared to the same period in 2025. Net DVA gains were $26 million compared to losses of $18 million in 2025. Excluding net DVA, net income increased $707 million to $5.8 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.

Revenue increased $2.2 billion to $21.0 billion primarily due to higher sales and trading revenue and investment banking fees, partially offset by gains related to sales of certain leveraged finance positions in the prior-year period. Sales and trading revenue, including and excluding net DVA, increased $2.2 billion. These increases were driven by higher revenue in Equities. For more information, see Sales and Trading Revenue in this section.

Noninterest expense increased $1.5 billion to $13.0 billion primarily driven by the same factors as described in the three-month discussion.

Average total assets increased $98.9 billion to $1.1 trillion for the nine months ended September 30, 2026 compared to the same period in 2025 driven by increased financing activity, loan growth and higher levels of inventory. Period-end total assets increased $19.5 billion from December 31, 2025 to $1.1 trillion driven by loan growth and higher levels of inventory.

Sales and Trading Revenue

For a description of sales and trading revenue, see Business Segment Operations in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K. The following table and related discussion present sales and trading revenue, substantially all of which is in Global Markets, with the remainder in Global Banking. In addition, the following table and related discussion also present sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 6.



Sales and Trading Revenue (1, 2, 3)

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025
Sales and trading revenue
Fixed-income, currencies and commodities	$	2,565	$	3,092	$	9,586	$	9,766
Equities	2,510		2,270		8,974		6,589
Total sales and trading revenue	$	5,075	$	5,362	$	18,560	$	16,355

Sales and trading revenue, excluding net DVA (4)
Fixed-income, currencies and commodities	$	2,548	$	3,078	$	9,580	$	9,791
Equities	2,507		2,270		8,954		6,582
Total sales and trading revenue, excluding net DVA	$	5,055	$	5,348	$	18,534	$	16,373

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

(2)Includes FTE adjustments of $90 million and $486 million for the three and nine months ended September 30, 2026 compared to $155 million and $449 million for the same periods in 2025.

(3)Includes Global Banking sales and trading revenue of $175 million and $644 million for the three and nine months ended September 30, 2026 compared to $172 million and $347 million for the same periods in 2025.

(4)FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA gains (losses) were $17 million and $6 million for the three and nine months ended September 30, 2026 compared to $14 million and $(25) million for the same periods in 2025. Equities net DVA gains (losses) were $3 million and $20 million for the three and nine months ended September 30, 2026 compared to $0 and $7 million for the same periods in 2025.


17 Bank of America

Three-Month Comparison

Including and excluding net DVA, FICC revenue decreased $527 million and $530 million for the three months ended September 30, 2026 compared to the same period in 2025. These decreases were driven by weaker trading performance in mortgage, municipals, and credit products. Including and excluding net DVA, Equities revenue increased $240 million and $237 million, respectively, driven by increased client financing activity, particularly in Asia and the U.S., partially offset by weaker trading performance in derivatives and cash.

Nine-Month Comparison

Including and excluding net DVA, FICC revenue decreased $180 million and $211 million for the nine months ended September 30, 2026 compared to the same period in 2025 due to the same factors as described in the three-month discussion. Including and excluding net DVA, Equities revenue increased $2.4 billion driven by increased client financing activity and a stronger trading performance in derivatives and cash.

All Other



	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions)	2026		2025		% Change		2026		2025		% Change
Net interest income	$	(51)	$	(26)	96	%	$	(133)	$	(69)	93	%





Noninterest income (loss)	(592)		(672)		(12)		(1,977)		(2,156)		(8)
Total revenue, net of interest expense	(643)		(698)		(8)		(2,110)		(2,225)		(5)

Provision for credit losses	(6)		4		n/m		(24)		(13)		85


Noninterest expense	1,396		201		n/m		1,726		638		n/m
Loss before income taxes	(2,033)		(903)		125		(3,812)		(2,850)		34
Income tax benefit	(680)		(800)		(15)		(2,268)		(2,672)		(15)
Net loss	$	(1,353)	$	(103)	n/m		$	(1,544)	$	(178)	n/m

Balance Sheet
	Three Months Ended September 30						Nine Months Ended September 30


Average	2026		2025		% Change		2026		2025		% Change
Total loans and leases	$	6,895	$	7,739	(11)	%	$	6,910	$	7,819	(12)	%
Total assets (1)	251,224		328,928		(24)		276,790		341,554		(19)
Total deposits	87,614		98,338		(11)		91,390		104,032		(12)

Period end							September 30 2026		December 31 2025		% Change




Total loans and leases							$	7,179	$	6,795	6	%
Total assets (1)							228,148		269,329		(15)
Total deposits							87,577		90,785		(4)

(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 $976.8 billion and $987.8 billion for the three and nine months ended September 30, 2026 compared to $994.4 billion and $984.3 billion for the same periods in 2025, and period-end allocated assets were $981.7 billion and $1.0 trillion at September 30, 2026 and December 31, 2025.

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. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments. For more information on our ALM activities, see Note 17 – Business Segment Information to the Consolidated Financial Statements.

Three-Month Comparison

The net loss in All Other increased $1.3 billion to $1.4 billion primarily due to higher noninterest expense.

Noninterest expense increased $1.2 billion due to the non-tax-deductible regulatory settlement charge. The income tax benefit decreased $120 million primarily due to lower tax preference items.

Nine-Month Comparison

The net loss in All Other increased $1.4 billion to $1.5 billion primarily due to higher noninterest expense.

Noninterest expense increased $1.1 billion, and the income tax benefit decreased $404 million primarily due to the same factors as described in the three-month discussion.


						Bank of America 18

Managing Risk

Risk is inherent in all our business activities. The seven key types of risk faced by the Corporation are strategic, credit, market, liquidity, compliance, operational and reputational. Sound risk management enables us to serve our customers and deliver for our shareholders. If not managed well, risk can result in financial loss, regulatory sanctions and penalties, litigation and damage to our reputation, each of which may adversely impact our ability to execute our business strategies. We take a comprehensive approach to risk management with a defined Risk Framework and an articulated Risk Appetite Statement, which are approved annually by the Board’s Enterprise Risk Committee (ERC) and the Board.

Our Risk Framework serves as the foundation for the consistent and effective management of risks facing the Corporation. The Risk Framework sets forth roles and responsibilities for the management of risk and provides a blueprint for how the Board, through delegation of authority to committees and executive officers, establishes risk appetite and associated limits for our activities.

Our risk appetite provides a common framework that includes a set of measures to assist senior management and the Board in assessing the Corporation’s risk profile across all risk types against our risk appetite and risk capacity. Our risk appetite is formally articulated in the Risk Appetite Statement, which includes both qualitative statements and quantitative limits.

For more information on the Corporation’s risks, see Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K. These risks are being managed within our Risk Framework and supporting risk management programs. For more information on our Risk Framework, risk management activities and the key types of risk faced by the Corporation, see the Managing Risk section in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Capital Management

The Corporation manages its capital position so that its capital is more than adequate to support its business activities and aligns with risk, risk appetite and strategic planning. For more information, see Capital Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

CCAR and Capital Planning

The Federal Reserve requires BHCs with average total consolidated assets of $100 billion or more to submit a capital plan and planned capital actions on an annual basis, consistent with the rules governing the Comprehensive Capital Analysis and Review (CCAR) capital plan and associated stress capital buffer (SCB) requirements, which include supervisory stress testing by the Federal Reserve. At September 30, 2026, the Corporation’s SCB was 2.5 percent, with a Common equity tier 1 (CET1) minimum requirement of 10.0 percent under the Standardized approach. For more information on the Corporation’s SCB requirement, see Regulatory Developments on page 23.

On July 23, 2025, the Board authorized a $40 billion common stock repurchase program, effective August 1, 2025. Pursuant to this Board authorization, during the three months ended September 30, 2026, the Corporation repurchased $6.0 billion of common stock. For more information, including the remaining buyback authority amount as of September 30, 2026, see Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds on page 103 and Capital Management – CCAR and Capital Planning in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

The timing and amount of common stock repurchases are subject to various factors, including the Corporation’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions, and may be suspended or discontinued at any time. Such repurchases may be effected through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (Exchange Act).

Further, as part of our planned capital actions, during the three months ended September 30, 2026, the Corporation paid common stock dividends of $2.2 billion.

On October 23, 2026, the Corporation issued 80,000 shares of 7.200% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series WW for $2.0 billion, with quarterly dividends commencing in January 2027. The Series WW preferred stock has a liquidation preference of $25,000 per share and is subject to certain restrictions in the event the Corporation fails to declare and pay full dividends.

Regulatory Capital

As a BHC, we are subject to regulatory capital rules issued by U.S. banking regulators, including the U.S. rules implementing the Basel 3 capital framework (Basel 3). 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 September 30, 2026, 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 are components of CET1 capital requirements. At September 30, 2026 and December 31, 2025, the Corporation’s minimum CET1 requirement was 10.0 percent under both the Standardized approach and the Advanced approaches. At September 30, 2026, the Corporation’s CET1 capital ratio was 10.9 percent under the Standardized approach and 12.0 percent under the Advanced approaches.

The Corporation is required to calculate its G-SIB surcharge on an annual basis under two methods and is subject to the higher of the resulting two surcharges. Method 1 is consistent with the approach prescribed by the Basel Committee on Banking Supervision’s assessment methodology and is


19 Bank of America

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. Under the current regulatory framework, on January 1, 2027, the Corporation’s G-SIB surcharge will increase by 50 bps to 2.0 percent under Method 1 and to 3.5 percent under Method 2. The change in Method 2 will increase the Corporation’s minimum CET1 capital ratio requirement by 50 bps under both the Standardized approach and Advanced approaches.

The Corporation and its insured depository institution subsidiaries are also required to maintain a minimum supplementary leverage ratio (SLR) plus a leverage buffer to avoid certain restrictions on capital distributions and discretionary bonus payments to executive officers. Prior to January 1, 2026, the minimum SLR requirement was 5.0 percent for the Corporation and 6.0 percent for its insured depository institutions. Effective January 1, 2026, the

Corporation and its insured depository institutions adopted the final rule on modified enhanced SLR requirements, resulting in a minimum SLR requirement of 3.75 percent, which includes the leverage buffer, for both the Corporation and its insured depository institutions. At September 30, 2026, the Corporation’s SLR was 5.5 percent and BANA’s SLR was 5.8 percent, which both exceeded their minimum SLR requirement of 3.75 percent. For more information, see Capital Management – Regulatory Developments in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Capital Composition and Ratios

Table 8 presents Bank of America Corporation’s capital ratios and related information in accordance with Basel 3 Standardized and Advanced approaches as measured at September 30, 2026 and December 31, 2025. For the periods presented herein, the Corporation met the definition of well capitalized under current regulatory requirements.



Table 8	Bank of America Corporation Regulatory Capital under Basel 3


		Standardized Approach			Advanced Approaches			Regulatory Minimum (1)
(Dollars in millions, except as noted)		September 30, 2026
Risk-based capital metrics:
Common equity tier 1 capital		$	198,407		$	198,407
Tier 1 capital		223,370			223,370
Total capital (2)		259,252			248,434
Risk-weighted assets (in billions)		1,821			1,648
Common equity tier 1 capital ratio		10.9		%	12.0		%	10.0	%
Tier 1 capital ratio		12.3			13.6			11.5
Total capital ratio		14.2			15.1			13.5

Leverage-based metrics:
Adjusted quarterly average assets (in billions) (3)		$	3,392		$	3,392
Tier 1 leverage ratio		6.6		%	6.6		%	4.0

Supplementary leverage exposure (in billions)					$	4,084
Supplementary leverage ratio					5.5		%	3.75

		December 31, 2025
Risk-based capital metrics:
Common equity tier 1 capital		$	201,410		$	201,410
Tier 1 capital		227,382			227,382
Total capital (2)		261,232			250,347
Risk-weighted assets (in billions)		1,773			1,570
Common equity tier 1 capital ratio		11.4		%	12.8		%	10.0	%
Tier 1 capital ratio		12.8			14.5			11.5
Total capital ratio		14.7			15.9			13.5

Leverage-based metrics:
Adjusted quarterly average assets (in billions) (3)		$	3,348		$	3,348
Tier 1 leverage ratio		6.8		%	6.8		%	4.0

Supplementary leverage exposure (in billions)					$	3,986
Supplementary leverage ratio					5.7		%	5.0

(1)The CET1 capital regulatory minimum is the sum of the CET1 capital ratio minimum of 4.5 percent, our G-SIB surcharge of 3.0 percent, and SCB (under the Standardized approach) of 2.5 percent at September 30, 2026 and December 31, 2025. The countercyclical capital buffer was zero for both periods. The SLR regulatory minimum at September 30, 2026 and December 31, 2025 includes a leverage buffer of 0.75 percent and 2.0 percent.

(2)Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses.

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

At September 30, 2026, CET1 capital was $198.4 billion, a decrease of $3.0 billion from December 31, 2025, primarily due to capital distributions and accumulated OCI, partially offset by earnings. Tier 1 capital decreased $4.0 billion driven by the same factors as CET1 capital and a preferred stock redemption.

Total capital under the Standardized approach decreased $2.0 billion driven by the same factors as Tier 1 capital, partially offset by a subordinated debt issuance and a decrease in the adjusted allowance for credit losses included in Tier 2 capital. RWA under the Standardized approach, which drove the lower


						Bank of America 20

CET1 capital ratio at September 30, 2026, increased $47.9 billion from December 31, 2025 to $1,821 billion primarily driven by growth in Global Markets and Global Banking, partially offset by GWIM. Supplementary leverage exposure at September 30, 2026 increased $98.3 billion from

December 31, 2025 primarily driven by increased activity in Global Markets and loan growth.

Table 9 shows the capital composition at September 30, 2026 and December 31, 2025.



Table 9	Capital Composition under Basel 3


(Dollars in millions)		September 30 2026		December 31 2025
Total common shareholders’ equity		$	271,753	$	277,251

Goodwill, net of related deferred tax liabilities		(68,651)		(68,651)
Deferred tax assets arising from net operating loss and tax credit carryforwards		(8,672)		(8,761)
Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities		(1,343)		(1,386)
Defined benefit pension plan net assets		(905)		(868)
Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax		1,348		1,825
Accumulated net (gain) loss on certain cash flow hedges (1)		4,894		2,020
Other		(17)		(20)
Common equity tier 1 capital		198,407		201,410
Qualifying preferred stock, net of issuance cost		24,995		25,991
Other		(32)		(19)
Tier 1 capital		223,370		227,382
Tier 2 capital instruments		21,924		19,627
Qualifying allowance for credit losses		14,240		14,431
Other		(282)		(208)
Total capital under the Standardized approach		259,252		261,232
Adjustment in qualifying allowance for credit losses under the Advanced approaches		(10,818)		(10,885)
Total capital under the Advanced approaches		$	248,434	$	250,347

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

Table 10 shows the components of RWA as measured under Basel 3 at September 30, 2026 and December 31, 2025.



Table 10	Risk-weighted Assets under Basel 3

		Standardized Approach		Advanced Approaches		Standardized Approach		Advanced Approaches
(Dollars in billions)		September 30, 2026				December 31, 2025

Credit risk		$	1,732	$	1,145	$	1,694	$	1,087
Market risk		89		88		79		79
Operational risk		n/a		360		n/a		357
Risks related to credit valuation adjustments		n/a		55		n/a		47
Total risk-weighted assets		$	1,821	$	1,648	$	1,773	$	1,570

n/a = not applicable


21 Bank of America

Bank of America, N.A. Regulatory Capital

Table 11 presents regulatory capital information for BANA in accordance with Basel 3 Standardized and Advanced approaches as measured at September 30, 2026 and December 31, 2025. BANA met the definition of well capitalized under the PCA framework for both periods.



Table 11	Bank of America, N.A. Regulatory Capital under Basel 3

		Standardized Approach			Advanced Approaches			Regulatory Minimum (1)
(Dollars in millions, except as noted)		September 30, 2026
Risk-based capital metrics:
Common equity tier 1 capital		$	183,952		$	183,952
Tier 1 capital		183,952			183,952
Total capital (2)		199,552			188,980
Risk-weighted assets (in billions)		1,568			1,295
Common equity tier 1 capital ratio		11.7		%	14.2		%	7.0	%
Tier 1 capital ratio		11.7			14.2			8.5
Total capital ratio		12.7			14.6			10.5

Leverage-based metrics:
Adjusted quarterly average assets (in billions) (3)		$	2,600		$	2,600
Tier 1 leverage ratio		7.1		%	7.1		%	5.0

Supplementary leverage exposure (in billions)					$	3,157
Supplementary leverage ratio					5.8		%	3.75

		December 31, 2025
Risk-based capital metrics:
Common equity tier 1 capital		$	190,831		$	190,831
Tier 1 capital		190,831			190,831
Total capital (2)		206,640			196,006
Risk-weighted assets (in billions)		1,530			1,227
Common equity tier 1 capital ratio		12.5		%	15.6		%	7.0	%
Tier 1 capital ratio		12.5			15.6			8.5
Total capital ratio		13.5			16.0			10.5

Leverage-based metrics:
Adjusted quarterly average assets (in billions) (3)		$	2,592		$	2,592
Tier 1 leverage ratio		7.4		%	7.4		%	5.0

Supplementary leverage exposure (in billions)					$	3,101
Supplementary leverage ratio					6.2		%	6.0

(1)Risk-based capital regulatory minimums at both September 30, 2026 and December 31, 2025 are the minimum ratios under Basel 3 including a capital conservation buffer of 2.5 percent. The regulatory minimums for the Tier 1 leverage ratios as of both period ends, and the SLR as of December 31, 2025, are the percent required to be considered well capitalized under the PCA framework.

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

Total Loss-Absorbing Capacity Requirements

Total loss-absorbing capacity (TLAC) consists of the Corporation’s Tier 1 capital and eligible long-term debt issued directly by the Corporation. Eligible long-term debt for TLAC ratios is comprised of unsecured debt that has a remaining maturity of at least one year and satisfies additional requirements as prescribed in the TLAC final rule. As with the

risk-based capital ratios and SLR, the Corporation is required to maintain TLAC ratios in excess of minimum requirements plus applicable buffers to avoid restrictions on capital distributions and discretionary bonus payments to executive officers. Table 12 presents the Corporation's TLAC and long-term debt ratios and related information as of September 30, 2026 and December 31, 2025.


						Bank of America 22



Table 12	Bank of America Corporation Total Loss-Absorbing Capacity and Long-Term Debt

		TLAC			Regulatory Minimum (1)		Long-term Debt			Regulatory Minimum (2)
(Dollars in millions)		September 30, 2026
Total eligible balance		$	460,775				$	222,845
Percentage of risk-weighted assets (3)		25.3		%	22.0	%	12.2		%	9.0	%
Percentage of supplementary leverage exposure		11.3			8.25		5.5			3.25

		December 31, 2025
Total eligible balance		$	466,728				$	225,518
Percentage of risk-weighted assets (3)		26.3		%	22.0	%	12.7		%	9.0	%
Percentage of supplementary leverage exposure		11.7			9.5		5.7			4.5

(1)The TLAC RWA regulatory minimum consists of 18.0 percent plus a TLAC RWA buffer comprised of 2.5 percent plus the Method 1 G-SIB surcharge of 1.5 percent. The countercyclical buffer is zero for both periods. The TLAC supplementary leverage exposure regulatory minimum consists of 7.5 percent plus a 0.75 percent TLAC leverage buffer. The TLAC RWA and leverage buffers must be comprised solely of CET1 capital and Tier 1 capital, respectively.

(2)The long-term debt RWA regulatory minimum is comprised of 6.0 percent plus the Corporation’s Method 2 G-SIB surcharge of 3.0 percent. The long-term debt leverage exposure regulatory minimum is 3.25 percent, consisting of 2.5 percent plus a 0.75 percent long-term debt leverage buffer.

(3)The approach that yields the higher RWA is used to calculate TLAC and long-term debt ratios, which was the Standardized approach as of September 30, 2026 and December 31, 2025.

Regulatory Developments

The following supplements the disclosure in Capital Management – Regulatory Developments in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Final Rules Issued

On September 30, 2026, the Federal Reserve issued two final rules on stress test-related capital requirements. The first expands public disclosures and establishes annual public-input processes for supervisory stress test scenarios, models and material changes to those models. Implementation of future changes in published models could affect the outcome of the Corporation’s stress test results.

The second modifies the capital plan rule and SCB requirements. Effective January 1, 2029, results from the two most recent annual supervisory stress tests will be averaged to determine the Corporation’s SCB requirement. In addition, the annual effective date of the SCB requirement will change from October 1st to January 1st beginning with the requirement effective January 1, 2028. The Corporation’s SCB will remain at 2.5 percent through December 31, 2027.

Proposed Rules Issued

On September 30, 2026, the Federal Reserve issued a notice of proposed rulemaking (NPR) that would revise the noninterest income model that projects each bank’s fee income under stress. On March 19, 2026, the Federal Reserve, OCC and the Federal Deposit Insurance Corporation issued an NPR regarding risk-based capital requirements for large banking organizations. Separately, the Federal Reserve issued an NPR that would revise the calculation of the G-SIB surcharge.

The Corporation is evaluating the potential impact of the proposed rules on its regulatory capital requirements. Any final rules issued are subject to change from the current proposals.

Regulatory Capital and Securities Regulation

The Corporation’s principal U.S. broker-dealer subsidiaries are BofA Securities, Inc. (BofAS) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S). The Corporation's principal European subsidiaries undertaking broker-dealer activities are Merrill Lynch International (MLI) and BofA Securities Europe SA (BofASE).

The U.S. broker-dealer subsidiaries are subject to the net capital requirements of Rule 15c3-1 under the Exchange Act. BofAS computes its capital requirements as an alternative net capital broker-dealer under Rule 15c3-1(a)(7) and Rule 15c3-1e, which permit the use of SEC-approved models, and MLPF&S computes its capital requirements in accordance with the

alternative standard under Rule 15c3-1. BofAS is registered as a futures commission merchant and is subject to Commodity Futures Trading Commission (CFTC) Regulation 1.17. The U.S. broker-dealer subsidiaries are also registered with the Financial Industry Regulatory Authority, Inc. (FINRA). Pursuant to FINRA Rule 4110, FINRA may impose higher net capital requirements than Rule 15c3-1 under the Exchange Act with respect to each of the broker-dealers.

BofAS provides institutional services, and in accordance with the SEC alternative net capital requirements, is required to regularly maintain tentative net capital in excess of $5.0 billion and net capital in excess of the greater of $1.0 billion or a certain percentage of its reserve requirement in addition to a certain percentage of securities-based swap risk margin. BofAS must also notify the SEC in the event its tentative net capital is less than $6.0 billion. In accordance with CFTC net capital requirements, BofAS is required to hold a certain percentage of its customers' and affiliates' risk-based margin if greater than the SEC’s minimum net capital requirement. At September 30, 2026, BofAS had tentative net capital of $27.1 billion. BofAS also had regulatory net capital of $20.0 billion, which exceeded the minimum requirement of $4.9 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 September 30, 2026, MLPF&S' regulatory net capital was $12.7 billion, which exceeded the minimum requirement of $218 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 September 30, 2026, MLI’s capital resources were $34.5 billion, which exceeded the minimum Pillar 1 requirement of $12.4 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 September 30, 2026, BofASE's capital resources were $11.5 billion, which exceeded the minimum Pillar 1 requirement of $4.3 billion.

In addition, MLI and BofASE remained conditionally registered with the SEC as security-based swap dealers, and maintained net liquid assets at September 30, 2026 that exceeded the applicable minimum requirements under the Exchange Act. The entities are also registered as swap dealers


23 Bank of America

with the CFTC and met applicable capital requirements at September 30, 2026.

Liquidity Risk

Funding and Liquidity Risk Management

Our primary liquidity risk management objective is to meet expected or unexpected cash flow and collateral requirements, including payments under long-term debt agreements, commitments to extend credit and customer deposit withdrawals, while continuing to support our businesses and customers under a range of economic conditions. To achieve that objective, we analyze and monitor our liquidity risk under expected and stressed conditions, maintain liquidity and access to diverse funding sources, including our stable deposit base, and seek to align liquidity-related incentives and risks. These liquidity risk management practices have helped enable us to effectively navigate market volatility arising from the interest rate environment, inflationary pressures and broader macroeconomic changes.

We define liquidity as readily available assets, limited to cash and high-quality, liquid, unencumbered securities that we can use to meet our contractual and contingent financial obligations as they arise. We manage our liquidity position through line of business and ALM activities, as well as through our legal entity funding strategy, on both a forward and current (including intraday) basis under both expected and stressed conditions. We believe that a centralized approach to funding and liquidity management enhances our ability to monitor liquidity requirements, maximizes access to funding sources, minimizes borrowing costs and facilitates timely responses to liquidity events.

We provide centralized funding and liquidity management through a variety of activities, including monitoring of established limits, assessing exposures under both normal and stressed conditions and reviewing liquidity risk management processes and controls. Global Risk Management (GRM) provides oversight of liquidity management across the Corporation, including front line units and legal entities. GRM oversees the liquidity risk management governance structure, establishes liquidity risk policies, and provides independent review and challenge of the Corporation's liquidity risk management processes.

For more information on the Corporation’s liquidity risks, see the Liquidity section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K. For more information regarding global funding and liquidity risk management, as well as liquidity sources, liquidity arrangements, contingency planning and credit ratings discussed below, see Liquidity Risk in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

NB Holdings Corporation

Bank of America Corporation, as the parent company (the Parent), which is a separate and distinct legal entity from our bank and nonbank subsidiaries, has an intercompany arrangement with our wholly-owned holding company subsidiary, NB Holdings Corporation (NB Holdings). We have transferred, and agreed to transfer, additional Parent assets not required to satisfy anticipated near-term expenditures to NB Holdings. The Parent is expected to continue to have access to the same flow of dividends, interest and other amounts of cash necessary to service its debt, pay dividends and perform other obligations as it would have had it not entered into these arrangements and transferred any assets. These arrangements support our preferred single point of entry resolution strategy, under which

only the Parent would be resolved under the U.S. Bankruptcy Code.

Global Liquidity Sources and Other Unencumbered Assets

We maintain liquidity available to the Corporation, including the Parent and selected subsidiaries, in the form of cash and high- quality, liquid, unencumbered securities. Our liquidity buffer, referred to as Global Liquidity Sources (GLS), is comprised of assets that are readily available to the Parent and selected subsidiaries, including holding company, bank and broker-dealer subsidiaries, even during stressed market conditions. Our cash is primarily on deposit with the Federal Reserve Bank and, to a lesser extent, central banks outside of the U.S. We limit the composition of high-quality, liquid, unencumbered securities to U.S. government securities, U.S. agency securities, U.S. agency mortgage-backed securities and other investment-grade securities, and a select group of non-U.S. government securities. We can obtain cash for these securities, even in stressed conditions, through repurchase agreements or outright sales. We hold our GLS in legal entities that allow us to meet the liquidity requirements of our global businesses, and we consider the impact of potential regulatory, tax, legal and other restrictions that could limit the transferability of funds among entities.

Table 13 presents average GLS for the three months ended September 30, 2026 and December 31, 2025.



Table 13	Average Global Liquidity Sources

		Three Months Ended

(Dollars in billions)		September 30 2026		December 31 2025

Bank entities		$	718	$	789
Nonbank and other entities (1)		196		186
Total Average Global Liquidity Sources		$	914	$	975

(1) Nonbank includes Parent, NB Holdings and other regulated entities.

Our bank subsidiaries’ liquidity is primarily driven by deposit and lending activity, as well as securities valuation and net debt activity. Bank subsidiaries can also generate incremental liquidity by pledging a range of unencumbered loans and securities to certain Federal Home Loan Banks (FHLBs) and the Federal Reserve Discount Window. The cash we could have obtained by borrowing against this pool of specifically-identified eligible assets was $354 billion and $343 billion at September 30, 2026 and December 31, 2025. We have established operational procedures to enable us to borrow against these assets, including regularly monitoring our total pool of eligible loans and securities collateral. Eligibility is defined in guidelines from the FHLBs and the Federal Reserve and is subject to change at their discretion. Due to regulatory restrictions, liquidity generated by the bank subsidiaries can generally be used only to fund obligations within the bank subsidiaries, and transfers to the Parent or nonbank subsidiaries may be subject to prior regulatory approval.

Liquidity is also held in nonbank entities, including the Parent, NB Holdings and other regulated entities. The Parent and NB Holdings liquidity is typically in the form of cash deposited at BANA, which is excluded from the liquidity at bank subsidiaries, and high-quality, liquid, unencumbered securities. Liquidity held in other regulated entities, comprised primarily of broker-dealer subsidiaries, is primarily available to meet the obligations of that entity, and transfers to the Parent or to any other subsidiary may be subject to prior regulatory approval due to regulatory restrictions and minimum requirements. Our other regulated entities also hold unencumbered investment-grade


						Bank of America 24

securities and equities that we believe could be used to generate additional liquidity.

Table 14 presents the composition of average GLS for the three months ended September 30, 2026 and December 31, 2025.



Table 14	Average Global Liquidity Sources Composition

		Three Months Ended


(Dollars in billions)		September 30 2026		December 31 2025
Cash on deposit		$	229	$	227
U.S. Treasury securities		285		371
U.S. agency securities, mortgage-backed securities, and other investment-grade securities		354		336
Non-U.S. government securities (1)		46		41
Total Average Global Liquidity Sources		$	914	$	975

(1) Includes debt securities issued by multilateral development banks and the European Union.

Our GLS are substantially the same in composition as what qualifies as High Quality Liquid Assets (HQLA) under the final U.S. Liquidity Coverage Ratio (LCR) rules. However, HQLA for purposes of calculating LCR is not reported at market value, but 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 $696 billion and $667 billion for the three months ended September 30, 2026 and December 31, 2025. For the same periods, the average consolidated LCR was 113 percent and 112 percent. Our LCR may fluctuate due to normal business flows from customer activity.

Liquidity Stress Analysis

We utilize liquidity stress analysis to assist us in determining the appropriate amounts of liquidity to maintain at the Parent and our subsidiaries to meet contractual and contingent cash outflows under a range of scenarios. For more information on liquidity stress analysis, see Liquidity Risk – Liquidity Stress Analysis in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Net Stable Funding Ratio

The Net Stable Funding Ratio (NSFR) is a liquidity requirement for large banks to maintain a minimum level of stable funding over a one-year period. The requirement is intended to support the ability of banks to lend to households and businesses in both normal and adverse economic conditions and is complementary to the LCR, which focuses on short-term liquidity risks. The U.S. NSFR applies to the Corporation on a consolidated basis and to our insured depository institutions. At September 30, 2026, the Corporation and its insured depository institutions were in compliance with the U.S. NSFR. For more information, see the Basel Pillar 3 Disclosures for the

quarters ended March 31, 2026 and June 30, 2026 on the Corporation’s website, the contents of which are not incorporated by reference into this Quarterly Report on Form 10-Q.

Diversified Funding Sources

We fund our assets primarily with a mix of deposits, and secured and unsecured liabilities through a centralized, globally coordinated funding approach diversified across products, programs, markets, currencies and investor groups. We fund a substantial portion of our lending activities through our deposits, which were $2.04 trillion and $2.02 trillion at September 30, 2026 and December 31, 2025. Our trading activities in other regulated entities are primarily funded on a secured basis through securities lending and repurchase agreements, and these amounts will vary based on customer activity and market conditions.

Deposits

Our deposit base is well-diversified by clients, geography and product type across our business segments. At September 30, 2026, 47 percent of our deposits were in Consumer Banking, 14 percent in GWIM and 34 percent in Global Banking. We consider a substantial portion of our deposit base to be a stable, low-cost and consistent source of liquidity. At September 30, 2026, approximately 70 percent of consumer and small business deposits and approximately 83 percent of U.S. deposits in Global Banking were held by clients who have had accounts with us for 10 or more years. In addition, at September 30, 2026 and December 31, 2025, 27 percent and 26 percent of our deposits were noninterest bearing and were primarily operating accounts of our consumer and commercial clients. Deposits at September 30, 2026 increased $20.0 billion from December 31, 2025 primarily due to deposit growth in Global Banking, partially offset by lower deposits in GWIM and Consumer Banking.

During the three months ended September 30, 2026 and 2025, rates paid on deposits were 51 bps and 58 bps in Consumer Banking, 207 bps and 249 bps in GWIM, and 227 bps and 280 bps in Global Banking. For information on rates paid on consolidated deposit balances, see Table 6 on page 8.

Long-term Debt

During the nine months ended September 30, 2026, we issued $92.5 billion of long-term debt consisting of $24.3 billion of notes issued by Bank of America Corporation, substantially all of which were TLAC compliant, $29.0 billion of notes issued by Bank of America, N.A. and $39.2 billion of other debt, which was primarily structured notes.

During the nine months ended September 30, 2026, we had total long-term debt maturities and redemptions in the aggregate of $83.1 billion consisting of $29.4 billion for Bank of America Corporation, $24.8 billion for Bank of America, N.A. and $28.9 billion of other debt. Table 15 presents the carrying value of aggregate annual contractual maturities of long-term debt at September 30, 2026.


25 Bank of America



Table 15	Long-term Debt by Maturity

(Dollars in millions)		Remainder of 2026		2027		2028		2029		2030		Thereafter		Total
Bank of America Corporation
Senior notes (1)		$	413	$	2,482	$	30,219	$	26,400	$	11,920	$	99,064	$	170,498
Senior structured notes		589		2,421		704		1,682		1,021		15,362		21,779
Subordinated notes		2,154		2,000		861		—		—		20,045		25,060
Junior subordinated notes		—		198		—		—		—		557		755
Total Bank of America Corporation		3,156		7,101		31,784		28,082		12,941		135,028		218,092
Bank of America, N.A.
Senior notes		1,918		17,938		697		—		—		—		20,553
Subordinated notes		—		—		—		—		—		1,394		1,394
Advances from Federal Home Loan Banks		246		4,762		7		1		4		29		5,049
Securitizations and other bank VIEs (2)		1,497		1,234		1,723		1,949		542		180		7,125
Other		27		246		139		219		—		32		663
Total Bank of America, N.A.		3,688		24,180		2,566		2,169		546		1,635		34,784
Other debt
Structured liabilities		1,853		12,128		7,239		6,091		4,816		33,467		65,594
Nonbank VIEs (2)		—		—		23		1		8		185		217
Total other debt		1,853		12,128		7,262		6,092		4,824		33,652		65,811
Total		$	8,697	$	43,409	$	41,612	$	36,343	$	18,311	$	170,315	$	318,687

(1)Total includes $162.4 billion of outstanding senior notes that are both TLAC eligible and callable one year before their stated maturities, including $2.6 billion during the remainder of 2026, and $27.3 billion, $27.5 billion, $11.9 billion and $20.9 billion during each year of 2027 through 2030, respectively, and $72.2 billion thereafter. For more information on our TLAC eligible and callable outstanding notes, see Liquidity Risk – Diversified Funding Sources in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

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

Total long-term debt increased $871 million to $318.7 billion during the nine months ended September 30, 2026 primarily due to debt issuances, partially offset by maturities and valuation adjustments. We may, from time to time, repurchase outstanding debt instruments in various transactions, depending on market conditions, liquidity and other factors. Our other regulated entities may also make markets in our debt instruments to provide liquidity for investors.

During the nine months ended September 30, 2026, we issued $45.3 billion of structured notes, which are debt obligations that pay investors returns linked to other debt or equity securities, indices, currencies or commodities. These structured notes are typically issued to meet client demand, and notes with certain attributes may also be TLAC eligible. We typically use derivatives and/or investments to economically hedge the variable returns due on the structured notes so that the net cost, which is recognized in market making and similar activities, is similar to unsecured long-term debt. We could be required to settle certain structured note obligations for cash or other securities prior to maturity under certain circumstances, which we consider for liquidity planning purposes. We believe, however, that a portion of such borrowings will remain outstanding beyond the earliest put or redemption date.

Substantially all of our senior and subordinated debt obligations contain no provisions that could trigger a requirement for an early repayment, require additional collateral support, result in changes to terms, accelerate maturity or create additional financial obligations upon an adverse change in our credit ratings, financial ratios, earnings, cash flows or stock price. For more information on long-term debt funding, including issuances and maturities and redemptions, see Note 11 – Long-term Debt to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

We use derivative transactions to manage the duration, interest rate and currency risks of our borrowings, considering the characteristics of the assets they are funding. For more information on our ALM activities, see Interest Rate Risk Management for the Banking Book on page 43.

Credit Ratings

Credit ratings and outlooks are opinions expressed by rating agencies on our creditworthiness and that of our obligations or securities, including long-term debt, short-term borrowings, preferred stock and other securities, including asset securitizations. Table 16 presents the Corporation’s current long-term/short-term senior debt ratings and outlooks expressed by the rating agencies.

The ratings and outlooks from Moody's Investors Service, Standard & Poor’s Global Ratings and Fitch Ratings for the Corporation have not changed from those disclosed in the Corporation's 2025 Annual Report on Form 10-K. On August 27, 2026, Moody's Investors Service assigned Aa2 long-term issuer ratings and Prime-1 short-term issuer ratings, each with a stable outlook, to BofAS and BofASE. The ratings and outlooks from Standard & Poor’s Global Ratings and Fitch Ratings for the Corporation's rated subsidiaries have not changed from those disclosed in the Corporation's 2025 Annual Report on Form 10-K.

For more information on additional collateral and termination payments that could be required in connection with certain over-the-counter derivative contracts and other trading agreements in the event of a credit rating downgrade, see Note 3 – Derivatives to the Consolidated Financial Statements herein and Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K.


						Bank of America 26

Table 16

Senior Debt Ratings

Moody’s Investors Service

Standard & Poor’s Global Ratings

Fitch Ratings

Long-term

Short-term

Outlook

Long-term

Short-term

Outlook

Long-term

Short-term

Outlook

Bank of America Corporation

P-1

Stable

A-

A-2

Stable

AA-

F1+

Stable

Bank of America, N.A.

Aa2

P-1

Stable

A+

A-1

Stable

F1+

Stable

Bank of America Europe Designated Activity Company

A+

A-1

Stable

F1+

Stable

Merrill Lynch, Pierce, Fenner & Smith Incorporated

A+

A-1

Stable

F1+

Stable

BofA Securities, Inc.

Aa2

P-1

Stable

A+

A-1

Stable

F1+

Stable

Merrill Lynch International

A+

A-1

Stable

F1+

Stable

BofA Securities Europe SA

Aa2

P-1

Stable

A+

A-1

Stable

F1+

Stable

NR = not rated

Finance Subsidiary Issuers and Parent Guarantor

BofA Finance LLC, a Delaware limited liability company (BofA Finance), is a consolidated finance subsidiary of the Corporation that has issued and sold, and is expected to continue to issue and sell, its senior unsecured debt securities (Guaranteed Notes) that are fully and unconditionally guaranteed by the Corporation. The Corporation guarantees the due and punctual payment, on demand, of amounts payable on the Guaranteed Notes if not paid by BofA Finance. In addition, each of BAC Capital Trust XIII, BAC Capital Trust XIV and BAC Capital Trust XV, Delaware statutory trusts (collectively, the Trusts) is a 100 percent owned finance subsidiary of the Corporation that has issued and sold trust preferred securities (the Trust Preferred Securities) or capital securities (the Capital Securities and, together with the Guaranteed Notes and the Trust Preferred Securities, the Guaranteed Securities), as applicable, that remained outstanding at September 30, 2026. The Corporation has fully and unconditionally guaranteed (or effectively provided for the full and unconditional guarantee of) all such securities issued by such finance subsidiaries. For more information regarding such guarantees by the Corporation, see Liquidity Risk – Finance Subsidiary Issuers and Parent Guarantor in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Representations and Warranties Obligations

For information on representations and warranties obligations in connection with the sale of mortgage loans, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

Credit Risk Management

For information on our credit risk management activities, see the following: Consumer Portfolio Credit Risk Management on page 27, Commercial Portfolio Credit Risk Management on page 32, Non-U.S. Portfolio on page 38, Allowance for Credit Losses on page 39, Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements, and Credit Risk Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K. For more information on the Corporation’s credit risks, see the Credit section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K. For more information on the Corporation’s economic and geopolitical risks, see the Geopolitical section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K.

During the nine months ended September 30, 2026, our net charge-off ratio decreased compared to the same period in 2025 primarily driven by lower commercial real estate office and credit card charge-offs. Commercial reservable criticized

exposure decreased $4.8 billion compared to December 31, 2025 driven by commercial real estate as well as the commercial and industrial portfolio. Nonperforming loans decreased $260 million compared to December 31, 2025 driven by commercial real estate. Uncertainties surrounding geopolitical tensions, particularly related to the ongoing conflicts in the Middle East, and persistent inflationary pressures continue to weigh on the broader economic outlook. These factors have been assessed for any impacts to the portfolio and may contribute to future deterioration in credit quality metrics as they evolve.

Consumer Portfolio Credit Risk Management

Credit risk management for the consumer portfolio begins with initial underwriting and continues throughout a borrower’s credit cycle. Statistical techniques in conjunction with experiential judgment are used in all aspects of portfolio management including underwriting, product pricing, risk appetite, setting credit limits, and establishing operating processes and metrics to quantify and balance risks and returns. Statistical models are built using detailed behavioral information from external sources, such as credit bureaus, and/or internal historical experience and are a component of our consumer credit risk management process. These models are used in part to assist in making both new and ongoing credit decisions as well as portfolio management strategies, including authorizations and line management, collection practices and strategies, and determination of the allowance for loan and lease losses and allocated capital for credit risk.

Consumer Credit Portfolio

During the nine months ended September 30, 2026, the U.S. unemployment rate and home prices remained relatively stable. During the three months ended September 30, 2026, net charge-offs remained relatively unchanged at $997 million compared to the same period in 2025. During the nine months ended September 30, 2026, net charge-offs decreased $60 million to $3.1 billion compared to the same period in 2025, primarily due to improvement in the credit card portfolio.

The consumer allowance for loan and lease losses decreased $210 million to $8.2 billion from December 31, 2025. For more information, see Allowance for Credit Losses on page 39.

For more information on our accounting policies regarding delinquencies, nonperforming status, charge-offs and loan modifications for the consumer portfolio, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.


27 Bank of America

Table 17 presents our outstanding consumer loans and leases, consumer nonperforming loans and accruing consumer loans past due 90 days or more.



Table 17	Consumer Credit Quality

		Outstandings				Nonperforming						Accruing Past Due 90 Days or More


(Dollars in millions)		September 30 2026		December 31 2025		September 30 2026			December 31 2025			September 30 2026			December 31 2025
Residential mortgage (1)		$	236,522	$	236,302	$	2,076		$	2,008		$	218		$	207
Home equity		27,417		26,823		366			392			—			—
Credit card		107,342		106,027		n/a			n/a			1,211			1,351
Direct/Indirect consumer (2)		119,356		114,130		168			176			2			5
Other consumer		156		144		—			—			—			—
Consumer loans excluding loans accounted for under the fair value option		$	490,793	$	483,426	$	2,610		$	2,576		$	1,431		$	1,563
Loans accounted for under the fair value option (3)		156		165
Total consumer loans and leases		$	490,949	$	483,591
Percentage of outstanding consumer loans and leases (4)		n/a		n/a		0.53		%	0.53		%	0.29		%	0.32		%
Percentage of outstanding consumer loans and leases, excluding fully-insured loan portfolios (4)		n/a		n/a		0.54			0.54			0.25			0.29

(1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At September 30, 2026 and December 31, 2025, residential mortgage included $123 million and $104 million of loans on which interest had been curtailed by the Federal Housing Administration (FHA), and therefore were no longer accruing interest, although principal was still insured, and $95 million and $103 million of loans on which interest was still accruing.

(2)Outstandings primarily includes auto and specialty lending loans and leases of $50.9 billion and $55.3 billion, U.S. securities-based lending loans of $64.3 billion and $55.0 billion, and non-U.S. consumer loans of $3.3 billion and $3.0 billion at September 30, 2026 and December 31, 2025.

(3)For more information on the fair value option, see Note 15 – Fair Value Option to the Consolidated Financial Statements.

(4)Excludes consumer loans accounted for under the fair value option. At September 30, 2026 and December 31, 2025, loans accounted for under the fair value option that were past due 90 days or more and not accruing interest were insignificant.

n/a = not applicable

Table 18 presents net charge-offs and related ratios for consumer loans and leases.



Table 18	Consumer Net Charge-offs and Related Ratios

		Net Charge-offs (1)								Net Charge-off Ratios (1)
		Three Months Ended September 30				Nine Months Ended September 30				Three Months Ended September 30				Nine Months Ended September 30

(Dollars in millions)		2026		2025		2026		2025		2026		2025		2026		2025
Residential mortgage		$	—	$	(1)	$	6	$	1	—	%	—	%	—	%	—	%
Home equity		(5)		(11)		(18)		(33)		(0.08)		(0.17)		(0.09)		(0.17)
Credit card		859		880		2,702		2,835		3.22		3.46		3.47		3.78

Direct/Indirect consumer		61		55		191		172		0.20		0.20		0.22		0.21
Other consumer		82		55		215		181		n/m		n/m		n/m		n/m
Total		$	997	$	978	$	3,096	$	3,156	0.81		0.82		0.86		0.90

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

n/m = not meaningful

We believe that the presentation of information adjusted to exclude the impact of the fully-insured loan portfolio and loans accounted for under the fair value option is more representative of the ongoing operations and credit quality of the business. As a result, in the following tables and discussions of the residential mortgage and home equity portfolios, we exclude loans accounted for under the fair value option and provide information that excludes the impact of the fully-insured loan portfolio in certain credit quality statistics.

Residential Mortgage

The residential mortgage portfolio made up the largest percentage of our consumer loan portfolio at 48 percent of consumer loans and leases at September 30, 2026. Approximately 49 percent of the residential mortgage portfolio was in Consumer Banking, 48 percent was in GWIM and the remaining portion was in Global Markets and All Other.

Outstanding balances in the residential mortgage portfolio remained relatively unchanged during the nine months ended September 30, 2026.

At September 30, 2026 and December 31, 2025, the residential mortgage portfolio included $8.4 billion and $9.1 billion of outstanding fully-insured loans, of which $1.8 billion and $1.9 billion had FHA insurance, with the remainder protected by Fannie Mae long-term standby agreements.

Table 19 presents certain residential mortgage key credit statistics on both a reported basis and excluding the fully-insured loan portfolio. The following discussion presents the residential mortgage portfolio excluding the fully-insured loan portfolio.


						Bank of America 28



Table 19	Residential Mortgage – Key Credit Statistics

		Reported Basis (1)						Excluding Fully-insured Loans (1)


(Dollars in millions)		September 30 2026			December 31 2025			September 30 2026			December 31 2025
Outstandings		$	236,522		$	236,302		$	228,085		$	227,227
Accruing past due 30 days or more		1,685			1,609			1,270			1,159
Accruing past due 90 days or more		218			207			—			—
Nonperforming loans (2)		2,076			2,008			2,076			2,008
Percent of portfolio
Refreshed LTV greater than 90 but less than or equal to 100		1		%	1		%	1		%	1		%
Refreshed LTV greater than 100		1			1			1			1
Refreshed FICO below 620		2			2			1			1

(1)Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option.

(2)Includes loans that are contractually current that have not yet demonstrated a sustained period of payment performance following a modification.

Nonperforming outstanding balances in the residential mortgage portfolio totaled $2.1 billion at September 30, 2026, relatively unchanged compared to December 31, 2025. Of the nonperforming residential mortgage loans at September 30, 2026, $1.2 billion, or 57 percent, were current on contractual payments. Excluding fully-insured loans, loans accruing past due 30 days or more increased $111 million to $1.3 billion during the nine months ended September 30, 2026.

Of the $228.1 billion in total residential mortgage loans outstanding at September 30, 2026, $66.9 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 $3.9 billion, or six percent, at September 30, 2026. Residential mortgage loans that have entered the amortization period generally experience a higher rate of early stage delinquencies and nonperforming status compared to the residential mortgage portfolio as a whole. At September 30, 2026, $40 million, or one percent, of outstanding interest-only residential mortgages that had entered the amortization period were accruing past due 30 days or more compared to $1.3 billion, or less than one percent, for the

entire residential mortgage portfolio. In addition, at September 30, 2026, $182 million, or five percent, of outstanding interest-only residential mortgage loans that had entered the amortization period were nonperforming, of which $65 million were contractually current. Loans that have yet to enter the amortization period in our interest-only residential mortgage portfolio are primarily well-collateralized loans to our wealth management clients and have an interest-only period of three years to 10 years. Substantially all of these loans that have yet to enter the amortization period will not be required to make a fully-amortizing payment until 2028 or later.

Table 20 presents outstandings, nonperforming loans and net charge-offs by certain state concentrations for the residential mortgage portfolio. In the New York area, the New York-Northern New Jersey-Long Island Metropolitan Statistical Area (MSA) made up 14 percent and 15 percent of outstandings at September 30, 2026 and December 31, 2025. The Los Angeles-Long Beach-Santa Ana MSA within California represented 14 percent of outstandings at both September 30, 2026 and December 31, 2025.



Table 20	Residential Mortgage State Concentrations

		Outstandings (1)				Nonperforming (1)				Net Charge-offs (2)
		September 30 2026		December 31 2025		September 30 2026		December 31 2025		Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)										2026		2025		2026		2025



California		$	83,539	$	82,719	$	659	$	601	$	—	$	(3)	$	2	$	(1)
New York		25,854		25,927		275		277		—		1		1		1
Florida		17,061		16,696		162		139		—		—		(1)		—
Massachusetts		9,543		9,674		44		51		(1)		—		(1)		—
New Jersey		9,294		9,474		77		83		(2)		—		(2)		—
Other		82,794		82,737		859		857		3		1		7		1
Residential mortgage loans		$	228,085	$	227,227	$	2,076	$	2,008	$	—	$	(1)	$	6	$	1
Fully-insured loan portfolio		8,437		9,075

Total residential mortgage loan portfolio		$	236,522	$	236,302

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

(2)Negative numbers represent net recoveries.

Home Equity

At September 30, 2026, the home equity portfolio made up six percent of the consumer portfolio and was comprised of home equity lines of credit (HELOCs), home equity loans and reverse mortgages. HELOCs generally have an initial draw period of 10 years, and after the initial draw period ends, the loans generally convert to 15- or 20-year amortizing loans. We no longer originate home equity loans or reverse mortgages.

At September 30, 2026, 85 percent of the home equity portfolio was in Consumer Banking, 11 percent was in GWIM and the remainder of the portfolio was in All Other. Outstanding balances in the home equity portfolio increased $594 million during the nine months ended September 30, 2026 primarily due to draws on existing lines and new originations outpacing paydowns. Of the total home equity portfolio at September 30, 2026 and December 31, 2025, $8.8 billion and $8.9 billion, or 32 percent and 33 percent, were in first-lien positions.


29 Bank of America

At September 30, 2026, outstanding balances in the home equity portfolio that were in a second-lien or more junior-lien position and where we also held the first-lien loan totaled $4.8 billion, or 18 percent, of our total home equity portfolio.

Unused HELOCs totaled $42.1 billion and $43.1 billion at September 30, 2026 and December 31, 2025. The HELOC utilization rate was 39 percent and 38 percent at September 30, 2026 and December 31, 2025.

Table 21 presents certain home equity portfolio key credit statistics.



Table 21	Home Equity – Key Credit Statistics (1)



(Dollars in millions)							September 30 2026		December 31 2025
Outstandings							$	27,417	$	26,823
Accruing past due 30 days or more				73		87
Nonperforming loans (2)							366		392
Percent of portfolio
Refreshed CLTV greater than 90 but less than or equal to 100		—	%	—	%
Refreshed CLTV greater than 100				—		—
Refreshed FICO below 620							3		3

(1)Outstandings, accruing past due, nonperforming loans and percentages of the portfolio exclude loans accounted for under the fair value option.

(2)Includes loans that are contractually current that have not yet demonstrated a sustained period of payment performance following a modification.

Nonperforming outstanding balances in the home equity portfolio decreased $26 million to $366 million during the nine months ended September 30, 2026. Of the nonperforming home equity loans at September 30, 2026, $233 million, or 64 percent, were current on contractual payments. In addition, $66 million, or 18 percent, were 180 days or more past due and had been written down to the estimated fair value of the collateral, less costs to sell. Accruing loans that were 30 days or more past due remained relatively unchanged during the nine months ended September 30, 2026.

Of the $27.4 billion in total home equity portfolio outstandings at September 30, 2026, as shown in Table 21, nine percent require interest-only payments. The outstanding balance of HELOCs that had reached the end of their draw period and entered the amortization period was $3.1 billion at September 30, 2026. The HELOCs that have entered the amortization period have experienced a higher percentage of early stage delinquencies and nonperforming status when compared to the HELOC portfolio as a whole. At September 30, 2026, $21 million, or one percent, of outstanding HELOCs that

had entered the amortization period were accruing past due 30 days or more. In addition, at September 30, 2026, $188 million, or six percent, were nonperforming.

For our interest-only HELOC portfolio, we can determine how many of our home equity customers pay only the minimum amount due on their home equity loans and lines through a review of our HELOC portfolio that we service and is still in its revolving period. During the nine months ended September 30, 2026, 23 percent of these customers with an outstanding balance did not pay any principal on their HELOCs.

Table 22 presents outstandings, nonperforming balances and net recoveries by certain state concentrations for the home equity portfolio. In the New York area, the New York-Northern New Jersey-Long Island MSA made up 10 percent of the outstanding home equity portfolio at both September 30, 2026 and December 31, 2025. The Los Angeles-Long Beach-Santa Ana MSA within California made up 10 percent of the outstanding home equity portfolio at both September 30, 2026 and December 31, 2025.



Table 22	Home Equity State Concentrations

		Outstandings (1)				Nonperforming (1)				Net Charge-offs (2)


		September 30 2026		December 31 2025		September 30 2026		December 31 2025		Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)										2026		2025		2026		2025
California		$	7,283	$	7,219	$	103	$	108	$	2	$	(2)	$	(1)	$	(7)
Florida		2,568		2,588		40		43		(1)		(1)		(3)		(3)
New Jersey		1,919		1,871		24		27		(2)		(1)		(4)		(3)
Texas		1,743		1,674		16		17		—		—		1		—
New York		1,397		1,421		48		55		(2)		(2)		(4)		(5)
Other		12,507		12,050		135		142		(2)		(5)		(7)		(15)
Total home equity loan portfolio		$	27,417	$	26,823	$	366	$	392	$	(5)	$	(11)	$	(18)	$	(33)

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

(2)Negative numbers represent net recoveries.

Credit Card

At September 30, 2026, 96 percent of the credit card portfolio was managed in Consumer Banking with the remainder in GWIM. Outstandings in the credit card portfolio increased $1.3 billion during the nine months ended September 30, 2026 to $107.3 billion, as purchase volume and card transfers more than offset payments.

Net charge-offs decreased $21 million to $859 million and decreased $133 million to $2.7 billion during the three and nine months ended September 30, 2026 compared to the same periods in 2025, as asset quality continued to improve. Credit card loans 30 days or more past due decreased $116 million to $2.5 billion, and 90 days or more past due decreased $140 million to $1.2 billion during the nine months ended September 30, 2026.


						Bank of America 30

Unused lines of credit for credit card increased to $436.5 billion at September 30, 2026 from $417.6 billion at December 31, 2025.

Table 23 presents certain state concentrations for the credit card portfolio.



Table 23	Credit Card State Concentrations

		Outstandings				Past Due 90 Days or More				Net Charge-offs


		September 30 2026		December 31 2025		September 30 2026		December 31 2025		Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)										2026		2025		2026		2025
California		$	17,752	$	17,664	$	215	$	241	$	162	$	167	$	496	$	546
Florida		11,295		11,169		170		192		121		124		384		391
Texas		9,569		9,403		126		142		85		87		275		280
Washington		6,036		5,853		45		47		30		31		92		94
New York		5,888		5,822		70		80		51		53		160		171
Other		56,802		56,116		585		649		410		418		1,295		1,353
Total credit card portfolio		$	107,342	$	106,027	$	1,211	$	1,351	$	859	$	880	$	2,702	$	2,835

Direct/Indirect Consumer

At September 30, 2026, 43 percent of the direct/indirect portfolio was included in Consumer Banking (consumer auto and recreational vehicle lending) and 57 percent was included in GWIM (principally securities-based lending loans). Outstandings

in the direct/indirect portfolio increased $5.2 billion during the nine months ended September 30, 2026 to $119.4 billion driven by an increase in securities-based lending.

Table 24 presents certain state concentrations for the direct/indirect consumer loan portfolio.



Table 24	Direct/Indirect State Concentrations

		Outstandings				Nonperforming				Net Charge-offs


		September 30 2026		December 31 2025		September 30 2026		December 31 2025		Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)										2026		2025		2026		2025

California		$	17,982	$	17,247	$	40	$	44	$	22	$	15	$	69	$	44
Florida		16,518		15,127		18		20		7		6		21		21
Texas		11,571		11,051		16		17		7		7		21		21
New York		8,626		8,019		23		10		2		3		6		10
New Jersey		5,112		4,740		5		6		1		1		4		4
Other		59,547		57,946		66		79		22		23		70		72
Total direct/indirect loan portfolio		$	119,356	$	114,130	$	168	$	176	$	61	$	55	$	191	$	172

Other Consumer

Other consumer primarily consists of deposit overdraft balances. Net charge-offs increased $27 million to $82 million and $34 million to $215 million during the three and nine months ended September 30, 2026 compared to the same periods in 2025 primarily driven by higher overdraft losses.

Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

Table 25 presents nonperforming consumer loans, leases and foreclosed properties activity for the three and nine months ended September 30, 2026 and 2025. Nonperforming consumer loans totaled $2.6 billion at September 30, 2026, relatively unchanged compared to December 31, 2025.

At September 30, 2026, $481 million, or 18 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 September 30, 2026, $1.5 billion, or 56 percent, of nonperforming consumer loans were current and classified as nonperforming loans in accordance with applicable policies.

During the nine months ended September 30, 2026, foreclosed properties decreased $4 million to $86 million.


31 Bank of America



Table 25	Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity

		Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions)		2026			2025			2026		2025
Nonperforming loans and leases, beginning of period		$	2,590		$	2,564		$	2,576	$	2,647
Additions		291			253			991		759
Reductions:
Paydowns and payoffs		(118)			(137)			(371)		(380)
Sales		—			(1)			(87)		(3)
Returns to performing status (1)		(133)			(136)			(439)		(447)
Charge-offs		(15)			(5)			(42)		(23)
Transfers to foreclosed properties		(5)			(7)			(18)		(22)

Total net additions (reductions) to nonperforming loans and leases		20			(33)			34		(116)
Total nonperforming loans and leases, September 30		2,610			2,531			2,610		2,531
Foreclosed properties, September 30		86			97			86		97
Nonperforming consumer loans, leases and foreclosed properties, September 30		$	2,696		$	2,628		$	2,696	$	2,628
Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases (2)		0.53		%	0.53		%
Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties (2)		0.55			0.54

(1)Consumer loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection.

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

Commercial Portfolio Credit Risk Management

Commercial credit risk is evaluated and managed with the goal that concentrations of credit exposure continue to be aligned with our risk appetite. We review, measure and manage concentrations of credit exposure by industry, product, geography, customer relationship and loan size. We also review, measure and manage commercial real estate loans by geographic location and property type. In addition, within our non-U.S. portfolio, we evaluate exposures by region and by country. Tables 30, 32 and 35 summarize our concentrations. We also utilize syndications of exposure to third parties, loan sales, hedging and other risk mitigation techniques to manage the size and risk profile of the commercial credit portfolio. For more information on our industry concentrations, see Table 32 and Commercial Portfolio Credit Risk Management – Industry Concentrations on page 36.

For more information on our accounting policies regarding delinquencies, nonperforming status and net charge-offs, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

Commercial Credit Portfolio

Outstanding commercial loans and leases increased $58.2 billion during the nine months ended September 30, 2026 due to growth in U.S. and Non-U.S. commercial, primarily in Global Banking and GWIM. During the nine months ended September 30, 2026, commercial credit quality improved, as the reservable criticized utilized exposure decreased $4.8 billion and reservable criticized utilized exposure rate improved to 2.49 percent from 3.37 percent as of December 31, 2025. Nonperforming commercial loans decreased $294 million during the nine months ended September 30, 2026, primarily due to

commercial real estate. Commercial net charge-offs decreased $37 million to $352 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to lower charge-offs in the U.S. Commercial portfolio. For the nine months ended September 30, 2026, commercial net charge-offs decreased $114 million to $1.1 billion compared to the same period in 2025, reflecting continued asset quality improvement in the commercial real estate portfolio, partially offset by higher charge-offs in the commercial and industrial portfolio.

We are closely monitoring emerging trends, including the ongoing conflicts in the Middle East and elevated energy prices, as well as borrower performance in the current environment.

The commercial allowance for loan and lease losses remained relatively unchanged during the nine months ended September 30, 2026 at $4.8 billion. For more information, see Allowance for Credit Losses on page 39.

Total commercial utilized credit exposure increased $81.3 billion during the nine months ended September 30, 2026 to $889.7 billion primarily driven by higher loans and leases, as well as derivative assets. The utilization rate for loans and leases, standby letters of credit (SBLCs) and financial guarantees, and commercial letters of credit, in the aggregate, was 56 percent and 55 percent at September 30, 2026 and December 31, 2025, respectively.

Table 26 presents commercial credit exposure by type for utilized, unfunded and total binding committed credit exposure. Commercial utilized credit exposure includes SBLCs and financial guarantees and commercial letters of credit that have been issued and for which we are legally bound to advance funds under prescribed conditions during a specified time period, and excludes exposure related to trading account assets. Although funds have not yet been advanced, these exposure types are considered utilized for credit risk management purposes.


						Bank of America 32



Table 26	Commercial Credit Exposure by Type

		Commercial Utilized (1)				Commercial Unfunded (2, 3, 4)				Total Commercial Committed


(Dollars in millions)		September 30 2026		December 31 2025		September 30 2026		December 31 2025		September 30 2026		December 31 2025
Loans and leases		$	760,311	$	702,109	$	619,089	$	596,676	$	1,379,400	$	1,298,785
Derivative assets (5)		53,148		40,881		—		—		53,148		40,881
Standby letters of credit and financial guarantees		41,364		35,048		2,289		2,081		43,653		37,129
Debt securities and other investments		20,257		19,155		3,646		3,391		23,903		22,546
Loans held-for-sale		5,049		3,450		12,372		17,151		17,421		20,601
Operating leases		6,590		5,686		—		—		6,590		5,686
Commercial letters of credit		918		748		—		—		918		748
Other		2,100		1,312		—		—		2,100		1,312
Total		$	889,737	$	808,389	$	637,396	$	619,299	$	1,527,133	$	1,427,688

(1)Commercial utilized exposure includes loans of $3.2 billion and $3.3 billion accounted for under the fair value option at September 30, 2026 and December 31, 2025.

(2)Commercial unfunded exposure includes commitments accounted for under the fair value option with a notional amount of $3.7 billion and $2.3 billion at September 30, 2026 and December 31, 2025.

(3)Excludes unused business card lines, which are not legally binding.

(4)Includes the notional amount of unfunded legally binding lending commitments, net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.5 billion and $10.6 billion at September 30, 2026 and December 31, 2025.

(5)Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $33.6 billion and $27.2 billion at September 30, 2026 and December 31, 2025. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $83.6 billion and $71.4 billion at September 30, 2026 and December 31, 2025, which consists primarily of other marketable securities.

Nonperforming commercial loans decreased $294 million during the nine months ended September 30, 2026, driven by commercial real estate. Table 27 presents our commercial loans and leases portfolio and related credit quality information at September 30, 2026 and December 31, 2025.



Table 27	Commercial Credit Quality

		Outstandings				Nonperforming				Accruing Past Due 90 Days or More

(Dollars in millions)		September 30 2026		December 31 2025		September 30 2026		December 31 2025		September 30 2026		December 31 2025
Commercial and industrial:
U.S. commercial		$	472,395	$	436,242	$	1,702	$	1,404	$	225	$	302
Non-U.S. commercial		170,299		155,045		249		80		15		9
Total commercial and industrial		642,694		591,287		1,951		1,484		240		311
Commercial real estate		75,222		68,748		888		1,596		40		10
Commercial lease financing		15,265		16,241		59		97		18		33
		733,181		676,276		2,898		3,177		298		354
U.S. small business commercial (1)		23,945		22,500		36		51		175		204
Commercial loans excluding loans accounted for under the fair value option		$	757,126	$	698,776	$	2,934	$	3,228	$	473	$	558
Loans accounted for under the fair value option (2)		3,185		3,333
Total commercial loans and leases		$	760,311	$	702,109

(1)Includes card-related products.

(2)Commercial loans accounted for under the fair value option includes U.S. commercial of $2.1 billion and $2.1 billion and non-U.S. commercial of $1.0 billion and $1.2 billion at September 30, 2026 and December 31, 2025. For more information on the fair value option, see Note 15 – Fair Value Option to the Consolidated Financial Statements.

Table 28 presents net charge-offs and related ratios for the three and nine months ended September 30, 2026 and 2025.



Table 28	Commercial Net Charge-offs and Related Ratios

		Net Charge-offs								Net Charge-off Ratios (1)
		Three Months Ended September 30				Nine Months Ended September 30				Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)		2026		2025		2026		2025		2026		2025		2026		2025
Commercial and industrial:
U.S. commercial		$	80	$	135	$	392	$	334	0.07	%	0.13	%	0.12	%	0.11	%
Non-U.S. commercial		36		—		96		7		0.09		—		0.08		0.01
Total commercial and industrial		116		135		488		341		0.07		0.09		0.11		0.08
Commercial real estate		105		120		163		445		0.56		0.72		0.31		0.90
Commercial lease financing		(1)		—		11		1		—		—		0.09		0.01
		220		255		662		787		0.12		0.16		0.13		0.17
U.S. small business commercial		132		134		412		401		2.22		2.41		2.37		2.49
Total commercial		$	352	$	389	$	1,074	$	1,188	0.19		0.23		0.20		0.24

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


33 Bank of America

Table 29 presents commercial reservable criticized utilized exposure by loan type. Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories as defined by regulatory authorities. Total commercial reservable criticized utilized exposure of $19.9 billion decreased

$4.8 billion, or 20 percent, during the nine months ended September 30, 2026 primarily driven by commercial real estate and U.S. commercial. At both September 30, 2026 and December 31, 2025, 87 percent of commercial reservable criticized utilized exposure was secured.



Table 29	Commercial Reservable Criticized Utilized Exposure (1, 2)




(Dollars in millions)		September 30, 2026				December 31, 2025
Commercial and industrial:
U.S. commercial		$	10,960	2.16	%	$	12,239	2.63	%
Non-U.S. commercial		2,517		1.43		2,803		1.74
Total commercial and industrial		13,477		1.97		15,042		2.40
Commercial real estate		5,058		6.61		8,356		11.91
Commercial lease financing		542		3.55		471		2.90
		19,077		2.46		23,869		3.35
U.S. small business commercial		829		3.46		879		3.91
Total commercial reservable criticized utilized exposure		$	19,906	2.49		$	24,748	3.37

(1)Total commercial reservable criticized utilized exposure includes loans and leases of $19.0 billion and $23.9 billion and commercial letters of credit of $865 million and $869 million at September 30, 2026 and December 31, 2025.

(2)Percentages are calculated as commercial reservable criticized utilized exposure divided by total commercial reservable utilized exposure for each exposure category.

Commercial and Industrial

Commercial and industrial loans include U.S. commercial and non-U.S. commercial portfolios.

U.S. Commercial

At September 30, 2026, 56 percent of the U.S. commercial loan portfolio, excluding small business, was managed in Global Banking, 25 percent in Global Markets, 18 percent in GWIM (loans that provide financing for asset purchases, business investments and other liquidity needs for high net worth clients) and the remainder primarily in Consumer Banking. U.S. commercial loans increased $36.2 billion, or eight percent, during the nine months ended September 30, 2026 primarily driven by Global Banking and GWIM. Reservable criticized utilized exposure decreased $1.3 billion, or 10 percent, driven by a broad range of industries.

Non-U.S. Commercial

At September 30, 2026, 52 percent of the non-U.S. commercial loan portfolio was managed in Global Banking and 47 percent in Global Markets. Non-U.S. commercial loans increased $15.3 billion, or 10 percent, during the nine months ended September 30, 2026 primarily driven by Global Banking. Reservable criticized utilized exposure decreased $286 million, or 10 percent. For more information on the non-U.S. commercial portfolio, see Non-U.S. Portfolio on page 38.

Commercial Real Estate

Commercial real estate primarily includes commercial loans secured by non-owner-occupied real estate and is dependent on the sale or lease of the real estate as the primary source of repayment. Outstanding loans increased $6.5 billion, or nine percent, during the nine months ended September 30, 2026 to

$75.2 billion, driven by growth across multiple property types. The commercial real estate portfolio is primarily managed in Global Banking and consists of loans made primarily to public and private developers, and commercial real estate firms. The portfolio remains diversified across property types and geographic regions. California represented the largest state concentration at 20 percent of commercial real estate at both September 30, 2026 and December 31, 2025. Industrial/Warehouse loans represented the largest property type concentration at 19 percent of commercial real estate at both September 30, 2026 and December 31, 2025. Office loans decreased $1.5 billion, or 12 percent, from December 31, 2025 and represented less than one percent of total loans for the Corporation.

Reservable criticized utilized exposure for commercial real estate decreased $3.3 billion, or 39 percent, during the nine months ended September 30, 2026. Reservable criticized exposure for the office property type was $2.6 billion at September 30, 2026, representing a decrease of $897 million, or 26 percent, from December 31, 2025. Approximately $1.8 billion of office loans are scheduled to mature by the end of 2026.

During the three and nine months ended September 30, 2026, net charge-offs decreased $15 million and $282 million to $105 million and $163 million compared to the same periods in 2025 driven by office loans. We use a number of proactive risk mitigation initiatives designed to reduce adversely rated exposure in the commercial real estate portfolio, including transfers of deteriorating exposures for management by independent special asset officers and the pursuit of loan restructurings or asset sales to achieve the best results for our customers and the Corporation.


						Bank of America 34

Table 30 presents outstanding commercial real estate loans by geographic region, based on the geographic location of the collateral, and by property type.



Table 30	Outstanding Commercial Real Estate Loans


(Dollars in millions)		September 30 2026		December 31 2025
By Geographic Region
Northeast		$	16,274	$	17,044
California		14,839		13,916
Southwest		11,240		8,412
Southeast		6,404		6,958
Florida		6,147		5,167
Midwest		3,897		2,862
Midsouth		3,757		2,962
Illinois		2,920		2,513
Northwest		1,607		1,451
Non-U.S.		6,253		6,021
Other		1,884		1,442
Total outstanding commercial real estate loans		$	75,222	$	68,748
By Property Type
Non-residential
Industrial / Warehouse		$	14,176	$	13,031
Multi-family rental		12,061		10,986
Office		10,908		12,447
Shopping centers / Retail		9,562		6,947
Hotel / Motels		4,895		4,629

Multi-use		2,366		2,509

Other		19,745		17,295
Total non-residential		73,713		67,844
Residential		1,509		904
Total outstanding commercial real estate loans		$	75,222	$	68,748

U.S. Small Business Commercial

The U.S. small business commercial loan portfolio is comprised of small business card loans and small business loans primarily managed in Consumer Banking. Credit card-related products were 50 percent and 51 percent of the U.S. small business commercial portfolio at September 30, 2026 and December 31, 2025, and represented 97 percent and 96 percent of net charge-offs for the three and nine months ended September 30, 2026. Accruing loans that were past due 90 days or more decreased $29 million during the nine months ended September 30, 2026.

Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity

Table 31 presents the nonperforming commercial loans, leases and foreclosed properties activity during the three and nine months ended September 30, 2026 and 2025. Nonperforming loans do not include loans accounted for under the fair value option. During the nine months ended September 30, 2026, nonperforming commercial loans and leases decreased $294 million to $2.9 billion. At September 30, 2026, 92 percent of commercial nonperforming loans, leases and foreclosed properties were secured, and 47 percent were contractually current. Commercial nonperforming loans were carried at 79 percent of their unpaid principal balance, as the carrying value of these loans has been reduced to the estimated collateral value less costs to sell.


35 Bank of America



Table 31	Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2)

		Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions)		2026			2025			2026		2025
Nonperforming loans and leases, beginning of period		$	3,161		$	3,417		$	3,228	$	3,328
Additions		432			550			1,777		2,299


Reductions:
Paydowns		(297)			(834)			(780)		(1,593)
Sales		(57)			(19)			(408)		(126)
Returns to performing status (3)		(79)			(12)			(152)		(240)
Charge-offs		(226)			(286)			(717)		(852)
Transfers to foreclosed properties		—			—			(14)		—

Total net (reductions) to nonperforming loans and leases		(227)			(601)			(294)		(512)
Total nonperforming loans and leases, September 30		2,934			2,816			2,934		2,816






Foreclosed properties, September 30		19			26			19		26
Nonperforming commercial loans, leases and foreclosed properties, September 30		$	2,953		$	2,842		$	2,953	$	2,842
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4)		0.39		%	0.41		%
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (4)		0.39			0.42

(1)Balances do not include nonperforming loans held-for-sale of $334 million and $521 million at September 30, 2026 and 2025.

(2)Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.

(3)Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, when the loan otherwise becomes well-secured and is in the process of collection, or when a modified loan demonstrates a sustained period of payment performance.

(4)Outstanding commercial loans exclude loans accounted for under the fair value option.

Industry Concentrations

Table 32 presents commercial committed and utilized credit exposure by industry. For information on net notional credit protection purchased to hedge funded and unfunded exposures for which we elected the fair value option, as well as certain other credit exposures, see Commercial Portfolio Credit Risk Management – Risk Mitigation.

Commercial credit exposure is diversified across a broad range of industries. Total commercial committed exposure increased $99.4 billion during the nine months ended September 30, 2026 to $1.5 trillion. The increase in commercial committed exposure was primarily concentrated in Asset managers and funds, Capital goods, Real estate and Individuals and trusts.

For information on industry limits, see Commercial Portfolio Credit Risk Management – Risk Mitigation in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Asset managers and funds, our largest industry concentration with committed exposure of $257.4 billion, increased $23.1 billion, or 10 percent, during the nine months ended September 30, 2026, which was primarily driven by investment-grade exposures.

Finance companies, our second largest industry concentration with committed exposure of $135.1 billion, increased $5.5 billion, or four percent, during the nine months ended September 30, 2026, which was primarily driven by Consumer finance.

Capital goods, our third largest industry concentration with committed exposure of $118.8 billion, increased $10.0 billion, or nine percent, during the nine months ended September 30, 2026. The increase in committed exposure was driven by increases in Industrial conglomerates, Machinery, and Trading companies and distributors, partially offset by a decrease in Construction and engineering.

Geopolitical tensions, particularly related to the ongoing conflicts in the Middle East, and higher costs associated with persistent inflationary pressures have led to increased uncertainty in the U.S. and global economies and have adversely impacted, and may continue to adversely impact, a number of industries. We continue to monitor these risks.


						Bank of America 36



Table 32	Commercial Credit Exposure by Industry (1)

		Commercial Utilized				Total Commercial Committed (2)

(Dollars in millions)		September 30 2026		December 31 2025		September 30 2026		December 31 2025
Asset managers and funds		$	168,022	$	149,178	$	257,435	$	234,323
Finance companies		100,138		94,444		135,102		129,652
Capital goods		56,350		54,293		118,771		108,722
Real estate (3)		74,731		69,939		106,632		99,454
Healthcare equipment and services		39,308		35,417		72,654		71,944
Individuals and trusts		52,513		43,556		66,819		59,713
Materials		30,078		29,094		62,261		61,872
Consumer services		30,645		29,757		57,498		55,291
Retailing		28,014		25,648		57,082		55,313
Food, beverage and tobacco		25,614		25,561		55,497		51,016
Government and public education		33,645		33,874		52,585		50,898
Commercial services and supplies		27,566		24,680		50,269		46,058
Utilities		20,721		18,670		48,481		43,554
Energy		17,108		13,199		42,453		39,122
Transportation		25,966		24,772		42,173		37,707
Media		15,029		11,324		37,900		43,691
Technology hardware and equipment		16,042		11,488		36,125		30,519
Software and services		16,470		15,317		34,170		32,070
Global commercial banks		28,173		22,377		31,804		25,327
Insurance		13,332		11,443		26,667		23,762
Pharmaceuticals and biotechnology		9,211		7,166		26,528		23,325
Vehicle dealers		19,888		19,222		25,974		24,669
Consumer durables and apparel		9,812		9,612		21,861		23,299
Automobiles and components		7,551		8,129		17,514		17,284
Telecommunication services		8,687		6,525		17,184		15,686
Food and staples retailing		6,212		5,313		11,772		10,836
Financial markets infrastructure (clearinghouses)		6,721		6,101		9,767		8,336
Religious and social organizations		2,190		2,290		4,155		4,245

Total commercial credit exposure by industry		$	889,737	$	808,389	$	1,527,133	$	1,427,688

(1)Includes U.S. small business commercial exposure.

(2)Includes the notional amount of unfunded legally binding lending commitments, net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.5 billion and $10.6 billion at September 30, 2026 and December 31, 2025.

(3)Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the primary business activity of the borrowers or counterparties using operating cash flows and primary source of repayment as key factors.

Risk Mitigation

We purchase credit protection to cover the funded portion as well as the unfunded portion of certain credit exposures. To lower the cost of obtaining our desired credit protection levels, we may add credit exposure within an industry, borrower or counterparty group by selling protection.

At September 30, 2026 and December 31, 2025, net notional credit default protection purchased in our credit derivatives portfolio to hedge our funded and unfunded exposures for which we elected the fair value option, as well as certain other credit exposures, was $12.0 billion and $14.5 billion. We recorded net losses of $6 million and $40 million for the three and nine months ended September 30, 2026 compared to net losses of $39 million and $95 million for the three and nine months ended September 30, 2025. The net losses on these instruments were largely offset by net gains on

the related exposures. The Value-at-Risk (VaR) results for these exposures are included in the fair value option portfolio information in Table 38. For more information, see Trading Risk Management on page 41.

Tables 33 and 34 present the maturity profiles and the credit exposure debt ratings of the net credit default protection portfolio at September 30, 2026 and December 31, 2025.



Table 33	Net Credit Default Protection by Maturity


		September 30 2026		December 31 2025
Less than or equal to one year		28	%	37	%
Greater than one year and less than or equal to five years		69		61
Greater than five years		3		2
Total net credit default protection		100	%	100	%


37 Bank of America



Table 34	Net Credit Default Protection by Credit Exposure Debt Rating

		Net Notional (1)		Percent of Total		Net Notional (1)		Percent of Total


(Dollars in millions)		September 30, 2026				December 31, 2025
Ratings (2, 3)
AAA		$	(150)	1.3	%	$	(145)	1.0	%
AA		(2,126)		17.7		(1,968)		13.5
A		(4,659)		38.9		(6,348)		43.7
BBB		(3,459)		28.8		(4,639)		31.9
BB		(690)		5.8		(697)		4.8
B		(290)		2.4		(441)		3.0
CCC and below		(29)		0.2		(17)		0.1
NR (4)		(589)		4.9		(270)		2.0
Total net credit default protection		$	(11,992)	100.0	%	$	(14,525)	100.0	%

(1)Represents net credit default protection purchased.

(2)Ratings are refreshed on a quarterly basis.

(3)Ratings of BBB- or higher are considered to meet the definition of investment grade.

(4)NR is comprised of index positions held and any names that have not been rated.

For more information on credit derivatives and counterparty credit risk valuation adjustments, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

Non-U.S. Portfolio

Our non-U.S. credit and trading portfolios are subject to country risk. We define country risk as the risk of loss from unfavorable economic and political conditions, currency fluctuations, social instability and changes in government policies. A risk management framework is in place to measure, monitor and manage non-U.S. risk and exposures. In addition to the direct risk of doing business in a country, we also are exposed to indirect country risks (e.g., related to the collateral received on secured financing transactions or related to client clearing activities). These indirect exposures are managed in the normal course of business through credit, market and operational risk governance rather than through country risk governance. For more information on our non-U.S. credit and trading portfolios, see Non-U.S. Portfolio in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K. For more information on risks related to our non-U.S. portfolio, see the Geopolitical section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K.

Table 35 presents our 20 largest non-U.S. country exposures at September 30, 2026. These exposures accounted for 91 percent of our total non-U.S. exposure at September 30, 2026 and 88 percent at December 31, 2025. Net country exposure for these 20 countries increased $25.7 billion from December 31, 2025 primarily driven by increases in the United Kingdom, Australia, India and France.



Table 35	Top 20 Non-U.S. Countries Exposure

(Dollars in millions)		Funded Loans and Loan Equivalents		Unfunded Loan Commitments		Net Counterparty Exposure		Securities/ Other Investments		Country Exposure at September 30 2026		Hedges and Credit Default Protection		Net Country Exposure at September 30 2026		Increase (Decrease) from December 31 2025
United Kingdom		$	37,834	$	20,101	$	10,121	$	8,147	$	76,203	$	(2,826)	$	73,377	$	8,762
Germany		22,663		13,660		2,262		4,003		42,588		(1,697)		40,891		1,783
Australia		28,082		6,549		841		1,903		37,375		(384)		36,991		4,119
Canada		13,886		11,931		2,734		4,346		32,897		(450)		32,447		684
France		14,428		11,556		1,621		5,938		33,543		(2,468)		31,075		3,513
Brazil		13,000		1,335		1,289		5,587		21,211		(108)		21,103		3,109
Japan		9,121		1,658		2,889		5,234		18,902		(998)		17,904		(1,075)
India		10,602		210		1,059		3,333		15,204		(83)		15,121		3,745
Switzerland		5,437		6,379		1,046		207		13,069		(420)		12,649		(30)
Singapore		5,000		801		612		5,360		11,773		(128)		11,645		272
China		4,624		488		1,337		4,654		11,103		(330)		10,773		(160)
Italy		6,457		3,452		321		888		11,118		(789)		10,329		1,471
South Korea		5,627		1,270		1,049		2,601		10,547		(624)		9,923		390
Ireland		7,525		1,396		512		331		9,764		(118)		9,646		(974)
Netherlands		3,525		3,155		736		2,638		10,054		(629)		9,425		(3,234)
Mexico		5,084		2,204		596		1,846		9,730		(389)		9,341		(418)
Spain		3,006		2,500		759		2,388		8,653		(540)		8,113		1,349
Hong Kong		3,134		528		851		1,262		5,775		(107)		5,668		(12)
Belgium		1,597		1,707		762		641		4,707		(178)		4,529		1,168
Taiwan		3,233		—		716		428		4,377		(43)		4,334		1,269
Total top 20 non-U.S. countries exposure		$	203,865	$	90,880	$	32,113	$	61,735	$	388,593	$	(13,309)	$	375,284	$	25,731

Our largest non-U.S. country exposure at September 30, 2026 was the United Kingdom with net exposure of $73.4 billion, which increased $8.8 billion from December 31, 2025 primarily due to increased net counterparty exposure. Our second largest non-U.S. country exposure was Germany with net exposure of $40.9 billion at September 30, 2026, which

increased $1.8 billion from December 31, 2025 primarily due to increased corporate exposures. We continue to closely monitor the ongoing conflicts in the Middle East and potential impacts on our portfolio and borrowers, including through elevated energy prices, increased market volatility, supply chain disruptions and related macroeconomic effects.


						Bank of America 38

Allowance for Credit Losses

The allowance for credit losses decreased $196 million from December 31, 2025 to $14.2 billion at September 30, 2026, which included a $200 million reserve decrease related to the consumer portfolio and $4 million reserve increase related to the commercial portfolio. Table 36 presents an allocation of the allowance for credit losses by product type at September 30, 2026 and December 31, 2025.



Table 36	Allocation of the Allowance for Credit Losses by Product Type


		Amount		Percent of Total		Percent of Loans and Leases Outstanding (1)			Amount		Percent of Total		Percent of Loans and Leases Outstanding (1)
(Dollars in millions)		September 30, 2026						December 31, 2025
Allowance for loan and lease losses
Residential mortgage		$	313	2.41	%	0.13	%		$	294	2.23	%	0.12	%
Home equity		128		0.98		0.47			122		0.92		0.46
Credit card		7,012		53.90		6.53			7,197		54.51		6.79

Direct/Indirect consumer		663		5.10		0.56			713		5.40		0.63
Other consumer		54		0.42		n/m			54		0.41		n/m
Total consumer		8,170		62.81		1.66			8,380		63.47		1.73
U.S. commercial (2)		3,100		23.84		0.62			2,967		22.47		0.65
Non-U.S. commercial		827		6.36		0.49			801		6.07		0.52
Commercial real estate		854		6.57		1.14			1,007		7.63		1.46
Commercial lease financing		54		0.42		0.36			48		0.36		0.29
Total commercial		4,835		37.19		0.64			4,823		36.53		0.69
Allowance for loan and lease losses		13,005		100.00	%	1.04			13,203		100.00	%	1.12


Reserve for unfunded lending commitments		1,179							1,177
Allowance for credit losses		$	14,184						$	14,380

(1)Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option.

(2)Includes allowance for loan and lease losses for U.S. small business commercial loans of $1.4 billion at both September 30, 2026 and December 31, 2025.

n/m = not meaningful

Table 37 presents a rollforward of the allowance for credit losses, including certain loan and allowance ratios for the three and nine months ended September 30, 2026 and 2025. For more information on the Corporation’s credit loss accounting policies and activity related to the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.


39 Bank of America



Table 37	Allowance for Credit Losses

		Three Months Ended September 30						Nine Months Ended September 30
(Dollars in millions)		2026			2025			2026			2025


Allowance for loan and lease losses, beginning of period		$	13,114		$	13,291		$	13,203		$	13,240
Loans and leases charged off
Residential mortgage		(7)			(6)			(25)			(18)
Home equity		(9)			(3)			(23)			(11)
Credit card		(1,097)			(1,083)			(3,391)			(3,409)
Direct/Indirect consumer		(90)			(88)			(283)			(274)
Other consumer		(87)			(59)			(230)			(195)
Total consumer charge-offs		(1,290)			(1,239)			(3,952)			(3,907)
U.S. commercial (1)		(233)			(326)			(878)			(868)
Non-U.S. commercial		(37)			—			(98)			(8)
Commercial real estate		(107)			(135)			(201)			(471)
Commercial lease financing		—			(1)			(15)			(4)
Total commercial charge-offs		(377)			(462)			(1,192)			(1,351)
Total loans and leases charged off		(1,667)			(1,701)			(5,144)			(5,258)
Recoveries of loans and leases previously charged off
Residential mortgage		7			7			19			17
Home equity		14			14			41			44
Credit card		238			203			689			574
Direct/Indirect consumer		29			33			92			102
Other consumer		5			4			15			14
Total consumer recoveries		293			261			856			751
U.S. commercial (2)		21			57			74			133
Non-U.S. commercial		1			—			2			1
Commercial real estate		2			15			38			26
Commercial lease financing		1			1			4			3
Total commercial recoveries		25			73			118			163
Total recoveries of loans and leases previously charged off		318			334			974			914
Net charge-offs		(1,349)			(1,367)			(4,170)			(4,344)

Provision for loan and lease losses		1,240			1,328			3,970			4,354
Other		—			—			2			2
Allowance for loan and lease losses, September 30		13,005			13,252			13,005			13,252




Reserve for unfunded lending commitments, beginning of period		1,150			1,143			1,177			1,096
Provision for unfunded lending commitments		29			(33)			2			13
Other		—			(1)			—			—
Reserve for unfunded lending commitments, September 30		1,179			1,109			1,179			1,109
Allowance for credit losses, September 30		$	14,184		$	14,361		$	14,184		$	14,361

Loan and allowance ratios (3):
Loans and leases outstanding at September 30		$	1,247,919		$	1,159,206		$	1,247,919		$	1,159,206
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at September 30		1.04		%	1.14		%	1.04		%	1.14		%
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at September 30		1.66			1.78			1.66			1.78
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at September 30		0.64			0.70			0.64			0.70
Average loans and leases outstanding		$	1,222,860		$	1,146,430		$	1,207,359		$	1,119,173
Annualized net charge-offs as a percentage of average loans and leases outstanding		0.44		%	0.47		%	0.46		%	0.52		%

Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at September 30		235			248			235			248
Ratio of the allowance for loan and lease losses at September 30 to annualized net charge-offs		2.43			2.44			2.33			2.28

Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at September 30 (4)		$	8,317		$	8,549		$	8,317		$	8,549
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 September 30 (4)		85		%	88		%	85		%	88		%

(1)Includes U.S. small business commercial charge-offs of $145 million and $451 million for the three and nine months ended September 30, 2026 compared to $147 million and $443 million for the same periods in 2025.

(2)Includes U.S. small business commercial recoveries of $13 million and $39 million for the three and nine months ended September 30, 2026 compared to $13 million and $42 million for the same periods in 2025.

(3)Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option.

(4)Primarily includes amounts related to credit card and unsecured consumer lending portfolios in Consumer Banking.


						Bank of America 40

Market Risk Management

For more information on our market risk management process, see Market Risk Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K. For more information on market risks, see the Market section within Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K.

Market risk is the risk that changes in market conditions may adversely impact the value of assets or liabilities, or otherwise negatively impact earnings. This risk is inherent in the financial instruments associated with our operations, primarily within our Global Markets segment. We are also exposed to these risks in other areas of the Corporation (e.g., our ALM activities). In the event of market stress, these risks could have a material impact on our results.

Trading Risk Management

To evaluate risks in our trading activities, we focus on the actual and potential volatility of revenues generated by individual positions as well as portfolios of positions. VaR is a common statistic used to measure market risk. Our primary VaR statistic is equivalent to a 99 percent confidence level, which means that for a VaR with a one-day holding period, there should not be

losses in excess of VaR, on average, 99 out of 100 trading days.

Table 38 presents the total market-based portfolio VaR, which is the combination of the total trading positions portfolio and the fair value option portfolio. The VaR amounts for all periods presented in Table 38 and Table 39 include the financial instruments used in the Corporation’s market risk management of its trading portfolios. For more information on the market risk VaR for trading activities, see Trading Risk Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

The total market-based portfolio VaR results in Table 38 include market risk to which we are exposed from all business segments’ trading activities, which exclude credit valuation adjustment (CVA), DVA and the related hedges of these items. The majority of this portfolio is within the Global Markets segment.

Table 38 presents period-end, average, high and low daily trading VaR for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, as well as average daily trading VaR for the nine months ended September 30, 2026 and 2025 using a 99 percent confidence level.



Table 38	Market Risk VaR for Trading Activities

		Three Months Ended																							Nine Months Ended September 30

		September 30, 2026								June 30, 2026								September 30, 2025
(Dollars in millions)		Period End		Average		High (1)		Low (1)		Period End		Average		High (1)		Low (1)		Period End		Average		High (1)		Low (1)			2026 Average				2025 Average
Foreign exchange		$	14	$	13	$	22	$	8	$	13	$	16	$	32	$	8	$	17	$	18	$	33	$		10			$	14			$	18
Interest rate		48		40		57		27		36		35		50		27		47		52		67		38			35				56
Credit		40		37		48		29		49		39		50		31		36		38		46		32			38				48
Mortgage		24		23		27		20		20		21		26		18		29		28		30		26			24				33
Equity		24		29		36		23		36		33		50		24		25		22		29		15			31				22
Commodities		10		12		17		8		13		13		17		8		9		8		9		7			13				9
Portfolio diversification		(99)		(103)		n/a		n/a		(122)		(108)		n/a		n/a		(106)		(100)		n/a		n/a			(106)				(106)
Total trading positions portfolio VaR		61		51		64		40		45		49		66		38		57		66		82		53			49				80


Fair value option loans		34		26		35		19		18		22		33		16		14		15		17		12			22				21
Fair value option hedges		20		16		20		12		14		14		24		10		7		8		13		6			13				14
Fair value option portfolio diversification		(37)		(28)		n/a		n/a		(22)		(25)		n/a		n/a		(11)		(13)		n/a		n/a			(23)				(22)
Total fair value option portfolio		17		14		19		10		10		11		13		9		10		10		11		9			12				13
Portfolio diversification		(11)		(9)		n/a		n/a		(7)		(8)		n/a		n/a		(6)		(5)		n/a		n/a			(8)				(7)
Total market-based portfolio		$	67	$	56	72		43		$	48	$	52	69		43		$	61	$	71	84		57			$	53			$	86

(1)The high and low for each portfolio may have occurred on different trading days than the high and low for the components. Therefore, the amount of portfolio diversification, which is the difference between the total portfolio and the sum of the individual components, is not relevant.

n/a = not applicable


41 Bank of America

The following graph presents the trading positions portfolio VaR for the previous five quarters, corresponding to the data in Table 38.

Additional VaR statistics produced within our single VaR model are provided in Table 39 at the same level of detail as in Table 38. Evaluating VaR with additional statistics allows for an increased understanding of the risks in the portfolio, as the historical market data used in the VaR calculation does not necessarily follow a predefined statistical distribution. Table 39 presents average trading VaR statistics at 99 percent and 95 percent confidence levels for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025.



Table 39	Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics


		Three Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025
(Dollars in millions)		99 percent		95 percent		99 percent		95 percent		99 percent		95 percent
Foreign exchange		$	13	$	6	$	16	$	8	$	18	$	9
Interest rate		40		22		35		18		52		26
Credit		37		15		39		16		38		16
Mortgage		23		11		21		12		28		16
Equity		29		14		33		15		22		10
Commodities		12		7		13		5		8		5
Portfolio diversification		(103)		(50)		(108)		(51)		(100)		(53)
Total trading positions portfolio VaR		51		25		49		23		66		29


Fair value option loans		26		14		22		13		15		9
Fair value option hedges		16		10		14		9		8		5
Fair value option portfolio diversification		(28)		(17)		(25)		(16)		(13)		(8)
Total fair value option portfolio		14		7		11		6		10		6
Portfolio diversification		(9)		(4)		(8)		(5)		(5)		(4)
Total market-based portfolio		$	56	$	28	$	52	$	24	$	71	$	31

Backtesting

The accuracy of the VaR methodology is evaluated by backtesting, which compares the daily VaR results, utilizing a one-day holding period, against a comparable subset of trading revenue. For more information on our backtesting process, see Trading Risk Management – Backtesting in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

During the three months ended September 30, 2026, there were four days where this subset of trading revenue had losses that exceeded our total covered portfolio VaR, utilizing a one-day holding period. During the nine months ended September 30, 2026, there were seven days with losses that exceeded our total covered portfolio VaR.


						Bank of America 42

Total Trading-related Revenue

Total trading-related revenue, excluding brokerage fees, and CVA, DVA and funding valuation adjustment gains (losses), represents the total amount earned from trading positions, including net interest income associated with Global Markets trading activities, which are taken in a diverse range of financial instruments and markets. For more information, see Trading Risk Management – Total Trading-related Revenue in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

The following histogram is a graphic depiction of trading volatility and illustrates the daily level of trading-related revenue for the three months ended September 30, 2026 compared to the three months ended June 30, 2026 and March 31, 2026. During the three months ended September 30, 2026, positive trading-related revenue was recorded for 98 percent of the trading days, of which 94 percent were daily trading gains of over $25 million. This compares to the three months ended June 30, 2026, where positive trading-related revenue was recorded for 100 percent of the trading days, of which 98 percent were daily trading gains of over $25 million. During the three months ended March 31, 2026, positive trading-related revenue was recorded for 100 percent of the trading days, of which 97 percent were daily trading gains of over $25 million.

3Q26 Trading Related Revenue Histogram.jpg

Trading Portfolio Stress Testing

Because the very nature of a VaR model suggests results can exceed our estimates and it is dependent on a limited historical window, we also stress test our portfolio using scenario analysis. This analysis estimates the change in the value of our trading portfolio that may result from abnormal market movements. For more information, see Trading Risk Management – Trading Portfolio Stress Testing in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Interest Rate Risk Management for the Banking Book

The following discussion presents net interest income for banking book activities. For more information, see Interest Rate Risk Management for the Banking Book in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Table 40 presents the spot and 12-month forward rates used in developing the forward curve used in our baseline forecasts at September 30, 2026 and December 31, 2025.



Table 40	Forward Rates


		Federal Funds		SOFR		10-Year SOFR
		September 30, 2026
Spot rates		4.00	%	3.90	%	4.90	%
12-month forward rates		5.00		4.83		4.98

		December 31, 2025

Spot rates		3.75	%	3.87	%	3.80	%
12-month forward rates		3.25		3.11		3.89

Table 41 shows the potential pretax impact to forecasted net interest income over the next 12 months from September 30, 2026 and December 31, 2025 resulting from instantaneous parallel and non-parallel shocks to the market-based forward curve. Periodically, we evaluate the scenarios presented so that they are meaningful in the context of the


43 Bank of America

current rate environment. Amounts presented reflect dynamic deposit sensitivities, which incorporate behavioral customer deposit balance changes that could occur under various

scenarios. For more information, see Interest Rate Risk Management for the Banking Book in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.



Table 41	Estimated Banking Book Net Interest Income Sensitivity to Curve Changes
		Short Rate (bps)	Long Rate (bps)


(Dollars in billions)				September 30 2026		December 31 2025

Parallel Shifts
+100 bps instantaneous shift		+100	+100	$	1.4	$	0.7

-100 bps instantaneous shift		-100	-100	(1.9)		(2.0)
+200 bps instantaneous shift		+200	+200	2.5		0.8
-200 bps instantaneous shift		-200	-200	(5.2)		(4.9)
Flatteners
Short-end instantaneous change		+100	—	1.3		0.5

Long-end instantaneous change		—	-100	(0.2)		(0.3)
Steepeners

Short-end instantaneous change		-100	—	(1.7)		(1.7)
Long-end instantaneous change		—	+100	0.1		0.3

We continue to be asset sensitive to a parallel move in interest rates, with the majority of that impact coming from the short end of the yield curve. Additionally, higher interest rates negatively impact the fair value of our debt securities classified as available for sale and adversely affect accumulated OCI, and thus capital levels under the Basel 3 capital rules. Under instantaneous upward parallel shifts, the near-term adverse impact to Basel 3 capital would be reduced over time by offsetting positive impacts to net interest income generated from banking book activities. For more information on Basel 3, see Capital Management – Regulatory Capital on page 19.

As part of our ALM activities, we use securities, certain residential mortgages, and interest rate and foreign exchange derivatives in managing interest rate sensitivity. The sensitivity analysis in Table 41 assumes that we take no action in response to these rate shocks and does not assume any change in other macroeconomic variables normally correlated with changes in interest rates. In higher rate scenarios, the analysis assumes that a portion of low-cost or noninterest-bearing deposits is replaced with higher yielding deposits or market-based funding. Conversely, in lower rate scenarios, the analysis assumes that a portion of higher yielding deposits or market-based funding is replaced with low-cost or noninterest-bearing deposits.

For larger interest rate shift scenarios, the interest rate sensitivity may behave in a non-linear manner as there are numerous estimates and assumptions, which require a high degree of judgment and are often interrelated, that could impact the outcome. Pertaining to the mortgage-backed securities and residential mortgage portfolio, if long-end interest rates were to significantly decrease over the next twelve months, for example over 200 bps, there would generally be an increase in customer prepayment behaviors with an incremental reduction to net interest income, noting that the extent of changes in customer prepayment activity can be impacted by multiple factors and is not necessarily limited to long-end interest rates. Conversely, if long-end interest rates were to significantly increase over the next twelve months, for example, over 200 bps, customer prepayments would likely modestly decrease and result in an incremental increase to net interest income. In addition, deposit pricing is rate sensitive in nature. This sensitivity is assumed to have non-linear impacts to larger short-end rate movements. In decreasing interest rate scenarios, and particularly where interest rates have decreased to small amounts, the ability to further reduce rates paid is reduced as customer rates near zero. In higher short-end rate scenarios, deposit pricing will

likely increase at a faster rate, leading to incremental interest expense and reducing asset sensitivity. While the impact related to the above assumptions used in the asset sensitivity analysis can provide directional analysis on how net interest income will be impacted in changing environments, the ultimate impact is dependent upon the interrelationship of the assumptions and factors, which vary in different macroeconomic scenarios.

Economic Value of Equity

In addition to interest rate sensitivity described above, the Corporation’s management of its interest rate exposures in the banking book also considers a long-term view of interest rate sensitivity through the measurement of Economic Value of Equity (EVE). EVE captures changes in the net present value of banking book assets and liabilities under various interest rate scenarios and its impact to Tier 1 capital. Similar to net interest income, the Corporation establishes limits for EVE. EVE is largely driven by the Corporation’s longer duration fixed-rate products, such as investment securities, residential mortgages and deposits. For assets or liabilities that have no stated maturity, such as deposits, the Corporation estimates the duration for measurement purposes.

Interest Rate and Foreign Exchange Derivative Contracts

We use interest rate and foreign exchange derivative contracts in our ALM activities to manage our interest rate and foreign exchange risks. Specifically, we use those derivatives to manage both the variability in cash flows and changes in fair value of various assets and liabilities arising from those risks. Our interest rate derivative contracts are generally non-leveraged swaps tied to various benchmark interest rates and foreign exchange basis swaps, options, futures and forwards, and our foreign exchange contracts include cross-currency interest rate swaps, foreign currency futures contracts, foreign currency forward contracts and options.

The derivatives used in our ALM activities can be split into two broad categories: designated accounting hedges and other risk management derivatives. Designated accounting hedges are primarily used to manage our exposure to interest rates as described in the Interest Rate Risk Management for the Banking Book section and are included in the sensitivities presented in Table 41. The Corporation also uses foreign currency derivatives in accounting hedges to manage substantially all of the foreign exchange risk of our foreign operations. By hedging the foreign


						Bank of America 44

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.

Changes in interest rates impact the value of interest rate lock commitments (IRLCs) and the related residential first mortgage loans held-for-sale (LHFS), as well as the value of the MSRs. Because the interest rate risks of these hedged items offset, we combine them into one overall hedged item with one combined economic hedge portfolio consisting of derivative contracts and securities. For more information on IRLCs and the related residential mortgage LHFS, see Mortgage Banking Risk Management in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K.

Critical Accounting Estimates

Our significant accounting principles are essential in understanding the MD&A. Many of our significant accounting principles require complex judgments to estimate the values of assets and liabilities. We have procedures and processes in place to facilitate making these judgments. For more information, see Critical Accounting Estimates in the MD&A of the Corporation’s 2025 Annual Report on Form 10-K and Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

Current Accounting Developments

Accounting Standard Issued but Not Yet Adopted

Accounting for Internal‑Use Software Costs

The Financial Accounting Standards Board issued updated guidance on the accounting for internal‑use software, providing targeted improvements to the capitalization of costs incurred in the internal development of software. The amendments update existing guidance by eliminating the consideration of software project development stages and enhancing the criteria for when capitalization begins, including establishing a “probable to complete” threshold. The Accounting Standards Update is effective for annual and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Corporation is currently evaluating the impact of and its approach to adopting this guidance; however, adoption is not expected to have a material impact on its Consolidated Financial Statements.


45 Bank of America

Non-GAAP Reconciliations

Table 42 provides reconciliations of certain non-GAAP financial measures to the most directly comparable GAAP financial measures.



Table 42	Average and Period-end Supplemental Financial Data and Reconciliations to GAAP Financial Measures (1)

												Nine Months Ended September 30


		2026 Quarters						2025 Quarters
(Dollars in millions)		Third		Second		First		Fourth		Third		2026		2025














































Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity
Common shareholders’ equity		$	275,885	$	275,988	$	276,753	$	277,881	$	275,149	$	276,205	$	273,274
Goodwill		(69,021)		(69,021)		(69,021)		(69,021)		(69,021)		(69,021)		(69,021)
Intangible assets (excluding MSRs)		(1,797)		(1,815)		(1,834)		(1,853)		(1,873)		(1,815)		(1,893)
Related deferred tax liabilities		815		820		825		827		839		820		845
Tangible common shareholders’ equity		$	205,882	$	205,972	$	206,723	$	207,834	$	205,094	$	206,189	$	203,205
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity




Common shareholders’ equity		$	271,753	$	276,098	$	275,672	$	277,251	$	276,445
Goodwill		(69,021)		(69,021)		(69,021)		(69,021)		(69,021)
Intangible assets (excluding MSRs)		(1,784)		(1,803)		(1,821)		(1,841)		(1,860)
Related deferred tax liabilities		812		816		821		825		828
Tangible common shareholders’ equity		$	201,760	$	206,090	$	205,651	$	207,214	$	206,392
Reconciliation of period-end assets to period-end tangible assets
Assets		$	3,427,704	$	3,499,191	$	3,496,186	$	3,411,738	$	3,403,149
Goodwill		(69,021)		(69,021)		(69,021)		(69,021)		(69,021)
Intangible assets (excluding MSRs)		(1,784)		(1,803)		(1,821)		(1,841)		(1,860)
Related deferred tax liabilities		812		816		821		825		828
Tangible assets		$	3,357,711	$	3,429,183	$	3,426,165	$	3,341,701	$	3,333,096

(1)For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 6.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

See Market Risk Management on page 41 in the MD&A and the sections referenced therein for Quantitative and Qualitative Disclosures about Market Risk.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of the end of the period covered by this report, the Corporation’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness and design of the Corporation’s disclosure controls and procedures (as that term is defined in Rule 13a-15(e) of the Exchange Act). Based upon that evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective, as of the end of the period covered by this report.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the three months ended September 30, 2026, that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.


						Bank of America 46

Part I. Financial Information

Item 1. Financial Statements

Bank of America Corporation and Subsidiaries



Consolidated Statement of Income

	Three Months Ended September 30				Nine Months Ended September 30
(In millions, except per share information)	2026		2025		2026		2025
Net interest income
Interest income	$	34,257	$	35,366	$	101,448	$	104,305
Interest expense	17,808		20,133		53,257		59,959
Net interest income	16,449		15,233		48,191		44,346

Noninterest income
Fees and commissions	10,797		10,337		32,426		29,221
Market making and similar activities	2,360		3,203		10,174		9,940
Other income (loss)	352		267		997		1,223
Total noninterest income	13,509		13,807		43,597		40,384
Total revenue, net of interest expense	29,958		29,040		91,788		84,730

Provision for credit losses	1,269		1,295		3,972		4,367

Noninterest expense
Compensation and benefits	10,969		10,523		33,290		31,744
Information processing and communications	2,008		1,827		5,950		5,540
Occupancy and equipment	1,967		1,872		5,781		5,564
Product delivery and transaction related	1,170		1,025		3,623		2,913
Professional fees	606		606		1,762		1,898
Marketing	669		572		1,938		1,641
Other general operating	2,333		912		4,536		2,990


Total noninterest expense	19,722		17,337		56,880		52,290
Income before income taxes	8,967		10,408		30,936		28,073
Income tax expense	2,034		2,076		6,345		5,211
Net income	$	6,933	$	8,332	$	24,591	$	22,862
Preferred stock dividends and other	392		429		1,147		1,126
Net income applicable to common shareholders	$	6,541	$	7,903	$	23,444	$	21,736

Per common share information
Earnings	$	0.93	$	1.06	$	3.28	$	2.87
Diluted earnings	0.91		1.04		3.23		2.84

Average common shares issued and outstanding	7,052.5		7,466.0		7,152.7		7,574.5
Average diluted common shares issued and outstanding	7,222.2		7,627.1		7,312.5		7,724.7



Consolidated Statement of Comprehensive Income

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025
Net income	$	6,933	$	8,332	$	24,591	$	22,862
Other comprehensive income (loss), net-of-tax:
Net change in debt securities	(1,871)		438		(2,348)		489
Net change in debit valuation adjustments	90		(305)		349		(161)
Net change in derivatives	(1,496)		636		(2,874)		3,145
Employee benefit plan adjustments	39		(16)		110		37
Net change in foreign currency translation adjustments	1		6		19		30
Other comprehensive income (loss)	(3,237)		759		(4,744)		3,540
Comprehensive income	$	3,696	$	9,091	$	19,847	$	26,402

See accompanying Notes to Consolidated Financial Statements.


47 Bank of America

Bank of America Corporation and Subsidiaries



Consolidated Balance Sheet

(Dollars in millions)		September 30 2026		December 31 2025

Assets
Cash and due from banks		$	26,907	$	28,595
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		222,736		203,250
Cash and cash equivalents		249,643		231,845
Time deposits placed and other short-term investments		8,638		7,474
Federal funds sold and securities borrowed or purchased under agreements to resell (includes $217,522 and $185,491 measured at fair value)		347,125		316,578
Trading account assets (includes $161,758 and $185,869 pledged as collateral)		332,475		366,954
Derivative assets		53,148		40,881
Debt securities:
Carried at fair value		345,636		402,975
Held-to-maturity, at amortized cost (fair value $392,513 and $442,430)		496,398		522,660
Total debt securities		842,034		925,635
Loans and leases (includes $3,341 and $3,498 measured at fair value)		1,251,260		1,185,700
Allowance for loan and lease losses		(13,005)		(13,203)
Loans and leases, net of allowance		1,238,255		1,172,497
Premises and equipment, net		13,906		12,516
Goodwill		69,021		69,021
Loans held-for-sale (includes $3,914 and $2,271 measured at fair value)		8,102		5,165
Customer and other receivables		91,685		98,186
Other assets (includes $6,469 and $9,058 measured at fair value)		173,672		164,986
Total assets		$	3,427,704	$	3,411,738

Liabilities
Deposits in U.S. offices:
Noninterest-bearing		$	534,129	$	517,834
Interest-bearing (includes $2,144 and $1,223 measured at fair value)		1,357,525		1,361,177
Deposits in non-U.S. offices:
Noninterest-bearing		14,545		14,216
Interest-bearing		132,559		125,502
Total deposits		2,038,758		2,018,729
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $196,662 and $223,067 measured at fair value)		315,418		344,716
Trading account liabilities		109,805		105,996
Derivative liabilities		49,246		42,076
Short-term borrowings (includes $14,044 and $8,051 measured at fair value)		62,230		48,088
Accrued expenses and other liabilities (includes $5,581 and $8,996 measured at fair value and $1,179 and $1,177 of reserve for unfunded lending commitments)		236,811		231,074
Long-term debt (includes $85,033 and $72,591 measured at fair value)		318,687		317,816
Total liabilities		3,130,955		3,108,495
Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies)
Shareholders’ equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,950,961 and 3,991,164 shares		24,996		25,992
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 6,922,695,323 and 7,212,464,345 shares		8,210		26,084
Retained earnings		278,813		261,693
Accumulated other comprehensive income (loss)		(15,270)		(10,526)

Total shareholders’ equity		296,749		303,243
Total liabilities and shareholders’ equity		$	3,427,704	$	3,411,738

	Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
	Trading account assets	$	7,600	$	7,139


	Loans and leases	17,330		17,875
	Allowance for loan and lease losses	(849)		(871)
	Loans and leases, net of allowance	16,481		17,004

	All other assets	1,079		709
	Total assets of consolidated variable interest entities	$	25,160	$	24,852
	Liabilities of consolidated variable interest entities included in total liabilities above
	Short-term borrowings (includes $0 and $0 of non-recourse short-term borrowings)	$	7,272	$	5,779
	Long-term debt (includes $7,343 and $6,847 of non-recourse debt)	7,343		6,847
	All other liabilities (includes $19 and $18 of non-recourse liabilities)	19		18
	Total liabilities of consolidated variable interest entities	$	14,634	$	12,644

See accompanying Notes to Consolidated Financial Statements.


						Bank of America 48

Bank of America Corporation and Subsidiaries



Consolidated Statement of Changes in Shareholders’ Equity

	Preferred Stock		Common Stock and Additional Paid-in Capital			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
(In millions)			Shares	Amount
Balance, June 30, 2026	$	24,996	7,018.0	$	13,611	$	274,520	$	(12,033)	$	301,094


Net income						6,933				6,933
Net change in debt securities								(1,871)		(1,871)
Net change in debit valuation adjustments								90		90
Net change in derivatives								(1,496)		(1,496)
Employee benefit plan adjustments								39		39
Net change in foreign currency translation adjustments								1		1
Dividends declared:
Common						(2,246)				(2,246)
Preferred						(392)				(392)


Common stock issued under employee plans, net, and other			1.4	604		(2)				602
Common stock repurchased			(96.7)	(6,005)						(6,005)
Balance, September 30, 2026	$	24,996	6,922.7	$	8,210	$	278,813	$	(15,270)	$	296,749
Balance, December 31, 2025	$	25,992	7,212.5	$	26,084	$	261,693	$	(10,526)	$	303,243


Net income						24,591				24,591
Net change in debt securities								(2,348)		(2,348)
Net change in debit valuation adjustments								349		349
Net change in derivatives								(2,874)		(2,874)
Employee benefit plan adjustments								110		110
Net change in foreign currency translation adjustments								19		19
Dividends declared:
Common						(6,262)				(6,262)
Preferred						(1,143)				(1,143)

Redemption of preferred stock	(996)					(4)				(1,000)
Common stock issued under employee plans, net, and other			58.8	1,377		(62)				1,315
Common stock repurchased			(348.6)	(19,251)						(19,251)
Balance, September 30, 2026	$	24,996	6,922.7	$	8,210	$	278,813	$	(15,270)	$	296,749

Balance, June 30, 2025	$	23,495	7,436.7	$	36,428	$	250,602	$	(12,504)	$	298,021

Net income						8,332				8,332
Net change in debt securities								438		438
Net change in debit valuation adjustments								(305)		(305)
Net change in derivatives								636		636
Employee benefit plan adjustments								(16)		(16)
Net change in foreign currency translation adjustments								6		6
Dividends declared:
Common						(2,079)				(2,079)
Preferred						(429)				(429)

Issuance of preferred stock	2,497									2,497
Common stock issued under employee plans, net, and other			1.1	636						636
Common stock repurchased			(108.4)	(5,300)						(5,300)
Balance, September 30, 2025	$	25,992	7,329.4	$	31,764	$	256,426	$	(11,745)	$	302,437

















Balance, December 31, 2024	$	23,159	7,610.9	$	45,336	$	240,753	$	(15,285)	$	293,963

Net income						22,862				22,862
Net change in debt securities								489		489
Net change in debit valuation adjustments								(161)		(161)
Net change in derivatives								3,145		3,145
Employee benefit plan adjustments								37		37
Net change in foreign currency translation adjustments								30		30
Dividends declared:
Common						(6,031)				(6,031)
Preferred						(1,117)				(1,117)
Issuance of preferred stock	5,493									5,493
Redemption of preferred stock	(2,660)					(9)				(2,669)
Common stock issued under employee plans, net, and other			53.2	1,551		(32)				1,519
Common stock repurchased			(334.7)	(15,123)						(15,123)
Balance, September 30, 2025	$	25,992	7,329.4	$	31,764	$	256,426	$	(11,745)	$	302,437

See accompanying Notes to Consolidated Financial Statements.


49 Bank of America

Bank of America Corporation and Subsidiaries



Consolidated Statement of Cash Flows

		Nine Months Ended September 30

	(Dollars in millions)	2026		2025
	Operating activities
	Net income	$	24,591	$	22,862
	Adjustments to reconcile net income to net cash provided by operating activities:
	Provision for credit losses	3,972		4,367
	(Gains) losses on sales of debt securities	(40)		23
	Depreciation and amortization	1,847		1,720
	Net accretion of discount/premium on debt securities	(444)		(664)
	Deferred income taxes	540		182
	Amortization of stock-based compensation	3,194		3,032





	Net change in:
	Trading and derivative assets/liabilities	31,621		4,687
	Loans held-for-sale	(3,060)		2,672
	Other assets	(88)		(24,633)
	Accrued expenses and other liabilities	2,374		20,011
	Other operating activities, net	(193)		1,299
	Net cash provided by operating activities	64,314		35,558
	Investing activities
	Net change in:
	Time deposits placed and other short-term investments	(1,164)		(1,840)
	Federal funds sold and securities borrowed or purchased under agreements to resell	(30,547)		(55,078)
	Debt securities carried at fair value:
	Proceeds from sales	180,161		96,786
	Proceeds from paydowns and maturities	76,226		63,781
	Purchases	(209,679)		(196,704)
	Held-to-maturity debt securities:
	Proceeds from paydowns and maturities	25,393		26,327

	Loans and leases:
	Proceeds from sales of loans originally classified as held for investment and instruments from related securitization activities	9,771		6,718
	Purchases	(6,171)		(12,487)
	Other changes in loans and leases, net	(73,522)		(68,672)
	Other investing activities, net	(6,027)		(2,816)
	Net cash used in investing activities	(35,559)		(143,985)
	Financing activities
	Net change in:
	Deposits	20,029		36,741
	Federal funds purchased and securities loaned or sold under agreements to repurchase	(29,298)		14,817
	Short-term borrowings	15,147		10,802
	Long-term debt:
	Proceeds from issuance	97,107		75,855
	Retirement	(83,733)		(57,893)
	Preferred stock:
	Proceeds from issuance	—		5,493
	Redemption	(1,000)		(2,669)
	Common stock repurchased	(19,251)		(15,123)
	Cash dividends paid	(7,573)		(7,203)
	Other financing activities, net	(1,745)		(919)
	Net cash provided by (used in) financing activities	(10,317)		59,901
	Effect of exchange rate changes on cash and cash equivalents	(640)		4,919
	Net increase (decrease) in cash and cash equivalents	17,798		(43,607)
	Cash and cash equivalents at January 1	231,845		290,114
	Cash and cash equivalents at September 30	$	249,643	$	246,507

See accompanying Notes to Consolidated Financial Statements.


						Bank of America 50

Bank of America Corporation and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 1 Summary of Significant Accounting Principles

Bank of America Corporation, a bank holding company and a financial holding company, provides a diverse range of financial services and products throughout the U.S. and in certain international markets. The term “the Corporation” as used herein 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.

Principles of Consolidation and Basis of Presentation

The Consolidated Financial Statements include the accounts of the Corporation and its majority-owned subsidiaries and those variable interest entities (VIEs) where the Corporation is the primary beneficiary. Intercompany accounts and transactions have been eliminated. Results of operations of acquired companies are included from the dates of acquisition, and for VIEs, from the dates that the Corporation became the primary beneficiary. Assets held in an agency or fiduciary capacity are not included in the Consolidated Financial Statements. The Corporation accounts for investments in companies for which it

owns a voting interest and for which it has the ability to exercise significant influence over operating and financing decisions using the equity method of accounting. These investments, which include the Corporation’s interests in affordable housing and renewable energy partnerships, are recorded in other assets. Equity method investments are subject to impairment testing, and the Corporation’s proportionate share of income or loss is included in other income.

The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could materially differ from those estimates and assumptions.

These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, and related notes thereto, of the Corporation’s 2025 Annual Report on Form 10-K.

The nature of the Corporation’s business is such that the results of any interim period are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period results, have been made. The Corporation evaluates subsequent events through the date of filing with the Securities and Exchange Commission (SEC).


51 Bank of America

NOTE 2 Net Interest Income and Noninterest Income

The table below presents the Corporation’s net interest income and noninterest income disaggregated by revenue source for the three and nine months ended September 30, 2026 and 2025. For more information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. For a disaggregation of noninterest income by business segment and All Other, see Note 17 – Business Segment Information.



	Three Months Ended September 30	Nine Months Ended September 30
(Dollars in millions)			2026		2025		2026		2025
Net interest income
Interest income
Loans and leases			$	16,487	$	16,191	$	47,833	$	47,065
Debt securities			5,942		6,958		18,265		20,638
Federal funds sold and securities borrowed or purchased under agreements to resell			4,214		3,802		12,256		11,670
Trading account assets			3,156		3,195		9,417		9,260
Other interest income (1)			4,458		5,220		13,677		15,672
Total interest income			34,257		35,366		101,448		104,305

Interest expense
Deposits			7,605		8,932		22,278		26,245
Short-term borrowings			6,331		7,172		19,448		21,570
Trading account liabilities			797		672		2,298		2,055
Long-term debt			3,075		3,357		9,233		10,089
Total interest expense			17,808		20,133		53,257		59,959
Net interest income			$	16,449	$	15,233	$	48,191	$	44,346

Noninterest income
Fees and commissions
Card income
Interchange fees (2)			$	894	$	990	$	2,706	$	2,942
Other card income			667		639		1,931		1,851
Total card income			1,561		1,629		4,637		4,793
Service charges
Deposit-related fees			1,322		1,267		3,964		3,760
Lending-related fees			354		365		1,092		1,048
Total service charges			1,676		1,632		5,056		4,808
Investment and brokerage services
Asset management fees			4,630		3,972		13,369		11,408
Brokerage fees			1,131		1,091		3,586		3,248
Total investment and brokerage services			5,761		5,063		16,955		14,656
Investment banking fees
Underwriting income			981		992		3,152		2,568
Syndication fees			347		438		1,044		1,096
Financial advisory services			471		583		1,582		1,300
Total investment banking fees			1,799		2,013		5,778		4,964
Total fees and commissions			10,797		10,337		32,426		29,221
Market making and similar activities			2,360		3,203		10,174		9,940
Other income (loss)			352		267		997		1,223
Total noninterest income			$	13,509	$	13,807	$	43,597	$	40,384

(1)Includes interest income on interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks of $2.1 billion and $2.7 billion for the three months ended September 30, 2026 and 2025, and $6.4 billion and $8.4 billion for the nine months ended September 30, 2026 and 2025.

(2)Gross interchange fees and merchant income were $3.6 billion and $3.4 billion for the three months ended September 30, 2026 and 2025, and are presented net of $2.7 billion and $2.5 billion of expenses for rewards and partner payments as well as certain other card costs for the same periods. Gross interchange fees and merchant income were $10.7 billion and $10.2 billion for the nine months ended September 30, 2026 and 2025 and are presented net of $8.0 billion and $7.3 billion of expenses for rewards and partner payments as well as certain other card costs for the same periods.


						Bank of America 52

NOTE 3 Derivatives

Derivative Balances

Derivatives are entered into on behalf of customers, for trading or to support risk management activities. Derivatives used in risk management activities include derivatives that may or may not be designated in qualifying hedge accounting relationships. Derivatives that are not designated in qualifying hedge accounting relationships are referred to as other risk management derivatives. For more information on the Corporation’s derivatives and hedging activities, see Note 1 – Summary of Significant Accounting Principles and Note 3 –

Derivatives to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. The following tables present derivative instruments included on the Consolidated Balance Sheet in derivative assets and liabilities at September 30, 2026 and December 31, 2025. Balances are presented on a gross basis, prior to the application of counterparty and cash collateral netting. Total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and have been reduced by cash collateral received or paid.



			September 30, 2026
			Gross Derivative Assets						Gross Derivative Liabilities
(Dollars in billions)	Contract/ Notional (1)		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total
Interest rate contracts
Swaps	$	30,461.4	$	83.1	$	7.9	$	91.0	$	65.6	$	15.9	$	81.5
Futures and forwards	5,114.2		16.6		—		16.6		13.4		—		13.4
Written options (2)	2,864.6		—		—		—		39.4		—		39.4
Purchased options (3)	2,710.4		39.7		—		39.7		—		—		—
Foreign exchange contracts
Swaps	3,184.9		47.2		0.3		47.5		39.4		0.1		39.5
Spot, futures and forwards	5,880.8		42.3		0.7		43.0		40.3		0.1		40.4
Written options (2)	824.5		—		—		—		8.7		—		8.7
Purchased options (3)	741.5		7.8		—		7.8		—		—		—
Equity contracts
Swaps	778.9		20.9		—		20.9		27.2		—		27.2
Futures and forwards	177.1		2.1		—		2.1		2.6		—		2.6
Written options (2)	1,126.4		—		—		—		94.6		—		94.6
Purchased options (3)	1,083.7		84.7		—		84.7		—		—		—
Commodity contracts
Swaps	78.8		5.8		—		5.8		7.1		—		7.1
Futures and forwards	188.6		2.5		—		2.5		1.9		0.1		2.0
Written options (2)	93.6		—		—		—		5.4		—		5.4
Purchased options (3)	87.2		5.6		—		5.6		—		—		—
Credit derivatives (4)
Purchased credit derivatives:
Credit default swaps	609.6		1.7		—		1.7		3.9		—		3.9
Total return swaps/options	158.8		0.7		—		0.7		0.9		—		0.9
Written credit derivatives:
Credit default swaps	577.8		2.9		—		2.9		1.5		—		1.5
Total return swaps/options	170.0		1.3		—		1.3		3.6		—		3.6
Gross derivative assets/liabilities			$	364.9	$	8.9	$	373.8	$	355.5	$	16.2	$	371.7
Less: Legally enforceable master netting agreements							(287.1)						(287.1)
Less: Cash collateral received/paid							(33.6)						(35.4)
Total derivative assets/liabilities							$	53.1					$	49.2

(1)Represents the total contract/notional amount of derivative assets and liabilities outstanding.

(2)Includes certain out-of-the-money purchased options that have a liability amount primarily due to the deferral of option premiums to the end of the contract.

(3)Includes certain out-of-the-money written options that have an asset amount primarily due to the deferral of option premiums to the end of the contract.

(4)The net derivative asset (liability) and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $1.3 billion and $551.0 billion, respectively, at September 30, 2026.


53 Bank of America



			December 31, 2025
			Gross Derivative Assets						Gross Derivative Liabilities
(Dollars in billions)	Contract/ Notional (1)		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total		Trading and Other Risk Management Derivatives		Qualifying Accounting Hedges		Total
Interest rate contracts
Swaps	$	21,163.5	$	75.5	$	5.1	$	80.6	$	70.5	$	7.4	$	77.9
Futures and forwards	4,279.5		3.9		—		3.9		3.2		—		3.2
Written options (2)	2,138.2		—		—		—		26.4		—		26.4
Purchased options (3)	2,008.5		28.3		—		28.3		—		—		—
Foreign exchange contracts
Swaps	2,852.1		41.4		0.1		41.5		35.4		0.2		35.6
Spot, futures and forwards	4,643.0		33.1		0.2		33.3		33.5		0.2		33.7
Written options (2)	623.7		—		—		—		8.2		—		8.2
Purchased options (3)	576.3		8.0		—		8.0		—		—		—
Equity contracts
Swaps	736.3		16.8		—		16.8		21.5		—		21.5
Futures and forwards	147.8		2.2		—		2.2		2.1		—		2.1
Written options (2)	903.2		—		—		—		67.1		—		67.1
Purchased options (3)	859.7		60.1		—		60.1		—		—		—
Commodity contracts
Swaps	70.3		2.9		—		2.9		5.6		—		5.6
Futures and forwards	156.5		6.3		0.1		6.4		5.2		0.7		5.9
Written options (2)	71.2		—		—		—		3.2		—		3.2
Purchased options (3)	69.8		3.2		—		3.2		—		—		—
Credit derivatives (4)
Purchased credit derivatives:
Credit default swaps	475.9		1.5		—		1.5		3.8		—		3.8
Total return swaps/options	100.5		0.4		—		0.4		0.4		—		0.4
Written credit derivatives:
Credit default swaps	442.9		2.6		—		2.6		1.5		—		1.5
Total return swaps/options	103.8		0.5		—		0.5		1.5		—		1.5
Gross derivative assets/liabilities			$	286.7	$	5.5	$	292.2	$	289.1	$	8.5	$	297.6
Less: Legally enforceable master netting agreements							(224.1)						(224.1)
Less: Cash collateral received/paid							(27.2)						(31.4)
Total derivative assets/liabilities							$	40.9					$	42.1

(1)Represents the total contract/notional amount of derivative assets and liabilities outstanding.

(2)Includes certain out-of-the-money purchased options that have a liability amount primarily due to the deferral of option premiums to the end of the contract.

(3)Includes certain out-of-the-money written options that have an asset amount primarily due to the deferral of option premiums to the end of the contract.

(4)The net derivative asset (liability) and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $1.0 billion and $421.3 billion, respectively, at December 31, 2025.

Offsetting of Derivatives

The Corporation enters into International Swaps and Derivatives Association, Inc. (ISDA) master netting agreements or similar agreements with substantially all of the Corporation’s derivative counterparties. For more information, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

The following table presents derivative instruments included in derivative assets and liabilities on the Consolidated Balance Sheet at September 30, 2026 and December 31, 2025 by primary risk (e.g., interest rate risk) and the platform, where

applicable, on which these derivatives are transacted. Balances are presented on a gross basis, prior to the application of counterparty and cash collateral netting. Total gross derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements, which include reducing the balance for counterparty netting and cash collateral received or paid.

For more information on offsetting of securities financing agreements, see Note 9 – Securities Financing Agreements, Collateral and Restricted Cash.


						Bank of America 54



Offsetting of Derivatives (1)

	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
(Dollars in billions)	September 30, 2026				December 31, 2025
Interest rate contracts
Over-the-counter	$	128.0	$	112.4	$	106.2	$	100.0
Exchange-traded	0.3		0.2		—		—
Over-the-counter cleared	17.5		18.8		6.3		5.9
Foreign exchange contracts
Over-the-counter	95.5		86.0		80.4		75.3
Over-the-counter cleared	1.3		1.4		1.2		1.3
Equity contracts
Over-the-counter	37.4		53.9		31.3		43.8
Exchange-traded	68.6		68.2		46.8		45.1
Commodity contracts
Over-the-counter	10.6		10.8		9.9		11.8
Exchange-traded	3.0		3.0		1.6		1.7
Over-the-counter cleared	0.1		0.2		0.3		0.4
Credit derivatives
Over-the-counter	6.6		9.9		4.9		7.1

Total gross derivative assets/liabilities, before netting
Over-the-counter	278.1		273.0		232.7		238.0
Exchange-traded	71.9		71.4		48.4		46.8
Over-the-counter cleared	18.9		20.4		7.8		7.6
Less: Legally enforceable master netting agreements and cash collateral received/paid
Over-the-counter	(235.5)		(238.2)		(199.2)		(203.9)
Exchange-traded	(66.6)		(66.6)		(44.5)		(44.5)
Over-the-counter cleared	(18.6)		(17.7)		(7.6)		(7.1)
Derivative assets/liabilities, after netting	48.2		42.3		37.6		36.9
Other gross derivative assets/liabilities (2)	4.9		6.9		3.3		5.2
Total derivative assets/liabilities	53.1		49.2		40.9		42.1
Less: Financial instruments collateral (3)	(23.0)		(17.4)		(20.5)		(16.7)
Total net derivative assets/liabilities	$	30.1	$	31.8	$	20.4	$	25.4

(1)Over-the-counter (OTC) derivatives include bilateral transactions between the Corporation and a particular counterparty. Over-the-counter cleared derivatives include bilateral transactions between the Corporation and a counterparty where the transaction is cleared through a clearinghouse. Exchange-traded derivatives include listed options transacted on an exchange.

(2)Consists of derivatives entered into under master netting agreements where the enforceability of these agreements is uncertain under bankruptcy laws in some countries or industries.

(3)Amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged. Financial instruments collateral includes securities received or pledged and cash securities held and posted at third-party custodians that are not offset on the Consolidated Balance Sheet but shown as a reduction to derive net derivative assets and liabilities.

Derivatives Designated as Accounting Hedges

The Corporation uses various types of interest rate and foreign exchange derivative contracts to protect against changes in the fair value of its assets and liabilities due to fluctuations in interest rates and foreign exchange rates (fair value hedges). The Corporation also uses these types of contracts to protect against changes in the cash flows of its assets and liabilities, and other forecasted transactions (cash flow hedges). The Corporation hedges its net investment in consolidated non-U.S.

operations determined to have functional currencies other than the U.S. dollar using forward exchange contracts and cross-currency basis swaps, and by issuing foreign currency- denominated debt (net investment hedges).

Fair Value Hedges

The table below summarizes information related to fair value hedges for the three and nine months ended September 30, 2026 and 2025.



Gains and Losses on Derivatives and Hedged Items Designated in Fair Value Hedges



	Derivative		Hedged Item		Derivative		Hedged Item
(Dollars in millions)	Three Months Ended September 30, 2026				Three Months Ended September 30, 2025
Interest rate risk on long-term debt (1)	$	(6,580)	$	6,571	$	300	$	(289)
Interest rate and foreign currency risk (2)	92		(95)		125		(126)
Interest rate risk on available-for-sale securities (3)	5,101		(5,091)		(376)		363
Price risk on commodity inventory (4,5)	(196)		196		(780)		780
Total	$	(1,583)	$	1,581	$	(731)	$	728

	Nine Months Ended September 30, 2026				Nine Months Ended September 30, 2025
Interest rate risk on long-term debt (1)	$	(8,790)	$	8,793	$	4,144	$	(4,136)
Interest rate and foreign currency risk (2)	240		(244)		(242)		241
Interest rate risk on available-for-sale securities (3)	8,251		(8,292)		(5,569)		5,475
Price risk on commodity inventory (4,5)	25		(25)		(2,078)		2,078
Total	$	(274)	$	232	$	(3,745)	$	3,658

(1)Amounts are recorded in interest expense in the Consolidated Statement of Income.

(2)Represents cross-currency interest rate swaps related to available-for-sale debt securities and long-term debt. For the three and nine months ended September 30, 2026, the derivative amount includes gains (losses) of $103 million and $94 million in interest income, $(3) million and $160 million in market making and similar activities, and $(8) million and $(14) million in accumulated other comprehensive income (OCI). For the same periods in 2025, the derivative amount includes gains (losses) of $4 million and $(3) million in interest income, $123 million and $(235) million in market making and similar activities, and $(2) million and $(4) million in accumulated OCI. Line item totals are in the Consolidated Statement of Income and on the Consolidated Balance Sheet.

(3)Amounts are recorded in interest income in the Consolidated Statement of Income.

(4)Amounts are recorded in market making and similar activities in the Consolidated Statement of Income.

(5)For certain commodity hedges, the forward component of the derivative is excluded from the accounting hedge. Gains (losses) related to this excluded component and recognized in market making and similar activities were $67 million and $297 million for the three and nine months ended September 30, 2026, respectively, compared to $(12) million and $6 million for the same periods in 2025.


55 Bank of America

The table below summarizes the carrying value of hedged assets and liabilities that are designated in fair value hedging relationships, along with the cumulative amount of gains and losses on the hedged assets and liabilities that are included in their carrying value. There is no impact to earnings for the cumulative amount of these fair value hedging adjustments as long as the hedging relationships remain open through the

hedged period. Instead, the open hedges have the effect of synthetically converting the hedged assets and liabilities into variable-rate instruments. If an open hedge is de-designated prior to the derivative’s maturity, any cumulative fair value adjustments at the de-designation date are then amortized or accreted into earnings over the remaining life of the hedged assets or liabilities.



Designated Fair Value Hedged Assets and Liabilities

	September 30, 2026				December 31, 2025
(Dollars in millions)	Carrying Value		Cumulative Fair Value Adjustments (1)		Carrying Value		Cumulative Fair Value Adjustments (1)

Long-term debt	$	180,932	$	(9,573)	$	175,694	$	(792)
Available-for-sale debt securities (2, 3)	197,018		(7,125)		236,303		146
Trading account assets (4)	8,513		—		12,170		294

(1)Increase (decrease) to carrying value.

(2)These amounts include the amortized cost of the financial assets in closed portfolios used to designate hedging relationships in which the hedged item is a stated layer that is expected to be remaining at the end of the hedging relationship (i.e. portfolio layer hedging relationship). At September 30, 2026 and December 31, 2025, the amortized cost of the closed portfolios used in these hedging relationships was $42.0 billion and $35.8 billion, of which $35.5 billion and $23.7 billion were designated in a portfolio layer hedging relationship. At September 30, 2026 and December 31, 2025, the cumulative adjustment associated with these hedging relationships was a decrease of $1.5 billion and $46 million.

(3)Carrying value represents amortized cost.

(4)Represents hedging activities related to certain commodities inventory.

At September 30, 2026 and December 31, 2025, the fair value adjustments from de-designated long-term debt hedges decreased the long-term debt carrying value by $11.5 billion and $12.9 billion. The fair value adjustments from de-designated available-for-sale (AFS) debt securities hedges decreased the AFS debt securities carrying value by $1.2 billion and $2.7 billion. The fair value adjustments are being amortized or accreted into interest over the contractual lives of the assets or liabilities.

Cash Flow and Net Investment Hedges

The table below summarizes certain information related to cash flow hedges and net investment hedges for the three and nine months ended September 30, 2026 and 2025. Of the $4.9 billion after-tax net loss ($6.4 billion pretax) on derivatives in

accumulated OCI at September 30, 2026, losses of $2.4 billion after-tax ($3.2 billion pretax) related to both open and closed cash flow hedges are expected to be reclassified into earnings in the next 12 months. These net losses reclassified into earnings are expected to primarily decrease net interest income related to the respective hedged items. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately three years. For terminated cash flow hedges, the time period over which the forecasted transactions will be recognized in interest income is approximately four years, with the aggregated amount beyond this time period being insignificant.



Gains and Losses on Derivatives Designated as Cash Flow and Net Investment Hedges



	Gains (Losses) Recognized in Accumulated OCI on Derivatives	Gains (Losses) in Income Reclassified from Accumulated OCI	Gains (Losses) Recognized in Accumulated OCI on Derivatives	Gains (Losses) in Income Reclassified from Accumulated OCI
(Dollars in millions, amounts pretax)					Three Months Ended September 30, 2026				Nine Months Ended September 30, 2026
Cash flow hedges
Interest rate risk on variable-rate portfolios (1)					$	(2,286)	$	(328)	$	(4,817)	$	(1,056)
Price risk on forecasted MBS purchases (1)					—		(2)		—		(6)
Price risk on certain compensation plans (2)					—		5		—		14
Total					$	(2,286)	$	(325)	$	(4,817)	$	(1,048)
Net investment hedges
Foreign exchange risk (3)					$	(67)	$	—	$	757	$	4

					Three Months Ended September 30, 2025				Nine Months Ended September 30, 2025
Cash flow hedges
Interest rate risk on variable-rate portfolios (1)					$	513	$	(384)	$	3,095	$	(1,154)
Price risk on forecasted MBS purchases (1)					—		(2)		—		(6)
Price risk on certain compensation plans (2)					—		5		1		17
Total					$	513	$	(381)	$	3,096	$	(1,143)
Net investment hedges
Foreign exchange risk (3)					$	227	$	—	$	(2,878)	$	—

(1)Amounts reclassified from accumulated OCI are recorded in interest income in the Consolidated Statement of Income.

(2)Amounts reclassified from accumulated OCI are recorded in compensation and benefits expense in the Consolidated Statement of Income.

(3)Amounts reclassified from accumulated OCI are recorded in other income in the Consolidated Statement of Income. For the three and nine months ended September 30, 2026, amounts excluded from effectiveness testing and recognized in market making and similar activities were losses of $2 million and $13 million. For the same periods in 2025, amounts excluded from effectiveness testing and recognized in market making and similar activities were gains of $98 million and $125 million.


						Bank of America 56

Other Risk Management Derivatives

Other risk management derivatives are used by the Corporation to reduce certain risk exposures by economically hedging various assets and liabilities. The table below presents gains (losses) on these derivatives for the three and nine months ended September 30, 2026 and 2025. These gains (losses) are largely offset by the income or expense recorded on the hedged item.



Gains and Losses on Other Risk Management Derivatives

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025
Interest rate risk on mortgage activities (1, 2)	$	(55)	$	18	$	(52)	$	58
Credit risk on loans (2)	—		(20)		(15)		(42)
Interest rate and foreign currency risk on asset and liability management activities (3)	(597)		623		(875)		(1,863)
Price risk on certain compensation plans (4)	(49)		264		315		445

(1)Includes hedges of interest rate risk on mortgage servicing rights (MSRs) and interest rate lock commitments (IRLCs) to originate mortgage loans that will be held for sale.

(2)Gains (losses) on these derivatives are recorded in other income.

(3)Gains (losses) on these derivatives are recorded in market making and similar activities.

(4)Gains (losses) on these derivatives are recorded in compensation and benefits expense.

Transfers of Financial Assets with Risk Retained through Derivatives

The Corporation enters into certain transactions involving the transfer of financial assets that are accounted for as sales where substantially all of the economic exposure to the transferred financial assets is retained through derivatives (e.g., interest rate and/or credit), but the Corporation does not retain control over the assets transferred. At September 30, 2026 and December 31, 2025, the Corporation had transferred $4.2 billion and $3.9 billion of non-U.S. government-guaranteed mortgage-backed securities to a third-party trust and retained economic exposure to the transferred assets through derivative contracts. In connection with these transfers, the Corporation received gross cash proceeds of $4.2 billion and $3.9 billion at the transfer dates. At September 30, 2026 and December 31, 2025, the fair value of the transferred securities was $4.0 billion and $3.8 billion.

Sales and Trading Revenue

The Corporation enters into trading derivatives to facilitate client transactions and to manage risk exposures arising from trading account assets and liabilities. It is the Corporation’s policy to

include these derivative instruments in its trading activities, which include derivatives and non-derivative cash instruments. The resulting risk from these derivatives is managed on a portfolio basis as part of the Corporation’s Global Markets business segment. For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

The table below, which includes both derivatives and non-derivative cash instruments, identifies the amounts in the respective income statement line items attributable to the Corporation’s sales and trading revenue in Global Markets, categorized by primary risk, for the three and nine months ended September 30, 2026 and 2025. This table includes debit valuation adjustment (DVA) and funding valuation adjustment (FVA) gains (losses). Global Markets results in Note 17 – Business Segment Information are presented on a fully taxable-equivalent (FTE) basis. The table below is not presented on an FTE basis.



Sales and Trading Revenue

	Market making and similar activities		Net Interest Income		Other (1)		Total		Market making and similar activities		Net Interest Income		Other (1)		Total
(Dollars in millions)	Three Months Ended September 30, 2026								Nine Months Ended September 30, 2026
Interest rate risk	$	(256)	$	1,151	$	99	$	994	$	159	$	3,176	$	349	$	3,684
Foreign exchange risk	528		11		9		548		1,607		21		20		1,648
Equity risk	2,087		(170)		595		2,512		7,475		(387)		1,899		8,987
Credit risk	108		686		31		825		990		2,130		232		3,352
Other risk (2)	84		141		(119)		106		448		231		(276)		403
Total sales and trading revenue	$	2,551	$	1,819	$	615	$	4,985	$	10,679	$	5,171	$	2,224	$	18,074

	Three Months Ended September 30, 2025								Nine Months Ended September 30, 2025
Interest rate risk	$	277	$	813	$	120	$	1,210	$	1,255	$	2,179	$	372	$	3,806
Foreign exchange risk	501		(8)		24		517		1,610		17		66		1,693
Equity risk	1,911		(187)		546		2,270		5,769		(826)		1,658		6,601
Credit risk	362		668		86		1,116		1,040		2,026		427		3,493
Other risk (2)	86		11		(3)		94		368		(37)		(18)		313
Total sales and trading revenue	$	3,137	$	1,297	$	773	$	5,207	$	10,042	$	3,359	$	2,505	$	15,906

(1)Represents amounts in investment and brokerage services and other income that are recorded in Global Markets and included in the definition of sales and trading revenue. Includes investment and brokerage services revenue of $683 million and $2.2 billion for the three and nine months ended September 30, 2026 compared to $614 million and $1.9 billion for the same periods in 2025.

(2)Includes commodity risk.


57 Bank of America

Credit Derivatives

The Corporation enters into credit derivatives primarily to facilitate client transactions and to manage credit risk exposures. Credit derivatives are classified as investment and non-investment grade based on the credit quality of the underlying referenced obligation. The Corporation considers ratings of BBB- or higher as investment grade. Non-investment grade includes non-rated credit derivative instruments. The Corporation discloses internal categorizations of investment grade and non-investment grade consistent with how risk is

managed for these instruments. For more information on credit derivatives, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

Credit derivative instruments where the Corporation is the seller of credit protection and their expiration at September 30, 2026 and December 31, 2025 are summarized in the table below.



Credit Derivative Instruments

	Less than One Year		One to Three Years		Three to Five Years		Over Five Years		Total
	September 30, 2026
(Dollars in millions)	Carrying Value
Credit default swaps:
Investment grade	$	—	$	—	$	33	$	47	$	80
Non-investment grade	10		386		543		478		1,417
Total	10		386		576		525		1,497
Total return swaps/options:
Investment grade	70		—		—		—		70
Non-investment grade	2,750		721		39		—		3,510
Total	2,820		721		39		—		3,580
Total credit derivatives	$	2,830	$	1,107	$	615	$	525	$	5,077
Credit-related notes:
Investment grade	$	—	$	—	$	7	$	754	$	761
Non-investment grade	—		6		38		1,254		1,298
Total credit-related notes	$	—	$	6	$	45	$	2,008	$	2,059
	Maximum Payout/Notional
Credit default swaps:
Investment grade	$	57,531	$	124,181	$	195,740	$	68,194	$	445,646
Non-investment grade	16,223		37,297		61,674		16,980		132,174
Total	73,754		161,478		257,414		85,174		577,820
Total return swaps/options:
Investment grade	111,531		1,223		1,478		480		114,712
Non-investment grade	48,649		5,989		232		454		55,324
Total	160,180		7,212		1,710		934		170,036
Total credit derivatives	$	233,934	$	168,690	$	259,124	$	86,108	$	747,856

	December 31, 2025
	Carrying Value
Credit default swaps:
Investment grade	$	—	$	—	$	7	$	34	$	41
Non-investment grade	60		532		418		403		1,413
Total	60		532		425		437		1,454
Total return swaps/options:
Investment grade	88		2		—		—		90
Non-investment grade	1,258		89		74		1		1,422
Total	1,346		91		74		1		1,512
Total credit derivatives	$	1,406	$	623	$	499	$	438	$	2,966
Credit-related notes:
Investment grade	$	—	$	—	$	3	$	970	$	973
Non-investment grade	—		4		26		1,136		1,166
Total credit-related notes	$	—	$	4	$	29	$	2,106	$	2,139
	Maximum Payout/Notional
Credit default swaps:
Investment grade	$	48,636	$	100,059	$	168,131	$	22,048	$	338,874
Non-investment grade	15,434		35,286		49,913		3,372		104,005
Total	64,070		135,345		218,044		25,420		442,879
Total return swaps/options:
Investment grade	61,269		1,507		1,419		352		64,547
Non-investment grade	35,318		2,877		516		520		39,231
Total	96,587		4,384		1,935		872		103,778
Total credit derivatives	$	160,657	$	139,729	$	219,979	$	26,292	$	546,657


						Bank of America 58

The notional amount represents the maximum amount payable by the Corporation for most credit derivatives. However, the Corporation does not monitor its exposure to credit derivatives based solely on the notional amount because this measure does not take into consideration the probability of occurrence. As such, the notional amount is not a reliable indicator of the Corporation’s exposure to these contracts. Instead, a risk framework is used to define risk tolerances and establish limits so that certain credit risk-related losses occur within acceptable, predefined limits.

Credit-related notes in the table above include investments in securities issued by collateralized debt obligation (CDO), collateralized loan obligation (CLO) and credit-linked note vehicles. These instruments are primarily classified as trading securities. The carrying value of these instruments equals the Corporation’s maximum exposure to loss. The Corporation is not obligated to make any payments to the entities under the terms of the securities owned.

Credit-related Contingent Features and Collateral

Certain of the Corporation’s derivative contracts contain credit risk-related contingent features, primarily in the form of ISDA master netting agreements and credit support documentation that enhance the creditworthiness of these instruments compared to other obligations of the respective counterparty with whom the Corporation has transacted. These contingent features may be for the benefit of the Corporation as well as its counterparties with respect to changes in the Corporation’s creditworthiness and the mark-to-market exposure under the derivative transactions. At September 30, 2026 and December 31, 2025, the Corporation held cash and securities collateral of $137.2 billion and $119.7 billion and posted cash and securities collateral of $100.0 billion and $97.8 billion in the normal course of business under derivative agreements, excluding cross-product margining agreements where clients are permitted to margin on a net basis for both derivative and secured financing arrangements.

In connection with certain OTC derivative contracts and other trading agreements, the Corporation can be required to provide additional collateral or to terminate transactions with certain counterparties in the event of a downgrade of the senior debt ratings of the Corporation or certain subsidiaries. The amount of additional collateral required depends on the contract and is usually a fixed incremental amount and/or the market value of the exposure. For more information on credit-related contingent features and collateral, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

At September 30, 2026, the amount of collateral, calculated based on the terms of the contracts, that the Corporation and certain subsidiaries could be required to post to counterparties but had not yet posted to counterparties was $4.6 billion, including $2.1 billion for Bank of America, National Association (BANA).

Some counterparties are currently able to unilaterally terminate certain contracts, or the Corporation or certain subsidiaries may be required to take other action such as find a

suitable replacement or obtain a guarantee. At September 30, 2026 and December 31, 2025, the liability recorded for these derivative contracts was not significant.

The table below presents the amount of additional collateral that would have been contractually required by derivative contracts and other trading agreements at September 30, 2026 if the rating agencies had downgraded their long-term senior debt ratings for the Corporation or certain subsidiaries by one incremental notch and by an additional second incremental notch. The table also presents derivative liabilities that would be subject to unilateral termination by counterparties upon downgrade of the Corporation's or certain subsidiaries’ long-term senior debt ratings.



Additional Collateral Required to be Posted and Derivative Liabilities Subject to Unilateral Termination Upon Downgrade at September 30, 2026

(Dollars in millions)	One Incremental Notch		Second Incremental Notch
Additional collateral required to be posted upon downgrade
Bank of America Corporation	$	122	$	1,505
Bank of America, N.A. and subsidiaries (1)	40		1,394

Derivative liabilities subject to unilateral termination upon downgrade
Derivative liabilities	$	8	$	89
Collateral posted	1		75

(1)Included in Bank of America Corporation collateral requirements in this table.

Valuation Adjustments on Derivatives

The table below presents credit valuation adjustment (CVA), DVA and FVA gains (losses) on derivatives (excluding the effect of any related hedge activities), which are recorded in market making and similar activities, for the three and nine months ended September 30, 2026 and 2025. For more information on the valuation adjustments on derivatives, see Note 3 – Derivatives to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.



Valuation Adjustments Gains (Losses) on Derivatives (1)

	Three Months Ended September 30
(Dollars in millions)	2026		2025
Derivative assets (CVA)	$	(48)	$	42
Derivative assets/liabilities (FVA)	(34)		17
Derivative liabilities (DVA)	39		16

	Nine Months Ended September 30
(Dollars in millions)	2026		2025
Derivative assets (CVA)	$	(63)	$	(22)
Derivative assets/liabilities (FVA)	(14)		(29)
Derivative liabilities (DVA)	70		13

(1)At September 30, 2026 and December 31, 2025, cumulative CVA reduced the derivative assets balance by $399 million and $336 million, cumulative FVA reduced the net derivative balance by $130 million and $116 million and cumulative DVA reduced the derivative liabilities balance by $340 million and $270 million.


59 Bank of America

NOTE 4 Securities

The table below presents the amortized cost, gross unrealized gains and losses, and fair value of AFS debt securities, other debt securities carried at fair value and held-to-maturity (HTM) debt securities at September 30, 2026 and December 31, 2025.



Debt Securities

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in millions)	September 30, 2026								December 31, 2025
Available-for-sale debt securities
Mortgage-backed securities:
Agency	$	39,186	$	23	$	(1,964)	$	37,245	$	34,240	$	80	$	(1,179)	$	33,141
Agency-collateralized mortgage obligations	16,265		1		(302)		15,964		19,304		27		(132)		19,199
Commercial	43,318		126		(928)		42,516		38,688		191		(385)		38,494
Non-agency residential (1)	75		1		(28)		48		273		55		(56)		272
Total mortgage-backed securities	98,844		151		(3,222)		95,773		92,505		353		(1,752)		91,106
U.S. Treasury and government agencies	175,017		71		(1,439)		173,649		250,065		390		(621)		249,834
Non-U.S. securities	46,315		19		(66)		46,268		31,765		20		(18)		31,767

Other taxable securities	6,235		2		(88)		6,149		6,328		12		(36)		6,304

Tax-exempt securities	7,216		7		(248)		6,975		7,948		15		(176)		7,787
Total available-for-sale debt securities	333,627		250		(5,063)		328,814		388,611		790		(2,603)		386,798
Other debt securities carried at fair value (2)	16,922		73		(173)		16,822		16,066		200		(89)		16,177
Total debt securities carried at fair value	350,549		323		(5,236)		345,636		404,677		990		(2,692)		402,975
Held-to-maturity debt securities

Agency mortgage-backed securities	370,073		—		(87,397)		282,676		395,415		—		(67,309)		328,106




U.S. Treasury and government agencies	121,273		—		(15,621)		105,652		121,242		—		(12,225)		109,017


Other taxable securities	5,080		1		(896)		4,185		6,028		2		(723)		5,307


Total held-to-maturity debt securities	496,426		1		(103,914)		392,513		522,685		2		(80,257)		442,430
Total debt securities (3,4)	$	846,975	$	324	$	(109,150)	$	738,149	$	927,362	$	992	$	(82,949)	$	845,405

(1)At September 30, 2026 and December 31, 2025, the underlying collateral type included approximately 10 percent and 27 percent prime and 90 percent and 73 percent subprime.

(2)Primarily includes non-U.S. securities used to satisfy certain international regulatory requirements. Any changes in value are reported in market making and similar activities. For detail on the components, see Note 14 – Fair Value Measurements.

(3)Includes securities pledged as collateral of $110.3 billion and $153.8 billion at September 30, 2026 and December 31, 2025.

(4)The Corporation held debt securities from Fannie Mae (FNMA) and Freddie Mac (FHLMC) that each exceeded 10 percent of shareholders’ equity, with an amortized cost of $234.5 billion and $153.0 billion, and a fair value of $183.7 billion and $121.0 billion at September 30, 2026, and an amortized cost of $246.9 billion and $158.5 billion, and a fair value of $208.0 billion and $133.6 billion at December 31, 2025.

At September 30, 2026 and December 31, 2025, the Corporation’s expected credit losses on AFS and HTM debt securities with a total amortized cost of $830.1 billion and $911.3 billion were not significant. Of these amounts, $769.1 billion and $863.7 billion of AFS and HTM debt securities were predominantly U.S. agency and U.S. Treasury securities and had a zero credit loss assumption as of the end of the same periods. At September 30, 2026 and December 31, 2025, nonperforming AFS debt securities held by the Corporation were not significant. For more information on the zero credit loss assumption, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

At September 30, 2026 and December 31, 2025, the Corporation held equity securities at an aggregate fair value of $230 million and $253 million, respectively, and other equity securities, as valued under the measurement alternative, at a carrying value of $547 million and $479 million, respectively, both of which are included in other assets. At September 30, 2026 and December 31, 2025, the Corporation also held money market investments at a fair value of $1.4 billion and $1.2 billion, which are included in time deposits placed and other short-term investments.

The gross realized gains and losses on sales of AFS debt securities for the three and nine months ended September 30, 2026 and 2025 are presented in the table below.



Gains and Losses on Sales of AFS Debt Securities

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025
Gross gains	$	68	$	34	$	246	$	50
Gross losses	(47)		(37)		(206)		(73)
Net gains (losses) on sales of AFS debt securities	$	21	$	(3)	$	40	$	(23)
Income tax expense (benefit) attributable to realized net gains (losses) on sales of AFS debt securities	$	5	$	(1)	$	10	$	(6)


						Bank of America 60

The table below presents the fair value and the associated gross unrealized losses on AFS debt securities and whether these securities have had gross unrealized losses for less than 12 months or for 12 months or longer at September 30, 2026 and December 31, 2025. Substantially all of the unrealized losses relate to debt securities that have a zero credit loss assumption.



Total AFS Debt Securities in a Continuous Unrealized Loss Position

	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(Dollars in millions)	September 30, 2026
Continuously unrealized loss-positioned AFS debt securities
Mortgage-backed securities:
Agency	$	19,712	$	(493)	$	14,430	$	(1,471)	$	34,142	$	(1,964)
Agency-collateralized mortgage obligations	14,144		(128)		1,241		(174)		15,385		(302)
Commercial	20,966		(544)		4,172		(384)		25,138		(928)
Non-agency residential	7		(1)		38		(27)		45		(28)
Total mortgage-backed securities	54,829		(1,166)		19,881		(2,056)		74,710		(3,222)
U.S. Treasury and government agencies	78,462		(893)		39,621		(546)		118,083		(1,439)
Non-U.S. securities	19,265		(55)		2,457		(11)		21,722		(66)

Other taxable securities	3,641		(42)		1,404		(46)		5,045		(88)

Tax-exempt securities	768		(45)		1,862		(203)		2,630		(248)



Total AFS debt securities in a continuous unrealized loss position	$	156,965	$	(2,201)	$	65,225	$	(2,862)	$	222,190	$	(5,063)

	December 31, 2025
Continuously unrealized loss-positioned AFS debt securities
Mortgage-backed securities:
Agency	$	1,645	$	—	$	18,512	$	(1,179)	$	20,157	$	(1,179)
Agency-collateralized mortgage obligations	2,503		(5)		2,351		(127)		4,854		(132)
Commercial	8,795		(27)		5,527		(358)		14,322		(385)
Non-agency residential	—		—		154		(56)		154		(56)
Total mortgage-backed securities	12,943		(32)		26,544		(1,720)		39,487		(1,752)
U.S. Treasury and government agencies	5,398		(7)		68,763		(614)		74,161		(621)
Non-U.S. securities	10,891		(10)		2,808		(8)		13,699		(18)

Other taxable securities	979		(5)		1,356		(31)		2,335		(36)

Tax-exempt securities	415		(1)		1,730		(175)		2,145		(176)



Total AFS debt securities in a continuous unrealized loss position	$	30,626	$	(55)	$	101,201	$	(2,548)	$	131,827	$	(2,603)


61 Bank of America

The remaining contractual maturity distribution and yields of the Corporation’s debt securities carried at fair value and HTM debt securities at September 30, 2026 are summarized in the table below. Actual duration and yields may differ as prepayments on the loans underlying the mortgage-backed securities (MBS) or other asset-backed securities (ABS) are passed through to the Corporation.



Maturities of Debt Securities Carried at Fair Value and Held-to-maturity Debt Securities

	Due in One Year or Less				Due after One Year through Five Years				Due after Five Years through Ten Years				Due after Ten Years				Total
(Dollars in millions)	Amount		Yield (1)		Amount		Yield (1)		Amount		Yield (1)		Amount		Yield (1)		Amount		Yield (1)
Amortized cost of debt securities carried at fair value
Mortgage-backed securities:
Agency	$	—	—	%	$	3	2.98	%	$	5	4.58	%	$	39,183	4.69	%	$	39,191	4.69	%
Agency-collateralized mortgage obligations	—		—		—		—		1		0.82		16,264		5.55		16,265		5.55
Commercial	153		3.20		23,945		4.12		17,402		4.47		1,831		3.69		43,331		4.24
Non-agency residential	—		—		—		—		1		11.18		314		13.21		315		13.21
Total mortgage-backed securities	153		3.20		23,948		4.12		17,409		4.47		57,592		4.95		99,102		4.66
U.S. Treasury and government agencies	29,748		3.96		140,309		3.67		9,279		4.08		29		4.01		179,365		3.74
Non-U.S. securities	28,594		2.94		12,792		3.29		7,852		4.60		9,393		4.19		58,631		3.44

Other taxable securities	634		5.12		4,590		4.55		308		4.08		703		4.05		6,235		4.53

Tax-exempt securities	400		3.23		2,402		4.13		787		3.64		3,627		4.19		7,216		4.06
Total amortized cost of debt securities carried at fair value	$	59,529	3.47		$	184,041	3.73		$	35,635	4.37		$	71,344	4.80		$	350,549	3.97
Amortized cost of HTM debt securities

Agency mortgage-backed securities	$	—	—	%	$	1	2.12	%	$	42	2.74	%	$	370,030	2.12	%	$	370,073	2.12	%




U.S. Treasury and government agencies	4,102		1.69		117,171		1.22		—		—		—		—		121,273		1.24


Other taxable securities	76		1.68		261		2.83		219		2.43		4,524		2.53		5,080		2.53


Total amortized cost of HTM debt securities	$	4,178	1.69		$	117,433	1.22		$	261	2.48		$	374,554	2.12		$	496,426	1.91

Debt securities carried at fair value
Mortgage-backed securities:
Agency	$	—			$	3			$	5			$	37,242			$	37,250
Agency-collateralized mortgage obligations	—				—				1				15,963				15,964
Commercial	154				23,459				17,290				1,625				42,528
Non-agency residential	—				—				1				199				200
Total mortgage-backed securities	154				23,462				17,297				55,029				95,942
U.S. Treasury and government agencies	29,697				139,200				9,068				26				177,991
Non-U.S. securities	28,561				12,765				7,851				9,399				58,576

Other taxable securities	634				4,550				288				680				6,152

Tax-exempt securities	397				2,382				745				3,451				6,975
Total debt securities carried at fair value	$	59,443			$	182,359			$	35,249			$	68,585			$	345,636
Fair value of HTM debt securities

Agency mortgage-backed securities	$	—			$	1			$	37			$	282,638			$	282,676




U.S. Treasury and government agencies	4,067				101,585				—				—				105,652


Other taxable securities	75				253				169				3,688				4,185


Total fair value of HTM debt securities	$	4,142			$	101,839			$	206			$	286,326			$	392,513

(1)The weighted-average yield is computed based on a constant effective yield over the contractual life of each security. The yield considers the contractual coupon and the amortization of premiums and accretion of discounts, excluding the effect of related open hedging derivatives.


						Bank of America 62

NOTE 5 Outstanding Loans and Leases and Allowance for Credit Losses

The following tables present total outstanding loans and leases and an aging analysis for the Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at September 30, 2026 and December 31, 2025.



	30-59 Days Past Due (1)			60-89 Days Past Due (1)			90 Days or More Past Due (1)			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due (1)			Loans Accounted for Under the Fair Value Option			Total Outstandings
(Dollars in millions)	September 30, 2026
Consumer real estate






Residential mortgage (2)	$	1,438		$	268		$	882		$	2,588		$	233,934					$	236,522
Home equity	75			29			102			206			27,211						27,417
Credit card and other consumer
Credit card	757			520			1,211			2,488			104,854						107,342

Direct/Indirect consumer (3)	265			94			102			461			118,895						119,356
Other consumer	—			—			—			—			156						156
Total consumer	2,535			911			2,297			5,743			485,050						490,793
Consumer loans accounted for under the fair value option (4)																$	156		156
Total consumer loans and leases	2,535			911			2,297			5,743			485,050			156			490,949
Commercial

U.S. commercial	643			598			724			1,965			470,430						472,395
Non-U.S. commercial	23			89			144			256			170,043						170,299
Commercial real estate (5)	111			69			587			767			74,455						75,222
Commercial lease financing	26			10			52			88			15,177						15,265
U.S. small business commercial	217			85			184			486			23,459						23,945
Total commercial	1,020			851			1,691			3,562			753,564						757,126
Commercial loans accounted for under the fair value option (4)																3,185			3,185
Total commercial loans and leases	1,020			851			1,691			3,562			753,564			3,185			760,311
Total loans and leases (6)	$	3,555		$	1,762		$	3,988		$	9,305		$	1,238,614		$	3,341		$	1,251,260
Percentage of outstandings	0.28		%	0.14		%	0.32		%	0.74		%	98.99		%	0.27		%	100.00		%

(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $153 million and nonperforming loans of $171 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $44 million and nonperforming loans of $98 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $218 million and nonperforming loans of $767 million. Consumer real estate loans current or less than 30 days past due includes $1.4 billion, and direct/indirect consumer includes $45 million of nonperforming loans.

(2)Total outstandings includes $6.7 billion in long-term credit protection agreements with U.S. agencies and had a zero credit loss assumption as of the end of the period.

(3)Total outstandings primarily includes auto and specialty lending loans and leases of $50.9 billion, U.S. securities-based lending loans of $64.3 billion and non-U.S. consumer loans of $3.3 billion.

(4)Consumer loans accounted for under the fair value option includes residential mortgage loans of $52 million and home equity loans of $104 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.1 billion and non-U.S. commercial loans of $1.0 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.

(5)Total outstandings includes U.S. commercial real estate loans of $69.0 billion and non-U.S. commercial real estate loans of $6.3 billion.

(6)Total outstandings includes loans and leases of $48.1 billion pledged as collateral to the Federal Home Loan Bank (FHLB). The Corporation also pledged $359.6 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank (FRB) and FHLB.


63 Bank of America



	30-59 Days Past Due (1)			60-89 Days Past Due (1)			90 Days or More Past Due (1)			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due (1)			Loans Accounted for Under the Fair Value Option			Total Outstandings
(Dollars in millions)	December 31, 2025
Consumer real estate






Residential mortgage (2)	$	1,335		$	304		$	774		$	2,413		$	233,889					$	236,302
Home equity	87			33			120			240			26,583						26,823
Credit card and other consumer
Credit card	711			542			1,351			2,604			103,423						106,027

Direct/Indirect consumer (3)	324			114			109			547			113,583						114,130
Other consumer	—			—			—			—			144						144
Total consumer	2,457			993			2,354			5,804			477,622						483,426
Consumer loans accounted for under the fair value option (4)																$	165		165
Total consumer loans and leases	2,457			993			2,354			5,804			477,622			165			483,591
Commercial

U.S. commercial	743			228			702			1,673			434,569						436,242
Non-U.S. commercial	78			10			59			147			154,898						155,045
Commercial real estate (5)	190			41			909			1,140			67,608						68,748
Commercial lease financing	67			17			75			159			16,082						16,241
U.S. small business commercial	228			96			211			535			21,965						22,500
Total commercial	1,306			392			1,956			3,654			695,122						698,776
Commercial loans accounted for under the fair value option (4)																3,333			3,333
Total commercial loans and leases	1,306			392			1,956			3,654			695,122			3,333			702,109


Total loans and leases (6)	$	3,763		$	1,385		$	4,310		$	9,458		$	1,172,744		$	3,498		$	1,185,700
Percentage of outstandings	0.32		%	0.12		%	0.36		%	0.80		%	98.91		%	0.29		%	100.00		%

(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $179 million and nonperforming loans of $164 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $63 million and nonperforming loans of $105 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $207 million and nonperforming loans of $687 million. Consumer real estate loans current or less than 30 days past due includes $1.4 billion, and direct/indirect consumer includes $45 million of nonperforming loans.

(2)Total outstandings includes $7.2 billion in long-term credit protection agreements with U.S. agencies and had a zero credit loss assumption as of the end of the period.

(3)Total outstandings primarily includes auto and specialty lending loans and leases of $55.3 billion, U.S. securities-based lending loans of $55.0 billion and non-U.S. consumer loans of $3.0 billion.

(4)Consumer loans accounted for under the fair value option includes residential mortgage loans of $58 million and home equity loans of $107 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.1 billion and non-U.S. commercial loans of $1.2 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.

(5)Total outstandings includes U.S. commercial real estate loans of $62.7 billion and non-U.S. commercial real estate loans of $6.0 billion.

(6)Total outstandings includes loans and leases of $39.5 billion pledged as collateral to the FHLB. The Corporation also pledged $313.7 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the FRB and FHLB.

Nonperforming Loans and Leases

Nonperforming loans were $5.5 billion and $5.8 billion at September 30, 2026 and December 31, 2025. Commercial nonperforming loans were $2.9 billion and $3.2 billion at September 30, 2026 and December 31, 2025, primarily comprised of U.S. commercial and commercial real estate. Consumer nonperforming loans of $2.6 billion at both September 30, 2026 and December 31, 2025 were primarily comprised of residential mortgages.

The following table presents the Corporation’s nonperforming loans and leases and loans accruing past due 90 days or more at September 30, 2026 and December 31, 2025. Nonperforming loans held-for-sale (LHFS) are excluded from nonperforming loans and leases, as they are recorded at either fair value or the lower of cost or fair value. For more information on the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.


						Bank of America 64



Credit Quality


	Nonperforming Loans and Leases						Accruing Past Due 90 Days or More

(Dollars in millions)	September 30 2026			December 31 2025			September 30 2026			December 31 2025
Residential mortgage (1)	$	2,076		$	2,008		$	218		$	207
With no related allowance (2)	1,830			1,774			—			—
Home equity (1)	366			392			—			—
With no related allowance (2)	290			310			—			—
Credit Card	n/a			n/a			1,211			1,351
Direct/indirect consumer	168			176			2			5

Total consumer	2,610			2,576			1,431			1,563
U.S. commercial	1,702			1,404			225			302
Non-U.S. commercial	249			80			15			9
Commercial real estate	888			1,596			40			10
Commercial lease financing	59			97			18			33
U.S. small business commercial	36			51			175			204
Total commercial	2,934			3,228			473			558
Total nonperforming loans	$	5,544		$	5,804		$	1,904		$	2,121
Percentage of outstanding loans and leases	0.44		%	0.49		%	0.15		%	0.18		%

(1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At September 30, 2026 and December 31, 2025 residential mortgage included $123 million and $104 million of loans on which interest had been curtailed by the Federal Housing Administration (FHA), and therefore were no longer accruing interest, although principal was still insured, and $95 million and $103 million of loans on which interest was still accruing.

(2)Primarily relates to loans for which the estimated fair value of the underlying collateral less any costs to sell is greater than the amortized cost of the loans as of the reporting date.

n/a = not applicable

Credit Quality Indicators

The Corporation monitors credit quality within its Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments based on primary credit quality indicators. For more information on the portfolio segments, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. Within the Consumer Real Estate portfolio segment, the primary credit quality indicators are refreshed loan-to-value (LTV) and refreshed Fair Isaac Corporation (FICO) score. Refreshed LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan, refreshed quarterly. Home equity loans are evaluated using combined loan-to-value (CLTV), which measures the carrying value of the Corporation’s loan and available line of credit combined with any outstanding senior liens against the property as a percentage of the value of the property securing the loan, refreshed quarterly. FICO score measures the creditworthiness of the borrower based on the financial obligations of the borrower and the borrower’s credit history. FICO scores are typically refreshed quarterly or more frequently. Certain borrowers (e.g., borrowers that have had debts discharged in a bankruptcy proceeding) may not have their FICO scores updated.

FICO scores are also a primary credit quality indicator for the Credit Card and Other Consumer portfolio segment and the business card portfolio within U.S. small business commercial. Within the Commercial portfolio segment, loans are evaluated using the internal classifications of pass rated or reservable criticized as the primary credit quality indicators. The term reservable criticized refers to those commercial loans that are internally classified or listed by the Corporation as Special Mention, Substandard or Doubtful, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not considered reservable criticized. In addition to these primary credit quality indicators, the Corporation uses other credit quality indicators for certain types of loans.

The following tables present certain credit quality indicators and gross charge-offs for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by year of origination, except for revolving loans and revolving loans that were modified into term loans, which are shown on an aggregate basis at September 30, 2026.


65 Bank of America



Residential Mortgage – Credit Quality Indicators By Vintage

















			Term Loans by Origination Year
(Dollars in millions)	Total as of September 30, 2026		2026		2025		2024		2023		2022		Prior
Residential Mortgage
Refreshed LTV
Less than or equal to 90 percent	$	224,631	$	17,810	$	18,994	$	12,954	$	12,107	$	34,239	$	128,527
Greater than 90 percent but less than or equal to 100 percent	2,284		407		669		539		267		277		125
Greater than 100 percent	1,170		350		323		217		93		101		86
Fully-insured loans	8,437		—		98		160		134		222		7,823
Total Residential Mortgage	$	236,522	$	18,567	$	20,084	$	13,870	$	12,601	$	34,839	$	136,561

Residential Mortgage
Refreshed FICO score
Less than 620	$	3,149	$	99	$	160	$	175	$	169	$	389	$	2,157
Greater than or equal to 620 and less than 660	2,472		139		175		185		148		367		1,458
Greater than or equal to 660 and less than 740	24,781		1,742		2,200		1,492		1,448		3,860		14,039
Greater than or equal to 740	197,683		16,587		17,451		11,858		10,702		30,001		111,084
Fully-insured loans	8,437		—		98		160		134		222		7,823
Total Residential Mortgage	$	236,522	$	18,567	$	20,084	$	13,870	$	12,601	$	34,839	$	136,561


Gross charge-offs for the nine months ended September 30, 2026	$	25	$	—	$	2	$	7	$	5	$	4	$	7



Home Equity - Credit Quality Indicators

	Total		Home Equity Loans and Reverse Mortgages (1)		Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	September 30, 2026
Home Equity
Refreshed LTV
Less than or equal to 90 percent	$	27,280	$	611	$	23,604	$	3,065
Greater than 90 percent but less than or equal to 100 percent	71		2		65		4
Greater than 100 percent	66		4		55		7
Total Home Equity	$	27,417	$	617	$	23,724	$	3,076

Home Equity
Refreshed FICO score
Less than 620	$	706	$	63	$	429	$	214
Greater than or equal to 620 and less than 660	571		40		376		155
Greater than or equal to 660 and less than 740	5,031		140		4,127		764
Greater than or equal to 740	21,109		374		18,792		1,943
Total Home Equity	$	27,417	$	617	$	23,724	$	3,076

Gross charge-offs for the nine months ended September 30, 2026	$	23	$	1	$	13	$	9

(1)Includes reverse mortgages of $409 million and home equity loans of $208 million, which are no longer originated.



Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage










	Direct/Indirect
					Term Loans by Origination Year												Credit Card
(Dollars in millions)	Total Direct/ Indirect as of September 30, 2026		Revolving Loans		2026		2025		2024		2023		2022		Prior		Total Credit Card as of September 30, 2026		Revolving Loans		Revolving Loans Converted to Term Loans (1)
Refreshed FICO score
Less than 620	$	1,437	$	6	$	165	$	362	$	333	$	284	$	201	$	86	$	6,075	$	5,680	$	395
Greater than or equal to 620 and less than 660	1,215		2		254		345		252		177		122		63		6,075		5,803		272
Greater than or equal to 660 and less than 740	8,446		25		2,387		2,668		1,538		899		597		332		41,734		41,168		566
Greater than or equal to 740	39,855		34		10,580		13,251		7,987		3,870		2,484		1,649		53,458		53,361		97
Other internal credit metrics (2,3)	68,403		67,624		207		194		47		34		65		232		—		—		—
Total credit card and other consumer	$	119,356	$	67,691	$	13,593	$	16,820	$	10,157	$	5,264	$	3,469	$	2,362	$	107,342	$	106,012	$	1,330


Gross charge-offs for the nine months ended September 30, 2026	$	283	$	3	$	21	$	105	$	52	$	46	$	28	$	28	$	3,391	$	3,265	$	126

(1)Represents loans that were modified into term loans.

(2)Other internal credit metrics may include delinquency status, geography or other factors.

(3)Direct/indirect consumer includes $67.6 billion of securities-based lending, which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at September 30, 2026.


						Bank of America 66



Commercial – Credit Quality Indicators By Vintage (1)
			Term Loans
			Amortized Cost Basis by Origination Year

(Dollars in millions)	Total as of September 30, 2026		2026		2025		2024		2023		2022		Prior		Revolving Loans
U.S. Commercial
Risk ratings
Pass rated	$	462,151	$	44,734	$	47,835	$	32,939	$	19,882	$	23,177	$	46,324	$	247,260
Reservable criticized	10,244		93		284		1,023		951		701		1,952		5,240
Total U.S. Commercial	$	472,395	$	44,827	$	48,119	$	33,962	$	20,833	$	23,878	$	48,276	$	252,500
Gross charge-offs for the nine months ended September 30, 2026	$	427	$	2	$	15	$	20	$	14	$	31	$	66	$	279

Non-U.S. Commercial
Risk ratings
Pass rated	$	167,920	$	22,885	$	20,641	$	15,968	$	7,799	$	7,445	$	11,617	$	81,565
Reservable criticized	2,379		7		233		169		383		108		141		1,338
Total Non-U.S. Commercial	$	170,299	$	22,892	$	20,874	$	16,137	$	8,182	$	7,553	$	11,758	$	82,903
Gross charge-offs for the nine months ended September 30, 2026	$	98	$	—	$	14	$	—	$	7	$	18	$	10	$	49

Commercial Real Estate
Risk ratings
Pass rated	$	70,196	$	12,010	$	11,629	$	5,072	$	3,327	$	7,004	$	18,461	$	12,693
Reservable criticized	5,026		16		93		164		135		1,234		2,956		428
Total Commercial Real Estate	$	75,222	$	12,026	$	11,722	$	5,236	$	3,462	$	8,238	$	21,417	$	13,121
Gross charge-offs for the nine months ended September 30, 2026	$	201	$	—	$	—	$	—	$	—	$	2	$	199	$	—

Commercial Lease Financing
Risk ratings
Pass rated	$	14,723	$	2,245	$	3,530	$	2,835	$	2,322	$	1,373	$	2,418	$	—
Reservable criticized	542		2		27		112		127		177		97		—
Total Commercial Lease Financing	$	15,265	$	2,247	$	3,557	$	2,947	$	2,449	$	1,550	$	2,515	$	—
Gross charge-offs for the nine months ended September 30, 2026	$	15	$	—	$	1	$	3	$	6	$	4	$	1	$	—

U.S. Small Business Commercial (2)
Risk ratings
Pass rated	$	11,722	$	1,581	$	2,423	$	1,764	$	1,531	$	1,327	$	2,238	$	858
Reservable criticized	602		4		80		141		149		86		136		6
Total U.S. Small Business Commercial	$	12,324	$	1,585	$	2,503	$	1,905	$	1,680	$	1,413	$	2,374	$	864
Gross charge-offs for the nine months ended September 30, 2026	$	30	$	—	$	3	$	1	$	4	$	4	$	5	$	13

Total	$	745,505	$	83,577	$	86,775	$	60,187	$	36,606	$	42,632	$	86,340	$	349,388

Gross charge-offs for the nine months ended September 30, 2026	$	771	$	2	$	33	$	24	$	31	$	59	$	281	$	341

(1)Excludes $3.2 billion of loans accounted for under the fair value option at September 30, 2026.

(2)Excludes U.S. Small Business Card loans of $11.6 billion. Refreshed FICO scores for this portfolio are $826 million for less than 620; $716 million for greater than or equal to 620 and less than 660; $3.7 billion for greater than or equal to 660 and less than 740; and $6.4 billion for greater than or equal to 740. Excludes U.S. Small Business Card loans gross charge-offs of $421 million.


67 Bank of America

The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by year of origination, except for revolving loans and revolving loans that were modified into term loans, which are shown on an aggregate basis at December 31, 2025.



Residential Mortgage – Credit Quality Indicators By Vintage




































			Term Loans by Origination Year
(Dollars in millions)	Total as of December 31, 2025		2025		2024		2023		2022		2021		Prior
Residential Mortgage
Refreshed LTV
Less than or equal to 90 percent	$	223,761	$	22,998	$	14,267	$	12,431	$	37,042	$	69,829	$	67,194
Greater than 90 percent but less than or equal to 100 percent	2,318		737		644		375		405		94		63
Greater than 100 percent	1,147		453		341		126		137		50		40
Fully-insured loans	9,076		157		198		167		277		2,890		5,387
Total Residential Mortgage	$	236,302	$	24,345	$	15,450	$	13,099	$	37,861	$	72,863	$	72,684

Residential Mortgage
Refreshed FICO score
Less than 620	$	3,076	$	197	$	242	$	193	$	533	$	724	$	1,187
Greater than or equal to 620 and less than 660	2,277		192		150		143		408		540		844
Greater than or equal to 660 and less than 740	25,065		2,488		1,854		1,507		4,253		6,668		8,295
Greater than or equal to 740	196,808		21,311		13,006		11,089		32,390		62,041		56,971
Fully-insured loans	9,076		157		198		167		277		2,890		5,387
Total Residential Mortgage	$	236,302	$	24,345	$	15,450	$	13,099	$	37,861	$	72,863	$	72,684
Gross charge-offs for the year ended December 31, 2025	$	24	$	—	$	4	$	6	$	6	$	2	$	6



Home Equity - Credit Quality Indicators

		Total		Home Equity Loans and Reverse Mortgages (1)		Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	December 31, 2025
Home Equity
Refreshed LTV
Less than or equal to 90 percent		$	26,686	$	687	$	22,909	$	3,090
Greater than 90 percent but less than or equal to 100 percent		70		3		63		4
Greater than 100 percent		67		7		51		9
Total Home Equity		$	26,823	$	697	$	23,023	$	3,103

Home Equity
Refreshed FICO score
Less than 620		$	701	$	67	$	399	$	235
Greater than or equal to 620 and less than 660		595		44		375		176
Greater than or equal to 660 and less than 740		5,036		173		4,057		806
Greater than or equal to 740		20,491		413		18,192		1,886
Total Home Equity		$	26,823	$	697	$	23,023	$	3,103
Gross charge-offs for the year ended December 31, 2025		$	16	$	—	$	10	$	6

(1)Includes reverse mortgages of $457 million and home equity loans of $240 million, which are no longer originated.


						Bank of America 68



Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage





















	Direct/Indirect
					Term Loans by Origination Year												Credit Card
(Dollars in millions)	Total Direct/Indirect as of December 31, 2025		Revolving Loans		2025		2024		2023		2022		2021		Prior		Total Credit Card as of December 31, 2025		Revolving Loans		Revolving Loans Converted to Term Loans (1)
Refreshed FICO score
Less than 620	$	1,560	$	8	$	274	$	386	$	404	$	306	$	141	$	41	$	6,255	$	5,872	$	383
Greater than or equal to 620 and less than 660	1,251		4		352		327		266		186		85		31		5,883		5,640		243
Greater than or equal to 660 and less than 740	9,117		37		3,739		2,236		1,491		986		439		189		41,176		40,679		497
Greater than or equal to 740	43,475		49		18,136		11,534		6,744		4,107		1,865		1,040		52,713		52,632		81
Other internal credit metrics (2, 3)	58,727		57,999		222		66		31		174		39		196		—		—		—
Total credit card and other consumer	$	114,130	$	58,097	$	22,723	$	14,549	$	8,936	$	5,759	$	2,569	$	1,497	$	106,027	$	104,823	$	1,204
Gross charge-offs for the year ended December 31, 2025	$	373	$	6	$	44	$	110	$	92	$	64	$	26	$	31	$	4,498	$	4,338	$	160

(1)Represents loans that were modified into term loans.

(2)Other internal credit metrics may include delinquency status, geography or other factors.

(3)Direct/indirect consumer includes $58.0 billion of securities-based lending, which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at December 31, 2025.



Commercial – Credit Quality Indicators By Vintage (1)
			Term Loans
			Amortized Cost Basis by Origination Year

(Dollars in millions)	Total as of December 31, 2025		2025		2024		2023		2022		2021		Prior		Revolving Loans
U.S. Commercial
Risk ratings
Pass rated	$	424,708	$	61,845	$	39,127	$	23,611	$	26,931	$	16,001	$	36,627	$	220,566
Reservable criticized	11,534		164		772		965		946		611		2,091		5,985
Total U.S. Commercial	$	436,242	$	62,009	$	39,899	$	24,576	$	27,877	$	16,612	$	38,718	$	226,551
Gross charge-offs for the year ended December 31, 2025	$	536	$	3	$	13	$	35	$	101	$	12	$	34	$	338

Non-U.S. Commercial
Risk ratings
Pass rated	$	152,364	$	25,753	$	21,446	$	9,613	$	8,612	$	9,223	$	6,066	$	71,651
Reservable criticized	2,681		120		117		478		311		63		114		1,478
Total Non-U.S. Commercial	$	155,045	$	25,873	$	21,563	$	10,091	$	8,923	$	9,286	$	6,180	$	73,129
Gross charge-offs for the year ended December 31, 2025	$	33	$	—	$	—	$	7	$	—	$	8	$	—	$	18

Commercial Real Estate
Risk ratings
Pass rated	$	60,435	$	11,693	$	5,607	$	4,418	$	8,136	$	6,175	$	13,796	$	10,610
Reservable criticized	8,313		5		249		366		2,294		1,986		2,874		539
Total Commercial Real Estate	$	68,748	$	11,698	$	5,856	$	4,784	$	10,430	$	8,161	$	16,670	$	11,149
Gross charge-offs for the year ended December 31, 2025	$	520	$	—	$	—	$	—	$	56	$	102	$	360	$	2

Commercial Lease Financing
Risk ratings
Pass rated	$	15,770	$	3,916	$	3,142	$	2,763	$	1,847	$	1,625	$	2,477	$	—
Reservable criticized	471		13		91		131		119		36		81		—
Total Commercial Lease Financing	$	16,241	$	3,929	$	3,233	$	2,894	$	1,966	$	1,661	$	2,558	$	—
Gross charge-offs for the year ended December 31, 2025	$	8	$	—	$	2	$	3	$	2	$	1	$	—	$	—

U.S. Small Business Commercial (2)
Risk ratings
Pass rated	$	11,001	$	2,368	$	1,908	$	1,657	$	1,471	$	1,131	$	1,670	$	796
Reservable criticized	559		14		100		174		95		76		92		8
Total U.S. Small Business Commercial	$	11,560	$	2,382	$	2,008	$	1,831	$	1,566	$	1,207	$	1,762	$	804
Gross charge-offs for the year ended December 31, 2025	$	32	$	—	$	1	$	2	$	3	$	2	$	6	$	18

Total	$	687,836	$	105,891	$	72,559	$	44,176	$	50,762	$	36,927	$	65,888	$	311,633
Gross charge-offs for the year ended December 31, 2025	$	1,129	$	3	$	16	$	47	$	162	$	125	$	400	$	376

(1)Excludes $3.3 billion of loans accounted for under the fair value option at December 31, 2025.

(2)Excludes U.S. Small Business Card loans of $10.9 billion. Refreshed FICO scores for this portfolio are $785 million for less than 620; $651 million for greater than or equal to 620 and less than 660; $3.6 billion for greater than or equal to 660 and less than 740; and $5.9 billion greater than or equal to 740. Excludes U.S. Small Business Card loans gross charge-offs of $555 million.


69 Bank of America

During the nine months ended September 30, 2026, commercial reservable criticized utilized exposure decreased to $19.9 billion at September 30, 2026 from $24.7 billion (to 2.49 percent from 3.37 percent of total commercial reservable utilized exposure) at December 31, 2025, primarily driven by commercial real estate and U.S. commercial.

Loan Modifications to Borrowers in Financial Difficulty

As part of its credit risk management, the Corporation may modify a loan agreement with a borrower experiencing financial difficulties through a refinancing or restructuring of the borrower’s loan agreement (modification programs).

Consumer Real Estate

The following modification programs are offered for consumer real estate loans to borrowers experiencing financial difficulties.

Forbearance and Other Payment Plans: Forbearance plans generally consist of the Corporation suspending the borrower’s payments for a defined period, with those payments then due over a defined period of time or at the conclusion of the forbearance period. The aging status of a loan is generally frozen when it enters into a forbearance plan. If a borrower is unable to fulfill their obligations under the forbearance plans, they may be offered a trial offer or permanent modification.

Trial Offer and Permanent Modifications: Trial offer for modification plans generally consist of the Corporation offering a borrower modified loan terms that reduce their contractual payments temporarily over a three-to-four-month trial period. If the customer successfully makes the modified payments during the trial period and formally accepts the modified terms, the modified loan terms become permanent. Some borrowers may enter into permanent modifications without a trial period. In a permanent modification, the borrower’s payment terms are typically modified in more than one manner, but generally include a term extension and an interest rate reduction. At times, the permanent modification may also include principal forgiveness and/or a deferral of past due principal and interest amounts to the end of the loan term. The combinations utilized are based on modifying the terms that give the borrower an improved ability to meet the contractual obligations. The term extensions granted for residential mortgage and home equity permanent modifications vary widely and can be up to 30 years, but most are in the range of 1 to 20 years. Principal forgiveness and payment deferrals were insignificant during the three and nine months ended September 30, 2026 and 2025.

The table below provides the ending amortized cost of the Corporation’s consumer real estate loans modified during the three and nine months ended September 30, 2026 and 2025.



Consumer Real Estate - Modifications to Borrowers in Financial Difficulty

	Forbearance and Other Payment Plans (1)		Permanent Modification		Total		As a % of Financing Receivables		Forbearance and Other Payment Plans (1)		Permanent Modification		Total		As a % of Financing Receivables
(Dollars in millions)	Three Months Ended September 30, 2026						Nine Months Ended September 30, 2026
Residential Loans	$	108	$	58	$	166	0.07	%	$	149	$	149	$	298	0.13	%
Home Equity	—		4		4		0.01		2		11		13		0.05
Total	$	108	$	62	$	170	0.06		$	151	$	160	$	311	0.12

	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
Residential Loans	$	4	$	36	$	40	0.02	%	$	20	$	129	$	149	0.06	%
Home Equity	—		3		3		0.01		—		15		15		0.06
Total	$	4	$	39	$	43	0.02		$	20	$	144	$	164	0.06

(1)Limited to those modifications that had an other-than-insignificant delay in payment, including extended residential mortgage relief provided to borrowers for their home rebuilding efforts following the 2025 California wildfires.

The table below presents the financial effect of modified consumer real estate loans.



Financial Effect of Modified Consumer Real Estate Loans

	Three Months Ended September 30				Nine Months Ended September 30
	2026		2025		2026		2025
Forbearance and Other Payment Plans
Weighted-average duration
Residential Mortgage	4 months		6 months		10 months		6 months
Home Equity	n/m		n/m		n/m		n/m



Permanent Modifications
Weighted-average Term Extension
Residential Mortgage	11.0 years		10.9 years		10.4 years		9.8 years
Home Equity	4.6 years		18.6 years		5.5 years		17.5 years
Weighted-average Interest Rate Reduction
Residential Mortgage	1.68	%	1.11	%	1.60	%	1.20	%
Home Equity	2.30	%	2.05	%	2.63	%	2.19	%

n/m = not meaningful

For consumer real estate borrowers in financial difficulty that received a forbearance, trial or permanent modification, commitments to lend additional funds were not significant at September 30, 2026 and 2025.


						Bank of America 70

The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. If a forbearance plan results in an other‑than‑insignificant payment delay, whether at inception or due to a subsequent extension, the loan’s payment status is based on the original contractual terms. During the three and nine months ended September 30,

2026 and 2025, defaults of residential and home equity loans that had been modified within 12 months were insignificant. The table below provides aging information as of September 30, 2026 and 2025 for consumer real estate loans that were modified over the last 12 months.



Consumer Real Estate - Payment Status of Modifications to Borrowers in Financial Difficulty

	Current		30–89 Days Past Due		90+ Days Past Due		Total
(Dollars in millions)	September 30, 2026
Residential mortgage	$	167	$	59	$	125	$	351
Home equity	14		1		3		18
Total	$	181	$	60	$	128	$	369

	September 30, 2025
Residential mortgage	$	94	$	42	$	43	$	179
Home equity	19		2		—		21
Total	$	113	$	44	$	43	$	200

Consumer real estate foreclosed properties totaled $52 million and $58 million at September 30, 2026 and December 31, 2025. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at September 30, 2026 and December 31, 2025, was $380 million and $411 million. During the nine months ended September 30, 2026 and 2025, the Corporation reclassified $29 million and $42 million of consumer real estate loans to foreclosed properties or, for properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans), to other assets. The reclassifications represent non-cash investing activities and, accordingly, are not reflected in the Consolidated Statement of Cash Flows.

Credit Card and Other Consumer

Credit card and other consumer loans are primarily modified by placing the customer on a fixed payment plan with a significantly reduced fixed interest rate, with terms ranging from 6 months to 72 months, most of which had a 60-month term at September 30, 2026. In certain circumstances, the Corporation will forgive a portion of the outstanding balance if the borrower makes payments up to a set amount. The Corporation makes modifications directly with borrowers for loans held by the Corporation (internal programs) as well as through third-party renegotiation agencies that provide solutions to customers’ entire unsecured debt structures (external programs). The September 30, 2026 amortized cost of credit card and other consumer loans that were modified through these programs during the three and nine months ended September 30, 2026 was $265 million and $629 million compared to $235 million and $560 million for same periods in 2025. These modifications represented 0.12 percent and 0.28 percent of outstanding credit card and other consumer loans for the three and nine months ended September 30, 2026 compared to 0.11 percent and 0.27 percent for the same periods in 2025. During the three and nine months ended September 30, 2026 and 2025, the financial effect of modifications resulted in a weighted-average interest rate reduction of approximately 18

percentage points for all periods. During the three and nine months ended September 30, 2026, the financial effect of modifications resulted in principal forgiveness of $31 million and $85 million compared to $25 million and $76 million for the same periods in 2025.

The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. As of September 30, 2026 and 2025, defaults of credit card and other consumer loans that had been modified within 12 months were not significant. At September 30, 2026, modified credit card and other consumer loans to borrowers experiencing financial difficulty over the last 12 months totaled $760 million, of which $652 million were current, $63 million were 30-89 days past due, and $45 million were greater than 90 days past due. At September 30, 2025, modified credit card and other consumer loans to borrowers experiencing financial difficulty totaled $675 million, of which $573 million were current, $58 million were 30-89 days past due, and $44 million were greater than 90 days past due.

Commercial Loans

Modifications of loans to commercial borrowers experiencing financial difficulty are designed to reduce the Corporation’s loss exposure while providing borrowers with an opportunity to work through financial difficulties, often to avoid foreclosure or bankruptcy. Each modification is unique, reflects the borrower’s individual circumstances and is designed to benefit the borrower while mitigating the Corporation’s risk exposure. Commercial modifications are primarily term extensions and payment forbearances. Payment forbearances involve the Corporation forbearing its contractual right to collect certain payments or payment in full (maturity forbearance) for a defined period of time. Reductions in interest rates and principal forgiveness occur infrequently for commercial borrowers. Principal forgiveness may occur in connection with foreclosure, short sales or other settlement agreements, leading to termination or sale of the loan. The following table provides the ending amortized cost of commercial loans modified during the three and nine months ended September 30, 2026 and 2025.


71 Bank of America



Commercial Loans - Modifications to Borrowers in Financial Difficulty


	Term Extension		Forbearances		Interest Rate Reduction		Total		As a % of Financing Receivables		Term Extension		Forbearances		Interest Rate Reduction		Total		As a % of Financing Receivables
(Dollars in millions)	Three Months Ended September 30, 2026						Nine Months Ended September 30, 2026
U.S. commercial	$	431	$	35	$	56	$	522	0.11	%	$	1,735	$	47	$	56	$	1,838	0.39	%
Non-U.S. commercial	65		—		—		65		0.04		125		8		—		133		0.08
Commercial real estate	610		283		—		893		1.19		932		384		—		1,316		1.75


Total	$	1,106	$	318	$	56	$	1,480	0.21		$	2,792	$	439	$	56	$	3,287	0.46

	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
U.S. commercial	$	759	$	13	$	—	$	772	0.18	%	$	1,230	$	54	$	—	$	1,284	0.30	%
Non-U.S. commercial	1		—		—		1		—		4		9		—		13		0.01
Commercial real estate	539		154		—		693		1.03		1,579		371		—		1,950		2.91
Total	$	1,299	$	167	$	—	$	1,466	0.23		$	2,813	$	434	$	—	$	3,247	0.50

Term extensions granted increased the weighted-average life of the impacted loans by 1.7 years and 2.4 years for the three and nine months ended September 30, 2026 compared to 1.0 year and 1.4 years for the same periods in 2025. The weighted-average duration of loan payments deferred under the Corporation’s commercial loan forbearance program was 1.8 years and 1.6 years for the three and nine months ended September 30, 2026 compared to 1.4 years and 1.1 years for the same periods in 2025. The deferral period for loan payments can vary, but are mostly in the range of 8 months to 2 years. Modifications of loans to troubled borrowers for Commercial Lease Financing and U.S. Small Business

Commercial were not significant during the three and nine months ended September 30, 2026 and 2025.

The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. As of September 30, 2026, defaults of commercial loans that had been modified within 12 months were $243 million. As of September 30, 2025, defaults of commercial loans that had been modified within the last 12 months were not significant. The table below provides aging information as of September 30, 2026 and 2025 for commercial loans that were modified over the last 12 months.



Commercial - Payment Status of Modified Loans to Borrowers in Financial Difficulty


	Current		30–89 Days Past Due		90+ Days Past Due		Total
(Dollars in millions)	September 30, 2026
U.S. Commercial	$	2,093	$	12	$	157	$	2,262
Non-U.S. Commercial	133		—		—		133


Commercial Real Estate	929		—		392		1,321
Total	$	3,155	$	12	$	549	$	3,716


	September 30, 2025
U.S. Commercial	$	1,431	$	82	$	22	$	1,535
Non-U.S. Commercial	44		—		—		44
Commercial Real Estate	2,552		104		151		2,807
Total	$	4,027	$	186	$	173	$	4,386

For the nine months ended September 30, 2026 and 2025, the Corporation had commitments to lend $2.2 billion and $658 million to commercial borrowers experiencing financial difficulty whose loans were modified during the period.

Loans Held-for-sale

The Corporation had LHFS of $8.1 billion and $5.2 billion at September 30, 2026 and December 31, 2025. Cash and non-cash proceeds from sales and paydowns of loans originally classified as LHFS were $27.0 billion for both the nine months ended September 30, 2026 and 2025. Cash used for originations and purchases of LHFS totaled $29.9 billion and $23.4 billion for the nine months ended September 30, 2026 and 2025. For the nine months ended September 30, 2026 and 2025, non-cash net transfers into LHFS were not significant.

Accrued Interest Receivable

Accrued interest receivable for loans and leases and LHFS was $4.3 billion and $4.2 billion at September 30, 2026 and December 31, 2025 and is reported in customer and other receivables on the Consolidated Balance Sheet.

Outstanding credit card loan balances include unpaid principal, interest and fees. Credit card loans are not classified as nonperforming but are charged off no later than the end of the month in which the account becomes 180 days past due, within 60 days after receipt of notification of death or bankruptcy, or upon confirmation of fraud. During the three and nine months ended September 30, 2026, the Corporation reversed $200 million and $638 million of interest and fee income against the income statement line item in which it was originally recorded upon charge-off of the principal balance of the loan compared to $209 million and $658 million for the same periods in 2025.


						Bank of America 72

For the outstanding residential mortgage, home equity, direct/indirect consumer and commercial loan balances classified as nonperforming during the three and nine months ended September 30, 2026 and 2025, interest and fee income reversed at the time the loans were classified as nonperforming was not significant. For more information on the Corporation's nonperforming loan policies, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

Allowance for Credit Losses

The allowance for credit losses is estimated using quantitative and qualitative methods that consider a variety of factors, such as historical loss experience, the current credit quality of the portfolio and an economic outlook over the life of the loan. Qualitative reserves cover losses that are expected but, in the Corporation's assessment, may not adequately be reflected in the quantitative methods or the economic assumptions. The economic outlook is a significant factor and incorporates forward-looking information through the use of several macroeconomic scenarios in determining the weighted economic outlook over the forecasted life of the assets. These scenarios include key macroeconomic variables such as gross domestic product, unemployment rate, real estate prices and corporate bond spreads. The scenarios that are chosen each quarter and the weighting given to each scenario depend on a variety of factors including recent economic events, leading economic indicators, internal and third-party economist views, and industry trends. For more information on the Corporation's credit loss accounting policies including the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

The September 30, 2026 estimate for allowance for credit losses was based on various economic scenarios, including a baseline scenario derived from consensus estimates, an adverse scenario reflecting an extended 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. When compared to the consensus baseline scenario noted above, the Corporation’s weighted economic outlook remains weighted to the downside and moderately weaker than the consensus baseline as of September 30, 2026, consistent with the Corporation’s weighted economic outlook estimated as of December 31, 2025. The weighted economic outlook assumes that the U.S. average unemployment rate will be approximately five percent in the fourth quarter of 2027 and will remain near

this level through the fourth quarter of 2028. It also assumes U.S. real gross domestic product will grow at 1.7 percent and 1.9 percent year-over-year in the fourth quarters of 2027 and 2028.

The allowance for credit losses decreased $196 million from December 31, 2025 to $14.2 billion at September 30, 2026. The decrease in the allowance for credit losses was driven by continued improvement in credit card and commercial real estate, partially offset by loan growth and a qualitative reserve build related to uncertainties associated with the ongoing conflicts in the Middle East. The change in the allowance for credit losses was comprised of a net decrease of $198 million in the allowance for loan and lease losses and an increase of $2 million in the reserve for unfunded lending commitments. The decrease in the allowance for credit losses was attributed to a decrease in the credit card and other consumer portfolios of $235 million, partially offset by an increase in the commercial portfolio of $4 million and the consumer real estate portfolio of $35 million.

The provision for credit losses decreased $26 million to $1.3 billion, and $395 million to $4.0 billion for the three and nine months ended September 30, 2026 compared to the same periods in 2025. The decrease for the three-month period was attributed to a decrease in commercial of $90 million due to improved asset quality, partially offset by an increase in consumer of $64 million primarily driven by credit card, as the favorable impact of improved asset quality was lower in the three months ended September 30, 2026 compared to the same period in 2025. The decrease for the nine-month period was attributed to a decrease in consumer of $148 million and a decrease in commercial of $247 million. The decrease in consumer was primarily driven by improved asset quality within the credit card portfolio. The decrease in commercial was primarily due to improved asset quality in the commercial real estate portfolio, partially offset by loan growth in the commercial and industrial portfolio and a qualitative reserve build related to uncertainties associated with the ongoing conflicts in the Middle East.

Net charge-offs for the three and nine months ended September 30, 2026 were $1.3 billion and $4.2 billion compared to $1.4 billion and $4.3 billion for the same periods in 2025. The decrease of $174 million for the nine months ended September 30, 2026 compared to the same period in 2025 was driven by asset quality improvement in commercial real estate and credit card.

The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the following table.


73 Bank of America



	Consumer Real Estate		Credit Card and Other Consumer		Commercial		Total
(Dollars in millions)	Three Months Ended September 30, 2026


Allowance for loan and lease losses, July 1	$	441	$	7,805	$	4,868	$	13,114
Loans and leases charged off	(16)		(1,274)		(377)		(1,667)
Recoveries of loans and leases previously charged off	21		272		25		318
Net charge-offs	5		(1,002)		(352)		(1,349)

Provision for loan and lease losses	(4)		925		319		1,240
Other	(1)		1		—		—
Allowance for loan and lease losses, September 30	441		7,729		4,835		13,005
Reserve for unfunded lending commitments, July 1	70		—		1,080		1,150
Provision for unfunded lending commitments	2		—		27		29

Reserve for unfunded lending commitments, September 30	72		—		1,107		1,179
Allowance for credit losses, September 30	$	513	$	7,729	$	5,942	$	14,184

	Three Months Ended September 30, 2025


Allowance for loan and lease losses, July 1	$	346	$	8,232	$	4,713	$	13,291
Loans and leases charged off	(9)		(1,230)		(462)		(1,701)
Recoveries of loans and leases previously charged off	21		240		73		334
Net charge-offs	12		(990)		(389)		(1,367)

Provision for loan and lease losses	50		803		475		1,328
Other	—		(1)		1		—
Allowance for loan and lease losses, September 30	408		8,044		4,800		13,252


Reserve for unfunded lending commitments, July 1	58		—		1,085		1,143
Provision for unfunded lending commitments	6		—		(39)		(33)
Other	—		—		(1)		(1)
Reserve for unfunded lending commitments, September 30	64		—		1,045		1,109
Allowance for credit losses, September 30	$	472	$	8,044	$	5,845	$	14,361

(Dollars in millions)	Nine Months Ended September 30, 2026


Allowance for loan and lease losses, January 1	$	416	$	7,964	$	4,823	$	13,203
Loans and leases charged off	(48)		(3,904)		(1,192)		(5,144)
Recoveries of loans and leases previously charged off	60		796		118		974
Net charge-offs	12		(3,108)		(1,074)		(4,170)
Provision for loan and lease losses	15		2,870		1,085		3,970
Other	(2)		3		1		2
Allowance for loan and lease losses, September 30	441		7,729		4,835		13,005
Reserve for unfunded lending commitments, January 1	62		—		1,115		1,177
Provision for unfunded lending commitments	10		—		(8)		2

Reserve for unfunded lending commitments, September 30	72		—		1,107		1,179
Allowance for credit losses, September 30	$	513	$	7,729	$	5,942	$	14,184

	Nine Months Ended September 30, 2025
Allowance for loan and lease losses, January 1	$	293	$	8,277	$	4,670	$	13,240
Loans and leases charged off	(29)		(3,878)		(1,351)		(5,258)
Recoveries of loans and leases previously charged off	61		690		163		914
Net charge-offs	32		(3,188)		(1,188)		(4,344)
Provision for loan and lease losses	79		2,957		1,318		4,354
Other	4		(2)		—		2
Allowance for loan and lease losses, September 30	408		8,044		4,800		13,252
Reserve for unfunded lending commitments, January 1	57		—		1,039		1,096
Provision for unfunded lending commitments	7		—		6		13

Reserve for unfunded lending commitments, September 30	64		—		1,045		1,109
Allowance for credit losses, September 30	$	472	$	8,044	$	5,845	$	14,361

NOTE 6 Securitizations and Other Variable Interest Entities

The Corporation utilizes VIEs in the ordinary course of business to support its own and its customers’ financing and investing needs. The Corporation routinely securitizes loans and debt securities using VIEs as a source of funding for the Corporation and as a means of transferring the economic risk of the loans or debt securities to third parties. The assets are transferred into a trust or other securitization vehicle such that the assets are legally isolated from the creditors of the Corporation and are not available to satisfy its obligations. These assets can only be used to settle obligations of the trust or other securitization vehicle. The Corporation also administers, structures or invests in other VIEs including CDOs, investment vehicles and other

entities. For more information on the Corporation’s use of VIEs, see Note 1 – Summary of Significant Accounting Principles and Note 6 – Securitizations and Other Variable Interest Entities to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

The tables in this Note present the assets and liabilities of consolidated and unconsolidated VIEs at September 30, 2026 and December 31, 2025 in situations where the Corporation has a loan or security interest and involvement with transferred assets or if the Corporation otherwise has an additional interest in the VIE. The tables also present the Corporation’s maximum loss exposure at September 30, 2026 and December 31, 2025 resulting from its involvement with consolidated VIEs and unconsolidated VIEs. The Corporation’s maximum loss exposure


						Bank of America 74

is based on the unlikely event that all of the assets in the VIEs become worthless and incorporates not only potential losses associated with assets recorded on the Consolidated Balance Sheet but also potential losses associated with off-balance sheet commitments, such as unfunded liquidity commitments and other contractual arrangements. The Corporation’s maximum loss exposure does not include losses previously recognized through write-downs of assets.

The Corporation invests in ABS, CLOs and other similar investments issued by third-party VIEs with which it has no other form of involvement other than a loan or debt security issued by the VIE. In addition, the Corporation also enters into certain commercial lending arrangements that may utilize VIEs for activities secondary to the lending arrangement, for example to hold collateral. The Corporation’s maximum loss exposure to these VIEs is the investment balances and/or unfunded lending commitments. These securities and loans are included in Note 4 – Securities, Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses, or Note 10 – Commitments and Contingencies and are not included in the following tables.

The Corporation did not provide financial support to consolidated or unconsolidated VIEs during the three and nine months ended September 30, 2026 or the year ended December 31, 2025 that it was not previously contractually required to provide, nor does it intend to do so.

The Corporation had liquidity commitments, including written put options and collateral value guarantees, with certain unconsolidated VIEs of $1.4 billion and $1.1 billion at September 30, 2026 and December 31, 2025.

First-lien Mortgage Securitizations

As part of its mortgage banking activities, the Corporation securitizes a portion of the first-lien residential mortgage loans it originates or purchases from third parties, generally in the form of residential mortgage-backed securities guaranteed by government-sponsored enterprises, FNMA and FHLMC (collectively the GSEs), or the Government National Mortgage Association (GNMA) primarily in the case of FHA-insured and U.S. Department of Veterans Affairs (VA)-guaranteed mortgage loans. Securitization usually occurs in conjunction with or shortly after origination or purchase, and the Corporation may also securitize loans held in its residential mortgage portfolio. In addition, the Corporation may, from time to time, securitize commercial mortgages it originates or purchases from other entities. The Corporation typically services the loans it securitizes. Further, the Corporation may retain beneficial interests in the securitization trusts including senior and subordinate securities and equity tranches issued by the trusts. Except as described in Note 10 – Commitments and Contingencies, the Corporation does not provide guarantees or recourse to the securitization trusts other than standard representations and warranties.

The table below summarizes select information related to first-lien mortgage securitizations for the three and nine months ended September 30, 2026 and 2025.



First-lien Mortgage Securitizations

	Residential Mortgage - Agency								Commercial Mortgage

	Three Months Ended September 30				Nine Months Ended September 30				Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025		2026		2025		2026		2025
Proceeds from loan sales (1)	$	2,221	$	2,115	$	5,927	$	4,649	$	2,529	$	1,877	$	8,172	$	8,436
Gains (losses) on securitizations (2)	—		(1)		(3)		(4)		9		19		21		72
Repurchases from securitization trusts (3)	12		13		45		42		—		—		—		—

(1)The Corporation transfers residential mortgage loans to securitizations sponsored primarily by the GSEs or GNMA in the normal course of business and primarily receives residential mortgage-backed securities in exchange. Substantially all of these securities are classified as Level 2 within the fair value hierarchy and are typically sold shortly after receipt.

(2)A majority of the first-lien residential mortgage loans securitized are initially classified as LHFS and accounted for under the fair value option. Gains recognized on these LHFS prior to securitization, which totaled $18 million and $47 million, net of hedges, during the three and nine months ended September 30, 2026 compared to $12 million and $26 million for the same periods in 2025, are not included in the table above.

(3)The Corporation may have the option to repurchase delinquent loans out of securitization trusts, which reduces the amount of servicing advances it is required to make. The Corporation may also repurchase loans from securitization trusts to perform modifications. Repurchased loans include FHA-insured mortgages collateralizing GNMA securities.

The Corporation recognizes consumer MSRs from the sale or securitization of consumer real estate loans. The unpaid principal balance of loans serviced for investors, including residential mortgage and home equity loans, totaled $75.4 billion and $80.2 billion at September 30, 2026 and 2025. Servicing fee and ancillary fee income on serviced loans was $48 million and $148 million during the three and nine months ended September 30, 2026 compared to $54 million and $164 million for the same periods in 2025. Servicing advances on serviced loans, including loans serviced for others and loans held for investment, were $787 million and $894 million at September 30, 2026 and December 31, 2025. For more information on MSRs, see Note 14 – Fair Value Measurements.

Home Equity Loans

The Corporation retains interests, primarily senior securities, in home equity securitization trusts to which it transferred home equity loans. In addition, the Corporation may be obligated to provide subordinate funding to the trusts during a rapid amortization event. This obligation is included in the maximum loss exposure in the preceding table. The charges that will ultimately be recorded as a result of the rapid amortization events depend on the undrawn portion of the home equity lines of credit, performance of the loans, the amount of subsequent draws and the timing of related cash flows.

Mortgage and Home Equity Securitizations

The following table summarizes select information related to mortgage and home equity securitization trusts in which the Corporation held a variable interest and had continuing involvement at September 30, 2026 and December 31, 2025.


75 Bank of America



Mortgage and Home Equity Securitizations

	Residential Mortgage
					Non-agency
	Agency				Prime and Alt-A				Subprime				Home Equity (1)				Commercial Mortgage

(Dollars in millions)	Sep 30 2026		Dec 31 2025		Sep 30 2026		Dec 31 2025		Sep 30 2026		Dec 31 2025		Sep 30 2026		Dec 31 2025		Sep 30 2026		Dec 31 2025

Unconsolidated VIEs
Maximum loss exposure (2)	$	6,331	$	6,869	$	11	$	11	$	330	$	495	$	—	$	—	$	1,764	$	1,770
On-balance sheet assets
Senior securities:
Trading account assets	$	299	$	218	$	9	$	9	$	21	$	6	$	—	$	—	$	762	$	535
Debt securities carried at fair value	1,737		2,050		—		—		188		407		—		—		—		—
Held-to-maturity securities	4,295		4,601		—		—		—		—		—		—		913		1,075
All other assets	—		—		2		2		28		17		—		—		45		24
Total retained positions	$	6,331	$	6,869	$	11	$	11	$	237	$	430	$	—	$	—	$	1,720	$	1,634
Principal balance outstanding (3)	$	63,054	$	65,290	$	10,379	$	11,242	$	3,603	$	3,775	$	133	$	154	$	92,229	$	91,802

Consolidated VIEs
Maximum loss exposure (2)	$	829	$	939	$	—	$	—	$	—	$	30	$	7	$	8	$	—	$	—
On-balance sheet assets
Trading account assets	$	830	$	939	$	—	$	—	$	—	$	245	$	—	$	—	$	—	$	—
Loans and leases	—		—		—		—		—		—		12		15		—		—
Allowance for loan and lease losses	—		—		—		—		—		—		5		5		—		—

All other assets	—		—		—		—		—		—		—		1		—		—
Total assets	$	830	$	939	$	—	$	—	$	—	$	245	$	17	$	21	$	—	$	—




Total liabilities	$	1	$	—	$	—	$	—	$	—	$	215	$	10	$	13	$	—	$	—

(1)For unconsolidated home equity loan VIEs, the maximum loss exposure includes outstanding trust certificates issued by trusts in rapid amortization, net of recorded reserves. For both consolidated and unconsolidated home equity loan VIEs, the maximum loss exposure excludes the reserve for representations and warranties obligations and corporate guarantees. For more information, see Note 10 – Commitments and Contingencies.

(2)Maximum loss exposure includes obligations under loss-sharing reinsurance and other arrangements for non-agency residential mortgage and commercial mortgage securitizations, but excludes the reserve for representations and warranties obligations and corporate guarantees and also excludes servicing advances and other servicing rights and obligations. For more information, see Note 10 – Commitments and Contingencies and Note 14 – Fair Value Measurements.

(3)Principal balance outstanding includes loans where the Corporation was the transferor to securitization VIEs with which it has continuing involvement, which may include servicing the loans.

Other Asset-backed Securitizations

The following paragraphs summarize select information related to other asset-backed VIEs in which the Corporation had a variable interest at September 30, 2026 and December 31, 2025.

Credit Card and Automobile Loan Securitizations

The Corporation securitizes originated and purchased credit card and automobile loans as a source of financing. The loans are sold on a non-recourse basis to consolidated trusts. The securitizations are ongoing, whereas additional receivables will be funded into the trusts by either loan repayments or proceeds from securities issued to third parties, depending on the securitization structure. The Corporation’s continuing involvement with the securitization trusts includes servicing the receivables and holding various subordinated interests, including an undivided seller’s interest in the credit card receivables and owning certain retained interests.

At September 30, 2026 and December 31, 2025, the carrying values of the receivables in the trusts totaled $16.6 billion and $17.1 billion, which are included in loans and leases, and the carrying values of senior debt securities that were issued to third-party investors from the trusts totaled $7.1 billion and $6.4 billion, which are included in long-term debt.

Resecuritization Trusts

The Corporation transfers securities, typically MBS, into resecuritization VIEs generally at the request of customers seeking securities with specific characteristics. Generally, there are no significant ongoing activities performed in a resecuritization trust, and no single investor has the unilateral ability to liquidate the trust.

The Corporation resecuritized $10.4 billion and $32.7 billion of securities during the three and nine months ended September 30, 2026 compared to $6.6 billion and $25.1 billion for the same periods in 2025. Securities transferred into resecuritization VIEs were measured at fair value with changes in fair value recorded in market making and similar activities prior to the resecuritization and, accordingly, no gain or loss on sale was recorded. During the three and nine months ended September 30, 2026, resecuritization proceeds included securities with an initial fair value of $682 million and $1.8 billion, compared to $1.4 billion and $4.2 billion for the same periods in 2025, of which substantially all of the securities were classified as trading account assets for both periods. Substantially all of the trading account securities carried at fair value were categorized as Level 2 within the fair value hierarchy.

During the three and nine months ended September 30, 2026, the Corporation’s deconsolidated resecuritization trusts were not significant. During the three and nine months ended September 30, 2025, the Corporation deconsolidated resecuritization trusts with total assets of $85 million and $580 million.

Customer VIEs

Customer VIEs include credit-linked, equity-linked and commodity-linked note VIEs, repackaging VIEs and asset acquisition VIEs, which are typically created on behalf of customers who wish to obtain market or credit exposure to a specific company, index, commodity or financial instrument.

The Corporation’s involvement in the VIE is limited to its loss exposure. The Corporation’s maximum loss exposure to consolidated and unconsolidated customer VIEs totaled $3.3 billion and $1.7 billion at September 30, 2026 and December 31, 2025, including the notional amount of derivatives to which the Corporation is a counterparty, net of


						Bank of America 76

losses previously recorded, and the Corporation’s investment, if any, in securities issued by the VIEs.

Municipal Bond Trusts

The Corporation administers municipal bond trusts that hold highly-rated, long-term, fixed-rate municipal bonds. The trusts obtain financing by issuing floating-rate trust certificates that reprice on a weekly or other short-term basis to third-party investors.

The Corporation’s liquidity commitments to unconsolidated municipal bond trusts, including those for which the Corporation was transferor, totaled $3.3 billion and $3.0 billion at September 30, 2026 and December 31, 2025. The weighted-average remaining life of bonds held in the trusts at September 30, 2026 was 8.9 years. There were no significant write-downs or downgrades of assets or issuers during the nine months ended September 30, 2026 and 2025.

Collateralized Debt Obligation VIEs

The Corporation receives fees for structuring CDO VIEs, which hold diversified pools of fixed-income securities, typically corporate debt or ABS, which the CDO VIEs fund by issuing multiple tranches of debt and equity securities. CDOs are generally managed by third-party portfolio managers. The Corporation typically transfers assets to these CDOs, holds securities issued by the CDOs and may be a derivative counterparty to the CDOs. The Corporation’s maximum loss exposure to consolidated and unconsolidated CDOs totaled $54 million and $60 million at September 30, 2026 and December 31, 2025.

Investment VIEs

The Corporation sponsors, invests in or provides financing, which may be in connection with the sale of assets, to a variety

of investment VIEs that hold loans, real estate, debt securities or other financial instruments and are designed to provide the desired investment profile to investors or the Corporation. At September 30, 2026 and December 31, 2025, the Corporation’s consolidated investment VIEs had total assets of $59 million and $58 million. The Corporation also held investments in unconsolidated VIEs with total assets of $37.4 billion and $30.0 billion at September 30, 2026 and December 31, 2025. The Corporation’s maximum loss exposure associated with both consolidated and unconsolidated investment VIEs totaled $3.6 billion and $2.8 billion at September 30, 2026 and December 31, 2025 comprised primarily of on-balance sheet assets less non-recourse liabilities.

Leveraged Lease Trusts

The Corporation’s net investment in consolidated leveraged lease trusts totaled $794 million and $850 million at September 30, 2026 and December 31, 2025. The trusts hold long-lived equipment such as rail cars, power generation and distribution equipment, and commercial aircraft. The Corporation structures the trusts and holds a significant residual interest. The net investment represents the Corporation’s maximum loss exposure to the trusts in the unlikely event that the leveraged lease investments become worthless. Debt issued by the leveraged lease trusts is non-recourse to the Corporation.

The table below summarizes the maximum loss exposure and assets held by the Corporation that related to other asset-backed VIEs at September 30, 2026 and December 31, 2025.



Other Asset-backed VIEs

	Credit Card and Automobile (1)				Resecuritization Trusts and Customer VIEs				Municipal Bond Trusts and CDOs				Investment VIEs and Leveraged Lease Trusts


(Dollars in millions)	Sep 30 2026		Dec 31 2025		Sep 30 2026		Dec 31 2025		Sep 30 2026		Dec 31 2025		Sep 30 2026		Dec 31 2025
Unconsolidated VIEs
Maximum loss exposure	$	—	$	—	$	7,035	$	5,183	$	3,328	$	3,107	$	4,608	$	3,955
On-balance sheet assets
Securities (2):
Trading account assets	$	—	$	—	$	1,537	$	1,223	$	2	$	12	$	153	$	152
Debt securities carried at fair value	—		—		642		745		—		—		737		—
Held-to-maturity securities	—		—		1,577		1,747		—		—		—		—
Loans and leases	—		—		—		—		—		—		1,123		1,257
Allowance for loan and lease losses	—		—		—		—		—		—		(1)		(2)
All other assets	—		—		3,279		1,468		6		5		2,026		2,022
Total retained positions	$	—	$	—	$	7,035	$	5,183	$	8	$	17	$	4,038	$	3,429
Total on-balance sheet liabilities	$	—	$	—	$	—	$	—	$	—	$	—	$	399	$	409
Total assets of VIEs	$	—	$	—	$	32,894	$	31,798	$	7,690	$	8,065	$	37,453	$	30,016

Consolidated VIEs
Maximum loss exposure	$	8,853	$	9,995	$	3	$	196	$	7,312	$	5,975	$	793	$	844
On-balance sheet assets
Trading account assets	$	—	$	—	$	211	$	394	$	6,500	$	5,506	$	59	$	55
Debt securities carried at fair value	—		—		—		—		812		469		—		—
Loans and leases	16,586		17,066		—		—		—		—		732		794
Allowance for loan and lease losses	(853)		(875)		—		—		—		—		(1)		(1)

All other assets	208		197		55		40		—		—		4		2
Total assets	$	15,941	$	16,388	$	266	$	434	$	7,312	$	5,975	$	794	$	850
On-balance sheet liabilities
Short-term borrowings	$	—	$	—	$	—	$	—	$	7,272	$	5,779	$	—	$	—
Long-term debt	7,070		6,375		262		238		—		—		—		6
All other liabilities	18		18		—		—		—		—		1		—
Total liabilities	$	7,088	$	6,393	$	262	$	238	$	7,272	$	5,779	$	1	$	6

(1)At September 30, 2026 and December 31, 2025 loans and leases in the consolidated credit card trust included $4.1 billion and $5.4 billion of seller’s interest.

(2)The retained senior securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy).


77 Bank of America

Tax-related VIEs

The Corporation holds equity investments in unconsolidated limited partnerships and similar entities that construct, own and operate affordable housing, renewable energy and certain other projects. The total assets of these unconsolidated tax-related VIEs were $84.1 billion and $86.5 billion as of September 30, 2026 and December 31, 2025. An unrelated third party is typically the general partner or managing member and has control over the significant activities of the VIE. As an investor, tax credits associated with the investments in these entities are allocated to the Corporation, as provided by the U.S. Internal Revenue Code and related regulations, and are recognized as income tax benefits in the Corporation’s Consolidated Statement of Income in the year they are earned, which varies based on the type of investments.

At September 30, 2026 and December 31, 2025, the Corporation had tax-related equity investments totaling $24.5 billion and $25.4 billion, which were comprised of $23.3 billion and $24.4 billion as of the same periods under programs for which the Corporation elected the proportional amortization method, as well as $1.2 billion and $1.0 billion accounted for under the equity method or fair value option. These investments are further described below.

The Corporation has investments in affordable housing, renewable energy and certain other projects that had a carrying value of $23.3 billion and $24.4 billion at September 30, 2026 and December 31, 2025, which included unfunded capital contributions of $7.6 billion and $8.1 billion that are probable to be paid.

For the investments that qualify, the Corporation has elected to account for its equity investments in affordable housing, renewable wind energy and certain other projects under the proportional amortization method. The investments that do not qualify are accounted for under the equity method. During the three and nine months ended September 30, 2026, the Corporation recognized income tax credits and other tax benefits related to these investments of $1.1 billion and $3.2 billion compared to $1.1 billion and $3.5 billion for the same periods in 2025. For investments accounted for under the proportional amortization method, the Corporation recognized investment amortization of $751 million and $2.3 billion in income tax

expense during the three and nine months ended September 30, 2026 compared to $894 million and $2.6 billion for the same periods in 2025, and additional gains, losses and other returns totaling $33 million and $106 million in other income compared to $31 million and $92 million for the same periods in 2025. The Corporation also has equity investments in solar renewable energy projects that are accounted for under either the equity method or at fair value when the Corporation has elected to account for the investment at fair value. These investments totaled $1.2 billion and $1.0 billion at September 30, 2026 and December 31, 2025. The Corporation’s unfunded commitments that are not included in the carrying value of its tax-related equity investment VIEs totaled $3.1 billion and $2.6 billion at September 30, 2026 and December 31, 2025, which are contingent on various conditions precedent to funding over the next 10 years. The Corporation’s risk of loss is generally mitigated by policies requiring the project to qualify for the expected tax credits prior to making its investment. For investments accounted for under the proportional amortization method, there were no significant modifications or events that resulted in a change in the nature of those investments or in the relationship with the underlying project. The Corporation may also enter into power purchase agreements with renewable energy tax credit entities.

The table below summarizes select information related to unconsolidated tax-related VIEs in which the Corporation held a variable interest at September 30, 2026 and December 31, 2025.



Unconsolidated Tax-related VIEs




(Dollars in millions)	September 30 2026		December 31 2025
Maximum loss exposure	$	24,508		$	25,435
On-balance sheet assets






All other assets	24,508			25,435
Total	$	24,508		$	25,435

On-balance sheet liabilities



All other liabilities	7,580			7,008
Total	$	7,580		$	7,008
Total assets of VIEs	$	84,094		$	86,476


						Bank of America 78

NOTE 7 Goodwill and Intangible Assets

Goodwill

The table below presents goodwill balances by business segment at September 30, 2026 and December 31, 2025. The reporting units utilized for goodwill impairment testing are the reportable segments or one level below.



Goodwill

(Dollars in millions)	September 30 2026		December 31 2025




Consumer Banking	$	30,137	$	30,137


Global Wealth & Investment Management	9,677		9,677



Global Banking	24,026		24,026
Global Markets	5,181		5,181

Total goodwill	$	69,021	$	69,021

Intangible Assets

At both September 30, 2026 and December 31, 2025, the net carrying value of intangible assets was $1.8 billion. At both September 30, 2026 and December 31, 2025, intangible assets included $1.5 billion of intangible assets associated with trade names, substantially all of which had an indefinite life and, accordingly, are not being amortized. Amortization of intangibles expense was $18 million and $20 million for the three months ended September 30, 2026 and 2025, and $56 million and $59 million for the nine months ended September 30, 2026 and 2025.

NOTE 8 Leases

The Corporation enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 – Summary of Significant Accounting Principles and Note 8 – Leases to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. For more information on lease financing receivables, see Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses.

Lessor Arrangements

The Corporation’s lessor arrangements primarily consist of operating, sales-type and direct financing leases for equipment. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term.

The table below presents the net investment in sales-type and direct financing leases at September 30, 2026 and December 31, 2025.



Net Investment (1)



(Dollars in millions)	September 30 2026		December 31 2025
Lease receivables	$	18,538	$	19,198
Unguaranteed residuals	3,340		3,520
Total net investment in sales-type and direct financing leases	$	21,878	$	22,718

(1)In certain cases, the Corporation obtains third-party residual value insurance to reduce its residual asset risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $9.1 billion and $9.4 billion at September 30, 2026 and December 31, 2025.

The table below presents lease income for the three and nine months ended September 30, 2026 and 2025.



Lease Income

	Three Months Ended September 30				Nine Months Ended September 30

(Dollars in millions)	2026		2025		2026		2025
Sales-type and direct financing leases	$	304	$	312	$	922	$	925
Operating leases	261		241		793		710
Total lease income	$	565	$	553	$	1,715	$	1,635

Lessee Arrangements

The Corporation's lessee arrangements predominantly consist of operating leases for premises and equipment; the Corporation's financing leases are not significant.

The table below provides information on the right-of-use assets and lease liabilities at September 30, 2026 and December 31, 2025.



Lessee Arrangements



(Dollars in millions)	September 30 2026		December 31 2025
Right-of-use assets	$	11,230	$	8,395
Lease liabilities	11,973		9,086

At September 30, 2026 and December 31, 2025, right-of-use assets included $3.1 billion and $393 million, and lease liabilities included $3.2 billion and $440 million for a lease to a related party, which was extended in the first quarter of 2026 to 2049, for the Corporation’s principal office in New York, NY. The Corporation owns a 49.99 percent equity interest in the property, with the remaining 50.01 percent owned by a third party.


79 Bank of America

NOTE 9 Securities Financing Agreements, Collateral and Restricted Cash

The Corporation enters into securities financing agreements which include securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase. These financing agreements (also referred to as “matched-book transactions”) are to accommodate customers, obtain securities to cover short positions and finance inventory positions. The Corporation elects to account for certain securities financing agreements under the fair value option. For more information on the fair value option, see Note 15 – Fair Value Option.

Offsetting of Securities Financing Agreements

The Securities Financing Agreements table presents securities financing agreements included on the Consolidated Balance

Sheet in federal funds sold and securities borrowed or purchased under agreements to resell, and in federal funds purchased and securities loaned or sold under agreements to repurchase at September 30, 2026 and December 31, 2025. Balances are presented on a gross basis, prior to the application of counterparty netting. Gross assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements. For more information on the offsetting of derivatives, see Note 3 – Derivatives. For more information on the securities financing agreements and the offsetting of securities financing transactions, see Note 10 – Securities Financing Agreements, Short-term Borrowings, Collateral and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.



Securities Financing Agreements

	Gross Assets/Liabilities (1)		Amounts Offset		Net Balance Sheet Amount		Financial Instruments (2)		Net Assets/Liabilities
(Dollars in millions)	September 30, 2026
Securities borrowed or purchased under agreements to resell (3)	$	909,930	$	(562,805)	$	347,125	$	(329,315)	$	17,810

Securities loaned or sold under agreements to repurchase	$	878,223	$	(562,805)	$	315,418	$	(309,167)	$	6,251
Other (4)	1,645		—		1,645		(1,645)		—
Total	$	879,868	$	(562,805)	$	317,063	$	(310,812)	$	6,251

	December 31, 2025
Securities borrowed or purchased under agreements to resell (3)	$	935,784	$	(619,206)	$	316,578	$	(285,569)	$	31,009

Securities loaned or sold under agreements to repurchase	$	963,924	$	(619,208)	$	344,716	$	(332,592)	$	12,124
Other (4)	5,290		—		5,290		(5,290)		—
Total	$	969,214	$	(619,208)	$	350,006	$	(337,882)	$	12,124

(1)Includes activity where uncertainty exists as to the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries.

(2)Includes securities collateral received or pledged under repurchase or securities lending agreements where there is a legally enforceable master netting agreement. These amounts are not offset on the Consolidated Balance Sheet, but are shown as a reduction to derive a net asset or liability. Securities collateral received or pledged where the legal enforceability of the master netting agreements is uncertain is excluded from the table.

(3)Excludes repurchase activity of $22.0 billion and $19.6 billion reported in loans and leases on the Consolidated Balance Sheet for September 30, 2026 and December 31, 2025.

(4)Balance is reported in accrued expenses and other liabilities on the Consolidated Balance Sheet and relates to transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. In these transactions, the Corporation recognizes an asset at fair value, representing the securities received, and a liability, representing the obligation to return those securities.

Repurchase Agreements and Securities Loaned Transactions Accounted for as Secured Borrowings

The following tables present securities sold under agreements to repurchase and securities loaned by remaining contractual term to maturity and class of collateral pledged. Included in “Other” are transactions where the Corporation acts as the lender in a securities lending agreement and receives securities that can be pledged as collateral or sold. Certain agreements contain a right to substitute collateral and/or terminate the

agreement prior to maturity at the option of the Corporation or the counterparty. Such agreements are included in the table below based on the remaining contractual term to maturity. For more information on collateral requirements, see Note 10 – Securities Financing Agreements, Short-term Borrowings, Collateral and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.



Remaining Contractual Maturity


	Overnight and Continuous		30 Days or Less		After 30 Days Through 90 Days		Greater than 90 Days (1)		Total
(Dollars in millions)	September 30, 2026
Securities sold under agreements to repurchase	$	348,247	$	231,028	$	87,949	$	81,614	$	748,838
Securities loaned	115,543		74		1,343		12,425		129,385
Other	1,645		—		—		—		1,645
Total	$	465,435	$	231,102	$	89,292	$	94,039	$	879,868

	December 31, 2025
Securities sold under agreements to repurchase	$	349,168	$	314,290	$	96,642	$	74,081	$	834,181
Securities loaned	118,550		5		1,019		10,169		129,743
Other	5,290		—		—		—		5,290
Total	$	473,008	$	314,295	$	97,661	$	84,250	$	969,214

(1)No agreements have maturities greater than four years.


						Bank of America 80



Class of Collateral Pledged


	Securities Sold Under Agreements to Repurchase		Securities Loaned		Other		Total
(Dollars in millions)	September 30, 2026
U.S. government and agency securities	$	326,064	$	1,443	$	—	$	327,507
Corporate securities, trading loans and other	39,997		1,854		4		41,855
Equity securities	34,705		125,475		1,550		161,730
Non-U.S. sovereign debt	337,181		613		91		337,885
Mortgage trading loans and ABS	10,891		—		—		10,891
Total	$	748,838	$	129,385	$	1,645	$	879,868

	December 31, 2025
U.S. government and agency securities	$	453,619	$	778	$	188	$	454,585
Corporate securities, trading loans and other	28,321		764		1		29,086
Equity securities	25,503		128,190		5,101		158,794
Non-U.S. sovereign debt	318,194		11		—		318,205
Mortgage trading loans and ABS	8,544		—		—		8,544
Total	$	834,181	$	129,743	$	5,290	$	969,214

Collateral

The Corporation accepts securities and loans as collateral that it is permitted by contract or practice to sell or repledge. At September 30, 2026 and December 31, 2025, the fair value of this collateral was $1.3 trillion and $1.1 trillion, of which $1.2 trillion and $1.0 trillion were sold or repledged as of the end of the periods. The primary source of this collateral is securities borrowed or purchased under agreements to resell. For more information on collateral, see Note 10 – Securities Financing Agreements, Short-term Borrowings, Collateral and Restricted Cash to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

Restricted Cash

At September 30, 2026 and December 31, 2025, the Corporation held restricted cash included within cash and cash equivalents on the Consolidated Balance Sheet of $7.2 billion and $6.5 billion, predominantly related to cash segregated in compliance with securities regulations and cash held on deposit with central banks to meet reserve requirements.

NOTE 10 Commitments and Contingencies

In the normal course of business, the Corporation enters into a number of off-balance sheet commitments. These commitments expose the Corporation to varying degrees of credit and market risk and are subject to the same credit and market risk limitation reviews as those instruments recorded on the Consolidated Balance Sheet. For more information on commitments and contingencies, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

Credit Extension Commitments

The Corporation enters into commitments to extend credit such as loan commitments, standby letters of credit (SBLCs) and commercial letters of credit to meet the financing needs of its customers. The following table includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts were $10.5 billion and $10.6 billion at September 30, 2026 and December 31, 2025. The carrying value of the Corporation’s credit extension commitments at both September 30, 2026 and December 31, 2025, excluding commitments accounted for under the fair value option, was $1.2 billion, which predominantly related to the reserve for unfunded lending commitments. The carrying value of these commitments is classified in accrued expenses and other liabilities on the Consolidated Balance Sheet.

Legally binding commitments to extend credit generally have specified rates and maturities. Certain of these commitments have adverse change clauses that help to protect the Corporation against deterioration in the borrower’s ability to pay.

The following table includes the notional amount of commitments of $3.8 billion and $2.4 billion at September 30, 2026 and December 31, 2025 that are accounted for under the fair value option. However, the table excludes the cumulative net fair value for these commitments of $116 million and $67 million at September 30, 2026 and December 31, 2025, which is classified in accrued expenses and other liabilities. For more information regarding the Corporation’s loan commitments accounted for under the fair value option, see Note 15 – Fair Value Option.


81 Bank of America



Credit Extension Commitments

	Expire in One Year or Less		Expire After One Year Through Three Years		Expire After Three Years Through Five Years		Expire After Five Years		Total
(Dollars in millions)	September 30, 2026
Notional amount of credit extension commitments
Loan commitments (1)	$	142,288	$	218,173	$	264,237	$	26,268	$	650,966
Home equity lines of credit	4,535		7,974		5,728		23,834		42,071
Standby letters of credit and financial guarantees (2)	23,880		14,455		5,967		410		44,712
Letters of credit	788		88		13		29		918
Other commitments (3)	18		56		48		1,034		1,156
Legally binding commitments	171,509		240,746		275,993		51,575		739,823
Credit card lines (4)	495,790		—		—		—		495,790
Total credit extension commitments	$	667,299	$	240,746	$	275,993	$	51,575	$	1,235,613

	December 31, 2025
Notional amount of credit extension commitments
Loan commitments (1)	$	139,725	$	224,524	$	244,340	$	24,587	$	633,176
Home equity lines of credit	4,247		9,808		7,240		21,787		43,082
Standby letters of credit and financial guarantees (2)	24,086		9,626		4,018		386		38,116
Letters of credit	639		46		19		44		748
Other commitments (3)	15		57		54		1,002		1,128
Legally binding commitments	168,712		244,061		255,671		47,806		716,250
Credit card lines (4)	476,926		—		—		—		476,926
Total credit extension commitments	$	645,638	$	244,061	$	255,671	$	47,806	$	1,193,176

(1) At September 30, 2026 and December 31, 2025, $3.6 billion and $3.4 billion of these loan commitments were held in the form of a security.

(2) The notional amounts of SBLCs and financial guarantees classified as investment grade and non-investment grade based on the credit quality of the underlying reference name within the instrument were $33.3 billion and $10.3 billion at September 30, 2026, and $26.8 billion and $10.4 billion at December 31, 2025. Amounts in the table include consumer SBLCs of $1.1 billion and $987 million at September 30, 2026 and December 31, 2025.

(3) Primarily includes second-loss positions on lease-end residual value guarantees.

(4) Includes business card unused lines of credit.

Other Commitments

At September 30, 2026 and December 31, 2025, the Corporation had commitments to purchase loans (e.g., residential mortgage and commercial real estate) of $932 million and $700 million, which upon settlement will be included in trading account assets, loans or LHFS, and commitments to purchase commercial loans, net of amounts sold, of $833 million and $558 million, which upon settlement will be included in trading account assets.

At September 30, 2026 and December 31, 2025, the Corporation had commitments to enter into resale and forward-dated resale and securities borrowing agreements of $197.1 billion and $149.0 billion, and commitments to enter into forward-dated repurchase and securities lending agreements of $144.3 billion and $108.9 billion. A significant portion of these commitments will expire within the next 12 months.

At September 30, 2026 and December 31, 2025, the Corporation had a commitment to originate or purchase up to $3.7 billion and $4.0 billion, on a rolling 12-month basis, of auto loans and leases from a strategic partner. This commitment extends through November 2030 and can be terminated with 12 months prior notice.

At September 30, 2026 and December 31, 2025, the Corporation had debt and equity security commitments totaling $2.5 billion and $884 million.

As a Federal Reserve member bank, the Corporation is required to subscribe to a certain amount of shares issued by its Federal Reserve district bank, which pays cumulative dividends at a prescribed rate. At both September 30, 2026 and December 31, 2025, the Corporation had paid $5.4 billion for half of its subscribed shares, with the remaining half subject to call by the Federal Reserve district bank board, which the Corporation believes is remote.

Other Guarantees

Bank-owned Life Insurance Book Value Protection

The Corporation sells products that offer book value protection to insurance carriers who offer group life insurance policies to corporations, primarily banks. At both September 30, 2026 and December 31, 2025, these guarantees, which are accounted for as derivatives, had a notional amount of $2.4 billion and an insignificant fair value. At September 30, 2026 and December 31, 2025, the Corporation’s maximum exposure related to these guarantees totaled $378 million and $377 million, with an estimated maturity in 2034.


						Bank of America 82

Merchant Services

The Corporation in its role as merchant acquirer or as a sponsor of other merchant acquirers may be held liable for any reversed charges that cannot be collected from the merchants due to, among other things, merchant fraud or insolvency. If charges are properly reversed after a purchase and cannot be collected from either the merchants or merchant acquirers, the Corporation may be held liable for these reversed charges. The ability to reverse a charge is primarily governed by the applicable payment network rules and regulations, which include, but are not limited to, the type of charge, type of payment used and time limits. The total amount of transactions subject to reversal under payment network rules and regulations processed for the preceding six-month period, which was approximately $183 billion, is an estimate of the Corporation’s maximum potential exposure as of September 30, 2026. The Corporation’s risk in this area primarily relates to circumstances where a cardholder has purchased goods or services for future delivery. The Corporation mitigates this risk by requiring cash deposits, guarantees, letters of credit or other types of collateral from certain merchants. The Corporation’s reserves for contingent losses, and the losses incurred related to the merchant processing activity were not significant.

Representations and Warranties Obligations and Corporate Guarantees

For more information on representations and warranties obligations and corporate guarantees, see Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

The reserve for representations and warranties obligations and corporate guarantees was $185 million and $184 million at September 30, 2026 and December 31, 2025 and is included in accrued expenses and other liabilities on the Consolidated Balance Sheet, and the related provision is included in other income in the Consolidated Statement of Income. The representations and warranties reserve represents the Corporation’s best estimate of probable incurred losses, is based on its experience in previous negotiations, and is subject to judgment, a variety of assumptions and known or unknown uncertainties. At September 30, 2026, the estimated range of possible loss in excess of the accrued representations and warranties reserve was not significant. Future representations and warranties losses may occur in excess of the amounts recorded for these exposures; however, the Corporation does not expect such amounts to be material to the Corporation's financial condition and liquidity.

Fixed Income Clearing Corporation Sponsored Member Repo Program

The Corporation acts as a sponsoring member in a repo program whereby the Corporation clears certain eligible resale and repurchase agreements through the Government Securities Division of the Fixed Income Clearing Corporation on behalf of clients that are sponsored members in accordance with the Fixed Income Clearing Corporation’s rules. As part of this program, the Corporation guarantees the payment and performance of its sponsored members to the Fixed Income Clearing Corporation. The Corporation’s guarantee obligation is secured by a security interest in cash or high-quality securities collateral placed by clients with the clearinghouse and therefore, the potential for the Corporation to incur significant losses under this arrangement is remote. The Corporation’s maximum potential exposure, without taking into consideration the related

collateral, was $270.5 billion and $339.1 billion at September 30, 2026 and December 31, 2025.

Other Guarantees

In the normal course of business, the Corporation periodically guarantees the obligations of its affiliates in a variety of transactions including ISDA-related transactions and non-ISDA related transactions such as commodities trading, repurchase agreements, prime brokerage agreements and other transactions.

Guarantees of Certain Long-term Debt

The Corporation, as the parent company, fully and unconditionally guarantees the securities issued by BofA Finance LLC, a consolidated finance subsidiary of the Corporation, and effectively provides for the full and unconditional guarantee of trust securities and capital securities issued by certain statutory trust companies that are 100 percent owned finance subsidiaries of the Corporation.

Litigation and Regulatory Matters

The following disclosures supplement the disclosure in Note 12 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K (the prior commitments and contingencies disclosure).

In the ordinary course of business, the Corporation and its subsidiaries are routinely defendants in or parties to many pending and threatened legal, regulatory and governmental actions and proceedings. In view of the inherent difficulty of predicting the outcome of such matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Corporation generally cannot predict the eventual outcome of the pending matters, timing of the ultimate resolution of these matters, or eventual loss, fines or penalties related to each pending matter.

As a matter develops, the Corporation, in conjunction with any outside counsel handling the matter, evaluates whether such matter presents a loss contingency that is probable and estimable, and, for the matters disclosed below and in the prior commitments and contingencies disclosure, whether a loss in excess of any accrued liability is reasonably possible in future periods. Once the loss contingency is deemed to be both probable and estimable, the Corporation will establish an accrued liability and record a corresponding amount of litigation-related expense. The Corporation continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. Excluding expenses of internal and external legal service providers, litigation and regulatory investigation-related expense of $1.3 billion and $1.7 billion was recognized during the three and nine months ended September 30, 2026 compared to $59 million and $297 million for the same periods in 2025.

For any matter disclosed in this Note and in the prior commitments and contingencies disclosure for which a loss in future periods is reasonably possible and reasonably estimable (whether in excess of an accrued liability or where there is no accrued liability), the Corporation’s estimated range of possible loss is $0 to $200 million in excess of the accrued liability, if any, as of September 30, 2026.

The accrued liability and estimated range of possible loss are based upon currently available information and subject to significant judgment, a variety of assumptions and known and unknown uncertainties. The matters underlying the accrued liability and estimated range of possible loss are unpredictable


83 Bank of America

and may change from time to time, and actual losses may vary significantly from the current estimate and accrual. The estimated range of possible loss does not represent the Corporation’s maximum loss exposure.

Information is provided below and in the prior commitments and contingencies disclosure regarding the nature of the litigation or other contingency and, where specified, associated claimed damages. Based on current knowledge, and taking into account accrued liabilities, management does not believe that loss contingencies arising from pending matters, including the matters described below and in the prior commitments and contingencies disclosure, will have a material adverse effect on the consolidated financial condition or liquidity of the Corporation. However, in light of the significant judgment, variety of assumptions and uncertainties involved in those matters, some of which are beyond the Corporation’s control, and the very large or indeterminate damages sought in some of those matters, an adverse outcome in one or more of those matters could be material to the Corporation’s business or results of operations for any particular reporting period, or cause significant reputational harm.

Bank Secrecy Act/Anti-Money Laundering and Economic Sanctions Compliance

BANA agreed to a consent order announced by the Office of the Comptroller of the Currency (OCC) on December 23, 2024 relating to certain aspects of its U.S. Bank Secrecy Act, Anti-Money Laundering and Economic Sanctions Compliance Programs (Programs). Since late 2023, the Corporation has been working with regulators to make changes to its Programs. On October 13, 2026, the OCC, the Financial Crimes Enforcement Network (FinCEN), and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced regulatory resolutions related to certain aspects of the Programs. These resolutions included consent orders with the OCC and FinCEN and a settlement agreement with OFAC. As a result, for the third quarter of 2026, the Corporation recorded a $1.2 billion non-tax-deductible charge in noninterest expense to accrue for the civil money penalties resulting from these regulatory resolutions. As previously disclosed, the Corporation has completed significant steps to satisfy the requirements of the December 2024 OCC consent order.

Deposit Insurance Assessment

On March 31, 2026, the U.S. District Court for the District of Columbia ruled that BANA did not owe additional interest to the Federal Deposit Insurance Corporation. Because no appeal was filed by June 15, 2026, the lawsuit was concluded as of that date. The remaining security pledged by BANA with respect to the disputed amount of interest has been released.

Unemployment Insurance Prepaid Cards

On June 8, 2026, BANA filed a motion to decertify the classes, which remains pending. On August 18, 2026, the court largely denied BANA’s motion for partial summary judgment, allowing the case to proceed to trial subject to its ruling on BANA’s pending motion for decertification.

NOTE 11 Shareholders’ Equity

Common Stock

Declared Quarterly Cash Dividends on Common Stock (1)

Declaration Date

Record Date

Payment Date

Dividend Per Share

October 21, 2026

December 4, 2026

December 24, 2026

0.32

July 23, 2026

September 4, 2026

September 25, 2026

0.32

April 23, 2026

June 5, 2026

June 26, 2026

0.28

February 3, 2026

March 6, 2026

March 27, 2026

0.28

(1) In 2026, and through October 30, 2026.

During the three and nine months ended September 30, 2026, the Corporation repurchased and retired approximately 97 million and 349 million shares of common stock, which reduced shareholders’ equity by $6.0 billion and $19.3 billion, including excise taxes.

During the nine months ended September 30, 2026, in connection with employee stock plans, the Corporation issued 95 million shares of its common stock and, to satisfy tax withholding obligations, repurchased 36 million shares of common stock. At September 30, 2026, the Corporation had reserved 529 million unissued shares of common stock for future issuances under employee stock plans, convertible notes and preferred stock.

On October 21, 2026, the Board of Directors declared a quarterly common stock dividend of $0.32 per share.

Preferred Stock

During the three months ended September 30, 2026, June 30, 2026 and March 31, 2026, the Corporation declared $392 million, $326 million and $425 million of cash dividends on preferred stock, or a total of $1.1 billion for the nine months ended September 30, 2026. During the first quarter of 2026, the Corporation fully redeemed Series DD for $1.0 billion.

For more information on the Corporation’s preferred stock, including liquidation preference, dividend requirements and redemption period, see Note 13 – Shareholders’ Equity to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.


						Bank of America 84

NOTE 12 Accumulated Other Comprehensive Income (Loss)

The table below presents the changes in accumulated OCI after-tax for the nine months ended September 30, 2026 and 2025.



(Dollars in millions)	Debt Securities		Debit Valuation Adjustments		Derivatives		Employee Benefit Plans		Foreign Currency		Total
Balance, December 31, 2024	$	(2,252)	$	(1,694)	$	(5,588)	$	(4,617)	$	(1,134)	$	(15,285)
Net change	489		(161)		3,145		37		30		3,540
Balance, September 30, 2025	$	(1,763)	$	(1,855)	$	(2,443)	$	(4,580)	$	(1,104)	$	(11,745)

Balance, December 31, 2025	$	(1,096)	$	(2,023)	$	(1,998)	$	(4,298)	$	(1,111)	$	(10,526)
Net change	(2,348)		349		(2,874)		110		19		(4,744)
Balance, September 30, 2026	$	(3,444)	$	(1,674)	$	(4,872)	$	(4,188)	$	(1,092)	$	(15,270)

The table below presents the net change in fair value recorded in accumulated OCI, net realized gains and losses reclassified into earnings and other changes for each component of OCI pre- and after-tax for the nine months ended September 30, 2026 and 2025.



	Pretax		Tax effect		After- tax		Pretax		Tax effect		After- tax
	Nine Months Ended September 30
(Dollars in millions)	2026						2025
Debt securities:



Net increase (decrease) in fair value	$	(3,051)	$	733	$	(2,318)	$	644	$	(172)	$	472



Net realized (gains) losses reclassified into earnings (1)	(40)		10		(30)		23		(6)		17
Net change	(3,091)		743		(2,348)		667		(178)		489




Debit valuation adjustments:
Net increase (decrease) in fair value	462		(113)		349		(218)		54		(164)
Net realized (gains) losses reclassified into earnings (1)	—		—		—		3		—		3

Net change	462		(113)		349		(215)		54		(161)
Derivatives:
Net increase (decrease) in fair value	(4,831)		1,159		(3,672)		3,091		(813)		2,278
Reclassifications into earnings:
Net interest income	1,065		(256)		809		1,165		(285)		880


Compensation and benefits expense	(14)		3		(11)		(17)		4		(13)
Net realized (gains) losses reclassified into earnings	1,051		(253)		798		1,148		(281)		867

Net change	(3,780)		906		(2,874)		4,239		(1,094)		3,145
Employee benefit plans:




Net actuarial losses and other reclassified into earnings (2)	146		(36)		110		109		(72)		37

Net change	146		(36)		110		109		(72)		37
Foreign currency:
Net increase (decrease) in fair value	150		(128)		22		(656)		686		30
Net realized (gains) losses reclassified into earnings (1)	(2)		(1)		(3)		—		—		—

Net change	148		(129)		19		(656)		686		30
Total other comprehensive income (loss)	$	(6,115)	$	1,371	$	(4,744)	$	4,144	$	(604)	$	3,540

(1) Reclassifications of pretax debt securities, DVA and foreign currency (gains) losses are recorded in other income in the Consolidated Statement of Income.

(2) Reclassifications of pretax employee benefit plan costs are recorded in other general operating expense in the Consolidated Statement of Income.


85 Bank of America

NOTE 13 Earnings Per Common Share

The calculation of earnings per common share (EPS) and diluted EPS for the three and nine months ended September 30, 2026 and 2025 is presented below. For more information on the calculation of EPS, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.



	Three Months Ended September 30				Nine Months Ended September 30
(In millions, except per share information)	2026		2025		2026		2025
Earnings per common share
Net income	$	6,933	$	8,332	$	24,591	$	22,862
Preferred stock dividends and other	(392)		(429)		(1,147)		(1,126)
Net income applicable to common shareholders	$	6,541	$	7,903	$	23,444	$	21,736

Average common shares issued and outstanding	7,052.5		7,466.0		7,152.7		7,574.5
Earnings per common share	$	0.93	$	1.06	$	3.28	$	2.87

Diluted earnings per common share

Net income applicable to common shareholders	$	6,541	$	7,903	$	23,444	$	21,736
Add preferred stock dividends due to assumed conversions	56		56		167		167
Net income allocated to common shareholders	$	6,597	$	7,959	$	23,611	$	21,903
Average common shares issued and outstanding	7,052.5		7,466.0		7,152.7		7,574.5
Dilutive potential common shares	169.7		161.1		159.8		150.2
Total average diluted common shares issued and outstanding	7,222.2		7,627.1		7,312.5		7,724.7
Diluted earnings per common share	$	0.91	$	1.04	$	3.23	$	2.84

Diluted EPS is calculated by adjusting net income applicable to common shareholders and average common shares issued and outstanding for the potential impact, if dilutive, of any instruments that are exercisable or convertible into common shares. As the Corporation’s Series L convertible preferred stock (Series L) was dilutive to EPS for the three and nine months ended September 30, 2026 and the three and nine months ended September 30, 2025, total average dilutive common shares issued and outstanding included 62 million common shares, as the Series L was assumed to have been converted into common shares as of the beginning of the period. In addition, Series L preferred dividends of $56 million for both the three months ended September 30, 2026 and 2025 and $167 million for both the nine months ended September 30, 2026 and 2025 were included in net income allocated to common shareholders, as they would not have been paid if the Series L was converted.

NOTE 14 Fair Value Measurements

Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most

advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Corporation determines the fair values of its financial instruments under applicable accounting standards and conducts a review of fair value hierarchy classifications on a quarterly basis. Transfers into or out of fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair values of the assets and liabilities become unobservable or observable in the current marketplace. During the nine months ended September 30, 2026, there were no changes to valuation approaches or techniques that had, or are expected to have, a material impact on the Corporation’s consolidated financial position or results of operations.

For more information regarding the fair value hierarchy, how the Corporation measures fair value and valuation techniques, see Note 1 – Summary of Significant Accounting Principles and Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. The Corporation accounts for certain financial instruments under the fair value option. For more information, see Note 15 – Fair Value Option.


						Bank of America 86

Recurring Fair Value

Assets and liabilities carried at fair value on a recurring basis at September 30, 2026 and December 31, 2025, including financial instruments that the Corporation accounts for under the fair value option, are summarized in the following tables.



	September 30, 2026
	Fair Value Measurements
(Dollars in millions)	Level 1		Level 2		Level 3		Netting Adjustments (1)		Assets/Liabilities at Fair Value
Assets
Time deposits placed and other short-term investments	$	1,370	$	—	$	—	$	—	$	1,370
Federal funds sold and securities borrowed or purchased under agreements to resell	—		655,703		—		(438,181)		217,522
Trading account assets:
U.S. Treasury and government agencies	53,496		198		—		—		53,694
Corporate securities, trading loans and other	—		56,497		2,522		—		59,019
Equity securities	102,829		12,955		391		—		116,175
Non-U.S. sovereign debt	14,933		39,836		218		—		54,987
Mortgage trading loans, MBS and ABS:
U.S. government-sponsored agency guaranteed	—		38,814		5		—		38,819
Mortgage trading loans, ABS and other MBS	—		8,604		1,177		—		9,781
Total trading account assets (2)	171,258		156,904		4,313		—		332,475
Derivative assets	19,261		349,802		4,809		(320,724)		53,148
AFS debt securities:
U.S. Treasury and government agencies	172,808		841		—		—		173,649
Mortgage-backed securities:
Agency	—		37,245		—		—		37,245
Agency-collateralized mortgage obligations	—		15,964		—		—		15,964
Non-agency residential	—		44		4		—		48
Commercial	—		42,476		40		—		42,516
Non-U.S. securities	8,582		37,666		20		—		46,268

Other taxable securities	—		6,149		—		—		6,149
Tax-exempt securities	—		6,975		—		—		6,975
Total AFS debt securities	181,390		147,360		64		—		328,814
Other debt securities carried at fair value:
U.S. Treasury and government agencies	4,342		—		—		—		4,342

Agency MBS	—		5		—		—		5

Non-agency residential MBS	—		111		41		—		152



Non-U.S. and other securities	1,159		11,164		—		—		12,323
Total other debt securities carried at fair value	5,501		11,280		41		—		16,822
Loans and leases	—		3,279		62		—		3,341
Loans held-for-sale	—		3,883		31		—		3,914


Other assets (3)	1,444		2,889		2,136		—		6,469

Total assets (4)	$	380,224	$	1,331,100	$	11,456	$	(758,905)	$	963,875

Liabilities
Interest-bearing deposits in U.S. offices	$	—	$	2,144	$	—	$	—	$	2,144
Federal funds purchased and securities loaned or sold under agreements to repurchase	—		634,843		—		(438,181)		196,662
Trading account liabilities:
U.S. Treasury and government agencies	15,618		619		—		—		16,237
Equity securities	56,750		164		9		—		56,923
Non-U.S. sovereign debt	11,719		10,426		—		—		22,145
Corporate securities and other	—		14,402		90		—		14,492
Mortgage trading loans and ABS	—		8		—		—		8
Total trading account liabilities	84,087		25,619		99		—		109,805
Derivative liabilities	22,703		342,290		6,754		(322,501)		49,246
Short-term borrowings	—		14,044		—		—		14,044
Accrued expenses and other liabilities	1,493		4,005		83		—		5,581
Long-term debt	—		84,390		643		—		85,033
Total liabilities (4)	$	108,283	$	1,107,335	$	7,579	$	(760,682)	$	462,515

(1)Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.

(2)Includes securities with a fair value of $10.7 billion that were segregated in compliance with securities regulations or deposited with clearing organizations. This amount is included in the parenthetical disclosure on the Consolidated Balance Sheet. Trading account assets also includes certain commodities inventory of $1.7 billion that is accounted for at the lower of cost or net realizable value, which is the current selling price less any costs to sell.

(3)Includes MSRs, which are classified as Level 3 assets, of $1.0 billion.

(4)Total recurring Level 3 assets were 0.33 percent of total consolidated assets, and total recurring Level 3 liabilities were 0.24 percent of total consolidated liabilities.


87 Bank of America



	December 31, 2025
	Fair Value Measurements
(Dollars in millions)	Level 1		Level 2		Level 3		Netting Adjustments (1)		Assets/Liabilities at Fair Value
Assets
Time deposits placed and other short-term investments	$	1,242	$	—	$	—	$	—	$	1,242
Federal funds sold and securities borrowed or purchased under agreements to resell	—		672,313		—		(486,822)		185,491
Trading account assets:
U.S. Treasury and government agencies	83,234		3,036		—		—		86,270
Corporate securities, trading loans and other	—		59,456		1,922		—		61,378
Equity securities	77,225		39,110		322		—		116,657
Non-U.S. sovereign debt	5,745		41,014		240		—		46,999
Mortgage trading loans, MBS and ABS:
U.S. government-sponsored agency guaranteed	—		44,691		9		—		44,700
Mortgage trading loans, ABS and other MBS	—		10,024		926		—		10,950
Total trading account assets (2)	166,204		197,331		3,419		—		366,954
Derivative assets	18,469		269,936		3,802		(251,326)		40,881
AFS debt securities:
U.S. Treasury and government agencies	249,025		809		—		—		249,834
Mortgage-backed securities:
Agency	—		33,141		—		—		33,141
Agency-collateralized mortgage obligations	—		19,199		—		—		19,199
Non-agency residential	—		263		9		—		272
Commercial	—		38,472		22		—		38,494
Non-U.S. securities	235		31,488		44		—		31,767

Other taxable securities	—		6,026		278		—		6,304
Tax-exempt securities	—		7,787		—		—		7,787
Total AFS debt securities	249,260		137,185		353		—		386,798
Other debt securities carried at fair value:
U.S. Treasury and government agencies	3,285		—		—		—		3,285


Non-agency residential MBS	—		123		125		—		248



Non-U.S. and other securities	664		11,980		—		—		12,644
Total other debt securities carried at fair value	3,949		12,103		125		—		16,177
Loans and leases	—		3,422		76		—		3,498
Loans held-for-sale	—		2,216		55		—		2,271
Other assets (3)	3,742		3,198		2,118		—		9,058

Total assets (4)	$	442,866	$	1,297,704	$	9,948	$	(738,148)	$	1,012,370

Liabilities
Interest-bearing deposits in U.S. offices	$	—	$	1,223	$	—	$	—	$	1,223
Federal funds purchased and securities loaned or sold under agreements to repurchase	—		709,889		—		(486,822)		223,067
Trading account liabilities:
U.S. Treasury and government agencies	8,174		5		—		—		8,179
Equity securities	58,980		6,063		14		—		65,057
Non-U.S. sovereign debt	4,771		15,644		—		—		20,415
Corporate securities and other	—		12,214		119		—		12,333
Mortgage trading loans and ABS	—		12		—		—		12
Total trading account liabilities	71,925		33,938		133		—		105,996
Derivative liabilities	18,470		274,002		5,115		(255,511)		42,076
Short-term borrowings	—		8,011		40		—		8,051
Accrued expenses and other liabilities	4,656		4,312		28		—		8,996
Long-term debt	—		72,110		481		—		72,591
Total liabilities (4)	$	95,051	$	1,103,485	$	5,797	$	(742,333)	$	462,000

(1)Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.

(2)Includes securities with a fair value of $13.2 billion that were segregated in compliance with securities regulations or deposited with clearing organizations. This amount is included in the parenthetical disclosure on the Consolidated Balance Sheet. Trading account assets also includes certain commodities inventory of $27 million that is accounted for at the lower of cost or net realizable value, which is the current selling price less any costs to sell.

(3)Includes MSRs, which are classified as Level 3 assets, of $946 million.

(4)Total recurring Level 3 assets were 0.29 percent of total consolidated assets, and total recurring Level 3 liabilities were 0.19 percent of total consolidated liabilities.


						Bank of America 88

The following tables present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and nine months ended September 30, 2026 and 2025, including net realized and unrealized gains (losses) included in earnings and accumulated OCI. Transfers into Level 3 occur primarily due

to decreased price observability, and transfers out of Level 3 occur primarily due to increased price observability. Transfers occur on a regular basis for long-term debt instruments due to changes in the impact of unobservable inputs on the value of the embedded derivative in relation to the instrument as a whole.



Level 3 – Fair Value Measurements (1)

	Balance July 1		Total Realized/Unrealized Gains (Losses) in Net Income (2)		Gains (Losses) in OCI (3)		Gross								Gross Transfers into Level 3		Gross Transfers out of Level 3		Balance September 30		Change in Unrealized Gains (Losses) in Net Income Related to Financial Instruments Still Held (2)
(Dollars in millions)							Purchases		Sales		Issuances		Settlements
Three Months Ended September 30, 2026

Trading account assets:

Corporate securities, trading loans and other	$	2,341	$	41	$	—	$	585	$	(220)	$	5	$	(205)	$	134	$	(159)	$	2,522	$	(16)
Equity securities	317		29		—		29		(4)		—		—		34		(14)		391		29
Non-U.S. sovereign debt	236		(3)		—		9		—		—		(24)		—		—		218		(3)
Mortgage trading loans, MBS and ABS	1,215		(28)		—		35		(85)		—		(42)		155		(68)		1,182		(32)
Total trading account assets	4,109		39		—		658		(309)		5		(271)		323		(241)		4,313		(22)
Net derivative assets (liabilities) (4)	(1,761)		263		—		250		(574)		—		188		(196)		(115)		(1,945)		258
AFS debt securities:



Non-agency residential MBS	4		—		—		—		—		—		—		—		—		4		—
Commercial MBS	39		(3)		(4)		6		—		—		—		2		—		40		—



Non-U.S. and other taxable securities	15		—		—		—		—		—		—		5		—		20		—

Total AFS debt securities	58		(3)		(4)		6		—		—		—		7		—		64		—
Other debt securities carried at fair value – Non-agency residential MBS	43		—		—		—		—		—		(2)		—		—		41		—
Loans and leases	66		(2)		—		—		—		—		(2)		—		—		62		(2)

Loans held-for-sale	37		—		—		—		—		—		(6)		—		—		31		(3)
Other assets (5,6)	2,067		89		(1)		21		—		65		(105)		—		—		2,136		80
Trading account liabilities – Equity securities	(19)		4		—		—		—		—		—		—		6		(9)		4
Trading account liabilities – Corporate securities and other	(106)		9		—		(16)		1		(1)		22		(1)		2		(90)		3
Short-term borrowings	(3)		—		—		—		—		—		3		—		—		—		—
Accrued expenses and other liabilities	(75)		(35)		—		—		—		—		42		(15)		—		(83)		(35)
Long-term debt	(592)		(42)		4		—		—		(17)		4		—		—		(643)		(42)

Three Months Ended September 30, 2025

Trading account assets:

Corporate securities, trading loans and other	$	2,152	$	7	$	2	$	447	$	(238)	$	17	$	(365)	$	91	$	(158)	$	1,955	$	(29)
Equity securities	402		(15)		—		44		(17)		—		—		45		(106)		353		(15)
Non-U.S. sovereign debt	253		10		4		5		—		—		(5)		—		—		267		10
Mortgage trading loans, MBS and ABS	916		(27)		—		95		(80)		—		(26)		85		(25)		938		(44)
Total trading account assets	3,723		(25)		6		591		(335)		17		(396)		221		(289)		3,513		(78)
Net derivative assets (liabilities) (4)	(1,187)		(92)		—		163		(389)		—		4		18		523		(960)		(105)
AFS debt securities:



Non-agency residential MBS	3		—		—		—		—		—		—		—		—		3		—
Commercial MBS	472		—		—		17		—		—		(16)		—		—		473		—


Non-U.S. and other taxable securities	394		(1)		—		9		—		—		—		5		(366)		41		(1)

Total AFS debt securities	869		(1)		—		26		—		—		(16)		5		(366)		517		(1)
Other debt securities carried at fair value – Non-agency residential MBS	43		—		—		—		—		—		—		1		—		44		—
Loans and leases (7)	100		1		—		2		—		24		(2)		—		—		125		1

Loans held-for-sale	97		1		—		1		—		—		(9)		—		—		90		(1)
Other assets (5,6)	1,942		14		(3)		161		—		46		(105)		—		—		2,055		—
Trading account liabilities – Equity securities	(7)		—		—		—		—		—		—		—		1		(6)		—
Trading account liabilities – Corporate securities and other	(90)		10		—		(1)		—		(1)		—		(6)		—		(88)		5
Short-term borrowings	—		(7)		—		—		—		—		1		—		—		(6)		(7)
Accrued expenses and other liabilities	(6)		(18)		—		15		—		—		—		—		—		(9)		(18)
Long-term debt	(471)		17		(13)		—		—		—		5		—		—		(462)		17

(1)Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.

(2)Includes gains (losses) reported in earnings in the following income statement line items: Trading account assets/liabilities - market making and similar activities and other income; Net derivative assets (liabilities) - market making and similar activities and other income; AFS debt securities - other income; Loans and leases - other income; Loans held-for-sale - other income; Other assets - market making and similar activities and other income; Short-term borrowings - market making and similar activities; Accrued expenses and other liabilities - other income; Long-term debt - market making and similar activities.

(3)Includes unrealized gains (losses) in OCI on AFS debt securities, foreign currency translation adjustments, derivatives designated in cash flow hedges and the impact of changes in the Corporation’s credit spreads on long-term debt accounted for under the fair value option. Amounts include net unrealized losses of $1 million and $10 million related to financial instruments still held at September 30, 2026 and 2025.

(4)Net derivative assets (liabilities) include derivative assets of $4.8 billion and $4.3 billion and derivative liabilities of $6.8 billion and $5.3 billion at September 30, 2026 and 2025.

(5)Issuances primarily relate to MSRs.

(6)Settlements primarily represent the realization of MSR-modeled cash flows over time.

(7)Issuances represent loan originations.


89 Bank of America



Level 3 – Fair Value Measurements (1)

	Balance January 1		Total Realized/Unrealized Gains (Losses) in Net Income (2)		Gains (Losses) in OCI (3)		Gross								Gross Transfers into Level 3		Gross Transfers out of Level 3		Balance September 30		Change in Unrealized Gains (Losses) in Net Income Related to Financial Instruments Still Held (2)
(Dollars in millions)							Purchases		Sales		Issuances		Settlements
Nine Months Ended September 30, 2026
Trading account assets:

Corporate securities, trading loans and other	$	1,922	$	194	$	4	$	2,098	$	(1,108)	$	38	$	(791)	$	624	$	(459)	$	2,522	$	70
Equity securities	322		29		—		106		(50)		—		(17)		48		(47)		391		35
Non-U.S. sovereign debt	240		4		7		17		(7)		—		(56)		13		—		218		2
Mortgage trading loans, ABS and other MBS	935		(46)		—		331		(276)		—		(108)		517		(171)		1,182		(65)
Total trading account assets	3,419		181		11		2,552		(1,441)		38		(972)		1,202		(677)		4,313		42
Net derivative assets (liabilities) (4)	(1,313)		(545)		—		1,289		(1,886)		—		757		(598)		351		(1,945)		(127)
AFS debt securities:



Non-agency residential MBS	9		—		—		—		—		—		—		4		(9)		4		—
Commercial MBS	22		(3)		(4)		24		—		—		(3)		4		—		40		—


Non-U.S. and other taxable securities	322		1		—		11		—		—		(13)		5		(306)		20		—

Total AFS debt securities	353		(2)		(4)		35		—		—		(16)		13		(315)		64		—
Other debt securities carried at fair value – Non-agency residential MBS	125		1		—		—		—		—		(2)		42		(125)		41		—
Loans and leases	76		(1)		—		—		—		—		(10)		—		(3)		62		(2)
Loans held-for-sale	55		(1)		1		—		—		—		(26)		2		—		31		(2)
Other assets (5,6)	2,118		56		(5)		120		—		173		(326)		—		—		2,136		29


Trading account liabilities – Equity securities	(14)		(1)		—		8		(3)		—		—		(5)		6		(9)		5
Trading account liabilities – Corporate securities and other	(119)		7		—		(30)		4		(3)		55		(13)		9		(90)		3
Short-term borrowings	(40)		40		—		—		—		(5)		5		—		—		—		—
Accrued expenses and other liabilities	(28)		(148)		—		—		—		—		104		(15)		4		(83)		(148)
Long-term debt	(481)		(129)		12		—		—		(75)		30		—		—		(643)		(129)

Nine Months Ended September 30, 2025
Trading account assets:

Corporate securities, trading loans and other	$	1,814	$	196	$	4	$	1,464	$	(909)	$	40	$	(901)	$	567	$	(320)	$	1,955	$	(42)
Equity securities	374		33		—		129		(45)		—		(105)		152		(185)		353		17
Non-U.S. sovereign debt	344		76		27		30		—		—		(186)		—		(24)		267		52
Mortgage trading loans, ABS and other MBS	978		(46)		—		232		(252)		—		(118)		290		(146)		938		(46)
Total trading account assets	3,510		259		31		1,855		(1,206)		40		(1,310)		1,009		(675)		3,513		(19)
Net derivative assets (liabilities) (4)	(1,961)		892		—		915		(1,313)		—		28		(254)		733		(960)		247
AFS debt securities:




Non-agency residential MBS	247		1		—		—		—		—		—		—		(245)		3		1
Commercial MBS	328		(2)		4		254		—		—		(111)		—		—		473		(2)

Non-U.S. and other taxable securities	36		(1)		(3)		515		(1)		—		(2)		5		(508)		41		(1)

Total AFS debt securities	611		(2)		1		769		(1)		—		(113)		5		(753)		517		(2)
Other debt securities carried at fair value – Non-agency residential MBS	149		13		—		—		—		—		(2)		1		(117)		44		13
Loans and leases (7)	82		2		—		2		—		24		(29)		44		—		125		2
Loans held-for-sale	132		28		3		1		(14)		—		(60)		—		—		90		(10)
Other assets (5,6)	1,969		(47)		26		252		—		119		(264)		—		—		2,055		(71)

Trading account liabilities – Equity securities	(10)		1		—		3		—		—		—		(3)		3		(6)		(1)
Trading account liabilities – Corporate securities and other	(110)		28		—		6		(15)		(1)		21		(18)		1		(88)		19
Short-term borrowings	—		(7)		—		—		—		—		1		—		—		(6)		(7)
Accrued expenses and other liabilities	(89)		(80)		—		161		—		—		(1)		—		—		(9)		(27)
Long-term debt	(553)		(39)		(1)		—		—		—		131		—		—		(462)		(22)

(1)Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.

(2)Includes gains (losses) reported in earnings in the following income statement line items: Trading account assets/liabilities - market making and similar activities and other income; Net derivative assets (liabilities) - market making and similar activities and other income; AFS debt securities - other income; Other debt securities carried at fair value - other income; Loans and leases - other income; Loans held-for-sale - other income; Other assets - market making and similar activities and other income; Short-term borrowings - market making and similar activities; Accrued expenses and other liabilities - other income; Long-term debt - market making and similar activities.

(3)Includes unrealized gains (losses) in OCI on AFS debt securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted for under the fair value option. Amounts include net unrealized gains of $16 million and $54 million related to financial instruments still held at September 30, 2026 and 2025.

(4)Net derivative assets (liabilities) include derivative assets of $4.8 billion and $4.3 billion and derivative liabilities of $6.8 billion and $5.3 billion at September 30, 2026 and 2025.

(5)Issuances primarily relate to MSRs.

(6)Settlements primarily represent the realization of MSR-modeled cash flows over time.

(7)Issuances represent loan originations.


						Bank of America 90

The following tables present information about significant unobservable inputs related to the Corporation’s material categories of Level 3 financial assets and liabilities at September 30, 2026 and December 31, 2025.

Quantitative Information about Level 3 Fair Value Measurements at September 30, 2026

(Dollars in millions)

Inputs

Financial Instrument

Fair
Value

Valuation
Technique

Significant Unobservable
Inputs

Ranges of
Inputs

Weighted Average (1)

Loans and Securities (2)

Instruments backed by residential real estate assets

230

Discounted cash flow, Market comparables

Yield

0% to 25%

Trading account assets – Mortgage trading loans, MBS and ABS

123

Prepayment speed

0% to 21% CPR

5% CPR

Loans and leases

Default rate

0% to 7% CDR

7% CDR

AFS debt securities – Non-agency residential

Price

$0 to $115

$73

Other debt securities carried at fair value – Non-agency residential

Loss severity

0% to 85%

Instruments backed by commercial real estate assets

369

Discounted cash

flow, Asset-based approach

Yield

0% to 20%

Trading account assets – Corporate securities, trading loans and other

285

Price

$0 to $100

$61

Trading account assets – Mortgage trading loans, MBS and ABS

AFS debt securities – Commercial

Commercial loans, debt securities and other

3,521

Discounted cash flow, Market comparables

Yield

6% to 25%

Trading account assets – Corporate securities, trading loans and other

2,237

Prepayment speed

20%

n/a

Trading account assets – Non-U.S. sovereign debt

218

Default rate

n/a

Trading account assets – Mortgage trading loans, MBS and ABS

1,015

Loss severity

30%

n/a

AFS debt securities – Non-U.S. and other taxable securities

Price

$0 to $140

$67

Loans held-for-sale

MSRs, equity investments and other

2,527

Discounted cash flow, Market comparables

Price

$0 to $98

$58

Other assets, primarily MSRs and tax-related equity investments

2,136

Yield

7% to 12%

Trading account assets - Equity securities

391

Weighted-average life, fixed rate (5)

0 to 15 years

7 years

Weighted-average life, variable rate (5)

0 to 10 years

5 years

Option-adjusted spread, fixed rate

7% to 14%

Option-adjusted spread, variable rate

9% to 15%

Structured liabilities

Long-term debt

(643)

Discounted cash flow, Market comparables

Yield

17% to 25%

Price

$27 to $103

$91

Natural gas forward price

$1/MMBtu to $7/MMBtu

$3 /MMBtu

Net derivative assets (liabilities)

Credit derivatives

Market comparables, Discounted cash flow, Stochastic recovery correlation model

Credit spreads

9 to 150 bps

41 bps

Default rate

2% CDR

n/a

Credit correlation

43% to 78%

Price

$0 to $123

$97

Equity derivatives

(1,582)

Industry standard derivative pricing (3)

Equity correlation

0% to 100%

60%

Long-dated equity volatilities

0% to 112%

46%

Commodity derivatives

(604)

Discounted cash

flow

Natural gas forward price

$1/MMBtu to $7/MMBtu

$3/MMBtu

Power forward price

$28 to $117

$52

Interest rate derivatives

209

Industry standard derivative pricing (4), Discounted cash flow

Correlation (IR/IR)

(35)% to 70%

Correlation (FX/IR)

(10)% to 35%

Long-dated inflation rates

0% to 17%

Interest rate volatilities

0% to 10%

Total net derivative assets (liabilities)

(1,945)

(1)For loans and securities, structured liabilities and net derivative assets (liabilities), the weighted average is calculated based upon the absolute fair value of the instruments.

(2)The categories are aggregated based upon product type, which differs from financial statement classification. The following is a reconciliation to the line items in the table on page 87: Trading account assets – Corporate securities, trading loans and other of $2.5 billion, Trading account assets - equity securities of $391 million, Trading account assets – Non-U.S. sovereign debt of $218 million, Trading account assets – Mortgage trading loans, MBS and ABS of $1.2 billion, AFS debt securities of $64 million, Other debt securities carried at fair value - Non-agency residential of $41 million, Other assets of $2.1 billion, Loans and leases of $62 million and LHFS of $31 million.

(3)Includes models such as Monte Carlo simulation and Black-Scholes.

(4)Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.

(5)The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions.

CPR = Constant Prepayment Rate

CDR = Constant Default Rate

MMBtu = Million British thermal units

IR = Interest Rate

FX = Foreign Exchange

n/a = not applicable


91 Bank of America

Quantitative Information about Level 3 Fair Value Measurements at December 31, 2025

(Dollars in millions)

Inputs

Financial Instrument

Fair
Value

Valuation
Technique

Significant Unobservable
Inputs

Ranges of
Inputs

Weighted Average (1)

Loans and Securities (2)

Instruments backed by residential real estate assets

327

Discounted cash
flow, Market comparables

Yield

0% to 15%

Trading account assets – Mortgage trading loans, MBS and ABS

120

Prepayment speed

0% to 40% CPR

7% CPR

Loans and leases

Default rate

0% to 7% CDR

7% CDR

AFS debt securities - Non-agency residential

Price

$0 to $115

$53

Other debt securities carried at fair value - Non-agency residential

125

Loss severity

0% to 81%

Instruments backed by commercial real estate assets

373

Discounted cash
flow, Asset based approach

Yield

0% to 5%

Trading account assets – Corporate securities, trading loans and other

304

Price

$0 to $100

$42

Trading account assets – Mortgage trading loans, MBS and ABS

AFS debt securities – Commercial

Commercial loans, debt securities and other

3,006

Discounted cash flow, Market comparables

Yield

4% to 24%

Trading account assets – Corporate securities, trading loans and other

1,618

Prepayment speed

20%

n/a

Trading account assets – Non-U.S. sovereign debt

240

Default rate

n/a

Trading account assets – Mortgage trading loans, MBS and ABS

768

Loss severity

30%

n/a

AFS debt securities – Non-U.S. and other taxable securities

322

Price

$0 to $137

$67

Loans and leases

Loans held-for-sale

Other assets, primarily MSRs and tax-related equity investments

2,118

Discounted cash flow, Market comparables

Price

$10 to $95

$84

Yield

8% to 11%

Weighted-average life, fixed rate (5)

0 to 14 years

6 years

Weighted-average life, variable rate (5)

0 to 11 years

4 years

Option-adjusted spread, fixed rate

7% to 14%

Option-adjusted spread, variable rate

9% to 15%

Structured liabilities

Long-term debt

(481)

Discounted cash flow, Market comparables

Yield

15% to 22%

Price

$29 to $101

$93

Natural gas forward price

$2/MMBtu to $6/MMBtu

$3/MMBtu

Net derivative assets (liabilities)

Credit derivatives

(3)

Market comparables, Discounted cash flow, Stochastic recovery correlation model

Credit spreads

5 to 245 bps

36 bps

Default rate

2% CDR

n/a

Credit correlation

40% to 74%

Price

$0 to $111

$106

Equity derivatives

(1,018)

Industry standard derivative pricing (3)

Equity correlation

0% to 100%

68%

Long-dated equity volatilities

0% to 104%

37%

Commodity derivatives

(664)

Discounted cash

flow

Natural gas forward price

$2/MMBtu to $6/MMBtu

$3/MMBtu

Commodities volatilities

49% to 53%

Power forward price

$29 to $134

$56

Interest rate derivatives

372

Industry standard derivative pricing (4)

Correlation (IR/IR)

(35)% to 70%

Correlation (FX/IR)

(5)% to 58%

Long-dated inflation rates

G(1)% to 20%

Long-dated inflation volatilities

n/a

Interest rates volatilities

(1)% to 1%

Total net derivative assets (liabilities)

(1,313)

(1)For loans and securities, structured liabilities and net derivative assets (liabilities), the weighted average is calculated based upon the absolute fair value of the instruments.

(2)The categories are aggregated based upon product type, which differs from financial statement classification. The following is a reconciliation to the line items in the table on page 88: Trading account assets – Corporate securities, trading loans and other of $1.9 billion, Trading account assets – Non-U.S. sovereign debt of $240 million, Trading account assets – Mortgage trading loans, MBS and ABS of $935 million, AFS debt securities of $353 million, Other debt securities carried at fair value - Non-agency residential of $125 million, Other assets of $2.1 billion, Loans and leases of $76 million and LHFS of $55 million.

(3)Includes models such as Monte Carlo simulation and Black-Scholes.

(4)Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.

(5)The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions.

CPR = Constant Prepayment Rate

CDR = Constant Default Rate

MMBtu = Million British thermal units

IR = Interest Rate

FX = Foreign Exchange

n/a = not applicable

Uncertainty of Fair Value Measurements from Unobservable Inputs

For information on the types of instruments, valuation approaches and the impact of changes in unobservable inputs used in Level 3 measurements, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.


						Bank of America 92

Nonrecurring Fair Value

The Corporation holds certain assets that are measured at fair value only in certain situations (e.g., the impairment of an asset), and these measurements are referred to herein as nonrecurring. The amounts below represent assets still held as of the reporting date for which a nonrecurring fair value adjustment was recorded during the three and nine months ended September 30, 2026 and 2025.



Assets Measured at Fair Value on a Nonrecurring Basis


	September 30, 2026				Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026
(Dollars in millions)	Level 2		Level 3		Gains (Losses)
Assets
Loans held-for-sale	$	237	$	202	$	(30)	$	(56)

Foreclosed properties (1)	—		65		(3)		—


	September 30, 2025				Three Months Ended September 30, 2025		Nine Months Ended September 30, 2025

Assets
Loans held-for-sale	$	157	$	—	$	(1)	$	49

Foreclosed properties (1)	—		63		(2)		1

(1)Amounts are included in other assets on the Consolidated Balance Sheet and represent the carrying value of foreclosed properties that were written down subsequent to their initial classification as foreclosed properties. Losses on foreclosed properties include losses recorded during the first 90 days after transfer of a loan to foreclosed properties.

The table below presents information about significant unobservable inputs utilized in the Corporation's nonrecurring Level 3 fair value measurements during the nine months ended September 30, 2026.

Quantitative Information about Nonrecurring Level 3 Fair Value Measurements

Inputs

Financial Instrument

Fair Value

Valuation
Technique

Significant Unobservable
Inputs

Ranges of
Inputs

Weighted

Average (1)

(Dollars in millions)

Nine Months Ended September 30, 2026

Loans held-for-sale

202

Market Comparables

Price

$17 to $90

$68

(1)The weighted average is calculated based upon the fair value of the loans.

There were no significant Level 3 instruments held as of December 31, 2025 that had nonrecurring fair value measurements for the year ended December 31, 2025.

NOTE 15 Fair Value Option

The Corporation elects to account for certain financial instruments under the fair value option. For more information on the primary financial instruments for which the fair value option elections have been made, see Note 21 – Fair Value Option to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. The following tables provide

information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at September 30, 2026 and December 31, 2025, and information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for the three and nine months ended September 30, 2026 and 2025.


93 Bank of America



Fair Value Option Elections

	September 30, 2026						December 31, 2025
(Dollars in millions)	Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal		Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal
Federal funds sold and securities borrowed or purchased under agreements to resell	$	217,522	$	217,549	$	(27)	$	185,491	$	185,324	$	167
Trading account assets - loans	7,610		21,749		(14,139)		10,230		24,475		(14,245)
Trading account assets - other	8,090		n/a		n/a		16,791		n/a		n/a
Loans and leases (1)	3,341		3,389		(48)		3,498		3,594		(96)
Loans held-for-sale (2)	3,914		4,603		(689)		2,271		2,868		(597)

Other assets	4,043		n/a		n/a		4,054		n/a		n/a
Long-term deposits	2,144		2,288		(144)		1,223		1,385		(162)
Federal funds purchased and securities loaned or sold under agreements to repurchase	196,662		196,709		(47)		223,067		223,087		(20)
Short-term borrowings	14,044		14,000		44		8,051		8,046		5
Unfunded loan commitments	116		n/a		n/a		67		n/a		n/a
Accrued expenses and other liabilities	3,938		3,889		49		3,767		3,628		139
Long-term debt	85,033		90,056		(5,023)		72,591		76,534		(3,943)

(1) At September 30, 2026 and December 31, 2025, the fair values of consumer and commercial loans accounted for under the fair value option that were 90 days or more past due and/or on nonaccrual status were not significant.

(2) A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.

n/a = not applicable



Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option

	Three Months Ended September 30
	2026						2025
(Dollars in millions)	Market making and similar activities		Other Income		Total		Market making and similar activities		Other Income		Total

Federal funds sold and securities borrowed or purchased under agreements to resell	$	(92)	$	(1)	$	(93)	$	298	$	(2)	$	296
Trading account assets - loans	(28)		4		(24)		(8)		—		(8)
Trading account assets - other (1)	404		—		404		(673)		—		(673)
Loans and leases	(296)		(15)		(311)		59		10		69
Loans held-for-sale (2)	—		(77)		(77)		—		10		10




Short-term borrowings	449		—		449		(48)		—		(48)
Unfunded loan commitments	—		(8)		(8)		—		2		2
Accrued expenses and other liabilities	(57)		(28)		(85)		(1)		(18)		(19)
Long-term debt (3)	2,766		(4)		2,762		(319)		(3)		(322)
Other (4)	71		(9)		62		(149)		(15)		(164)
Total	$	3,217	$	(138)	$	3,079	$	(841)	$	(16)	$	(857)


















	Nine Months Ended September 30
	2026						2025
Federal funds sold and securities borrowed or purchased under agreements to resell	$	(252)	$	(5)	$	(257)	$	621	$	(5)	$	616
Trading account assets - loans	218		6		224		164		3		167
Trading account assets - other (1)	(304)		—		(304)		1,161		—		1,161
Loans and leases	(17)		(25)		(42)		140		8		148
Loans held-for-sale (2)	—		(103)		(103)		—		87		87




Short-term borrowings	214		—		214		21		—		21
Unfunded loan commitments	—		(48)		(48)		—		(18)		(18)
Accrued expenses and other liabilities	(54)		(218)		(272)		(7)		(27)		(34)
Long-term debt (3)	1,018		(20)		998		(1,196)		(21)		(1,217)
Other (4)	132		(47)		85		(424)		(184)		(608)
Total	$	955	$	(460)	$	495	$	480	$	(157)	$	323

(1) The gains (losses) in market making and similar activities are primarily offset by (losses) gains on trading liabilities that hedge these assets.

(2) Includes the value of IRLCs on funded loans, including those sold during the period.

(3) The net gains (losses) in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by (losses) gains on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 12 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

(4) Includes gains (losses) on other assets, long-term deposits and federal funds purchased and securities loaned or sold under agreements to repurchase.


						Bank of America 94



Gains (Losses) Related to Borrower-specific Credit Risk for Assets and Liabilities Accounted for Under the Fair Value Option

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025
Trading account assets - loans	$	(20)	$	(4)	$	(127)	$	109
Loans and leases	(16)		11		(26)		9
Loans held-for-sale	(3)		(2)		(16)		5
Unfunded loan commitments	(8)		2		(48)		(18)

NOTE 16 Fair Value of Financial Instruments

The following disclosures include financial instruments that are not carried at fair value or only a portion of the ending balance is carried at fair value on the Consolidated Balance Sheet. Certain loans, deposits, long-term debt, unfunded lending commitments and other financial instruments are accounted for under the fair value option. For more information, see Note 21 – Fair Value Option to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

Fair Value of Financial Instruments

The carrying values and fair values by fair value hierarchy of certain financial instruments where only a portion of the ending balance was carried at fair value at September 30, 2026 and December 31, 2025 are presented in the table below.



Fair Value of Financial Instruments

			Fair Value
	Carrying Value		Level 2		Level 3		Total
(Dollars in millions)	September 30, 2026
Financial assets
Loans	$	1,215,776	$	44,234	$	1,146,142	$	1,190,376
Loans held-for-sale	8,102		7,430		672		8,102
Financial liabilities
Deposits (1)	2,038,758		2,039,641		—		2,039,641
Long-term debt	318,687		321,264		1,102		322,366
Commercial unfunded lending commitments (2)	1,295		116		6,455		6,571

	December 31, 2025
Financial assets
Loans	$	1,149,093	$	51,136	$	1,085,303	$	1,136,439
Loans held-for-sale	5,165		4,720		445		5,165
Financial liabilities
Deposits (1)	2,018,729		2,020,072		—		2,020,072
Long-term debt	317,816		323,681		725		324,406
Commercial unfunded lending commitments (2)	1,244		67		6,673		6,740

(1) Includes demand deposits of $1.2 trillion and $1.1 trillion with no stated maturities at September 30, 2026 and December 31, 2025.

(2) The carrying value of commercial unfunded lending commitments is included in accrued expenses and other liabilities on the Consolidated Balance Sheet. The Corporation does not estimate the fair value of consumer unfunded lending commitments because, in many instances, the Corporation can reduce or cancel these commitments by providing notice to the borrower. For more information on commitments, see Note 10 – Commitments and Contingencies.


95 Bank of America

NOTE 17 Business Segment Information

The Corporation reports its results of operations through the following four business segments: Consumer Banking, Global Wealth & Investment Management, Global Banking and Global Markets, with the remaining operations recorded in All Other. For more information, see Note 23 – Business Segment Information to the Consolidated Financial Statements of the

Corporation’s 2025 Annual Report on Form 10-K. The following tables present net income (loss) and the components thereto (with net interest income on an FTE basis for the business segments, All Other and the total Corporation) for the three and nine months ended September 30, 2026 and 2025, and total assets at September 30, 2026 and 2025 for each business segment, as well as All Other.



Results of Business Segments and All Other (1)

At and for the three months ended September 30	Total Corporation (2)					Consumer Banking				Global Wealth & Investment Management

(Dollars in millions)			2026			2025				2026			2025			2026			2025
Net interest income			$	16,610		$	15,387			$	9,431		$	8,988		$	1,963		$	1,800
Noninterest income			13,509			13,807				2,141			2,178			5,155			4,512
Total revenue, net of interest expense			30,119			29,194				11,572			11,166			7,118			6,312
Provision for credit losses			1,269			1,295				1,045			1,009			17			4
Noninterest expense
Compensation and benefits (3)		10,969			10,523				1,550			1,535			3,363			2,969
Other noninterest expense		8,753			6,814				4,283			4,040			1,685			1,653
Total noninterest expense		19,722			17,337				5,833			5,575			5,048			4,622
Income before income taxes			9,128			10,562				4,694			4,582			2,053			1,686
Income tax expense			2,195			2,230				1,173			1,145			513			421
Net income			$	6,933		$	8,332			$	3,521		$	3,437		$	1,540		$	1,265
Period-end total assets			$	3,427,704		$	3,403,149			$	1,034,324		$	1,032,826		$	328,816		$	325,605
















			Global Banking					Global Markets					All Other
			2026			2025				2026			2025			2026			2025
Net interest income			$	3,259		$	3,141			$	2,008		$	1,484		$	(51)		$	(26)
Noninterest income			2,946			3,048				3,859			4,741			(592)			(672)
Total revenue, net of interest expense			6,205			6,189				5,867			6,225			(643)			(698)
Provision for credit losses			210			269				3			9			(6)			4
Noninterest expense
Compensation and benefits (3)		1,194			1,153				1,005			985			—			—
Other noninterest expense		2,056			1,891				3,190			2,910			1,396			201
Total noninterest expense		3,250			3,044				4,195			3,895			1,396			201
Income (loss) before income taxes			2,745			2,876				1,669			2,321			(2,033)			(903)
Income tax expense (benefit)			755			791				434			673			(680)			(800)
Net income (loss)			$	1,990		$	2,085			$	1,235		$	1,648		$	(1,353)		$	(103)
Period-end total assets			$	784,081		$	737,640			$	1,052,335		$	997,908		$	228,148		$	309,170

(1)Segment results are presented on an FTE basis and include additional net interest income and income tax expense, related to tax-exempt securities, of $161 million and $154 million for the three months ended September 30, 2026 and 2025, respectively, as compared to the Consolidated Statement of Income.

(2)There were no material intersegment revenues.

(3)Represents the compensation and benefits directly incurred by each segment.


						Bank of America 96



Results of Business Segments and All Other (1)

At and for the nine months ended September 30	Total Corporation (2)					Consumer Banking				Global Wealth & Investment Management

(Dollars in millions)			2026			2025				2026			2025			2026			2025
Net interest income			$	48,677		$	44,790			$	27,630		$	26,219		$	5,713		$	5,327
Noninterest income			43,597			40,384				6,327			6,253			14,988			12,938
Total revenue, net of interest expense			92,274			85,174				33,957			32,472			20,701			18,265
Provision for credit losses			3,972			4,367				3,337			3,583			30			38
Noninterest expense
Compensation and benefits (3)		33,290			31,744				4,691			4,619			9,892			8,967
Other noninterest expense		23,590			20,546				12,780			12,349			5,070			4,907
Total noninterest expense		56,880			52,290				17,471			16,968			14,962			13,874
Income before income taxes			31,422			28,517				13,149			11,921			5,709			4,353
Income tax expense			6,831			5,655				3,287			2,980			1,427			1,088
Net income			$	24,591		$	22,862			$	9,862		$	8,941		$	4,282		$	3,265
Period-end total assets			$	3,427,704		$	3,403,149			$	1,034,324		$	1,032,826		$	328,816		$	325,605
















			Global Banking					Global Markets					All Other
			2026			2025				2026			2025			2026			2025
Net interest income			$	9,687		$	9,373			$	5,780		$	3,940		$	(133)		$	(69)
Noninterest income			9,041			8,497				15,218			14,852			(1,977)			(2,156)
Total revenue, net of interest expense			18,728			17,870				20,998			18,792			(2,110)			(2,225)
Provision for credit losses			610			700				19			59			(24)			(13)
Noninterest expense
Compensation and benefits (3)		3,579			3,532				3,224			2,980			—			—
Other noninterest expense		6,093			5,766				9,825			8,532			1,726			638
Total noninterest expense		9,672			9,298				13,049			11,512			1,726			638
Income (loss) before income taxes			8,446			7,872				7,930			7,221			(3,812)			(2,850)
Income tax expense (benefit)			2,323			2,165				2,062			2,094			(2,268)			(2,672)
Net income (loss)			$	6,123		$	5,707			$	5,868		$	5,127		$	(1,544)		$	(178)
Period-end total assets			$	784,081		$	737,640			$	1,052,335		$	997,908		$	228,148		$	309,170

(1)Segment results are presented on an FTE basis and include additional net interest income and income tax expense, related to tax-exempt securities, of $486 million and $444 million for the nine months ended September 30, 2026 and 2025, respectively, as compared to the Consolidated Statement of Income.

(2)There were no material intersegment revenues.

(3)Represents the compensation and benefits directly incurred by each segment.


97 Bank of America

The table below presents noninterest income and the associated components for the three and nine months ended September 30, 2026 and 2025 for each business segment, All Other and the total Corporation. For more information, see Note 2 – Net Interest Income and Noninterest Income.



Noninterest Income by Business Segment and All Other

	Total Corporation				Consumer Banking				Global Wealth & Investment Management
	Three Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025		2026		2025
Fees and commissions:
Card income
Interchange fees	$	894	$	990	$	689	$	785	$	(19)	$	(12)
Other card income	667		639		643		618		19		18
Total card income	1,561		1,629		1,332		1,403		—		6
Service charges
Deposit-related fees	1,322		1,267		641		645		13		10
Lending-related fees	354		365		—		—		18		20
Total service charges	1,676		1,632		641		645		31		30
Investment and brokerage services
Asset management fees	4,630		3,972		83		64		4,550		3,911
Brokerage fees	1,131		1,091		25		30		406		423
Total investment and brokerage services	5,761		5,063		108		94		4,956		4,334
Investment banking fees
Underwriting income	981		992		—		—		84		63
Syndication fees	347		438		—		—		—		—
Financial advisory services	471		583		—		—		2		2
Total investment banking fees	1,799		2,013		—		—		86		65
Total fees and commissions	10,797		10,337		2,081		2,142		5,073		4,435
Market making and similar activities	2,360		3,203		7		5		33		31
Other income (loss)	352		267		53		31		49		46
Total noninterest income	$	13,509	$	13,807	$	2,141	$	2,178	$	5,155	$	4,512


	Global Banking				Global Markets				All Other
	Three Months Ended September 30
	2026		2025		2026		2025		2026		2025
Fees and commissions:
Card income
Interchange fees	$	207	$	200	$	17	$	17	$	—	$	—
Other card income	5		4		—		—		—		(1)
Total card income	212		204		17		17		—		(1)
Service charges
Deposit-related fees	653		597		15		14		—		1
Lending-related fees	277		266		59		79		—		—
Total service charges	930		863		74		93		—		1
Investment and brokerage services
Asset management fees	—		—		—		—		(3)		(3)
Brokerage fees	17		24		683		614		—		—
Total investment and brokerage services	17		24		683		614		(3)		(3)
Investment banking fees
Underwriting income	363		398		559		572		(25)		(41)
Syndication fees	186		221		160		217		1		—
Financial advisory services	422		536		48		45		(1)		—
Total investment banking fees	971		1,155		767		834		(25)		(41)
Total fees and commissions	2,130		2,246		1,541		1,558		(28)		(44)
Market making and similar activities	69		73		2,554		3,141		(303)		(47)
Other income (loss)	747		729		(236)		42		(261)		(581)
Total noninterest income	$	2,946	$	3,048	$	3,859	$	4,741	$	(592)	$	(672)


						Bank of America 98



Noninterest Income by Business Segment and All Other

	Total Corporation				Consumer Banking				Global Wealth & Investment Management
	Nine Months Ended September 30
(Dollars in millions)	2026		2025		2026		2025		2026		2025
Fees and commissions:
Card income
Interchange fees	$	2,706	$	2,942	$	2,087	$	2,316	$	(47)	$	(25)
Other card income	1,931		1,851		1,864		1,799		54		51
Total card income	4,637		4,793		3,951		4,115		7		26
Service charges
Deposit-related fees	3,964		3,760		1,918		1,890		41		35
Lending-related fees	1,092		1,048		—		—		52		50
Total service charges	5,056		4,808		1,918		1,890		93		85
Investment and brokerage services
Asset management fees	13,369		11,408		235		177		13,144		11,241
Brokerage fees	3,586		3,248		81		85		1,276		1,215
Total investment and brokerage services	16,955		14,656		316		262		14,420		12,456
Investment banking fees
Underwriting income	3,152		2,568		—		—		251		197
Syndication fees	1,044		1,096		—		—		—		—
Financial advisory services	1,582		1,300		—		—		5		2
Total investment banking fees	5,778		4,964		—		—		256		199
Total fees and commissions	32,426		29,221		6,185		6,267		14,776		12,766
Market making and similar activities	10,174		9,940		21		19		96		93
Other income (loss)	997		1,223		121		(33)		116		79
Total noninterest income	$	43,597	$	40,384	$	6,327	$	6,253	$	14,988	$	12,938


	Global Banking				Global Markets				All Other
	Nine Months Ended September 30
	2026		2025		2026		2025		2026		2025
Fees and commissions:
Card income
Interchange fees	$	617	$	601	$	49	$	50	$	—	$	—
Other card income	13		12		—		—		—		(11)
Total card income	630		613		49		50		—		(11)
Service charges
Deposit-related fees	1,958		1,786		44		45		3		4
Lending-related fees	808		767		232		231		—		—
Total service charges	2,766		2,553		276		276		3		4
Investment and brokerage services
Asset management fees	—		—		—		—		(10)		(10)
Brokerage fees	57		65		2,172		1,883		—		—
Total investment and brokerage services	57		65		2,172		1,883		(10)		(10)
Investment banking fees
Underwriting income	1,191		1,042		1,854		1,514		(144)		(185)
Syndication fees	545		561		498		535		1		—
Financial advisory services	1,436		1,166		142		132		(1)		—
Total investment banking fees	3,172		2,769		2,494		2,181		(144)		(185)
Total fees and commissions	6,625		6,000		4,991		4,390		(151)		(202)
Market making and similar activities	209		207		10,697		10,063		(849)		(442)
Other income (loss)	2,207		2,290		(470)		399		(977)		(1,512)
Total noninterest income	$	9,041	$	8,497	$	15,218	$	14,852	$	(1,977)	$	(2,156)


99 Bank of America

Glossary

Alt-A Mortgage – A type of U.S. mortgage that is considered riskier than A-paper, or “prime,” and less risky than “subprime,” the riskiest category. Typically, Alt-A mortgages are characterized by borrowers with less than full documentation, lower credit scores and higher LTVs.

Assets Under Management (AUM) – The total market value of assets under the investment advisory and/or discretion of GWIM which generate asset management fees based on a percentage of the assets’ market values. AUM reflects assets that are generally managed for institutional, high net worth and retail clients, and are distributed through various investment products including mutual funds, other commingled vehicles and separate accounts.

Banking Book – All on- and off-balance sheet financial instruments of the Corporation except for those positions that are held for trading purposes.

Brokerage and Other Assets – Non-discretionary client assets which are held in brokerage accounts or held for safekeeping.

Committed Credit Exposure – Any funded portion of a facility plus the unfunded portion of a facility on which the lender is legally bound to advance funds during a specified period under prescribed conditions.

Credit Derivatives – Contractual agreements that provide protection against a specified credit event on one or more referenced obligations.

Credit Valuation Adjustment (CVA) – A portfolio adjustment required to properly reflect the counterparty credit risk exposure as part of the fair value of derivative instruments.

Debit Valuation Adjustment (DVA) – A portfolio adjustment required to properly reflect the Corporation’s own credit risk exposure as part of the fair value of derivative instruments and/or structured liabilities.

Funding Valuation Adjustment (FVA) – A portfolio adjustment required to include funding costs on uncollateralized derivatives and derivatives where the Corporation is not permitted to use the collateral it receives.

Interest Rate Lock Commitment (IRLC) – Commitment with a loan applicant in which the loan terms are guaranteed for a designated period of time subject to credit approval.

Letter of Credit – A document issued on behalf of a customer to a third party promising to pay the third party upon presentation of specified documents. A letter of credit effectively substitutes the issuer’s credit for that of the customer.

Loan-to-value (LTV) – A commonly used credit quality metric. LTV is calculated as the outstanding carrying value of the loan divided by the estimated value of the property securing the loan.

Macro Products – Include currencies, interest rates and commodities products.

Margin Receivable – An extension of credit secured by eligible securities in certain brokerage accounts.

Matched Book – Repurchase and resale agreements or securities borrowed and loaned transactions where the overall asset and liability position is similar in size and/or maturity. Generally, these are entered into to accommodate customers where the Corporation earns the interest rate spread.

Mortgage Servicing Right (MSR) – The right to service a mortgage loan when the underlying loan is sold or securitized. Servicing includes collections for principal, interest and escrow payments from borrowers and accounting for and remitting principal and interest payments to investors.

Nonperforming Loans and Leases – Includes loans and leases that have been placed on nonaccrual status, including nonaccruing loans whose contractual terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.

Prompt Corrective Action (PCA) – A framework established by the U.S. banking regulators requiring banks to maintain certain levels of regulatory capital ratios, comprised of five categories of capitalization: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.” Insured depository institutions that fail to meet certain of these capital levels are subject to increasingly strict limits on their activities, including their ability to make capital distributions, pay management compensation, grow assets and take other actions.

Subprime Loans – Although a standard industry definition for subprime loans (including subprime mortgage loans) does not exist, the Corporation defines subprime loans as specific product offerings for higher risk borrowers.

Value-at-Risk (VaR) – VaR is a model that simulates the value of a portfolio under a range of hypothetical scenarios in order to generate a distribution of potential gains and losses. VaR represents the loss the portfolio is expected to experience with a given confidence level based on historical data. A VaR model is an effective tool in estimating ranges of potential gains and losses on our trading portfolios.


						Bank of America 100

Key Metrics

Active Digital Banking Users – Mobile and/or online active users over the past 90 days.

Active Mobile Banking Users – Mobile active users over the past 90 days.

Book Value – Ending common shareholders’ equity divided by ending common shares outstanding.

Common Equity Ratio – Ending common shareholders’ equity divided by ending total assets.

Deposit Spread – Annualized net interest income divided by average deposits.

Dividend Payout Ratio – Common dividends declared divided by net income applicable to common shareholders.

Efficiency Ratio – Noninterest expense divided by total revenue, net of interest expense.

Gross Interest Yield – Effective annual percentage rate divided by average loans.

Net Interest Yield – Net interest income divided by average total interest-earning assets.

Operating Margin – Income before income taxes divided by total revenue, net of interest expense.

Return on Average Allocated Capital – Adjusted net income divided by allocated capital.

Return on Average Assets – Net income divided by total average assets.

Return on Average Common Shareholders’ Equity – Net income applicable to common shareholders divided by average common shareholders’ equity.

Return on Average Shareholders’ Equity – Net income divided by average shareholders’ equity.

Return on Average Tangible Common Shareholders’ Equity – Net income applicable to common shareholders as a percentage of average common shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights (MSRs)), net of related deferred tax liabilities.

Risk-adjusted Margin – Difference between total revenue, net of interest expense, and net charge-offs divided by average loans.

Tangible Common Equity – Ending common shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights (MSRs)), net of related deferred tax liabilities, divided by total tangible assets.


101 Bank of America

Acronyms


ABS			Asset-backed securities
AFS			Available-for-sale

ALM			Asset and liability management

AUM			Assets under management


BANA			Bank of America, National Association
BHC			Bank holding company

BofAS			BofA Securities, Inc.
BofASE			BofA Securities Europe SA
bps			Basis points



CCAR			Comprehensive Capital Analysis and Review


CDO			Collateralized debt obligation



CET1			Common equity tier 1

CFTC			Commodity Futures Trading Commission

CLO			Collateralized loan obligation
CLTV			Combined loan-to-value



CVA			Credit valuation adjustment


DVA			Debit valuation adjustment





EPS			Earnings per common share









FHA			Federal Housing Administration

FHLB			Federal Home Loan Bank
FHLMC			Freddie Mac
FICC			Fixed income, currencies and commodities
FICO			Fair Isaac Corporation (credit score)

FINRA			Financial Industry Regulatory Authority, Inc.

FNMA			Fannie Mae
FTE			Fully taxable-equivalent
FVA			Funding valuation adjustment
GAAP			Accounting principles generally accepted in the United States of America
GLS			Global Liquidity Sources
GNMA			Government National Mortgage Association
G-SIB			Global systemically important bank












































GWIM			Global Wealth & Investment Management
HELOC			Home equity line of credit
HQLA			High Quality Liquid Assets
HTM			Held-to-maturity


IRLC			Interest rate lock commitment

ISDA			International Swaps and Derivatives Association, Inc.
LCR			Liquidity Coverage Ratio

LHFS			Loans held-for-sale


LTV			Loan-to-value


MBS			Mortgage-backed securities
MD&A			Management’s Discussion and Analysis of Financial Condition and Results of Operations

MLI			Merrill Lynch International
MLPF&S			Merrill Lynch, Pierce, Fenner & Smith Incorporated

MSA			Metropolitan Statistical Area
MSR			Mortgage servicing right


NPR			Notice of proposed rulemaking
NSFR			Net Stable Funding Ratio

OCC			Office of the Comptroller of the Currency

OCI			Other comprehensive income


OREO			Other real estate owned
OTC			Over-the-counter

PCA			Prompt Corrective Action






RWA			Risk-weighted assets


SBLC			Standby letter of credit

SCB			Stress capital buffer

SEC			Securities and Exchange Commission

SLR			Supplementary leverage ratio
SOFR			Secured Overnight Financing Rate



TLAC			Total loss-absorbing capacity




VA			U.S. Department of Veterans Affairs
VaR			Value-at-Risk
VIE			Variable interest entity


						Bank of America 102

Part II. Other Information

Bank of America Corporation and Subsidiaries

Item 1. Legal Proceedings

See Litigation and Regulatory Matters in Note 10 – Commitments and Contingencies to the Consolidated Financial Statements, which is incorporated by reference in this Item 1, for litigation and regulatory disclosure that supplements the disclosure in Note 12 – Commitments and Contingencies to the

Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.

Item 1A. Risk Factors

There are no material changes from the risk factors set forth under Part 1, Item 1A. Risk Factors of the Corporation’s 2025 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The table below presents share repurchase activity for the three months ended September 30, 2026. The primary source of funds for cash distributions by the Corporation to its shareholders is dividends received from its banking subsidiaries. Each of the banking subsidiaries is subject to various regulatory policies and requirements relating to the payment of dividends, including requirements to maintain capital above regulatory minimums. All of the Corporation’s preferred stock outstanding has preference over the Corporation’s common stock with respect to payment of dividends.



(Dollars in millions, except per share information; shares in thousands)	Total Common Shares Repurchased (1,2)	Weighted-Average Per Share Price		Total Shares Purchased as Part of Publicly Announced Programs (2)	Remaining Buyback Authority Amounts (2)
July 1 - 31, 2026	29,222	$	61.59	28,928	$	15,200
August 1 - 31, 2026	36,864	63.74		36,134	12,921
September 1 - 30, 2026	31,665	60.81		31,572	11,019
Three months ended September 30, 2026	97,751	62.15		96,634

(1)Includes one million shares of the Corporation's common stock acquired by the Corporation in connection with satisfaction of tax withholding obligations on vested restricted stock or restricted stock units and certain forfeitures and terminations of employment-related awards and for potential re-issuance to certain employees under equity incentive plans.

(2)On July 23, 2025, the Corporation’s Board of Directors authorized and announced a $40 billion common stock repurchase program (2025 Repurchase Program), effective August 1, 2025, to replace the previously disclosed repurchase program, which expired on August 1, 2025. During the three months ended September 30, 2026, pursuant to the 2025 Repurchase Program, the Corporation repurchased approximately 97 million shares, or $6.0 billion, of its common stock. For more information, see Capital Management – CCAR and Capital Planning in the MD&A on page 19 and Note 11 – Shareholders’ Equity to the Consolidated Financial Statements.

Pursuant to the terms of the Corporation’s 7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L (Series L Preferred Stock), a holder may elect to convert each share of Series L Preferred Stock for 20 shares of the Corporation’s common stock (Common Stock). On September 25, 2026, 28 shares of Series L Preferred Stock were converted into 560 shares of Common Stock at the election of the holder. The shares of Common Stock were issued in reliance upon the exemption from registration in Section 3(a)(9) of the Securities Act of 1933, as amended, for securities exchanged by the issuer with an existing security holder where no commission or other remuneration is paid or given directly or indirectly by the issuer for soliciting such exchange.

Item 5. Other Information

Trading Arrangements

During the fiscal quarter ended September 30, 2026, none of the Corporation’s directors or officers as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended (Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (in each case, as defined in Item 408 of Regulation S-K) for the purchase or sale of the Corporation’s securities.

Disclosure Pursuant to Section 13(r) of the Securities Exchange Act of 1934

Pursuant to Section 13(r) of the Exchange Act, an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure may be required even where the activities, transactions or dealings were conducted in compliance with applicable law. Except as set forth below, as of the date of this Quarterly Report on Form 10-Q, the Corporation

is not aware of any other activity, transaction or dealing by any of its affiliates during the quarter ended September 30, 2026 that requires disclosure under Section 13(r) of the Exchange Act.

During the third quarter of 2026, Bank of America, National Association (BANA), a U.S. subsidiary of Bank of America Corporation, processed one authorized wire payment totaling $30,000 pursuant to a general license issued by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). The payment was received from a non-sanctioned party for legal services provided by a U.S.-based law firm to a sanctioned individual. There was no measurable gross revenue or net profit to the Corporation relating to this transaction, except nominal fees received by BANA for processing the payment.

The Corporation may in the future engage in authorized transactions for its clients to the extent permitted by U.S. law.


103 Bank of America

Item 6. Exhibits



			Incorporated by Reference
Exhibit No.	Description	Notes	Form	Exhibit	Filing Date	File No.

3.1	Restated Certificate of Incorporation, as amended and in effect on the date hereof	1

3.2	Amended and Restated Bylaws of the Corporation as in effect on the date hereof		10-Q	3.2	7/30/24	1-6523

22	Subsidiary Issuers of Guaranteed Securities		10-K	22	2/25/26	1-6523

31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	1

31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	1

32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	2

32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	2

101.INS	Inline XBRL Instance Document	3

101.SCH	Inline XBRL Taxonomy Extension Schema Document	1

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	1

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	1

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	1

101.DEF	Inline XBRL Taxonomy Extension Definitions Linkbase Document	1

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(1)Filed herewith.

(2)Furnished herewith. This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

(3)The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Bank of America Corporation

Registrant

Date:

October 30, 2026

/s/ Johnbull E. Okpara

Johnbull E. Okpara
Chief Accounting Officer


						Bank of America 104