10-K 0000070858-26-000157 (2026-02-25) vs 10-K 0000070858-25-000139 (2025-02-25)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 16,535 |
20.1% |
| MD&A | Item 7 | 38,305 |
15.6% |
| Legal Proceedings | Item 3, via Note 12 – Commitments and Contingencies | 3,384 |
23.5% |
| Accounting Policies | Item 8, Note 1 – Summary of Significant Accounting Principles | 8,875 |
13.4% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Accounting Policies 237 words changed in this paragraph; it is 32% similar to last year's version.
Debt securities are reported on the Consolidated Balance Sheet at their trade date. Their classification is dependent on the purpose for which the securities were acquired. Debt securities purchased for use in the Corporation’s trading activities are reported in trading account assets at fair value with unrealized gains and losses included in market making and similar activities. Substantially all other debt securities purchased are used in the Corporation’s asset and liability management (ALM) activities and are reported on the Consolidated Balance Sheet as either debt securities carried at fair value or as held-to-maturity Held-to-maturity (HTM) debt securities. Debt securities carried at fair value are either available-for-sale (AFS) securities with unrealized gains and losses net-of-tax included in accumulated OCI or carried at fair value with unrealized gains and losses reported in market making and similar activities. HTM debt securities are debt securities that management has the intent and ability to hold to maturity and are recognized at their trade date and reported at amortized cost. If Interest is recognized in the same manner as debt securities carried at fair value. For certain U.S. Agency mortgage-backed-securities, if more than 85 percent of the principal has been collected on level-payment mortgage-backed HTM debt securities since their acquisition, the HTM debt securities, if disposed, are treated as matured for classification purposes. The Corporation separately evaluates its HTM debt securities for any credit losses, of which substantially all qualify for the zero-loss credit assumption. For the remaining securities, the Corporation performs a discounted cash flow analysis to estimate any credit losses, which are then recognized as either credit loss expense or a reversal of credit loss expense in other income for the amount necessary to adjust the debt securities valuation allowance to its current estimate of expected credit losses.
Source: Item 8, Note 1 – Summary of Significant Accounting Principles, 10-K 0000070858-26-000157 vs Item 8, Note 1 – Summary of Significant Accounting Principles, 10-K 0000070858-25-000139
MD&A 185 words changed in this paragraph; it is 73% similar to last year's version.
You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of this Annual Report on Form 10-K: and in any of the Corporation’s subsequent U.S. Securities and Exchange Commission (SEC) filings: the Corporation’s potential judgments, orders, settlements, penalties, fines and reputational damage, which are inherently difficult to predict, resulting from pending, threatened or future litigation and regulatory inquiries, demands, requests, investigations, proceedings and enforcement actions, which the Corporation is subject to in the ordinary course of business, including matters related to our processing of unemployment benefits for California and certain other states, the features of our automatic credit card payment service, the adequacy of the Corporation’s anti-money laundering and economic sanctions programs and the processing of electronic payments, including through the Zelle network, and related fraud, which are in various stages; in connection with ongoing litigation, the impact of certain changes to Visa’s and Mastercard’s respective card payment network rules and reductions in interchange fees for U.S.-based merchants; the possibility that the Corporation’s future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, and regulatory and government actions; the Corporation’s ability to resolve representations impact of U.S. and warranties repurchase global interest rates (including the potential for ongoing fluctuations in interest rates), inflation, currency exchange rates, economic conditions, trade policies and related claims; tensions, including changes in, or the risks related to the discontinuation of reference rates, including increased expenses and litigation imposition of, tariffs and/or trade barriers and the effectiveness of hedging strategies; 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 U.S. and global interest rates (including the potential for ongoing adjustments in interest rates), inflation, currency exchange rates, economic conditions, trade policies and tensions, including increased tariffs, and geopolitical instability; the impact of the interest rate, inflationary, macroeconomic, banking and regulatory environment on the Corporation’s assets, business, financial condition and results of operations; the impact of adverse developments affecting the U.S. or global banking industry, including bank failures and liquidity concerns, resulting in worsening economic and market volatility, and regulatory responses thereto; the possibility that future credit losses may be higher than currently expected due to changes in economic
Source: Item 7, 10-K 0000070858-26-000157 vs Item 7, 10-K 0000070858-25-000139
Risk Factors 155 words changed in this paragraph; it is 59% similar to last year's version.
We and our regulators have an increased focus on privacy, information security. security and emerging technologies, such as AI. This includes cybersecurity incidents perpetrated against us, our clients, providers of products and services, counterparties and other third parties, the collection, use and sharing of data, and safeguarding of personally identifiable information and corporate data, as well as the development, implementation, use and management of emerging technologies, including AI, which have resulted in, and will likely continue to result in, related litigation (including class actions) or government enforcement, including with regard to compliance with U.S. and global LRRs, and could subject us to fines, judgments and/or settlements and involve reputational losses. We expect The interconnectedness and complexity of AI models may complicate oversight and compliance, and reliance on third‑party AI models further increases our risks due to also face limited visibility into their training data, methodologies and safeguards. Inaccurate AI outputs, unintended or unauthorized exposure of confidential information, biases and possible infringement of intellectual property rights through the use of AI increase this risk. Also, increasing scrutiny regarding sustainability-related policies, goals, targets and disclosure, which disclosure could result in litigation, regulatory investigations and actions and reputational harm. Misconduct, or the perception of misconduct, by our employees and representatives, including conflicts of interest, unethical, fraudulent, improper or illegal conduct, the failure to fulfill fiduciary obligations, unfair, deceptive, abusive or discriminatory business practices, or violations of policies, procedures or LRRs, including conduct that affects compliance with books and records requirements, have resulted and could result in further litigation and/or government investigations and enforcement actions, and cause significant reputational harm. actions.
Source: Item 1A, 10-K 0000070858-26-000157 vs Item 1A, 10-K 0000070858-25-000139
Legal Proceedings 124 words changed in this paragraph; it is 61% similar to last year's version.
In 2023, the Federal Deposit Insurance Corporation (FDIC) issued a final rule to impose a special assessment to recover certain estimated losses to the Deposit Insurance Fund (DIF) arising from the closures of Silicon Valley Bank and Signature Bank. The estimated losses will be recovered through quarterly special assessments collected from certain insured depository institutions, including the Corporation, and collection began during the three months ended June 30, 2024. As of At December 31, 2024 2025 and 2023, 2024, the Corporation’s accrual for its estimated share of the FDIC special assessment was $244 million and $1.7 billion and $2.1 billion. The Corporation continues decrease in the Corporation’s accrual as of December 31, 2025 reflects quarterly assessments paid during 2025, as well as a $323 million reduction in the Corporation’s estimated share of the FDIC special assessment during the second half of 2025. The final quarterly special assessment payment is scheduled for the first quarter of 2026. The FDIC retains the authority to monitor the FDIC’s estimated loss impose a one‑time supplemental assessment should actual losses to the DIF, DIF exceed the total amount collected, or provide an offset against regular deposit insurance assessments if collections exceed actual losses to the DIF. The Corporation would recognize any such adjustment in the period in which could affect the amount of its accrued liability. underlying determination is made.
Source: Item 3, via Note 12 – Commitments and Contingencies, 10-K 0000070858-26-000157 vs Item 3, via Note 12 – Commitments and Contingencies, 10-K 0000070858-25-000139
Every change, by type
Sentences and paragraphs of BAC's Risk Factors and MD&A, 10-K 2026-02-25 against 10-K 2025-02-25.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
and reliance on, third parties and the financial services industry, including the processing and reporting of a large number of complex transactions at increasing speeds in many currencies and jurisdictions, creates additional operational risk.
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AddedRisk Factors
We use, and expect to increasingly use, emerging technologies, including AI, across our operations, including business processes, services and products, and we expect greater AI adoption by our third parties, clients, counterparties, clearinghouses and financial intermediaries. Expanded use of AI, including emerging third‑party AI services and autonomous AI agents, may result in increased data risk, unpredictable system interactions, inadequate controls or safeguards, AI failure, or produce unintended operations or consequences. AI services used by our clients or third parties may interact with our systems or communicate directly with our employees, and may act without authorization, make execution errors, behave unpredictably or be misaligned with intended outcomes, which could result in additional operational, legal and regulatory risk, and reputational harm.
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AddedRisk Factors
The Corporation and third parties with whom we interact and/or on whom we rely, are subject to cybersecurity incidents,
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AddedRisk Factors
Emerging technologies, such as AI and quantum computing, are expected to increase these risks. For example, AI lowers the entry barriers to plan and execute cyberattacks, enables more personalized and harder to detect social engineering, and improves vulnerability discovery, which may result in the increased likelihood of exploitation and the speed, scope, scale, and sophistication of cyberattacks. Advances in quantum computing may introduce cryptography risks that threaten the
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AddedRisk Factors
security of our information and systems and strengthen threat actor capabilities in ways that are difficult to anticipate. These technologies, alone or in combination with others, may amplify the risks they pose.
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AddedRisk Factors
alleged deficiencies in processing documents necessary to comply with state law governing foreclosure.
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AddedRisk Factors
Our regulators’ prudential and supervisory authority gives them broad power and discretion to direct our actions, and they
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AddedRisk Factors
established by our regulators and other government authorities, could result in further settlements, orders or agreements and additional fines, penalties or judgments, or material regulatory restrictions on our businesses.
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AddedRisk Factors
Extensive regulatory evaluation of our capital planning practices by the Federal Reserve includes stress testing certain
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AddedRisk Factors
Also, U.S. banking regulators are expected to release proposals in 2026 to revise methodologies for measuring and reporting risk-based capital adequacy, including the calculation of RWA and G-SIB surcharge. The timing and composition of such proposals are uncertain. Final rules issued following those proposals could adversely impact our capital requirements.
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AddedRisk Factors
We rely on a diversified mix of businesses that deliver a broad range of financial products and services through multiple
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AddedRisk Factors
Our models may not be sufficiently predictive of future results, including from limited historical patterns, extreme or unanticipated market movements or clients’ behavior and
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RemovedRisk Factors
Our operations and information systems and components thereof, and those of our third parties, have been, and in the
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RemovedRisk Factors
machine learning and generative AI) and robotics, increases our cybersecurity risks and exposure, including by making fraud detection and authentication more difficult.
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RemovedRisk Factors
We also face significant third-party technology, cybersecurity and operational risks relating to the large number of clients and third parties with whom we do business, the financial services industry, upon whom we rely to facilitate or enable our business activities or upon whom our clients rely, including the secure collection, processing, maintenance, use, sharing, dissemination and disposition of client and other sensitive information, providers of products and services, financial counterparties, financial data aggregators, financial intermediaries, such as clearing agents, exchanges and clearing
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RemovedRisk Factors
We are highly regulated and subject to evolving and comprehensive regulation under federal and state laws in the U.S. and the laws of the various foreign jurisdictions in which we
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RemovedRisk Factors
We are also subject to LRRs in the U.S. and abroad, including the GDPR and CCPA, and a number of additional jurisdictions enacting or considering similar laws or amendments to existing laws, regarding privacy and the disclosure, collection, use, sharing and safeguarding of personally identifiable information, including our employees, clients, suppliers, counterparties and other third parties, the violation of which could result in litigation, regulatory fines,
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RemovedRisk Factors
Improper actions, behaviors or practices by us, our employees or representatives that are illegal, unethical or contrary to our core values, including the handling of fiduciary obligations, conflicts of interest and the misuse of confidential
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RemovedRisk Factors
In particular, we are the subject of litigation regarding our processing of electronic payments through the Zelle network,
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RemovedRisk Factors
In 2023, U.S. banking regulators issued notices of proposed rulemaking to revise the measurement of RWA and the G-SIB surcharge calculation, both of which may be re-proposed. Also, in 2023, U.S. banking regulators issued proposed changes to the long-term debt requirements for TLAC, which may impact eligibility of certain debt instruments, and in 2024, the Federal Reserve separately confirmed it is considering changes to existing, as well as new, liquidity requirements. The timing and composition of any such proposals or re-proposals remain uncertain due to various factors, including changes of leadership positions in the U.S. bank regulatory agencies.
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RemovedRisk Factors
widespread health emergencies or pandemics, cyberattacks, and military conflicts or other significant geopolitical events.
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RemovedRisk Factors
There is also increasing risk related to the transition to a low-carbon economy. Changes in consumer preferences or financial condition of our clients and counterparties, market pressures, advancements in technology and additional legislation, regulatory, compliance and legal requirements could alter our strategic planning and the scope of our existing businesses, limit our ability to pursue certain business activities and offer certain products and services, amplify credit and market risks, negatively impact asset values, require capital
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RemovedRisk Factors
expenditures and changes in technology and markets, including supply chain and insurance availability and cost, increase expenses and adversely impact our capital requirements and results of operations. Particularly, there is a global regulatory focus on climate change and existing and pending disclosure requirements in various jurisdictions, with jurisdictional divergence, which is expected to impact our legal, compliance and public disclosure risks and costs.
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RemovedRisk Factors
Furthermore, there are and will continue to be challenges related to the availability, quality and disclosure of climate-related data, including data obtained from third parties, which may result in legal, compliance and/or reputational harm.
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RewordedRisk Factors
Our business is highly dependent on the security, controls and efficacy of our information systems, and the information systems of our clients, clients and third parties, parties (e.g., providers of products and services, law firms, other financial institutions, financial counterparties, financial data aggregators, the financial services industry industry, financial intermediaries (e.g., such as clearing agents, exchanges and financial data aggregators clearing houses), U.S. and non-U.S. federal and state governments and regulators, providers of outsourced software, services and infrastructure (e.g., internet access, cloud service providers and electrical power) and retailers for whom we process transactions) with whom we interact, on whom we rely or who have access to our clients’ personal or account information. information and other sensitive data.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
Harm to our reputation Reputational harm can arise from various sources, sources that affect public trust, including actual or perceived business activities and activities of our officers, directors, employees, other representatives, clients and third parties, including counterparties, such as fraud, misconduct and unethical behavior, adequacy of our ability to detect, prevent and/or respond to fraud perpetrated against our clients, and the handling of related disputes regarding the use of our products and services, including electronic payments, effectiveness of our internal controls, the fees charged to our clients, including overdraft and non-sufficient funds fees, compensation practices, lending practices, suitability or reasonableness of particular trading or investment strategies, the services offered to our clients, the reliability of our research and models and prohibiting clients from engaging in certain transactions.
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RewordedRisk Factors
Regardless of the measures we have taken to implement training, procedures, controls, backup systems and other safeguards to support our operations and bolster our operational resilience, our ability to conduct business may be adversely affected by significant failures or disruptions to us or to third parties with whom we interact or upon whom we rely, including localized or systemic cyber events or other technology incidents that result in outages or unavailability of information systems, part or all of the internet, cloud services and/or the financial services industry infrastructure (including funds transfers, electronic trading and algorithmic platforms and critical banking activities), which could be exacerbated by the concentration of third-party service providers or third-party rely upon.
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RewordedRisk Factors
Our reputation and business prospects may also be harmed by actual or perceived failure to deliver the products, service standards of service and quality expected by our clients and the community, including the overstatement or mislabeling of the environmental benefits of our products, services or transactions, the failure to expected, protect our clients and/or recognize and address client complaints, compliance failures, maintain effective compliance, properly implement technology changes, the implementation, management changes and manage and use of emerging technologies, including AI, the failure to maintain effective data management, as well as cybersecurity incidents and information and security breaches affecting us and our employees, clients and third parties, which have occurred and which we expect are expected to continue to occur with increased increasing frequency and severity, prolonged or repeated system outages, our privacy policies, the improper or unintended disclosure of or failure to safeguard personal, proprietary or confidential information, the breach of our fiduciary obligations, employment practices and the handling of widespread health emergencies or pandemics.
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RewordedRisk Factors
The tactics, techniques and procedures used in cyberattacks are pervasive, sophisticated, evolving and designed to evade security measures, Cybersecurity threats, including computer viruses, malicious or destructive code (such as ransomware), social engineering (including phishing, vishing and smishing), engineering, real and virtual impersonation, denial of service or information or attacks and other security breach tactics that targeting us or third parties have and in the future are likely to result in disruptions to our businesses and operations and the operations, loss of funds, including from attempts to defraud us and/or our customers, clients, and impact impacts to the confidentiality, integrity or availability of our information, including systems and information (e.g., intellectual property, or property and the personal and/or confidential information of our employees, clients and third parties. parties).
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RewordedRisk Factors
However, we expect to continue to experience such events and impacts ourself and at our third parties with increased frequency and severity due to the evolving threat environment, and there can be no assurance that future cybersecurity incidents, information and security breaches and technology failures, including as a result of cybersecurity incidents, information and security breaches and technology failures experienced by our third parties, will not have a material adverse impact on us, including our businesses, results of operations and financial condition. environment.
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RewordedRisk Factors
Further, we We expect to become subject to future LRRs, including beyond those currently proposed, adopted or contemplated in the U.S. or abroad, and evolving interpretations of existing and future LRRs, and may be subject to Executive Branch Actions, which may include policies and rulemaking related to FDIC assessments, loss allocations between financial institutions and clients regarding the use of our products and services, including electronic payments, emerging technologies, such as employment practices, fair access to banking products and services, the development terms of our products and use of AI (including machine learning services and generative AI), cybersecurity and data, employment practices and further climate and environmental risk management and sustainability reporting and disclosure, including emissions. disclosure.
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RewordedRisk Factors
Our ability to meet Achieving our climate-related goals and targets, including our goal goals to achieve certain net zero greenhouse gas (GHG) emissions targets by 2030 and net zero GHG emissions before 2050 in our financing activities, operations and supply chain before 2050, is chain, our interim 2030 GHG targets, including financed emissions, and our sustainable finance goals, are subject to risks and uncertainties, many of which are outside of our control, such as technological advances, clearly defined roadmaps for industry sectors, sector roadmaps, public policies and policies, better emissions data reporting, reporting and ongoing engagement with clients, suppliers, investors, government officials and other stakeholders.
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RewordedRisk Factors
If we fail Failure to meet the requirements of the regulatory such settlements, orders or agreements to which we are subject, agreements, or, more generally, fail the failure to maintain risk and control procedures and processes that meet the heightened standards established by our regulators and other government authorities, we could be required to enter into further settlements, orders or agreements and pay additional fines, penalties or judgments, or accept material regulatory restrictions on our businesses.
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RewordedRisk Factors
As new technologies evolve and mature, including the further development of the nonbank digital asset ecosystem (e.g., related to nonbank stablecoins or digital asset trading), and new competitors to the payments and trading ecosystems emerge and current competitors adapt, our businesses and results of operations could be adversely impacted, including as a result of new competitors to the payments and trading ecosystems and we could experience increased volatility in deposits and/or significant long-term reduction in deposits (i.e., financial disintermediation).
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RewordedRisk Factors
In the U.S., the political uncertainty around the federal government’s debt ceiling, The recurrence of a growing federal budget deficit and government debt levels could create the possibility of U.S. government defaults on its debt and/or further downgrades to its credit ratings, and prolonged government shutdowns, which shutdown could weaken the U.S. dollar, cause market volatility, negatively impact the global economy and banking system and adversely affect our financial condition, including our liquidity.
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RewordedRisk Factors
However, we expect to continue to experience such events and impacts ourself and at our third parties with increased frequency and severity due to the evolving threat environment, and there There can be no assurance that future cybersecurity incidents, information and security breaches and technology failures, including as a result of cybersecurity incidents, information and security breaches and technology failures those experienced by our third parties, will not have a material adverse impact on us, including our businesses, results of operations and financial condition.
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Quiet changesRisk Factors
Those scenarios may affect our CCAR stress test results, which may could impact our SCB level and require us to hold additional capital.
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AddedMD&A
Effective in the fourth quarter of 2025, the Corporation elected to change accounting methods for its tax-related affordable housing, eligible wind renewable energy and solar renewable energy equity investments, which were applied on a retrospective basis. The Corporation determined that the new accounting methods are preferable, as they better align the financial statement presentation with the economic impact of these equity investments. The primary impact of the accounting changes is a reclassification between income statement line items that nets income tax credits and benefits against the investment expense. Certain prior-period information presented herein has been revised to reflect the accounting method changes. For more information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements and Exhibit 18 to this Annual Report on Form 10-K.
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AddedMD&A
● Other income increased $1.0 billion primarily due to gains on leveraged finance positions.
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AddedMD&A
shareholders’ equity as key measures to support our overall growth objectives. These ratios are:
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AddedMD&A
The following table provides key performance indicators for deposit spreads, other period-end information, credit and debit card and loan production activities.
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AddedMD&A
The income tax benefit decreased $166 million primarily due to a lower pretax loss.
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AddedMD&A
Further, as part of our planned capital actions, during 2025, the Corporation paid common stock dividends of $8.1 billion.
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AddedMD&A
Effective in the fourth quarter of 2025, the Corporation elected to change its accounting methods related to certain tax-related equity investments and applied those changes retrospectively through a cumulative adjustment to retained earnings. For more information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements. Under applicable bank regulatory rules, the Corporation is not required to, and accordingly, did not revise regulatory capital information as of December 31, 2024.
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AddedMD&A
(2)Effective in the fourth quarter of 2025, the Corporation elected to change its accounting methods for certain tax-related equity investments and applied those changes retrospectively through cumulative adjustment to retained earnings. Under applicable bank regulatory rules, the Corporation is not required to revise previously-filed regulatory capital ratios and, accordingly, did not revise regulatory capital information as of December 31, 2024.
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AddedMD&A
(1)Represents the decrease in retained earnings due to the Corporation’s election to change its accounting methods for certain tax-related equity investments in the fourth quarter of 2025. Under applicable bank regulatory rules, the Corporation is not required to revise previously-filed regulatory capital ratios and, accordingly, did not revise regulatory capital information as of December 31, 2024.
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AddedMD&A
(1)Effective October 1, 2025, the Corporation elected to change its accounting methods for certain tax-related equity investments and applied those changes retrospectively. Under applicable bank regulatory rules, the Corporation is not required to revise previously-filed regulatory capital ratios and, accordingly, did not revise regulatory capital information as of December 31, 2024.
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AddedMD&A
(2)Effective in the fourth quarter of 2025, the Corporation elected to change its accounting methods for certain tax-related equity investments and applied those changes retrospectively through cumulative adjustment to retained earnings. Under applicable bank regulatory rules, the Corporation is not required to revise previously-filed regulatory capital ratios and, accordingly, did not revise regulatory capital information as of December 31, 2024.
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AddedMD&A
On November 25, 2025, the Federal Reserve, Office of the Comptroller of the Currency and FDIC issued a final rule that modified enhanced SLR requirements for bank holding companies and their insured depository institution subsidiaries, with corresponding revisions to TLAC and long-term debt requirements. Under the final rule, static buffer requirements have been replaced with a dynamic buffer requirement equal to 50 percent of the G-SIB’s Method 1 surcharge, with the buffer capped at one percent for insured depository institutions. The Corporation elected to early adopt the final rule as of January 1, 2026, which decreased the regulatory minimum SLR requirement to 3.75 percent from 5.0 percent for the Corporation, and to 3.75 percent from 6.0 percent for BANA as of the same date. For more information on the Corporation’s Method 1 and Method 2 G-SIB surcharge, see Minimum Capital Requirements in this section.
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RemovedMD&A
the MD&A, the Corporation uses certain acronyms and abbreviations which are defined in the Glossary.
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RemovedMD&A
Certain Bank of America communities, clients and teammates were significantly impacted by recent wildfires in California and by hurricanes in the southeastern U.S. during the second half of 2024. In response, Bank of America activated client assistance programs, donated to disaster relief efforts and provided additional support to teammates in the affected areas. The Corporation continues to evaluate the effects of the wildfires and hurricanes on its clients and communities and does not expect these natural disasters to have a material impact on its businesses, results of operations or financial condition.
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RemovedMD&A
● Other income decreased $340 million primarily due to higher partnership losses on tax credit investments, a charge related to Visa Inc.’s (Visa) increase in its litigation escrow account, and certain negative valuation adjustments, partially offset by lower losses on sales of available-for-sale debt securities and gains on sales of equity investments.
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RemovedMD&A
similar KPIs used by other companies. For information on how these metrics are defined, see Key Metrics on page 170.
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RemovedMD&A
Deposits includes the results of consumer deposit activities that consist of a comprehensive range of products provided to consumers and small businesses. Our deposit products include noninterest- and interest-bearing checking accounts, money market savings accounts, traditional savings accounts, CDs and IRAs, as well as investment accounts and products. Net interest income is allocated to deposit products using our funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Deposits generates fees such as account service fees, non-sufficient funds fees, overdraft charges and ATM fees, as well as investment and brokerage fees from Consumer Investment accounts. Consumer Investments serves investment client relationships through the Merrill Edge integrated investing and banking service platform, providing investment advice and guidance, client brokerage asset services, self-directed online investing and key banking capabilities including access to the Corporation’s network of financial centers and ATMs.
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RemovedMD&A
The table below provides key performance indicators for Deposits. Management uses these metrics, and we believe they are useful to investors because they provide additional information to evaluate our deposit profitability and digital/mobile trends.
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RemovedMD&A
Consumer Lending offers products to consumers and small businesses across the U.S. The products offered include debit and credit cards, residential mortgages and home equity loans, and direct and indirect loans such as automotive, recreational vehicle and consumer personal loans. In addition to earning net interest spread revenue on its lending activities, Consumer Lending generates interchange revenue from debit and credit card transactions, late fees, cash advance fees, annual credit card fees, mortgage banking fee income and other miscellaneous fees. Consumer Lending products are available to our customers through our retail network, direct telephone, and online and mobile channels. Consumer Lending results also include the impact of servicing residential mortgages and home equity loans, including loans held on the balance sheet of Consumer Lending and loans serviced for others.
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RemovedMD&A
The following table provides key performance indicators for Consumer Lending. Management uses these metrics, and we believe they are useful to investors because they provide additional information about loan growth and profitability.
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RemovedMD&A
mid-sized U.S.-based businesses requiring customized and integrated financial advice and solutions.
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RemovedMD&A
announcement of BSBY’s cessation, partially offset by a charge related to Visa’s increase in its litigation escrow account and certain negative valuation adjustments.
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RemovedMD&A
The income tax benefit was $7.6 billion in 2024 compared to $8.4 billion in 2023. The decrease in the income tax benefit was primarily due to the benefits recorded against pretax charges in 2023 for the FDIC special assessment and the impact of BSBY’s cessation.
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RemovedMD&A
Executive officers and other employees may also serve on committees and participate in committee decisions.
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RewordedMD&A
Table 6 Selected Annual Financial Data (In millions, except per share information) 2025 2024 2023 2022 Income statement Net interest income $ 60,096 $ 56,060 $ 56,931 $ 52,462 Noninterest income 45,827 41,650 42,488 53,001 49,796 45,838 Total revenue, net of interest expense 101,887 98,581 94,950 113,097 105,856 102,769 Provision for credit losses 5,675 5,821 4,394 2,543 Noninterest expense 69,727 66,812 65,845 61,438 Income before income taxes 29,254 28,342 30,969 37,695 33,223 32,530 Income tax expense 2,122 1,827 3,441 7,186 6,250 6,225 Net income 27,132 26,515 27,528 30,509 26,973 26,305 Net income applicable to common shareholders 25,503 24,866 26,015 29,055 25,344 24,656 Average common shares issued and outstanding 7,521.9 7,855.5 8,028.6 8,113.7 Average diluted common shares issued and outstanding 7,680.9 7,935.8 8,080.5 8,167.5 Performance ratios Return on average assets (1) 0.89 % 0.82 % 0.83 % 0.84 % 0.88 % Return on average common shareholders’ equity (1) 10.59 9.53 9.75 10.75 9.73 Return on average tangible common shareholders’ equity (1, 2) 12.92 13.46 15.15 (2) 14.22 12.94 13.45 Return on average shareholders’ equity (1) 9.23 9.36 10.18 10.22 9.22 9.33 Return on average tangible shareholders’ equity (1, 2) 12.12 12.44 13.76 (2) 13.36 12.13 12.43 Total ending equity to total ending assets 9.06 9.17 8.95 8.89 9.01 9.12 Common equity ratio (1) 8.35 8.28 8.02 8.13 8.30 8.23 Total average equity to total average assets 8.95 8.99 8.62 8.75 8.91 8.94 Dividend payout (1) 30.67 29.65 26.77 27.82 30.86 29.90 Per common share data Earnings $ 3.25 3.86 $ 3.10 3.23 $ 3.21 3.07 Diluted earnings 3.21 3.08 3.81 3.19 3.05 Dividends paid 1.08 1.00 0.92 0.86 Book value (1) 35.79 33.34 30.61 38.44 35.58 33.16 Tangible book value (2) 26.58 24.46 21.83 28.73 26.37 24.28 Market capitalization $ 396,686 $ 334,497 $ 265,840 $ 264,853 Average balance sheet Total loans and leases $ 1,136,787 $ 1,060,081 $ 1,046,256 $ 1,016,782 Total assets 3,284,228 3,153,513 3,135,894 3,410,412 3,282,045 3,152,461 Total deposits 1,984,182 1,924,106 1,887,541 1,986,158 Long-term debt 245,775 246,081 248,853 246,479 Common shareholders’ equity 267,527 254,956 241,981 274,435 265,980 253,464 Total shareholders’ equity 294,014 283,353 270,299 298,474 292,467 281,861 Asset quality Allowance for credit losses (3) $ 14,380 $ 14,336 $ 14,551 $ 14,222 Nonperforming loans, leases and foreclosed properties (4) 5,905 6,120 5,630 3,978 Allowance for loan and lease losses as a percentage of total loans and leases outstanding (4) 1.12 % 1.21 % 1.27 % 1.22 % Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (4) 228 222 243 333 Net charge-offs $ 5,631 $ 6,031 $ 3,799 $ 2,172 Net charge-offs as a percentage of average loans and leases outstanding (4) 0.50 % 0.57 % 0.36 % 0.21 % Capital ratios at year end (5) Common equity tier 1 capital 11.4 % 11.9 % 11.8 % 11.2 % Tier 1 capital 12.8 13.2 13.5 13.0 Total capital 14.7 15.1 15.2 14.9 Tier 1 leverage 6.8 6.9 7.1 7.0 Supplementary leverage ratio 5.7 5.9 6.1 5.9 Tangible equity (2) 7.0 7.0 7.1 7.1 6.8 Tangible common equity (2) 6.2 6.3 6.2 5.9
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RewordedMD&A
Risk Factors of this Annual Report on Form 10-K: and in any of the Corporation’s subsequent Securities and Exchange Commission (SEC) filings: the Corporation’s potential judgments, orders, settlements, penalties, fines and reputational damage, which are inherently difficult to predict, resulting from pending, threatened or future litigation and regulatory inquiries, demands, requests, investigations, proceedings and enforcement actions, which the Corporation is subject to in the ordinary course of business, including matters related to our processing of unemployment benefits for California and certain other states, the features of our automatic credit card payment service, the adequacy of the Corporation’s anti-money laundering and economic sanctions programs and the processing of electronic payments, including through the Zelle network, and related fraud, which are in various stages; in connection with ongoing litigation, the impact of certain changes to Visa’s and Mastercard’s respective card payment network rules and reductions in interchange fees for U.S.-based merchants; the possibility that the Corporation’s future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, and regulatory and government actions; the Corporation’s ability to resolve representations impact of U.S. and warranties repurchase global interest rates (including the potential for ongoing fluctuations in interest rates), inflation, currency exchange rates, economic conditions, trade policies and related claims; tensions, including changes in, or the risks related to the discontinuation of reference rates, including increased expenses and litigation imposition of, tariffs and/or trade barriers and the effectiveness of hedging strategies; 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 U.S. and global interest rates (including the potential for ongoing adjustments in interest rates), inflation, currency exchange rates, economic conditions, trade policies and tensions, including increased tariffs, and geopolitical instability; the impact of the interest rate, inflationary, macroeconomic, banking and regulatory environment on the Corporation’s assets, business, financial condition and results of operations; the impact of adverse developments affecting the U.S. or global banking industry, including bank failures and liquidity concerns, resulting in worsening economic and market volatility, and regulatory responses thereto; the possibility that future credit losses may be higher than currently expected due to changes in economic
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RewordedMD&A
Table 9 Analysis of Changes in Net Interest Income - FTE Basis Due to Change in (1) Net Change Due to Change in (1) Net Change Volume Rate Volume Rate (Dollars in millions) From 2024 to 2025 From 2023 to 2024 From 2022 to 2023 Increase (decrease) in interest income Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks $ (3,649) $ (2,664) $ (6,313) $ 414 $ 427 $ 841 $ 1,691 $ 11,683 $ 13,374 Time deposits placed and other short-term investments (9) (96) (105) 19 (25) (6) 8 325 333 Federal funds sold and securities borrowed or purchased under agreements to resell 1,141 (5,619) (4,478) 1,201 31 1,232 (10) 14,129 14,119 to resell Trading account assets 1,430 440 1,870 865 762 1,627 1,095 2,168 3,263 Debt securities 1,719 (360) 1,359 1,820 3,955 5,775 (2,435) 5,560 3,125 Loans and leases Residential mortgage 182 520 702 (44) 512 468 37 511 548 Home equity 43 (138) (95) (18) 154 136 (50) 562 512 Credit card 131 (51) 80 405 597 1,002 1,269 759 2,028 Direct/Indirect and other consumer 292 (161) 131 (4) 633 629 (75) 1,958 1,883 Total consumer 818 2,235 4,971 U.S. commercial 2,417 (796) 1,621 621 1,287 1,908 381 6,862 7,243 Non-U.S. commercial 1,538 (2,054) (516) 66 660 726 12 4,309 4,321 Commercial real estate (256) (652) (908) (217) 55 (162) 302 2,265 2,567 Commercial lease financing 52 12 64 60 100 160 1 172 173 Total commercial 261 2,632 14,304 Total loans and leases 1,079 4,867 19,275 Other earning assets 1,379 (2,842) (1,463) 1,008 1,053 2,061 (343) 4,680 4,337 Net increase (decrease) in interest income $ (8,051) $ 16,397 $ 57,826 Increase (decrease) in interest expense U.S. interest-bearing deposits Demand and money market deposit accounts $ (21) 932 $ 5,371 (3,273) $ 5,350 (2,341) $ (96) 256 $ 12,478 5,840 $ 12,382 6,096 Time and savings deposits 2,754 3,028 5,782 429 6,119 6,548 273 (1,217) (944) 1,851 3,185 5,036 Total U.S. interest-bearing deposits (3,285) 11,132 18,930 Non-U.S. interest-bearing deposits 571 (1,215) (644) 423 724 1,147 146 2,369 2,515 Total interest-bearing deposits (3,929) 12,279 21,445 Federal funds purchased, purchased and securities loaned or sold under agreements to 1,234 (6,439) (5,205) 4,533 (1,339) 3,194 1,662 14,804 16,466 repurchase Short-term borrowings and other interest bearing liabilities 1,922 (3,213) (1,291) (202) 993 791 312 6,797 7,109 Trading account liabilities (28) 494 466 277 (129) 148 (156) 661 505 Long-term debt (15) (2,103) (2,118) (152) 956 804 74 7,629 7,703 Net increase (decrease) in interest expense (12,077) 17,216 53,228 Net increase (decrease) in net interest income (2) $ 4,026 $ (819) $ 4,598
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RewordedMD&A
Table 42 43 Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics December 31, 2024 2025 December 31, 2023 2024 (Dollars in millions) 99 percent 95 percent 99 percent 95 percent Foreign exchange $ 29 16 $ 18 8 $ 29 15 $ 19 7 Interest rate 57 30 48 26 52 27 58 32 Credit 54 30 60 30 46 20 51 27 Mortgage 32 17 36 20 Equity 24 12 21 10 18 8 Commodities 9 5 9 5 6 10 6 Portfolio diversification (100) (107) (58) (100) (54) (124) (68) Total covered positions portfolio 70 35 64 34 Impact from less liquid exposures 11 7 20 7 Total covered positions and less liquid trading positions portfolio 81 42 84 41 VaR 72 32 67 34 Fair value option loans 18 20 11 25 12 19 11 Fair value option hedges 12 13 7 14 9 10 6 Fair value option portfolio diversification (20) (11) (16) (10) (23) (13) Total fair value option portfolio 14 8 16 8 13 7 13 7 Portfolio diversification (9) (7) (5) (8) (5) (7) (3) Total market-based portfolio $ 86 78 $ 45 34 $ 92 73 $ 44 38
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RewordedMD&A
Table 40 41 Allowance for Credit Losses (Dollars in millions) 2025 2024 2023 Allowance for loan and lease losses, December 31 $ 13,342 $ 12,682 January 1, 2023 adoption of credit loss standard n/a (243) Allowance for loan and lease losses, January 1 $ 13,240 $ 13,342 $ 12,439 Loans and leases charged off Residential mortgage (24) (21) (67) Home equity (16) (21) (36) Credit card (4,498) (4,365) (3,133) Direct/Indirect consumer (373) (399) (233) Other consumer (256) (313) (504) Total consumer charge-offs (5,167) (5,119) (3,973) U.S. commercial (1) (1,123) (958) (551) Non-U.S. commercial (33) (81) (37) Commercial real estate (520) (894) (254) Commercial lease financing (2) (8) (2) Total commercial charge-offs (1,684) (1,935) (844) Total loans and leases charged off (6,851) (7,054) (4,817) Recoveries of loans and leases previously charged off Residential mortgage 25 21 51 Home equity 57 62 95 Credit card 781 620 572 Direct/Indirect consumer 138 160 141 Other consumer 18 24 18 Total consumer recoveries 1,019 881 883 U.S. commercial (2) 166 97 108 Non-U.S. commercial 2 14 18 Commercial real estate 29 30 9 Commercial lease financing 4 1 — Total commercial recoveries 201 142 135 Total recoveries of loans and leases previously charged off 1,220 1,023 1,018 Net charge-offs (5,631) (6,031) (3,799) Provision for loan and lease losses 5,595 5,935 4,725 Other (1) (6) (23) Allowance for loan and lease losses, December 31 13,203 13,240 13,342 Reserve for unfunded lending commitments, January 1 1,096 1,209 1,540 Provision for unfunded lending commitments 80 (114) (331) Other 1 — 1 Reserve for unfunded lending commitments, December 31 1,177 1,096 1,209 Allowance for credit losses, December 31 $ 14,380 $ 14,336 $ 14,551 Loan and allowance ratios (3):
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RewordedMD&A
Investment and brokerage services 17,019 15,238 13,213 15 12 All other income 667 722 745 (3) (8) Total noninterest income 17,686 15,960 13,958 14 11 Total revenue, net of interest expense 24,883 22,929 21,105 9 Provision for credit losses 35 4 6 (33) n/m Noninterest expense 18,621 17,241 15,836 9 8 Income before income taxes 6,227 5,684 5,263 8 10 Income tax expense 1,557 1,421 1,316 8 10 Net income $ 4,670 $ 4,263 $ 3,947 8 10 Effective tax rate 25.0 % 25.0 % Net interest yield 2.32 2.20 2.17 Efficiency ratio 74.84 75.19 Return on average allocated capital 24 23 21 Efficiency ratio 75.19 75.04 Balance Sheet Average Total loans and leases $ 243,123 $ 223,899 $ 219,503 2% 9% Total earning assets 309,890 317,283 329,493 (4) (2) Total assets 323,914 331,014 342,531 (3) (2) Total deposits 279,776 287,491 298,335 (4) (3) Allocated capital 19,750 18,500 18,500 — 7 Year end Total loans and leases $ 261,303 $ 231,981 $ 219,657 6% 13% Total earning assets 320,899 323,496 330,653 (2) (1) Total assets 335,495 338,367 344,626 (2) (1) Total deposits 289,854 292,278 299,657 (2) (1)
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RewordedMD&A
Table 1 Summary Income Statement and Selected Financial Data (Dollars in millions, except per share information) 2025 2024 2023 Income statement Net interest income $ 60,096 $ 56,060 $ 56,931 Noninterest income 45,827 41,650 53,001 49,796 Total revenue, net of interest expense 101,887 98,581 113,097 105,856 Provision for credit losses 5,675 5,821 4,394 Noninterest expense 69,727 66,812 65,845 Income before income taxes 29,254 28,342 37,695 33,223 Income tax expense 2,122 1,827 7,186 6,250 Net income 27,132 26,515 30,509 26,973 Preferred stock dividends and other 1,454 1,629 1,649 Net income applicable to common shareholders $ 25,503 29,055 $ 24,866 25,344 Per common share information Earnings $ 3.25 3.86 $ 3.10 3.23 Diluted earnings 3.21 3.08 3.81 3.19 Dividends paid 1.08 1.00 0.92 Performance ratios Return on average assets (1) 0.83 0.89 % 0.84 0.82 % Return on average common shareholders’ equity (1) 10.59 9.53 9.75 Return on average tangible common shareholders’ equity (2) 12.92 13.46 14.22 12.94 Efficiency ratio (1) 65.57 66.79 61.65 63.12 Balance sheet at year end Total loans and leases $ 1,185,700 $ 1,095,835 $ 1,053,732 Total assets 3,261,519 3,180,151 3,411,738 3,261,299 Total deposits 2,018,729 1,965,467 1,923,827 Total liabilities 2,965,960 2,888,505 3,108,495 2,967,336 Total common shareholders’ equity 272,400 263,249 277,251 270,804 Total shareholders’ equity 295,559 291,646 303,243 293,963
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RewordedMD&A
Key Statistics – Deposits (Dollars in millions) 2025 2024 2023 Deposit Spreads Total deposit spreads (excludes noninterest costs) (1) 2.92% 2.77% 2.70% Year end Consumer investment assets (in millions) (2) (1) $ 599,110 $ 517,835 $ 424,410 Active digital banking users (in thousands) (3) (2) 49,323 48,150 46,265 Active mobile banking users (in thousands) (4) (3) 41,427 39,958 37,927 Financial centers 3,628 3,700 3,845 ATMs 14,909 14,893 15,168 Credit and Debit Card Total credit card (4) Gross interest yield (5) 12.02 % 12.30 % Risk-adjusted margin (6) 7.06 6.98 New accounts (in thousands) 3,531 3,820 Purchase volumes $ 377,760 $ 368,861 Debit card purchase volumes 594,603 557,000 Loan Production (7) Consumer Banking:
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RewordedMD&A
Table 32 33 Outstanding Commercial Real Estate Loans December 31 (Dollars in millions) 2025 2024 2023 By Geographic Region Northeast $ 17,044 $ 14,708 $ 15,920 California 13,916 13,712 14,551 Southwest 8,412 7,719 9,318 Southeast 6,958 6,914 8,368 Florida 5,167 4,410 4,986 Midsouth 2,962 2,487 Midwest 2,862 2,468 Illinois 2,513 2,996 3,361 Midsouth 2,487 2,785 Midwest 2,468 3,149 Northwest 1,451 1,979 2,095 Non-U.S. 6,021 6,109 6,052 Other 1,442 2,228 2,293 Total outstanding commercial real estate loans $ 68,748 $ 65,730 $ 72,878 By Property Type Non-residential Office $ 15,061 $ 17,976 Industrial / Warehouse $ 13,031 $ 13,166 14,746 Office 12,447 15,061 Multi-family rental 10,986 11,022 10,606 Shopping centers / Retail 6,947 5,603 5,756 Hotel / Motels 4,629 4,680 5,665 Multi-use 2,509 2,162 2,681 Other 17,295 13,179 14,201 Total non-residential 67,844 64,873 71,631 Residential 904 857 1,247 Total outstanding commercial real estate loans $ 68,748 $ 65,730 $ 72,878
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RewordedMD&A
Trading account securities $ 352,548 $ 324,065 $ 318,443 2% 9% Reverse repurchases 145,925 137,052 133,735 2 6 Securities borrowed 138,791 135,108 121,547 11 3 Derivative assets 40,699 37,795 44,303 (15) 8 Total trading-related assets 677,963 634,020 618,028 3 7 Total loans and leases 181,334 140,557 129,657 8 29 Total earning assets 806,901 710,604 652,352 9 14 Total assets 911,718 869,756 5 1,010,898 911,657 11 Total deposits 38,074 34,120 33,278 3 12 Allocated capital 49,000 45,500 45,500 — 8 Year end Total trading-related assets $ 670,949 $ 580,557 $ 542,544 7% 16% Total loans and leases 202,733 157,450 136,223 16 29 Total earning assets 814,196 687,678 637,955 8 18 Total assets 876,605 817,588 7 1,032,858 876,548 18 Total deposits 40,614 38,848 34,833 12 5
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RewordedMD&A
Table 11 Capital Composition under Basel 3 December 31 (Dollars in millions) 2025 2024 2023 Total common shareholders’ equity $ 272,400 277,251 $ 263,249 270,804 Impact of change in accounting method (1) — 1,596 CECL transitional amount (1) (2) — 627 1,254 Goodwill, net of related deferred tax liabilities (68,651) (68,649) (68,648) Deferred tax assets arising from net operating loss and tax credit carryforwards (8,761) (8,097) (7,912) Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities (1,386) (1,440) (1,496) Defined benefit pension plan net assets (868) (786) (764) Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, 1,825 1,491 1,342 net-of-tax Accumulated net (gain) loss on certain cash flow hedges (2) (3) 2,020 5,629 8,025 Other (20) (92) (122) Common equity tier 1 capital 201,410 201,083 194,928 Qualifying preferred stock, net of issuance cost 25,991 22,391 28,396 Other (19) (16) (1) Tier 1 capital 227,382 223,458 223,323 Tier 2 capital instruments 19,627 18,592 15,340 Qualifying allowance for credit losses (3) (2) 14,431 13,558 12,920 Other (208) (245) (184) Total capital under the Standardized approach 261,232 255,363 251,399 Adjustment in qualifying allowance for credit losses under the Advanced approaches (3) (2) (10,885) (10,554) (9,950) Total capital under the Advanced approaches $ 250,347 $ 244,809 $ 241,449
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RewordedMD&A
Investment and brokerage services 2,511 2,128 1,993 7 18 Investment banking fees 2,837 2,655 1,874 42 7 Market making and similar activities 12,064 12,778 13,430 (5) (6) All other income 994 876 552 59 13 Total noninterest income 18,406 18,437 17,849 3 — Total revenue, net of interest expense 24,096 21,812 19,527 12 10 Provision for credit losses 71 (32) (131) n/m Noninterest expense 15,418 13,926 13,206 5 11 Income before income taxes 8,607 7,918 6,452 23 9 Income tax expense 2,496 2,296 1,774 29 9 Net income $ 6,111 $ 5,622 $ 4,678 20 9 Effective tax rate 29.0 % 27.5 29.0 % Efficiency ratio 63.99 63.85 Return on average allocated capital 13 12 10 Efficiency ratio 63.84 67.63 Balance Sheet Average Trading-related assets:
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Quiet changesMD&A
Relative to the baseline scenario, the adverse scenario assumed a peak U.S. unemployment rate of over approximately two percentage points higher than the baseline scenario, a decline in U.S. real GDP followed by a prolonged recovery and a lower home price outlook with a difference of approximately 19 18 percent at the trough.
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