Bank of America Corporation
Price History
Company Overview
Business Model: Bank of America Corporation is a bank holding company and financial holding company that provides a comprehensive range of banking, investing, asset management, and other financial and risk management products and services. It serves individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments. Its banking activities primarily operate under the Bank of America, National Association charter.
Market Position: Bank of America Corporation is identified as one of the world’s largest financial institutions.
Recent Strategic Developments: Effective in the fourth quarter of 2025, Bank of America Corporation changed its accounting methods for affordable housing and eligible wind renewable energy equity investments from the equity method to the proportional amortization method. For solar renewable energy equity investments, it changed from recognizing investment tax credits and applicable equity investment costs when facilities were placed in service to the deferral method. These changes were applied retrospectively to January 1, 2023, resulting in a cumulative adjustment that decreased retained earnings by $1.2 billion as of that date, with an insignificant annual impact on net income.
Geographic Footprint: Bank of America Corporation operates globally, with approximately 56.9 million square feet in the U.S. (all 50 states, D.C., U.S. Virgin Islands, Puerto Rico, Guam) and approximately six million square feet in more than 35 countries. Key international locations include London, UK, and Hong Kong.
Financial Performance
Revenue Analysis
| Metric | Current Year (2025) | Prior Year (2024) | Change |
|---|---|---|---|
| Total Revenue, net of interest expense | $113,097 million | $105,856 million | +6.8% |
| Operating Income (Income before income taxes) | $37,695 million | $33,223 million | +13.5% |
| Net Income | $30,509 million | $26,973 million | +13.1% |
Profitability Metrics:
- Operating Margin: 33.3% (2025)
- Net Margin: 27.0% (2025)
Investment in Growth:
- Amortization of stock-based compensation: $4,001 million (2025)
- Compensation cost for stock-based plans: $4,200 million (2025)
Business Segment Analysis
Consumer Banking
Financial Performance:
- Net Income: $12,245 million (+13.8% YoY)
- Total Revenue, net of interest expense: $43,673 million (+5.4% YoY)
- Operating Margin (Net Income / Revenue): 28.0%
- Provision for credit losses: $4,649 million (2025)
- Total noninterest expense: $22,697 million (2025)
Global Wealth & Investment Management (GWIM)
Financial Performance:
- Net Income: $4,670 million (+9.5% YoY)
- Total Revenue, net of interest expense: $24,883 million (+8.5% YoY)
- Operating Margin (Net Income / Revenue): 18.8%
- Provision for credit losses: $35 million (2025)
- Total noninterest expense: $18,621 million (2025)
Global Banking
Financial Performance:
- Net Income: $7,793 million (-2.4% YoY)
- Total Revenue, net of interest expense: $24,108 million (+1.5% YoY)
- Operating Margin (Net Income / Revenue): 32.3%
- Provision for credit losses: $943 million (2025)
- Total noninterest expense: $12,416 million (2025)
Global Markets
Financial Performance:
- Net Income: $6,111 million (+8.7% YoY)
- Total Revenue, net of interest expense: $24,096 million (+10.5% YoY)
- Operating Margin (Net Income / Revenue): 25.3%
- Provision for credit losses: $71 million (2025)
- Total noninterest expense: $15,418 million (2025)
Capital Allocation Strategy
Shareholder Returns:
- Share Repurchases: $21,433 million (452 million shares) in 2025. On July 23, 2025, the Board authorized a $40 billion common stock repurchase program, effective August 1, 2025, replacing the previous program. Remaining buyback authority as of December 31, 2025, was $30,109 million.
- Dividend Payments: Common stock dividends of $8,100 million were paid in 2025. Cash dividends paid per common share were $1.08 in 2025. Preferred stock dividends of $1,454 million were paid in 2025.
- Future Capital Return Commitments: On February 3, 2026, the Board declared a quarterly common stock dividend of $0.28 per share, payable March 27, 2026.
Balance Sheet Position:
- Cash and Equivalents: $231,845 million (2025)
- Total Debt: $317,816 million (long-term debt, 2025) + $7,900 million (short-term borrowings, 2025) + $20,400 million (commercial paper, 2025) = $346,116 million
- Net Cash Position: $(114,271) million (Cash and Equivalents - Total Debt)
- Debt Maturity Profile (Carrying Value, December 31, 2025):
- 2026: $31,713 million
- 2027: $36,529 million
- 2028: $38,005 million
- 2029: $31,444 million
- 2030: $15,680 million
- Thereafter: $164,445 million
- Weighted-average effective interest rate for total long-term debt (excluding senior structured notes): 3.90% (2025).
Cash Flow Generation:
- Operating Cash Flow: $12,613 million (2025)
Operational Excellence
Production & Service Model: Bank of America Corporation's banking activities are primarily conducted through the Bank of America, National Association charter, offering a full range of financial products and services. Premises and equipment are depreciated using the straight-line method over estimated useful lives (buildings up to 40 years, furniture and equipment up to 12 years, leasehold improvements over the shorter of lease term or useful life).
Supply Chain Architecture: Key Suppliers & Partners:
- Government-Sponsored Enterprises: FNMA and FHLMC - Bank of America Corporation held debt securities from these entities, with amortized costs of $246.9 billion and $158.5 billion, respectively, in 2025.
- Clearing Organizations: Fixed Income Clearing Corporation - Maximum potential exposure under its Sponsored Member Repo Program (without collateral) was $339.1 billion in 2025.
Facility Network:
- Bank of America Corporation owns or leases approximately 62.9 million square feet in over 19,600 facilities and ATM locations globally.
- Principal Executive Offices: Bank of America Corporate Center, Charlotte, NC (owned, 1,212,177 sq ft).
- Major Operational Hubs: Bank of America Tower at One Bryant Park, New York, NY (leased, 2,024,684 sq ft, 49.9% joint venture interest); Bank of America Financial Centre, London, UK (leased, 510,169 sq ft); Cheung Kong Center, Hong Kong (leased, 117,279 sq ft).
Operational Metrics:
- Net charge-offs: $5.6 billion (2025)
- Nonperforming loans and leases: $5.8 billion (2025), representing 0.49% of outstanding loans and leases.
- Unpaid principal balance of loans serviced for investors: $78.7 billion (2025).
- Servicing fee and ancillary fee income: $215 million (2025).
Market Access & Customer Relationships
Geographic Revenue Distribution:
- U.S.: $97,687 million (86.4% of total revenue)
- Asia: $6,004 million (5.3% of total revenue)
- Europe, Middle East and Africa: $7,561 million (6.7% of total revenue)
- Latin America and the Caribbean: $1,845 million (1.6% of total revenue)
Risk Assessment Framework
Strategic & Market Risks
Customer Concentration: Bank of America Corporation held debt securities from FNMA and FHLMC that each exceeded 10% of shareholders’ equity. As of December 31, 2025, FNMA debt securities had an amortized cost of $246.9 billion, and FHLMC debt securities had an amortized cost of $158.5 billion.
Operational & Execution Risks
Supply Chain Vulnerabilities: The maximum potential exposure under the Fixed Income Clearing Corporation Sponsored Member Repo Program (without collateral) was $339.1 billion as of December 31, 2025.
Financial & Regulatory Risks
Demand Volatility: The weighted economic outlook for quantitative reserves assumes the U.S. average unemployment rate will be approximately 5% in Q4 2026 and remain near this level through Q4 2027. U.S. real GDP is assumed to grow at 1.4% in Q4 2026 and 1.8% in Q4 2027. Credit & Liquidity: Bank of America Corporation and Bank of America, N.A. are Advanced approaches institutions under Basel 3 and were well capitalized at December 31, 2025.
- Bank of America Corporation's Common Equity Tier 1 (CET1) capital ratio: 11.4% (Standardized, 2025), 12.8% (Advanced, 2025), against a regulatory minimum of 10.0%.
- Bank of America Corporation's Supplementary Leverage Ratio (SLR): 5.0% (2025), meeting the regulatory minimum of 5.0%.
- Bank of America, N.A.'s CET1 capital ratio: 12.5% (Standardized, 2025), 15.6% (Advanced, 2025), against a regulatory minimum of 7.0%.
- Bank of America, N.A.'s SLR: 6.2% (2025), exceeding the regulatory minimum of 6.0%. Regulatory & Compliance Risks:
- FDIC special assessment accrual: $244 million (2025), with a final payment scheduled for Q1 2026.
- Litigation and regulatory investigation-related expense: $422 million (2025).
- Estimated range of possible loss in excess of accrued liability for litigation: $0 to $0.5 billion (December 31, 2025).
- Material legal proceedings include an FDIC lawsuit against Bank of America, N.A., where a $540 million judgment plus interest was granted, leading to a $657 million payment in July 2025, with the FDIC seeking an additional $255 million plus interest.
- LIBOR-related claims against Bank of America Corporation, Bank of America, N.A., and Merrill Lynch entities were dismissed by a U.S. District Court in September 2025, though plaintiffs have appealed.
- A U.S. District Court certified classes of individuals in a lawsuit concerning Unemployment Insurance Prepaid Cards in June 2025.
Innovation & Technology Leadership
Research & Development Focus: Investment in human capital for innovation is reflected in compensation cost for stock-based plans, which was $4.2 billion in 2025.
Intellectual Property Portfolio: The company has unrecognized compensation cost related to share-based awards of $4.7 billion as of December 31, 2025, expected to be recognized over up to 4 years, with a weighted-average period of 2.5 years.
Leadership & Governance
Executive Leadership Team
| Position | Executive | Tenure | Prior Experience |
|---|---|---|---|
| Chief Executive Officer | [Not Disclosed] | [Not Disclosed] | Chief Operating Decision Maker of the segments |
Human Capital Strategy
Workforce Composition:
- Total Employees: Approximately 213,000 employees at December 31, 2025.
- Geographic Distribution: 77% of employees were located in the U.S. in 2025.
- Skill Mix: Global employees are 50% women and 50% men. Within the top three management levels, women comprise 42%, and managers at all levels are 43% women. U.S.-based employees are 46% White, 15% Asian, 15% Black, 20% Hispanic, 0.4% American Indian/Alaskan Native, 0.3% Native Hawaiian/Other Pacific, and 3% Two or More Races.
Talent Management: Acquisition & Retention:
- Hiring Strategy: Over 18,000 teammates were hired in 2025, and more than 14,000 employees found new internal roles.
- Retention Metrics: Employee turnover was stable at 8% in both 2025 and 2024.
- Employee Value Proposition: In October 2025, the U.S. minimum hourly wage was raised from $24 to $25 per hour. In January 2026, approximately 96% of employees globally were announced to receive Sharing Success compensation awards for 2025 efforts. Diversity & Development:
- Development Programs: Over 7.6 million hours of training and development were delivered through Bank of America Academy in 2025.
- Culture & Engagement: The 2025 Employee Engagement Survey saw 86% participation and an 86% Employee Engagement Index. The company has 11 Employee Networks with over 330,000 voluntary memberships.
Environmental & Social Impact
Environmental Commitments: Bank of America Corporation holds equity investments in unconsolidated limited partnerships and similar entities that construct, own, and operate affordable housing and renewable energy projects.
Social Impact Initiatives: The company benefits from income tax credits and other tax benefits related to these investments, totaling $4.6 billion in 2025. Investment amortization related to these initiatives was $3.3 billion in 2025, recorded as income tax expense.
Regulatory Environment & Compliance
Regulatory Framework: Bank of America Corporation files income tax returns in more than 60 states and municipalities and more than 40 non-U.S. jurisdictions each year.
Legal Proceedings: Material litigation includes the FDIC lawsuit against Bank of America, N.A., LIBOR-related claims, and a class action lawsuit concerning Unemployment Insurance Prepaid Cards. The estimated range of possible loss in excess of accrued liability for litigation was $0 to $0.5 billion as of December 31, 2025.
Tax Strategy & Considerations
Tax Profile:
- Effective Tax Rate: 19.1% (2025)
- Federal Statutory Tax Rate: 21% (2025)
- Total Income Tax Expense: $7,195 million (2025)
- Geographic Tax Planning: Net deferred tax assets were $17,314 million in 2025, including a deferred tax asset for U.K. net operating losses of $7,447 million. No U.S. federal income taxes are recorded on temporary differences related to certain investments in non-U.S. subsidiaries deemed permanently reinvested, which would be approximately $1.0 billion if recognized.
- Tax Examination Status (December 31, 2025): The company is under field examination for U.S. (2017-2023), California (2018-2021), New York (2022-2024), and United Kingdom (2021-2023) income tax returns. New York City (2022-2024) and U.K. (2024) examinations are scheduled to begin in 2026.
Insurance & Risk Transfer
Risk Management Framework: Bank of America Corporation utilizes Bank-owned Life Insurance Book Value Protection, with a notional amount of $2.4 billion in 2025 and a maximum exposure of $377 million, estimated to mature in 2034.