BANK OF AMERICA CORP /DE/

(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 $9.1 billion and $17.7 billion, or $1.21 and $2.31 per diluted share, for the three and six months ended June 30, 2026 compared to $7.2 billion and $14.5 billion, or $0.90 and $1.79 per diluted share, for the same periods in 2025. The increase in net income was due to higher noninterest income and net interest income, as well as lower provision for credit losses, partially offset by higher noninterest expense.

Total assets increased $87.5 billion from December 31, 2025 to $3.5 trillion primarily driven by higher securities borrowed or purchased under agreements to resell and higher customer and other receivables to support Global Markets client activity, as well as higher loans and leases due to growth in commercial loans, partially offset by lower debt securities primarily due to maturities and paydowns.

Total liabilities increased $89.6 billion from December 31, 2025 to $3.2 trillion primarily driven by higher customer trade payables and trading account liabilities to support Global Markets client activity, as well as higher long-term debt issuances and short-term borrowings for liquidity positioning.

Shareholders’ equity decreased $2.1 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 $1.3 billion to $16.0 billion, and $2.6 billion to $31.7 billion for the three and six months ended June 30, 2026 compared to the same periods in 2025. Net interest yield on a fully taxable-equivalent (FTE) basis increased 14 basis points (bps) and 12 bps to 2.08 percent for both the three and six months ended June 30, 2026 compared to the same periods in 2025. The increases were primarily driven by higher net interest income related to Global Markets activity, deposit and loan 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.

Noninterest Income

Noninterest income increased $2.8 billion to $15.6 billion and increased $3.5 billion to $30.1 billion for the three and six months ended June 30, 2026 compared to the same periods in 2025. The following highlights the significant changes.

● Service charges increased $91 million and $204 million primarily due to higher treasury service charges.

● Investment and brokerage services increased $873 million and $1.6 billion primarily driven by higher asset management fees reflecting higher market valuations and the impact of positive assets under management (AUM) flows, as well as higher brokerage fees due to increased transactional volume.

● Investment banking fees increased $710 million for the three-month period due to higher debt issuance, advisory and equity issuance fees. The increase of $1.0 billion in the six-month period was driven by higher advisory, debt issuance and equity issuance fees.

● Market making and similar activities increased $1.0 billion and $1.1 billion primarily driven by higher trading revenue in Equities, partially offset by lower income from foreign currency risk management activities.

● Other income increased $153 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 placed in service during that period. The decrease of $311 million in the six-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 $226 million to $1.4 billion and $369 million to $2.7 billion for the three and six months ended June 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

Noninterest expense increased $1.4 billion to$18.6 billion and $2.2 billion to $37.2 billion for the three and six months ended June 30, 2026 compared to the same periods in 2025. The increases were primarily driven by higher revenue-related expenses during both periods, as well as continued investments in the business, including people, marketing and technology for the three-month period, and continued investments in people, technology and marketing for the six-month period.

5 Bank of America

Income Tax Expense

The effective tax rate increased for the three and six months ended June 30, 2026 compared to the same periods in 2025 driven by lower tax preference items, primarily related to lower renewable energy tax credits on certain tax-related equity investment activity and lower discrete tax benefits relative to pretax earnings.