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 $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.

Noninterest Income

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

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

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.