Annual report [Section 13 and 15(d), not S-K Item 405]

Regulatory Requirements and Restrictions

v3.25.4
Regulatory Requirements and Restrictions
 12 Months Ended
Dec. 31, 2025
Banking and Thrift, Interest [Abstract]  
Regulatory Requirements and Restrictions Regulatory Requirements and Restrictions
The Board of Governors of the Federal Reserve System (Federal Reserve), Office of the Comptroller of the Currency (OCC) and FDIC (collectively, U.S. banking regulators) jointly establish regulatory capital adequacy rules, including Basel 3, for U.S. banking organizations. As a financial holding company, the
Corporation is subject to capital adequacy rules issued by the Federal Reserve. The Corporation’s banking entity affiliates are subject to capital adequacy rules issued by the OCC.
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 risk-weighted assets 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 Prompt Corrective Action (PCA) framework.
At December 31, 2025 and 2024, the Corporation was also required to maintain a minimum supplementary leverage ratio (SLR) of 3.0 percent plus a leverage buffer of 2.0 percent in order to avoid certain restrictions on capital distributions and discretionary bonus payments to executive officers. The Corporation’s insured depository institution subsidiaries were also required to maintain a minimum SLR of 6.0 percent to be considered well capitalized under the PCA framework.
The following table presents capital ratios and related information in accordance with Basel 3 Standardized and Advanced approaches as measured at December 31, 2025 and 2024 for the Corporation and BANA.
Regulatory Capital under Basel 3
Bank of America Corporation Bank of America, N.A.
Standardized Approach (1)
Advanced Approaches (1)
Regulatory Minimum (2)
Standardized Approach (1)
Advanced Approaches (1)
Regulatory Minimum (3)
(Dollars in millions, except as noted) December 31, 2025
Risk-based capital metrics:    
Common equity tier 1 capital $ 201,410  $ 201,410  $ 190,831  $ 190,831 
Tier 1 capital 227,382  227,382  190,831  190,831 
Total capital (4)
261,232  250,347  206,640  196,006 
Risk-weighted assets (in billions) 1,773  1,570  1,530  1,227 
Common equity tier 1 capital ratio 11.4  % 12.8  % 10.0  % 12.5  % 15.6  % 7.0  %
Tier 1 capital ratio 12.8  14.5  11.5  12.5  15.6  8.5 
Total capital ratio 14.7  15.9  13.5  13.5  16.0  10.5 
Leverage-based metrics:
Adjusted quarterly average assets (in billions) (5)
$ 3,348  $ 3,348  $ 2,592  $ 2,592 
Tier 1 leverage ratio 6.8  % 6.8  % 4.0  7.4  % 7.4  % 5.0 
Supplementary leverage exposure (in billions) $ 3,986  $ 3,101 
Supplementary leverage ratio 5.7  % 5.0  6.2  % 6.0 
  December 31, 2024
Risk-based capital metrics (6):
       
Common equity tier 1 capital $ 201,083  $ 201,083  $ 194,341  $ 194,341 
Tier 1 capital 223,458  223,458  194,341  194,341 
Total capital (4)
255,363  244,809  209,256  198,923 
Risk-weighted assets (in billions) 1,696  1,490  1,444  1,151 
Common equity tier 1 capital ratio 11.9  % 13.5  % 10.7  % 13.5  % 16.9  % 7.0  %
Tier 1 capital ratio 13.2  15.0  12.2  13.5  16.9  8.5 
Total capital ratio 15.1  16.4  14.2  14.5  17.3  10.5 
Leverage-based metrics:
Adjusted quarterly average assets (in billions) (5)
$ 3,240  $ 3,240  $ 2,546  $ 2,546 
Tier 1 leverage ratio 6.9  % 6.9  % 4.0  7.6  % 7.6  % 5.0 
Supplementary leverage exposure (in billions) $ 3,818  $ 3,015 
Supplementary leverage ratio 5.9  % 5.0  6.4  % 6.0 
(1)As of January 1, 2025, CECL transition provision’s impact was fully phased-in. Capital ratios as of December 31, 2024 were calculated using the regulatory capital rule that allowed a five-year transition period related to the adoption of the CECL accounting standard on January 1, 2020.
(2)The CET1 capital regulatory minimum is the sum of the CET1 capital ratio minimum of 4.5 percent, the Corporation’s G-SIB surcharge of 3.0 percent, and SCB (under the Standardized approach) of 2.5 percent at December 31, 2025 and 3.2 percent at December 31, 2024. The countercyclical capital buffer was zero for both periods. The SLR regulatory minimum includes a leverage buffer of 2.0 percent.
(3)Risk-based capital regulatory minimums at both December 31, 2025 and 2024 are the minimum ratios under Basel 3 including a capital conservation buffer of 2.5 percent. The regulatory minimums for the leverage ratios as of both period ends are the percent required to be considered well capitalized under the PCA framework.
(4)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.
(5)Reflects total average assets adjusted for certain Tier 1 capital deductions.
(6)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.
The capital adequacy rules issued by the U.S. banking regulators require institutions to meet the established minimums outlined in the table above. Failure to meet the minimum requirements can lead to certain mandatory and discretionary actions by regulators that could have a material adverse impact on the Corporation’s financial position. At December 31, 2025 and 2024, the Corporation and its banking entity affiliates were well capitalized.
Other Regulatory Matters
At December 31, 2025 and 2024, the Corporation had cash and cash equivalents in the amount of $4.4 billion and $4.0 billion, and securities with a fair value of $13.2 billion and $18.3 billion that were segregated in compliance with securities regulations. Cash and cash equivalents segregated in compliance with securities regulations are a component of restricted cash. For more information, see Note 10 – Securities Financing Agreements, Short-term Borrowings, Collateral and Restricted Cash. In addition, at December 31, 2025 and 2024, the Corporation had cash deposited with clearing organizations
of $28.3 billion and $21.5 billion primarily recorded in other assets on the Consolidated Balance Sheet.
Bank Subsidiary Distributions
The primary sources of funds for cash distributions by the Corporation to its shareholders are capital distributions received from its bank subsidiaries, BANA and Bank of America California, N.A. In 2025, the Corporation received dividends of $33.6 billion from BANA. No dividends were received from Bank of America California, N.A in 2025.
The amount of dividends that a subsidiary bank may declare in a calendar year without OCC approval is the subsidiary bank’s net profits for that year combined with its retained net profits for the preceding two years. Retained net profits, as defined by the OCC, consist of net income less dividends declared during the period. In 2026, BANA can declare and pay dividends of approximately $6.3 billion to the Corporation plus an additional amount equal to its retained net profits for 2026 up to the date of any such dividend declaration.