As filed with the Securities and Exchange Commission on January 8, 2024
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
January 8, 2024
BANK OF AMERICA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
1-6523
56-0906609
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
100 North Tryon Street
Charlotte, North Carolina28255
(Address of principal executive offices)
(704) 386-5681
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
BAC
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Floating Rate Non-Cumulative Preferred Stock, Series E
BAC PrE
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 6.000% Non-Cumulative Preferred Stock, Series GG
BAC PrB
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 5.875% Non-Cumulative Preferred Stock, Series HH
BAC PrK
New York Stock Exchange
7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L
BAC PrL
New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share of
BML PrG
New York Stock Exchange
Bank of America Corporation Floating Rate Non-Cumulative
Preferred Stock, Series 1
Depositary Shares, each representing a 1/1,200th interest in a share of
BML PrH
New York Stock Exchange
Bank of America Corporation Floating Rate Non-Cumulative
Preferred Stock, Series 2
Depositary Shares, each representing a 1/1,200th interest in a share of
BML PrJ
New York Stock Exchange
Bank of America Corporation Floating Rate Non-Cumulative
Preferred Stock, Series 4
Depositary Shares, each representing a 1/1,200th interest in a share of
BML PrL
New York Stock Exchange
Bank of America Corporation Floating Rate Non-Cumulative
Preferred Stock, Series 5
Floating Rate Preferred Hybrid Income Term Securities of BAC Capital Trust XIII (and the guarantee related thereto)
BAC/PF
New York Stock Exchange
5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities of BAC Capital Trust XIV (and the guarantee related thereto)
BAC/PG
New York Stock Exchange
Income Capital Obligation Notes initially due December 15, 2066 of Bank of America Corporation
MER PrK
New York Stock Exchange
Senior Medium-Term Notes, Series A, Step Up Callable Notes, due
BAC/31B
New York Stock Exchange
November 28, 2031 of BofA Finance LLC (and the guarantee of the
Registrant with respect thereto)
Depositary Shares, each representing a 1/1,000th interest in a share of 5.375% Non-Cumulative Preferred Stock, Series KK
BAC PrM
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 5.000% Non-Cumulative Preferred Stock, Series LL
BAC PrN
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 4.375% Non-Cumulative Preferred Stock, Series NN
BAC PrO
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 4.125% Non-Cumulative Preferred Stock, Series PP
BAC PrP
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 4.250% Non-Cumulative Preferred Stock, Series QQ
BAC PrQ
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 4.750% Non-Cumulative Preferred Stock, Series SS
BAC PrS
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Item 2.02 Results of Operations and Financial Condition.
The information provided under Item 8.01 below is incorporated by reference to this Item 2.02 in its entirety.
Item 8.01 Other Events.
As part of the global transition away from the London Interbank Offered Rate as a benchmark rate, various alternative reference rates were established, including the Bloomberg Short-Term Bank Yield Index (“BSBY”) and Secured Overnight Financing Rate (“SOFR”). Beginning in 2021, Bank of America Corporation (the “Corporation”) and other members of the banking industry began utilizing these rates in various lending agreements, including commercial loans.
On November 15, 2023, the Bloomberg Index Services Limited announced that the permanent cessation of BSBY and all its tenors will be effective on November 15, 2024. After such announcement, and following the Corporation’s internal and external consultations, it was determined that the accounting transition relief in ASC 848, Reference Rate Reform, is not available for BSBY cessation.
Accordingly, under U.S. GAAP, the Corporation was required to “de-designate” certain interest rate swaps used in cash flow hedges of certain BSBY-indexe d loans, as of November 15, 2023, and reclassify into earnings any amounts recognized in the accumulated other comprehensive income category of shareholders’ equity that relate to forecasted cash flows that are now no longer expected to occur. Therefore, the Corporation recognized a net non-cash, pretax charge of approximately $1.6 billion in the quarter ending December 31, 2023 (the “Charge”) presented in revenue through market making and similar activities. The $1.6 billion net impact is expected to be recognized back into the Corporation’s interest income in subsequent periods largely through 2026. The impact of such accounting treatment is solely due to the expectation that interest payments on the BSBY-indexed loans will change to SOFR, which is expected to have a nominal impact to the economics of these loans. The Charge reduced the Corporation’s common equity tier 1 (CET1) ratio by eight basis points, as of December 31, 2023.
The Corporation will report its fourth-quarter 2023 financial results on Friday, January 12, 2024.
Forward-Looking Statements
Certain statements contained in this Report may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the current expectations, plans or forecasts of the Corporation based on available information. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements often use words like “expects,” “anticipates,” “believes,” “estimates,” “targets,” “intends,” “plans,” “predict,” “goal” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements speak only as of the date they are made, and the Corporation undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
Forward-looking statements represent the Corporation’s current expectations, plans or forecasts, including its future results, revenues, expenses, interest income, efficiency ratio, capital measures, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of its future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Corporation’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks discussed under Item 1A. “Risk Factors” of Bank of America’s Annual Report on Form 10-K for the year ended December 31, 2022 and in any of the Corporation’s other subsequent SEC filings.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
