Bank of America : Pillar 3 Regulatory Capital Disclosures (March, 31, 2026)

Published: 2026-05-14 17:17:25 ET BAC

Published on 05/14/2026 at 05:17 pm EDT

Pillar 3 Regulatory Capital Disclosure

Advanced Approaches

For the quarter ended March 31, 2026

TABLE OF CONTENTS

DISCLOSURE MAP................................................................................................................................................ 3

SCOPE OF APPLICATION...................................................................................................................................... 4

CAPITAL STRUCTURE ........................................................................................................................................... 6

CAPITAL ADEQUACY ............................................................................................................................................. 7

RISK MANAGEMENT ORGANIZATIONAL STRUCTURE AND RESPONSIBILITIES............................................ 12

CREDIT RISK ......................................................................................................................................................... 13

RETAIL CREDIT RISK ............................................................................................................................................ 14

WHOLESALE CREDIT RISK .................................................................................................................................. 16

COUNTERPARTY CREDIT RISK............................................................................................................................ 18

CREDIT RISK MITIGATION ................................................................................................................................... 20

SECURITIZATION................................................................................................................................................... 21

MARKET RISK OVERVIEW.................................................................................................................................... 24

EQUITY EXPOSURES IN THE BANKING BOOK................................................................................................... 28

OPERATIONAL RISK OVERVIEW .......................................................................................................................... 29

INTEREST RATE RISK MANAGEMENT FOR THE BANKING BOOK ................................................................... 30

SUPPLEMENTARY LEVERAGE RATIO.................................................................................................................. 31

MODEL RISK MANAGEMENT............................................................................................................................... 32

APPENDIX: REFERENCES .................................................................................................................................... 33

DISCLOSURE MAP

Pillar 3 Requirement

Pillar 3

Description

Ref

Scope of

Corporate Overview

Principles of Consolidation and Basis of

Presentation

Responsibilities

Banking Book

Report 1Q26 Form 10-Q Page Page Reference

2025 Form 10-K

Page Reference

Application Basel 3 Regulatory Capital Standards and 4, 5 16

145

Disclosures

Capital Structure

75, 80, 81

136

Capital Adequacy

48, 49

Regulatory Capital Ratios

8, 9

Capital Adequacy

Total Loss-Absorbing Capacity

Bank Subsidiary Distributions

145

Risk-Weighted Assets

10, 11

Risk Management Risk Management Organizational Structure

Organizational Structure and and Responsibilities

16 8, 45

Credit Risk

24, 60

Credit Risk

7, 24, 25, 30, 50,

Credit Risk Exposures

57, 60, 76, 77

Retail Credit Risk

Retail Credit Risk Retail Risk Rating System

Determining Retail Risk Parameters

24, 60

Retail Credit Exposures

Wholesale Credit Risk

Wholesale Credit Risk Wholesale Risk Rating System

Determining Wholesale Risk Parameters

24, 60

Wholesale Credit Exposures

Counterparty Credit Risk

Valuation Adjustments

16, 24, 50, 82

Counterparty Credit Risk Credit Limits

16, 24

Collateral Valuation

Counterparty Credit Exposures

Wrong-Way Risk

50, 82

Credit Risk Mitigation Credit Risk Mitigation

24, 50, 71, 76

Securitization

Securitization Risk Management

Due Diligence

Securitization Exposures

22, 23

Market Risk Overview

Trading Book

Trading Risk Management

Regulatory VaR

Market Risk VaR Backtesting

Regulatory Stressed VaR

Incremental Risk Charge

Comprehensive Risk Measure

26, 27

Trading Portfolio Stress Testing

Equity Exposures in Banking Equity Exposures in Banking Book

Book Accounting and Valuation

Equity Exposures

Operational Risk Overview Operational Risk Overview

Advanced Measurement Approach

48, 81

Interest Rate Risk Management Interest Rate Risk Management for the 30

for the Banking Book

Risk Measurement

Supplementary Leverage Ratio

Model Risk Management

‌SCOPE OF APPLICATION

Bank of America Corporation is a Delaware corporation, a bank holding company (BHC) and a financial holding company. When used in this report, "Bank of America", "the Corporation", "we", "us" and "our" may refer to Bank of America Corporation individually, Bank of America Corporation and its subsidiaries or certain of Bank of America Corporation's subsidiaries or affiliates.

Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses, institutional investors, large corporations and governments with a full range of banking, investing, asset management and other financial and risk management products and services. Our principal executive offices are located in the Bank of America Corporate Center, 100 North Tryon Street, Charlotte, North Carolina 28255.

The Consolidated Financial Statements include the accounts of the Corporation and its majority-owned subsidiaries and those variable interest entities (VIEs) where the Corporation is the primary beneficiary. Intercompany accounts and transactions have been eliminated. Results of operations of acquired companies are included from the dates of acquisition, and for VIEs, from the dates that the Corporation became the primary beneficiary. Assets held in an agency or fiduciary capacity are not included in the Consolidated Financial Statements.

The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could materially differ from those estimates and assumptions. For additional information, refer to Note 1 - Summary of Significant Accounting Principles in the December 31, 2025 Form 10-K.

These disclosures are required by regulatory capital rules set out by the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Federal Reserve) and the Federal Deposit Insurance Corporation (FDIC) (collectively, U.S. banking regulators) in alignment with the Basel

3 regulatory capital framework. These disclosures provide qualitative and quantitative information about regulatory capital and risk-weighted assets (RWA) for the Advanced approaches, and should be read in conjunction with our Form 10-K for the year ended December 31, 2025, Form 10-Q for the quarter ended March 31, 2026 and the Consolidated Financial Statements for Bank Holding Companies - FR Y-9C, the Market Risk Regulatory Report for Institutions Subject to the Market Risk Capital Rule -FFIEC 102 and the Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework ― FFIEC 101 for the period ended March 31, 2026.

The Corporation's Pillar 3 disclosures may include some financial information that has not been prepared under GAAP. Certain information contained in the Pillar 3 disclosures is prepared pursuant to instructions in the U.S. Basel 3 Final Rule (Basel 3).

U.S. banking regulators permit certain Pillar 3 disclosure requirements to be addressed by their inclusion in the Consolidated Financial Statements of the Corporation. In such instances, incorporation into this report is made by reference to the relevant section(s) of the most recent Form 10-K and 10-Q filed with the United States Securities and Exchange Commission (SEC). This Pillar 3 report should be read in conjunction with the

aforementioned reports as information regarding regulatory capital and risk management is largely contained in those filings. The table on the previous page indicates the location of such disclosures.

As a BHC, we are subject to regulatory capital rules, including Basel 3, issued by U.S. banking regulators. Basel 3 is a regulatory capital framework composed of three parts, or pillars. Pillar 1 addresses capital adequacy and provides minimum capital requirements. Pillar 2 requires supervisory review of capital adequacy assessments and strategies. Pillar 3 promotes market discipline through prescribed regulatory public disclosures on capital structure, capital adequacy and RWA.

The Corporation's depository institution subsidiaries are also subject to the Prompt Corrective Action (PCA) framework. The PCA framework establishes categories of capitalization including well capitalized, based on the Basel 3 regulatory capital ratio requirements. U.S. banking regulators are required to take certain mandatory actions depending on the category of capitalization, with no mandatory actions required for well capitalized banking organizations. The Corporation and its primary banking subsidiaries, Bank of America, National Association (BANA) and Bank of America California, National Association (BACANA), are Advanced approaches institutions under Basel 3 and are required to report regulatory risk-based capital ratios and risk-weighted assets (RWA) 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 PCA framework. As of March 31, 2026, the Corporation's binding ratio was the Total Capital ratio under the Standardized approach.

In order to avoid restrictions on capital distributions and discretionary bonus payments to executive officers, the Corporation must meet risk-based capital ratio requirements that include a capital conservation buffer of 2.5 percent (under the Advanced approaches only), a stress capital buffer (SCB) (under the Standardized approach only), plus any applicable countercyclical capital buffer and a global systemically important bank (G-SIB) surcharge. The buffers and surcharge must be comprised solely of CET1 capital. At March 31, 2026 and December 31, 2025, the Corporation's minimum CET1 requirement was 10.0 percent under both the Standardized and Advanced approaches.

The Corporation is required to calculate its G-SIB surcharge on an annual basis under two methods and is subject to the higher of the resulting two surcharges. Method 1 is consistent with the approach prescribed by the Basel Committee on Banking Supervision's assessment methodology and is calculated using specified indicators of systemic importance. Method 2 modifies the Method 1 approach for various factors. The Corporation's Method 1 G-SIB surcharge is 1.5 percent, and its Method 2 G-SIB surcharge is 3.0 percent. Under the current regulatory framework, on January 1, 2027, the Corporation's G-SIB surcharge will increase by 50 bps to 2.0 percent under Method 1 and to 3.5 percent under Method 2, which will increase the Corporation's minimum capital ratio requirements. At March 31, 2026, the Corporation's CET1 capital ratio of 11.2 percent under the Standardized approach exceeded its minimum CET1 capital ratio requirement of 10.0 percent.

The Corporation and its insured depository institution subsidiaries are also required to maintain a minimum

supplementary leverage ratio (SLR) plus a leverage buffer to avoid certain restrictions on capital distributions and discretionary bonus payments to executive officers. Prior to January 1, 2026, the minimum SLR requirement was 5.0 percent for the Corporation and 6.0 percent for its insured depository institutions. Effective January 1, 2026, the Corporation and its insured depository institutions early adopted a final rule on modified enhanced SLR requirements, resulting in a minimum SLR requirement of 3.75 percent, which includes the leverage buffer, for both the Corporation and its insured depository institutions. At March 31, 2026, the Corporation's SLR was 5.5 percent and BANA's SLR was 5.9 percent, which both exceeded their minimum SLR requirement of 3.75 percent.

The numerator of the SLR is quarter-end Basel 3 Tier 1 capital. The denominator is total leverage exposure based on the daily average of the sum of on-balance sheet exposures less permitted deductions and the simple average of certain off-balance sheet exposures, as of the end of each month in a quarter.

The Corporation is subject to the Federal Reserve's final rule requiring G-SIBs to maintain minimum levels of total loss-absorbing capacity (TLAC) and long-term debt. TLAC consists of the Corporation's Tier 1 capital and eligible long-term debt issued directly by the Corporation. Eligible long-term debt for TLAC ratios is comprised of unsecured debt that has a remaining maturity of at least one year and satisfies additional requirements as prescribed in the TLAC final rule. As with the risk-based capital ratios and SLR, the Corporation is required to maintain TLAC ratios in excess of minimum requirements plus applicable buffers to avoid restrictions on capital distributions and discretionary bonus payments to executive officers.

For additional information on Basel 3 and management of the Corporation's regulatory capital and pending or proposed capital changes, refer to the Capital Management section within the Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in the March 31, 2026 Form 10-Q and Note 16 - Regulatory Requirements and Restrictions in the December 31, 2025 Form 10-K.

Information contained in this report is presented in accordance with the Basel 3 rules for RWA and capital measurement under the Advanced approaches, and follows the Pillar 3 disclosure requirements for the quantitative and qualitative presentation of data. Information presented herein may differ from similar information presented in the Consolidated Financial Statements and other publicly available disclosures. Unless specified otherwise, all amounts and information are presented in conformity with the definitions, rules and requirements of Basel 3.

‌CAPITAL STRUCTURE

Under Basel 3, Total capital consists of two tiers of capital, Tier 1 and Tier 2. Tier 1 capital is further composed of CET1 capital and additional Tier 1 capital. CET1 capital primarily includes common stock, retained earnings and Accumulated Other Comprehensive Income (AOCI). Goodwill, disallowed intangible assets and certain deferred tax assets are excluded from CET1 capital. Additional Tier

1 capital primarily includes qualifying non-cumulative preferred stock. Tier 2 capital primarily consists of qualifying subordinated debt and a limited portion of eligible credit reserves. The Corporation's Total capital is the sum of Tier 1 capital and Tier 2 capital.

The following table presents the capital composition as of March 31, 2026.

Table 1 - Capital Composition

March 31, 2026 (Dollars in millions)

Total common shareholders' equity

$275,672

Goodwill, net of related deferred tax liabilities

(68,651)

Deferred tax assets arising from net operating loss and tax credit carryforwards

Intangibles, other than mortgage servicing rights and goodwill, net of related deferred tax liabilities

(8,739)

(1,371)

Defined benefit pension plan net assets (876) Cumulative unrealized net (gain) loss related to

changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax

1,090

Accumulated net (gains) loss on certain cash flow hedges1

Other

2,657

(87)

Common equity tier 1 capital

199,695

Qualifying preferred stock, net of issuance cost

24,995

Other

(19)

Tier 1 capital

224,671

Tier 2 capital instruments

19,518

Qualifying allowance for credit losses

14,359

Other

(232)

Total capital under the Standardized approach

258,316

Adjustment in qualifying allowance for credit losses under the Advanced approaches

(10,722)

1 Includes amounts in accumulated other comprehensive income related to the hedging of items that are not recognized at fair value on the Consolidated Balance Sheet.

For additional information on the components of common shareholders' equity, refer to Schedule A "Advanced Approaches Regulatory Capital" in Bank of America's March 31, 2026 Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework ― FFIEC 101 Report. For the related breakdown of AOCI, refer to Note 12 - Accumulated Other Comprehensive Income (Loss) in the March 31, 2026 Form 10-Q. For additional information on goodwill and intangibles, refer to Note 7 - Goodwill and Intangible Assets in the March 31, 2026 Form 10-Q. For terms and conditions of common stock and preferred stock, refer to Note 11 - Shareholders' Equity in the March 31, 2026 Form 10-Q. For additional information on Tier 2 capital instruments, refer to Note 11 - Long-term Debt in the December 31, 2025 Form 10-K.

‌CAPITAL ADEQUACY

The Corporation manages its capital position so that its capital is more than adequate to support its business activities and aligns with risk, risk appetite and strategic planning. Additionally, we seek to maintain safety and soundness at all times, even under adverse scenarios, take advantage of organic growth opportunities, meet obligations to creditors and counterparties, maintain ready access to financial markets, continue to serve as a credit intermediary, remain a source of strength for our subsidiaries and satisfy current and future regulatory capital requirements. Capital management is integrated into our risk and governance processes, as capital is a key consideration in the development of our strategic plan, risk appetite and risk limits. For more information, see Capital Management within the MD&A of the Corporation's 2025 Annual Report on Form 10-K.

We conduct an Internal Capital Adequacy Assessment Process (ICAAP) on a periodic basis. The ICAAP is a forward-looking assessment of our projected capital needs and resources, incorporating earnings, balance sheet and risk forecasts under baseline and adverse economic and market conditions. We utilize periodic stress tests to assess the potential impacts to our balance sheet, earnings, regulatory capital and liquidity under a variety of stress scenarios. We perform qualitative risk assessments to identify and assess material risks not fully captured in our forecasts or stress tests. We assess the potential capital impacts of proposed changes to regulatory capital requirements. Management assesses ICAAP results and provides documented quarterly assessments of the adequacy of our capital guidelines and capital position to the Board of Directors (the Board) or its committees.

The Federal Reserve requires BHCs with average total consolidated assets of $100 billion or more to submit a capital plan and planned capital actions on an annual basis, consistent with the rules governing capital planning and the SCB requirement, which includes supervisory stress testing by Federal Reserve. Based on the results of our 2025 Comprehensive Capital Analysis and Review (CCAR) stress test under the current regulatory framework, our SCB is 2.5 percent, resulting in a Common equity tier 1 (CET1) minimum requirement of 10.0 percent, effective October 1, 2025. At March 31, 2026, the Corporation's CET1 ratio was 11.2 percent under the Standardized approach.

In February 2026, the Federal Reserve announced that SCB requirements for large banks, including the Corporation, will not change until 2027. As a result, the Corporation's SCB will remain at 2.5 percent through September 30, 2027. In April 2026, we submitted our 2026 CCAR capital plan and related supervisory stress tests. The Federal Reserve has indicated that it will disclose CCAR capital plan supervisory stress testing results by June 30, 2026.

The Board authorized a $40 billion common stock repurchase program, effective August 1, 2025. Pursuant to Board authorization, during the three months ended March 31, 2026, the Corporation repurchased $7.2 billion of common stock. For more information, see Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds in the March 31, 2026 Form 10-Q and Capital Management - CCAR and Capital Planning within the MD&A of the Corporation's 2025 Annual Report on Form 10-K.

The timing and amount of common stock repurchases are subject to various factors, including the Corporation's capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions, and may be suspended or discontinued at any time. Such repurchases may be effected through open market purchases or privately negotiated transactions, including

repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (Exchange Act).

Further, as part of our planned capital actions, during the three months ended March 31, 2026, the Corporation paid common stock dividends of $2.0 billion.

On March 19, 2026, the Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation issued a notice of proposed rulemaking (NPR) regarding risk-based capital requirements for large banking organizations. Separately, the Federal Reserve issued an NPR that would revise the calculation of the G-SIB surcharge. Any final rules issued are subject to change from the current proposals. The Corporation is evaluating the potential impact of the proposed rules on its regulatory capital requirements.

March 31, 2026 Key Capital Metrics - Bank of America Corporation

1 As of March 31, 2026, the CET1 capital ratio for the Corporation was lower under the Standardized approach.

The following tables present capital ratios and related information as well as the regulatory minimum and well capitalized ratio requirements under Basel 3 Advanced and Basel 3 Standardized for the Corporation and its major national bank subsidiaries: BANA and BACANA as of March 31, 2026.

(Dollars in millions, except ratios)

Basel 3 Standardized

Basel 3 Advanced

Regulatory Capital

Common equity tier 1 capital

199,695

Tier 1 capital

224,671

Total capital1

258,316

247,594

Assets

Risk-weighted assets

1,778,126

1,593,984

Adjusted quarterly average assets2

3,432,747

Supplementary Leverage Exposure

4,086,677

Capital Ratios

Common equity tier 1 capital

11.2%

12.5%

Tier 1 capital

12.6

14.1

Total capital

14.5

15.5

Tier 1 leverage

6.5

Supplementary Leverage Ratio

5.5

Table 2 - Regulatory Capital - Bank of America, N.A.

March 31, 2026

Bank of America, N.A.

(Dollars in millions, except ratios)

Basel 3 Standardized

Basel 3 Advanced

Regulatory Capital

Common equity tier 1 capital

186,870

Tier 1 capital

186,870

Total capital1

202,601

192,149

Assets

Risk-weighted assets

1,535,559

1,253,367

Adjusted quarterly average assets2

2,618,628

Supplementary Leverage Exposure

3,148,097

Capital Ratios

Common equity tier 1 capital

12.2%

14.9%

Tier 1 capital

12.2

14.9

Total capital

13.2

15.3

Tier 1 leverage

7.1

Supplementary Leverage Ratio

5.9

March 31, 2026

(Dollars in millions, except ratios)

Basel 3 Standardized

Basel 3 Advanced

Regulatory Capital

Common equity tier 1 capital

1,914

Tier 1 capital

1,914

Total capital1

1,929

1,920

Assets

Risk-weighted assets

5,137

2,855

Adjusted quarterly average assets2

15,426

Supplementary Leverage Exposure

15,427

Capital Ratios

Common equity tier 1 capital

37.3%

67.0%

Tier 1 capital

37.3

67.0

Total capital

37.6

67.3

Tier 1 leverage

12.4

Supplementary Leverage Ratio

12.4

Bank Holding Company

Insured Depository Institutions

Regulatory

Minimum3

Minimum4

Standardized Approach

Advanced Approaches

Capital Ratios

Common equity tier 1 capital

10.0%

7.0%

Tier 1 capital

11.5

8.5

Total capital

13.5

10.5

Tier 1 leverage

4.0

5.0

Supplementary leverage ratio

3.75

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.

Reflects total average assets adjusted for certain Tier 1 capital deductions.

The CET1 capital regulatory minimum is the sum of the CET1 capital ratio minimum of 4.5 percent, our G-SIB surcharge of 3.0 percent and our capital conservation buffer of 2.5 percent (under the Advanced approaches) or the SCB (under the Standardized approach) of 2.5 percent at March 31, 2026. The countercyclical capital buffer was zero. The SLR regulatory minimum includes a leverage buffer of 0.75 percent.

Risk-based capital regulatory minimums at March 31, 2026 are the minimum ratios under Basel 3 including a capital conservation buffer of 2.5 percent. The regulatory minimum for the Tier 1 leverage ratio represents the level required to be considered well capitalized under the current PCA framework.

As of March 31, 2026, Bank of America Corporation and its regulated banking subsidiaries were in excess of their respective minimum Total capital requirements and our regulated principal broker-dealer subsidiaries were in compliance with their net capital requirements. The Corporation's capital conservation buffer of 6.53 percent under the Standardized Approach, 7.53 percent under the Advanced Approaches and leverage buffer of 2.50 percent are above the capital conservation buffer (including the G-SIB surcharge) requirement of

5.5 percent (Standardized), 5.5 percent (Advanced) and the leverage buffer requirement of 0.75 percent, respectively.

The following table presents the Corporation's TLAC and long-term debt ratios and related information as of March 31, 2026.

(Dollars in millions)

TLAC

Minimum

Debt

Minimum1

Regulatory Capital

Total eligible balance

463,591

224,921

Percentage of risk-weighted assets2

26.1%

22.0%

12.6%

9.0%

Percentage of total supplementary leverage exposure

11.3

8.25

5.5

3.25

The long-term debt RWA regulatory minimum is comprised of 6.0 percent plus the Corporation's Method 2 G-SIB surcharge of 3.0 percent. The long-term debt leverage exposure regulatory minimum is 3.25 percent, consisting of 2.5 percent plus a 0.75 percent long-term debt leverage buffer.

The approach that yields the higher RWA is used to calculate TLAC and long-term debt ratios, which was the Standardized approach as of March 31, 2026.

Bank of America is not subject to payout ratio limitations, including limitations on capital distributions and discretionary bonus payments to executive officers, under Basel 3 requirements. For additional information on regulatory capital, capital ratios, capital conservation, stress capital and countercyclical capital buffers for the Corporation, refer to Part I. Item 1A. Risk Factors within the December 31, 2025 Form 10-K and Capital Management within the MD&A section in the March 31, 2026 Form 10-Q, Schedule A "Advanced Approaches Regulatory Capital" in Bank of America's March 31, 2026 Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework ― FFIEC 101 and Schedule HC-R "Regulatory Capital" in Bank of America's March 31, 2026 Consolidated Financial Statements for Bank Holding Companies - FR Y-9C. For information on eligible retained income, refer to Schedule HC-R "Regulatory Capital" in Bank of America's March 31, 2026 Consolidated Financial Statements for Bank Holding Companies - FR Y-9C.

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. For additional information, refer to Note 16 - Regulatory Requirements and Restrictions in the December 31, 2025 Form 10-K.

Basel 3 Advanced approaches include measures of credit risk, market risk, operational risk and risks related to the credit valuation adjustment (CVA) for over-the-counter (OTC) derivative exposures. The Advanced approaches rely on internal analytical models to measure risk weights for credit risk exposures and allow the use of models to estimate the exposure at default (EAD) for certain exposure types. Market risk applies to covered positions which include trading assets and liabilities, foreign exchange exposures and commodity exposures.

Market risk capital is modeled for general market risk as well as specific risk for products where specific risk regulatory approval has been granted; in the absence of specific risk model approval, standard specific risk charges apply.

For securitization exposures, institutions are permitted to use the Supervisory Formula Approach (SFA) and would use the Simplified Supervisory Formula Approach (SSFA) if the SFA is unavailable for a particular exposure.

Credit risk exposures are measured using internal ratings-based models to determine the applicable risk weight by estimating the probability of default (PD), loss-given default (LGD) and, in certain instances, EAD. The internal analytical models primarily rely on internal historical default and loss experience.

Operational risk is measured using internal analytical models which rely on both internal and external operational loss experience and data. The calculations require management to make estimates, assumptions and interpretations, including with respect to the probability of future events based on historical experience.

Actual results could differ from those estimates and assumptions. Under the Federal Reserve's reservation of authority, they may require us to hold an amount of capital greater than otherwise required under the capital rules if they determine that our risk-based capital requirement using our internal analytical models is not commensurate with our credit, market, operational or other risks.

Disclaimer

Bank of America Corporation published this content on May 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2026 at 21:16 UTC.