Bank of America : Liquidity Coverage Ratio (March 31, 2026)

Published: 2026-05-14 17:17:22 ET BAC

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

DISCLOSURE MAP 3

CORPORATE OVERVIEW 3

LCR REQUIREMENTS AND DISCLOSURES 3

KEY DRIVERS 4

ELIGIBLE HQLA COMPOSITION 5

FUNDING SOURCES CONCENTRATION 5

DERIVATIVE EXPOSURES AND POTENTIAL COLLATERAL CALLS 5

CURRENCY MISMATCH IN THE LCR 5

LIQUIDITY AND FUNDING MANAGEMENT 6

These disclosures are required by the Liquidity Coverage Ratio: Public Disclosure Requirements Final Rule published by the Board of Governors of the Federal Reserve System in alignment with the Basel 3 liquidity framework and U.S. Liquidity Coverage Ratio (LCR) Final Rule (LCR Rule). Information contained in this report is presented in accordance with the LCR Rule, and follows the Liquidity Coverage Ratio: Public Disclosure Requirements Final Rule 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 the LCR Rule.

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-Q filed with the U.S. Securities and Exchange Commission. This Pillar 3 report should be read in conjunction with the aforementioned report as information regarding liquidity and risk management is largely contained in this filing. The table below indicates the location of such disclosure.

Description

Pillar 3 Report page

reference

1Q26 Form 10-Q page

reference

Corporate Overview

LCR Requirements and Disclosures

20-24

Key Drivers of the LCR

20-24

Composition of Eligible HQLA

20-24

Concentration of Funding Sources

20-24

Derivative Exposures and Potential Collateral Calls

Currency Mismatch in the LCR

Centralized Liquidity Management Function

20-24

Bank of America Corporation is a Delaware corporation, a bank holding company 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 objective of the LCR is to promote the short-term resilience of the liquidity risk profile of financial institutions by requiring banks to hold high-quality liquid assets (HQLA) that can be easily monetized to meet their liquidity needs for a 30 calendar-day liquidity stress scenario. The LCR is intended to improve the banking sector's ability to absorb shocks arising from financial and economic stress. The LCR is calculated as the amount of a financial institution's HQLA relative to the prescribed net cash outflows the institution could encounter over a 30 calendar-day period of significant liquidity stress, expressed as a percentage.

The key drivers of the Corporation's U.S. LCR include changes in total HQLA and composition of Level 1 and Level 2 assets, as well as changes in net cash outflows related to, but not limited to, deposits, commitment facilities, securities financing and client brokerage and collateralized derivatives.

For the quarterly period ended March 31, 2026, the Corporation's average daily U.S. LCR was 111.7 percent. The ratio is the average of the daily reported LCRs throughout the quarter. The weighted HQLA averaged $672.5 billion and net cash outflows over a 30 calendar-day period averaged $602.3 billion. The Corporation's average daily LCR remained stable compared to prior quarter primarily due to use of liquidity resource to support non-bank activities offset by lower net secured funding outflows.

01/01/2026 to 3/31/2026

In millions of U.S. Dollars

Average Unweighted Amount 1Q26

Average Weighted Amount 1Q26

HIGH-QUALITY LIQUID ASSETS

Total eligible high-quality liquid assets (HQLA), of which:

675,247

672,532

Eligible level 1 liquid assets

657,147

Eligible level 2A liquid assets

18,100

15,385

Eligible level 2B liquid assets

CASH OUTFLOW AMOUNTS

Deposit outflow from retail customers and counterparties, of which:

1,188,666

87,832

Stable retail deposit outflow

698,690

20,961

Other retail funding outflow

320,562

36,329

Brokered deposit outflow

169,414

30,542

Unsecured wholesale funding outflow, of which:

816,841

306,002

Operational deposit outflow

483,843

120,164

Non-operational funding outflow

317,634

170,474

Unsecured debt outflow

15,364

Secured wholesale funding and asset exchange outflow

1,126,610

252,524

Additional outflow requirements, of which:

710,646

185,484

Outflow related to derivative exposures and other collateral requirements

60,572

42,209

Outflow related to credit and liquidity facilities including unconsolidated structured transactions and mortgage

commitments

650,074

143,275

Other contractual funding obligation outflow

12,476

Other contingent funding obligations outflow

380,725

13,433

TOTAL CASH OUTFLOW

4,235,965

857,750

CASH INFLOW AMOUNTS

Secured lending and asset exchange cash inflow

960,394

194,842

Retail cash inflow

7,946

3,973

Unsecured wholesale cash inflow

25,470

18,393

Other cash inflows, of which:

51,048

50,952

Net derivative cash inflow

16,111

Securities cash inflow

3,736

Broker-dealer segregated account inflow

31,105

Other cash inflow

TOTAL CASH INFLOW

1,044,859

268,160

Average

Amount1

HQLA AMOUNT

672,532

TOTAL NET CASH OUTFLOW AMOUNT EXCLUDING THE MATURITY MISMATCH ADD-ON

589,590

MATURITY MISMATCH ADD-ON

12,697

TOTAL UNADJUSTED NET CASH OUTFLOW AMOUNT

602,288

OUTFLOW ADJUSTMENT PERCENTAGE

100%

TOTAL ADJUSTED NET CASH OUTFLOW AMOUNT

602,288

LIQUIDITY COVERAGE RATIO (%)

111.7%

1 The amounts reported in this column may not equal the calculation of those amounts using component amounts reported in rows 1-28 due to

technical factors such as the application of the level 2 liquid asset caps and the total inflow cap.

Note: Eligible HQLA reported in rows 1-4 in the table above exclude excess liquidity held at certain subsidiaries.

Under the LCR Rule, HQLA is classified into three categories: Level 1, Level 2A and Level 2B. Level 1 assets include central bank reserves (less reserve requirements) and certain marketable securities backed by sovereigns and central banks. Level 2A assets, subject to a 15 percent haircut, include certain U.S. government-sponsored enterprise securities and government or central bank securities not eligible for Level 1. Level 2B assets, subject to a 50 percent haircut, include certain corporate debt securities (including commercial paper), municipal bonds and publicly traded common equities. Level 2 assets (both Level 2A and Level 2B combined) are limited to 40 percent of total HQLA and Level 2B assets are limited to 15 percent of total HQLA. For additional information, refer to Liquidity Risk - Global Liquidity Sources and Other Unencumbered Assets within the Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) section of the March 31, 2026, Form 10-Q.

Average weighted amount

In millions of U.S. Dollars

ELIGIBLE HQLA

Eligible cash 1

241,712

Eligible level 1 securities 2

415,435

TOTAL eligible level 1 assets

657,147

Eligible level 2a securities 2

15,385

Eligible level 2b securities 2

Total eligible HQLA

672,532

1 Central bank reserves

2 Per the LCR Rule, HQLA securities are represented at fair value which may differ from the accounting treatment under GAAP

We fund our assets primarily with a mix of deposits and secured and unsecured liabilities through a centralized, globally coordinated funding approach diversified across products, programs, markets, currencies and investor groups. We consider a substantial portion of our deposits to be a stable, low-cost and consistent source of liquidity. Our long-term unsecured debt is primarily issued in a variety of maturities and currencies to achieve cost-efficient funding, to maintain an appropriate maturity profile and to ensure that we maintain global capital market access. Our trading activities in our broker-dealer entities are primarily funded on a secured basis through securities lending and repurchase agreements and these amounts will vary based on customer activity and market conditions. We believe funding these activities in the secured financing markets is less sensitive to changes in our credit ratings than unsecured financing, and more cost-efficient. For additional information on funding sources refer to Liquidity Risk - Diversified Funding Sources within the MD&A section of the March 31, 2026, Form 10-Q.

We enter into derivative transactions with customers to help them manage different types of risk, including risks that they may face given changes in interest rates, currency relationships, securities prices or commodities prices. In addition, we enter into derivative transactions with third parties and between affiliate legal entities to help enable management of risk across the enterprise. Risk factors in derivatives activities impacting liquidity include: contractual margin asymmetries, cash and collateral outflows related to changes in the financial condition of the Corporation, counterparty behavior and valuation changes.

Given the nature of our business, our HQLA and net cash outflows are primarily in U.S. dollars. Additional amounts are primarily held in G7 currencies. We maintain and monitor concentrations within our funding profile, such as maturities, currencies and counterparties, and access foreign exchange markets to supplement local currency holdings to meet outflows.

We manage our liquidity position through line of business and asset-liability management activities, as well as through our legal entity funding strategy, on both a forward and current (including intraday) basis under both expected and stressed conditions. We believe that a centralized approach to funding and liquidity management enhances our ability to monitor liquidity requirements, maximizes access to funding sources, minimizes borrowing costs and facilitates timely responses to liquidity events.

We provide centralized funding and liquidity management through a variety of activities, including monitoring of established limits and liquidity risk appetites, reviews of liquidity risk management controls and production, and reviews of regulatory and internally defined liquidity risk metrics. In addition, Global Risk Management (GRM) provides oversight of centralized liquidity and funding management as well as oversight of liquidity management across front-line units and legal entities. GRM oversees the liquidity risk management governance structure, establishes liquidity risk policies, reports and monitors liquidity risk limits and provides review and challenge of the Corporation's liquidity risk management processes. Our liquidity and funding strategy and portfolio is overseen by our Asset and Liability Governance Committee (ALGC), and any significant change to strategy, framework or portfolio must be reviewed by the ALGC.

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.