Bank of America Announces Accounting Changes for Tax-Related Equity Investments

Details

These changes involve transitioning from the equity method of accounting to the proportional amortization method (PAM) for affordable housing and eligible wind renewable energy equity investments, and altering the accounting for the investment tax credits (ITCs) for solar renewable energy equity investments. The changes primarily result in a reclassification between income statement line items and have an insignificant impact on net income. The cumulative impact of the changes resulted in a $1.7 billion decrease in retained earnings as of September 30, 2025, and an estimated $2.1 billion decrease in Common equity tier 1 capital. The changes also affected the effective tax rate for the third quarter of 2025.

Items reported

About Bank of America Corporation

Bank of America Corporation is a leading financial services company, offering a comprehensive range of banking, investment, and risk management services to individual, corporate, and institutional clients globally. As one of the largest banks in the United States, it provides essential financial products such as checking and savings accounts, credit cards, loans, wealth management, and mortgage services. Bank of America's operations are organized into various sectors, including consumer banking, global wealth and investment management, global banking, and global markets, reflecting its diverse business model and expansive client reach. The corporation is a pivotal player in global finance, influencing capital flow and investment strategies through its widespread network of branches and ATMs. Its role extends beyond traditional banking as it actively engages in community development and sustainability initiatives. Headquartered in Charlotte, North Carolina, Bank of America is well-integrated into the global financial system, with presence across several continents supporting economic growth and financial inclusion. With a strategic focus on technology and digital transformation, the bank enhances customer experiences and operational efficiency while staying ahead in an increasingly competitive financial landscape.