BAC Updates Outstanding Securities List in Routine 8-K Filing

TL;DR

**BAC just filed a routine 8-K updating its list of outstanding preferred stock and debt, no big news.**

AI Summary

Bank of America Corp (BAC) filed an 8-K on January 8, 2024, to update its list of outstanding securities, including various series of preferred stock (like Series E, GG, HH, L, 1, 2, 4, 5, KK, LL, NN, PP, QQ, SS) and other debt instruments (such as Floating Rate Preferred Hybrid Income Term Securities and Senior Medium Term Notes Series A Step Up Callable Notes). This filing is a routine update, indicating no immediate change in the company's financial health or strategy, but it matters to investors as it provides a current snapshot of the company's capital structure, which is crucial for understanding its financial obligations and potential dividend payouts on preferred shares.

Why It Matters

This filing provides a current, detailed list of Bank of America's outstanding preferred stock and debt instruments, which is essential for investors to understand the company's capital structure and potential liabilities.

Risk Assessment

Risk Level: low — This 8-K is a routine informational filing and does not indicate any new financial risks or operational changes for Bank of America.

Analyst Insight

A smart investor would note this routine filing as a confirmation of Bank of America's existing capital structure, but it doesn't warrant immediate action. It serves as a reference for those holding or considering preferred shares or specific debt instruments of BAC.

Key Players & Entities

• BANK OF AMERICA CORP /DE/ (company) — the filer of the 8-K
• Series E Preferred Stock (other) — a type of outstanding security
• Series GG Preferred Stock (other) — a type of outstanding security
• Series HH Preferred Stock (other) — a type of outstanding security
• Series L Preferred Stock (other) — a type of outstanding security
• Series 1 Preferred Stock (other) — a type of outstanding security
• Series 2 Preferred Stock (other) — a type of outstanding security
• Series 4 Preferred Stock (other) — a type of outstanding security
• Series 5 Preferred Stock (other) — a type of outstanding security
• Floating Rate Preferred Hybrid Income Term Securities (other) — a type of outstanding security

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share BAC New York Stock Exchange
• $1.6 billion — ket making and similar activities . The $1.6 billion net impact is expected to be recognized

Filing Documents

• bac-20240108.htm (8-K) — 67KB
• 0000070858-24-000006.txt ( ) — 357KB
• bac-20240108.xsd (EX-101.SCH) — 6KB
• bac-20240108_def.xml (EX-101.DEF) — 23KB
• bac-20240108_lab.xml (EX-101.LAB) — 55KB
• bac-20240108_pre.xml (EX-101.PRE) — 25KB
• bac-20240108_htm.xml (XML) — 18KB

02 Results of Operations and Financial Condition

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.

01 Other Events

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

Forward-Looking Statements

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

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. BANK OF AMERICA CORPORATION By: /s/ Ross E. Jeffries, Jr. Ross E. Jeffries, Jr. Deputy General Counsel and Corporate Secretary Dated: January 8, 2024

View Full Filing

View this 8-K filing on SEC EDGAR