What is the primary purpose of the new $800 million share repurchase authorization?

The primary purpose is to counteract the dilution effect on the company's common stock resulting from equity incentive compensation recently awarded to retirement-eligible employees.

Is this $800 million repurchase program part of Bank of America's existing capital return strategy?

This $800 million authorization is in addition to the $4.0 billion share repurchase authorization that was announced on March 11, 2015. It is a separate, incremental program.

Did the Federal Reserve approve these share repurchases?

The Federal Reserve did not object to the proposed repurchases. Bank of America notified the Federal Reserve of its intention, and as a well-capitalized bank holding company, it could proceed under specific regulations provided the Federal Reserve did not object.

When will these repurchases begin and how will they be executed?

The exact timing and amount of repurchases will depend on various factors including BAC's capital and liquidity position, financial performance, stock price, and general market conditions. The repurchases may be conducted through open market transactions or private negotiations, and the program can be suspended at any time.

BANK OF AMERICA CORP /DE/ 8-K SEC Disclosure

Summary

Bank of America Corporation (BAC) announced on March 17, 2016, that its Board of Directors has authorized an additional $800 million in common stock repurchases. This new authorization is specifically intended to offset dilution from equity incentive compensation granted to retirement-eligible employees. This program is in addition to a previously announced $4.0 billion share repurchase authorization from March 2015. The company received a non-objection from the Federal Reserve for these additional repurchases, as permitted under their regulations for well-capitalized bank holding companies. The timing and extent of these repurchases will depend on various factors, including capital levels, market conditions, and stock price, and the company reserves the right to suspend the program.

Key Highlights

1BAC Board authorized an additional $800 million share repurchase program.
2The new repurchase authorization aims to offset dilution from equity awards to retirement-eligible employees.
3This is an incremental authorization, separate from the $4.0 billion repurchase program announced in March 2015.
4The Federal Reserve provided a non-objection to the planned repurchases under its capital distribution regulations.
5These repurchases are not linked to BAC's 2016 Comprehensive Capital Analysis and Review (CCAR) submission.
6The execution of the repurchases is subject to market conditions, capital position, and other business factors.
7BAC retains the right to suspend or modify the repurchase program at any time.

BANK OF AMERICA CORP /DE/ 8-K Report, Corporate Update (Mar 18, 2016)

Summary

Key Highlights

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