8-KOther EventsExhibits & Filings

BANK OF AMERICA CORP /DE/ 8-K Report, Corporate Update (Jun 28, 2021)

Filed June 28, 2021For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

Bank of America Corporation (BAC) announced on June 28, 2021, its expectation to increase its quarterly common stock dividend by 17% to $0.21 per share, effective from the third quarter of 2021. This proposed dividend increase is contingent upon approval from the Corporation's Board of Directors, but signals confidence in the company's financial strength and commitment to returning capital to shareholders. Investors should note that this action reflects the company's positive outlook following recent regulatory reviews. Furthermore, the filing details that following the Federal Reserve's 2021 Comprehensive Capital Analysis and Review (CCAR), Bank of America will operate under a preliminary 2.5 percent stress capital buffer starting October 1, 2021. This regulatory requirement will set the minimum Basel 3 common equity tier 1 ratio at 9.5 percent for the period spanning October 1, 2021, to September 30, 2022. This measure indicates a robust capital position and adherence to regulatory capital standards.

Key Highlights

  • 1Expected 17% increase in quarterly common stock dividend to $0.21 per share, effective Q3 2021.
  • 2Dividend increase is subject to Board of Directors' approval.
  • 3Bank of America to implement a 2.5% stress capital buffer starting October 1, 2021.
  • 4Minimum Basel 3 common equity tier 1 ratio will be 9.5% from October 1, 2021, to September 30, 2022.
  • 5These announcements follow the Federal Reserve's 2021 Comprehensive Capital Analysis and Review (CCAR).
  • 6The filing includes a news release dated June 28, 2021, as an exhibit.

Frequently Asked Questions

The proposed dividend increase to $0.21 per share is expected to begin in the third quarter of 2021, subject to Board of Directors' approval.

Following the 2021 CCAR results, Bank of America will be subject to a 2.5% stress capital buffer, requiring a minimum Basel 3 common equity tier 1 ratio of 9.5% from October 1, 2021, to September 30, 2022.

No, the dividend increase is expected but is explicitly stated to be subject to the approval of the Corporation's Board of Directors.

A stress capital buffer is a regulatory requirement designed to ensure banks have sufficient capital to withstand adverse economic conditions. The 2.5% buffer indicates that regulators are confident in Bank of America's capital resilience, and the 9.5% minimum CET1 ratio is a strong indicator of financial stability.