BANK OF AMERICA CORP /DE/ (BAC)

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AI: Fair-priced

Price checkThe shares look fairly priced, with strong returns already reflected in the valuation.

The latest regular-session price was $64.09 on August 14. Dividing that by $4.34 of calculated earnings over the latest four quarters gives 14.8 times earnings. The price is also 1.63 times $39.34 of book value and 2.18 times $29.37 of tangible book value, which excludes goodwill and similar assets. As an inference, a simple bank valuation assuming a 17% tangible-equity return, 10% required return, and 4% long-run growth produces roughly the observed tangible-book multiple, suggesting little obvious bargain or excess.

Big pictureEarnings are rising broadly, but banking cash flow naturally moves with customer activity.

Revenue increased from $85.5 billion in 2020 to $113.1 billion in 2025, while net income recovered from $17.9 billion to $30.5 billion, though it peaked at $32.0 billion in 2021. Second-quarter 2026 net income rose 27% to $9.1 billion. Interest income after funding costs grew 9%, while other income grew 22%. Reported operating cash moved from negative $8.8 billion in 2024 to positive $12.6 billion in 2025; for a bank, customer deposits and trading balances make that measure an unreliable guide to distributable cash.

Business strengthCapital, liquidity, and a shrinking share count provide meaningful protection for each remaining owner.

At June 30, loss-absorbing common capital was $202 billion, or 11.2% of risk-weighted assets, roughly one percentage point above the 10.2% requirement. Average available liquidity was $947 billion and deposits were $2.025 trillion. Loans written off were 0.47% of average loans, down from 0.55%. First-half buybacks totaled $13.25 billion, well above $2.15 billion of stock compensation; shares fell 5.6% year over year, limiting dilution. The new $1.28 annual dividend yields about 2.0%. Long-term debt of $340 billion versus $230 billion cash is not a normal net-debt test for a deposit-funded bank.

What could change the storyContinued income growth supports upside, while weaker credit or trading could expose the full valuation.

The strongest bull case is continued repricing of fixed-rate assets and active markets: second-quarter interest income after funding costs rose 9%, trading revenue rose 33%, and investment-banking fees rose 50%. Sustained results near the quarter’s 17% tangible-equity return, plus buybacks, could grow earnings per share faster than total profit. The bear case is normalization: trading and deal activity are cyclical, while expenses already rose 8%. A clear warning would be loan write-offs moving materially above 0.47% or capital approaching 10.2%; the current price assumes neither happens soon.

$64.09 price considered

AI: News

Strong second-quarter resultsQuarterly profit jumped as loan income, trading, and deal fees all improved.

On July 14, Bank of America reported second-quarter net income of $9.1 billion, up 27% from a year earlier, and diluted earnings of $1.21. Revenue rose 15% to $31.6 billion; trading revenue increased 33%, and investment-banking fees rose 50%. The shares closed 1.9% higher at $60.62, while the broader market gained 0.4%. That relative move is consistent with a favorable response, although same-day timing alone does not prove the earnings caused it.

Dividend raised fourteen percentManagement lifted the dividend after regulators confirmed large banks could withstand a severe downturn.

On July 24, Bank of America raised its quarterly common dividend from $0.28 to $0.32 per share, a 14% increase. This followed the Federal Reserve’s June 24 stress test, in which all 32 tested banks remained above required capital levels during a hypothetical severe recession. The higher dividend lifts annual cash payments to $1.28 per share and signals confidence in excess capital, but it also commits funds that could otherwise support loans or repurchases. No reliable event-specific market reaction was isolated.

Infrastructure financing initiativeA new financing push targets infrastructure demand, but the headline amount is not promised bank spending.

On August 12, Bank of America announced an initiative intended to mobilize $250 billion over the following year for data centers, energy, water, transportation, manufacturing, and critical minerals. “Mobilize” can include arranging outside capital, so this is not a promise to place $250 billion on the bank’s balance sheet. The opportunity is higher lending, advisory, and underwriting fees; the risk is added credit exposure if projects disappoint. No revenue target or reliable stock-price reaction was disclosed.

Berkshire trims its stakeBerkshire cut its holding again, creating a perception risk without changing Bank of America's operations.

A filing disclosed on August 14 showed Berkshire Hathaway reduced its Bank of America stake by about 6% during the second quarter. Investors closely follow Berkshire, so the reduction may affect confidence or create concern about additional selling. However, Berkshire did not explain its reasons, and the transaction does not change Bank of America’s earnings, capital, or outstanding share count. Because the sales occurred over the quarter and no later trading session had occurred by the research cutoff, no specific price effect can be established.

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Free cash flow

No reported data

Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$113.10B	$105.86B	$102.77B	$94.95B	$89.11B	$85.53B	$91.24B	$91.02B	$87.13B	$83.70B	$82.97B	$85.89B	$88.94B	$83.33B	$93.45B	$110.22B	$119.64B	$72.78B	$66.83B
Operating expenses	$69.73B	$66.81B	$65.84B	$61.44B	$59.73B	$55.21B	$54.90B	$53.15B	$54.52B	$55.08B	$57.62B	$75.66B	$69.21B	$72.09B	$80.27B	$83.11B	$66.71B	$41.53B	$37.52B
Net income	$30.51B	$26.97B	$26.30B	$27.53B	$31.98B	$17.89B	$27.43B	$28.15B	$18.23B	$17.82B	$15.91B	$5.52B	$11.43B	$4.19B	$1.45B	−$2.24B	$6.28B	$4.01B	$14.98B
Basic EPSper diluted share	$3.86	$3.23	$3.07	$3.21	$3.60	$1.88	$2.77	$2.64	$1.63	$1.57	$1.38	$0.43	$0.94	$0.26	$0.01	-$0.37	-$0.29	$0.54	$3.32
Diluted EPSper diluted share	$3.81	$3.19	$3.05	$3.19	$3.57	$1.87	$2.75	$2.61	$1.56	$1.49	$1.31	$0.42	$0.90	$0.25	$0.01	-$0.37	-$0.29	$0.54	$3.29

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)61$10.93B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 5, 2026Form 4	Greener Geoffrey SChief Risk Officer	SellCommon Stock · indirect	126.8K	$53.01	$6.72M	1.37M
Mar 12, 2026Form 4	Mensah Bernard APresident, International	SellCommon Stock	94.0K	$46.94	$4.41M	170.2K
Mar 5, 2026Form 4	Scrivener Thomas MChief Operations Executive	SellCommon Stock	50.0K	$49.82	$2.49M	228.0K
Mar 5, 2026Form 4	Bronstein Sheri B.Chief People Officer	SellCommon Stock	60.0K	$49.91	$2.99M	335.7K
Mar 4, 2026Form 4	DeMare James PCo-President	SellCommon Stock · indirect	83.8K	$50.00	$4.19M	307.2K

Review ownership filings at SEC.gov ↗

BANK OF AMERICA CORP /DE/ (BAC)

Financial charts

Financial statements

Insider buys & sells