Bank of America(BAC) - 2025 Q1 - Quarterly Report

Part I. Financial Information Item 1. Financial Statements This section presents Bank of America Corporation's unaudited consolidated financial statements for Q1 2025, including core financial statements and explanatory notes Consolidated Financial Statements The consolidated financial statements report increased net income and total assets for Q1 2025, driven by growth in securities financing and deposits Q1 2025 vs Q1 2024 Income Statement Highlights | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Total revenue, net of interest expense | $27,366 | $25,818 | | Provision for credit losses | $1,480 | $1,319 | | Total noninterest expense | $17,770 | $17,237 | | Net income | $7,396 | $6,674 | | Diluted earnings per share | $0.90 | $0.76 | Balance Sheet Highlights (as of period end) | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Total assets | $3,349,424 | $3,261,519 | | Total loans and leases | $1,110,625 | $1,095,835 | | Total deposits | $1,989,564 | $1,965,467 | | Total liabilities | $3,053,843 | $2,965,960 | | Total shareholders' equity | $295,581 | $295,559 | Notes to Consolidated Financial Statements These notes provide detailed disclosures supporting the consolidated financial statements, covering income, derivatives, securities, loans, and segment information Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) This section provides management's perspective on the company's Q1 2025 financial condition, operational results, and comprehensive risk management practices Executive Summary Bank of America reported increased net income and diluted EPS for Q1 2025, driven by higher revenues and growth in assets and deposits Q1 2025 Financial Highlights | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Net interest income | $14,443 | $14,032 | | Noninterest income | $12,923 | $11,786 | | Total revenue | $27,366 | $25,818 | | Provision for credit losses | $1,480 | $1,319 | | Noninterest expense | $17,770 | $17,237 | | Net income | $7,396 | $6,674 | | Diluted EPS | $0.90 | $0.76 | - The increase in net income was primarily due to higher noninterest income and net interest income, partially offset by higher noninterest expense[22] - Total assets increased by $87.9 billion from year-end 2024 to $3.3 trillion, driven by higher securities financing activity, trading assets, and loan growth[23] - The Board of Directors declared a quarterly common stock dividend of $0.26 per share[20] Business Segment Operations This section details the performance of the four main business segments, highlighting varied results with Global Markets showing significant growth Net Income by Business Segment (Q1 2025 vs Q1 2024) | Business Segment | Q1 2025 Net Income (in millions) | Q1 2024 Net Income (in millions) | % Change | | :--- | :--- | :--- | :--- | | Consumer Banking | $2,531 | $2,656 | (5)% | | Global Wealth & Investment Management | $1,007 | $1,005 | —% | | Global Banking | $1,913 | $1,986 | (4)% | | Global Markets | $1,949 | $1,723 | 13% | | All Other | $(4) | $(696) | (99)% | Managing Risk The company outlines its comprehensive approach to managing various risks, emphasizing strong capital, robust liquidity, and stable credit quality Item 3. Quantitative and Qualitative Disclosures about Market Risk This section refers to the Market Risk Management discussion within the MD&A for quantitative and qualitative disclosures about market risk - The report directs readers to the 'Market Risk Management' section on page 38 of the MD&A for detailed disclosures about market risk[283] Item 4. Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025 - The CEO and CFO concluded that the Corporation's disclosure controls and procedures were effective as of the end of the reporting period[284] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[285] Part II. Other Information Item 1. Legal Proceedings This section refers to Note 10 of the Consolidated Financial Statements for disclosures on litigation and regulatory matters, supplementing the 2024 Annual Report on Form 10-K - For details on legal proceedings, the report incorporates by reference the 'Litigation and Regulatory Matters' section in Note 10 – Commitments and Contingencies[529] Item 1A. Risk Factors The company states that there have been no material changes from the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - There are no material changes from the risk factors set forth in the Corporation's 2024 Annual Report on Form 10-K[530] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds During Q1 2025, Bank of America repurchased common stock as part of its announced program, with no unregistered equity sales Share Repurchase Activity (Q1 2025) | Period | Total Common Shares Repurchased (thousands) | Weighted Average Per Share Price | Total Purchased as Part of Publicly Announced Programs (thousands) | | :--- | :--- | :--- | :--- | | Jan 2025 | 17,826 | $47.10 | 17,798 | | Feb 2025 | 57,574 | $46.37 | 32,913 | | Mar 2025 | 58,656 | $42.08 | 51,813 | | Total Q1 | 134,056 | $44.59 | 102,524 | - The company repurchased approximately 103 million shares for $4.5 billion under its $25 billion common stock repurchase program authorized in July 2024[532] Item 5. Other Information This section discloses no Rule 10b5-1 trading arrangement changes and provides required disclosures on authorized and inadvertent transactions - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[533] - Pursuant to Section 13(r) of the Exchange Act, the company disclosed authorized wire payments totaling approximately $29.3 million related to Afghanistan and Yemen, and inadvertent payments of $146,543 for a newly designated entity[535][536] Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including the Restated Certificate of Incorporation, Bylaws, award agreements, and certifications