Bank of America revises tax-investment accounting; retained earnings fall $1.7 billion
Bank of America changed how it accounts for tax-related affordable housing, wind and solar equity investments, moving to the proportional amortization method for housing and wind and changing the timing of investment tax credits for solar. The company says the changes mainly reclassify items between income statement lines, with an insignificant effect on annualized net income, and it has revised prior periods in an exhibit to this filing. Shareholders should note the $1.7 billion reduction in retained earnings as of September 30, 2025, and the estimated higher effective tax rate for the third quarter of 2025.
Key points
- Noninterest income for the third quarter of 2025 revised to $13.8 billion from $12.9 billion as previously reported, with income tax expense revised to $1.6 billion from $720 million
- Retained earnings as of September 30, 2025 decreased $1.7 billion from the previously reported amount
- Estimated Common equity tier 1 capital would have decreased $2.1 billion, or 13 basis points of the ratio, as of September 30, 2025; regulatory ratios will not be revised
- Estimated effective tax rate for the third quarter of 2025 would have been 20.0%, compared with 10.4% previously reported
The filing
Written by AI on Nov 8, 2026, 2:16 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on January 06, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.