Bank of America ($BAC) changed accounting for tax-related affordable housing & eligible wind investments…
Filed with the SEC on · Summarized by InvestorsBot
Bank of America ($BAC) changed accounting for tax-related affordable housing & eligible wind investments from equity method to proportional amortization (PAM); solar ITCs now recognized over asset life and shown in noninterest income. 📊♻️ #Accounting #Banking
2024 impact: noninterest income revised +$3.97B to $49.80B; income tax expense revised +$4.13B to $6.25B. Retained earnings decreased $1.7B cumulative as of 9/30/2025. $BAC 💡 #Taxes #FinancialReporting
Regulatory note: BAC will not revise filed capital ratios, but the accounting change would’ve cut CET1 by ~$2.1B (~13 bps) as of 9/30/2025. Q3 2025 effective tax rate would have been ~20.0% vs 10.4% reported. Timing-driven; net income effect insignificant. $BAC 🧾 #CET1 #Accounting