BANK OF AMERICA CORP /DE/
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 30, 2026
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Allowance for Credit Losses
The allowance for credit losses decreased $196 million from December 31, 2025 to $14.2 billion at September 30, 2026, which included a $200 million reserve decrease related to the consumer portfolio and $4 million reserve increase related to the commercial portfolio. Table 36 presents an allocation of the allowance for credit losses by product type at September 30, 2026 and December 31, 2025.
| Table 36 | Allocation of the Allowance for Credit Losses by Product Type | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Amount · Percent ofTotal · Percent ofLoans andLeasesOutstanding (1) · Amount · Percent ofTotal · Percent ofLoans andLeasesOutstanding (1) | ||||||||||
| (Dollars in millions) · September 30, 2026 · December 31, 2025 | ||||||||||
| Allowance for loan and lease losses | ||||||||||
| Residential mortgage | $313 | 2.41% | 0.13% | $294 | 2.23% | 0.12% | ||||
| Home equity | 128 | 0.98 | 0.47 | 122 | 0.92 | 0.46 | ||||
| Credit card | 7,012 | 53.90 | 6.53 | 7,197 | 54.51 | 6.79 | ||||
| Direct/Indirect consumer | 663 | 5.10 | 0.56 | 713 | 5.40 | 0.63 | ||||
| Other consumer | 54 | 0.42 | n/m | 54 | 0.41 | n/m | ||||
| Total consumer | 8,170 | 62.81 | 1.66 | 8,380 | 63.47 | 1.73 | ||||
| U.S. commercial (2) | 3,100 | 23.84 | 0.62 | 2,967 | 22.47 | 0.65 | ||||
| Non-U.S. commercial | 827 | 6.36 | 0.49 | 801 | 6.07 | 0.52 | ||||
| Commercial real estate | 854 | 6.57 | 1.14 | 1,007 | 7.63 | 1.46 | ||||
| Commercial lease financing | 54 | 0.42 | 0.36 | 48 | 0.36 | 0.29 | ||||
| Total commercial | 4,835 | 37.19 | 0.64 | 4,823 | 36.53 | 0.69 | ||||
| Allowance for loan and lease losses | 13,005 | 100.00% | 1.04 | 13,203 | 100.00% | 1.12 | ||||
| Reserve for unfunded lending commitments | 1,179 | 1,177 | ||||||||
| Allowance for credit losses | $14,184 | $14,380 | ||||||||
(1)Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option.
(2)Includes allowance for loan and lease losses for U.S. small business commercial loans of $1.4 billion at both September 30, 2026 and December 31, 2025.
Table 37 presents a rollforward of the allowance for credit losses, including certain loan and allowance ratios for the three and nine months ended September 30, 2026 and 2025. For more information on the Corporation’s credit loss accounting policies and activity related to the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principlesto the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.
39 Bank of America
| Table 37 · Allowance for Credit Losses | ||||
|---|---|---|---|---|
| Three Months Ended September 30 | Nine Months Ended September 30 | |||
| (Dollars in millions) | 2026 | 2025 | 2026 | 2025 |
| Allowance for loan and lease losses, beginning of period | $13,114 | $13,291 | $13,203 | $13,240 |
| Loans and leases charged off | ||||
| Residential mortgage | (7) | (6) | (25) | (18) |
| Home equity | (9) | (3) | (23) | (11) |
| Credit card | (1,097) | (1,083) | (3,391) | (3,409) |
| Direct/Indirect consumer | (90) | (88) | (283) | (274) |
| Other consumer | (87) | (59) | (230) | (195) |
| Total consumer charge-offs | (1,290) | (1,239) | (3,952) | (3,907) |
| U.S. commercial (1) | (233) | (326) | (878) | (868) |
| Non-U.S. commercial | (37) | — | (98) | (8) |
| Commercial real estate | (107) | (135) | (201) | (471) |
| Commercial lease financing | — | (1) | (15) | (4) |
| Total commercial charge-offs | (377) | (462) | (1,192) | (1,351) |
| Total loans and leases charged off | (1,667) | (1,701) | (5,144) | (5,258) |
| Recoveries of loans and leases previously charged off | ||||
| Residential mortgage | 7 | 7 | 19 | 17 |
| Home equity | 14 | 14 | 41 | 44 |
| Credit card | 238 | 203 | 689 | 574 |
| Direct/Indirect consumer | 29 | 33 | 92 | 102 |
| Other consumer | 5 | 4 | 15 | 14 |
| Total consumer recoveries | 293 | 261 | 856 | 751 |
| U.S. commercial (2) | 21 | 57 | 74 | 133 |
| Non-U.S. commercial | 1 | — | 2 | 1 |
| Commercial real estate | 2 | 15 | 38 | 26 |
| Commercial lease financing | 1 | 1 | 4 | 3 |
| Total commercial recoveries | 25 | 73 | 118 | 163 |
| Total recoveries of loans and leases previously charged off | 318 | 334 | 974 | 914 |
| Net charge-offs | (1,349) | (1,367) | (4,170) | (4,344) |
| Provision for loan and lease losses | 1,240 | 1,328 | 3,970 | 4,354 |
| Other | — | — | 2 | 2 |
| Allowance for loan and lease losses, September 30 | 13,005 | 13,252 | 13,005 | 13,252 |
| Reserve for unfunded lending commitments, beginning of period | 1,150 | 1,143 | 1,177 | 1,096 |
| Provision for unfunded lending commitments | 29 | (33) | 2 | 13 |
| Other | — | (1) | — | — |
| Reserve for unfunded lending commitments, September 30 | 1,179 | 1,109 | 1,179 | 1,109 |
| Allowance for credit losses, September 30 | $14,184 | $14,361 | $14,184 | $14,361 |
| Loan and allowance ratios (3): | ||||
| Loans and leases outstanding at September 30 | $1,247,919 | $1,159,206 | $1,247,919 | $1,159,206 |
| Allowance for loan and lease losses as a percentage of total loans and leases outstanding at September 30 | 1.04% | 1.14% | 1.04% | 1.14% |
| Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at September 30 | 1.66 | 1.78 | 1.66 | 1.78 |
| Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at September 30 | 0.64 | 0.70 | 0.64 | 0.70 |
| Average loans and leases outstanding | $1,222,860 | $1,146,430 | $1,207,359 | $1,119,173 |
| Annualized net charge-offs as a percentage of average loans and leases outstanding | 0.44% | 0.47% | 0.46% | 0.52% |
| Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at September 30 | 235 | 248 | 235 | 248 |
| Ratio of the allowance for loan and lease losses at September 30 to annualized net charge-offs | 2.43 | 2.44 | 2.33 | 2.28 |
| Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at September 30 (4) | $8,317 | $8,549 | $8,317 | $8,549 |
| Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at September 30 (4) | 85% | 88% | 85% | 88% |
(1)Includes U.S. small business commercial charge-offs of $145 million and $451 million for the three and nine months ended September 30, 2026 compared to $147 million and $443 million for the same periods in 2025.
(2)Includes U.S. small business commercial recoveries of $13 million and $39 million for the three and nine months ended September 30, 2026 compared to $13 million and $42 million for the same periods in 2025.
(3)Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option.
(4)Primarily includes amounts related to credit card and unsecured consumer lending portfolios in Consumer Banking.
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