Bank of America Corporation PFD SER B 7%

Strong core banking performance + resilient client activity; markets weaker - Net income $6.9B; EPS $0.91. - Regulatory settlement charge: $1.2B (non-tax deductible) = about -$0.17/share. *Excluding it:* net income $8.1B / ~$1.08/share. - Companywide revenue ~$30B, +3% YoY; NII +8% YoY to $16.6B (FTE). - Markets/investment banking down vs prior periods (investment banking and sales & trading weaker), though equities delivered a record Q3. - Management’s “economic signal” is based on high client activity: consumers spending ~+5% YTD with activity similar into early October.

Earnings drivers: NII improving; credit quality stable-to-better - Net interest yield: 2.16%, +15 bps YoY and +8 bps QoQ, approaching ~2.3% medium-term target. - Balance sheet growth driven by loans: loans +$34B QoQ to $1.25T, deposits >$2T. - Credit quality improved modestly: provision ~$1.3B (lower than Q2); net charge-off ratio improved to 44 bps. - Consumer: card loss rate ~3.22%, improved vs Q2; delinquencies declined for the 6th straight quarter YoY. - Commercial: criticized assets at lowest on a rate basis since 4Q 2019; non-performing loans down QoQ.

Loan/deposit momentum supports growth; deposit franchise remains a competitive advantage - Net new core consumer checking accounts: +200k in the quarter; 39M total, ~8 straight years of quarterly growth. - Card accounts: +1M+ opened; card balances ~+5% (aligned with stated medium-term goals). - Commercial loan growth broad-based: +8% YoY (small business +2%, business banking +9%, global commercial +6%, global corporate +10%, GWIM custom lending +22%). - Deposits: ending deposits up $14B QoQ; mix favorable with non-interest-bearing deposits >75% of YoY deposit growth; deposit pricing only +3 bps to 1.49%. - Diversified franchise positives: Wealth flows ~$41B in the quarter; client balances >$5.7T.