#USA #Charlotte #Preferred Stock #Bank of America #Depositary Shares

Bank of America Plans Full Redemption of Series DD Preferred Stock

In a noteworthy announcement on February 5, 2026, Bank of America Corporation has revealed its decision to redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, known as Series DD. This decision includes the corresponding depositary shares representing a fractional interest in these preferred stocks. The redemption is scheduled to occur on March 10, 2026, coinciding with the next dividend payment date.

Details of the Redemption

The outstanding Preferred Stock shares have a liquidation preference of $25,000 each, and the associated depositary shares, which carry CUSIP No. 060505EU4, will be redeemed at a price of $1,000 per depositary share on the designated redemption date. To elaborate, the declared dividends for the depositary shares amount to $31.50 per share for the current semi-annual dividend period, which runs from September 10, 2025, until March 10, 2026. These will be paid separately to the recorded holders on March 10, 2026, provided they were on record by February 15, 2026.

It’s important to note that the redemption price specified for the depositary shares does not account for any accrued and unpaid dividends. Following the redemption date, no further dividends will accrue on the redeemed series.

Operational Procedures

The depositary shares are managed through The Depository Trust Company (DTC) and will follow their established procedures for redemption. Payment processing for the depositary shares will be facilitated by Computershare Inc. and Computershare Trust Company, N.A., acting as the redemption agents. Stakeholders should direct any inquiries to:

Computershare Trust Company, N.A.
Attn: Corporate Actions
150 Royall St.
Canton, MA 02021.

Implications of the Redemption

Bank of America's strategy to fully redeem its Series DD Preferred Stock symbolizes a commitment to maintaining robust financial health and resource allocation management. This redemption move is likely to be viewed favorably by investors and market analysts. Redemptions can reflect positively on a company's fiscal discipline and can enhance shareholder value by returning capital. Furthermore, this action underscores the bank’s proactive approach in optimizing its capital structure amidst fluctuating market conditions.

A Leader in Financial Services

As one of the dominant players in the financial sector, Bank of America provides a wide array of services, including banking, investment management, and financial risk management solutions. With a vast client base of nearly 70 million across approximately 3,600 retail financial centers and a robust digital banking platform boasting around 59 million users, the company is well-positioned in the global market.

The decision to redeem these preferred shares aligns with Bank of America's ongoing efforts to streamline operations and enhance shareholder returns. The financial industry will be watching closely as the bank executes this plan, assessing its impact on overall financial performance. Investors and analysts alike recognize the importance of such corporate actions in signaling a company’s operational strategy and financial stability.

Conclusion

In summary, Bank of America's planned redemption of its Series DD preferred stock and related depositary shares marks a significant step in its capital management strategy. With this latest announcement, the bank continues to demonstrate its commitment to efficient financial practices and returns on investment for its shareholders.

This move not only reflects careful fiscal management but also emphasizes Bank of America’s position as a leader in the financial services industry, with its focus firmly set on enhancing operational efficacy and shareholder value.