#United States #Charlotte, North Carolina #Preferred Stock #Bank of America #Series MM

Bank of America Announces Full Redemption of Series MM Preferred Stock

Bank of America Corporation has recently made headlines with its announcement regarding the complete redemption of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series MM. This decision, made public on December 26, 2024, is set to take effect on January 28, 2025—a key date for shareholders looking to understand the impact on their investments.

Details of the Redemption

The Series MM Preferred Stock, identified by CUSIP No. 060505FR0, will be redeemed at a liquidation preference of $25,000 per share. Additionally, the related depositary shares, each representing a 1/25th interest in a share of this preferred stock (CUSIP No. 060505FQ2), will also be redeemed concurrently. This coordinated redemption effort underscores the bank's intention to streamline its capital structure and continue enhancing shareholder value.

The redemption will happen on the upcoming dividend payment date, January 28, 2025, where each depositary share will be redeemed at a price of $1,000. The declared dividends for holders of the outstanding depositary shares amount to $21.50, applicable to the current semi-annual period starting from July 28, 2024, and lasting until January 28, 2025. The payment of these declared dividends will be issued to holders on record as of January 1, 2025. Importantly, the redemption price does not include any accrued and unpaid dividends, which will cease accruing post-redemption.

Process for Redemption

Shareholders can expect a smooth redemption process as the Depositary Shares, which are maintained through The Depository Trust Company (DTC), will follow the standard DTC procedures. Payments for the redeemed depositary shares will be executed by Computershare Inc. and Computershare Trust Company, N.A., acting as the designated redemption agent. For any inquiries regarding this process, shareholders are encouraged to reach out to Computershare at the designated address in Canton, MA.

Implications for Bank of America

This announcement reflects Bank of America's ongoing strategy to optimize its capital framework and provide enhanced returns to its shareholders. As one of the most prominent financial institutions globally, Bank of America continuously seeks to adapt its strategies based on market conditions and shareholder interests.

With services extending across consumer and small business banking, wealth management, and corporate and investment banking, Bank of America serves approximately 69 million customers, demonstrating its significant presence in the financial sector. The bank manages its operations with a focus on seamless user experience across its physical branches, ATMs, and digital banking platforms, making it integral to the financial ecosystem.

As the bank prepares for this important transition, it also emphasizes its commitment to transparency and shareholder communication, particularly regarding forward-looking statements. This notice serves to remind stakeholders of the inherent uncertainties associated with such announcements.

For continuous updates on financial performance, including dividend notifications and other important announcements, stakeholders are encouraged to visit Bank of America's online newsroom and register for email alerts.

In summary, the complete redemption of the Series MM Preferred Stock and related depositary shares marks a strategic shift for Bank of America, reaffirming its focus on enhancing shareholder value and maintaining a robust financial position as it looks to the future in the competitive banking landscape.