Bank of America Corporation (NYSE: BAC) today announced that its Board of Directors has authorized the repurchase of up to $25 billion of common stock over time. This authorization reflects the company’s commitment to return to shareholders excess capital that is not needed to support economic growth, deliver for customers and communities, invest in the future and sustain strength and stability through the cycle. The Board also authorized repurchases to offset shares awarded under equity-based compensation plans.

For the second quarter 2021, the company’s repurchase plans will be consistent with Federal Reserve System’s (FRB) restrictions that common stock repurchases and common stock dividends be correlated to the average quarterly net income for the previous four quarters.

Following the expiration of the restrictions, Bank of America expects to distribute additional capital to shareholders. Bank of America’s ability to make capital distributions depends, in part, on its ability to maintain regulatory capital levels above the 9.5% CET1 requirement: the sum of the FRB regulatory minimum of 4.5% and applicable regulatory buffers; including the Stress Capital Buffer (SCB) of 2.5%; and the Global Systemically Important Bank Holding Company surcharge of 2.5%. As of March 31, 2021, Bank of America’s CET1 ratio was 11.8%, which equated to approximately $35 billion excess CET1 capital above the 9.5% CET1 requirement.

The timing and amount of common stock repurchases made pursuant to the Bank of America common stock repurchase program are subject to various factors, including the company's capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions. Also, it may be suspended at any time. The common stock repurchases may be effected through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.