Bank of America Reports $109 Billion in Bond Losses
Bank of America reported $109 billion in unrealized bond losses for the third quarter, up from $85 billion at the end of June. Fixed-income, currencies and commodities trading revenue fell 17% year over year.
Rising long-term yields are deepening unrealized losses in big banks’ securities portfolios, with Bank of America (NYSE: BAC ) showing a sharp jump in paper losses. The bank reported $109 billion in unrealized losses on its bond holdings for the third quarter, up from $85 billion at the close of June, while fixed income, currencies and commodities trading revenue fell 17% from a year earlier. Bank of America Faces $1.2 Billion Fine Adding to its challenges, Bank of America was hit with more than $1.21 billion in penalties by U.S. regulators for anti-money laundering and sanctions violations.
The U.S. Treasury announced the penalties on Tuesday, marking the third-largest penalty in Treasury history. The Office of the Comptroller of the Currency contributed $750 million, the largest penalty in the agency’s history. The compliance failures have raised questions about future expenses and the duration of the regulatory order.
Bank of America admitted to willfully violating the Bank Secrecy Act. Analysts Adjust Bank of America Ratings Despite these setbacks, analysts are adjusting their ratings on Bank of America. In a Thursday note, RBC Capital analyst Gerard Cassidy maintained an Outperform rating but lowered the price target from $65 to $60. Baird analyst David George upgraded the bank from Neutral to Outperform, maintaining a price target of $62.
These adjustments reflect the ongoing assessment of the bank’s financial health and market position. Bank of America Misses Earnings Estimates Bank of America’s financial performance has also been under scrutiny. The bank reported quarterly earnings of $1.08 per share, missing the analyst consensus estimate of $1.11. Revenue came in at $29.96 billion, falling short of the $30.69 billion estimate.
The earnings miss, coupled with the recent penalties, has put additional pressure on BAC stock performance. The results were released on Wednesday, highlighting the challenges the bank faces in meeting market expectations. Technical Analysis Bank of America closed at $51.39 as of Oct. 14, 2026.
The stock’s RSI(14) is at 22.63, indicating it is oversold. BAC trades 13.66% below its 50-day SMA of $59.52 and 6.95% below its 200-day SMA of $55.23. The 50-day SMA remains above the 200-day SMA.