Another great Q from Moynihan and Crew at BAC…

Key takeaways

• Strong quarterly performance across segments: Net income $9.1B, EPS $1.21, up roughly 34% YoY; total revenue $31.6B, up 15% YoY (FTE basis and GAAP similarly positive).

• Credit quality improving modestly vs a year ago, with sizable reserves in place:

• Provision for credit losses: $1.4B in 2Q26, down from $1.6B in 2Q25; net charge-offs $1.4B, down modestly vs prior year.

• Allowance for credit losses: $14.264B at 6/30/26, or about 1.08% of loans and leases (credit loss reserve as % of loans).

• Nonperforming loans and leases: ~$5.87B, about 0.48% of total loans; balance remains manageable and trending modestly better.

• Net charge-off ratio: 0.47% (6/30/26), improved vs 2Q25 (0.55%).

• Solid capital and liquidity posture:

• CET1 11.2% (Standardized) and 12.5% (Advanced); SLR 5.5%; regulatory capital ratios well above minimums.

• Total deposits ~ $2.0T; liquidity metrics (Global Liquidity Sources) ~$947B average; long‑term debt modest at $340B.

• Tangible book value per share $29.37; book value per share $39.34; balance sheet is conservatively geared. -(Returns and efficiency)

• Return on average assets (ROA) ~1.03%; return on average tangible common shareholders’ equity ~17.0%; efficiency ratio around 59% on GAAP; 6.6% operating leverage, with a roughly 360 bp improvement in the efficiency ratio year over year.

• Revenue mix buoyed by higher NII, asset management fees, and investment banking fees; NII up ~9% YoY on a GAAP basis (FTE basis shows strength across segments).

Key reserves and risk considerations (value investor lens)

• Reserves adequate and underwrite conservatively:

• Despite meaningful loan growth (average loans and leases ~ $1.22T), reserve levels and coverage appear to be appropriate given the macro backdrop.

• The 2Q26 provision declines vs 2Q25 suggest no material deterioration in credit quality; this reduces near‑term earnings risk from reserve builds.

• Credit risk remains localized and manageable:

• Consumer credit card delinquencies and charge‑offs have improved versus last year; commercial charge‑offs also showing favorable trends.

• Nonperforming loans/leases remain low as a percent of portfolios, supporting a favorable risk posture at the core franchise.

Growth opportunities and what to watch

• Wealth and investment management (GWIM) growth engine:

• GWIM revenue up 16% YoY; AUM balances up to $4.9T; Merrill and Private Bank segments posting strong client growth and digital engagement.

• 12% growth in client balances and continued high digital activity (87% Merrill households digitally active; Merrill AUM/wealth flows healthy).

• Opportunity for continued fee growth from asset management and advisory services, with capital-light revenue potential.

• Global Banking and Global Markets expansion:

• Global Banking IB fees up ~50% YoY; Global Markets revenue up ~34% YoY (Equities up 70% and FICC up 9% with strong trading activity). Indicates upside from market activity and deal flow.

• Management highlights solid client relationships and a large pipeline; continued strength in investment banking and securities trading could sustain above‑trend revenue contributions.

• Digital and platform leverage:

• Large and growing digital footprint (Erica, Zelle, CashPro, BA360). Greater digital adoption can improve efficiency and cross‑sell, supporting higher incremental ROE.

• Deposit growth and funding quality:

• Deposits near $2T with a diversified funding base; potential for deposits to fund higher‑return lending or fee‑based products if deposit pricing remains favorable and rate environment stabilizes.

• Capital return and valuation optics:

• Shareholder returns are robust (roughly $8B returned in 2Q26 via dividends and buybacks); tangible and book value trends are positive, supporting upside to value-oriented investors who favor capital discipline and balance-sheet strength.

What to watch next

• Interest rate trajectory and NII sensitivity: As rate cycles evolve, Bank of America’s NII mix and asset re‑pricing will influence earnings power and margin trajectory.

• Credit cycle risk: While quality is solid now, any sharper macro deterioration would test reserves; keep monitoring charge‑offs and reserve adequacy relative to loan growth.

• Growth sustainability in GWIM and Global Markets: Track asset inflows, AUM flows, and pipeline execution in capital markets to gauge the durability of elevated fee growth versus a potential normalization.

This is a big deal.  Glass House is now the second medical MSO (Trulieve) to uplift to the major exchanges.

It’s been a long slog but we are finally getting there

LONG BEACH, Calif. and TORONTO, J (GLOBE NEWSWIRE) — Glass House Brands Inc. (“Glass House” or the “Company”) (CBOE CA: GLAS.A.U) (OTCQX: GLASF)  today announced that its subordinate voting shares (the “Subordinate Voting Shares”) have been approved for listing on the New York Stock Exchange (the “NYSE”).

 

“We are proud and excited to be listing on the NYSE, the world’s most prestigious and important stock exchange. This listing was not possible prior to the recent reclassification of medical cannabis to Schedule III and represents an important developmental milestone for Glass House, the cannabis industry overall and our valued long-term shareholders who have supported us since inception,” said Kyle Kazan, Co-Founder, Chairman and CEO of Glass House.

“Beyond the listing, we remain encouraged by the opportunities presented by rescheduling. As a leading producer of low-cost sought after cannabis, Glass House is uniquely positioned to benefit potential near term opportunities presented including the opening of interstate commerce and export of medical cannabis to Europe, each of which would meaningfully increase our addressable market size and unlock enhanced profit and cash flow generation driven by more favorable pricing dynamics.”

 

The Subordinate Voting Shares are expected to begin trading under the symbol “GLAS” at the opening of trading on June 30, 2026.

 

The Company anticipates that Subordinate Voting Shares will continue trading on the OTCQX under the symbol “GLASF” until the close of market on June 29, 2026. The Subordinate Voting Shares will continue to trade on CBOE under the symbol “GLAS.A.U”.

 

Current shareholders of the Company are not required to take any action prior to the Company’s expected listing.