Bank of America 2015 Annual Report Download - page 207

Bank of America 2015 205
Preferred Stock
The cash dividends declared on preferred stock were $1.5 billion,
$1.0 billion and $1.2 billion for 2015, 2014 and 2013,
respectively.
On January 29, 2016, the Corporation issued 44,000 shares
of its 6.200% Non-Cumulative Preferred Stock, Series CC for $1.1
billion. Dividends are paid quarterly commencing on April 29,
2016. Series CC preferred stock has a liquidation preference of
$25,000 per share and is subject to certain restrictions in the
event that the Corporation fails to declare and pay full dividends.
On January 27, 2015, the Corporation issued 44,000 shares
of its 6.500% Non-Cumulative Preferred Stock, Series Y for $1.1
billion. Dividends are paid quarterly commencing on April 27,
2015. On March 17, 2015, the corporation issued 76,000 shares
of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock,
Series AA for $1.9 billion. Dividends are paid semi-annually
commencing on September 17, 2015. Series Y and AA preferred
stock have a liquidation preference of $25,000 per share and are
subject to certain restrictions in the event that the Corporation
fails to declare and pay full dividends.
At the Corporation’s annual meeting of stockholders on May
7, 2014, the stockholders approved an amendment to the Series
T Preferred Stock such that it qualifies as Tier 1 capital, and the
amendment became effective in the three months ended June 30,
2014. The more significant changes to the terms of the Series T
Preferred Stock in the amendment were: (1) dividends are no longer
cumulative; (2) the dividend rate is fixed at 6%; and (3) the
Corporation may redeem the Series T Preferred Stock only after
the fifth anniversary of the effective date of the amendment.
In 2014, the Corporation issued $6.0 billion of its Preferred
Stock, Series V, X, W and Z. On June 17, 2014, the Corporation
issued 60,000 shares of its Fixed-to-Floating Rate Non-Cumulative
Preferred Stock, Series V for $1.5 billion. Dividends are paid semi-
annually commencing on December 17, 2014. On September 5,
2014, the Corporation issued 80,000 shares of its Fixed-to-
Floating Rate Non-Cumulative Preferred Stock, Series X for $2.0
billion. Dividends are paid semi-annually commencing on March
5, 2015. On September 9, 2014, the Corporation issued 44,000
shares of its 6.625% Non-Cumulative Preferred Stock, Series W
for $1.1 billion. Dividends are paid quarterly commencing on
December 9, 2014. On October 23, 2014, the Corporation issued
56,000 shares of its Fixed-to-Floating Rate Non-Cumulative
Preferred Stock, Series Z for $1.4 billion. Dividends are paid semi-
annually commencing on April 23, 2015. Series V, X, W and Z
preferred stock have a liquidation preference of $25,000 per share
and are subject to certain restrictions in the event that the
Corporation fails to declare and pay full dividends.
In 2013, the Corporation redeemed for $6.6 billion its Non-
Cumulative Preferred Stock, Series H, J, 6, 7 and 8. The $100
million difference between the carrying value of $6.5 billion and
the redemption price of the preferred stock was recorded as a
preferred stock dividend. In addition, the Corporation issued $1.0
billion of its Fixed-to-Floating Rate Semi-annual Non-Cumulative
Preferred Stock, Series U.