NEW YORK, Feb 19, 2026, 18:53 ET — After-hours
Bank of America shares ended down 1.1% at $52.77 on Thursday and were little changed in after-hours trading after Reuters reported the lender is committing $25 billion to private credit deals. The stock swung between $51.52 and $53.30, with about 47.1 million shares traded. (Reuters)
The private-credit move matters because it puts a big U.S. bank deeper into a market long dominated by alternative asset managers. Private credit is lending done outside public bond markets, often by non-bank firms, and it has grown as borrowers look for faster funding and fewer constraints.
For Bank of America, it is a chance to hold onto client business as buyout firms and mid-sized companies shop around. For investors, it raises a familiar question: does the extra yield come with risks that show up later, when the economy slows.
Thursday’s tape wasn’t kind to the group. U.S. stocks closed lower, and the S&P 500 financial index fell 0.9% as traders fretted about credit quality and which business models could get hit by fast-moving AI. “The market is trying to grapple with what business lines are under threat in a material way from AI,” said Keith Buchanan, senior portfolio manager at GLOBALT Investments. (Reuters)
Oil added another edge. Crude settled around 2% higher at a six-month high as tensions between the United States and Iran kept traders on alert, a move that can feed inflation worries and push rates up. “The market will continue to rally in anticipation of something happening,” said Andrew Lipow, president of Lipow Oil Associates. (Reuters)
Rate expectations stayed jumpy after the Federal Reserve’s latest meeting minutes showed officials split on the path ahead, with “several” seeing a risk rates may need to rise. The minutes also flagged growing attention inside the Fed to how AI could affect jobs and productivity. (Reuters)
Bank of America is also leaning harder into retail stickiness. The bank said it will launch “BofA Rewards” on May 27, a no-fee loyalty program available to any client with a personal checking account, and said more than 30 million existing clients will newly qualify. “BofA Rewards ensures every client … can experience meaningful benefits and feel valued,” said Mary Hines Droesch, head of consumer and small business products and analytics at the bank. (Bank of America)
A regulatory filing showed Vice Chair Thong M. Nguyen received Bank of America shares from vested stock units and disposed of some shares back to the issuer to cover tax withholding, with several transactions priced at $52.55. (Bank of America Corporation)
But the private-credit buildout is not a free swing. Banks face tighter capital and oversight than many of the funds they compete with, and a turn in defaults would test how well risk is priced across the market. If oil-driven inflation keeps rates higher for longer, funding costs and credit stress can rise at the same time.
What comes next is simple: Friday’s Personal Consumption Expenditures price index — the Fed’s preferred inflation gauge — and any fresh color on how quickly Bank of America plans to deploy that $25 billion pool, with investors watching for terms, counterparties and early deal flow.
