BofA suspends buybacks, planned dividend hike

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Bank of America revised its previously announced regulatory capital ratios downward, the company announced Monday.

The revision was due to an incorrect adjustment related to its 2009 acquisition of Merrill Lynch.

"As a result, the company is making the following adjustments to the previously announced estimated preliminary capital ratios for the first quarter ended March 31, 2014: the estimated Basel 3 Standardized transition common equity tier 1 capital ratio was revised to 11.8 percent, down 5 basis points; the estimated tier 1 capital ratio was revised to 11.9 percent, down 21 basis points; the estimated total capital ratio was revised to 14.8 percent, down 21 basis points; and the estimated tier 1 leverage ratio was revised to 7.4 percent, down 12 basis points," the company said.

Following the release, BofA stock fell 2 percent before the opening bell.

The company said it would suspend its $4 billion stock buyback program and the planned increase in its quarterly dividend after the miscalculation.

The company also said it would resubmit its 2014 capital plan to the Federal Reserve. It said its new proposed capital actions would be less than the prior plans, though it did not elaborate on how they might differ.

-CNBC.com with Reuters

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