BofA Finance Introduces 18-Month Callable Yield Notes Tied to Russell 2000 and S&P 500 Indices

Contingent Coupon Details and Payment Schedule

The notes feature a 9.60% per annum contingent coupon rate, equating to 0.80% monthly on the principal. Coupon payments depend on both the Russell 2000 and S&P 500 indices closing at or above 65.00% of their starting values on monthly observation dates. The strike date was July 21, 2026, with starting values set at 2,987.395 for the Russell 2000 and 7,509.20 for the S&P 500.

Monthly coupon payments occur on specified contingent payment dates, with the final payment due at maturity on January 26, 2028, unless redeemed earlier. BofA Securities, Inc., as calculation agent, determines observation values based on closing levels of each index on observation dates. No coupon is paid for any month if either index closes below the 65.00% coupon barrier.

Issuer’s Call Rights and Early Redemption Terms

Starting October 26, 2026, BofA Finance may redeem all notes on any monthly call date. Early redemption pays the $1,000 principal plus the contingent coupon if both indices meet or exceed their coupon barriers on the observation date. Redemption notices must be provided to the trustee between five business days and 60 calendar days before the call date.

The notes are not exchange-listed. Initial estimated value at pricing is between $940.00 and $990.00 per $1,000 principal, below the public offering price, reflecting valuation differences before underwriting discounts.

Principal Risk and Downside Exposure at Maturity

The notes include a downside threshold: if either index declines more than 35% from its starting value by January 21, 2028, investors bear 1:1 downside exposure to the worst-performing index, risking up to 100% of principal. Losses correspond directly to the poorest index performance.

If both indices remain at or above 65.00% of their starting values, investors receive full principal ($1,000 per note) at maturity plus a final contingent coupon if the least performing index meets the coupon barrier. In case of default and acceleration, redemption is calculated as if acceleration occurred on maturity, with valuation three trading days prior.

Term, Dates, and Index Specifications

The notes mature in approximately 18 months, with a strike date of July 21, 2026, pricing on July 22, 2026, issuance on July 27, 2026, valuation on January 21, 2028, and maturity on January 26, 2028. They are linked to the Russell 2000 Index (Bloomberg: RTY) and S&P 500 Index (Bloomberg: SPX), both price return indices. Starting values are RTY: 2,987.395 and SPX: 7,509.20.

The coupon barrier and principal protection threshold for both indices are set at 65.00% of starting values, equaling 1,941.807 for Russell 2000 and 4,880.98 for S&P 500. Notes are issued in minimum $1,000 denominations and multiples thereof. Observation and call payment dates are detailed in the pricing supplement.

Pricing, Underwriting Fees, and Agent Roles

Public offering price is $1,000 per note with a $3.50 underwriting discount per $1,000 principal, yielding net proceeds of $996.50 to BofA Finance. The discount includes up to $2.50 sales commission and $1.00 structuring fee. Some dealers selling to fee-based advisory accounts may reduce concessions, potentially lowering the offering price to $996.50.

BofA Securities, Inc., an affiliate of BofA Finance, serves as calculation and selling agent. The notes’ CUSIP is 09712GBR4. Actual note value fluctuates based on multiple factors; investors are advised to review risk disclosures starting on page PS-9 of the pricing supplement.

Credit Risk and Guarantee Information

Payments depend on BofA Finance LLC’s creditworthiness, with Bank of America Corporation providing a full, unconditional guarantee. BAC ensures payment of principal and coupons if BofA Finance defaults. The notes are not FDIC insured or bank guaranteed despite the guarantee.

Investor recovery rights upon default follow the senior indenture terms and "Events of Default and Rights of Acceleration" in the prospectus. Redemption upon acceleration uses a deemed valuation date, with contingent coupon payments prorated accordingly.

Registration and Regulatory Disclosures

Issued under Securities Act of 1933 registration numbers 333-290665 and 333-290665-01, the pricing supplement was filed July 21, 2026, under Rule 424(b)(2). Documentation includes the prospectus dated December 8, 2025, Series A Prospectus Supplement, and Product Supplement EQUITY-1, all dated December 8, 2025.

The SEC and other regulators have not approved or disapproved the securities or verified the accuracy of offering documents. Misrepresentations are criminal offenses. The disclosure highlights differences from traditional debt securities and directs investors to risk factors on pages PS-9, PS-3, S-7, and page 7 of the prospectus.

Starting Values and Index Performance Mechanics

Starting values were set on July 21, 2026: Russell 2000 at 2,987.395 and S&P 500 at 7,509.20. These may differ from closing levels on the pricing date, July 22, 2026.

The least performing underlying is the index with the lowest return over the note term. Both indices must remain above 65.00% of their starting values monthly for coupon eligibility, meaning strong performance in one cannot offset a decline below the barrier in the other, introducing correlation risk.

Valuation Date Flexibility and Observation Procedures

The valuation date is January 21, 2028, but may be postponed per terms in the product supplement under "Events Relating to Observation Dates." Specific postponement conditions are detailed in the product supplement, not the pricing supplement.

Observation values are based on closing index levels on observation dates, with the ending value defined at valuation date. Final investor returns depend on index levels at valuation, subject to any postponements. Investors should consult the product supplement for full observation and postponement details.