Bank of America announced the redemption of $2.0 billion of trust preferred securities. Beginning in January of 2016 these securities, unlike the corporation’s other outstanding series of trust preferred securities, will completely phase-out from regulatory capital.

As a result of the Bank of America Merrill Lynch merger in 2009, the company recorded a discount to par value as purchase accounting adjustments associated with these securities.

Bank of America will record a non-cash reduction to net interest income and to pretax income of approximately $600 million in the fourth quarter of 2015 for the remaining discount to par value. The company expects to realize cash savings from lower funding costs as a result of the redemption.