Bank of America Corp (NYSE:BAC) is up roughly 40% since the November elections, but it has hardly been a smooth ride. After an initial surge following Donald Trump’s victory, BofA shares took a multiweek rest. Following another push forward ahead of the Federal Reserve’s expected rate hike, Wall Street sold the news and sent BAC stock into its current double-digit funk.

Now, hopes for continued Fed rate hikes later on this year are tapering off following a disappointing March jobs report, causing BofA to slip in Friday’s trading. Other worries are mounting, too, amid uncertainty in Washington. Trump’s failure to get traction on the American Health Care Act has shaken investors that thought financial deregulation was a sure thing; and even if something does get done, the timetable has been pushed back.

That, and a newly launched strike against Syria, are further muddying the waters, sending bank shares — including BAC stock — even lower.

But investors who look at today’s environment and panic about the next few months or even years for Bank of America are missing the bigger picture.

Investors Take Their Profits

Investors have spent the past couple of weeks baking in the increased uncertainty and longer time span for bank deregulation. The idea was that a cut-down on bank rules would give banks more flexibility, improve operating efficiency and boost the bottom line.

Bank of America’s CET 1 transition ratio under Basel III ended the fourth quarter at 11%. Its leverage ratios exceed that of the U.S. regulatory minimums that will take effect next year. Should the government loosen requirements, the bank will have more capital available that it can use to do more business.

Of course, Wall Street is forgetting that even if no regulatory requirements change, BAC now manages its business with an understanding of its risks. This includes things like bad mortgages. BofA now calculates its operational risk capital and strives to get that number lower every quarter.

Looking beyond the near-term, Bank of America’s prospects are pretty strong. Last quarter, the company earned 40 cents per share on a top line of $20 billion. The company on Jan. 13 highlighted its growth in average deposits, up 5% year-over-year to $64 billion. Charge-offs improved by 23%, while productivity improvements in the quarters ahead will maximize the return on any higher rates.

Deposit and Loan Growth

CEO Brian Moynihan expects market share growth so long as deposit growth outpaces the market average.

Technology shifts, such as digital and mobile, will also add meaningfully to this asset growth. Look for the bank to grow its sales force, which will accelerate its asset size.

Deposits are growing at a steady rate, but the bank is maintaining good pricing discipline. Expenses fell in the quarter even as its investment in the business continued. The net result will lead to a higher ROI for investors without more risks.

In the fourth quarter, Bank of America’s loans grew on the consumer side, too:

“We saw a $50-odd billion of deposit growth year-over-year. Consumer business was the lion’s share of that. To give you a sense, fourth quarter ‘15 to fourth quarter ‘16, checking balance in the consumer business grew 12%, so the growth is strong.”

BAC also is repurchasing shares and keep its credit risk metrics within tolerable levels.

Bottom Line on BAC Stock

Bank of America is a solid financial institution that will give investors strong, risk-adjusted returns. While BofA might not get additional rate hikes as soon as hoped for, the Federal Reserve has at least gotten the ball rolling, and Bank of America will benefit as a result.

Investors who missed out on a near-doubling in BAC stock over the past year would do well to let the market keep chipping away at Bank of America over the next couple of weeks before buying in.

But the chances are low that any dip will last for long.

As of this writing, Chris Lau did not hold a position in any of the aforementioned securities.