EXHIBIT 99.1 FOR IMMEDIATE RELEASE April 19, 1999 Contact: Investors Susan Carr (704-386-8059) or Kevin Stitt (704-386-5667) Media Bob Stickler or Ricke Beebe (704-386-8465) BANKAMERICA EARNS $1.9 BILLION, OR $1.08 PER DILUTED SHARE, IN FIRST QUARTER CHARLOTTE, NC, April 19, 1999 - BankAmerica Corporation today reported net income of $1.91 billion, or $1.10 ($1.08 diluted) per share, for the first quarter of 1999, a 44 percent increase from net income of $1.33 billion, or $.77 ($.75 diluted) per share, a year earlier. The first quarter a year ago included a merger-related charge of $642 million after tax. Excluding that charge, operating income a year ago was $1.97 billion, or $1.14 ($1.11 diluted) per share. First quarter 1999 earnings grew significantly from fourth quarter 1998 operating earnings of $1.60 billion, or $.92 ($.91 diluted) per share. The return on common equity was 16.8 percent and the return on assets was 1.27 percent. Cash earnings - which exclude the amortization of intangibles -- were $2.14 billion, or $1.23 ($1.20 diluted) per share in the latest quarter. Return on average tangible common shareholders' equity was 27.4 percent. more Page 2 "We are pleased with our first quarter results, which include continued strong performance in Consumer Banking and a significant improvement in Global Corporate and Investment Banking," said Hugh L. McColl, Jr., BankAmerica chairman and chief executive officer. "Our merger transition is on track, and we expect the benefits of lower costs and enhanced revenue opportunities to positively impact earnings in the coming quarters." First Quarter Earnings (compared to a year ago) - ----------------------------------------------- Lower expenses -- primarly due to merger-related savings -- stronger trading results and continued solid loan growth were offset by lower other income, investment banking revenue and securities gains. Net Interest Income - ------------------- Fully taxable-equivalent net interest income of $4.65 billion was virtually unchanged from a year earlier, as loan and deposit growth and deposit pricing initiatives offset the impact of asset securitizations, loan sales and spread compression. Average managed loans grew 11 percent to $385 billion, reflecting increases in both consumer and business loans. The net yield on earning assets declined by 23 basis points to 3.58 percent due to a higher level of investment securities and lower loan and deposit spreads. Noninterest Income - ------------------ Noninterest income declined 8 percent to $3.22 billion, reflecting lower other income and investment banking revenue. Trading results were up from last year's strong performance. Credit card income and deposit fees also rose. Investment banking results, despite continuing improvements over recent quarters, remained below last year's strong performance. Securities gains of $130 million were significantly below the $213 million recorded in the first quarter of 1998. Efficiency - ---------- Noninterest expense decreased by more than 5 percent to $4.45 billion, reflect- ing cost reductions resulting from recent mergers somewhat offset by continued spending on transition projects associated with the merger of NationsBank and BankAmerica. Personnel expense dropped by more than 4 percent, and other operating expenses were also reduced. The efficiency ratio was 57 percent, an improvement from 58 percent a year earlier. more Page 3 Credit Quality - -------------- The provision for credit losses in the first quarter was $510 million, the same as a year earlier. Net charge-offs remained virtually flat from a year ago at $519 million, equal to .58 percent of loans and leases, a 3-basis-point improve- ment from a year ago. Nonperforming assets were $3.12 billion, or .86 percent of loans, leases and foreclosed properties on March 31, 1999, compared to $2.69 billion, or .79 percent a year earlier. The allowance for credit losses totaled $7.12 billion on March 31, 1999, equal to 251 percent of nonperforming loans and 1.96 percent of loans and leases. The allowance was $6.76 billion, or 1.98 percent of loans and leases, a year earlier. Capital Strength - ---------------- Total shareholders' equity rose 4 percent to $46.8 billion at March 31, 1999. This represented 7.62 percent of period-end assets, compared to 7.77 percent on March 31, 1998. Book value per common share rose 4 percent from a year earlier to $26.86 at March 31, 1999. Business Segment Results - ------------------------ Consumer Banking, which serves individuals and small businesses, earned $873 million, while Commercial Banking, which serves companies with from $10 million to $500 million in revenue, earned $197 million. Together, they represented 56 percent of the company's net income. Global Corporate and Investment Banking, which serves large corporate customers, earned $492 million, representing 26 percent of the company's earnings. Principal Investing and Wealth Management, which encompasses the private bank, trust, investment management, mutual funds, retail brokerage and principal investing, earned $209 million, representing 11 percent. more Page 4 BankAmerica Corporation, with $614 billion in total assets, is the largest bank in the United States. It has full-service operations in 22 states and the District of Columbia and provides financial products and services to 30 million households and 2 million businesses, as well as providing international corporate financial services for business transactions in 190 countries. BankAmerica Corporation stock (ticker: BAC) is listed on the New York, Pacific and London stock exchanges and certain shares are listed on the Tokyo Stock Exchange. www.nationsbank.com www.bankamerica.com
BANKAMERICA CORPORATION Three Months Ended March 31 ------------------------------ Financial Summary 1999 1998 - ----------------- ---------- ------------ (In millions, except per-share data) Operating net income $ 1,914 $ 1,973 Operating earnings per common share 1.10 1.14 Diluted operating earnings per common share 1.08 1.11 Cash basis earnings(1) 2,136 2,201 Cash basis earnings per common share 1.23 1.27 Cash basis diluted earnings per common share 1.20 1.24 Dividends paid per common share .45 .38 Price per share of common stock at period end 70.63 72.94 Average common shares 1,737.562 1,724.490 Average diluted common shares 1,779.708 1,773.015 Summary Income Statement (Operating Basis) - ------------------------------------------ (Taxable-equivalent in millions) Net interest income $ 4,645 $ 4,659 Provision for credit losses (510) (510) Gains on sales of securities 130 213 Noninterest income 3,223 3,493 Other noninterest expense (4,453) (4,704) ----------- ------------ Income before income taxes 3,035 3,151 Income taxes - including FTE adjustment 1,121 1,178 ----------- ------------ Operating net income $ 1,914 $ 1,973 =========== ============ Summary Balance Sheet - --------------------- (Average balances in billions) Loans and leases $ 360,746 $ 341,970 Managed loans and leases(2) 384,933 347,451 Securities 75,830 65,787 Earning assets 523,682 493,821 Total assets 609,624 578,841 Deposits 345,931 339,867 Shareholders' equity 46,279 43,628 Common shareholders' equity 46,208 42,953 Performance Indices (Operating Basis) - ------------------------------------- Return on average common shareholders' equity 16.78 % 18.52 % Return on average tangible common shareholders' equity 27.44 32.57 Return on average assets 1.27 1.38 Return on average tangible assets 1.46 1.59 Net interest yield 3.58 3.81 Efficiency ratio 56.59 57.72 Cash basis efficiency ratio 53.76 54.92 Net charge-offs (in millions) $ 519 $ 516 % of average loans and leases .58 % .61 % Managed credit card net charge-offs as a % of average managed credit card receivables 6.01 6.78 Reported Results (Including Merger-Related Charges) - ------------------------------------------ (In millions, except per-share data) Net income $ 1,914 $ 1,331 Earnings per common share 1.10 .77 Diluted earnings per common share 1.08 .75 Return on average common shareholders' equity 16.78 12.46
(1) Cash basis earnings equal operating net income excluding amortization of intangibles. (2) Prior periods are restated for comparison (e.g. acquisitions, divestitures and securitizations). (3) Ratios and amounts for 1998 have not been restated to reflect the impact of the BankAmerica merger.
BANKAMERICA CORPORATION (Continued) March 31 ------------------------------ 1999 1998 ---------- ------------ Balance Sheet Highlights - ------------------------ (In billions, except per-share data) Loans and leases $ 363,102 $ 341,219 Securities 78,469 67,325 Earning assets 529,980 493,428 Total assets 614,245 580,211 Deposits 343,317 344,447 Shareholders' equity 46,831 45,104 Common shareholders' equity 46,761 44,430 Per share 26.86 25.72 Total equity to assets ratio (period-end) 7.62 % 7.77 % Risk-based capital(3) Tier 1 capital ratio 7.40 6.80 Total capital ratio 11.17 11.19 Leverage ratio(3) 6.47 5.64 Common shares issued and outstanding (in millions) 1,740.872 1,727.746 Allowance for credit losses $ 7,123 $ 6,763 Allowance for credit losses as a % of loans and leases 1.96 % 1.98 % Allowance for credit losses as a % of non- performing loans 250.99 279.44 Nonperforming loans $ 2,838 $ 2,420 Nonperforming assets 3,120 2,690 Nonperforming assets as a % of: Total assets .51 % .46 % Loans, leases and foreclosed properties .86 .79 Other Data - ---------- Full-time equivalent headcount 166,422 179,607 Banking centers 4,676 5,010 ATMs 14,229 14,630 BUSINESS SEGMENT RESULTS Three months ended March 31, 1999 (In millions) Return on Operating Average Loans Risk-Adjusted Total Revenue Net Income and Leases Equity ------------- ---------- ------------- ------------- Consumer Banking $ 4,317 $ 873 $ 176,513 19% Commercial Banking 717 197 55,585 17 Global Corporate and Investment Banking 2,040 492 112,121 16 Principal Investing and Wealth Management Group 685 209 18,214 29
BANKAMERICA CORPORATION Consolidated Financial Highlights (Excludes Merger-Related Charges) - ----------------------------------------------------------------------------------------------------------------------------- (Dollars in Millions Except Per-Share Information, Shares in Millions) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 1999 1998 1998 1998 1998 ------------------------------------------------------- Net income $ 1,914 $ 1,603 $ 893 $ 2,021 $ 1,973 Cash basis earnings 2,136 1,825 1,117 2,248 2,201 Earnings per common share 1.10 .92 .51 1.16 1.14 Diluted earnings per common share 1.08 .91 .50 1.13 1.11 Cash basis earnings per common share 1.23 1.05 .64 1.29 1.27 Cash basis diluted earnings per common share 1.20 1.04 .63 1.25 1.24 Dividends per common share .45 .45 .38 .38 .38 Average common shares issued 1,737.562 1,731.314 1,740.092 1,732.168 1,724.490 Average diluted common shares 1,779.708 1,763.055 1,784.418 1,784.712 1,773.015 Period-end common shares issued 1,740.872 1,724.484 1,742.038 1,735.233 1,727.746 Period-end managed loans and leases* $ 387,936 $ 382,693 $ 370,696 $ 357,505 $ 347,517 Average managed loans and leases* 384,933 376,798 361,382 351,617 347,451 *Prior periods restated for comparison (e.g. acquisitions, divestitures and securitizations). Performance ratios: Return on average assets 1.27% 1.05% .61% 1.41% 1.38% Return on average tangible assets 1.46 1.22 .79 1.61 1.59 Return on average common shareholders' equity 16.78 14.12 7.73 18.24 18.52 Return on average tangible common shareholders' equity 27.44 23.97 14.51 31.23 32.57 Efficiency ratio 56.59 64.16 66.55 57.38 57.72 Cash basis efficiency ratio 53.76 61.12 63.28 54.65 54.92 Net interest yield 3.58 3.58 3.60 3.80 3.81 Book value per common share $ 26.86 $ 26.60 $ 27.12 $ 26.88 $ 25.72 Market price per share of common stock: High for the period 74 1/2 66 5/8 88 7/16 85 75 1/8 Low for the period 59 1/2 44 47 7/8 72 1/16 56 1/4 Closing price 70 5/8 60 1/8 53 1/2 76 11/16 72 15/16 Other data: Number of banking centers 4,676 4,708 4,870 4,866 5,010 Number of ATMs 14,229 14,327 14,333 14,691 14,630 Full-time equivalent employees 166,422 170,975 174,844 178,729 179,607 BUSINESS SEGMENT RESULTS - FIRST QUARTER 1999 Return on Average Loans Risk-Adjusted Total Revenue Net Income and Leases Equity ------------- ---------- ------------- ------------- Consumer Banking $4,317 55% $873 46% $176,513 49% 19% Commercial Banking 717 9 197 10 55,585 15 17 Global Corporate and Investment Banking 2,040 26 492 26 112,121 31 16 Principal Investing and Wealth Management Group 685 9 209 11 18,214 5 29
BANKAMERICA CORPORATION CONSOLIDATED STATEMENT OF OPERATING INCOME (Excludes Merger-Related Charges) - ----------------------------------------------------------------------------------------------------------------------------------- (Dollars in Millions, Except Per-Share Information) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 1999 1998 1998 1998 1998 ----------------------------------------------------------- Interest income Interest and fees on loans and leases $ 6,770 $ 7,030 $ 7,084 $ 7,105 $ 7,112 Interest and dividends on securities 1,175 1,191 1,105 1,077 1,129 Federal funds sold and securities purchased under agreements to resell 381 486 492 433 417 Trading account securities 545 612 584 692 738 Other interest income 330 319 343 330 309 ----------------------------------------------------------- Total interest income 9,201 9,638 9,608 9,637 9,705 ----------------------------------------------------------- Interest expense Deposits 2,313 2,598 2,830 2,690 2,693 Borrowed funds 1,354 1,422 1,278 1,229 1,310 Trading account liabilities 129 165 194 262 274 Long-term debt 805 844 862 830 809 ----------------------------------------------------------- Total interest expense 4,601 5,029 5,164 5,011 5,086 ----------------------------------------------------------- Net interest income 4,600 4,609 4,444 4,626 4,619 Provision for credit losses 510 510 1,405 495 510 ----------------------------------------------------------- Net credit income 4,090 4,099 3,039 4,131 4,109 Gains on sales of securities 130 404 280 120 213 Noninterest income Service charges on deposit accounts 855 881 855 844 816 Mortgage servicing and other mortgage-related income 132 103 (93) 207 172 Investment banking income 388 356 376 664 613 Trading account profits and fees 500 96 (529) 232 372 Brokerage income 184 162 198 188 180 Other nondeposit-related service fees 136 150 163 164 175 Asset management and fiduciary service fees 243 229 238 261 245 Credit card income 360 398 379 352 319 Other income 425 280 818 724 601 ----------------------------------------------------------- Total noninterest income 3,223 2,655 2,405 3,636 3,493 ----------------------------------------------------------- Other noninterest expense Personnel 2,333 2,301 2,246 2,425 2,440 Occupancy, net 396 413 427 421 382 Equipment 358 384 346 334 340 Marketing 147 135 143 145 158 Professional fees 126 233 206 209 195 Amortization of intangibles 222 223 224 227 228 Data processing 190 205 195 186 179 Telecommunications 136 152 142 138 131 Other general operating 420 493 510 528 513 General administrative and miscellaneous 125 148 144 154 138 ----------------------------------------------------------- Total other noninterest expense 4,453 4,687 4,583 4,767 4,704 ----------------------------------------------------------- Income before income taxes 2,990 2,471 1,141 3,120 3,111 Income tax expense 1,076 868 248 1,099 1,138 ----------------------------------------------------------- Net income $ 1,914 $ 1,603 $ 893 $ 2,021 $ 1,973 ----------------------------------------------------------- Net income available to common shareholders $ 1,912 $ 1,602 $ 891 $ 2,010 $ 1,962 ----------------------------------------------------------- Per-share information Earnings per common share $ 1.10 $ .92 $ .51 $ 1.16 $ 1.14 ----------------------------------------------------------- Diluted earnings per common share $ 1.08 $ .91 $ .50 $ 1.13 $ 1.11 ----------------------------------------------------------- Dividends per common share $ .45 $ .45 $ .38 $ .38 $ .38 ----------------------------------------------------------- Average common shares issued and outstanding (in thousands) 1,737,562 1,731,314 1,740,092 1,732,168 1,724,490 ----------------------------------------------------------- Average diluted common shares issued and outstanding (in thousands) 1,779,708 1,763,055 1,784,418 1,784,712 1,773,015 ----------------------------------------------------------- Certain prior period amounts have been reclassified to conform to current period classifications.
BANKAMERICA CORPORATION CONSOLIDATED BALANCE SHEET - ------------------------------------------------------------------------------------------------------ (Dollars in Millions) March 31 December 31 March 31 1999 1998 1998 ------------ ------------ ------------ ASSETS Cash and cash equivalents $ 25,925 $ 28,277 $ 28,641 Time deposits placed and other short-term investments 5,615 6,750 7,578 Securities Securities held for investment 1,522 1,997 4,673 Available for sale 76,947 78,590 62,652 ------------ ------------ ------------ Total securities 78,469 80,587 67,325 ------------ ------------ ------------ Federal funds sold and securities purchased under agreements to resell 26,751 27,146 24,280 Trading account assets 42,382 39,602 41,608 Derivative-dealer assets 13,585 16,400 13,263 Loans and leases 363,102 357,328 341,219 Allowance for credit losses (7,123) (7,122) (6,763) ------------ ------------ ------------ Loans and leases, net of allowance for credit losses 355,979 350,206 334,456 ------------ ------------ ------------ Premises and equipment, net 7,129 7,289 7,918 Customers' acceptance liability 2,194 2,671 4,463 Interest receivable 3,620 3,734 3,591 Mortgage servicing rights 3,037 2,376 2,174 Goodwill 12,651 12,695 13,402 Core deposit and other intangibles 1,942 2,013 2,218 Other assets 34,966 37,933 29,294 ------------ ------------ ------------ Total assets $ 614,245 $ 617,679 $ 580,211 ============ ============ ============ LIABILITIES Deposits in domestic offices Interest-bearing $ 201,343 $ 203,644 $ 201,920 Noninterest-bearing 87,769 92,623 86,973 Deposits in foreign offices Interest-bearing 52,457 59,280 53,820 Noninterest-bearing 1,748 1,713 1,734 ------------ ------------ ------------ Total deposits 343,317 357,260 344,447 ------------ ------------ ------------ Federal funds purchased and securities sold under agreements to repurchase 74,767 67,543 63,245 Trading account liabilities 16,454 14,170 18,653 Derivative-dealer liabilities 14,372 16,835 12,270 Commercial paper 8,379 6,749 5,501 Other short-term borrowings 31,366 24,742 18,957 Acceptances outstanding 2,194 2,671 4,463 Accrued expenses and other liabilities 20,712 30,929 19,020 Trust preferred securities 4,954 4,954 4,918 Long-term debt 50,899 45,888 43,633 ------------ ------------ ------------ Total liabilities 567,414 571,741 535,107 ------------ ------------ ------------ SHAREHOLDERS' EQUITY Preferred stock 81 83 705 Common stock: authorized - 5,000,000,000 shares; issued and outstanding 1,740,871,815; 1,724,484,305 and 1,727,746,398 shares 15,828 14,837 15,114 Retained earnings 32,128 30,998 29,160 Accumulated other comprehensive income (580) 152 281 Other (626) (132) (156) ------------ ------------ ------------ Total shareholders' equity 46,831 45,938 45,104 ------------ ------------ ------------ Total liabilities and shareholders' equity $ 614,245 $ 617,679 $ 580,211 ============ ============ ============
BANKAMERICA CORPORATION QUARTERLY TAXABLE-EQUIVALENT DATA - ------------------------------------------------------------------------------------------------------------- (Dollars in Millions) First Quarter 1999 Fourth Quarter 1998 ---------------------------- ---------------------------- Average Average Balance Income Balance Income Sheet or Yields/ Sheet or Yields/ Amounts Expense Rates Amounts Expense Rates ------- ------- ------- -------- ------- ------- Earning assets Loans and leases (1) Commercial - domestic $138,272 $ 2,444 7.16% $136,629 $ 2,542 7.39% Commercial - foreign 31,568 494 6.35 32,893 569 6.86 Commercial real estate - domestic 26,827 559 8.45 28,427 601 8.38 Commercial real estate - foreign 286 6 8.79 319 8 9.39 ------------------------------------------------------------ Total commercial 196,953 3,503 7.21 198,268 3,720 7.45 ------------------------------------------------------------ Residential mortgage 75,789 1,356 7.18 73,033 1,336 7.30 Home equity lines 15,537 298 7.79 15,781 326 8.17 Direct/Indirect consumer 41,652 847 8.24 40,557 876 8.57 Consumer finance 15,880 373 9.53 14,368 338 9.33 Bankcard 11,287 327 11.76 12,078 366 12.01 Foreign consumer 3,648 89 9.90 3,551 94 10.47 ------------------------------------------------------------ Total consumer 163,793 3,290 8.11 159,368 3,336 8.32 ------------------------------------------------------------ Total loans and leases 360,746 6,793 7.62 357,636 7,056 7.84 ------------------------------------------------------------ Securities Held for investment 1,905 33 6.84 2,948 44 6.09 Available for sale (2) 73,925 1,161 6.31 69,354 1,162 6.68 ------------------------------------------------------------ Total securities 75,830 1,194 6.33 72,302 1,206 6.66 ------------------------------------------------------------ Federal funds sold and securities purchased under agreements to resell 26,561 381 5.80 29,564 486 6.53 Time deposits placed and other short-term investments 6,408 88 5.58 6,702 111 6.56 Trading account securities 41,129 547 5.36 39,391 613 6.19 Other earning assets 13,008 243 7.53 11,471 207 7.19 ------------------------------------------------------------ Total earning assets (3) 523,682 9,246 7.13 517,066 9,679 7.44 ------------------------------------------------------------ Cash and cash equivalents 25,826 25,834 Other assets, less allowance for credit losses 60,116 63,641 ------------------------------------------------------------ Total assets $609,624 $606,541 ------------------------------------------------------------ Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 21,637 71 1.33 $ 21,702 91 1.67 NOW and money market deposit accounts 99,864 575 2.33 97,589 622 2.53 Consumer CDs and IRAs 74,362 857 4.68 74,923 956 5.06 Negotiated CDs, public funds and other time deposits 6,914 89 5.20 7,388 96 5.16 ------------------------------------------------------------ Total domestic interest-bearing deposits 202,777 1,592 3.18 201,602 1,765 3.47 ------------------------------------------------------------ Foreign interest-bearing deposits (4) Banks located in foreign countries 20,379 268 5.34 24,938 325 5.17 Governments and official institutions 9,172 113 5.02 10,278 143 5.54 Time, savings, and other 26,980 339 5.10 26,868 365 5.39 ------------------------------------------------------------ Total foreign interest-bearing deposits 56,531 720 5.17 62,084 833 5.32 ------------------------------------------------------------ Total interest-bearing deposits 259,308 2,312 3.62 263,686 2,598 3.91 ------------------------------------------------------------ Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 112,384 1,355 4.88 104,416 1,422 5.40 Trading account liabilities 12,679 129 4.13 14,194 165 4.62 Long-term debt (5) 52,642 805 6.12 51,779 844 6.52 ------------------------------------------------------------ Total interest-bearing liabilities(6) 437,013 4,601 4.26 434,075 5,029 4.60 ------------------------------------------------------------ Noninterest-bearing sources Noninterest-bearing deposits 86,623 88,080 Other liabilities 39,709 39,335 Shareholders' equity 46,279 45,051 ------------------------------------------------------------ Total liabilities and shareholders' equity $609,624 606,541 ------------------------------------------------------------ Net interest spread 2.87 2.84 Impact of noninterest-bearing sources 0.71 .74 ------------------------------------------------------------ Net interest income/yield on earning assets $ 4,645 3.58% $ 4,650 3.58% ------------------------------------------------------------ (1) Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is recognized on a cash basis. (2) The average balance sheet amounts and yields on securities available for sale are based on the average of historical amortized cost balances. (3) Interest income includes taxable-equivalent adjustments of $45 in the first quarter of 1999 and $41, $40, $42 and $40 in the fourth, third, second and first quarters of 1998, respectively. Interest income also includes the impact of risk management interest rate contracts, which increased interest income on the underlying linked assets $63 in the first quarter of 1999 and $70, $46, $29, and $29 in the fourth, third, second and first quarters of 1998, respectively. (4) Primarily consists of time deposits in denominations of $100,000 or more. (5) Long-term debt includes trust preferred securities. (6) Interest expense includes the impact of risk management interest rate contracts, which decreased interest expense on the underlying linked liabilities $60 in the first quarter of 1999 and $27, $9, $4, and $5 in the fourth, third, second and first quarters of 1998, respectively. - ------------------------------------------------------------------------------------------- Third Quarter 1998 Second Quarter 1998 First Quarter 1998 - --------------------------- --------------------------- --------------------------- Average Average Average Balance Income Balance Income Balance Income Sheet or Yields/ Sheet or Yields/ Sheet or Yields/ Amounts Expense Rates Amounts Expense Rates Amounts Expense Rates - ------- ------- ------- -------- ------- ------- ------- ------- ------- $132,537 $ 2,538 7.59% $127,788 $ 2,496 7.84% $123,586 $ 2,413 7.91% 31,245 578 7.35 30,046 556 7.41 29,840 543 7.37 28,027 610 8.64 28,228 644 9.15 29,000 648 9.06 338 8 10.51 334 9 9.82 327 8 10.48 - ------------------------------------------------------------------------------------------- 192,147 3,734 7.71 186,396 3,705 7.97 182,753 3,612 8.01 - ------------------------------------------------------------------------------------------- 70,619 1,155 6.53 69,337 1,171 6.76 70,350 1,218 6.95 16,024 485 12.03 16,271 473 11.64 16,448 457 11.28 39,582 854 8.56 40,404 895 8.90 40,280 880 8.85 14,197 385 10.76 14,249 387 10.88 14,662 419 11.60 12,751 399 12.43 12,780 409 12.83 14,259 464 13.19 3,465 93 10.57 3,350 87 10.53 3,218 83 10.46 - ------------------------------------------------------------------------------------------- 156,638 3,371 8.56 156,391 3,422 8.77 159,217 3,521 8.94 - ------------------------------------------------------------------------------------------- 348,785 7,105 8.09 342,787 7,127 8.34 341,970 7,133 8.44 - ------------------------------------------------------------------------------------------- 4,286 76 6.99 4,525 79 7.03 4,713 83 7.09 61,250 1,046 6.82 58,527 1,017 6.95 61,074 1,061 6.98 - ------------------------------------------------------------------------------------------- 65,536 1,122 6.83 63,052 1,096 6.96 65,787 1,144 6.99 - ------------------------------------------------------------------------------------------- 27,646 492 7.06 25,275 433 6.86 26,632 417 6.35 7,483 138 7.31 7,916 129 6.54 8,517 136 6.48 35,487 587 6.59 42,421 693 6.56 41,868 740 7.14 10,974 204 7.42 10,494 201 7.68 9,047 175 7.76 - ------------------------------------------------------------------------------------------- 495,911 9,648 7.73 491,945 9,679 7.89 493,821 9,745 7.98 - ------------------------------------------------------------------------------------------- 24,160 25,071 24,558 58,282 56,959 60,462 - ------------------------------------------------------------------------------------------- $578,353 $573,975 $578,841 - ------------------------------------------------------------------------------------------- $ 22,775 107 1.87 $ 23,208 112 1.93 $ 23,096 111 1.95 95,276 634 2.64 96,605 638 2.65 96,696 642 2.70 74,313 984 5.25 74,002 983 5.29 75,393 992 5.33 8,696 120 5.45 8,388 117 5.63 5,917 81 5.53 - ------------------------------------------------------------------------------------------- 201,060 1,845 3.64 202,203 1,850 3.66 201,102 1,826 3.68 - ------------------------------------------------------------------------------------------- 27,892 418 5.95 22,393 326 5.84 23,067 336 5.91 11,084 156 5.59 10,629 150 5.64 10,067 141 5.69 24,086 411 6.77 22,592 364 6.49 23,467 390 6.70 - ------------------------------------------------------------------------------------------- 63,062 985 6.20 55,614 840 6.07 56,601 867 6.20 - ------------------------------------------------------------------------------------------- 264,122 2,830 4.25 257,817 2,690 4.18 257,703 2,693 4.24 - ------------------------------------------------------------------------------------------- 84,283 1,278 6.02 82,385 1,229 5.98 91,358 1,310 5.82 15,454 194 4.97 19,817 262 5.30 20,516 274 5.43 51,365 862 6.71 49,254 830 6.74 47,416 809 6.83 - ------------------------------------------------------------------------------------------- 415,224 5,164 4.94 409,273 5,011 4.90 416,993 5,086 4.93 - ------------------------------------------------------------------------------------------- 83,661 84,552 82,164 33,712 35,293 36,056 45,756 44,857 43,628 - ------------------------------------------------------------------------------------------- $578,353 $573,975 $578,841 - ------------------------------------------------------------------------------------------- 2.79 2.99 3.05 .81 .81 .76 - ------------------------------------------------------------------------------------------- $ 4,484 3.60% $ 4,668 3.80% $ 4,659 3.81% - -------------------------------------------------------------------------------------------
BANKAMERICA CORPORATION CREDIT QUALITY - NONPERFORMING ASSETS - ------------------------------------------------------------------------------------------------------------------------ (Dollars in Millions) March 31, December 31, September 30, June 30, March 31, 1999 1998 1998 1998 1998 ------------------------------------------------------------------------ Nonperforming loans: Commercial - domestic $ 1,085 $ 812 $ 717 $ 646 $ 762 Commercial - foreign 434 314 288 347 272 Commercial real estate - domestic 272 299 303 306 355 Commercial real estate - foreign 3 4 3 3 3 Residential mortgage 634 722 690 669 733 Home equity lines 41 50 46 45 53 Direct/Indirect consumer 20 21 38 33 35 Consumer finance 332 246 209 187 200 Foreign consumer 17 14 - 8 7 ------------------------------------------------------------------------ Total nonperforming loans 2,838 2,482 2,294 2,244 2,420 Foreclosed properties 282 282 288 282 270 ------------------------------------------------------------------------ Total nonperforming assets $ 3,120 $ 2,764 $ 2,582 $ 2,526 $ 2,690 ------------------------------------------------------------------------ Loans past due 90 days or more and not classified as nonperforming $ 571 $ 611 $ 540 $ 539 $ 534 Nonperforming assets as a percentage of: Total assets .51% .45% .43% .44% .46% Loans, leases and foreclosed properties .86 .77 .73 .73 .79 Foreclosed properties expense $ 10 $ 3 $ 7 $ 25 $ 10 - ------------------------------------------------------------------------------------------------------------------------ Total Nonperforming Assets by Business Segment: Consumer Banking $ 1,381 $ 1,348 $ 1,298 $ 973 $ 1,029 Commercial Banking 572 438 436 379 500 Global Corporate Investment Banking 1,099 934 818 901 866 Principal Investing and Wealth Management Group 66 40 28 25 21 Other 2 4 2 248 274 ------------------------------------------------------------------------ Total nonperforming assets $ 3,120 $ 2,764 $ 2,582 $ 2,526 $ 2,690 ------------------------------------------------------------------------
BANKAMERICA CORPORATION CREDIT QUALITY - LOAN LOSSES - ----------------------------------------------------------------------------------------------------------------------- (Dollars in Millions) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 1999 1998 1998 1998 1998 ----------------------------------------------------------------------------- Gross charge-offs: Commercial - domestic $ 206 $ 137 $ 450 $ 74 $ 53 Commercial - foreign 30 66 107 53 36 Commercial real estate - domestic 2 3 5 10 3 Residential mortgage 7 9 8 6 10 Home equity lines 6 6 6 7 8 Bankcard 172 185 192 219 261 Direct/Indirect consumer 140 153 125 138 146 Consumer finance 98 116 147 139 159 Other consumer domestic - (1) 1 - - Foreign consumer 5 5 2 3 3 ----------------------------------------------------------------------------- Total $ 666 $ 679 $ 1,043 $ 649 $ 679 ----------------------------------------------------------------------------- Net charge-offs: Commercial - domestic $ 181 $ 113 $ 427 $ 50 $ 27 Commercial - foreign 29 65 106 51 20 Commercial real estate - domestic (2) - (1) 6 (5) Residential mortgage 5 8 8 4 9 Home equity lines 4 3 3 5 6 Bankcard 155 164 170 197 233 Direct/Indirect consumer 95 113 87 98 107 Consumer finance 48 76 98 92 117 Other consumer domestic - (1) 1 - - Foreign consumer 4 3 3 2 2 ----------------------------------------------------------------------------- Total $ 519 $ 544 $ 902 $ 505 $ 516 ----------------------------------------------------------------------------- Loss ratios: Commercial - domestic .53% .33% 1.27% .15% .09% Commercial - foreign .37 .78 1.35 .68 .28 Commercial real estate - domestic (.02) - (.02) .09 (.07) Residential mortgage .03 .04 .04 .03 .05 Home equity lines .10 .07 .09 .11 .15 Bankcard** 5.63 5.49 5.42 6.36 6.77 Direct/Indirect consumer .93 1.09 .89 .96 1.08 Consumer finance 1.22 2.11 2.74 2.59 3.23 Other consumer domestic - - - - - Foreign consumer .43 .42 .25 .28 .27 Total .58 .60 1.03 .59 .61 Loss Ratios by Business Segment: Consumer Banking .75% 1.01% .92% .98% 1.14% Commercial Banking .19 .40 .06 .11 .10 Global Corporate and Investment Banking .55 .35 1.81 .28 .08 Principal Investing and Wealth Management Group .24 .01 .02 .01 - Other (.69) 44.42 (1.41) (1.83) (3.61) Allowance for credit losses $(7,123) $(7,122) $(7,215) $(6,731) $(6,763) Allowance for credit losses as a percentage of loans and leases 1.96% 1.99% 2.05% 1.95% 1.98% - ----------------------------------------------------------------------------------------------------------------------- * Managed Bankcard receivable net charge-offs $ 294 $ 301 $ 312 $ 331 $ 340 ** Managed Bankcard portfolio loss ratios 6.01% 5.83% 5.99% 6.52% 6.78% Average Managed Bankcard receivables $19,814 $20,526 $20,657 $20,350 $20,357
BANKAMERICA CORPORATION CAPITAL - ---------------------------------------------------------------------------------------------------------------------------------- (Dollars in Millions) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 1999 1998 1998 1998 1998 -------------------------------------------------------------------------------- Beginning common equity $ 45,866 $ 47,245 $ 46,646 $ 44,430 $ 43,907 Net income 1,914 1,162 374 2,298 1,331 Dividends (784) (778) (606) (611) (609) Common stock issued 350 19 407 441 526 Common stock repurchased - (1,151) - - (600) Change in FAS 115 adjustment-net unrealized gains (losses) (703) (625) 381 104 (103) Foreign currency translation adjustment and other 118 (6) 43 (16) (22) -------------------------------------------------------------------------------- Ending common equity 46,761 45,866 47,245 46,646 44,430 -------------------------------------------------------------------------------- Preferred equity 70 72 62 63 674 -------------------------------------------------------------------------------- Total shareholders' equity $ 46,831 $ 45,938 $ 47,307 $ 46,709 $ 45,104 -------------------------------------------------------------------------------- FAS 115 adjustment - end of period (400) 303 928 547 443 Total equity as a percentage of total assets 7.62% 7.44% 7.96% 8.17% 7.77% Common equity as a percentage of total assets 7.61 7.43 7.94 8.16 7.66 Risk-based capital ratios (1): Tier 1 capital $ 38,522 $ 36,849 $ 37,456 $ 18,764 $ 17,188 Tier 1 capital ratio 7.40% 7.06% 7.29% 7.32% 6.80% Total capital $ 58,132 $ 57,055 $ 57,758 $ 30,268 $ 28,286 Total capital ratio 11.17% 10.94% 11.25% 11.77% 11.19% Leverage ratio (1) 6.47 6.22 6.64 6.21 5.64 Risk-weighted assets, net (1) $ 520,396 $ 521,637 $ 513,544 $ 257,193 $ 252,694 (1) Ratios and amounts for all periods prior to the third quarter of 1998 have not been restated to reflect the impact of the BankAmerica merger.
BANKAMERICA CORPORATION CONSOLIDATED STATEMENT OF INCOME (Operating Results including Merger-Related Charges) - -------------------------------------------------------------------------------------------------------------------------------- (Dollars in Millions, Except Per-Share Information) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 1999 1998 1998 1998 1998 ----------------------------------------------------------- Interest income Interest and fees on loans and leases $ 6,770 $ 7,030 $ 7,084 $ 7,105 $ 7,112 Interest and dividends on securities 1,175 1,191 1,105 1,077 1,129 Federal funds sold and securities purchased under agreements to resell 381 486 492 433 417 Trading account securities 545 612 584 692 738 Other interest income 330 319 343 330 309 ----------------------------------------------------------- Total interest income 9,201 9,638 9,608 9,637 9,705 ----------------------------------------------------------- Interest expense Deposits 2,313 2,598 2,830 2,690 2,693 Borrowed funds 1,354 1,422 1,278 1,229 1,310 Trading account liabilities 129 165 194 262 274 Long-term debt 805 844 862 830 809 ----------------------------------------------------------- Total interest expense 4,601 5,029 5,164 5,011 5,086 ----------------------------------------------------------- Net interest income 4,600 4,609 4,444 4,626 4,619 Provision for credit losses 510 510 1,405 495 510 ----------------------------------------------------------- Net credit income 4,090 4,099 3,039 4,131 4,109 Gains on sales of securities 130 404 280 120 213 Noninterest income Service charges on deposit accounts 855 881 855 844 816 Mortgage servicing and other mortgage-related income 132 103 (93) 207 172 Investment banking income 388 356 376 664 613 Trading account profits and fees 500 96 (529) 232 372 Brokerage income 184 162 198 188 180 Other nondeposit-related service fees 136 150 163 164 175 Asset management and fiduciary service fees 243 229 238 261 245 Credit card income 360 398 379 352 319 Other income 425 280 818 724 601 ----------------------------------------------------------- Total noninterest income 3,223 2,655 2,405 3,636 3,493 ----------------------------------------------------------- Merger-related charges - 600 725 (430) 900 Other noninterest expense Personnel 2,333 2,301 2,246 2,425 2,440 Occupancy, net 396 413 427 421 382 Equipment 358 384 346 334 340 Marketing 147 135 143 145 158 Professional fees 126 233 206 209 195 Amortization of intangibles 222 223 224 227 228 Data processing 190 205 195 186 179 Telecommunications 136 152 142 138 131 Other general operating 420 493 510 528 513 General administrative and miscellaneous 125 148 144 154 138 ----------------------------------------------------------- Total other noninterest expense 4,453 4,687 4,583 4,767 4,704 ----------------------------------------------------------- Income before income taxes 2,990 1,871 416 3,550 2,211 Income tax expense 1,076 709 42 1,252 880 ----------------------------------------------------------- Net income $ 1,914 $ 1,162 $ 374 $ 2,298 $ 1,331 ----------------------------------------------------------- Net income available to common shareholders $ 1,912 $ 1,161 $ 372 $ 2,287 $ 1,320 ----------------------------------------------------------- Per-share information Earnings per common share $ 1.10 $ .67 $ .21 $ 1.32 $ .77 ----------------------------------------------------------- Diluted earnings per common share $ 1.08 $ .66 $ .21 $ 1.28 $ .75 ----------------------------------------------------------- Dividends per common share $ .45 $ .45 $ .38 $ .38 $ .38 ----------------------------------------------------------- Average common shares issued and outstanding (in thousands) 1,737,562 1,731,314 1,740,092 1,732,168 1,724,490 ----------------------------------------------------------- Average diluted common shares issued and outstanding (in thousands) 1,779,708 1,763,055 1,784,418 1,784,712 1,773,015 ----------------------------------------------------------- Certain prior period amounts have been reclassified to conform to current period classifications.
BANKAMERICA CORPORATION COUNTRY RISK REPORTING - ----------------------------------------------------------------------------------------------------------------------------------- Binding Exposure by Region, Country of Risk and Category (Dollars in Millions) Total Increase Increase Net Revaluation Binding (Decrease) (Decrease) Gains on Securities/ Exposure from from Trade Other Derivatives Other March 31, December 31, December 31, Region/Country Finance(a) Financing(b) FX Products Investments 1999 1998 1997 - ----------------------------------------------------------------------------------------------------------------------------------- Asia China $ 26 $ 319 $ 44 $ 54 $ 443 $ (6) $ (322) Hong Kong 150 4,602 42 139 4,933 (255) (698) India 10 2,007 53 374 2,444 (74) (55) Indonesia 2 560 55 60 677 (46) (833) Japan 72 1,776 1,145 1,025 4,018 (1,043) (2,952) Korea (South) 609 859 54 330 1,852 (27) (1,952) Malaysia 25 671 12 61 769 41 (485) Pakistan 77 188 20 11 296 (56) (254) Philippines 68 335 4 37 444 (139) (319) Singapore 10 1,521 41 184 1,756 (250) (656) Taiwan 21 2,120 15 38 2,194 (96) (244) Thailand 12 606 119 117 854 (96) (1,103) Other 24 130 - 4 158 5 (39) ----------- ------------ ------------- ----------- ----------- ----------- ----------- Total 1,106 15,694 1,604 2,434 20,838 (2,042) (9,912) Central and Eastern Europe Russia Federation - 34 - 10 44 (16) (403) Other 37 456 9 107 609 (95) (89) ----------- ------------ ------------- ----------- ----------- ----------- ----------- Total 37 490 9 117 653 (111) (492) Latin America Argentina 17 898 4 323 1,242 (25) (401) Brazil 867 1,320 1 1,066 3,254 (164) (376) Chile 17 1,320 23 58 1,418 (233) (262) Colombia 14 514 11 40 579 (219) (206) Mexico 227 3,116 55 1,179 4,577 (361) (1,535) Venezuela 71 218 - 228 517 (40) (106) Other 256 43 3 92 394 (36) (49) ----------- ------------ ------------- ----------- ----------- ----------- ----------- Total 1,469 7,429 97 2,986 11,981 (1,078) (2,935) ----------- ------------ ------------- ----------- ----------- ----------- ----------- Total $ 2,612 $ 23,613 $ 1,710 $ 5,537 $ 33,472 $ (3,231) $(13,339) ----------- ------------ ------------- ----------- ----------- ----------- ----------- (a) Includes extensions of credit with maturities of one year or less that are directly related to imports or exports and will be liquidated through the proceeds of international trade. Such extensions of credit may include acceptances, pre-export financing where there is a firm export sales order, commercial letters of credit, as well as other loans and advances directly related to international trade. (b) This category includes time deposits placed and extensions of credit that do not meet the criteria for Trade Finance.