EXHIBIT 99.1 FOR IMMEDIATE RELEASE NATIONSBANK REPORTS 6% EARNINGS GROWTH IN FIRST QUARTER 1995 CHARLOTTE NC, April 17, 1995 -- NationsBank Corporation today reported first quarter 1995 net income of $443 million, a six-percent increase over the $417 million earned in the first quarter of 1994. Earnings per common share for the first quarter of 1995 rose five percent to $1.60, compared to $1.52 per share in the first quarter 1994. Return on common shareholders' equity was 16.0 percent for the current quarter. "This quarter represents an excellent start to the year. Strong loan growth continued to drive earnings growth, along with increasing fee income," said Hugh McColl, chairman and chief executive officer. Average loans and leases of $103.8 billion in the first quarter of 1995 were more than 13 percent greater than year-earlier levels. This growth was led by increases in commercial lending, excluding real estate, and continued strength in consumer lending, primarily residential mortgage. Average loans and leases grew $4.1 billion during the quarter, a 17-percent annualized rate, compared to the fourth quarter of 1994. This loan growth more than offset the declining spreads on the discretionary asset portfolios, leading to an increase in net interest income to $1.34 billion, up $25 million in the first quarter of 1995 compared to the year-ago quarter. The net interest yield for the first quarter of 1995 was 3.41 percent, down from a yield of 3.69 percent a year ago. This decline was a result of the spread compression between the yield on investment securities and market-based funding costs. Average deposits in this year's first quarter were $99.3 billion versus $90.3 billion in the year-ago quarter. Core customer-based deposits of $83.8 billion in the most recent quarter made up 84 percent of total deposits. Noninterest income rose seven percent to $726 million in the first quarter of 1995, compared to the year-ago quarter, driven by growth in deposit fees, investment banking revenue, and acquisition-related mortgage servicing fees. -1- Noninterest expense totaled $1.29 billion in the first quarter of 1995, compared to $1.22 billion in the first quarter of 1994. Investment in personnel, particularly in the Capital Markets and Financial Products areas, and additional spending on marketing programs accounted for most of the increase. Noninterest income and noninterest expense reflected increases in brokerage-related amounts due to the total ownership of NationsSecurities. Total nonperforming assets fell by $561 million, or 34 percent, versus levels at March 31, 1994. This decline primarily reflected payments resulting from the improved financial condition of borrowers and the results of the Corporation's continuing loan workout activities. Total nonperforming assets stood at $1.08 billion on March 31, 1995, or 1.00 percent of net loans, leases and factored receivables, and other real estate owned. This compared to nonperforming assets of $1.64 billion on March 31, 1994, or 1.73 percent of net levels. Net charge-offs were $83 million, or .32 percent of average net loans, leases and factored receivables, in the most recent quarter, versus $90 million, or .39 percent of average levels, in last year's first quarter. The allowance for credit losses totaled $2.17 billion at March 31, 1995 and equaled 2.03 percent of net loans, leases and factored receivables. The allowance represented 254 percent of nonperforming loans at March 31, 1995, versus 205 percent at March 31, 1994. Provision expense in the first quarter of 1995 was $70 million, compared to the first quarter 1994 level of $100 million. Other real estate owned expense was $2 million in the first quarter of 1995, versus $5 million in the year-ago quarter. On March 31, 1995, total earning assets were $166 billion, of which net loans and leases were $106 billion and securities were $27 billion. -2- Total shareholders' equity rose 12 percent from year-ago levels to $11.3 billion on March 31, 1995. This represented 6.17 percent of period-end assets. Book value per common share increased 11 percent to $41.07 on March 31, 1995, compared to the year-ago quarter. Common shares outstanding at March 31, 1995 were 275.4 million compared to 274.5 million one year ago and down one million shares from 276.5 million shares at December 31, 1994, due to share repurchases. Total market capitalization was $14.0 billion at March 31, 1995. Quarterly common dividends paid per share increased nine percent in the first quarter to $.50 from $.46 per share in the first quarter of 1994. Tier 1 and total risk-based capital ratios of 7.25 percent and 11.06 percent, respectively, and a leverage ratio of 6.15 percent all compared favorably with regulatory guidelines at March 31, 1995. NationsBank Corporation is a bank holding company that provides financial products and services nationally and internationally to individuals, businesses, corporations, institutional investors and government agencies. Headquartered in Charlotte, N.C., NationsBank has a retail banking franchise in nine states and the District of Columbia. As of March 31, 1995, NationsBank had total assets of $184 billion. -3-