FOR IMMEDIATE RELEASE EXHIBIT 99.1 NATIONSBANK SECOND QUARTER EARNINGS UP SEVEN PERCENT CHARLOTTE NC, July 17, 1995 -- NationsBank Corporation today reported second quarter 1995 net income of $467 million, a seven-percent increase over the $437 million earned in the second quarter of 1994. Earnings per common share for the second quarter of 1995 rose eight percent to $1.71, compared to $1.58 per share in the second quarter 1994. Return on average common shareholders' equity was 16.7 percent for the current quarter. "This quarter demonstrates the significant earnings power of our company," said Hugh McColl, chairman and chief executive officer. "Our market position in growth regions and our focus on meeting customer needs have generated increased loan volumes and expanded fee income. We are proud to have achieved this revenue growth with only a modest increase in expenses. Our ongoing cost control efforts have resulted in a noteworthy improvement in our operating efficiency. Results this quarter also benefited from recent common share repurchases, which we view as an attractive use of shareholder capital." Average loans and leases of $108 billion in the second quarter of 1995 were 17 percent greater than year-earlier levels. This growth was led by increases in both consumer, primarily residential mortgages, and commercial lending. Average loans and leases grew $4.1 billion during the second quarter, a 16-percent annualized rate, compared to the first quarter of 1995. This loan growth led to a $28-million increase in taxable-equivalent net interest income to $1.37 billion in the second quarter of 1995, compared to the year-ago quarter. The net interest yield for the second quarter of 1995 was 3.19 percent, down from a yield of 3.70 percent a year ago. The decline in the net interest yield was driven by a number of factors including the compression of spreads in the discretionary portfolios, the addition of low spread trading-related assets and the funding of incremental loan growth largely with wholesale funds. -1- Average deposits in this year's second quarter were $100.6 billion versus $91.4 billion in the year-ago quarter. Core customer-based deposits of $83.9 billion in the most recent quarter made up 83 percent of total average deposits. Noninterest income rose 16 percent to $730 million in the second quarter of 1995, compared to the year-ago quarter, driven by growth in deposit fees, investment banking fees, acquisition-related mortgage servicing fees and miscellaneous other income. Noninterest expense of $1.29 billion was flat in the second quarter of 1995, compared to the first quarter of 1995. Compared to the second quarter of 1994, noninterest expense increased five percent, however the efficiency ratio improved 87 basis points to 61.5 percent. Investment in personnel, particularly in the Capital Markets and Financial Products areas, increased equipment expense, and additional spending on marketing programs accounted for most of the expense increase. Total nonperforming assets fell by $322 million, or 23 percent, versus levels at June 30, 1994. Total nonperforming assets stood at $1.10 billion on June 30, 1995, or .99 percent of net loans, leases and factored receivables, and other real estate owned. This compared to nonperforming assets of $1.42 billion on June 30, 1994, or 1.48 percent of net levels. Net charge-offs were $83 million, or .31 percent of average net loans, leases and factored receivables, in the most recent quarter, versus $64 million, or .27 percent of average levels, in last year's second quarter. The allowance for credit losses totaled $2.16 billion at June 30, 1995 and equaled 1.95 percent of net loans, leases and factored receivables. The allowance represented 239 percent of nonperforming loans at June 30, 1995, versus 234 percent at June 30, 1994. Provision expense in the second quarter of 1995 was $70 million, the same level as one year ago. Other real estate owned expense was $1 million in the second quarter of 1995, compared to a net recovery of $3 million in the year-ago quarter. -2- Total shareholders' equity rose 10 percent from year-ago levels to $11.5 billion on June 30, 1995. This represented 6.25 percent of period-end assets. Book value per common share increased 12.5 percent to $42.49 on June 30, 1995, compared to June 30, 1994. Common shares outstanding at June 30, 1995 were 269.8 million compared to 276.5 million one year ago and down approximately six million shares from 275.4 million shares at March 31, 1995, due to common share repurchases. Total market capitalization was $14.5 billion at June 30, 1995. Quarterly common dividends paid per share increased nine percent in the second quarter to $.50 from $.46 per share in the second quarter of 1994. Tier 1 and total risk-based capital ratios of 7.03 percent and 10.90 percent, respectively, and a leverage ratio of 5.65 percent all compared favorably with regulatory guidelines at June 30, 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 June 30, 1995, NationsBank had total assets of $184 billion. -3- NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
THREE MONTHS SIX MONTHS ENDED JUNE 30 ENDED JUNE 30 1995 1994 1995 1994 FINANCIAL SUMMARY (In millions except per-share data) Net income $467 $437 $910 $854 Earnings per common share 1.71 1.58 3.31 3.10 Fully diluted earnings per common share 1.70 1.57 3.28 3.07 Average common shares issued 271.717 275.020 274.053 273.492 Average fully diluted common shares issued 275.431 279.127 277.788 277.497 Price per share of common stock at period end $53 5/8 $51 3/8 $53 5/8 $51 3/8 Common dividends paid 136 126 274 253 Common dividends paid per share .50 .46 1.00 .92 Preferred dividends paid 2 2 4 5 EARNINGS SUMMARY (Taxable-equivalent in millions) Net interest income $1,367 $1,339 $2,702 $2,649 Provision for credit losses (70) (70) (140) (170) Gains on sales of securities 4 5 5 19 Noninterest income 730 629 1,456 1,309 Other real estate owned expense (1) 3 (3) (2) Noninterest expense (1,288) (1,228) (2,576) (2,447) Income before income taxes 742 678 1,444 1,358 Income taxes - including FTE adjustment* (275) (241) (534) (504) Net income $467 $437 $910 $854 *FTE adjustment $31 $22 $59 $44 AVERAGE BALANCE SHEET SUMMARY (In billions) Loans and leases, net $107.924 $92.605 $105.886 $92.109 Securities held for investment 17.457 14.009 17.552 13.365 Securities available for sale 10.730 14.829 9.238 14.688 Total securities 28.187 28.838 26.790 28.053 Earning assets 171.942 145.091 165.083 144.416 Total assets 194.302 161.989 185.955 161.643 Noninterest-bearing deposits 21.077 20.241 20.533 20.070 Interest-bearing deposits 79.492 71.117 79.397 70.741 Total deposits 100.569 91.358 99.930 90.811 Shareholders' equity 11.213 10.272 11.202 10.177 Common shareholders' equity 11.180 10.247 11.169 10.109 OTHER FINANCIAL DATA Net interest yield 3.19% 3.70% 3.30% 3.69% Return on average assets .96 1.08 .99 1.07 Return on average common shareholders' equity 16.69 17.04 16.36 16.93 Gross charge-offs (in millions) $140 $117 $274 $263 Net charge-offs (in millions) 83 64 166 154 % of average loans, leases and factored accounts receivable, net .31% .27% .31% .33%
JUNE 30 1995 1994 BALANCE SHEET SUMMARY (In billions) Loans and leases, net $109.802 $94.622 Securities held for investment 14.452 14.026 Securities available for sale 12.563 14.376 Total securities 27.015 28.402 Factored accounts receivable 1.121 1.056 Mortgage servicing rights .667 .108 Goodwill, core deposit and other intangibles 1.483 1.299 Total assets 184.188 164.398 Noninterest-bearing deposits 22.098 20.447 Interest-bearing deposits 78.508 71.797 Total deposits 100.606 92.244 Shareholders' equity 11.504 10.473 Common shareholders' equity 11.465 10.443 Per common share (not in billions) 42.49 37.77 RISK-BASED CAPITAL Tier 1 capital $9.804 $9.237 Tier 1 capital ratio 7.03% 7.63% Total capital $15.205 $14.013 Total capital ratio 10.90% 11.57% Leverage ratio 5.65% 6.38% Common shares issued (in millions) 269.812 276.517 Allowance for credit losses $2.164 $2.196 Allowance as % of net loans, leases and factored accounts receivable 1.95% 2.30% Allowance for credit losses as % of nonperforming loans 239.09 234.48 Nonperforming loans $.905 $.936 Nonperforming assets 1.099 1.421 Nonperforming assets as % of: Total assets .60% .86% Net loans, leases, factored accounts receivable and other real estate owned .99 1.48 OTHER DATA Full-time equivalent headcount 59,633 59,127 Banking centers 1,855 1,915
BUSINESS UNIT RESULTS - Three months ended June 30, 1995 (in millions)
Return on Average Loans Total Revenue Net Income Equity and Leases, net General Bank $1,447 69% $290 62% 19% $67,045 62% Global Finance 505 24 143 31 15 34,216 32 Financial Services 142 7 30 6 13 7,152 7