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-