FOR IMMEDIATE RELEASE EXHIBIT 99.1 NATIONSBANK THIRD-QUARTER EARNINGS UP 23 PERCENT CHARLOTTE NC, October 16, 1995 -- NationsBank Corporation today reported record quarterly earnings of $530 million for the third quarter of 1995, a 23-percent increase over the $431 million earned in the third quarter of 1994. Earnings per common share for the third quarter of 1995 rose 26 percent to $1.95, compared to $1.55 per share in the third quarter 1994. Return on average common shareholders' equity was 18.3 percent for the current quarter. Net income for the first nine months of 1995 rose 12 percent to $1.44 billion, or $5.26 per common share. This compared to net income of $1.29 billion, or $4.66 per common share, in the first nine months of 1994. "The earnings momentum of our company is obvious in this quarter's outstanding results," said Hugh McColl, chairman and chief executive officer. "Strong revenue growth and excellent expense control are driving the profitability and efficiency improvements that this company is capable of producing." Average loans and leases of $111 billion in the third quarter of 1995 were 16 percent greater than year-earlier levels. This growth was led by a significant increase in consumer loans and solid non-real estate commercial lending. Average loans and leases grew $3.5 billion during the third quarter, a 13-percent annualized rate, compared to the second quarter of 1995. This loan growth led to a $90-million increase in taxable-equivalent net interest income to $1.42 billion in the third quarter of 1995, compared to the year-ago quarter. The net interest yield for the third quarter of 1995 was 3.35 percent, down from a yield of 3.54 percent a year ago. The decline in the net interest yield was driven by a number of factors including the funding of incremental loan growth largely with wholesale funds and a higher level of minimal-spread trading-related assets. Compared to the second quarter of this year, the net interest yield improved 16 basis points reflecting reduced levels of lower-yielding investment securities and trading assets. Average deposits in this year's third quarter were $98.7 billion versus $94.7 billion in the year-ago quarter. Core customer-based deposits of $83.4 billion in the most recent quarter made up 85 percent of total average deposits. Noninterest income rose 20 percent to $776 million in the third quarter of 1995, compared to the year-ago quarter, driven by growth in capital markets revenues, deposit fees and acquisition-related mortgage servicing fees. Noninterest expense in the third quarter of 1995 was $1.25 billion, an increase of one percent compared to the year-ago quarter, reflecting acquisitions and increased personnel and marketing spending, offset by a decrease in FDIC insurance expense. FDIC insurance expense in the third quarter of 1995 reflected quarterly pretax savings of $37 million due to a reduction in insurance rates charged by the FDIC and an additional refund of $11 million relating to insurance payments in the second quarter of 1995. Excluding the impact of these FDIC savings, noninterest expense has been virtually flat for each of the three 1995 quarters. The efficiency ratio in the third quarter was 56.7 percent, a 572-basis-point improvement over the third quarter of 1994. This improvement was a result of revenue growth of 11 percent with expense growth of only one percent from the third quarter of 1994. Total nonperforming assets fell by $238 million, or 19 percent, versus levels at September 30, 1994. Total nonperforming assets stood at $1.04 billion on September 30, 1995, or .90 percent of net loans, leases and factored receivables, and other real estate owned. This compared to nonperforming assets of $1.28 billion on September 30, 1994, or 1.29 percent of net levels. Net charge-offs were $99 million, or .35 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 third quarter. The allowance for credit losses totaled $2.17 billion at September 30, 1995 and equaled 1.89 percent of net loans, leases and factored receivables. The allowance represented 256 percent of nonperforming loans on both September 30, 1995 and September 30, 1994. Provision expense in the third quarter of 1995 was $100 million, $30 million more than the level one year ago. Other real estate owned expense was $7 million in the third quarter of 1995, compared to a net recovery of $6 million in the year-ago quarter. Total shareholders' equity rose 12 percent from year-ago levels to $11.9 billion on September 30, 1995. This represented 6.56 percent of period-end assets. Book value per common share increased 13.5 percent to $44.00 on September 30, 1995, compared to September 30, 1994. Common shares outstanding at September 30, 1995 were 270.5 million compared to 275.6 million one year ago, due to common share repurchases. Total market capitalization was $18.2 billion at September 30, 1995. Quarterly common dividends paid per share increased nine percent in the third quarter to $.50 from $.46 per share in the third quarter of 1994. Tier 1 and total risk-based capital ratios of 7.16 percent and 11.23 percent, respectively, and a leverage ratio of 5.96 percent all compared favorably with regulatory guidelines at September 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 September 30, 1995, NationsBank had total assets of $182 billion.