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. NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
THREE MONTHS NINE MONTHS ENDED SEPTEMBER 30 ENDED SEPTEMBER 30 ------------------ ------------------ 1995 1994 1995 1994 -------- -------- -------- -------- FINANCIAL SUMMARY ----------------- (In millions except per-share data) Net income $530 $431 $1,440 $1,285 Earnings per common share 1.95 1.55 5.26 4.66 Fully diluted earnings per common share 1.93 1.54 5.19 4.62 Average common shares issued 270.306 275.868 272.790 274.292 Average fully diluted common shares issued 274.994 279.899 277.505 278.284 Price per share of common stock at period end $67.25 $49.00 $67.25 $49.00 Common dividends paid 135 126 409 379 Common dividends paid per share .50 .46 1.50 1.38 Preferred dividends paid 2 3 6 8 EARNINGS SUMMARY ---------------- (Taxable-equivalent in millions) Net interest income $1,420 $1,330 $4,122 $3,979 Provision for credit losses (100) (70) (240) (240) Gains (losses) on sales of securities 3 (4) 8 15 Noninterest income 776 649 2,232 1,958 Other real estate owned (expense) income (7) 6 (10) 4 Noninterest expense (1,245) (1,234) (3,821) (3,681) -------- -------- -------- -------- Income before income taxes 847 677 2,291 2,035 Income taxes - including FTE adjustment* (317) (246) (851) (750) -------- -------- -------- -------- Net income $530 $431 $1,440 $1,285 ======== ======== ======== ======== *FTE adjustment $29 $24 $88 $68 AVERAGE BALANCE SHEET SUMMARY ----------------------------- (In billions) Loans and leases, net $111.455 $95.947 $107.763 $93.402 Securities held for investment 14.101 15.443 16.389 14.065 Securities available for sale 11.891 11.683 10.132 13.675 Total securities 25.992 27.126 26.521 27.740 Earning assets 168.452 149.455 166.219 146.114 Total assets 190.501 167.283 187.487 163.544 Noninterest-bearing deposits 21.519 19.796 20.866 19.978 Interest-bearing deposits 77.152 74.860 78.641 72.129 Total deposits 98.671 94.656 99.507 92.107 Shareholders' equity 11.487 10.665 11.299 10.341 Common shareholders' equity 11.450 10.635 11.263 10.287 OTHER FINANCIAL DATA -------------------- Net interest yield 3.35% 3.54% 3.31% 3.64% Return on average assets 1.10 1.02 1.03 1.05 Return on average common shareholders' equity 18.29 16.00 17.02 16.61 Gross charge-offs (in millions) $151 $115 $425 $378 Net charge-offs (in millions) 99 64 265 218 % of average loans, leases and factored accounts receivable, net .35% .27% .33% .31% Efficiency Ratio 56.67 62.39 60.14 62.00
SEPTEMBER 30 -------------------- 1995 1994 -------- -------- BALANCE SHEET SUMMARY --------------------- (In billions) Loans and leases, net $113.343 $97.330 Securities held for investment 13.674 17.638 Securities available for sale 9.782 9.921 Total securities 23.456 27.559 Factored accounts receivable 1.258 1.226 Mortgage servicing rights .718 .192 Goodwill, core deposit and other intangibles 1.451 1.443 Total assets 182.138 170.912 Noninterest-bearing deposits 21.472 20.077 Interest-bearing deposits 76.398 76.658 Total deposits 97.870 96.735 Shareholders' equity 11.941 10.709 Common shareholders' equity 11.903 10.680 Per common share (not in billions) 44.00 38.76 RISK-BASED CAPITAL Tier 1 capital $10.232 $9.333 Tier 1 capital ratio 7.16% 7.48% Total capital $16.048 $14.439 Total capital ratio 11.23% 11.57% Leverage ratio 5.96% 6.32% Common shares issued (in millions) 270.544 275.568 Allowance for credit losses $2.166 $2.202 Allowance as % of net loans, leases and factored accounts receivable 1.89% 2.23% Allowance for credit losses as % of nonperforming loans 255.57 255.52 Nonperforming loans $.848 $.862 Nonperforming assets 1.038 1.276 Nonperforming assets as % of: Total assets .57% .75% Net loans, leases, factored accounts receivable and other real estate owned .90 1.29 OTHER DATA ---------- Full-time equivalent headcount 58,370 59,600 Banking centers 1,821 1,926 ATMs 2,211 2,134
BUSINESS UNIT RESULTS - Three months ended September 30, 1995 (in millions) Return on Average Loans Total Revenue Net Income Equity and Leases,net ------------- ---------- --------- -------------- General Bank $1,485 68% $324 61% 21% $70,290 63% Global Finance 551 25 166 31 17 34,422 31 Financial Services 153 7 34 6 14 7,353 7
3