Exhibit 99.1 ------------ FOR IMMEDIATE RELEASE NATIONSBANK EARNINGS INCREASED 30% IN SECOND QUARTER 1996 CHARLOTTE, NC, July 15, 1996 -- NationsBank second-quarter earnings of $605 million, or $2.00 per common share, demonstrated the company's momentum in producing consistent, outstanding financial performance. "Our associates continue to be successful in harnessing the power of the NationsBank franchise," said Hugh L. McColl Jr., chairman and chief executive officer. "The focus on serving customers and reaching higher performance goals is paying off with excellent revenue growth. At the same time, the company continues to employ discipline in balance sheet management and in building capital levels to strengthen the foundation for future earnings growth." Earnings Highlights (second quarter 1996 compared to second quarter 1995) - ------------------- * Revenues (net interest income plus noninterest income) grew 21 percent to $2.5 billion * Efficiency ratio improved nearly 600 basis points to 55.6 percent * Net interest yield rose 43 basis points to 3.62 percent * Return on average common shareholders' equity increased 131 basis points to 18.0 percent * Capital ratios improved, with the equity to assets ratio rising to 7.29 percent from 6.25 percent * Credit reserve levels remained strong as the allowance for credit losses equaled 1.85 percent of net loans, leases and factored accounts receivable The second quarter's earnings of $605 million represented a 30-percent increase from the $467 million earned in the second quarter of 1995. Earnings per common share for the second quarter of 1996 rose 17 percent to $2.00, from $1.71 per common share in the second quarter of 1995. The return on common shareholders' equity rose to 18.0 percent in the second quarter of 1996, compared to 16.7 percent in the year-ago quarter. Operating net income for the first six months of 1996 rose 31 percent to $1.20 billion, or $3.95 per common share. This compared to net income of $910 million, or $3.31 per common share, in the first six months of 1995. Second quarter 1996 results include the impact of several acquisitions and loan securitizations completed primarily in 1996. Net Interest Income - ------------------- In the second quarter of 1996, average loans and leases grew 15 percent over year-earlier levels to $124 billion. This increase was driven by a 25-percent increase in average consumer loans and a 7-percent increase in non-real estate commercial loans. This loan growth, combined with the impact of balance sheet management initiatives, led to an 18-percent increase in net interest income on a taxable-equivalent basis to $1.6 billion in the second quarter 1996. The net interest yield improved 43 basis points to 3.62 percent from 3.19 percent in the second quarter 1995. Noninterest Income - ------------------ Noninterest income rose 26 percent to $917 million in the second quarter of 1996, reflecting the diverse fee-generating activities of the company. Higher levels of service fees, including mortgage servicing and investment banking, drove the year-over-year increase. Efficiency - ---------- Revenue growth sharply outpaced expense growth over the past year, improving the efficiency ratio to a record low of 55.6 percent, a 590-basis-point movement from 61.5 percent in the year-ago quarter. Credit Quality - -------------- Total nonperforming assets were $992 million on June 30, 1996, or .80 percent of net loans, leases and factored receivables and other real estate owned. This compared to .99 percent of net levels on June 30, 1995. The allowance for credit losses totaled $2.29 billion at June 30, 1996, equaling 268 percent of nonperforming loans, up from 239 percent at June 30, 1995. In the second quarter of 1996, net charge-offs were $157 million, including an $18-million charge for the bulk sale of $110 million of loans, primarily commercial real estate. Net charge-offs in the second quarter of 1996 equaled .50 percent of average net loans, leases and factored receivables, compared to .31 percent of average levels in the second quarter of 1995. Capital Strength - ---------------- Total shareholders' equity climbed to $14.0 billion on June 30, 1996, up 22 percent from levels one year ago. This represented 7.29 percent of period-end assets, compared to 6.25 percent at June 30, 1995. Book value per common share rose nine percent to $46.18 at the end of the second quarter 1996. 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, 1996, NationsBank had total assets of $192 billion. NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
THREE MONTHS SIX MONTHS ENDED JUNE 30 ENDED JUNE 30 1996 1995 1996 1995 FINANCIAL OPERATING SUMMARY (In millions except per-share data) Net income $605 $467 $1,195 $910 Earnings per common share 2.00 1.71 3.95 3.31 Fully diluted earnings per common share 1.98 1.70 3.90 3.28 Average common shares issued 300.462 271.717 300.370 274.053 Average fully diluted common shares issued 305.371 275.431 305.401 277.788 Price per share of common stock at period end $82.625 $53.625 $82.625 $53.625 Common dividends paid 175 136 349 274 Common dividends paid per share .58 .50 1.16 1.00 Preferred dividends paid 4 2 8 4 OPERATING EARNINGS SUMMARY (Taxable-equivalent in millions) Net interest income $1,611 $1,367 $3,195 $2,702 Provision for credit losses (155) (70) (310) (140) Gains/(losses)on sales of securities (6) 4 8 5 Noninterest income 917 730 1,802 1,456 Other real estate owned expense (7) (1) (7) (3) Other noninterest expense (1,405) (1,288) (2,799) (2,576) Income before income taxes 955 742 1,889 1,444 Income taxes - including FTE adjustment* 350 275 694 534 Net income $605 $467 $1,195 $910 *FTE adjustment $24 $31 $51 $59 AVERAGE BALANCE SHEET SUMMARY (In billions) Loans and leases, net $123.726 $107.924 $123.504 $105.886 Securities held for investment 3.731 17.457 4.012 17.552 Securities available for sale 18.328 10.730 20.662 9.238 Total securities 22.059 28.187 24.674 26.790 Earning assets 178.588 171.942 182.077 165.083 Total assets 202.796 194.302 205.707 185.955 Noninterest-bearing deposits 24.601 21.077 23.905 20.533 Interest-bearing deposits 85.387 79.492 84.542 79.397 Total deposits 109.988 100.569 108.447 99.930 Shareholders' equity 13.552 11.213 13.348 11.202 Common shareholders' equity 13.438 11.180 13.238 11.169 OTHER OPERATING FINANCIAL DATA Net interest yield 3.62% 3.19% 3.52% 3.30% Return on average assets 1.20 .96 1.17 .99 Return on average common shareholders' equity 18.00 16.69 18.04 16.36 Gross charge-offs (in millions) $224 $140 $434 $274 Net charge-offs (in millions) 157 83 312 166 % of average loans, leases and factored accounts receivable, net .50% .31% .50% .31% Efficiency ratio 55.57 61.47 56.00 61.97 REPORTED RESULTS(Operating results including merger-related charge) Net income $605 $467 $1,118 $910 Earning per common share 2.00 1.71 3.70 3.31 Fully diluted earnings per common share 1.98 1.70 3.65 3.28 Return on average common shareholders' equity 18.00 16.69 16.87 16.36
JUNE 30 1996 1995 BALANCE SHEET SUMMARY (In billions) Loans and leases, net $122.643 $109.802 Securities held for investment 3.304 14.452 Securities available for sale 15.806 12.563 Total securities 19.110 27.015 Earning assets 173.654 166.379 Factored accounts receivable 1.062 1.121 Mortgage servicing rights .862 .667 Goodwill, core deposit and other intangibles 1.891 1.483 Total assets 192.308 184.188 Noninterest-bearing deposits 24.242 22.098 Interest-bearing deposits 83.882 78.508 Total deposits 108.124 100.606 Shareholders' equity 14.025 11.504 Common shareholders' equity 13.905 11.465 Per common share (not in billions) 46.18 42.49 RISK-BASED CAPITAL Tier 1 capital $11.971 $9.804 Tier 1 capital ratio 7.58% 7.03% Total capital $18.847 $15.205 Total capital ratio 11.93% 10.90% Leverage ratio 6.64% 5.65% Common shares issued (in millions) 301.083 269.812 Allowance for credit losses $2.292 $2.164 Allowance as % of net loans, leases and factored accounts receivable 1.85% 1.95% Allowance for credit losses as % of nonperforming loans 268.34 239.09 Nonperforming loans $.854 $.905 Nonperforming assets .992 1.099 Nonperforming assets as % of: Total assets .52% .60% Net loans, leases, factored accounts receivable and other real estate owned .80% .99% OTHER DATA Full-time equivalent headcount 62,137 59,633 Banking centers 1,948 1,855 ATMs 3,333 2,200
BUSINESS UNIT RESULTS - Three months ended June 30, 1996 (in millions)
Return on Average Loans Total Revenue Net Income Equity and Leases,net General Bank $1,795 71% $412 68% 23% $79,698 64% Global Finance 537 21 144 24 15 36,513 29 Financial Services 187 7 41 7 14 8,001 6