Exhibit 99.1 ------------ NATIONSBANK POSTED SOLID EARNINGS GROWTH OF 18% IN THIRD QUARTER 1996 CHARLOTTE, NC, October 15, 1996 -- NationsBank achieved record earnings of $625 million, or $2.12 per common share in the third quarter of 1996. The strong operating results in the third quarter reflected growth in revenues and continuation of balance sheet and capital management strategies. "Our ongoing efforts to increase earnings and effectively manage capital have generated a 19-percent return on equity this quarter," said Hugh L. McColl Jr., chairman and chief executive officer. "These results demonstrate the financial power which is the foundation for the next phase of our growth through the acquisition of Boatmen's Bancshares early in 1997." Earnings Highlights (third quarter 1996 compared to third quarter 1995) - ------------------- * Return on average common shareholders' equity was a record 19 percent * Revenues (net interest income plus noninterest income) grew 14 percent to $2.5 billion * Net interest yield rose 34 basis points to 3.69 percent * Efficiency ratio improved to 55.9 percent, reflecting flat quarterly expenses this year * Capital ratios improved, with the equity to assets ratio rising to 7.09 percent from 6.56 percent Third quarter earnings of $625 million represented an 18-percent increase from the $530 million earned in the third quarter of 1995. Earnings per common share for the third quarter of 1996 rose nine percent to $2.12, from $1.95 per common share in the third quarter of 1995. Operating net income for the first nine months of 1996 rose 26 percent to $1.82 billion, or $6.07 per common share. This compared to net income of $1.44 billion, or $5.26 per common share, in the first nine months of 1995. Third quarter 1996 results include the impact of several acquisitions and loan securitizations completed primarily in 1996 and at the end of 1995. Net Interest Income - ------------------- In the third quarter of 1996, average loans and leases grew nine percent over year-earlier levels to $121 billion. This increase was driven primarily by a 14-percent increase in average consumer loans. This loan growth, combined with a 34 basis-point increase in the net interest yield led to a 14-percent increase in net interest income on a taxable-equivalent basis to $1.6 billion in the third quarter 1996. The improvement in the net interest yield to 3.69 percent from 3.35 percent in the third quarter 1995 was primarily the result of balance sheet management initiatives. In conjunction with these initiatives, gains on sales of securities of $26 million were taken in the third quarter 1996, up from $3 million one year ago. Noninterest Income - ------------------ Noninterest income rose 14 percent to $886 million in the third quarter of 1996. The year-over-year increase was driven by higher income from mortgage servicing, investment banking and deposit accounts, which offset lower trading revenues. Efficiency - ---------- Revenue growth outpaced expense growth over the past twelve months, improving the efficiency ratio to 55.9 percent, compared to 56.7 percent in the third quarter 1995. Credit Quality - -------------- Total nonperforming assets were $1.1 billion on September 30, 1996, or .93 percent of net loans, leases and factored receivables and other real estate owned. This compared to $1.0 billion, or .90 percent of net levels on September 30, 1995. The allowance for credit losses totaled $2.3 billion at September 30, 1996, equaling 236 percent of nonperforming loans, compared to $2.2 billion, or 256 percent at September 30, 1995. In the third quarter of 1996, net charge- offs were $135 million. Net charge-offs in the third quarter of 1996 equaled .44 percent of average net loans, leases and factored receivables, compared to .35 percent of average levels in the third quarter of 1995. Capital Strength - ---------------- Total shareholders' equity climbed to $13.3 billion on September 30, 1996, up 11 percent from levels one year ago. This represented 7.09 percent of period-end assets, compared to 6.56 percent at September 30, 1995. Book value per common share rose four percent to $45.77 at the end of the third quarter 1996, from one year ago. NationsBank repurchased approximately 13 million of its common shares in the third 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 primary retail banking operations in nine states and the District of Columbia. As of September 30, 1996, NationsBank had total assets of $188 billion.