FOR IMMEDIATE RELEASE EXHIBIT 99.1 NATIONSBANK EARNINGS PER SHARE INCREASED 14% IN FIRST QUARTER 1997 CHARLOTTE, NC, April 14, 1997 -- NationsBank earnings rose 38 percent to $709 million in the first quarter of 1997, versus $513 million in the year-ago quarter. Earnings per common share increased 14 percent to $.97, even after the issuance of new shares for the acquisition of Boatmen's Bancshares Inc. "This quarter was marked by continued focus on productivity initiatives and substantial progress on the integration of the former Boatmen's franchise," said Hugh L. McColl Jr., chief executive officer. "Our company is generating substantial cash flows, which enhance our ability to invest in technology, our businesses and future opportunities." First quarter 1997 results include the impact of several acquisitions completed in 1996 and early 1997, primarily the acquisition of Boatmen's Bancshares Inc. on Jan. 7, 1997. Quarterly growth comparisons reflect the impact of acquisitions in addition to internal growth. Earnings Highlights (first quarter 1997 compared to first quarter 1996 operating - ------------------- results) * Cash basis earnings (net income excluding amortization of intangibles) were $1.10 per common share, up 8 percent from $1.02 per share * Tangible return on average tangible common shareholders' equity increased 453 basis points to 26.38 percent, from 21.85 percent * Net interest yield rose 40 basis points to 3.83 percent Reported Earnings - ----------------- NationsBank earned $709 million in the first quarter of 1997. This represented a 38-percent increase over the $513 million earned in the first quarter 1996. Earnings per common share for the first quarter 1997 rose 14 percent to $.97, from $.85 per common share in the year-ago quarter (all per share figures were adjusted for a two-for-one stock split, which occurred on Feb. 27, 1997). Return on average common shareholders' equity was 13.96 percent in the first quarter 1997, down from the year-ago quarter due primarily to the equity issued in the Boatmen's Bancshares Inc. acquisition. Excluding a merger-related, after-tax charge of $77 million in the first quarter of 1996, operating net income and earnings per share for that quarter were $590 million and $.98, respectively. Cash Basis Earnings - ------------------- Cash basis earnings exclude the amortization of intangibles, the majority of which is due to nearly $6.4 billion of intangibles resulting from the purchase of Boatmen's Bancshares Inc. in the first quarter of 1997. Cash basis earnings increased 31 percent to $810 million in the first quarter of 1997, or $1.10 per common share, from operating results (excluding merger-related charge) of $616 million, or $1.02 per common share, in the first quarter 1996. The tangible return on average tangible common shareholders' equity rose to 26.38 percent in the first quarter 1997, from the operating level of 21.85 percent in the year- ago quarter. In the year-ago quarter, reported cash basis results (including merger-related charge) were $539 million, or $.89 per common share, equaling a 19.14 percent tangible return on average tangible common shareholders' equity. Net Interest Income - ------------------- In the first quarter of 1997, net interest income increased 25 percent to $1.98 billion. The growth was achieved through a 19-percent increase in average loans and leases and a 40-basis point expansion in the net interest yield. The continuing improvement in the net interest yield to 3.83 percent from 3.43 percent is the result of initiatives which improved both the yield and the composition of earning assets. Noninterest Income - ------------------ Noninterest income rose 26 percent to $1.11 billion in the first quarter of 1997. This growth was attributable primarily to higher levels of income from deposit accounts and asset management and fiduciary service fees. Efficiency - ---------- In the first quarter of 1997, the cash basis efficiency ratio (excluding amortization of intangibles) held steady at 55.3 percent, compared to 55.4 percent in the first quarter 1996. Including the amortization of intangibles, the efficiency ratio was 58.6 percent in the first quarter 1997. Credit Quality - -------------- Total nonperforming assets were $1.22 billion on March 31, 1997, or .82 percent of net loans, leases and factored receivables and other real estate owned, compared to .79 percent of net levels on March 31, 1996. The allowance for credit losses totaled $2.79 billion at quarter-end, equaling 265 percent of nonperforming loans, compared to $2.25 billion, or 268 percent one year earlier. In the first quarter of 1997, provision for credit losses was $190 million, covering net charge-offs of $184 million. Net charge-offs for the quarter equaled .50 percent of average net loans, leases and factored receivables, unchanged when compared to the first quarter 1996. Capital Strength - ---------------- Total shareholders' equity climbed to $20.7 billion on March 31, 1997. This represented 8.65 percent of period-end assets, compared to 6.97 percent at March 31, 1996. Book value per common share rose to $28.22 at the end of the first quarter 1997. In the first quarter of 1997, NationsBank repurchased approximately 41 million common shares, plus an additional 16 million common shares related to issuances for associate stock option plans and the conversion of a series of Boatmen's Bancshares Inc. preferred stock. NationsBank Corporation, headquartered in Charlotte, N.C., is a bank holding company that provides financial products and services nationally and internationally to individuals, businesses, corporations, institutional investors and government agencies. NationsBank has primary retail and commercial banking operations in 16 states and the District of Columbia. As of March 31, 1997, NationsBank had total assets of $239 billion. NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
THREE MONTHS ENDED MARCH 31 1997 1996(1) FINANCIAL SUMMARY (In millions except per-share data) Net income $709 $513 Earnings per common share .97 .85 Fully diluted earnings per common share .94 .84 Cash basis earnings (2) 810 539 Cash basis earnings per share 1.10 .89 Cash basis fully diluted earnings per share 1.07 .88 Average common shares issued 730.413 600.558 Average fully diluted common shares issued 752.391 610.945 Price per share of common stock at period end $55.500 $40.063 Common dividends paid 245 174 Common dividends paid per share .33 .29 Preferred dividends paid 4 4 EARNINGS SUMMARY (Taxable-equivalent in millions) Net interest income $1,978 $1,584 Provision for credit losses (190) (155) Gains on sales of securities 43 14 Noninterest income 1,113 885 Other real estate owned income 2 - Noninterest expense (1,810) (1,512) Income before income taxes 1,136 816 Income taxes - including FTE adjustment* 427 303 Net income $709 $513 *FTE adjustment $28 $27 AVERAGE BALANCE SHEET SUMMARY (In billions) Loans and leases, net $146.679 $123.282 Managed loans and leases, net 152.256 126.003 Securities held for investment 1.920 4.292 Securities available for sale 20.740 22.997 Total securities 22.660 27.289 Earning assets 208.847 185.566 Total assets 242.206 208.617 Noninterest-bearing deposits 30.327 23.209 Interest-bearing deposits 104.649 83.697 Total deposits 134.976 106.906 Shareholders' equity 20.654 13.144 Common shareholders' equity 20.478 13.037 OTHER FINANCIAL DATA Net interest yield 3.83% 3.43% Return on average assets 1.19 .99 Return on average tangible assets 1.40 1.05 Return on average common shareholders' equity 13.96 15.71 Return on average tangible common shareholders' equity 26.38 19.14 Total equity to assets ratio (period-end) 8.65 6.97 Gross charge-offs (in millions) $251 $210 Net charge-offs (in millions) 184 155 % of average loans, leases and factored accounts receivable, net .50% .50% Managed credit card net charge-offs as a % of average managed credit card receivables 6.09% 3.79% Efficiency Ratio 58.56 56.44 Cash basis efficiency ratio 55.29 55.40 (1) 1996 results included a merger-related charge of $118 million($77 million, net of tax, or $.13 per common share). (2) Cash basis earnings equal net income excluding amortization of intangibles.
MARCH 31 1997 1996 BALANCE SHEET SUMMARY (In billions) Loans and leases, net $147.508 $123.169 Securities held for investment 1.836 4.104 Securities available for sale 20.010 17.771 Total securities 21.846 21.875 Earning assets 207.125 174.053 Factored accounts receivable 1.208 1.175 Mortgage servicing rights 1.194 .782 Goodwill, core deposit and other intangibles 8.566 1.814 Total assets 238.958 194.375 Noninterest-bearing deposits 33.106 24.101 Interest-bearing deposits 103.701 85.521 Total deposits 136.807 109.622 Shareholders' equity 20.659 13.557 Common shareholders' equity 20.534 13.444 Per common share (not in billions) 28.22 22.46 Risk-based capital Tier 1 capital $13.523 $11.479 Tier 1 capital ratio 7.06% 7.35% Total capital $22.166 $18.280 Total capital ratio 11.58% 11.71% Leverage ratio 6.20% 6.19% Common shares issued (in millions) 727.575 598.636 Allowance for credit losses $2.785 $2.253 Allowance for credit losses as a % of net loans, leases and factored accounts receivable 1.87% 1.81% Allowance for credit losses as a % of nonperforming loans 264.82 267.71 Nonperforming loans $1.051 $.841 Nonperforming assets 1.219 .985 Nonperforming assets as a % of: Total assets .51% .51% Net loans, leases, factored accounts receivable and other real estate owned .82 .79 OTHER DATA Full-time equivalent headcount 81,000 61,070 Banking centers 2,634 2,005 ATMs 5,739 2,946
BUSINESS UNIT RESULTS - Three months ended March 31, 1997 (in millions)
General Bank Global Finance Financial Services ------------ -------------- ------------------ Total revenue $2,245 74% $603 20% $198 6% Net income 440 62% 162 23% 51 7% Return on average tangible equity 26% 17% 22% Average loans and leases, net $96,855 66% $41,706 28% $8,303 6%