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.