FOR IMMEDIATE RELEASE EXHIBIT 99.1 NATIONSBANK NET INCOME REACHED $762 MILLION IN SECOND QUARTER 1997 CHARLOTTE, NC, July 14, 1997 -- NationsBank second-quarter net income increased 26 percent from the year-ago quarter to $762 million, or $1.05 per common share, demonstrating the company's ongoing earnings momentum and benefit from recent acquisitions. "Core revenue growth, stable credit quality and continued expense containment throughout the company drove this quarter's solid performance," said Hugh L. McColl Jr., chief executive officer. "We are very pleased with expense trends, which can be attributed mainly to the successful integration of Boatmen's Bancshares." Net income for the first six months of 1997 rose 31 percent to $1.47 billion, or $2.02 per common share. This compared to net income of $1.12 billion, or $1.85 per common share, in the first six months of 1996. Excluding a merger-related charge in the first quarter of 1996, operating net income and earnings per share for the first six months of 1996 were $1.20 billion and $1.98, respectively. Second quarter 1997 results include the impact of internal growth and several acquisitions completed in 1996 and early 1997, primarily the acquisition of Boatmen's Bancshares Inc. on Jan. 7, 1997. Earnings Highlights (second quarter 1997 compared to second quarter 1996 - ------------------- results) * Cash basis earnings (net income excluding amortization of intangibles) were $1.21 per common share, up 15 percent from $1.05 per share * Tangible return on average tangible common shareholders' equity increased 859 basis points to 30.59 percent, from 22.00 percent * Investment banking income grew 73 percent, pushing noninterest income to $1.2 billion * Net charge-offs as a percentage of average loans remained stable at .49 percent Reported Earnings - ----------------- NationsBank earned $762 million in the second quarter of 1997. This represented a 26-percent increase over the $605 million earned in the second quarter 1996. Earnings per common share for the second quarter 1997 rose 5 percent to $1.05, from $1.00 in the year-ago quarter. Return on average common shareholders' equity was 15.25 percent in the second quarter 1997, down from 18.00 percent in the year-ago quarter, due primarily to the equity issued in the Boatmen's Bancshares Inc. acquisition. Cash Basis Earnings - ------------------- Cash basis earnings increased 37 percent to $873 million in the second quarter of 1997, or $1.21 per common share. This compares to $637 million, or $1.05 per common share, in the second quarter 1996. The tangible return on average tangible common shareholders' equity rose to 30.59 percent in the second quarter 1997, from 22.00 percent in the year-ago quarter. Net Interest Income - ------------------- In the second quarter of 1997, taxable-equivalent net interest income increased 25 percent to $2.02 billion. The growth was achieved through a 20-percent increase in average loans and leases and a 27-basis-point expansion in the net interest yield. The continuing improvement in the net interest yield to 3.89 percent from 3.62 percent is the result of higher yields on the loan and lease portfolio, coupled with deposit expense management efforts. Noninterest Income - ------------------ Noninterest income rose 27 percent to $1.17 billion in the second quarter of 1997. This growth was attributable primarily to higher levels of income from deposit accounts, asset management and fiduciary service fees and investment banking fees. Efficiency - ---------- In the second quarter of 1997, the cash basis efficiency ratio (excluding amortization of intangibles) improved approximately 130 basis points to 53.0 percent, compared to 54.3 percent in the second quarter 1996. Including the amortization of intangibles, the efficiency ratio was 56.5 percent in the second quarter 1997. Credit Quality - -------------- Total nonperforming assets were $1.27 billion on June 30, 1997, or .84 percent of net loans, leases and factored receivables and other real estate owned, compared to .80 percent of net levels on June 30, 1996. The allowance for credit losses totaled $2.79 billion at quarter-end, equaling 250 percent of nonperforming loans, compared to $2.29 billion, or 268 percent, one year earlier. In the second quarter of 1997, provision for credit losses was $190 million, covering net charge-offs of $184 million. Net charge-offs for the quarter equaled .49 percent of average net loans, leases and factored receivables, stable when compared to the second quarter 1996. Capital Strength - ---------------- Total shareholders' equity was $20.0 billion on June 30, 1997. This represented 8.31 percent of period-end assets, compared to 7.29 percent at June 30, 1996. Book value per common share rose to $27.99 at the end of the second quarter 1997. In the second quarter of 1997, NationsBank repurchased approximately 16 million common shares, plus an additional 13 million common shares related to corresponding issuances for general corporate purposes such as associate stock option plans. 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 June 30, 1997, NationsBank had total assets of $240 billion. NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS THREE MONTHS SIX MONTHS ENDED JUNE 30 ENDED JUNE 30 1997 1996 1997 1996(1) FINANCIAL SUMMARY (In millions except per-share data) Net income $762 $605 $1,471 $1,118 Earnings per common share 1.05 1.00 2.02 1.85 Fully diluted earnings per common share 1.02 .99 1.96 1.82 Cash basis earnings (2) 873 637 1,683 1,176 Cash basis earnings per share 1.21 1.05 2.31 1.95 Cash basis fully diluted per share 1.17 1.04 2.24 1.92 Average common shares issued 720.020 600.924 725.188 600.741 Average fully diluted common shares issued 743.629 610.742 750.194 610.802 Price per share of common stock at period end $64.5625 $41.3125 $64.5625 $41.3125 Common dividends paid 237 175 482 349 Common dividends paid per share .33 .29 .66 .58 Preferred dividends paid 3 4 7 8 EARNINGS SUMMARY (Taxable-equivalent in millions) Net interest income $2,017 $1,611 $3,995 $3,195 Provision for credit losses (190) (155) (380) (310) Gains (losses) on sales of securities 29 (6) 72 8 Noninterest income 1,165 917 2,278 1,802 Other real estate owned expense (4) (7) (2) (7) Noninterest expense (1,798) (1,405) (3,608) (2,917) Income before income taxes 1,219 955 2,355 1,771 Income taxes - including FTE adjustment* 457 350 884 653 Net income $762 $605 $1,471 $1,118 *FTE adjustment $29 $24 $57 $51 AVERAGE BALANCE SHEET SUMMARY (In billions) Loans and leases, net $148.113 $123.726 $147.400 $123.504 Managed loans and leases, net 153.353 127.317 152.819 126.660 Securities held for investment 1.647 3.731 1.782 4.012 Securities available for sale 20.851 18.328 20.796 20.662 Total securities 22.498 22.059 22.578 24.674 Earning assets 208.004 178.588 208.423 182.077 Total assets 240.508 202.796 241.352 205.707 Noninterest-bearing deposits 31.310 24.601 30.821 23.905 Interest-bearing deposits 103.351 85.387 103.997 84.542 Total deposits 134.661 109.988 134.818 108.447 Shareholders' equity 20.057 13.552 20.354 13.348 Common shareholders' equity 19.952 13.438 20.214 13.238 OTHER FINANCIAL DATA Net interest yield 3.89% 3.62% 3.86% 3.52% Return on average assets 1.27 1.20 1.23 1.09 Return on average tangible assets 1.51 1.28 1.46 1.16 Return on average common shareholders' equity 15.25 18.00 14.60 16.87 Return on average tangible common shareholders' equity 30.59 22.00 28.41 20.58 Total equity to assets ratio (period end) 8.31 7.29 8.31 7.29 Gross charge-offs (in millions) $259 $224 $510 $434 Net charge-offs (in millions) 184 157 368 312 % of average loans, leases and factored accounts receivable, net .49% .50% .50% .50% Managed credit card net charge-offs as a % of average managed credit card receivables 6.26% 4.36% 6.18% 4.08% Efficiency ratio 56.48 55.57 57.51 56.00 Cash basis efficiency ratio 53.00 54.31 54.13 54.83 (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. JUNE 30 1997 1996 BALANCE SHEET SUMMARY (In billions) Loans and leases, net $149.320 $122.643 Securities held for investment 1.548 3.304 Securities available for sale 19.716 15.806 Total securities 21.264 19.110 Earning assets 209.947 173.654 Factored accounts receivable 1.126 1.062 Mortgage servicing rights 1.196 .862 Goodwill, core deposit and other intangibles 8.570 1.891 Total assets 240.362 192.308 Noninterest-bearing deposits 34.251 24.242 Interest-bearing deposits 100.798 83.882 Total deposits 135.049 108.124 Shareholders' equity 19.970 14.025 Common shareholders' equity 19.909 13.905 Per common share (not in billions) 27.99 23.09 RISK-BASED CAPITAL Tier 1 capital $13.122 $11.971 Tier 1 capital ratio 6.83% 7.58% Total capital $21.737 $18.847 Total capital ratio 11.32% 11.93% Leverage ratio 6.05% 6.64% Common shares issued (in millions) 711.404 602.166 Allowance for credit losses $2.790 $2.292 Allowance for credit losses as % of net loans, leases and factored accounts receivable 1.85% 1.85% Allowance for credit losses as % of nonperforming loans 249.66 268.34 Nonperforming loans $1.117 $.854 Nonperforming assets 1.267 .992 Nonperforming assets as % of: Total assets .53% .52% Net loans, leases, factored accounts receivable and other real estate owned .84% .80% OTHER DATA Full-time equivalent headcount 79,336 62,137 Banking centers 2,630 1,948 ATMs 5,931 3,333 BUSINESS UNIT RESULTS - Three months ended June 30, 1997 (in millions) General Bank Global Finance Financial Services ------------ -------------- ------------------ Total revenue $2,303 73% $682 22% $167 5% Net income 478 63% 225 30% 33 4% Return on average tangible equity 29% 22% 13% Average loans and leases, net $97,017 65% $42,889 29% $8,542 6%