10-Q: Quarterly report pursuant to Section 13 or 15(d)
Published on May 15, 1995
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
(Mark One)
{X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED
For the quarterly period ended March 31, 1995
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OR
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED
For the transition period from to
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Commission file number 1-6523
NationsBank Corporation
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(Exact name of registrant as specified in its charter)
North Carolina 56-0906609
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(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
NationsBank Corporate Center, Charlotte, North Carolina 28255
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(Address of principal executive offices and zip code)
(704) 386-5000
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934, as amended, during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
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On April 30, 1995, there were 271,404,569 shares of NationsBank Corporation
Common Stock outstanding.
1
NationsBank Corporation
March 31, 1995 Form 10-Q
Index
Page
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Part I. Financial Information
Item 1. Financial Statements
Consolidated Statement of Income for the Three Months Ended
March 31, 1995 and 1994..............................................3
Consolidated Balance Sheet on March 31, 1995, December 31, 1994
and March 31, 1994...................................................4
Consolidated Statement of Cash Flows for the Three Months Ended
March 31, 1995 and 1994..............................................5
Consolidated Statement of Changes in Shareholders' Equity for
the Three Months Ended March 31, 1995 and 1994.......................6
Notes to Consolidated Financial Statements...........................7
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition.................................................12
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K....................................36
Signature....................................................................37
Index to Exhibits............................................................38
2
Part I. Financial Information
Item 1. Financial Statements
See accompanying notes to consolidated financial statements.
3
See accompanying notes to consolidated financial statements
4
See accompanying notes to consolidated financial statements.
5
See accompanying notes to consolidated financial statements.
6
NationsBank Corporation and Subsidiaries
Notes to Consolidated Financial Statements
Note 1 - Accounting Policies
The consolidated financial statements include the accounts of NationsBank
Corporation and its subsidiaries (the Corporation). Significant intercompany
accounts and transactions have been eliminated in consolidation.
The information contained in the financial statements is unaudited. In the
opinion of management, all normal recurring adjustments necessary for a fair
presentation of the results of interim periods have been made. Certain prior
period amounts have been reclassified to conform to current period
classifications.
Accounting policies followed in the presentation of interim financial
results are presented on pages 62 and 63 of the 1994 Annual Report to
Shareholders as updated by the following.
Allowance for Credit Losses
The allowance for credit losses is available to absorb losses inherent in
the credit extension process. The entire allowance is available to absorb
losses related to the loan and lease portfolio and other extensions of credit,
including off-balance sheet credit exposures. Credit exposures deemed to be
uncollectible are charged against the allowance for credit losses. Recoveries
of previously charged-off amounts are credited to the allowance for credit
losses.
On January 1, 1995, the Corporation adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 114, "Accounting by
Creditors for Impairment of a Loan" (SFAS 114) and Statement of Financial
Accounting Standards No. 118, "Accounting by Creditors for Impairment of a Loan
- - Income Recognition and Disclosure" (SFAS 118), an amendment of SFAS 114.
These standards address the accounting for impairment of certain loans when it
is probable that all amounts due pursuant to the contractual terms of the loan
will not be collected. Adoption of these standards entailed the identification
of commercial, real estate commercial, real estate construction and foreign
loans which were considered impaired under the provisions of SFAS 114. Adoption
did not have a material impact on the Corporation's financial position or
results of operations.
Under the provisions of these standards, individually identified impaired
loans are measured based on the present value of payments expected to be
received, using the historical effective loan rate as the discount rate.
Alternatively, measurement may also be based on observable market prices or for
loans that are solely dependent on the collateral for repayment, measurement
may be based on the fair value of the collateral. Loans that are to be
foreclosed are measured based on the fair value of the collateral. If the
recorded investment in the impaired loan exceeds the measure of fair value, a
valuation allowance is required as a component of the allowance for credit
losses. Changes to the valuation allowance are recorded as a component of the
provision for credit losses.
The adequacy of the allowance for credit losses is reviewed regularly by
management. Additions to the allowance for credit losses are made by charges to
the provision for credit losses. On a quarterly basis, a comprehensive review
of the adequacy of the allowance for credit losses is performed. This
7
assessment is made in the context of historical losses, as well as existing
economic conditions.
Nonperforming Loans
Commercial loans and leases that are past due 90 days or more as to
principal or interest, or where reasonable doubt exists as to timely
collection, including loans that are individually identified as being impaired
under SFAS 114, are generally classified as nonperforming loans unless well
secured and in the process of collection. Generally, loans which are past due
180 days or more as to principal or interest are classified as nonperforming
regardless of collateral or collection status.
Interest collections on nonperforming loans and leases, including impaired
loans, for which the ultimate collectibility of principal and interest is
uncertain are applied as reductions in book value. Otherwise, such collections
are credited to income when received.
Consumer loans, including credit card loans, that are past due 90 days or
more are not generally classified as nonperforming assets. Generally, consumer
loans are liquidated or charged off soon after becoming 90 days past due or 180
days past due for credit card loans. Income is generally recognized on past-due
consumer and credit card loans until the loan is charged off.
Other Real Estate Owned
Other real estate owned includes foreclosed property and premises no
longer used for business operations.
Under SFAS 114, loans are classified as other real estate owned when the
Corporation forecloses on a property or when physical possession of the
collateral is taken regardless of whether foreclosure proceedings have taken
place. Prior to adoption of SFAS 114, other real estate owned included
in-substance foreclosed loans including certain loans for which the Corporation
had not taken physical possession of the collateral.
Other real estate owned is carried at the lower of (1) the recorded amount
of the loan or lease for which the property previously served as collateral, or
(2) the fair value of the property minus estimated costs to sell. Prior to
foreclosure, the recorded amount of the loan or lease is reduced, if necessary,
to the fair value, minus estimated costs to sell, of the real estate to be
acquired by charging the allowance for credit losses.
Subsequent to foreclosure, gains or losses on the sale of and losses on
the periodic revaluation of other real estate owned are credited or charged to
expense. Net costs of maintaining and operating foreclosed properties are
expensed as incurred.
Note 2 - Acquisition Activity
On March 31, 1995, the Corporation's mortgage banking subsidiary completed
the acquisition of KeyCorp Mortgage Inc. from KeyCorp and Key Bank of New York.
The acquisition included a $25-billion residential mortgage servicing
portfolio, for which the Corporation's subsidiary paid approximately $339
million, a mortgage servicing operation employing approximately 430 associates
and other servicing-related assets.
8
On March 31, 1995, the Corporation's mortgage banking subsidiary acquired
from Source One Mortgage Services Corporation a $10-billion residential
mortgage servicing portfolio at a purchase price of approximately $178 million.
As a result of the above transactions, the Corporation's mortgage
servicing portfolio totaled $75.4 billion on March 31, 1995, compared to $39.0
billion on December 31, 1994. Purchased mortgage servicing rights amounted to
$705 million on March 31, 1995, compared to $195 million on December 31, 1994.
Note 3 - Trading Account Assets and Liabilities
The market values on March 31, 1995 and on December 31, 1994 and the
average market values for the quarter ended March 31, 1995, of the components
of trading account assets and liabilities were (dollars in millions):
Derivatives-dealer positions represent the market values of interest rate,
foreign exchange and commodity products including swap, futures, forward and
option contracts associated with the Corporation's derivatives trading
activities.
9
Note 4 - Debt
During the first quarter of 1995, the Corporation issued $1.1 billion of
senior notes. The Corporation issued $550 million of medium-term notes at par,
which mature between January 1997 and February 2000. Of these notes, $500
million bear interest at a spread over the London interbank offered rate and
$50 million bear interest at a spread over the U.S. Treasury rate. The
Corporation also issued $250 million of 7 1/2-percent senior notes, due
February 1997, and $300 million of floating rate senior notes, due March 1998.
The floating rate notes bear interest at a spread over the London interbank
offered rate.
The Corporation filed a new shelf registration on February 1, 1995, for $3
billion, of which $2 billion has been designated as series D medium-term notes,
which may be senior debt securities, subordinated debt or any combination
thereof.
The short-term bank note program jointly maintained by the Carolinas,
Georgia, and Texas banking subsidiaries had short-term bank notes outstanding
of $5.4 billion as of March 31, 1995. On April 10, 1995, these banking
subsidiaries modified the terms of this program to increase the maximum amount
that may be offered from time to time to $9 billion with fixed or floating
rates and maturities from 30 days to 15 years from date of issue.
During the first quarter of 1995, the Corporation's Texas banking
subsidiary issued $400 million of 7.7 percent REMIC bonds. The source of
repayment of this obligation is a collateral pool of residential mortgage
loans. Based on estimated prepayments of this pool of loans, this obligation
will be paid in full by April 1996.
Subsequent to March 31, 1995 and through May 2, 1995, the Corporation
issued $150 million of senior medium-term notes, $50 million of which bear
interest at a spread over the London interbank offered rate and are due April
2000 and $100 million of 7.23 percent notes due May 1999. The Corporation also
issued $300 million of 7 5/8-percent subordinated notes, due April 2005. As of
May 2, 1995, approximately $2.5 billion of capacity remained available under
various shelf registrations.
Note 5 - Commitments and Contingencies
The Corporation's commitments to extend credit on March 31, 1995, were
$78.7 billion compared to $74.7 billion on December 31, 1994. Standby letters
of credit (SBLCs) and financial guarantees represent commitments by the
Corporation to meet the obligations of the account party if called upon.
Outstanding SBLCs and guarantees on March 31, 1995, were $7.3 billion compared
to $6.9 billion on December 31, 1994. Commercial letters of credit, issued
primarily to facilitate customer trade finance activities, were $1.3 billion on
March 31, 1995 and December 31, 1994. The above amounts have been reduced by
amounts collateralized by cash and amounts participated to other financial
institutions.
See Tables 4 and 5 and the accompanying discussion in Item 2 regarding the
Corporation's derivatives used for risk management purposes.
On March 31, 1995 and December 31, 1994, indemnified securities lending
transactions totaled $5.0 billion and $5.7 billion, respectively. Collateral
with a market value of $5.1 billion and $5.9 billion, for the respective
periods, was obtained by the Corporation in support of these transactions.
On March 31, 1995, the Corporation had commitments to purchase and sell
10
when-issued securities of $3.3 billion and $2.6 billion, respectively. This
compares to commitments to purchase and sell when-issued securities of $2.2
billion and $2.5 billion, respectively, on December 31, 1994.
In the ordinary course of business, the Corporation and its subsidiaries
are routinely defendants in or parties to a number of pending and threatened
legal actions and proceedings, including several actions brought on behalf of
various classes of claimants. In certain of these actions and proceedings,
substantial money damages are asserted against the Corporation and its
subsidiaries and certain of these actions and proceedings are based on alleged
violations of consumer protection, securities, banking and other laws.
Management believes, based upon the advice of counsel, that these actions and
proceedings and losses, if any, resulting from the final outcome thereof, will
not be material in the aggregate to the Corporation's financial position or
results of operations.
11
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition.
Earnings Review
A comparison of selected operating results for the three-month periods
ended March 31, 1995 and 1994, is presented in Table 1.
Net income for the first quarter of 1995 was $443 million, an increase of
$26 million, or six percent, over the first quarter of 1994. Earnings per
common share were $1.60 and $1.52 for the first quarters of 1995 and 1994,
respectively. The return on average common shareholders' equity was 16.03
percent for the first quarter of 1995, compared to 16.82 percent for the first
quarter of 1994.
Key performance highlights for the first quarter of 1995 were:
o Taxable-equivalent net interest income increased $25 million quarter
over quarter to $1.3 billion, primarily as a result of average loan
growth of 13 percent, partially offset by a narrowing of the spread
between investment securities and market-based funds.
o Improvement in credit quality led to provision expense of $70
million in the first quarter of 1995, consistent with the level of
provision expense in the previous three quarters and down from a
level of $100 million in the first quarter of 1994.
o Noninterest income rose $46 million, or 7 percent, to $726 million
primarily due to increased deposit service fee income, investment
banking income, acquisition-related mortgage servicing income and
the impact of reflecting the full ownership of NationsSecurities
throughout the Corporation's income statement, rather than the
netting of income and expense under the equity method of accounting
for the prior joint venture. These increases were partially offset
by a decline of $12 million in trading account profits and fees from
quarter to quarter, resulting from the difficult trading environment
that developed during the latter part of 1994 and continued into
1995. Trading account profits and fees of $83 million for the first
quarter of 1995 were $39 million higher than fourth quarter of 1994
levels.
o Noninterest expense increased $69 million, primarily related to 1994
acquisitions of several smaller banking organizations and mortgage
banking operations, the impact of the full ownership of
NationsSecurities, increased investment in personnel in selected
areas and expanded marketing efforts, primarily credit card
solicitations. The efficiency ratio, which measures the relationship
of noninterest expense to total revenue, was 62.49 percent in the
first three months of 1995, compared to 61.26 percent in the same
period in 1994.
Customer Group Review
The Corporation manages its business activities through three major
internal management units, or Customer Groups. These units, shown in Table 2,
are managed with a focus on numerous performance objectives including return on
equity, operating efficiency and net income.
The net income of the customer groups reflects a funds transfer pricing
system which derives net interest income by matching assets and liabilities
with similar interest rate sensitivity and maturity characteristics. Equity
capital is allocated to each customer group based on an assessment of its
inherent risk.
The General Bank includes the Banking Group, which contains the retail
banking network and is the service provider for the consumer sector as well as
small and medium size companies; Financial Products, which provides specialized
services such as credit cards, residential mortgages, indirect lending, dealer
finance and retail, full service and discount brokerage on a national basis;
Trust and Private Banking.
The General Bank earned $249 million in the first quarter of 1995, a 14-
percent increase over the same period in 1994 with the Banking Group and the
Financial Products' Card Services units primarily accounting for the increased
earnings over last year. Return on equity remained unchanged at 17 percent.
Taxable-equivalent net interest income in the General Bank declined $9 million
reflecting the rise in interest rates as more fully discussed in the net
interest income section. The negative impact of the rise in interest rates was
largely offset by broad-based loan growth and deposit cost containment efforts.
Average loans increased $8.3 billion, or 15 percent, with growth concentrated
in the Banking Group, primarily in residential mortgages, commercial loans and
other consumer loans and Financial Products, primarily credit cards. Improved
credit quality led to a $37-million reduction in the provision for credit
losses between the two quarters.
12
Noninterest income rose 13 percent to $479 million led by increases in
deposit service fee income, acquisition-related mortgage servicing income and
the impact of reflecting the full ownership of NationsSecurities. Noninterest
expense increased $50 million, reflecting the acquisition of smaller banking
organizations in Florida and South Carolina and several mortgage banking
acquisitions, the full ownership of NationsSecurities and expanded marketing
efforts, primarily credit card solicitations.
The Global Finance Group (previously named the Institutional Group)
includes Corporate Finance, Specialized Finance and the Capital Markets Group.
Included under Specialized Finance are Real Estate, Specialized Lending
(includes Business Credit, Factoring and Leasing), Structured Finance (asset-
backed and project financing), Real Estate Finance, Leveraged Capital, and
International. The Capital Markets Group includes customer-related derivatives,
foreign exchange, securities trading and debt underwriting activities. Housed
in this group are NationsBanc-CRT and NationsBanc Capital Markets Inc., which
with its Section 20/Tier II powers, underwrites and deals in various types of
corporate debt and has the power to underwrite and deal in equity securities.
The Global Finance Group earned $163 million in the first quarter 1995, a
one-percent increase over the same period in 1994. Return on equity remained
unchanged at 17 percent. Taxable-equivalent net interest income for the first
quarter of 1995 increased $8 million over the same period a year ago. The
benefit to net interest income of the $2.6-billion increase in average loans
was offset by a narrowing of the spread between investment securities and
market-based funds. The loan growth was concentrated in the Corporate Finance
and Specialized Lending units, while the Real Estate unit reduced average
outstandings by $571 million, compared to last year. The increase in average
deposits consisted primarily of foreign time deposits which resulted from the
wholesale funding initiatives in the latter half of 1994 and the first quarter
in 1995. Continued improvement in asset quality of the Global Finance Group
contributed to the $7-million reduction in provision for credit losses in the
first quarter of 1995 compared to the same period in 1994.
Noninterest income declined three percent, primarily due to lower trading
account profits and fees and was offset by higher investment banking fees.
Investments to expand capital markets activities, primarily personnel-
related expenses, contributed to the $13-million increase in noninterest
expense and the change in the efficiency ratio.
Financial Services consists of NationsCredit and Greyrock Capital Group.
Financial Services contributed $26 million of net income in the first quarter
of 1995, a four-percent increase over the first quarter of 1994. The
favorable impact on net interest income of a $1.5-billion increase in average
loans was mostly offset by an increased level of provision expense to support
such growth. Higher funding costs also impacted results. Average loan growth
of 29 percent was fueled by demand in the consumer lending, commercial real
estate and inventory finance businesses. The net interest yield fell to 7.16
percent, down 15 basis points from the prior year's first quarter, due
primarily to higher funding costs. Noninterest expense increased nine
percent as new offices were opened to support additional consumer loan
originations. Refinement of consumer credit and collection operations, combined
with increased productivity of commercial portfolio administration and
increases in total revenues, led to a decline in the efficiency ratio to 44.05
percent for the first quarter of 1995, down from 47.67 percent for the same
period in 1994. Return on equity decreased from the prior year level of 14
percent due to the increased provision for credit losses supporting loan
growth. The return on equity in this unit is impacted by a higher equity to
asset ratio of 13 percent, necessary to posture this unit for raising funds in
the financial markets.
Net Interest Income
As presented in Table 3, taxable-equivalent net interest income increased
$25 million to $1.3 billion in the first quarter of 1995 compared to the same
period of 1994. The major factors contributing to the increase in taxable-
equivalent net interest income were 13-percent growth in average loans and
leases and deposit cost containment efforts. Average loans and leases rose
$12.2 billion to $103.8 billion in the first quarter of 1995 compared to the
same period of 1994. The factors which caused increases in net interest income
were largely offset by the impact of a narrowing of the spread between
investment securities and market-based funds.
13
The net interest yield declined 28 basis points to 3.41 percent in the
first quarter of 1995, compared to 3.69 percent in the same period of 1994.
Excluding the impact of the Corporation's government securities dealer, for
which trading account revenues are recorded in noninterest income, the net
interest yield in the first quarter of 1995 declined 25 basis points to 3.91
percent, compared to 4.16 percent in the first quarter of 1994. The decline in
the net interest yield primarily reflected spread compression between fixed-
rate investment securities and market-based funds. The mix of funding sources
also contributed to the decline in the net interest yield. While average
customer-based funds were relatively flat between quarters, average market-
based funds between quarters increased 23 percent. A large portion of this
increase was in longer maturity liabilities, primarily foreign time deposits
and bank notes, consistent with interest rate risk management initiatives
undertaken in the latter half of 1994.
Taxable-equivalent interest income increased $678 million to $3.1 billion
in the first three months of 1995, compared to the same period of 1994. Growth
in average earning assets drove $258 million of the increase, while $420
million was related to a 112 basis point rise in the yield. Average earning
assets increased by $14.4 billion, or 10 percent, in the first quarter of 1995,
compared to the same period of 1994. As discussed earlier, this growth was led
by a 13-percent increase in average loans and leases which was broad-based
across loan categories and customer groups. In addition, the aggregate of
securities purchased under agreements to resell and trading account securities
increased $3.4 billion, primarily due to higher trading activity levels of the
Corporation's government securities dealer. The combined securities portfolio
declined $1.9 billion between the two quarters reflecting the timing of
reinvestment of proceeds from maturities and sales.
The yield on average earning assets increased 112 basis points to 7.93
percent from 6.81 percent between the two periods. The yield on total loans and
leases increased 79 basis points to 8.75 percent in the first quarter of 1995,
reflecting loan growth in a rising interest rate environment, the variable rate
nature of a significant portion of the loan portfolio and loan pricing which
has enabled the Corporation to maintain loan spreads. The Corporation's prime
interest rate rose from an average of 6.02 percent in the first quarter of 1994
to 8.83 percent in the first quarter of 1995. The yield on total securities
increased 58 basis points to 5.56 percent for the first quarter of 1995
compared to 4.98 percent for the same period of 1994. This increase resulted
from maturities and sales of lower-yielding securities coupled with
reinvestments at higher rates during the first quarter of 1995.
Interest expense increased $653 million period-over-period with growth in
average interest-bearing liabilities accounting for $125 million of the
increase and $528 million attributable to a 156 basis point rise in rates paid.
Average interest-bearing liabilities increased $13.2 billion, or 10 percent, in
the first quarter of 1995 compared to the first quarter of 1994. Interest-
bearing deposits grew $8.9 billion to $79.3 billion in the first quarter of
1995, compared to the same period of 1994. An increase in average foreign time
deposits of $9.5 billion as well as an increase of $3.4 billion in deposits
resulting from smaller banking organization acquisitions were the primary
factors in this growth. These increases were partially offset by declines in
consumer CDs and money market savings accounts, reflecting industry-wide trends
of customers seeking higher-yielding investment alternatives as well as
disciplined deposit pricing. Borrowed funds and trading account liabilities
increased $3.7 billion, to $51.0 billion, primarily to fund increased trading
activities.
The rate on average interest-bearing liabilities increased 156 basis
points to 5.13 percent in the first quarter of 1995, from 3.57 percent in the
first quarter of 1994, primarily due to a greater use of market-based funds and
the higher level of interest rates in general.
The Corporation's asset and liability management process is utilized to
manage the Corporation's interest rate risk through structuring the balance
sheet and off-balance sheet portfolios to maximize net interest income while
maintaining acceptable levels of risk to changes in market interest rates. In
implementing strategies to manage interest rate risk, the primary tools used by
the Corporation are the discretionary portfolio, which is comprised of the
securities portfolio and interest rate swaps, and management of the mix, rates
and maturities of the wholesale and retail funding sources of the Corporation.
During the rising interest rate environment of 1994, the Corporation
shifted its interest rate risk position from one postured to benefit modestly
from stable to declining interest rates to a more neutral position. The actions
taken by the Corporation to shift its position included reduction of the net
receive fixed swap position, reduction of investment securities, and extension
of maturities of fixed-rate deposits and borrowings.
Swaps allow the Corporation to adjust its interest rate risk position
without exposure to principal risk and funding requirements as swaps do not
involve the exchange of notional amounts, only net interest payments. The
Corporation uses non-leveraged generic, index amortizing and collateralized
mortgage obligation (CMO) swaps. Generic swaps involve the exchange of fixed
and variable interest rates based on the contractual underlying notional
amounts. Index amortizing and CMO swaps also involve the exchange of fixed and
variable interest rates, however, their notional amounts decline and their
maturities vary based on certain interest rate indices in the case of index
amortizing swaps, or mortgage prepayment rates in the case of CMO swaps.
14
In early 1995, the Corporation entered into pay fixed interest rate swap
transactions with gross notional amounts totaling $1.6 billion. In addition,
$325 million of receive fixed interest rate swaps matured in the first quarter
of 1995. As reflected in Table 4, the gross notional amount of the
Corporation's asset and liability management interest rate swap position on
March 31, 1995, was $27.3 billion with the Corporation receiving fixed on $17.2
billion, converting variable-rate commercial loans to fixed rate and receiving
variable on $10.1 billion, fixing the cost of certain variable-rate
liabilities, primarily market-based borrowed funds. On March 31, 1995, the net
receive fixed position was $7.1 billion, representing a reduction from the net
receive fixed position of $8.9 billion on December 31, 1994, and $17.7 billion
on March 31, 1994.
Net interest income is impacted by the Corporation's asset and liability
management interest rate swap program. As reflected in Table 5, on March 31,
1995, the portfolio had a weighted average receive rate of 5.45 percent and a
pay rate of 6.40 percent. Net interest receipts and payments have been included
in interest income and expense on the underlying instruments. Asset and
liability management interest rate swaps resulted in a reduction of net
interest income of $74 million in the first quarter of 1995 compared to an
increase of $52 million in the first quarter of 1994. Deferred gains and losses
related to any terminated contracts are insignificant.
The net unrealized depreciation on March 31, 1995, was $486 million
compared to $726 million on December 31, 1994, primarily reflecting the
reduction in short-term interest rates. The net unrealized depreciation on
March 31, 1994, approximated $375 million.
Average securities for the quarter ended March 31, 1995, totaled $25.4
billion, a decrease of $1.2 billion from the fourth quarter of 1994 and a
decrease of $1.9 billion from the first quarter of 1994. Beginning in the
second quarter of 1994, the Corporation did not fully replace maturities and
sales of securities. During the first quarter of 1995, the Corporation added
slightly to securities levels in light of expected market conditions.
Approximately $6.2 billion of securities were purchased, with the Corporation
ending the first quarter of 1995 with a total securities portfolio of $26.5
billion, compared to a level of $25.8 billion on December 31, 1994. During the
remainder of 1995, approximately $5.2 billion of securities with an average
yield of approximately four percent will mature. See the Analysis of Financial
Condition - Securities for further details on the securities portfolio.
On March 31, 1995, the interest rate risk position of the Corporation
continued to be relatively neutral as the impact of a gradual 100-basis-point
rise in interest rates over the next 12 months was estimated to have an
insignificant impact on net income when compared to stable rates.
The unrealized depreciation in the estimated value of the ALM swap
portfolio and securities portfolio should be viewed in the context of the
overall balance sheet. The value of any single component of the balance sheet
or off-balance sheet position should not be viewed in isolation. For example,
the value of core deposits and other fixed-rate longer-term liabilities
increase as interest rates rise, offsetting the decline in value of swaps and
other fixed-rate assets. The overall impact of a 100-basis point parallel
increase in interest rates from March 31, 1995 levels is estimated to have an
insignificant impact on the market value of equity.
Table 6 represents the Corporation's interest rate gap position on March
31, 1995. Based on contractual maturities or repricing dates, or anticipated
dates where no contractual maturity or repricing date exists, interest-
sensitive assets and liabilities are placed in maturity categories. The
Corporation's negative cumulative interest rate gap position in the near term
reflects the strong customer-deposit gathering franchise which provides a
relatively stable core deposit base. These available funds have been deployed
in longer-term interest-earning assets including certain loans and securities.
A gap analysis is limited in its usefulness as it represents a one-day position
which is continually changing and not necessarily indicative of the
Corporation's position at any other time. Additionally, the gap analysis does
not consider the many factors accompanying interest rate movements.
Provision for Credit Losses
The provision for credit losses was $70 million in the first quarter of
1995 consistent with the provision levels in the previous three quarters. The
provision for credit losses was $100 million in the first quarter of 1994. The
lower provision level in the first quarter of 1995, compared to the first
quarter of 1994, reflects continued improvement in credit quality as evidenced
by decreases in net charge-offs and lower nonperforming asset levels.
Securities Gains
Gains from the sales of securities were $1 million in the first three
months of 1995 compared to $14 million in the same period of 1994.
15
Noninterest Income
Table 7 compares the major categories of noninterest income for the first
quarters of 1995 and 1994. Noninterest income totaled $726 million in the first
quarter of 1995, an increase of $46 million, or 7 percent, from $680 million in
the same quarter of 1994.
Deposit account service charges totaled $207 million in the first quarter
of 1995, an $11-million increase compared to the first quarter of 1994. The
acquisition of several smaller banking organizations accounted for $3 million
of this increase. The remaining increase was the result of higher fees from
increased consumer account volumes and emphasis on fee collections, offset by
lower commercial account service charge fees.
Mortgage servicing and related fees totaled $21 million in the first
quarter of 1995, an increase of $5 million, or 31 percent, from $16 million in
the same quarter of 1994. The increase was primarily attributable to the
acquisition of mortgage servicing portfolios in 1994. As discussed more fully
in Note 2, on March 31, 1995, the Corporation acquired mortgage servicing
portfolios totaling $35.0 billion, bringing the total servicing portfolio to
$75.4 billion, compared to $39.0 billion on December 31, 1994 and $29.4 billion
on March 31, 1994. Mortgage loan originations through the Corporation's
mortgage subsidiary totaled $1.5 billion for the first quarter of 1995 compared
to $2.1 billion for the first quarter of 1994, primarily reflecting the rising
interest rate environment. First quarter 1995 origination volume consisted of
approximately $900 million of retail loan volume and $600 million of
correspondent loan volume.
The 53-percent increase in investment banking income was the result of
higher syndication fees and venture capital income. The Capital Markets
syndication group was agent or co-agent on 64 deals totaling $56.5 billion
during the first quarter of 1995, compared to 47 deals totaling $28.0 billion
during the same period in 1994.
First quarter 1995 General Bank trust fees were relatively flat compared
to first quarter of 1994. On March 31, 1995, discretionary assets under
management and total assets under administration by the Trust Group were $59.1
billion and $171.2 billion, respectively, compared to $57.4 billion and $163.6
billion, respectively, on December 31, 1994.
During the first quarter of 1995, the Corporation announced its decision
to sell a portion of its trust business that deals with bond servicing and
administration, known as Corporate Trust. This decision was based on
management's desire to focus on investment management, retirement and fiduciary
services. Historically, the Corporate Trust business has generated
approximately 10 percent of the Corporation's trust fees. Management does not
expect the sale of the Corporate Trust business to have a significant ongoing
impact on future net income.
Brokerage income increased $11 million, or 85 percent, to $24 million in
the first quarter of 1995 compared to $13 million in the same period of 1994.
This increase was due to the full ownership of NationsSecurities in the first
quarter of 1995. NationsSecurities was a joint venture arrangement prior to
November 15, 1994 and was accounted for under the equity method.
The Corporation maintains trading positions in a variety of cash and
derivative financial instruments. The Corporation offers a number of products
to customers, as well as enters into transactions for its own account. In
setting trading strategies, the Corporation manages these activities to
maximize trading revenues while at the same time taking controlled risks.
Trading revenues are dependent on a number of factors including interest
rate and currency movements, market liquidity and volatility, transaction
volume and diversity and outside political and industry forces. Trading account
profits and fees declined $12 million to $83 million in the first quarter of
1995 compared to the first quarter of 1994. Difficult market conditions, which
persisted throughout the latter part of 1994 as interest rates rose, continued
into 1995. Trading profits and fees of $83 million for the first quarter of
1995, were $39 million higher than the fourth quarter of 1994 levels. An
analysis of trading account profits and fees by major business activity for the
three months ended March 31 is as follows (dollars in millions):
16
Miscellaneous other income totaled $77 million in the first quarter of
1995 compared to $72 million in the first quarter of 1994. This category of
miscellaneous income includes certain prepayment and other fees as well as net
gains on sales of miscellaneous investments, business units, premises, venture
capital investments, mortgage servicing and other similar items.
On April 3, 1995, the Corporation and First Financial Management
Corporation (FFMC) announced that FFMC's subsidiary NaBANCO and the Card
Services unit agreed to form a joint venture to market merchant credit card
authorization, processing and settlement services to regional and local
merchants throughout the Corporation's service area of the Southeast and
Southwest. The Corporation contributed its merchant discount unit in exchange
for consideration including an equity investment position in the newly formed
joint venture. The venture will be called Unified Merchant Services, a NaBANCO
- - NationsBank Venture and will begin operations in the second quarter of 1995.
Accordingly, merchant discount fee income and the related expense of the
contributed unit will be reduced in future periods. However, the Corporation
will receive equity earnings from the operations of the venture.
Other Real Estate Owned Expense
OREO expense was $2 million in the first quarter of 1995, a decline from
$5 million in the same period of 1994, primarily resulting from lower levels of
OREO and improvement in asset quality. Improved real estate markets resulted in
lower OREO write-downs offset by declines in operating income.
Noninterest Expense
The Corporation's noninterest expense as shown in Table 8 increased $69
million, or six percent, in the current quarter compared to the same quarter in
1994, to a total of $1.29 billion. Approximately 60 percent of this increase
from quarter to quarter results from several smaller banking organization and
mortgage banking acquisitions during the latter portion of 1994 and the full
ownership of NationsSecurities.
Personnel expense, which accounts for 49 percent of noninterest expense,
increased $61 million in the first quarter of 1995 compared to the first
quarter of 1994. This increase was primarily due to acquisitions. Continued
investment in personnel for the Capital Markets and Financial Products groups
also contributed to the increase in personnel expense.
Marketing expense increased $21 million, or 57 percent, from $37 million
in the first quarter of 1994 to $58 million in the first quarter of 1995. This
increase was driven primarily by increased credit card solicitations in the
Financial Products group.
Other general operating expense decreased 17 percent in the first quarter
of 1995 compared to the first quarter of 1994. This $18-million decrease was
primarily due to lower loan and collection expenses.
Income Taxes
The Corporation's income tax expense was $231 million in the first quarter
of 1995. The effective tax rate was 34.3 percent of pretax income in the first
quarter of 1995, compared to 33.9 percent for the full year 1994 and 36.6
percent in the first quarter of 1994.
Analysis of Financial Condition
- -------------------------------
Liquidity, a measure of the Corporation's ability to fulfill its cash
requirements, is managed by the Corporation through its asset and liability
management process. This entails measuring and managing the relative balance
between asset, liability and off-balance sheet positions. The Corporation's
continuation of this process, coupled with its ability to raise capital and
debt financing and to securitize certain assets, ensures the maintenance of
sufficient funds to meet the liquidity needs of the Corporation.
Period-end assets were $183.9 billion, $169.6 billion and $165.1 billion
on March 31, 1995, December 31, 1994 and March 31, 1994, respectively. Average
total assets were $177.5 billion for the first three months of 1995 compared to
$161.3 billion for the first three months of 1994. The following discussion
analyzes the major components of the period-end and average balance sheets.
Cash and cash equivalents decreased $1.6 billion from December 31, 1994,
to March 31, 1995, due to $2.9 billion in cash used by operating activities and
$8.1 billion in cash used in investing activities, offset by $9.4 billion in
cash provided by financing activities.
Net cash used in investing activities totaled $8.1 billion primarily
reflecting a $2.6-billion increase in federal funds sold and securities
purchased under agreements to resell, $2.9 billion in net originations of loans
and leases, $6.2 billion in purchases of securities, $793 million in purchases
of loans and leases, partially offset by $5.7 billion in proceeds from sales
and maturities of securities.
17
Net cash provided by financing activities totaled $9.4 billion due to
increases of $6.9 billion in federal funds purchased and securities sold under
agreements to repurchase, $1.1 billion in other short-term borrowings and
commercial paper, and $1.5 billion in proceeds from issuances of long-term
debt.
Table 9 presents an analysis of the major sources and uses of funds for
the two three-month periods based on average levels.
Market-based funds increased 23 percent to an average of $66.5 billion in
the first quarter of 1995 from $54.0 billion in the same period of 1994 due to
increases in foreign deposits and increased use of market-based funds related
to trading account activities primarily associated with the Corporation's
government securities dealer. Customer-based funds, which represent 47.2
percent of total sources of funds, averaged $83.8 billion in the first quarter
of 1995 compared to $83.6 billion, or 51.9 percent of total sources of funds,
in the same period of 1994.
The composition of uses of funds reflected a 13-percent increase in
average loans and leases to $103.8 billion in the first quarter of 1995
compared to the same period one year ago. Average other earning assets rose
$3.8 billion to $26.6 billion in the first three months of 1995 compared to the
same period in 1994 principally due to higher levels of securities purchased
under agreements to resell reflecting increased trading activities primarily of
the Corporation's government securities dealer and higher levels of federal
funds sold.
The Corporation's ratio of average loans to customer-based funds was 124
percent for the first three months of 1995 compared to 110 percent for the
first three months of 1994. The higher loan to deposit ratio was driven by a
high level of loan growth, a decline in customer-based deposit levels resulting
from disciplined deposit pricing and increased use of market-based funds
consistent with interest rate risk management initiatives.
Securities
The securities portfolio on March 31, 1995, consisted of securities held
for investment totaling $17.5 billion and securities available for sale
totaling $9.0 billion compared to $17.8 billion and $8.0 billion, respectively,
on December 31, 1994. On March 31, 1994, securities held for investment were
$14.4 billion and securities available for sale were $15.9 billion.
Due to uncertainty of interest rate movements, during the latter half of
1994 and early 1995, the Corporation did not fully replace maturities and sales
of securities resulting in a decline in the average securities portfolio to
$25.4 billion for the first three months in 1995 compared to $26.5 billion for
the last three months of 1994. During the first quarter the Corporation added
slightly to securities levels in light of expected market conditions by
purchasing approximately $6.2 billion of securities, bringing the ending
portfolio balance to $26.5 billion on March 31, 1995.
The Corporation's portfolio of securities held for investment reflected
unrealized net depreciation of $338 million, $699 million and $198 million on
March 31, 1995, December 31, 1994, and March 31, 1994, respectively. The
valuation reserve for securities available for sale and marketable equity
securities decreased shareholders' equity by $47 million on March 31, 1995,
reflecting $132 million of pretax depreciation on securities available for
sale, offset by $57 million of pretax appreciation on marketable equity
securities. The valuation amount reduced shareholders' equity by $136 million
and $5 million on December 31, 1994 and March 31, 1994, respectively. The
changes in the unrealized net depreciation of securities held for investment
and the valuation reserve for securities available for sale are primarily due
to changes in the levels of market interest rates and the maturity of lower-
yielding securities in these portfolios.
The estimated average maturity of the combined securities portfolios was
2.53 years, 2.56 years and 2.02 years on March 31, 1995, December 31, 1994, and
March 31, 1994, respectively. Approximately $5.2 billion of the total
securities portfolio, with an average yield of approximately four percent, will
mature over the remainder of 1995. No significant liquidations other than
scheduled maturities are currently anticipated. As such, no significant
securities losses are currently expected to result from the net unrealized
depreciation in the securities portfolios on March 31, 1995.
Loans
Loans and leases, net of unearned income on March 31, 1995, December 31,
1994 and March 31, 1994 were $105.7 billion, $102.4 billion and $92.1 billion,
respectively.
Average loans and leases increased 13 percent to $103.8 billion in the
first quarter of 1995, compared to $91.6 billion in the same period of 1994.
18
Commercial loans increased $4.8 billion, or 12 percent, to an average of
$45.2 billion in the first quarter of 1995. The General Bank contributed $3.1
billion, or 65 percent of the increase, Global Finance accounted for $1.3
billion, or 27 percent of the increase, and Financial Services produced $395
million, or 8 percent of the increase.
Total nonresidential real estate commercial and construction average loans
outstanding declined $942 million, or eight percent, during the first quarter
of 1995 compared to the same period in 1994. The Corporation's geographic and
property-type distribution on March 31, 1995, for these loans was comparable to
distributions on December 31, 1994.
Residential mortgage loans for the first quarter of 1995 averaged $17.8
billion, a $4.4-billion, or 33-percent, increase in average levels from the
first quarter of 1994. The growth was primarily due to increased origination of
residential mortgages through the Corporation's vast banking center network
coupled with retention of a portion of the loans originated in the
Corporation's mortgage subsidiary.
Average credit card portfolio levels for the first quarter of 1995
increased $870 million, or 24 percent, over 1994 same period levels. Of the
$870-million increase, 77 percent, or approximately $670 million was
attributable to new accounts and 23 percent, or approximately $200 million was
attributable to increases in average outstanding balances of existing accounts.
Other average consumer loans increased $1.1 billion to $17.9 billion in the
first quarter of 1995, compared to $16.8 billion in the first quarter of 1994.
Nonperforming Assets
On March 31, 1995, nonperforming assets, presented in Table 10, were $1.08
billion, or 1.00 percent of net loans, leases, factored accounts receivable and
other real estate owned, compared to $1.14 billion, or 1.10 percent, on
December 31, 1994, and $1.64 billion, or 1.73 percent, on March 31, 1994.
Nonperforming loans totaled $854 million at the end of the first quarter
of 1995, compared to $801 million on December 31, 1994 and $1.07 billion on
March 31, 1994. The net increase in nonperforming loans from December 31, 1994
primarily reflects $80 million of in-substance foreclosed loans previously
reported as other real estate owned. The decrease from March 31, 1994 to March
31, 1995 was centered in real estate commercial and construction loans which
declined $163 million, or 37 percent, and in commercial loans which declined
$26 million, or six percent. This reduction in nonperforming loans primarily
reflected increased payments, the improved financial condition of borrowers and
the results of the Corporation's continuing loan workout activities.
Other real estate owned, which represents real estate acquired through
foreclosure totaled $221 million on March 31, 1995, a net decline of $348
million, or 61 percent, from March 31, 1994 and a net decline of $116 million,
or 34 percent, from December 31, 1994.
As discussed in Note 1 to the consolidated financial statements, on
January 1, 1995, the Corporation adopted SFAS 114. See Table 10 and Allowance
for Credit Losses.
Allowance for Credit Losses
On March 31, 1995, December 31, 1994 and March 31, 1994, the allowance for
credit losses was $2.2 billion and represented 2.03 percent, 2.11 percent and
2.33 percent, respectively, of loans, leases and factored accounts receivable.
The allowance for credit losses as a percentage of nonperforming loans was
254 percent on March 31, 1995, compared to 273 percent at year-end 1994 and 205
percent on March 31, 1994.
Table 11 provides an analysis of the changes in the allowance for credit
losses for the quarter ended March 31, 1995 and 1994. Total net charge-offs for
the first quarter of 1995 were $83 million, or .32 percent of average loans,
leases and factored accounts receivable, versus $90 million, or .39 percent, in
the comparable three-month period in 1994. The decline in net charge-offs was
primarily centered in commercial loans. The reduction in charge-offs is due to
the strengthened financial condition of borrowers.
The ratio of net charge-offs to average loans outstanding for commercial
and commercial real estate loans for the first quarter of 1995 decreased as
compared to the first quarter of 1994 from .15 and .43 percent, respectively,
to .06 and .21 percent, respectively. real estate construction loans
experienced net recoveries quarter to quarter. Offsetting these positive trends
were slight increases in the net charge-off ratios for credit card and other
consumer loans which were 2.94 and .81 percent, respectively, for the first
quarter of 1995 compared to 2.87 and .77 percent, respectively, for same period
in 1994.
19
As previously discussed, on March 31, 1995, the recorded investment in
certain loans that are considered to be impaired under SFAS 114 was $692
million, all of which was classified as nonperforming. Of these impaired loans,
$441 million has a related valuation allowance of $62 million and $251 million
does not have a related valuation allowance primarily due to application of
interest payments against book balances or write-downs previously taken on
these loans. Provision expense associated with impaired loans for the first
quarter of 1995 approximated $9 million. The average recorded investment in
certain impaired loans during the quarter ended March 31, 1995, was
approximately $702 million. During the quarter ended March 31, 1995, interest
income recognized on impaired loans totaled $6.3 million, all of which was
recognized on a cash basis.
Other Earning Assets
As presented in Table 3, average other earning assets, including loans
held for sale, federal funds sold, securities purchased under agreements to
resell, trading account securities and time deposits placed and other short-
term investments increased $4.0 billion to $28.9 billion in the first quarter
of 1995, compared to $24.9 billion in the first quarter of 1994. Higher trading
related assets of the Corporation's government securities dealer was the major
factor in this increase.
Deposits
Average deposits were $99.3 billion during the first quarter of 1995,
compared to $90.3 billion during the same period of 1994. An increase in
average foreign time deposits of $9.5 billion as well as an increase of $3.4
billion in deposits resulting from smaller banking organization acquisitions
were the primary factors in this growth. The increase in foreign time deposits
is due to the extension of liability maturities consistent with interest rate
risk management initiatives. These increases were offset by a decrease of $1.8
billion in money market savings from $16.4 billion in the first quarter of 1994
to $14.6 billion in the first quarter of 1995, and a decrease of $1.1 billion
in consumer CDs from $17.7 billion in the first quarter of 1994 to $16.6
billion in the first quarter of 1995. These decreases reflect industry-wide
trends as customers continued to seek higher-yielding investment alternatives
and the Corporation's disciplined deposit pricing.
Short-Term Borrowings
Average short-term borrowings were $39.6 billion during the first quarter
of 1995, compared to $36.5 billion during the same period in 1994. This
increase in average outstandings is primarily due to an increase in securities
sold under agreements to repurchase of $3.1 billion to fund trading account
activities and increased short-term bank notes of $2.1 billion. These increases
were partially offset by a decrease in average levels of federal funds
purchased of $2.5 billion between the quarters. Commercial paper average
outstandings also increased $376 million. Commercial paper is used to partially
fund loan growth of the Financial Services Group as well as for other general
corporate purposes.
Capital
Shareholders' equity totaled $11.3 billion on March 31, 1995, compared to
$11.0 billion on December 31, 1994, and $10.2 billion on March 31, 1994. Under
previously announced common stock repurchase programs, the Corporation
repurchased and retired 1.6 million common shares at a cost of $79 million,
including approximately 500 thousand shares to offset shares issued through
dividend reinvestment and stock option and grant programs. The Corporation
plans to continue share repurchases under these programs.
The Corporation's Tier 1 ratios were 7.25 percent, 7.43 percent and 7.50
percent on March 31, 1995, December 31, 1994, and March 31, 1994, respectively.
The total risk-based capital ratios were 11.06 percent, 11.47 percent and 11.66
percent on March 31, 1995, December 31, 1994, and March 31, 1994, respectively.
Both of these measures compare favorably with the regulatory minimums.
Decreases in these ratios result primarily from increases in the level of the
Corporation's risk weighted assets, primarily loans. The Corporation's leverage
ratios were 6.15 percent, 6.18 percent and 6.11 percent on March 31, 1995,
December 31, 1994 and March 31, 1994, respectively.
Derivatives - Dealer Positions
Within the Corporation's Credit Policy organization, a group is dedicated
to managing credit risks associated with trading activities. The Corporation
maintains trading positions in a number of markets and with a variety of
counterparties or obligors ("counterparties"). To limit credit exposure arising
from such transactions, the Corporation evaluates the credit standing of
counterparties, establishes limits for the total exposure to any one
counterparty, monitors exposure against the established limits and monitors
trading portfolio composition to manage concentrations.
20
Counterparties are subject to the credit approval and credit monitoring
policies and procedures of the Corporation. Certain instruments require the
Corporation or the counterparty to maintain collateral for all or part of the
exposure. Generally, such collateral is in the form of cash or other highly
liquid instruments. Limits for exposure to any particular counterparty are
established and monitored. In certain jurisdictions, counterparty risk is also
reduced through the use of legally enforceable master netting arrangements
which allow the Corporation to settle positions with the same counterparty on a
net basis. The contract or notional amounts associated with the Corporation's
derivative-dealer positions are reflected in Table 12. The notional or contract
amounts indicate the total volume of transactions and significantly exceed the
amount of the Corporation's credit or market risk associated with these
instruments. The Corporation's exposure to credit risk from derivative
financial instruments is represented by the fair value of the instruments.
Credit risk represents the replacement cost the Corporation could incur should
counterparties with contracts in a gain position to the Corporation completely
fail to perform under the terms of those contracts and any collateral
underlying the contracts proves to be of no value to the Corporation. Such
aggregate amounts measured by the Corporation as the gross positive replacement
cost on March 31, 1995 and December 31, 1994, were $3.7 billion and $1.8
billion, respectively. Of these credit risk amounts, $858 million and $354
million relates to exchange-traded instruments for 1995 and 1994, respectively.
Because exchange-traded instruments conform to standard terms and are subject
to policies set by the exchange involved, including counterparty approval,
margin requirements and security deposit requirements, the credit risk to the
Corporation is minimal. The $1.9-billion increase in the credit risk amount
from December 31, 1994 is driven primarily by an increase in foreign exchange
trading volume coupled with the continued decline in the value of the U.S.
dollar against major currencies in which the Corporation trades.
21
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Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit 10 - NationsBank Corporation Key Employee Stock Plan
Exhibit 11 - Earnings Per Share Computation
Exhibit 12(a) - Ratio of Earnings to Fixed Charges
Exhibit 12(b) - Ratio of Earnings to Fixed Charges and Preferred
Dividends
Exhibit 27 - Financial Data Schedule
b. Reports on Form 8-K
The following reports on Form 8-K were filed by the Corporation
during the quarter ended March 31, 1995:
Current Report on Form 8-K dated January 17, 1995, and filed
January 26, 1995, Items 5 and 7.
Current Report on Form 8-K dated February 16, 1995, and filed
February 21, 1995, Items 5 and 7.
Current Report on Form 8-K dated February 22, 1995, and filed
March 2, 1995, Items 5 and 7.
Current Report on Form 8-K dated February 28, 1995, and filed
March 2, 1995, Items 5 and 7.
Current Report on Form 8-K, as amended, dated March 20, 1995, and
filed March 21, 1995, Items 5 and 7.
Current Report on Form 8-K dated March 20, 1995, and filed March
27, 1995, Items 5 and 7.
36
Signature
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
NationsBank Corporation
-------------------------------------
Registrant
Date: May 15, 1995 /s/ Marc D. Oken
------------------ -------------------------------------
Marc D. Oken
Executive Vice President
and Chief Accounting Officer
(Duly Authorized Officer and
Principal Accounting Officer)
37
NationsBank Corporation
Form 10-Q
Index to Exhibits
Exhibit Description Page
- ------- ----------- ----
10 NationsBank Corporation Key Employee Stock Plan................. 39
11 Earnings Per Share Computation.................................. 60
12(a) Ratio of Earnings to Fixed Charges.............................. 61
12(b) Ratio of Earnings to Fixed Charges and Preferred Dividends...... 62
27 Financial Data Schedule......................................... 63
38