Form: 8-K

Current report filing

April 17, 1996

Documents

EXHIBIT 99.1 OF FORM 8-K

Published on April 17, 1996


FOR IMMEDIATE RELEASE EXHIBIT 99.1
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NATIONSBANK POSTED EARNINGS OF $590 MILLION
UP 33 % IN FIRST QUARTER 1996

CHARLOTTE NC, April 15, 1996 -- The combination of excellent revenue growth
and well-managed expenses resulted in record first-quarter operating
earnings of $590 million for NationsBank.

"These first quarter results provide an excellent start to the year," said
Hugh L. McColl, chairman and chief executive officer. "Our performance
highlights the broad-based earnings growth that our company is capable of
producing.

"Our recent acquisitions in Florida and Georgia strengthened our market
share and earning power in these fast-growing states. The combination of
these acquisitions and our solid internal earnings growth clearly has
increased the value we deliver to our shareholders."

First quarter 1996 results include the impact of several acquisitions
completed close to the end of 1995; therefore, quarterly growth comparisons
reflect the impact of these acquisitions in addition to internal growth.

Earnings Highlights (first quarter 1996 compared to first quarter 1995)
- -------------------
* Net interest income increased 19 percent to $1.6 billion
* Noninterest income rose 22 percent to $885 million
* The efficiency ratio improved to 56.4 percent

NationsBank earned $590 million in the first quarter of 1996, before a
merger-related charge. This represented a 33-percent increase from the
$443 million earned in the first quarter of 1995. Operating earnings per
common share for the first quarter of 1996 rose 22 percent to $1.95, from
$1.60 per common share in the first quarter of 1995. The operating return
on common shareholders' equity rose to 18.1 percent in the first quarter of
1996.

As a result of the merger-related, after-tax charge of $77 million,
reported net income and earnings per share were $513 million and $1.70,
respectively, in the first quarter 1996.
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Net Interest Income
- -------------------
In the first quarter of 1996, average loans and leases grew 19 percent over
year-earlier levels to $123 billion. This increase was driven by a 35-
percent increase in average consumer loans, primarily residential mortgage
and bank card loans. This loan growth led to a 19-percent increase in net
interest income on a taxable-equivalent basis to $1.6 billion in the first
quarter 1996.

Noninterest Income
- ------------------
Noninterest income rose 22 percent to $885 million in the first quarter of
1996, reflecting the diverse fee-generating activities of the company.
Higher investment banking fees, service fees and mortgage servicing fees
drove the year-over-year increase.

Efficiency
- ----------
Strong revenue growth outpaced expense growth in the first quarter of 1996,
improving the efficiency ratio to 56.4 percent, a 605-basis-point
progression from 62.5 percent in the year-ago quarter.

Credit Quality
- --------------
Total nonperforming assets were $985 million on March 31, 1996, or .79
percent of net loans, leases and factored receivables and other real estate
owned. This compared to 1.00 percent of net levels on March 31, 1995. The
allowance for credit losses totaled $2.25 billion at March 31, 1996 and
equaled 268 percent of nonperforming loans, up from 254 percent at March
31, 1995. In the first quarter of 1996, net charge-offs were $155 million,
or .50 percent of average net loans, leases and factored receivables,
compared to .32 percent of average levels in the first quarter of 1995.

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Capital Strength
- ----------------
Total shareholders' equity climbed 19 percent to $13.6 billion on March 31,
1996 from levels one year ago. This represented 6.97 percent of period-end
assets. Book value per common share rose nine percent to $44.92 at the end
of the first 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 a retail banking
franchise in nine states and the District of Columbia. As of March 31,
1996, NationsBank had total assets of $194 billion.


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NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS


THREE MONTHS
ENDED MARCH 31
1996 1995
FINANCIAL OPERATING SUMMARY
(In millions except per-share data)


Net income $590 $443
Earnings per common share 1.95 1.60
Fully diluted earnings per common share 1.92 1.58
Average common shares issued 300.279 276.415
Average fully diluted common shares issued 305.473 279.997
Price per share of common stock
at period end $80.125 $50.750
Common dividends paid 174 138
Common dividends paid per share 0.58 0.50
Preferred dividends paid 4 2

OPERATING EARNINGS SUMMARY
(Taxable-equivalent in millions)

Net interest income $1,584 $1,335
Provision for credit losses (155) (70)
Gains on sales of securities 14 1
Noninterest income 885 726
Other real estate owned (expense) - (2)
Other noninterest expense (1,394) (1,288)

Income before income taxes 934 702
Income taxes - including FTE adjustment* (344) (259)
Net income $590 $443

*FTE adjustment $27 $28

AVERAGE BALANCE SHEET SUMMARY
(In billions)

Loans and leases, net $123.282 $103.827
Securities held for investment 4.292 17.648
Securities available for sale 22.997 7.728
Total securities 27.289 25.376
Earning assets 185.566 158.149
Total assets 208.617 177.515
Noninterest-bearing deposits 23.209 19.984
Interest-bearing deposits 83.697 79.301
Total deposits 106.906 99.285
Shareholders' equity 13.144 11.192
Common shareholders' equity 13.037 11.158
OTHER OPERATING FINANCIAL DATA

Net interest yield 3.43% 3.41%
Return on average assets 1.14 1.01
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Return on average common
shareholders' equity 18.07 16.03
Gross charge-offs (in millions) $210 $134
Net charge-offs (in millions) 155 83
% of average loans, leases and
factored accounts receivable, net 0.50% 0.32%
Efficiency Ratio 56.44 62.49

REPORTED RESULTS (OPERATING RESULTS INCLUDING
MERGER-RELATED CHARGE)

Net Income $513 $443
Earnings per common share 1.70 1.60
Fully diluted earnings per common share 1.67 1.58
Return on average common
shareholders' equity 15.71% 16.03%


MARCH 31
1996 1995
BALANCE SHEET SUMMARY
(In billions)


Loans and leases, net $123.169 $105.704
Securities held for investment 4.104 17.546
Securities available for sale 17.771 8.962
Total securities 21.875 26.508
Earning assets 174.053 165.549
Factored accounts receivable 1.175 1.224
Mortgage servicing rights .782 .705
Goodwill, core deposit and
and other intangibles 1.814 1.507
Total assets 194.375 183.854
Noninterest-bearing deposits 24.101 20.264
Interest-bearing deposits 85.521 80.479
Total deposits 109.622 100.743
Shareholders' equity 13.557 11.346
Common shareholders' equity 13.444 11.312
Per common share (not in billions) 44.92 41.07

Risk-based capital
Tier 1 capital $11.479 $9.727
Tier 1 capital ratio 7.35% 7.25%
Total capital $18.280 $14.841
Total capital ratio 11.71% 11.06%

Leverage ratio 6.19% 6.15%

Common shares issued (in millions) 299.318 275.418

Allowance for credit losses $2.253 $2.174
Allowance as % of net loans, leases,
and factored accounts receivable 1.81% 2.03%
Allowance for credit losses
as % of nonperforming loans 267.71 254.49
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Nonperforming loans $.841 $.854
Nonperforming assets 0.985 1.075
Nonperforming assets as % of:
Total assets 0.51% 0.58%
Net loans, leases, factored accounts
receivable and other real estate owned .79 1.00

OTHER DATA

Full-time equivalent headcount 61,070 60,722
Banking centers 2,005 1,902
ATMs 2,946 2,182



BUSINESS UNIT RESULTS - Three months ended March 31, 1996
(in millions)


Return on Average Loans
Total Revenue Net Income Equity and Leases,net


General Bank $1,732 70% $386 65% 22% $81,056 65%
Global Finance 555 22% 167 28% 18% 35,207 28%
Financial Services 171 7% 36 6% 13% 7,734 6%



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