SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
Date of Report (Date of Earliest Event Reported): July 17, 1995
NATIONSBANK CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
North Carolina 1-6523 56-0906609
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(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
NationsBank Corporate Center, Charlotte, North Carolina 28255
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(Address of Principal Executive Offices) (Zip Code)
(704) 386-5000
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(Registrant's Telephone Number, including Area Code)
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ITEM 5. OTHER EVENTS.
Release of Second Quarter Earnings. On July 17, 1995, the Registrant announced
financial results for the second quarter of fiscal 1995, reporting net income
of $467 million and earnings per common share of $1.71. A copy of the press
release announcing the results of the Registrant's fiscal quarter ended June
30, 1995 is included as Exhibit 99.1 hereto.
ITEM 7. EXHIBITS.
The following exhibit is filed herewith:
Exhibit No. Description of Exhibit
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99.1 Press Release dated July 17, 1995 with respect to the
Registrant's financial results for the fiscal quarter ended
June 30, 1995.
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SIGNATURES
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 hereunto duly authorized.
NATIONSBANK CORPORATION
By: /s/ Marc D. Oken
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Marc D. Oken
Chief Accounting Officer
Dated: July 24, 1995
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EXHIBIT INDEX
Exhibit No. Description of Exhibit
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99.1 Press Release dated July 17, 1995 with respect to the
Registrant's financial results for the fiscal quarter ended
June 30, 1995.
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FOR IMMEDIATE RELEASE EXHIBIT 99.1
NATIONSBANK SECOND QUARTER EARNINGS UP SEVEN PERCENT
CHARLOTTE NC, July 17, 1995 -- NationsBank Corporation today reported second
quarter 1995 net income of $467 million, a seven-percent increase over the $437
million earned in the second quarter of 1994. Earnings per common share for
the second quarter of 1995 rose eight percent to $1.71, compared to $1.58 per
share in the second quarter 1994. Return on average common shareholders'
equity was 16.7 percent for the current quarter.
"This quarter demonstrates the significant earnings power of our company," said
Hugh McColl, chairman and chief executive officer. "Our market position in
growth regions and our focus on meeting customer needs have generated increased
loan volumes and expanded fee income. We are proud to have achieved this
revenue growth with only a modest increase in expenses. Our ongoing cost
control efforts have resulted in a noteworthy improvement in our operating
efficiency. Results this quarter also benefited from recent common share
repurchases, which we view as an attractive use of shareholder capital."
Average loans and leases of $108 billion in the second quarter of 1995 were 17
percent greater than year-earlier levels. This growth was led by increases in
both consumer, primarily residential mortgages, and commercial lending.
Average loans and leases grew $4.1 billion during the second quarter, a
16-percent annualized rate, compared to the first quarter of 1995.
This loan growth led to a $28-million increase in taxable-equivalent net
interest income to $1.37 billion in the second quarter of 1995, compared to the
year-ago quarter. The net interest yield for the second quarter of 1995 was
3.19 percent, down from a yield of 3.70 percent a year ago. The decline in the
net interest yield was driven by a number of factors including the compression
of spreads in the discretionary portfolios, the addition of low spread
trading-related assets and the funding of incremental loan growth largely with
wholesale funds.
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Average deposits in this year's second quarter were $100.6 billion versus $91.4
billion in the year-ago quarter. Core customer-based deposits of $83.9 billion
in the most recent quarter made up 83 percent of total average deposits.
Noninterest income rose 16 percent to $730 million in the second quarter of
1995, compared to the year-ago quarter, driven by growth in deposit fees,
investment banking fees, acquisition-related mortgage servicing fees and
miscellaneous other income.
Noninterest expense of $1.29 billion was flat in the second quarter of 1995,
compared to the first quarter of 1995. Compared to the second quarter of 1994,
noninterest expense increased five percent, however the efficiency ratio
improved 87 basis points to 61.5 percent. Investment in personnel,
particularly in the Capital Markets and Financial Products areas, increased
equipment expense, and additional spending on marketing programs accounted for
most of the expense increase.
Total nonperforming assets fell by $322 million, or 23 percent, versus levels
at June 30, 1994. Total nonperforming assets stood at $1.10 billion on June
30, 1995, or .99 percent of net loans, leases and factored receivables, and
other real estate owned. This compared to nonperforming assets of $1.42
billion on June 30, 1994, or 1.48 percent of net levels.
Net charge-offs were $83 million, or .31 percent of average net loans, leases
and factored receivables, in the most recent quarter, versus $64 million, or
.27 percent of average levels, in last year's second quarter. The allowance
for credit losses totaled $2.16 billion at June 30, 1995 and equaled 1.95
percent of net loans, leases and factored receivables. The allowance
represented 239 percent of nonperforming loans at June 30, 1995, versus 234
percent at June 30, 1994.
Provision expense in the second quarter of 1995 was $70 million, the same level
as one year ago. Other real estate owned expense was $1 million in the second
quarter of 1995, compared to a net recovery of $3 million in the year-ago
quarter.
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Total shareholders' equity rose 10 percent from year-ago levels to $11.5
billion on June 30, 1995. This represented 6.25 percent of period-end assets.
Book value per common share increased 12.5 percent to $42.49 on June 30, 1995,
compared to June 30, 1994. Common shares outstanding at June 30, 1995 were
269.8 million compared to 276.5 million one year ago and down approximately six
million shares from 275.4 million shares at March 31, 1995, due to common share
repurchases. Total market capitalization was $14.5 billion at June 30, 1995.
Quarterly common dividends paid per share increased nine percent in the second
quarter to $.50 from $.46 per share in the second quarter of 1994.
Tier 1 and total risk-based capital ratios of 7.03 percent and 10.90 percent,
respectively, and a leverage ratio of 5.65 percent all compared favorably with
regulatory guidelines at June 30, 1995.
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 June 30, 1995, NationsBank had
total assets of $184 billion.
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<TABLE>
NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
<CAPTION>
THREE MONTHS SIX MONTHS
ENDED JUNE 30 ENDED JUNE 30
1995 1994 1995 1994
<S> <C> <C> <C> <C>
FINANCIAL SUMMARY
(In millions except per-share data)
Net income $467 $437 $910 $854
Earnings per common share 1.71 1.58 3.31 3.10
Fully diluted earnings
per common share 1.70 1.57 3.28 3.07
Average common shares issued 271.717 275.020 274.053 273.492
Average fully diluted common
shares issued 275.431 279.127 277.788 277.497
Price per share of common
stock at period end $53 5/8 $51 3/8 $53 5/8 $51 3/8
Common dividends paid 136 126 274 253
Common dividends paid per share .50 .46 1.00 .92
Preferred dividends paid 2 2 4 5
EARNINGS SUMMARY (Taxable-equivalent in millions)
Net interest income $1,367 $1,339 $2,702 $2,649
Provision for credit losses (70) (70) (140) (170)
Gains on sales of securities 4 5 5 19
Noninterest income 730 629 1,456 1,309
Other real estate owned expense (1) 3 (3) (2)
Noninterest expense (1,288) (1,228) (2,576) (2,447)
Income before income taxes 742 678 1,444 1,358
Income taxes - including
FTE adjustment* (275) (241) (534) (504)
Net income $467 $437 $910 $854
*FTE adjustment $31 $22 $59 $44
AVERAGE BALANCE SHEET SUMMARY (In billions)
Loans and leases, net $107.924 $92.605 $105.886 $92.109
Securities held for investment 17.457 14.009 17.552 13.365
Securities available for sale 10.730 14.829 9.238 14.688
Total securities 28.187 28.838 26.790 28.053
Earning assets 171.942 145.091 165.083 144.416
Total assets 194.302 161.989 185.955 161.643
Noninterest-bearing deposits 21.077 20.241 20.533 20.070
Interest-bearing deposits 79.492 71.117 79.397 70.741
Total deposits 100.569 91.358 99.930 90.811
Shareholders' equity 11.213 10.272 11.202 10.177
Common shareholders' equity 11.180 10.247 11.169 10.109
OTHER FINANCIAL DATA
Net interest yield 3.19% 3.70% 3.30% 3.69%
Return on average assets .96 1.08 .99 1.07
Return on average common
shareholders' equity 16.69 17.04 16.36 16.93
Gross charge-offs (in millions) $140 $117 $274 $263
Net charge-offs (in millions) 83 64 166 154
% of average loans, leases and
factored accounts receivable, net .31% .27% .31% .33%
</TABLE>
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<TABLE>
<CAPTION>
JUNE 30
1995 1994
<S> <C> <C>
BALANCE SHEET SUMMARY (In billions)
Loans and leases, net $109.802 $94.622
Securities held for investment 14.452 14.026
Securities available for sale 12.563 14.376
Total securities 27.015 28.402
Factored accounts receivable 1.121 1.056
Mortgage servicing rights .667 .108
Goodwill, core deposit and
other intangibles 1.483 1.299
Total assets 184.188 164.398
Noninterest-bearing deposits 22.098 20.447
Interest-bearing deposits 78.508 71.797
Total deposits 100.606 92.244
Shareholders' equity 11.504 10.473
Common shareholders' equity 11.465 10.443
Per common share (not in billions) 42.49 37.77
RISK-BASED CAPITAL
Tier 1 capital $9.804 $9.237
Tier 1 capital ratio 7.03% 7.63%
Total capital $15.205 $14.013
Total capital ratio 10.90% 11.57%
Leverage ratio 5.65% 6.38%
Common shares issued (in millions) 269.812 276.517
Allowance for credit losses $2.164 $2.196
Allowance as % of net loans, leases
and factored accounts receivable 1.95% 2.30%
Allowance for credit losses
as % of nonperforming loans 239.09 234.48
Nonperforming loans $.905 $.936
Nonperforming assets 1.099 1.421
Nonperforming assets as % of:
Total assets .60% .86%
Net loans, leases, factored accounts
receivable and other real estate owned .99 1.48
OTHER DATA
Full-time equivalent headcount 59,633 59,127
Banking centers 1,855 1,915
</TABLE>
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<TABLE>
BUSINESS UNIT RESULTS - Three months ended June 30, 1995
(in millions)
<CAPTION>
Return on Average Loans
Total Revenue Net Income Equity and Leases, net
<S> <C> <C> <C> <C> <C> <C> <C>
General Bank $1,447 69% $290 62% 19% $67,045 62%
Global Finance 505 24 143 31 15 34,216 32
Financial Services 142 7 30 6 13 7,152 7
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