<PAGE>
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): April 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 First Quarter Earnings. On April 17, 1995, the Registrant announced
financial results for the first quarter of fiscal 1995, reporting net income of
$443 million and earnings per common share of $1.60. A copy of the press
release announcing the results of the Registrant's fiscal quarter ended March
31, 1995 is filed as Exhibit 99.1 to this Current Report on Form 8-K.
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ITEM 7. EXHIBITS.
The following exhibit is filed herewith:
Exhibit No. Description of Exhibit
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99.1 Press Release dated April 17,
1995 with respect to the Registrant's
financial results for the fiscal
quarter ended March 31, 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: April 25, 1995
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EXHIBIT INDEX
Exhibit No. Description of Exhibit
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99.1 Press Release dated April 17,
1995 with respect to the Registrant's
financial results for the fiscal
quarter ended March 31, 1995.
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
NATIONSBANK REPORTS 6% EARNINGS GROWTH IN FIRST QUARTER 1995
CHARLOTTE NC, April 17, 1995 -- NationsBank Corporation today reported first
quarter 1995 net income of $443 million, a six-percent increase over the $417
million earned in the first quarter of 1994. Earnings per common share for the
first quarter of 1995 rose five percent to $1.60, compared to $1.52 per share
in the first quarter 1994. Return on common shareholders' equity was 16.0
percent for the current quarter.
"This quarter represents an excellent start to the year. Strong loan growth
continued to drive earnings growth, along with increasing fee income," said
Hugh McColl, chairman and chief executive officer.
Average loans and leases of $103.8 billion in the first quarter of 1995 were
more than 13 percent greater than year-earlier levels. This growth was led by
increases in commercial lending, excluding real estate, and continued strength
in consumer lending, primarily residential mortgage. Average loans and leases
grew $4.1 billion during the quarter, a 17-percent annualized rate, compared to
the fourth quarter of 1994.
This loan growth more than offset the declining spreads on the discretionary
asset portfolios, leading to an increase in net interest income to $1.34
billion, up $25 million in the first quarter of 1995 compared to the year-ago
quarter. The net interest yield for the first quarter of 1995 was 3.41
percent, down from a yield of 3.69 percent a year ago. This decline was a
result of the spread compression between the yield on investment securities and
market-based funding costs.
Average deposits in this year's first quarter were $99.3 billion versus $90.3
billion in the year-ago quarter. Core customer-based deposits of $83.8 billion
in the most recent quarter made up 84 percent of total deposits.
Noninterest income rose seven percent to $726 million in the first quarter of
1995, compared to the year-ago quarter, driven by growth in deposit fees,
investment banking revenue, and acquisition-related mortgage servicing fees.
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Noninterest expense totaled $1.29 billion in the first quarter of 1995,
compared to $1.22 billion in the first quarter of 1994. Investment in
personnel, particularly in the Capital Markets and Financial Products areas,
and additional spending on marketing programs accounted for most of the
increase.
Noninterest income and noninterest expense reflected increases in
brokerage-related amounts due to the total ownership of NationsSecurities.
Total nonperforming assets fell by $561 million, or 34 percent, versus levels
at March 31, 1994. This decline primarily reflected payments resulting from
the improved financial condition of borrowers and the results of the
Corporation's continuing loan workout activities. Total nonperforming assets
stood at $1.08 billion on March 31, 1995, or 1.00 percent of net loans, leases
and factored receivables, and other real estate owned. This compared to
nonperforming assets of $1.64 billion on March 31, 1994, or 1.73 percent of net
levels.
Net charge-offs were $83 million, or .32 percent of average net loans, leases
and factored receivables, in the most recent quarter, versus $90 million, or
.39 percent of average levels, in last year's first quarter. The allowance for
credit losses totaled $2.17 billion at March 31, 1995 and equaled 2.03 percent
of net loans, leases and factored receivables. The allowance represented 254
percent of nonperforming loans at March 31, 1995, versus 205 percent at March
31, 1994.
Provision expense in the first quarter of 1995 was $70 million, compared to the
first quarter 1994 level of $100 million. Other real estate owned expense was
$2 million in the first quarter of 1995, versus $5 million in the year-ago
quarter.
On March 31, 1995, total earning assets were $166 billion, of which net loans
and leases were $106 billion and securities were $27 billion.
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Total shareholders' equity rose 12 percent from year-ago levels to $11.3
billion on March 31, 1995. This represented 6.17 percent of period-end assets.
Book value per common share increased 11 percent to $41.07 on March 31, 1995,
compared to the year-ago quarter. Common shares outstanding at March 31, 1995
were 275.4 million compared to 274.5 million one year ago and down one million
shares from 276.5 million shares at December 31, 1994, due to share
repurchases. Total market capitalization was $14.0 billion at March 31, 1995.
Quarterly common dividends paid per share increased nine percent in the first
quarter to $.50 from $.46 per share in the first quarter of 1994.
Tier 1 and total risk-based capital ratios of 7.25 percent and 11.06 percent,
respectively, and a leverage ratio of 6.15 percent all compared favorably with
regulatory guidelines at March 31, 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 March 31, 1995, NationsBank
had total assets of $184 billion.
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<TABLE>
NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
<CAPTION>
THREE MONTHS
ENDED MARCH 31
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1995 1994
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<S> <C> <C>
FINANCIAL SUMMARY
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(In millions except per-share data)
Net income $443 $417
Earnings per common share 1.60 1.52
Fully diluted earnings per common share 1.58 1.51
Average common shares issued 276.415 271.947
Average fully diluted common shares issued 279.997 275.725
Price per share of common stock
at period end $50 3/4 $45 3/4
Common dividends paid 138 127
Common dividends paid per share 0.50 0.46
Preferred dividends paid 2 3
EARNINGS SUMMARY
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(Taxable-equivalent in millions)
Net interest income $1,335 $1,310
Provision for credit losses (70) (100)
Gains on sales of securities 1 14
Noninterest income 726 680
Other real estate owned expense (2) (5)
Noninterest expense (1,288) (1,219)
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Income before income taxes 702 680
Income taxes - including FTE adjustment* (259) (263)
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Net income $443 $417
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*FTE adjustment $28 $22
AVERAGE BALANCE SHEET SUMMARY
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(In billions)
Loans and leases, net $103.827 $91.608
Securities held for investment 17.648 12.714
Securities available for sale 7.728 14.545
Total securities 25.376 27.259
Earning assets 158.149 143.734
Total assets 177.515 161.294
Noninterest-bearing deposits 19.984 19.897
Interest-bearing deposits 79.301 70.363
Total deposits 99.285 90.260
Shareholders' equity 11.192 10.080
Common shareholders' equity 11.158 9.971
OTHER FINANCIAL DATA
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Net interest yield 3.41% 3.69%
Return on average assets 1.01 1.05
Return on average common
shareholders' equity 16.03 16.82
Gross charge-offs (in millions) $134 $146
Net charge-offs (in millions) 83 90
% of average loans, leases and
factored accounts receivable, net 0.32% 0.39%
</TABLE>
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<TABLE>
<CAPTION>
MARCH 31
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1995 1994
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<S> <C> <C>
BALANCE SHEET SUMMARY
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(In billions)
Loans and leases, net $105.704 $92.130
Securities held for investment 17.546 14.442
Securities available for sale 8.962 15.927
Total securities 26.508 30.369
Earning assets 165.549 148.506
Factored accounts receivable 1.224 1.637
Total intangibles 2.212 1.389
Total assets 183.854 165.071
Noninterest-bearing deposits 20.264 20.172
Interest-bearing deposits 80.479 70.584
Total deposits 100.743 90.756
Shareholders' equity 11.346 10.172
Common shareholders' equity 11.312 10.146
Per common share (not in billions) 41.07 36.96
Risk-based capital
Tier 1 capital $9.727 $8.819
Tier 1 capital ratio 7.25% 7.50%
Total capital $14.841 $13.707
Total capital ratio 11.06% 11.66%
Leverage ratio 6.15% 6.11%
Common shares issued (in millions) 275.418 274.537
Allowance for credit losses $2.174 $2.187
Allowance as % of net loans, leases,
and factored accounts receivable 2.03% 2.33%
Allowance for credit losses
as % of nonperforming loans 254.49 205.04
Nonperforming loans $0.854 $1.067
Nonperforming assets 1.075 1.636
Nonperforming assets as % of:
Total assets 0.58% 0.99%
Net loans, leases, factored accounts
receivable and other real estate owned 1.00 1.73
OTHER DATA
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Full-time equivalent headcount 60,722 58,122
Banking centers 1,902 1,938
</TABLE>
<TABLE>
<CAPTION>
AVERAGE FOR THREE MONTHS
ENDED MARCH 31
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1995 1994
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<S> <C> <C>
COMPOSITION OF LOAN PORTFOLIO
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Commercial 44% 44%
Real estate:
Commercial 7 9
Construction 3 4
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Total real estate 10 13
Consumer 20 21
Residential mortgage 17 15
Credit card 4 4
Lease financing 3 2
Foreign 2 1
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Total loans and leases 100% 100%
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</TABLE>
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