SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 3 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
January 17, 1995
NATIONSBANK CORPORATION
(Exact name of registrant as specified in its charter)
North Carolina
(State of Incorporation)
1-6523
(Commission File Number)
56-0906609
(IRS Employer Identification No.)
NationsBank Corporate Center
Charlotte, North Carolina
(Address of principal executive offices)
28255
(Zip Code)
(704) 386-5000
Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
Release of Fiscal Year Earnings. On January 17, 1995, the
Registrant announced financial results reporting net income for
the 1994 fiscal year of $1.7 billion or $6.12 per common share.
A copy of the press release announcing the results of the
Registrant's 1994 fiscal year ended December 31, 1994 is filed as
Exhibit 99.1 to this Current Report.
Item 7. Exhibits.
The following exhibit is filed herewith:
Exhibit No. Description
99.1 Press release dated January 17, 1995
with respect to the Registrant's
financial results for the fiscal
year ended December 31, 1994.
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
NATIONSBANK CORPORATION
By:\s\ MARC D. OKEN
Marc D. Oken
Executive Vice President and
Chief Accounting Officer
January 26, 1995
FOR IMMEDIATE RELEASE
NATIONSBANK REPORTS 31% EARNINGS GROWTH IN 1994
CHARLOTTE NC, January 17, 1995 -- NationsBank Corporation today
reported 1994 net income of $1.7 billion, a 31-percent increase
over the $1.3 billion earned from operations in 1993, before the
change in accounting for income taxes. Earnings per common share
for 1994 rose 22 percent to $6.12, compared to $5.00 per share in
1993 and return on common shareholders' equity rose to 16.10
percent, compared to 15.00 percent last year. After adjusting for
the first-quarter 1993 accounting change of $200 million, or $.78
per share, 1993 net income was $1.5 billion, or $5.78 per common
share.
For the fourth quarter of 1994, net income rose nine percent to
$405 million, compared to $373 million in the fourth quarter of
1993. Earnings per common share in the fourth quarter of 1994
increased seven percent to $1.46, from $1.37 per common share in
1993.
"After having rapidly built a large, diverse financial institution,
our 1994 results demonstrate our ability to successfully run the
company," said Hugh McColl, chairman and chief executive officer.
"Our 22-percent growth in earnings per share is a significant
accomplishment given the challenging environment driven
by changes in our customers, competitors, regulators, interest
rates and the economy.
<PAGE>
"These earnings are a reflection of our excellent revenue growth,
resulting from strong loan growth and increased fee income. In
addition, continued improvement in our operating efficiency and
further reductions in credit costs enhanced earnings for the year.
During 1994, we made important strides in improving the
profitability of NationsBank and we will continue taking actions to
increase the value of our shareholders' investment."
The 1994 results include the full impact of several acquisitions
made throughout 1993 and the partial impact of acquisitions made
during 1994. Thus, the annual growth comparisons reflect not only
internal growth but the impact of these acquisitions.
Average loans and leases of $95 billion in 1994 grew 20 percent
over year-earlier levels. Excluding acquisitions over the last
year and the fourth-quarter 1993 securitization of bank card
assets, average loans and leases grew 12 percent from 1993. This
growth was driven by an 18-percent increase in average consumer
loans, primarily residential mortgage and bank card loans, and a
nine-percent increase in commercial loans.
Average deposits in 1994 were $93.7 billion versus $83.5 billion a
year ago, reflecting the impact of 1993 and 1994 acquisitions.
Core customer-based deposits of $84.2 billion made up 90 percent of
this year's total.
Net interest income on a taxable-equivalent basis grew 12 percent
in 1994 to $5.3 billion. Strong loan growth coupled with
disciplined loan and deposit pricing more than offset the adverse
impact of higher short-term interest rates producing this increase
in net interest income. The net interest yield in 1994 was 3.58
percent, compared to 3.96 percent last year. The decline in net
interest yield reflected a narrowing of the spread between
investment securities and market-based funds and higher trading
asset levels of the Corporation's primary government securities
dealer.<PAGE>
Noninterest income rose 24 percent to $2.6 billion in 1994. After
adjusting for acquisitions, noninterest income rose 11 percent on
a year-over-year basis, driven by increased fees from investment
banking, deposit servicing, and trading.
1994 results included $13 million of losses on the sale of
securities, compared to securities gains of $84 million in 1993.
Noninterest expense totaled $4.9 billion in 1994 compared to $4.3
billion in the prior year. After adjusting for acquisitions,
noninterest expense rose slightly more than two percent on a
year-over-year basis. Investment in personnel, particularly in the
Capital Markets area, added to expenses, while efforts were
implemented to reduce spending on general operating and
administrative expenses.
Credit quality indicators showed further substantial improvement
throughout 1994 due to a strengthening economy, increased
recoveries and improving commercial real estate markets. Total
nonperforming assets fell by $645 million, or 36 percent, versus
levels at December 31, 1993. Total nonperforming assets stood at
$1.1 billion on December 31, or 1.10 percent of net loans, leases
and factored receivables, and other real estate owned. This
compared to nonperforming assets of $1.8 billion on December 31,
1993, or 1.92 percent of net levels.
Net charge-offs declined to $316 million, or .33 percent of average
net loans, leases and factored receivables, in 1994, from $412
million, or .51 percent of average levels in 1993. The allowance
for credit losses totaled $2.2 billion at year-end 1994 and equaled
2.11 percent of net loans, leases and factored receivables. The
allowance represented 273 percent of nonperforming loans at
December 31, 1994, up dramatically from 193 percent at year-end
1993.<PAGE>
As a result of these improving credit quality trends, provision
expense in 1994 declined to $310 million, well below the 1993 level
of $430 million. In 1994, there was a net recovery of $12 million
in the other real estate owned category, versus an expense of $78
million in 1993, with the decrease primarily due to improving real
estate markets in the Mid-Atlantic region.
On December 31, 1994, total earning assets were $152 billion, of
which net loans and leases were $102 billion and securities were
$26 billion.
Total shareholders' equity climbed 10 percent in 1994 to $11.0
billion on December 31. This represented 6.49 percent of year-end
assets. Book value per common share rose nine percent to
$39.70 on December 31, 1994. Common dividends paid per share for
the calendar year 1994 increased 15 percent to $1.88 from $1.64 per
share in 1993. Total market capitalization was $12.5 billion at
year-end 1994.
Tier 1 and total risk-based capital ratios of 7.43 percent and
11.47 percent, respectively, and a leverage ratio of 6.18 percent
all compared favorably with regulatory guidelines at December 31,
1994.
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 and consumer finance offices in 31 states. As of December
31, 1994, NationsBank had total assets of $170 billion.
NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
THREE MONTHS FOR THE YEAR
ENDED DECEMBER 31 ENDED DECEMBER 31
1994 1993 1994 1993
FINANCIAL SUMMARY
(In millions except per-share data)
Income before effect of change in
method of accounting for
income taxes $405 $373 $1690 $1301
Net income 405 373 1690 1501
Earnings per common share
before effect of change in
method of accounting for
income taxes 1.46 1.37 6.12 5.00
Earnings per common share 1.46 1.37 6.12 5.78
Fully diluted earnings per
common share before effect
of change in method of
accounting for income taxes 1.45 1.36 6.06 4.95
Fully diluted earnings
per common share 1.45 1.36 6.06 5.72
Average common shares
issued 275.735 269.679 274.656 257.969
Average fully diluted common
shares issued 279.242 273.832 278.573 262.453
Price per share of common
stock at period end $45 1/8 $49 $45 1/8 $49
Common dividends paid 138 114 517 423
Common dividends paid per
share .50 .42 1.88 1.64
Preferred dividends paid 2 3 10 10
EARNINGS SUMMARY (Taxable-equivalent in millions)
Net interest income $1326 $1326 $5305 $4723
Provision for credit
losses (70) (100) (310) (430)
Gains(losses)on sales
of securities (28) - (13) 84
Noninterest income 639 615 2597 2101
Other real estate owned
expense 8 (22) 12 (78)
Restructuring expense - - - (30)
Noninterest expense (1261) (1222) (4942) (4293)
Income before income
taxes and effect of
change in method of
accounting for income
taxes 614 597 2649 2077
Income taxes - including
FTE adjustment* (209) (224) (959) (776)
Income before effect of
change in method of
accounting for
income taxes 405 373 1690 1301
Effect of change in method
of accounting for income
taxes --- --- --- 200
Net income $405 $373 $1690 $1501
*FTE adjustment $26 $23 $94 $86
AVERAGE BALANCE SHEET SUMMARY (In billions)
Loans and leases, net $99.764 $89.147 $95.006 $78.984
Securities held for
investment 17.966 27.273 15.048 24.823
Securities available for
sale 8.560 2.211 12.386 1.017
Total securities 26.526 29.484 27.434 25.840
Earning assets 155.107 139.657 148.381 119.182
Total assets 174.554 157.790 166.319 134.400
Noninterest-bearing
deposits 20.452 19.852 20.097 17.425
Interest-bearing deposits 78.122 70.486 73.640 66.046
Total deposits 98.574 90.338 93.737 83.471
Shareholders' equity 10.906 9.669 10.484 8.651
Common shareholders' equity 10.877 9.554 10.435 8.606
OTHER FINANCIAL DATA
Net interest yield 3.40pct. 3.77pct. 3.58pct. 3.96pct.
Return on average assets
before effect of change
in method of accounting
for income taxes .92 .94 1.02 .97
Return on average assets .92 .94 1.02 1.12
Return on average common
shareholders' equity
before effect of change
in method of accounting
for income taxes 14.68 15.34 16.10 15.00
Return on average common
shareholders' equity 14.68 15.34 16.10 17.33
Gross charge-offs
(in millions) $155 $196 $533 $609
Net charge-offs
(in millions) 98 136 316 412
Pct. of average loans,
leases and factored
accounts receivable,
net .38pct. .60pct. .33pct. .51pct.
DECEMBER 31
1994 1993
BALANCE SHEET SUMMARY (In billions)
Loans and leases, net $102.367 $91.006
Securities held for investment 17.800 13.584
Securities available for sale 8.025 15.470
Total securities 25.825 29.054
Earning assets 151.722 140.890
Factored accounts receivable 1.004 1.001
Total intangibles 1.712 1.367
Total assets 169.604 157.686
Noninterest-bearing deposits 21.380 20.723
Interest-bearing deposits 79.090 70.390
Total deposits 100.470 91.113
Shareholders' equity 11.011 9.979
Common shareholders' equity 10.976 9.859
Per common share (not in
billions) 39.70 36.39
RISK-BASED CAPITAL
Tier 1 capital $ 9.511 $8.535
Tier 1 capital ratio 7.43pct. 7.41pct.
Total capital $14.681 $13.505
Total capital ratio 11.47pct. 11.73pct.
Leverage ratio 6.18 6.00
Common shares issued(in millions) 276.452 270.905
Allowance for credit losses $2.186 $2.169
Allowance as pct. of net loans, leases,
and factored accounts receivable 2.11pct. 2.36pct.
Allowance for credit losses
as pct. of nonperforming loans 273.07 193.38
Nonperforming loans $.801 $1.122
Nonperforming assets 1.138 1.783
Nonperforming assets as pct. of:
Total assets .67pct. 1.13pct.
Net loans, leases, factored accounts
receivable and other real estate owned 1.10 1.92
Full-time equivalent headcount 61,484 57,742
Banking centers 1,929 1,930
