SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April 19, 1999
BANKAMERICA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
1-6523
(Commission File Number)
56-0906609
(IRS Employer Identification No.)
100 North Tryon Street
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 First Quarter Earnings. On April 19, 1999, BankAmerica
---------------------------------
Corporation, the registrant (the "Registrant"), announced financial results for
the first quarter of fiscal 1999, reporting earnings of $1.91 billion and
earnings per common share of $1.10 ($1.08 diluted). A copy of the press release
announcing the results of the Registrant's fiscal quarter ended March 31, 1999
is filed as Exhibit 99.1 to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
The following exhibits are filed herewith:
EXHIBIT NO. DESCRIPTION OF EXHIBIT
99.1 Press Release dated April 19, 1999 with respect to the
Registrant's financial results for the fiscal quarter
ended March 31, 1999.
<PAGE>
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 hereunto duly authorized.
BANKAMERICA CORPORATION
By: /s/ MARC D. OKEN
-----------------------------
Marc D. Oken
Executive Vice President and
Principal Financial Executive
Dated: April 23, 1999
<PAGE>
EXHIBIT INDEX
Exhibit No. Description of Exhibit
- ----------- ----------------------
99.1 Press Release dated April 19, 1999 with respect to the
Registrant's financial results for the fiscal quarter
ended March 31, 1999.
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
April 19, 1999
Contact: Investors Susan Carr (704-386-8059) or Kevin Stitt (704-386-5667)
Media Bob Stickler or Ricke Beebe (704-386-8465)
BANKAMERICA EARNS $1.9 BILLION, OR $1.08 PER DILUTED SHARE, IN FIRST QUARTER
CHARLOTTE, NC, April 19, 1999 - BankAmerica Corporation today reported net
income of $1.91 billion, or $1.10 ($1.08 diluted) per share, for the first
quarter of 1999, a 44 percent increase from net income of $1.33 billion, or $.77
($.75 diluted) per share, a year earlier. The first quarter a year ago included
a merger-related charge of $642 million after tax. Excluding that charge,
operating income a year ago was $1.97 billion, or $1.14 ($1.11 diluted) per
share. First quarter 1999 earnings grew significantly from fourth quarter 1998
operating earnings of $1.60 billion, or $.92 ($.91 diluted) per share.
The return on common equity was 16.8 percent and the return on assets was 1.27
percent.
Cash earnings - which exclude the amortization of intangibles -- were $2.14
billion, or $1.23 ($1.20 diluted) per share in the latest quarter. Return on
average tangible common shareholders' equity was 27.4 percent.
more
<PAGE>
Page 2
"We are pleased with our first quarter results, which include continued strong
performance in Consumer Banking and a significant improvement in Global
Corporate and Investment Banking," said Hugh L. McColl, Jr., BankAmerica
chairman and chief executive officer. "Our merger transition is on track, and we
expect the benefits of lower costs and enhanced revenue opportunities to
positively impact earnings in the coming quarters."
First Quarter Earnings (compared to a year ago)
- -----------------------------------------------
Lower expenses -- primarly due to merger-related savings -- stronger trading
results and continued solid loan growth were offset by lower other income,
investment banking revenue and securities gains.
Net Interest Income
- -------------------
Fully taxable-equivalent net interest income of $4.65 billion was virtually
unchanged from a year earlier, as loan and deposit growth and deposit pricing
initiatives offset the impact of asset securitizations, loan sales and spread
compression. Average managed loans grew 11 percent to $385 billion, reflecting
increases in both consumer and business loans. The net yield on earning assets
declined by 23 basis points to 3.58 percent due to a higher level of investment
securities and lower loan and deposit spreads.
Noninterest Income
- ------------------
Noninterest income declined 8 percent to $3.22 billion, reflecting lower other
income and investment banking revenue. Trading results were up from last
year's strong performance. Credit card income and deposit fees also rose.
Investment banking results, despite continuing improvements over recent
quarters, remained below last year's strong performance.
Securities gains of $130 million were significantly below the $213 million
recorded in the first quarter of 1998.
Efficiency
- ----------
Noninterest expense decreased by more than 5 percent to $4.45 billion, reflect-
ing cost reductions resulting from recent mergers somewhat offset by continued
spending on transition projects associated with the merger of NationsBank and
BankAmerica. Personnel expense dropped by more than 4 percent, and other
operating expenses were also reduced. The efficiency ratio was 57 percent, an
improvement from 58 percent a year earlier.
more
<PAGE>
Page 3
Credit Quality
- --------------
The provision for credit losses in the first quarter was $510 million, the same
as a year earlier. Net charge-offs remained virtually flat from a year ago at
$519 million, equal to .58 percent of loans and leases, a 3-basis-point improve-
ment from a year ago.
Nonperforming assets were $3.12 billion, or .86 percent of loans, leases and
foreclosed properties on March 31, 1999, compared to $2.69 billion, or .79
percent a year earlier. The allowance for credit losses totaled $7.12 billion on
March 31, 1999, equal to 251 percent of nonperforming loans and 1.96 percent of
loans and leases. The allowance was $6.76 billion, or 1.98 percent of loans and
leases, a year earlier.
Capital Strength
- ----------------
Total shareholders' equity rose 4 percent to $46.8 billion at March 31, 1999.
This represented 7.62 percent of period-end assets, compared to 7.77 percent on
March 31, 1998. Book value per common share rose 4 percent from a year earlier
to $26.86 at March 31, 1999.
Business Segment Results
- ------------------------
Consumer Banking, which serves individuals and small businesses, earned $873
million, while Commercial Banking, which serves companies with from $10
million to $500 million in revenue, earned $197 million. Together, they
represented 56 percent of the company's net income. Global Corporate and
Investment Banking, which serves large corporate customers, earned $492
million, representing 26 percent of the company's earnings. Principal Investing
and Wealth Management, which encompasses the private bank, trust,
investment management, mutual funds, retail brokerage and principal
investing, earned $209 million, representing 11 percent.
more
<PAGE>
Page 4
BankAmerica Corporation, with $614 billion in total assets, is the largest bank
in the United States. It has full-service operations in 22 states and the
District of Columbia and provides financial products and services to 30 million
households and 2 million businesses, as well as providing international
corporate financial services for business transactions in 190 countries.
BankAmerica Corporation stock (ticker: BAC) is listed on the New York, Pacific
and London stock exchanges and certain shares are listed on the Tokyo Stock
Exchange.
www.nationsbank.com
www.bankamerica.com
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
Three Months
Ended March 31
------------------------------
Financial Summary 1999 1998
- ----------------- ---------- ------------
<S> <C> <C>
(In millions, except per-share
data)
Operating net income $ 1,914 $ 1,973
Operating earnings per common share 1.10 1.14
Diluted operating earnings per common share 1.08 1.11
Cash basis earnings(1) 2,136 2,201
Cash basis earnings per common share 1.23 1.27
Cash basis diluted earnings per common share 1.20 1.24
Dividends paid per common share .45 .38
Price per share of common stock at period end 70.63 72.94
Average common shares 1,737.562 1,724.490
Average diluted common shares
1,779.708 1,773.015
Summary Income Statement (Operating Basis)
- ------------------------------------------
(Taxable-equivalent in millions)
Net interest income $ 4,645 $ 4,659
Provision for credit losses (510) (510)
Gains on sales of securities 130 213
Noninterest income 3,223 3,493
Other noninterest expense (4,453) (4,704)
----------- ------------
Income before income taxes 3,035 3,151
Income taxes - including FTE adjustment 1,121 1,178
----------- ------------
Operating net income $ 1,914 $ 1,973
=========== ============
Summary Balance Sheet
- ---------------------
(Average balances in billions)
Loans and leases $ 360,746 $ 341,970
Managed loans and leases(2) 384,933 347,451
Securities 75,830 65,787
Earning assets 523,682 493,821
Total assets 609,624 578,841
Deposits 345,931 339,867
Shareholders' equity 46,279 43,628
Common shareholders' equity 46,208 42,953
Performance Indices (Operating Basis)
- -------------------------------------
Return on average common shareholders' equity 16.78 % 18.52 %
Return on average tangible common shareholders'
equity 27.44 32.57
Return on average assets 1.27 1.38
Return on average tangible assets 1.46 1.59
Net interest yield 3.58 3.81
Efficiency ratio 56.59 57.72
Cash basis efficiency ratio 53.76 54.92
Net charge-offs (in millions) $ 519 $ 516
% of average loans and leases .58 % .61 %
Managed credit card net charge-offs as a % of
average managed credit card receivables 6.01 6.78
Reported Results (Including Merger-Related
Charges)
- ------------------------------------------
(In millions, except per-share data)
Net income $ 1,914 $ 1,331
Earnings per common share 1.10 .77
Diluted earnings per common share 1.08 .75
Return on average common shareholders' equity 16.78 12.46
</TABLE>
(1) Cash basis earnings equal operating net income excluding amortization of
intangibles.
(2) Prior periods are restated for comparison (e.g. acquisitions, divestitures
and securitizations).
(3) Ratios and amounts for 1998 have not been restated to reflect the impact of
the BankAmerica merger.
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION (Continued)
March 31
------------------------------
1999 1998
---------- ------------
<S> <C> <C>
Balance Sheet Highlights
- ------------------------
(In billions, except per-share data)
Loans and leases $ 363,102 $ 341,219
Securities 78,469 67,325
Earning assets 529,980 493,428
Total assets 614,245 580,211
Deposits 343,317 344,447
Shareholders' equity 46,831 45,104
Common shareholders' equity 46,761 44,430
Per share 26.86 25.72
Total equity to assets ratio (period-end) 7.62 % 7.77 %
Risk-based capital(3)
Tier 1 capital ratio 7.40 6.80
Total capital ratio 11.17 11.19
Leverage ratio(3) 6.47 5.64
Common shares issued and outstanding (in millions) 1,740.872 1,727.746
Allowance for credit losses $ 7,123 $ 6,763
Allowance for credit losses as a % of loans and
leases 1.96 % 1.98 %
Allowance for credit losses as a % of non-
performing loans 250.99 279.44
Nonperforming loans $ 2,838 $ 2,420
Nonperforming assets 3,120 2,690
Nonperforming assets as a % of:
Total assets .51 % .46 %
Loans, leases and foreclosed properties .86 .79
Other Data
- ----------
Full-time equivalent headcount 166,422 179,607
Banking centers 4,676 5,010
ATMs 14,229 14,630
<CAPTION>
BUSINESS SEGMENT RESULTS
Three months ended March 31, 1999
(In millions)
Return on
Operating Average Loans Risk-Adjusted
Total Revenue Net Income and Leases Equity
------------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Consumer Banking $ 4,317 $ 873 $ 176,513 19%
Commercial Banking 717 197 55,585 17
Global Corporate and Investment Banking 2,040 492 112,121 16
Principal Investing and Wealth Management Group 685 209 18,214 29
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
Consolidated Financial Highlights
(Excludes Merger-Related Charges)
- -----------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions Except Per-Share Information, Shares in Millions)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
1999 1998 1998 1998 1998
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net income $ 1,914 $ 1,603 $ 893 $ 2,021 $ 1,973
Cash basis earnings 2,136 1,825 1,117 2,248 2,201
Earnings per common share 1.10 .92 .51 1.16 1.14
Diluted earnings per common share 1.08 .91 .50 1.13 1.11
Cash basis earnings per common share 1.23 1.05 .64 1.29 1.27
Cash basis diluted earnings per common share 1.20 1.04 .63 1.25 1.24
Dividends per common share .45 .45 .38 .38 .38
Average common shares issued 1,737.562 1,731.314 1,740.092 1,732.168 1,724.490
Average diluted common shares 1,779.708 1,763.055 1,784.418 1,784.712 1,773.015
Period-end common shares issued 1,740.872 1,724.484 1,742.038 1,735.233 1,727.746
Period-end managed loans and leases* $ 387,936 $ 382,693 $ 370,696 $ 357,505 $ 347,517
Average managed loans and leases* 384,933 376,798 361,382 351,617 347,451
*Prior periods restated for comparison (e.g. acquisitions, divestitures and securitizations).
Performance ratios:
Return on average assets 1.27% 1.05% .61% 1.41% 1.38%
Return on average tangible assets 1.46 1.22 .79 1.61 1.59
Return on average common shareholders' equity 16.78 14.12 7.73 18.24 18.52
Return on average tangible common shareholders' equity 27.44 23.97 14.51 31.23 32.57
Efficiency ratio 56.59 64.16 66.55 57.38 57.72
Cash basis efficiency ratio 53.76 61.12 63.28 54.65 54.92
Net interest yield 3.58 3.58 3.60 3.80 3.81
Book value per common share $ 26.86 $ 26.60 $ 27.12 $ 26.88 $ 25.72
Market price per share of common stock:
High for the period 74 1/2 66 5/8 88 7/16 85 75 1/8
Low for the period 59 1/2 44 47 7/8 72 1/16 56 1/4
Closing price 70 5/8 60 1/8 53 1/2 76 11/16 72 15/16
Other data:
Number of banking centers 4,676 4,708 4,870 4,866 5,010
Number of ATMs 14,229 14,327 14,333 14,691 14,630
Full-time equivalent employees 166,422 170,975 174,844 178,729 179,607
<CAPTION>
BUSINESS SEGMENT RESULTS - FIRST QUARTER 1999
Return on
Average Loans Risk-Adjusted
Total Revenue Net Income and Leases Equity
------------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Consumer Banking $4,317 55% $873 46% $176,513 49% 19%
Commercial Banking 717 9 197 10 55,585 15 17
Global Corporate and Investment Banking 2,040 26 492 26 112,121 31 16
Principal Investing and Wealth Management Group 685 9 209 11 18,214 5 29
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
CONSOLIDATED STATEMENT OF OPERATING INCOME
(Excludes Merger-Related Charges)
- -----------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions, Except Per-Share Information)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
1999 1998 1998 1998 1998
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans and leases $ 6,770 $ 7,030 $ 7,084 $ 7,105 $ 7,112
Interest and dividends on securities 1,175 1,191 1,105 1,077 1,129
Federal funds sold and securities
purchased under agreements to resell 381 486 492 433 417
Trading account securities 545 612 584 692 738
Other interest income 330 319 343 330 309
-----------------------------------------------------------
Total interest income 9,201 9,638 9,608 9,637 9,705
-----------------------------------------------------------
Interest expense
Deposits 2,313 2,598 2,830 2,690 2,693
Borrowed funds 1,354 1,422 1,278 1,229 1,310
Trading account liabilities 129 165 194 262 274
Long-term debt 805 844 862 830 809
-----------------------------------------------------------
Total interest expense 4,601 5,029 5,164 5,011 5,086
-----------------------------------------------------------
Net interest income 4,600 4,609 4,444 4,626 4,619
Provision for credit losses 510 510 1,405 495 510
-----------------------------------------------------------
Net credit income 4,090 4,099 3,039 4,131 4,109
Gains on sales of securities 130 404 280 120 213
Noninterest income
Service charges on deposit accounts 855 881 855 844 816
Mortgage servicing and other mortgage-related income 132 103 (93) 207 172
Investment banking income 388 356 376 664 613
Trading account profits and fees 500 96 (529) 232 372
Brokerage income 184 162 198 188 180
Other nondeposit-related service fees 136 150 163 164 175
Asset management and fiduciary service fees 243 229 238 261 245
Credit card income 360 398 379 352 319
Other income 425 280 818 724 601
-----------------------------------------------------------
Total noninterest income 3,223 2,655 2,405 3,636 3,493
-----------------------------------------------------------
Other noninterest expense
Personnel 2,333 2,301 2,246 2,425 2,440
Occupancy, net 396 413 427 421 382
Equipment 358 384 346 334 340
Marketing 147 135 143 145 158
Professional fees 126 233 206 209 195
Amortization of intangibles 222 223 224 227 228
Data processing 190 205 195 186 179
Telecommunications 136 152 142 138 131
Other general operating 420 493 510 528 513
General administrative and miscellaneous 125 148 144 154 138
-----------------------------------------------------------
Total other noninterest expense 4,453 4,687 4,583 4,767 4,704
-----------------------------------------------------------
Income before income taxes 2,990 2,471 1,141 3,120 3,111
Income tax expense 1,076 868 248 1,099 1,138
-----------------------------------------------------------
Net income $ 1,914 $ 1,603 $ 893 $ 2,021 $ 1,973
-----------------------------------------------------------
Net income available to common shareholders $ 1,912 $ 1,602 $ 891 $ 2,010 $ 1,962
-----------------------------------------------------------
Per-share information
Earnings per common share $ 1.10 $ .92 $ .51 $ 1.16 $ 1.14
-----------------------------------------------------------
Diluted earnings per common share $ 1.08 $ .91 $ .50 $ 1.13 $ 1.11
-----------------------------------------------------------
Dividends per common share $ .45 $ .45 $ .38 $ .38 $ .38
-----------------------------------------------------------
Average common shares issued and outstanding (in thousands) 1,737,562 1,731,314 1,740,092 1,732,168 1,724,490
-----------------------------------------------------------
Average diluted common shares issued and outstanding (in thousands) 1,779,708 1,763,055 1,784,418 1,784,712 1,773,015
-----------------------------------------------------------
Certain prior period amounts have been reclassified to conform to current period classifications.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
CONSOLIDATED BALANCE SHEET
- ------------------------------------------------------------------------------------------------------
(Dollars in Millions)
March 31 December 31 March 31
1999 1998 1998
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 25,925 $ 28,277 $ 28,641
Time deposits placed and other short-term investments 5,615 6,750 7,578
Securities
Securities held for investment 1,522 1,997 4,673
Available for sale 76,947 78,590 62,652
------------ ------------ ------------
Total securities 78,469 80,587 67,325
------------ ------------ ------------
Federal funds sold and securities
purchased under agreements to resell 26,751 27,146 24,280
Trading account assets 42,382 39,602 41,608
Derivative-dealer assets 13,585 16,400 13,263
Loans and leases 363,102 357,328 341,219
Allowance for credit losses (7,123) (7,122) (6,763)
------------ ------------ ------------
Loans and leases, net of allowance for credit
losses 355,979 350,206 334,456
------------ ------------ ------------
Premises and equipment, net 7,129 7,289 7,918
Customers' acceptance liability 2,194 2,671 4,463
Interest receivable 3,620 3,734 3,591
Mortgage servicing rights 3,037 2,376 2,174
Goodwill 12,651 12,695 13,402
Core deposit and other intangibles 1,942 2,013 2,218
Other assets 34,966 37,933 29,294
------------ ------------ ------------
Total assets $ 614,245 $ 617,679 $ 580,211
============ ============ ============
LIABILITIES
Deposits in domestic offices
Interest-bearing $ 201,343 $ 203,644 $ 201,920
Noninterest-bearing 87,769 92,623 86,973
Deposits in foreign offices
Interest-bearing 52,457 59,280 53,820
Noninterest-bearing 1,748 1,713 1,734
------------ ------------ ------------
Total deposits 343,317 357,260 344,447
------------ ------------ ------------
Federal funds purchased and securities
sold under agreements to repurchase 74,767 67,543 63,245
Trading account liabilities 16,454 14,170 18,653
Derivative-dealer liabilities 14,372 16,835 12,270
Commercial paper 8,379 6,749 5,501
Other short-term borrowings 31,366 24,742 18,957
Acceptances outstanding 2,194 2,671 4,463
Accrued expenses and other liabilities 20,712 30,929 19,020
Trust preferred securities 4,954 4,954 4,918
Long-term debt 50,899 45,888 43,633
------------ ------------ ------------
Total liabilities 567,414 571,741 535,107
------------ ------------ ------------
SHAREHOLDERS' EQUITY
Preferred stock 81 83 705
Common stock: authorized - 5,000,000,000 shares; issued
and outstanding 1,740,871,815; 1,724,484,305 and
1,727,746,398 shares 15,828 14,837 15,114
Retained earnings 32,128 30,998 29,160
Accumulated other comprehensive income (580) 152 281
Other (626) (132) (156)
------------ ------------ ------------
Total shareholders' equity 46,831 45,938 45,104
------------ ------------ ------------
Total liabilities and shareholders' equity $ 614,245 $ 617,679 $ 580,211
============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
QUARTERLY TAXABLE-EQUIVALENT DATA
- -------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
First Quarter 1999 Fourth Quarter 1998
---------------------------- ----------------------------
Average Average
Balance Income Balance Income
Sheet or Yields/ Sheet or Yields/
Amounts Expense Rates Amounts Expense Rates
------- ------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Earning assets
Loans and leases (1)
Commercial - domestic $138,272 $ 2,444 7.16% $136,629 $ 2,542 7.39%
Commercial - foreign 31,568 494 6.35 32,893 569 6.86
Commercial real estate - domestic 26,827 559 8.45 28,427 601 8.38
Commercial real estate - foreign 286 6 8.79 319 8 9.39
------------------------------------------------------------
Total commercial 196,953 3,503 7.21 198,268 3,720 7.45
------------------------------------------------------------
Residential mortgage 75,789 1,356 7.18 73,033 1,336 7.30
Home equity lines 15,537 298 7.79 15,781 326 8.17
Direct/Indirect consumer 41,652 847 8.24 40,557 876 8.57
Consumer finance 15,880 373 9.53 14,368 338 9.33
Bankcard 11,287 327 11.76 12,078 366 12.01
Foreign consumer 3,648 89 9.90 3,551 94 10.47
------------------------------------------------------------
Total consumer 163,793 3,290 8.11 159,368 3,336 8.32
------------------------------------------------------------
Total loans and leases 360,746 6,793 7.62 357,636 7,056 7.84
------------------------------------------------------------
Securities
Held for investment 1,905 33 6.84 2,948 44 6.09
Available for sale (2) 73,925 1,161 6.31 69,354 1,162 6.68
------------------------------------------------------------
Total securities 75,830 1,194 6.33 72,302 1,206 6.66
------------------------------------------------------------
Federal funds sold and securities purchased
under agreements to resell 26,561 381 5.80 29,564 486 6.53
Time deposits placed and other short-term
investments 6,408 88 5.58 6,702 111 6.56
Trading account securities 41,129 547 5.36 39,391 613 6.19
Other earning assets 13,008 243 7.53 11,471 207 7.19
------------------------------------------------------------
Total earning assets (3) 523,682 9,246 7.13 517,066 9,679 7.44
------------------------------------------------------------
Cash and cash equivalents 25,826 25,834
Other assets, less allowance for credit losses 60,116 63,641
------------------------------------------------------------
Total assets $609,624 $606,541
------------------------------------------------------------
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $ 21,637 71 1.33 $ 21,702 91 1.67
NOW and money market deposit accounts 99,864 575 2.33 97,589 622 2.53
Consumer CDs and IRAs 74,362 857 4.68 74,923 956 5.06
Negotiated CDs, public funds and other
time deposits 6,914 89 5.20 7,388 96 5.16
------------------------------------------------------------
Total domestic interest-bearing
deposits 202,777 1,592 3.18 201,602 1,765 3.47
------------------------------------------------------------
Foreign interest-bearing deposits (4)
Banks located in foreign countries 20,379 268 5.34 24,938 325 5.17
Governments and official institutions 9,172 113 5.02 10,278 143 5.54
Time, savings, and other 26,980 339 5.10 26,868 365 5.39
------------------------------------------------------------
Total foreign interest-bearing
deposits 56,531 720 5.17 62,084 833 5.32
------------------------------------------------------------
Total interest-bearing deposits 259,308 2,312 3.62 263,686 2,598 3.91
------------------------------------------------------------
Federal funds purchased, securities sold
under agreements to repurchase and other
short-term borrowings 112,384 1,355 4.88 104,416 1,422 5.40
Trading account liabilities 12,679 129 4.13 14,194 165 4.62
Long-term debt (5) 52,642 805 6.12 51,779 844 6.52
------------------------------------------------------------
Total interest-bearing liabilities(6) 437,013 4,601 4.26 434,075 5,029 4.60
------------------------------------------------------------
Noninterest-bearing sources
Noninterest-bearing deposits 86,623 88,080
Other liabilities 39,709 39,335
Shareholders' equity 46,279 45,051
------------------------------------------------------------
Total liabilities and shareholders'
equity $609,624 606,541
------------------------------------------------------------
Net interest spread 2.87 2.84
Impact of noninterest-bearing sources 0.71 .74
------------------------------------------------------------
Net interest income/yield on earning assets $ 4,645 3.58% $ 4,650 3.58%
------------------------------------------------------------
(1) Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is
recognized on a cash basis.
(2) The average balance sheet amounts and yields on securities available for sale are based on the average of historical amortized
cost balances.
(3) Interest income includes taxable-equivalent adjustments of $45 in the first quarter of 1999 and $41, $40, $42 and $40 in the
fourth, third, second and first quarters of 1998, respectively. Interest income also includes the impact of risk management
interest rate contracts, which increased interest income on the underlying linked assets $63 in the first quarter of 1999 and
$70, $46, $29, and $29 in the fourth, third, second and first quarters of 1998, respectively.
(4) Primarily consists of time deposits in denominations of $100,000 or more.
(5) Long-term debt includes trust preferred securities.
(6) Interest expense includes the impact of risk management interest rate contracts, which decreased interest expense on the
underlying linked liabilities $60 in the first quarter of 1999 and $27, $9, $4, and $5 in the fourth, third, second and first
quarters of 1998, respectively.
<PAGE>
<CAPTION>
- -------------------------------------------------------------------------------------------
Third Quarter 1998 Second Quarter 1998 First Quarter 1998
- --------------------------- --------------------------- ---------------------------
Average Average Average
Balance Income Balance Income Balance Income
Sheet or Yields/ Sheet or Yields/ Sheet or Yields/
Amounts Expense Rates Amounts Expense Rates Amounts Expense Rates
- ------- ------- ------- -------- ------- ------- ------- ------- -------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
$132,537 $ 2,538 7.59% $127,788 $ 2,496 7.84% $123,586 $ 2,413 7.91%
31,245 578 7.35 30,046 556 7.41 29,840 543 7.37
28,027 610 8.64 28,228 644 9.15 29,000 648 9.06
338 8 10.51 334 9 9.82 327 8 10.48
- -------------------------------------------------------------------------------------------
192,147 3,734 7.71 186,396 3,705 7.97 182,753 3,612 8.01
- -------------------------------------------------------------------------------------------
70,619 1,155 6.53 69,337 1,171 6.76 70,350 1,218 6.95
16,024 485 12.03 16,271 473 11.64 16,448 457 11.28
39,582 854 8.56 40,404 895 8.90 40,280 880 8.85
14,197 385 10.76 14,249 387 10.88 14,662 419 11.60
12,751 399 12.43 12,780 409 12.83 14,259 464 13.19
3,465 93 10.57 3,350 87 10.53 3,218 83 10.46
- -------------------------------------------------------------------------------------------
156,638 3,371 8.56 156,391 3,422 8.77 159,217 3,521 8.94
- -------------------------------------------------------------------------------------------
348,785 7,105 8.09 342,787 7,127 8.34 341,970 7,133 8.44
- -------------------------------------------------------------------------------------------
4,286 76 6.99 4,525 79 7.03 4,713 83 7.09
61,250 1,046 6.82 58,527 1,017 6.95 61,074 1,061 6.98
- -------------------------------------------------------------------------------------------
65,536 1,122 6.83 63,052 1,096 6.96 65,787 1,144 6.99
- -------------------------------------------------------------------------------------------
27,646 492 7.06 25,275 433 6.86 26,632 417 6.35
7,483 138 7.31 7,916 129 6.54 8,517 136 6.48
35,487 587 6.59 42,421 693 6.56 41,868 740 7.14
10,974 204 7.42 10,494 201 7.68 9,047 175 7.76
- -------------------------------------------------------------------------------------------
495,911 9,648 7.73 491,945 9,679 7.89 493,821 9,745 7.98
- -------------------------------------------------------------------------------------------
24,160 25,071 24,558
58,282 56,959 60,462
- -------------------------------------------------------------------------------------------
$578,353 $573,975 $578,841
- -------------------------------------------------------------------------------------------
$ 22,775 107 1.87 $ 23,208 112 1.93 $ 23,096 111 1.95
95,276 634 2.64 96,605 638 2.65 96,696 642 2.70
74,313 984 5.25 74,002 983 5.29 75,393 992 5.33
8,696 120 5.45 8,388 117 5.63 5,917 81 5.53
- -------------------------------------------------------------------------------------------
201,060 1,845 3.64 202,203 1,850 3.66 201,102 1,826 3.68
- -------------------------------------------------------------------------------------------
27,892 418 5.95 22,393 326 5.84 23,067 336 5.91
11,084 156 5.59 10,629 150 5.64 10,067 141 5.69
24,086 411 6.77 22,592 364 6.49 23,467 390 6.70
- -------------------------------------------------------------------------------------------
63,062 985 6.20 55,614 840 6.07 56,601 867 6.20
- -------------------------------------------------------------------------------------------
264,122 2,830 4.25 257,817 2,690 4.18 257,703 2,693 4.24
- -------------------------------------------------------------------------------------------
84,283 1,278 6.02 82,385 1,229 5.98 91,358 1,310 5.82
15,454 194 4.97 19,817 262 5.30 20,516 274 5.43
51,365 862 6.71 49,254 830 6.74 47,416 809 6.83
- -------------------------------------------------------------------------------------------
415,224 5,164 4.94 409,273 5,011 4.90 416,993 5,086 4.93
- -------------------------------------------------------------------------------------------
83,661 84,552 82,164
33,712 35,293 36,056
45,756 44,857 43,628
- -------------------------------------------------------------------------------------------
$578,353 $573,975 $578,841
- -------------------------------------------------------------------------------------------
2.79 2.99 3.05
.81 .81 .76
- -------------------------------------------------------------------------------------------
$ 4,484 3.60% $ 4,668 3.80% $ 4,659 3.81%
- -------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
CREDIT QUALITY - NONPERFORMING ASSETS
- ------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
March 31, December 31, September 30, June 30, March 31,
1999 1998 1998 1998 1998
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nonperforming loans:
Commercial - domestic $ 1,085 $ 812 $ 717 $ 646 $ 762
Commercial - foreign 434 314 288 347 272
Commercial real estate - domestic 272 299 303 306 355
Commercial real estate - foreign 3 4 3 3 3
Residential mortgage 634 722 690 669 733
Home equity lines 41 50 46 45 53
Direct/Indirect consumer 20 21 38 33 35
Consumer finance 332 246 209 187 200
Foreign consumer 17 14 - 8 7
------------------------------------------------------------------------
Total nonperforming loans 2,838 2,482 2,294 2,244 2,420
Foreclosed properties 282 282 288 282 270
------------------------------------------------------------------------
Total nonperforming assets $ 3,120 $ 2,764 $ 2,582 $ 2,526 $ 2,690
------------------------------------------------------------------------
Loans past due 90 days or more and not
classified as nonperforming $ 571 $ 611 $ 540 $ 539 $ 534
Nonperforming assets as a percentage of:
Total assets .51% .45% .43% .44% .46%
Loans, leases and
foreclosed properties .86 .77 .73 .73 .79
Foreclosed properties expense $ 10 $ 3 $ 7 $ 25 $ 10
- ------------------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets by Business Segment:
Consumer Banking $ 1,381 $ 1,348 $ 1,298 $ 973 $ 1,029
Commercial Banking 572 438 436 379 500
Global Corporate Investment Banking 1,099 934 818 901 866
Principal Investing and Wealth Management
Group 66 40 28 25 21
Other 2 4 2 248 274
------------------------------------------------------------------------
Total nonperforming assets $ 3,120 $ 2,764 $ 2,582 $ 2,526 $ 2,690
------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
CREDIT QUALITY - LOAN LOSSES
- -----------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
1999 1998 1998 1998 1998
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Gross charge-offs:
Commercial - domestic $ 206 $ 137 $ 450 $ 74 $ 53
Commercial - foreign 30 66 107 53 36
Commercial real estate - domestic 2 3 5 10 3
Residential mortgage 7 9 8 6 10
Home equity lines 6 6 6 7 8
Bankcard 172 185 192 219 261
Direct/Indirect consumer 140 153 125 138 146
Consumer finance 98 116 147 139 159
Other consumer domestic - (1) 1 - -
Foreign consumer 5 5 2 3 3
-----------------------------------------------------------------------------
Total $ 666 $ 679 $ 1,043 $ 649 $ 679
-----------------------------------------------------------------------------
Net charge-offs:
Commercial - domestic $ 181 $ 113 $ 427 $ 50 $ 27
Commercial - foreign 29 65 106 51 20
Commercial real estate - domestic (2) - (1) 6 (5)
Residential mortgage 5 8 8 4 9
Home equity lines 4 3 3 5 6
Bankcard 155 164 170 197 233
Direct/Indirect consumer 95 113 87 98 107
Consumer finance 48 76 98 92 117
Other consumer domestic - (1) 1 - -
Foreign consumer 4 3 3 2 2
-----------------------------------------------------------------------------
Total $ 519 $ 544 $ 902 $ 505 $ 516
-----------------------------------------------------------------------------
Loss ratios:
Commercial - domestic .53% .33% 1.27% .15% .09%
Commercial - foreign .37 .78 1.35 .68 .28
Commercial real estate - domestic (.02) - (.02) .09 (.07)
Residential mortgage .03 .04 .04 .03 .05
Home equity lines .10 .07 .09 .11 .15
Bankcard** 5.63 5.49 5.42 6.36 6.77
Direct/Indirect consumer .93 1.09 .89 .96 1.08
Consumer finance 1.22 2.11 2.74 2.59 3.23
Other consumer domestic - - - - -
Foreign consumer .43 .42 .25 .28 .27
Total .58 .60 1.03 .59 .61
Loss Ratios by Business Segment:
Consumer Banking .75% 1.01% .92% .98% 1.14%
Commercial Banking .19 .40 .06 .11 .10
Global Corporate and Investment Banking .55 .35 1.81 .28 .08
Principal Investing and Wealth
Management Group .24 .01 .02 .01 -
Other (.69) 44.42 (1.41) (1.83) (3.61)
Allowance for credit losses $(7,123) $(7,122) $(7,215) $(6,731) $(6,763)
Allowance for credit losses as a
percentage of loans and leases 1.96% 1.99% 2.05% 1.95% 1.98%
- -----------------------------------------------------------------------------------------------------------------------
* Managed Bankcard receivable net
charge-offs $ 294 $ 301 $ 312 $ 331 $ 340
** Managed Bankcard portfolio loss ratios 6.01% 5.83% 5.99% 6.52% 6.78%
Average Managed Bankcard receivables $19,814 $20,526 $20,657 $20,350 $20,357
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
CAPITAL
- ----------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
1999 1998 1998 1998 1998
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Beginning common equity $ 45,866 $ 47,245 $ 46,646 $ 44,430 $ 43,907
Net income 1,914 1,162 374 2,298 1,331
Dividends (784) (778) (606) (611) (609)
Common stock issued 350 19 407 441 526
Common stock repurchased - (1,151) - - (600)
Change in FAS 115 adjustment-net
unrealized gains (losses) (703) (625) 381 104 (103)
Foreign currency translation
adjustment and other 118 (6) 43 (16) (22)
--------------------------------------------------------------------------------
Ending common equity 46,761 45,866 47,245 46,646 44,430
--------------------------------------------------------------------------------
Preferred equity 70 72 62 63 674
--------------------------------------------------------------------------------
Total shareholders' equity $ 46,831 $ 45,938 $ 47,307 $ 46,709 $ 45,104
--------------------------------------------------------------------------------
FAS 115 adjustment - end of period (400) 303 928 547 443
Total equity as a percentage of total assets 7.62% 7.44% 7.96% 8.17% 7.77%
Common equity as a percentage of total assets 7.61 7.43 7.94 8.16 7.66
Risk-based capital ratios (1):
Tier 1 capital $ 38,522 $ 36,849 $ 37,456 $ 18,764 $ 17,188
Tier 1 capital ratio 7.40% 7.06% 7.29% 7.32% 6.80%
Total capital $ 58,132 $ 57,055 $ 57,758 $ 30,268 $ 28,286
Total capital ratio 11.17% 10.94% 11.25% 11.77% 11.19%
Leverage ratio (1) 6.47 6.22 6.64 6.21 5.64
Risk-weighted assets, net (1) $ 520,396 $ 521,637 $ 513,544 $ 257,193 $ 252,694
(1) Ratios and amounts for all periods prior to the third quarter of 1998 have not been restated to reflect the impact of the
BankAmerica merger.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Operating Results including Merger-Related Charges)
- --------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions, Except Per-Share Information)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
1999 1998 1998 1998 1998
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans and leases $ 6,770 $ 7,030 $ 7,084 $ 7,105 $ 7,112
Interest and dividends on securities 1,175 1,191 1,105 1,077 1,129
Federal funds sold and securities
purchased under agreements to resell 381 486 492 433 417
Trading account securities 545 612 584 692 738
Other interest income 330 319 343 330 309
-----------------------------------------------------------
Total interest income 9,201 9,638 9,608 9,637 9,705
-----------------------------------------------------------
Interest expense
Deposits 2,313 2,598 2,830 2,690 2,693
Borrowed funds 1,354 1,422 1,278 1,229 1,310
Trading account liabilities 129 165 194 262 274
Long-term debt 805 844 862 830 809
-----------------------------------------------------------
Total interest expense 4,601 5,029 5,164 5,011 5,086
-----------------------------------------------------------
Net interest income 4,600 4,609 4,444 4,626 4,619
Provision for credit losses 510 510 1,405 495 510
-----------------------------------------------------------
Net credit income 4,090 4,099 3,039 4,131 4,109
Gains on sales of securities 130 404 280 120 213
Noninterest income
Service charges on deposit accounts 855 881 855 844 816
Mortgage servicing and other mortgage-related income 132 103 (93) 207 172
Investment banking income 388 356 376 664 613
Trading account profits and fees 500 96 (529) 232 372
Brokerage income 184 162 198 188 180
Other nondeposit-related service fees 136 150 163 164 175
Asset management and fiduciary service fees 243 229 238 261 245
Credit card income 360 398 379 352 319
Other income 425 280 818 724 601
-----------------------------------------------------------
Total noninterest income 3,223 2,655 2,405 3,636 3,493
-----------------------------------------------------------
Merger-related charges - 600 725 (430) 900
Other noninterest expense
Personnel 2,333 2,301 2,246 2,425 2,440
Occupancy, net 396 413 427 421 382
Equipment 358 384 346 334 340
Marketing 147 135 143 145 158
Professional fees 126 233 206 209 195
Amortization of intangibles 222 223 224 227 228
Data processing 190 205 195 186 179
Telecommunications 136 152 142 138 131
Other general operating 420 493 510 528 513
General administrative and miscellaneous 125 148 144 154 138
-----------------------------------------------------------
Total other noninterest expense 4,453 4,687 4,583 4,767 4,704
-----------------------------------------------------------
Income before income taxes 2,990 1,871 416 3,550 2,211
Income tax expense 1,076 709 42 1,252 880
-----------------------------------------------------------
Net income $ 1,914 $ 1,162 $ 374 $ 2,298 $ 1,331
-----------------------------------------------------------
Net income available to common shareholders $ 1,912 $ 1,161 $ 372 $ 2,287 $ 1,320
-----------------------------------------------------------
Per-share information
Earnings per common share $ 1.10 $ .67 $ .21 $ 1.32 $ .77
-----------------------------------------------------------
Diluted earnings per common share $ 1.08 $ .66 $ .21 $ 1.28 $ .75
-----------------------------------------------------------
Dividends per common share $ .45 $ .45 $ .38 $ .38 $ .38
-----------------------------------------------------------
Average common shares issued and outstanding (in thousands) 1,737,562 1,731,314 1,740,092 1,732,168 1,724,490
-----------------------------------------------------------
Average diluted common shares issued and outstanding (in thousands) 1,779,708 1,763,055 1,784,418 1,784,712 1,773,015
-----------------------------------------------------------
Certain prior period amounts have been reclassified to conform to current period classifications.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION
COUNTRY RISK REPORTING
- -----------------------------------------------------------------------------------------------------------------------------------
Binding Exposure by Region, Country of Risk and Category
(Dollars in Millions) Total Increase Increase
Net Revaluation Binding (Decrease) (Decrease)
Gains on Securities/ Exposure from from
Trade Other Derivatives Other March 31, December 31, December 31,
Region/Country Finance(a) Financing(b) FX Products Investments 1999 1998 1997
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Asia
China $ 26 $ 319 $ 44 $ 54 $ 443 $ (6) $ (322)
Hong Kong 150 4,602 42 139 4,933 (255) (698)
India 10 2,007 53 374 2,444 (74) (55)
Indonesia 2 560 55 60 677 (46) (833)
Japan 72 1,776 1,145 1,025 4,018 (1,043) (2,952)
Korea (South) 609 859 54 330 1,852 (27) (1,952)
Malaysia 25 671 12 61 769 41 (485)
Pakistan 77 188 20 11 296 (56) (254)
Philippines 68 335 4 37 444 (139) (319)
Singapore 10 1,521 41 184 1,756 (250) (656)
Taiwan 21 2,120 15 38 2,194 (96) (244)
Thailand 12 606 119 117 854 (96) (1,103)
Other 24 130 - 4 158 5 (39)
----------- ------------ ------------- ----------- ----------- ----------- -----------
Total 1,106 15,694 1,604 2,434 20,838 (2,042) (9,912)
Central and Eastern Europe
Russia Federation - 34 - 10 44 (16) (403)
Other 37 456 9 107 609 (95) (89)
----------- ------------ ------------- ----------- ----------- ----------- -----------
Total 37 490 9 117 653 (111) (492)
Latin America
Argentina 17 898 4 323 1,242 (25) (401)
Brazil 867 1,320 1 1,066 3,254 (164) (376)
Chile 17 1,320 23 58 1,418 (233) (262)
Colombia 14 514 11 40 579 (219) (206)
Mexico 227 3,116 55 1,179 4,577 (361) (1,535)
Venezuela 71 218 - 228 517 (40) (106)
Other 256 43 3 92 394 (36) (49)
----------- ------------ ------------- ----------- ----------- ----------- -----------
Total 1,469 7,429 97 2,986 11,981 (1,078) (2,935)
----------- ------------ ------------- ----------- ----------- ----------- -----------
Total $ 2,612 $ 23,613 $ 1,710 $ 5,537 $ 33,472 $ (3,231) $(13,339)
----------- ------------ ------------- ----------- ----------- ----------- -----------
(a) Includes extensions of credit with maturities of one year or less that are directly related to imports or exports
and will be liquidated through the proceeds of international trade. Such extensions of credit may include acceptances,
pre-export financing where there is a firm export sales order, commercial letters of credit, as well as other loans and
advances directly related to international trade.
(b) This category includes time deposits placed and extensions of credit that do not meet the criteria for Trade Finance.
</TABLE>
