<PAGE>
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
January 17, 1996
(Date of earliest event reported)
BankAmerica Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-7377 94-1681731
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
Bank of America Center
555 California Street
San Francisco, California 94104
(Address of principal executive offices) (Zip Code)
415-622-3530
(Registrant's telephone number, including area code)
4063959
<PAGE>
Item 5. Other Events.
Attached hereto as Exhibit 99 is a copy of BankAmerica Corporation's
press release dated January 17, 1996 titled "BankAmerica Fourth Quarter
Earnings."
Item 7. Financial Statements, Pro Forma
Financial Information and Exhibits.
(a) Financial Statements of Businesses Acquired
Not applicable.
(b) Pro Forma Financial Information
Not applicable.
(c) Exhibits
Exhibit
Number Description
99 BankAmerica Corporation press release dated January 17, 1996
titled "BankAmerica Fourth Quarter Earnings."
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.
BANKAMERICA CORPORATION
(Registrant)
Date: January 17, 1996
By /s/ JAMES H. WILLIAMS
---------------------
James H. Williams
Executive Vice President
and Chief Accounting
Officer
4063959 2
<PAGE>
EXHIBIT INDEX
Exhibit Number Description
99 BankAmerica Corporation press release dated
January 17, 1996 titled "BankAmerica
Fourth Quarter Earnings."
4063959
<PAGE>
<PAGE>
Exhibit 99
[BankAmerica Corporation logo appears here]
BankAmerica Corporation News
For release:
Contact: Peter Magnani
(415) 953-2418
BANKAMERICA FOURTH QUARTER EARNINGS
SAN FRANCISCO, January 17, 1996 -- BankAmerica Corporation
(BAC) today reported record earnings per share for 1995 of $6.49,
an increase of 21 percent from $5.36 in 1994. In addition, BAC
earned a record $2,664 million in net income for 1995, up 22
percent from the amount reported in 1994. The return on average
common equity for 1995 was 14.58 percent, an increase of 138
basis points from 1994.
Included in 1995 annual results were fourth-quarter earnings
per share of $1.74, based on quarterly earnings of $704 million.
Earnings per share for the fourth quarter of 1994 were $1.41,
based on quarterly earnings of $591 million.
"The fourth quarter of 1995 capped a very successful year for
BankAmerica Corporation," Chief Executive Officer David A.
Coulter said. "Our two most important performance measures --
earnings per share and return on common equity -- both improved
substantially in 1995. We will continue to focus on these measures
in 1996."
FINANCIAL HIGHLIGHTS
. Net interest income was up $125 million, or 6 percent, from
the amount reported for the fourth quarter of 1994. This
growth was primarily attributable to a $13.3 billion, or
10 percent, increase in average loans, as BAC experienced
broad-based growth in the loan portfolio. BAC's net
interest margin for the fourth quarter was 4.44 percent,
compared with 4.53 percent in the same period a year ago.
- more -
<PAGE>
. Noninterest income increased $110 million from the fourth
quarter of 1994 primarily due to improved results from
trading and venture capital activities of $61 million and
$53 million, respectively. Other income for the fourth
quarter of 1995 included a $36 million gain associated with
the completed components of the previously announced
divestiture of BAC's institutional trust and securities
services business.
. Noninterest expense was unchanged from the fourth quarter of
1994.
. The provision for credit losses was $130 million, compared
with $100 million for the fourth quarter of 1994.
Nonaccrual assets increased $36 million from their September 30,
1995 level, but declined $189 million from year-end 1994.
. In connection with its previously announced stock repurchase
program, BAC repurchased 3.6 million shares of its common
stock during the fourth quarter of 1995 at an average per-
share price of $61.93, which reduced common stockholders'
equity by $222 million. These shares were repurchased on the
open market over 29 trading days and represented
approximately 9 percent of the total volume of BAC common
stock traded on those days. BAC's year-to-date common stock
repurchases under this program totaled 16.6 million shares at
an average per-share price of $53.83, which reduced common
stockholders' equity by $894 million.
(end of text, tables follow)
Look for this earnings report on BankAmerica's home page on
the Internet @ http://www.BankAmerica.com.
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
BankAmerica Corporation's (BAC) financial information set forth in
the following tables reflects the effects of the merger with
Continental Bank Corporation subsequent to its consummation on
August 31, 1994.
Table 1
Summary of Results and Statistical Data
<TABLE>
<CAPTION>
Fourth Third Fourth
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1995 1995 1994
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 704 $ 704 $ 591
2 Earnings per common and common
equivalent share 1.74 1.72 1.41
3 Earnings per common share -
assuming full dilution 1.74 1.72 1.40
Rate of return (based
on net income) on:
4 Average total assets 1.20% 1.21% 1.09%
5 Average common equity 14.96 15.09 13.24
6 Net interest margin/a/ 4.44 4.52 4.53
7 Full-time-equivalent staff
at period end (in thousands) 79.9 80.2 82.1
8 Employees at period
end (in thousands) 95.3 95.5 98.6
<CAPTION>
Year Ended
December 31
-----------------
1995 1994
------ ------
<S> <C> <C>
9 Net income $2,664 $2,176
10 Earnings per common and common
equivalent share 6.49 5.36
11 Earnings per common share -
assuming full dilution 6.45 5.33
Rate of return (based
on net income) on:
12 Average total assets 1.17% 1.08%
13 Average common equity 14.58 13.20
14 Net interest margin/a/ 4.51 4.50
</TABLE>
- -------------------------------------------------------------------------
/a/ The net interest margin is computed on a taxable-equivalent basis.
The taxable-equivalent basis adjustments to net interest
income were $5 million, $7 million, and $7 million for the fourth
quarter of 1995, the third quarter of 1995, and the fourth quarter
of 1994, respectively, and $25 million and $24 million for the years
ended December 31, 1995 and 1994, respectively.
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 2
Stock and Capital Data
<TABLE>
<CAPTION>
(dollar amounts in millions, Dec. 31 Sept. 30 Dec. 31
except per share data) 1995 1995 1994
-------- --------- --------
<S> <C> <C> <C>
1 Book value per common share $47.90 $46.59 $42.63
Common stock cash dividends:
2 Quarter ended 169 171 149
3 Year-to-date 684 515 571
Preferred stock cash dividends:
4 Quarter ended 53 56 67
5 Year-to-date 227 174 248
6 Number of common shares out-
standing (in thousands) 367,447 369,998 371,182
Average number of common and common
equivalent shares outstanding
(in thousands):
7 Quarter ended 374,283 376,643 373,922
8 Year-to-date 375,556 375,980 359,793
Average number of common shares
outstanding - assuming full
dilution (in thousands):
9 Quarter ended 374,669 377,421 379,402
10 Year-to-date 378,103 379,248 365,274
11 Common equity to total assets 7.57% 7.50% 7.34%
12 Total risk-based capital ratio 11.40/a/ 11.47 11.69
13 Tier 1 risk-based capital ratio 7.30/a/ 7.26 7.27
14 Total risk-based capital $ 23,433/a/ $ 23,017 $ 21,953
15 Risk-weighted assets 205,433/a/ 200,664 187,810
16 Tier 1 risk-based capital 14,991/a/ 14,560 13,658
</TABLE>
- ---------------------------------------------------------------------------
/a/ Amounts are preliminary.
===========================================================================
Table 3
Selected Average Balance Sheet Components
<TABLE>
<CAPTION>
Fourth Third Fourth
Quarter Quarter Quarter
(in millions) 1995 1995 1994
-------- -------- --------
<S> <C> <C> <C>
1 Loans $151,896 $148,842 $138,576
2 Earning assets 192,587 190,888 177,819
3 Total assets 232,269 229,909 214,649
4 Deposits 157,300 154,982 153,121
5 Interest-bearing liabilities 158,311 157,348 145,817
6 Common equity 17,239 17,032 15,702
7 Total equity 19,862 19,753 18,982
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 4
Business Sectors
<TABLE>
<CAPTION>
Year Ended December 31, 1995/a/
---------------------------------------------
(dollar amounts Return
in billions except Average Average on Expense
for net income, which Net Total Total Common to
is in millions) Income Assets Deposits Equity Revenue/b/
------ ------ -------- ------ -------
<S> <C> <C> <C> <C> <C>
1 Consumer banking $1,159 $ 84 $ 96 18.56% 59.46%
2 U.S. Corporate and
international banking 873 85 37 13.06 54.89
3 Commercial real estate 330 10 2 25.41 24.48
4 Middle market banking 326 20 8 24.37 47.44
5 Private banking and
investment services 44 4 6 11.44 82.08
6 Other (68) 24 5 (4.78) 112.73
------ ---- ----
7 Total $2,664 $227 $154 14.58% 58.08%
====== ==== ====
<CAPTION>
Year Ended December 31, 1994/a/
--------------------------------------------
Return
Average Average on Expense
Net Total Total Common to
Income Assets Deposits Equity Revenue/b/
------ ------- -------- ------ -------
<S> <C> <C> <C> <C> <C>
8 Consumer banking $ 833 $ 77 $ 99 14.17% 63.26%
9 U.S. Corporate and
international banking 604 69 26 11.08 58.37
10 Commercial real estate 347 10 2 25.79 25.88
11 Middle market banking 265 16 8 22.12 51.50
12 Private banking and
investment services - 4 5 - 97.21
13 Other 127 26 5 4.90 50.65
------ ---- ----
14 Total $2,176 $202 $145 13.20% 60.42%
====== ==== ====
</TABLE>
- ---------------------------------------------------------------------------
/a/ Amounts are preliminary. For comparability purposes, both 1995 and
1994 amounts reflect BAC's business-sector allocation methodologies at
December 31, 1995.
/b/ Excludes net other real estate owned expense and amortization of
intangibles.
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 5
Trading-Related Income
<TABLE>
<CAPTION>
Fourth Third Fourth
Quarter Quarter Quarter
(in millions) 1995/a/ 1995 1994
------- ------- -------
<S> <C> <C> <C>
Trading income:
1 Interest rate $ 20 $ 13 $14
2 Foreign exchange 66 74 43
3 Debt instruments 29 45 (3)
---- ---- ---
4 Total trading income $115 $132 $54
==== ==== ===
Other trading-related income/b/:
5 Interest rate $ 18 $ 7 $(2)
6 Foreign exchange 9 10 1
7 Debt instruments 38 37 21
---- ---- ---
8 Total other trading-related income $ 65 $ 54 $20
==== ==== ====
<CAPTION>
Year Ended
December 31
-----------------
1995/a/ 1994
----- -----
<S> <C> <C>
Trading income:
9 Interest rate $ 67 $ 63
10 Foreign exchange 303 237
11 Debt instruments 157 57
---- ----
12 Total trading income $527 $357
==== ====
Other trading-related income/b/:
13 Interest rate $ 30 $ (3)
14 Foreign exchange 28 7
15 Debt instruments 152 85
---- ----
16 Total other trading-related income $210 $ 89
==== ====
</TABLE>
- --------------------------------------------------------------------------
/a/ Detailed breakouts of total amounts are preliminary.
/b/ Primarily includes the net interest revenue and expense associated
with these contracts.
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 6
Loan Outstandings
<TABLE>
<CAPTION>
Dec. 31 Sept. 30 Dec. 31
(in millions) 1995 1995 1994
-------- --------- --------
<S> <C> <C> <C>
Domestic
Consumer:
1 Residential first mortgages $ 36,572 $ 36,082 $ 33,818
2 Residential junior mortgages 13,777 14,162 13,589
3 Other installment 13,834 12,728 10,598
4 Credit card 9,139 8,622 8,020
5 Other individual lines of credit 1,847 1,816 1,736
6 Other 319 289 403
-------- -------- --------
7 Total consumer 75,488 73,699 68,164
Commercial:
8 Commercial and industrial 32,745 31,896 28,814
9 Loans secured by real estate 10,975 10,776 10,277
10 Construction and development
loans secured by real estate 3,153 3,214 3,616
11 Financial institutions 2,834 2,561 2,872
12 Lease financing 1,927 1,910 1,814
13 Agricultural 1,737 1,591 1,840
14 Loans for purchasing or carrying
securities 1,458 1,236 1,529
15 Other 1,574 1,409 1,623
-------- -------- --------
16 Total commercial 56,403 54,593 52,385
-------- -------- --------
17 Total domestic loans 131,891 128,292 120,549
Foreign
18 Commercial and industrial 15,003 15,314 13,496
19 Banks and other financial
institutions 3,386 2,795 2,516
20 Governments and official
institutions 1,020 1,077 896
21 Other 4,073 3,734 3,455
-------- -------- --------
22 Total foreign loans 23,482 22,920 20,363
-------- -------- --------
23 Total Loans $155,373 $151,212 $140,912
======== ======== ========
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 7
Selected Credit Quality Data
<TABLE>
<CAPTION>
Dec. 31 Sept. 30 Dec. 31
(dollar amounts in millions) 1995 1995 1994
------- -------- -------
<S> <C> <C> <C>
Nonaccrual assets:
1 Commercial and industrial $ 619 $ 683 $ 489
2 Construction and development
loans secured by real estate 462 271 647
3 Commercial loans secured by real
estate 280 329 347
4 Consumer 385 384 382
5 Foreign 145 188 215
------ ------ ------
6 Total nonaccrual assets $1,891/a/ $1,855/a/ $2,080
====== ====== ======
7 Restructured loans $ 113 $ 102 $ 97
8 Loans past due 90 days or more
and still accruing interest/b/ 411 439 436
9 Other real estate owned 492 509 555
10 Allowance for credit losses to
total loans 2.29% 2.42% 2.62%
11 Allowance for credit losses to
total nonaccrual assets 187.93 197.06 177.45
Annualized ratio of net credit
losses to average total loan
outstandings:
12 Quarter ended 0.60 0.40 0.10
13 Year-to-date 0.40 0.33 0.37
</TABLE>
- ---------------------------------------------------------------------------
/a/ Includes $1.4 billion and $1.3 billion at Decmeber 31, 1995 and
September 30, 1995, respectively, of impaired loans that are
accounted for in accordance with Statement of Financial Accounting
Standards No. 114, "Accounting by Creditors for Impairment of a
Loan," as amended, which BAC adopted effective January 1, 1995.
/b/ Includes consumer loans of $354 million, $341 million, and
$292 million at December 31, 1995, September 30, 1995, and
December 31, 1994, respectively.
========================================================================
Table 8
Analysis of Change in Nonaccrual Assets
<TABLE>
<CAPTION>
Fourth Third Second First
Quarter Quarter Quarter Quarter
(in millions) 1995 1995 1995 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
1 Balance, beginning
of period $1,855 $1,962 $1,935 $2,080
Additions:
2 Loans placed on
nonaccrual status 532 392 333 175
Deductions:
3 Sales (21) (8) (1) (5)
4 Restored to
accrual status (70) (151) (86) (92)
5 Foreclosures (32) (55) (11) (15)
6 Charge-offs (92) (35) (42) (19)
7 Other, primarily
payments (281) (250) (166) (189)
------ ------ ------ ------
8 Balance, End
of Period $1,891 $1,855 $1,962 $1,935
====== ====== ====== ======
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 9
Net Credit Losses (Recoveries)
<TABLE>
<CAPTION>
Fourth Third Fourth
Quarter Quarter Quarter
(in millions) 1995 1995 1994
------- ------- -------
<S> <C> <C> <C>
Domestic consumer:
1 Residential first mortgages $ 12 $ 12 $ 12
2 Residential junior mortgages 15 16 16
3 Credit card 93 91 79
4 Other consumer 55 43 36
Domestic commercial:
5 Commercial and industrial 60 6 (10)
6 Loans secured by real estate 4 4 (1)
7 Construction and development
loans secured by real estate 3 (33) (9)
8 Financial institutions, lease
financing, agricultural, and
loans for purchasing or
carrying securities 3 (4) (6)
---- ---- ----
9 Total domestic 245 135 117
10 Foreign (14) 16 (81)
---- ---- ----
11 Total Net Credit Losses $231 $151 $ 36
==== ==== ====
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Consolidated Statement of Operations
<TABLE>
<CAPTION>
Fourth Third Fourth
Quarter Quarter Quarter
(in millions) 1995 1995 1994
------- ------- -------
<S> <C> <C> <C>
Interest Income
1 Loans, including fees $3,287 $3,244 $2,796
2 Interest-bearing deposits in banks 119 115 108
3 Federal funds sold 5 10 11
4 Securities purchased under
resale agreements 147 160 106
5 Trading account assets 200 189 124
6 Available-for-sale and held-to-
maturity securities 313 326 334
------ ------ ------
7 Total interest income 4,071 4,044 3,479
Interest Expense
8 Deposits 1,307 1,262 1,019
9 Federal funds purchased 35 27 15
10 Securities sold under repurchase
agreements 147 154 93
11 Other short-term borrowings 168 162 84
12 Long-term debt 265 272 245
13 Subordinated capital notes 12 11 11
------ ------ ------
14 Total interest expense 1,934 1,888 1,467
------ ------ ------
15 Net interest income 2,137 2,156 2,012
16 Provision for credit losses 130 110 100
------ ------ ------
17 Net interest income after
provision for credit losses 2,007 2,046 1,912
Noninterest Income
18 Deposit account fees 334 329 316
19 Credit card fees 84 82 87
20 Trust fees 72 72 83
21 Other fees and commissions 304 323 304
22 Trading income 115 132 54
23 Net gain (loss) on available-
for-sale securities 7 17 (1)
24 Net gain on sales of assets 29 27 28
25 Venture capital activities 93 54 40
26 Other income 120 121 137
------ ------ ------
27 Total noninterest income 1,158 1,157 1,048
Noninterest Expense
28 Salaries 819 839 785
29 Employee benefits 147 195 179
30 Occupancy 198 185 187
31 Equipment 169 170 160
32 Amortization of intangibles 99 110 107
33 Communications 93 89 86
34 Regulatory fees and related expenses 23 7 76
35 Other expense 418 398 386
------ ------ ------
36 Total noninterest expense 1,966 1,993 1,966
------ ------ ------
37 Income before income taxes 1,199 1,210 994
38 Provision for income taxes 495 506 403
------ ------ ------
39 Net Income $ 704 $ 704 $ 591
====== ====== ======
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Consolidated Statement of Operations
<TABLE>
<CAPTION>
Year Ended
December 31
-----------------
(in millions) 1995 1994
------- -------
<S> <C> <C>
Interest Income
1 Loans, including fees $12,707 $ 9,806
2 Interest-bearing deposits in banks 466 325
3 Federal funds sold 32 55
4 Securities purchased under
resale agreements 618 351
5 Trading account assets 741 473
6 Available-for-sale and held-to-
maturity securities 1,276 1,374
------- -------
7 Total interest income 15,840 12,384
Interest Expense
8 Deposits 4,923 3,337
9 Federal funds purchased 131 27
10 Securities sold under repurchase
agreements 581 351
11 Other short-term borrowings 630 275
12 Long-term debt 1,067 810
13 Subordinated capital notes 46 42
------- -------
14 Total interest expense 7,378 4,842
------- -------
15 Net interest income 8,462 7,542
16 Provision for credit losses 440 460
------- -------
17 Net interest income after
provision for credit losses 8,022 7,082
Noninterest Income
18 Deposit account fees 1,303 1,201
19 Credit card fees 315 331
20 Trust fees 300 285
21 Other fees and commissions 1,269 1,111
22 Trading income 527 357
23 Net gain on available-for-sale
securities 34 24
24 Net gain on sales of assets 71 126
25 Venture capital activities 337 136
26 Other income 390 564
------- -------
27 Total noninterest income 4,546 4,135
Noninterest Expense
28 Salaries 3,309 2,936
29 Employee benefits 718 703
30 Occupancy 738 690
31 Equipment 663 589
32 Amortization of intangibles 428 411
33 Communications 359 323
34 Regulatory fees and related expenses 176 290
35 Other expense 1,610 1,558
------- -------
36 Total noninterest expense 8,001 7,500
------- -------
37 Income before income taxes 4,567 3,717
38 Provision for income taxes 1,903 1,541
------- -------
39 Net Income $ 2,664 $ 2,176
======= =======
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Consolidated Balance Sheet
<TABLE>
<CAPTION>
Dec. 31 Sept. 30 Dec. 31
(in millions) 1995 1995 1994
-------- -------- --------
<S> <C> <C> <C>
Assets
1 Cash and due from banks $ 14,312 $ 12,532 $ 13,578
2 Interest-bearing deposits in banks 5,761 5,832 6,371
3 Federal funds sold 721 229 640
4 Securities purchased under resale
agreements 4,962 6,811 5,259
5 Trading account assets 9,516 9,883 6,941
6 Available-for-sale securities 12,043 9,979 9,849
7 Held-to-maturity securities 4,656 6,927 8,167
8 Loans 155,373 151,212 140,912
9 Less: Allowance for credit losses 3,554 3,655 3,690
-------- -------- --------
10 Net loans 151,819 147,557 137,222
11 Customers' acceptance liability 2,295 2,268 1,069
12 Accrued interest receivable 1,458 1,448 1,449
13 Goodwill, net 4,192 4,263 4,296
14 Identifiable intangibles, net 1,806 2,134 2,149
15 Unrealized gains on off-balance-
sheet instruments 7,801 8,843 6,267
16 Premises and equipment, net 3,985 4,011 3,955
17 Other assets 7,119 7,209 8,263
-------- -------- --------
18 Total Assets $232,446 $229,926 $215,475
======== ======== ========
Liabilities & Stockholders' Equity
Deposits in domestic offices:
19 Interest-bearing $ 84,097 $ 84,345 $ 90,374
20 Noninterest-bearing 36,820 34,231 34,956
Deposits in foreign offices:
21 Interest-bearing 37,886 35,525 27,454
22 Noninterest-bearing 1,691 1,536 1,610
-------- -------- --------
23 Total deposits 160,494 155,637 154,394
24 Federal funds purchased 5,160 3,110 3,283
25 Securities sold under repurchase
agreements 6,383 7,187 5,505
26 Other short-term borrowings 7,627 10,289 5,053
27 Acceptances outstanding 2,295 2,268 1,069
28 Accrued interest payable 848 811 831
29 Unrealized losses on off-balance-
sheet instruments 8,227 9,547 6,571
30 Other liabilities 5,862 5,334 4,450
31 Long-term debt 14,723 15,277 14,823
32 Subordinated capital notes 605 605 605
-------- -------- --------
33 Total liabilities 212,224 210,065 196,584
Stockholders' Equity
34 Preferred stock 2,623 2,623 3,068
35 Common stock 602 600 581
36 Additional paid-in capital 8,328 8,271 7,743
37 Retained earnings 9,606 9,133 7,854
38 Net unrealized loss on available-
for-sale securities 1 (51) (326)
39 Common stock in treasury, at cost (938) (715) (29)
-------- -------- --------
40 Total stockholders' equity 20,222 19,861 18,891
-------- -------- --------
41 Total Liabilities and
Stockholders' Equity $232,446 $229,926 $215,475
======== ======== ========
</TABLE>
<PAGE>
