<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
April 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 April 17, 1996 titled
"BankAmerica First 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 April 17,
1996 titled "BankAmerica First 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: April 17, 1996
By /s/ JAMES H. WILLIAMS
-----------------------------
James H. Williams
Executive Vice President
and Chief Accounting
Officer
4063959 2
<PAGE>
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
------- -----------
99 BankAmerica Corporation press release dated
April 17, 1996 titled "BankAmerica First Quarter
Earnings."
4063959
<PAGE>
Exhibit 99
[BankAmerica Corporation logo appears here]
News
For release:
BankAmerica Corporation
Contact: Peter Magnani
(415) 953-2418
BANKAMERICA FIRST QUARTER EARNINGS
SAN FRANCISCO, April 17, 1996 -- BankAmerica Corporation (BAC) today
reported first-quarter 1996 earnings per share of $1.79, an increase of
23 percent from $1.46 for the same period a year ago. Net income for the
first quarter of 1996 was $720 million, up 18 percent from the first
quarter of 1995. The return on average common equity for the first
quarter of 1996 was 15.19 percent, an increase of 133 basis points from
the same period of 1995.
"We are pleased that BankAmerica's financial performance continued
to improve in the first quarter of 1996," Chief Executive Officer David
A. Coulter said. "Of particular significance was our ability to hold
noninterest expense essentially flat and to improve our expense-to-
revenue ratio. Going forward, we hope to continue the momentum we have
established in earnings per share and return on common equity."
FINANCIAL HIGHLIGHTS:
. Net interest income was up $100 million, or 5 percent, from the
amount reported for the first quarter of 1995. This increase
primarily resulted from broad-based growth in the loan portfolio.
BAC's net interest margin for the first quarter of 1996 was
4.36 percent, down 19 basis points from the amount reported in the
comparable period a year ago, and down 8 basis points from the
previous quarter. The decline in the net interest margin from the
previous quarter was largely attributable to a $2.1 billion
increase in average financial assets and increased reliance on
wholesale funding sources to support balance sheet growth.
- more -
<PAGE>
. Noninterest income increased $181 million, or 17 percent, from the
first quarter of 1995 due to growth in several categories. In
particular, results from trading and venture capital activities
continued to improve. Other income for the first quarter of 1996
included a pre-tax gain of $50 million associated with the
completed components of the previously announced divestiture of
BAC's institutional trust and securities services business.
. Noninterest expense increased $24 million, or 1 percent, from the
first quarter of 1995. Expenses for the first quarter of 1996
included the effects of higher performance-based pay and
retirement program benefits, contributions to the BankAmerica
Foundation, and lower regulatory fees and related expenses
attributable to reduced FDIC deposit premium assessment rates.
. BAC's expense to revenue ratio decreased 74 basis points from the
previous quarter to 55.83 percent in the first quarter of 1996.
This is the sixth consecutive quarter that this measure of
operating efficiency has improved.
. The provision for credit losses was $180 million, up $80 million
from the first quarter of 1995. Net credit losses were
$239 million for the first quarter of 1996, up $162 million from the
comparable period a year ago, while nonaccrual assets decreased
$194 million, or 10 percent, between year-end 1995 and March 31,
1996.
. In connection with BAC's ongoing efforts to return excess capital
to its shareholders, BAC repurchased 4.6 million shares of its
common stock during the first quarter of 1996 at an average per-
share price of $68.24, which reduced stockholders' equity by
$316 million. These shares were repurchased on the open market
over 30 trading days and represented approximately 11 percent of
the total volume of BAC common stock traded on those days. Remaining
buyback authority for common stock under its current repurchase
program totaled $1.84 billion at March 31, 1996.
. On March 31, 1996, BAC redeemed all 400,000 outstanding shares of
its 11% Cumulative Fixed Preferred Stock, Series J, reducing
stockholders' equity by $218 million.
(end of text, tables follow)
Look for quarterly earnings on BankAmerica's home page on the Internet
<http://www.BankAmerica.com>
- Page 2 -
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 1
Summary of Results and Statistical Data
<TABLE>
<CAPTION>
First Fourth First
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1996 1995 1995
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 720 $ 704 $ 611
2 Earnings per common and common
equivalent share 1.79 1.74 1.46
3 Earnings per common share -
assuming full dilution 1.79 1.74 1.45
Rate of return (based
on net income) on:
4 Average total assets 1.22% 1.20% 1.14%
5 Average common equity 15.19 14.96 13.86
6 Net interest margin/a/ 4.36 4.44 4.55
7 Full-time-equivalent staff
at period end (in thousands) 78.7 79.9 81.2
8 Employees at period
end (in thousands) 94.1 95.3 97.5
Results excluding the effects of
amortization of intangibles:/b/
9 Net income $ 789 $ 774 $ 683
10 Earnings per common and common
equivalent share 1.98 1.92 1.66
11 Rate of return on average
common equity 16.76% 16.57% 15.68%
- --------------------------------------------------------------------------
</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, $5 million, and $6 million for the first quarter of 1996,
the fourth quarter of 1995, and the first quarter of 1995,
respectively.
/b/ For purposes of this table, amortization of goodwill and
identifiable intangibles was computed based upon the
related balance sheet components that are deducted from
Tier 1 capital under regulatory guidelines. These
amortization amounts were excluded from BAC's results and
totaled $69 million, $70 million, and $72 million for the
first quarter of 1996, the fourth quarter of 1995, and
the first quarter of 1995, respectively.
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 2
Stock and Capital Data
<TABLE>
<CAPTION>
(dollar amounts in millions, March 31 Dec. 31 March 31
except per share data) 1996 1995 1995
-------- ------- --------
<S> <C> <C> <C>
1 Book value per common share $48.74 $47.90 $43.72
2 Common stock cash dividends
for the quarter ended 198 169 172
3 Preferred stock cash dividends
for the quarter ended 53 53 62
4 Number of common shares out-
standing (in thousands) 364,082 367,447 369,543
5 Average number of common and
common equivalent shares
outstanding for the quarter
ended (in thousands) 372,385 374,283 375,084
6 Average number of common
shares outstanding - assuming
full dilution for the quarter
ended (in thousands) 373,548 374,669 381,141
7 Common equity to total assets 7.58% 7.57% 7.24%
8 Total risk-based capital ratio 11.50/a/ 11.48 11.61
9 Tier 1 risk-based capital ratio 7.30/a/ 7.35 7.27
10 Total risk-based capital $ 23,464/a/ $ 23,416 $ 22,285
11 Risk-weighted assets 204,369/a/ 203,995 191,962
12 Tier 1 risk-based capital 14,928/a/ 14,991 13,951
- --------------------------------------------------------------------------
</TABLE>
/a/ Amounts are preliminary.
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 3
Tier 1 Capital Generation
<TABLE>
<CAPTION>
First
Quarter
(in millions) 1996
-------
<S> <C>
Generations:
1 Net income $720
2 Amortization of intangibles 69
3 Common stock issuances and other 67
----
4 Total generations 856
Applications:
5 Common stock dividends 198
6 Preferred stock dividends 53
7 Common stock repurchased 316
8 Preferred stock redeemed 218
----
9 Total applications 785
10 Capital attributed to growth
in risk-weighted assets (27)/a/
----
11 Net capital generated after applications $ 44
- -----------------------------------------------------------------------
</TABLE>
/a/ Amount is preliminary.
=======================================================================
Table 4
Selected Average Balance Sheet Components
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
(in millions) 1996 1995 1995
-------- -------- --------
<S> <C> <C> <C>
1 Loans $154,929 $151,896 $141,050
2 Earning assets 197,712 192,587 181,296
3 Total assets 237,083 232,269 217,744
4 Deposits 159,543 157,300 149,902
5 Interest-bearing liabilities 163,842 158,311 150,043
6 Common equity 17,665 17,239 16,070
7 Total equity 20,281 19,862 19,138
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 5
Business Sectors
<TABLE>
<CAPTION>
First Quarter 1996/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 U.S. Corporate and
international banking $318 $ 89 $ 43 19.57% 47.87%
2 Consumer banking 296 90 95 17.20 55.58
3 Middle-market banking 81 21 7 20.96 43.83
4 Commercial real estate 69 10 2 19.45 26.45
5 Private banking and
investment services 18 5 7 17.77 72.58
6 Other (62) 22 6 NM NM
---- ---- ----
7 Total $720 $237 $160 15.19% 55.83%
==== ==== ====
<CAPTION>
First Quarter 1995/a/
---------------------------------------------
Return
Average Average on Expense
Net Total Total Common to
Income Assets Deposits Equity Revenue/b/
------ ------ -------- ------ -------
<S> <C> <C> <C> <C> <C>
8 U.S. Corporate and
international banking $175 $ 80 $ 32 10.77% 54.38%
9 Consumer banking 250 81 96 16.37 59.54
10 Middle-market banking 75 19 8 21.28 43.06
11 Commercial real estate 115 10 1 35.54 26.01
12 Private banking and
investment services 16 4 5 18.38 76.14
13 Other (20) 24 8 NM NM
---- ---- ----
14 Total $611 $218 $150 13.86% 59.81%
==== ==== ====
- ------------------------------------------------------------------------
</TABLE>
/a/ Amounts are preliminary. For comparability purposes, both
1996 and 1995 amounts reflect BAC's business-sector
allocation methodologies at March 31, 1996.
/b/ Excludes net other real estate owned expense and amortization
of intangibles.
NM - Not meaningful.
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 6
Trading-Related Income
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
(in millions) 1996/a/ 1995 1995
------- ------- -------
<S> <C> <C> <C>
Trading income:
1 Interest rate $ 12 $ 20 $ 25
2 Foreign exchange 98 66 83
3 Debt instruments 55 29 21
---- ---- ----
4 Total trading income $165 $115 $129
==== ==== ====
Other trading-related income:/b/
5 Interest rate $ 6 $ 18 $ 3
6 Foreign exchange 6 9 2
7 Debt instruments 44 38 28
---- ---- ----
8 Total other trading-related
income $ 56 $ 65 $ 33
==== ==== ====
- -------------------------------------------------------------------------
</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 7
Loan Outstandings
<TABLE>
<CAPTION>
March 31 Dec. 31 March 31
(in millions) 1996 1995 1995
-------- -------- --------
<S> <C> <C> <C>
Domestic
Consumer:
1 Residential first mortgages $ 37,701 $ 36,572 $ 34,791
2 Residential junior mortgages 13,889 13,777 13,808
3 Other installment 14,682 13,834 10,989
4 Credit card 8,919 9,139 7,757
5 Other individual lines of credit 1,845 1,847 1,691
6 Other 304 319 409
-------- -------- --------
7 Total consumer 77,340 75,488 69,445
Commercial:
8 Commercial and industrial 32,193 32,745 30,481
9 Loans secured by real estate 11,052 10,975 10,504
10 Construction and development
loans secured by real estate 3,107 3,153 3,526
11 Financial institutions 2,705 2,834 2,211
12 Lease financing 1,941 1,927 1,786
13 Agricultural 1,585 1,737 1,658
14 Loans for purchasing or carrying
securities 1,402 1,458 1,348
15 Other 1,211 1,574 1,639
-------- -------- --------
16 Total commercial 55,196 56,403 53,153
-------- -------- --------
17 Total domestic loans 132,536 131,891 122,598
Foreign
18 Commercial and industrial 15,183 15,003 14,417
19 Banks and other financial
institutions 2,916 3,386 2,871
20 Governments and official
institutions 1,334 1,020 866
21 Other 4,186 4,073 3,407
-------- -------- --------
22 Total foreign loans 23,619 23,482 21,561
-------- -------- --------
23 Total Loans $156,155 $155,373 $144,159
======== ======== ========
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 8
Selected Credit Quality Data
<TABLE>
<CAPTION>
March 31 Dec. 31 March 31
(dollar amounts in millions) 1996 1995 1995
-------- ------- --------
<S> <C> <C> <C>
Nonaccrual assets:
1 Commercial and industrial $ 541 $ 619 $ 470
2 Construction and development
loans secured by real estate 391 462 549
3 Commercial loans secured by real
estate 251 280 341
4 Consumer 373 385 386
5 Foreign 141 145 189
------ ------ ------
6 Total nonaccrual assets $1,697/a/ $1,891/a/ $1,935/a/
====== ====== ======
7 Restructured loans $ 91 $ 113 $ 109
8 Loans past due 90 days or more
and still accruing interest/b/ 360 411 369
9 Other real estate owned 492 492 559
10 Allowance for credit losses to
total loans 2.24% 2.29% 2.58%
11 Allowance for credit losses to
total nonaccrual assets 206.01 187.93 192.50
12 Annualized ratio of net credit
losses to average total loan
outstandings for the quarter ended 0.62 0.60 0.22
- -------------------------------------------------------------------------
</TABLE>
/a/Includes $1.3 billion, $1.4 billion, and $1.4 billion at
March 31, 1996, December 31, 1995, and March 31, 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 $336 million, $354 million, and
$289 million at March 31, 1996, December 31, 1995, and
March 31, 1995, respectively.
========================================================================
Table 9
Analysis of Change in Nonaccrual Assets
<TABLE>
<CAPTION>
First
Quarter
(in millions) 1996
-------
<S> <C>
1 Balance, beginning of period $1,891
Additions:
2 Loans placed on nonaccrual status 191
Deductions:
3 Sales (67)
4 Restored to accrual status (60)
5 Foreclosures (11)
6 Charge-offs (90)
7 Other, primarily payments (157)
------
8 Balance, end of period $1,697
======
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
Table 10
Net Credit Losses (Recoveries)
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
(in millions) 1996 1995 1995
------- ------- -------
<S> <C> <C> <C>
Domestic consumer:
1 Residential first mortgages $ 11 $ 12 $ 14
2 Residential junior mortgages 16 15 13
3 Credit card 103 93 74
4 Other consumer 61 55 35
Domestic commercial:
5 Commercial and industrial 19 60 (14)
6 Loans secured by real estate 8 4 6
7 Construction and development
loans secured by real estate 13 3 3
8 Financial institutions, lease
financing, agricultural, and
loans for purchasing or
carrying securities 20 3 (2)
---- ---- ----
9 Total domestic 251 245 129
10 Foreign (12) (14) (52)
---- ---- ----
11 Total Net Credit Losses $239 $231 $ 77
==== ==== ====
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Consolidated Statement of Operations
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
(in millions) 1996 1995 1995
------- ------- -------
<S> <C> <C> <C>
Interest Income
1 Loans, including fees $3,297 $3,287 $3,004
2 Interest-bearing deposits in banks 117 119 112
3 Federal funds sold 6 5 8
4 Securities purchased under
resale agreements 155 147 135
5 Trading account assets 216 200 163
6 Available-for-sale and held-to-
maturity securities 298 313 314
------ ------ ------
7 Total interest income 4,089 4,071 3,736
Interest Expense
8 Deposits 1,314 1,307 1,114
9 Federal funds purchased 22 35 39
10 Securities sold under repurchase
agreements 163 147 130
11 Other short-term borrowings 178 168 132
12 Long-term debt 254 265 264
13 Subordinated capital notes 12 12 11
------ ------ ------
14 Total interest expense 1,943 1,934 1,690
------ ------ ------
15 Net interest income 2,146 2,137 2,046
16 Provision for credit losses 180 130 100
------ ------ ------
17 Net interest income after
provision for credit losses 1,966 2,007 1,946
Noninterest Income
18 Deposit account fees 344 334 317
19 Credit card fees 79 84 75
20 Trust fees 63 72 78
21 Other fees and commissions 320 304 300
22 Trading income 165 115 129
23 Net gain on available-for-sale
securities 30 7 1
24 Net gain on sales of assets 49 29 1
25 Venture capital activities 110 93 87
26 Other income 114 120 105
------- ------ ------
27 Total noninterest income 1,274 1,158 1,093
Noninterest Expense
28 Salaries 821 819 809
29 Employee benefits 202 147 193
30 Occupancy 190 198 173
31 Equipment 163 169 159
32 Amortization of intangibles 95 99 109
33 Communications 92 93 86
34 Regulatory fees and related expenses 13 23 72
35 Other expense 437 418 388
------ ------ ------
36 Total noninterest expense 2,013 1,966 1,989
------ ------ ------
37 Income before income taxes 1,227 1,199 1,050
38 Provision for income taxes 507 495 439
------ ------ ------
39 Net Income $ 720 $ 704 $ 611
====== ====== ======
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Consolidated Balance Sheet
<TABLE>
<CAPTION>
March 31 Dec. 31 March 31
(in millions) 1996 1995 1995
-------- -------- --------
<S> <C> <C> <c.
Assets
1 Cash and due from banks $ 12,870 $ 14,312 $ 12,404
2 Interest-bearing deposits in banks 5,585 5,761 6,122
3 Federal funds sold 143 721 793
4 Securities purchased under resale
agreements 6,198 4,962 5,969
5 Trading account assets 11,215 9,516 7,941
6 Available-for-sale securities 11,287 12,043 9,268
7 Held-to-maturity securities 4,523 4,656 7,335
8 Loans 156,155 155,373 144,159
9 Less: Allowance for credit losses 3,496 3,554 3,725
-------- -------- --------
10 Net loans 152,659 151,819 140,434
11 Customers' acceptance liability 2,761 2,295 1,977
12 Accrued interest receivable 1,469 1,458 1,371
13 Goodwill, net 4,115 4,192 4,323
14 Identifiable intangibles, net 1,753 1,806 2,176
15 Unrealized gains on off-balance-
sheet instruments 7,551 7,801 11,577
16 Premises and equipment, net 4,010 3,985 3,973
17 Other assets 8,104 7,119 7,525
-------- -------- --------
18 Total Assets $234,243 $232,446 $223,188
======== ======== ========
Liabilities & Stockholders' Equity
Deposits in domestic offices:
19 Interest-bearing $ 84,314 $ 84,097 $ 87,140
20 Noninterest-bearing 34,570 36,820 32,712
Deposits in foreign offices:
21 Interest-bearing 40,127 37,886 30,718
22 Noninterest-bearing 1,506 1,691 1,698
-------- -------- --------
23 Total deposits 160,517 160,494 152,268
24 Federal funds purchased 2,125 5,160 2,174
25 Securities sold under repurchase
agreements 7,640 6,383 6,570
26 Other short-term borrowings 11,523 7,627 8,500
27 Acceptances outstanding 2,761 2,295 1,977
28 Accrued interest payable 842 848 739
29 Unrealized losses on off-balance-
sheet instruments 7,719 8,227 11,848
30 Other liabilities 5,875 5,862 4,435
31 Long-term debt 14,718 14,723 14,846
32 Subordinated capital notes 356 605 605
-------- -------- --------
33 Total liabilities 214,076 212,224 203,962
Stockholders' Equity
34 Preferred stock 2,423 2,623 3,068
35 Common stock 604 602 587
36 Additional paid-in capital 8,384 8,328 7,912
37 Retained earnings 10,067 9,606 8,230
38 Net unrealized gain (loss) on
available-for-sale securities (56) 1 (275)
39 Common stock in treasury, at cost (1,255) (938) (296)
-------- -------- --------
40 Total stockholders' equity 20,167 20,222 19,226
-------- -------- --------
41 Total Liabilities and
Stockholders' Equity $234,243 $232,446 $223,188
======== ======== ========
</TABLE>
<PAGE>
