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
October 16, 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 October 16, 1996 titled "BankAmerica Third 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 October 16, 1996
titled "BankAmerica Third 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: October 16, 1996
By /s/ JOHN J. HIGGINS
-------------------------
John J. Higgins
Executive Vice President
and Chief Accounting Officer
4063959 2
EXHIBIT INDEX
Exhibit
Number Description
- ------- -----------
99 BankAmerica Corporation press release dated
October 16, 1996 titled "BankAmerica Third Quarter
Earnings."
<PAGE>
Exhibit 99
[BankAmerica Corporation logo appears here] News
For release:
Contact: Peter Magnani
(415) 953-2418
BANKAMERICA THIRD QUARTER EARNINGS
SAN FRANCISCO, October 16, 1996 -- BankAmerica Corporation (BAC) today
reported third-quarter 1996 earnings per share and net income of $1.75 and
$683 million, respectively, compared with $1.72 and $704 million for the same
period a year ago. Third quarter net income includes a one-time assessment
of $82 million associated with the recapitalization of the Savings Association
Insurance Fund (SAIF). Excluding the effect of this assessment, earnings per
share and net income for the third quarter of 1996 would have been $1.88 and
$731 million, respectively, which would represent increases of 9 percent and
4 percent compared with the same period a year ago. In addition, the return on
average common equity for the third quarter of 1996, excluding the SAIF
assessment, would have been 15.23 percent, an increase of 14 basis points from
the same period a year ago.
BAC's earnings per share and net income for the first nine months of
1996 were $5.38 and $2,126 million, respectively, compared with $4.75 and
$1,960 million for the first nine months of 1995. Excluding the effect of the
one-time SAIF assessment mentioned above, earnings per share and net income
for the nine months ended September 30, 1996 would have been $5.51 and
$2,174 million, respectively, up 16 percent and 11 percent compared with
the same period in 1995. The return on average common equity for the first
nine months of 1996, excluding the SAIF assessment, would have been
15.28 percent, an increase of 84 basis points from the same period a year ago.
"Once again, we had a very solid quarter," David A. Coulter, Chairman
and Chief Executive Officer, said. "Credit quality continued to improve,
expenses remained under control, and we began to make progress in our
efforts toward strategic redeployment of capital." Coulter cited the
following third-quarter activities as examples:
o Acquisition of approximately $1.8 billion of lease-related financial
assets from subsidiaries of Ford Motor Company;
- more -
<PAGE>
o Securitization of $500 million of credit card receivables from
BAC's $9.5 billion managed credit card portfolio and the sale
of $1.4 billion of conforming fixed-rate first mortgages from
BAC's $37 billion mortgage portfolio;
o Signing of definitive agreements to divest 68 branches in Texas; and
o Reduction of equity interest in KorAm Bank, an Asian investment,
from 29 percent to 19 percent.
FINANCIAL HIGHLIGHTS:
o Net interest income was down $4 million from the amount reported for
the third quarter of 1995. Excluding the effect of the
credit card securitization, net interest income would have
increased $6 million from the third quarter of 1995. Average
interest-earning assets for the third quarter of 1996 increased
$16 billion compared with the same period a year ago. BAC's
net interest margin for the third quarter of 1996 was 4.17 percent,
down 35 basis points from the comparable period a year ago, and
down 10 basis points from the previous quarter.
o Noninterest income increased $162 million, or 14 percent, from the
third quarter of 1995. Other fees and commissions increased primarily
due to higher revenues from loan fees and charges and financial
services fees. In addition, venture capital distributions rose,
and gains on sales of assets increased primarily due to higher gains
on loan sales and sales of leased aircraft. Third-quarter 1996
noninterest income included gains on the liquidation of an Australian
subsidiary ($43 million) and the reduction of BAC's equity interest
in KorAm Bank ($39 million).
o Excluding the one-time SAIF assessment of $82 million, noninterest
expense was essentially unchanged from the third quarter of 1995.
- Page 2 -
<PAGE>
o BAC's expense-to-revenue ratio, excluding the effect of the one-time
SAIF assessment, was 54.47 percent in the third quarter of 1996,
a decrease of 67 basis points from 55.14 percent in the previous
quarter.
o The provision for credit losses was $235 million, down $15 million
from the second quarter of 1996, but up $125 million from the third
quarter of 1995. Net credit losses were $226 million for the third
quarter of 1996, a decline of $20 million, or 8 percent, from the
second quarter of 1996, but up $75 million, or 50 percent, from the
comparable quarter a year ago. Nonaccrual assets decreased
$369 million, or 25 percent, between June 30, 1996 and September 30,
1996.
o In connection with BAC's ongoing efforts to return excess capital to
its shareholders, BAC repurchased 2.5 million shares of its common
stock during the third quarter of 1996 at an average per-share price
of $78.48, which reduced stockholders' equity by $200 million. These
shares were repurchased on the open market over 31 trading days and
represented approximately seven percent of the total volume of BAC
common stock traded on those days. Remaining buyback authority for
common stock under the current repurchase program totaled $1.3 billion
at September 30, 1996.
(end of text, tables follow)
Look for quarterly earnings on BankAmerica's home page on the Internet
http://www.BankAmerica.com
- Page 3 -
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 1
SUMMARY OF RESULTS AND STATISTICAL DATA
Third Second Third
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1996 1996 1995
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 683 $ 723 $ 704
1a Adjusted net income/a/ 731 NA NA
2 Earnings per common and common
equivalent share 1.75 1.84 1.72
2a Adjusted earnings per common
and common equivalent share/a/ 1.88 NA NA
3 Earnings per common share --
assuming full dilution 1.75 1.84 1.72
3a Adjusted earnings per
common share -- assuming
full dilution/a/ 1.88 NA NA
Rate of return (based on net
income) on:
4 Average total assets 1.12% 1.21% 1.21%
4a Average total assets,
as adjusted/a/ 1.19 NA NA
5 Average common equity 14.16 15.42 15.09
5a Average common equity,
as adjusted/a/ 15.23 NA NA
6 Net interest margin/b/ 4.17 4.27 4.52
7 Full-time-equivalent staff
at period end (in thousands) 78.2 78.3 80.2
8 Employees at period
end (in thousands) 92.7 93.2 95.5
- ----------------------------------------------------------------------
</TABLE>
(Continued on Next Page)
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 1
SUMMARY OF RESULTS AND STATISTICAL DATA
(CONTINUED)
Nine Months Ended
September 30
-----------------
1996 1995
------ ------
<S> <C> <C>
9 Net income $2,126 $1,960
9a Adjusted net income/a/ 2,174 NA
10 Earnings per common and common
equivalent share 5.38 4.75
10a Adjusted earnings per common
and common equivalent share/a/ 5.51 NA
11 Earnings per common share --
assuming full dilution 5.38 4.72
11a Adjusted earnings per common share --
assuming full dilution/a/ 5.51 NA
Rate of return (based on net income) on:
12 Average total assets 1.18% 1.16%
12a Average total assets, as adjusted/a/ 1.21 NA
13 Average common equity 14.92 14.44
13a Average common equity, as adjusted/a/ 15.28 NA
14 Net interest margin/b/ 4.26 4.53
- ---------------------------------------------------------------------
</TABLE>
/a/Adjusted to exclude the income statement effect of the previously
discussed one-time SAIF assessment in the third quarter of 1996.
/b/The net interest margin is computed on a taxable-equivalent
basis. The taxable-equivalent basis adjustments to net
interest income were $5 million, $1 million, and $7 million,
for the third quarter of 1996, the second quarter of 1996, and the
third quarter of 1995, respectively, and $11 million and
$20 million for the nine-month periods ended September 30,
1996 and 1995, respectively.
NA - Not applicable.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 2
SUMMARY OF RESULTS EXCLUDING THE EFFECTS
OF AMORTIZATION OF INTANGIBLES/a/
Third Second Third
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1996 1996 1995
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 751 $ 790 $ 774
2 Earnings per common and common
equivalent share 1.93 2.02 1.91
3 Rate of return on average
common equity 15.66% 16.95% 16.72%
<CAPTION>
Nine Months Ended
September 30
-----------------
1996 1995
------ ------
<S> <C> <C>
4 Net income $2,330 $2,172
5 Earnings per common and common
equivalent share 5.93 5.31
6 Rate of return on average
common equity 16.45% 16.15%
- ---------------------------------------------------------------------
</TABLE>
/a/ 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 $68 million, $67 million,
and $70 million for the third quarter of 1996, the second
quarter of 1996, and the third quarter of 1995, respectively,
and $204 million and $212 million for the nine-month periods
ended September 30, 1996 and 1995, respectively.
======================================================================
TABLE 3
TIER 1 CAPITAL GENERATION
<TABLE>
<CAPTION>
Nine Months Ended
September 30
------------------
(in millions) 1996 1995
------- -------
<S> <C> <C>
Generation:
1 Net income $ 2,126 $ 1,960
2 Amortization of
intangibles 204 212
3 Common stock issuances
and other 220 582
------- -------
4 Total generation 2,550 2,754
Applications:
5 Common stock dividends (587) (515)
6 Preferred stock dividends (141) (174)
7 Common stock repurchased (901) (704)
8 Preferred stock redeemed (399) (206)
9 Preferred stock converted to
common stock - (248)
------- -------
10 Total applications (2,028) (1,847)
11 Capital attributed to growth
in risk-weighted assets (651)/a/ (938)
------- -------
12 Net capital applied $ (129) $ (31)
======= =======
- ---------------------------------------------------------------------
</TABLE>
/a/ Amount is preliminary.
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 4
STOCK AND CAPITAL DATA
(dollar amounts in millions, Sept. 30 June 30 Sept. 30
except per share data) 1996 1996 1995
-------- ------- --------
<S> <C> <C> <C>
1 Book value per common share $ 50.92 $ 49.64 $ 46.59
Common stock cash dividends:
2 Quarter ended 194 195 171
3 Year-to-date 587 393 515
Preferred stock cash dividends:
4 Quarter ended 43 45 56
5 Year-to-date 141 98 174
6 Number of common shares out-
standing (in thousands) 358,826 359,893 369,998
Average number of common and common
equivalent shares outstanding
(in thousands):
7 Quarter ended 365,672 368,543 376,643
8 Year-to-date 368,866 370,464 375,980
Average number of common shares
outstanding -- assuming
full dilution (in thousands):
9 Quarter ended 365,885 368,591 377,421
10 Year-to-date 369,341 371,069 379,248
11 Common equity to total assets 7.52% 7.48% 7.50%
12 Total risk-based capital ratio 11.33/a/ 11.27 11.47
13 Tier 1 risk-based capital ratio 7.30/a/ 7.17 7.26
14 Total risk-based capital $ 24,128/a/ $ 23,772 $ 23,017
15 Risk-weighted assets 212,911/a/ 210,907 200,664
16 Tier 1 risk-based capital 15,532/a/ 15,119 14,560
- ---------------------------------------------------------------------
</TABLE>
/a/ Amounts are preliminary.
=====================================================================
TABLE 5
SELECTED AVERAGE BALANCE SHEET COMPONENTS
<TABLE>
<CAPTION>
Third Second Third
Quarter Quarter Quarter
(in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
1 Loans $159,779 $157,553 $148,842
2 Earning assets 206,618 202,578 190,888
3 Total assets 243,769 241,056 229,909
4 Deposits 161,514 162,312 154,982
5 Interest-bearing liabilities 171,809 168,755 157,348
6 Common equity 17,963 17,703 17,032
7 Total equity 20,205 19,975 19,753
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 6
BUSINESS SECTORS
Nine Months Ended September 30, 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 Consumer banking/c/ $ 952 $ 91 $ 95 17.56% 55.46%
2 U.S. Corporate and
international banking 859 91 45 21.51 49.22
3 Middle-market banking 265 21 7 23.09 44.38
4 Commercial real estate 192 10 2 30.13 23.07
5 Private banking and
investment services 63 5 7 17.28 72.32
6 Other (205) 23 5 NM NM
------ ---- ----
7 Total $2,126 $241 $161 14.92% 55.92%
====== ==== ====
<CAPTION>
Nine Months Ended September 30, 1995/a/
------------------------------------------
Return
Average Average on Expense
Net Total Total Common to
Income Assets Deposits Equity Revenue/b/
------ ------ -------- ------ -------
8 Consumer banking $ 875 $ 83 $ 95 17.83% 58.00%
9 U.S. Corporate and
international banking 613 86 36 15.49 53.70
10 Middle-market banking 240 19 8 23.39 44.83
11 Commercial real estate 296 10 2 44.81 25.20
12 Private banking and
investment services 46 4 6 13.98 75.89
13 Other (110) 23 6 NM NM
------ ---- ----
14 Total $1,960 $225 $153 14.44% 58.59%
====== ==== ====
- ----------------------------------------------------------------------
</TABLE>
/a/ Amounts are preliminary. For comparability purposes, both 1996 and
1995 amounts reflect BAC's business-sector allocation methodologies
at September 30, 1996.
/b/ Excludes net other real estate owned expense and amortization of
intangibles.
/c/ Includes the income statement effect of the previously discussed
one-time SAIF assessment.
NM - Not meaningful.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 7
TRADING-RELATED INCOME
Third Second Third
Quarter Quarter Quarter
(in millions) 1996/a/ 1996 1995
------- ------- -------
<S> <C> <C> <C>
Trading income:
1 Interest rate $ 17 $ 8 $ 13
2 Foreign exchange 64 90 74
3 Debt instruments 72 80 45
---- ---- ----
4 Total trading income $153 $178 $132
==== ==== ====
Other trading-related income/b/:
5 Interest rate $ 5 $ 7 $ 7
6 Foreign exchange 4 7 10
7 Debt instruments 52 59 37
---- ---- ----
8 Total other trading-related
income $ 61 $ 73 $ 54
==== ==== ====
<CAPTION>
Nine Months Ended
September 30
-----------------
1996/a/ 1995
------ ------
Trading income:
<S> <C> <C>
9 Interest rate $ 37 $ 47
10 Foreign exchange 252 237
11 Debt instruments 207 128
---- -----
12 Total trading income $496 $412
==== ====
Other trading-related income/b/:
13 Interest rate $ 18 $ 12
14 Foreign exchange 17 19
15 Debt instruments 155 114
---- -----
16 Total other trading-related
income $190 $145
==== ====
- ---------------------------------------------------------------------
</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>
<CAPTION>
TABLE 8
LOAN OUTSTANDINGS
Sept. 30 June 30 Sept. 30
(in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
DOMESTIC
Consumer:
1 Residential first mortgages $ 37,445 $ 38,012 $ 36,082
2 Residential junior mortgages 14,525 14,386 14,162
3 Other installment 15,998 15,057 12,728
4 Credit card 9,021 9,342 8,622
5 Other individual lines of credit 1,845 1,824 1,816
6 Other 303 307 289
-------- -------- --------
7 Total consumer 79,137 78,928 73,699
Commercial:
8 Commercial and industrial 33,076 33,097 31,896
9 Loans secured by real estate 12,062 11,410 10,776
10 Construction and development
loans secured by real estate 2,530 2,896 3,214
11 Financial institutions 2,537 3,075 2,561
12 Lease financing 2,682 2,019 1,910
13 Agricultural 1,561 1,581 1,591
14 Loans for purchasing or carrying
securities 1,328 1,399 1,236
15 Other 1,253 1,146 1,409
-------- -------- --------
16 Total commercial 57,029 56,623 54,593
-------- -------- --------
17 Total domestic loans 136,166 135,551 128,292
FOREIGN
18 Commercial and industrial 16,257 15,958 15,314
19 Banks and other financial
institutions 3,480 4,077 2,795
20 Governments and official
institutions 943 1,015 1,077
21 Other 4,987 4,039 3,734
-------- -------- --------
22 Total foreign loans 25,667 25,089 22,920
-------- -------- --------
23 Total Loans $161,833 $160,640 $151,212
======== ======== ========
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 9
SELECTED CREDIT QUALITY DATA
Sept. 30 June 30 Sept. 30
(dollar amounts in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Nonaccrual assets:
1 Commercial and industrial $ 357 $ 422 $ 650
2 Construction and development
loans secured by real estate 119 346 304
3 Commercial loans secured by real
estate 229 245 329
4 Consumer 291 342 384
5 Foreign 123 133 188
------ ------ ------
6 Total nonaccrual assets $1,119 $1,488 $1,855
====== ====== ======
7 Restructured loans $ 274 $ 103 $ 102
8 Loans past due 90 days or more
and still accruing interest/a/ 363 389 439
9 Other real estate owned 397 437 509
10 Allowance for credit losses to
total loans 2.17% 2.18% 2.42%
11 Allowance for credit losses to
total nonaccrual assets 313.77 234.88 197.06
Annualized ratio of net credit
losses to average total loan
outstandings:
12 Quarter ended 0.56 0.63 0.40
13 Year-to-date 0.60 0.62 0.33
- ---------------------------------------------------------------------
</TABLE>
/a/ Includes consumer loans of $332 million, $311 million, and
$341 million at September 30, 1996, June 30, 1996, and
September 30, 1995, respectively.
=====================================================================
TABLE 10
ANALYSIS OF CHANGE IN NONACCRUAL ASSETS
<TABLE>
<CAPTION>
Third Second First
Quarter Quarter Quarter
(in millions) 1996 1996 1996
------- ------- -------
<S> <C> <C> <C>
1 Balance, beginning of period $1,488 $1,697 $1,891
Additions:
2 Loans placed on nonaccrual status 66 129 191
3 Leases acquired 34 - -
Deductions:
4 Sales (4) (26) (67)
5 Restored to accrual status (229) (37) (60)
6 Foreclosures (5) (6) (11)
7 Charge-offs (51) (77) (90)
8 Other, primarily payments (180) (192) (157)
------ ------ ------
9 Balance, end of period $1,119 $1,488 $1,697
====== ====== ======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 11
NET CREDIT LOSSES (RECOVERIES)
Third Second Third
Quarter Quarter Quarter
(in millions) 1996 1996 1995
------- ------- -------
<S> <C> <C> <C>
Domestic consumer:
1 Residential first mortgages $ 11 $ 12 $ 12
2 Residential junior mortgages 13 12 16
3 Credit card 111 108 91
4 Other 63 63 43
Domestic commercial:
5 Commercial and industrial 9 29 6
6 Loans secured by real estate 2 - 4
7 Construction and development
loans secured by real estate 16 13 (33)
8 Financial institutions, lease
financing, agricultural, and
loans for purchasing or
carrying securities - 19 (4)
---- ---- ----
9 Total domestic 225 256 135
10 Foreign 1 (10) 16
---- ---- ----
11 Total Net Credit Losses $226 $246 $151
==== ==== ====
</TABLE>
======================================================================
TABLE 12
DOMESTIC CONSUMER LOAN DELINQUENCY INFORMATION/a/
<TABLE>
<CAPTION>
Sept. 30 June 30 Sept. 30
(dollar amounts in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Delinquent consumer loans:
1 Residential first mortgages $518 $535 $644
2 Residential junior mortgages 64 70 92
3 Credit card 207 204 164
4 Other 113 96 81
---- ---- ----
5 Total delinquent consumer loans $902 $905 $981
==== ==== ====
Delinquent consumer loan ratios/b/:
6 Residential first mortgages 1.38% 1.41% 1.79%
7 Residential junior mortgages 0.44 0.48 0.65
8 Credit card 2.29 2.19 1.91
9 Other 0.63 0.56 0.55
10 Total delinquent consumer
loan ratio 1.14% 1.15% 1.33%
==== ==== ====
- ---------------------------------------------------------------------
</TABLE>
/a/ 60 days or more past due.
/b/ Ratios represent delinquency balances expressed as a percentage
of total loans for that loan category.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Third Second Third
Quarter Quarter Quarter
(in millions) 1996 1996 1995
------- ------- -------
<S> <C> <C> <C>
INTEREST INCOME
1 Loans, including fees $3,371 3,307 $3,244
2 Interest-bearing deposits in banks 95 96 115
3 Federal funds sold 9 7 10
4 Securities purchased under
resale agreements 178 176 160
5 Trading account assets 268 247 189
6 Available-for-sale and held-to-
maturity securities 285 293 326
------ ------ ------
7 TOTAL INTEREST INCOME 4,206 4,126 4,044
INTEREST EXPENSE
8 Deposits 1,332 1,307 1,262
9 Federal funds purchased 17 20 27
10 Securities sold under repurchase
agreements 201 176 154
11 Other short-term borrowings 243 208 162
12 Long-term debt 254 249 272
13 Subordinated capital notes 7 7 11
------ ------ ------
14 TOTAL INTEREST EXPENSE 2,054 1,967 1,888
------ ------ ------
15 NET INTEREST INCOME 2,152 2,159 2,156
16 Provision for credit losses 235 250 110
------ ------ ------
17 NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 1,917 1,909 2,046
NONINTEREST INCOME
18 Deposit account fees 345 346 329
19 Credit card fees 92 90 82
20 Trust fees 53 56 72
21 Other fees and commissions 360 333 323
22 Trading income 153 178 132
23 Venture capital activities 97 112 54
24 Net gain on sales of
subsidiaries and operations 41 83 -
25 Net gain on sales of assets 64 21 27
26 Net gain on available-for-sale
securities 7 4 17
27 Other income 107 97 121
------ ------ ------
28 TOTAL NONINTEREST INCOME 1,319 1,320 1,157
NONINTEREST EXPENSE
29 Salaries 822 814 839
30 Employee benefits 191 213 195
31 Occupancy 188 186 185
32 Equipment 180 175 170
33 Amortization of intangibles 93 93 110
34 Communications 89 90 89
35 Regulatory fees and related expenses 95 13 7
36 Other expense 423 413 398
------ ------ ------
37 TOTAL NONINTEREST EXPENSE 2,081 1,997 1,993
------ ------ ------
38 INCOME BEFORE INCOME TAXES 1,155 1,232 1,210
39 Provision for income taxes 472 509 506
------ ------ ------
40 NET INCOME $ 683 $ 723 $ 704
====== ====== ======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Nine Months Ended
September 30
-------------------
(in millions) 1996 1995
------- -------
<S> <C> <C>
INTEREST INCOME
1 Loans, including fees $ 9,975 $ 9,420
2 Interest-bearing deposits in banks 308 347
3 Federal funds sold 22 27
4 Securities purchased under
resale agreements 509 471
5 Trading account assets 731 541
6 Available-for-sale and held-to-
maturity securities 876 963
------- -------
7 TOTAL INTEREST INCOME 12,421 11,769
INTEREST EXPENSE
8 Deposits 3,953 3,616
9 Federal funds purchased 59 96
10 Securities sold under repurchase
agreements 540 434
11 Other short-term borrowings 629 462
12 Long-term debt 757 802
13 Subordinated capital notes 26 34
------ -------
14 TOTAL INTEREST EXPENSE 5,964 5,444
------ -------
15 NET INTEREST INCOME 6,457 6,325
16 Provision for credit losses 665 310
------ ------
17 NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 5,792 6,015
NONINTEREST INCOME
18 Deposit account fees 1,035 969
19 Credit card fees 261 231
20 Trust fees 172 228
21 Other fees and commissions 1,013 965
22 Trading income 496 412
23 Venture capital activities 319 244
24 Net gain (loss) on sales of
subsidiaries and operations 175 (17)
25 Net gain on sales of assets 134 42
26 Net gain on available-for-sale
securities 41 27
27 Other income 267 287
------ ------
28 TOTAL NONINTEREST INCOME 3,913 3,388
NONINTEREST EXPENSE
29 Salaries 2,457 2,490
30 Employee benefits 606 571
31 Occupancy 564 540
32 Equipment 518 494
33 Amortization of intangibles 281 329
34 Communications 271 266
35 Regulatory fees and related expenses 121 153
36 Other expense 1,273 1,192
------ ------
37 TOTAL NONINTEREST EXPENSE 6,091 6,035
------ ------
38 INCOME BEFORE INCOME TAXES 3,614 3,368
39 Provision for income taxes 1,488 1,408
------ ------
40 NET INCOME $2,126 $1,960
====== ======
</TABLE>
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BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
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Sept. 30 June 30 Sept. 30
(in millions) 1996 1996 1995
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ASSETS
1 Cash and due from banks $ 13,619 $ 12,478 $ 12,532
2 Interest-bearing deposits in banks 5,829 5,194 5,832
3 Federal funds sold 306 276 229
4 Securities purchased under resale
agreements 6,287 7,001 6,811
5 Trading account assets 14,000 12,633 9,883
6 Available-for-sale securities 11,717 10,964 9,979
7 Held-to-maturity securities 4,200 4,280 6,927
8 Loans 161,833 160,640 151,212
9 Less: Allowance for credit losses 3,511 3,495 3,655
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10 Net loans 158,322 157,145 147,557
11 Customers' acceptance liability 3,165 2,837 2,268
12 Accrued interest receivable 1,435 1,451 1,448
13 Goodwill, net 4,017 4,066 4,263
14 Identifiable intangibles, net 1,664 1,708 2,134
15 Unrealized gains on off-balance-
sheet instruments 6,598 7,297 8,843
16 Premises and equipment, net 3,968 3,980 4,011
17 Other assets 7,826 7,531 7,209
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18 TOTAL ASSETS $242,953 $238,841 $229,926
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LIABILITIES & STOCKHOLDERS' EQUITY
Deposits in domestic offices:
19 Interest-bearing $ 83,779 $ 83,954 $ 84,345
20 Noninterest-bearing 37,589 34,737 34,231
Deposits in foreign offices:
21 Interest-bearing 42,035 41,444 35,525
22 Noninterest-bearing 1,498 1,710 1,536
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23 Total deposits 164,901 161,845 155,637
24 Federal funds purchased 1,093 2,740 3,110
25 Securities sold under repurchase
agreements 8,489 8,861 7,187
26 Other short-term borrowings 16,263 14,530 10,289
27 Acceptances outstanding 3,165 2,837 2,268
28 Accrued interest payable 868 833 811
29 Unrealized losses on off-balance-
sheet instruments 6,458 7,310 9,547
30 Other liabilities 5,750 4,824 5,334
31 Long-term debt 15,099 14,597 15,277
32 Subordinated capital notes 355 356 605
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33 TOTAL LIABILITIES 222,441 218,733 210,065
STOCKHOLDERS' EQUITY
34 Preferred stock 2,242 2,242 2,623
35 Common stock 605 605 600
36 Additional paid-in capital 8,458 8,439 8,271
37 Retained earnings 10,989 10,544 9,133
38 Net unrealized loss on
available-for-sale securities (27) (79) (51)
39 Common stock in treasury, at cost (1,755) (1,643) (715)
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40 TOTAL STOCKHOLDERS' EQUITY 20,512 20,108 19,861
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41 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $242,953 $238,841 $229,926
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