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
July 16, 1997
---------------------------------
(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 July 16, 1997 titled "BankAmerica Second 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 July 16, 1997
titled "BankAmerica Second 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: July 16, 1997 By /s/ JOHN J. HIGGINS
---------------------------
John J. Higgins
Executive Vice President
and Chief Accounting Officer
2
4063959
EXHIBIT INDEX
Exhibit
Number Description
- ------- -------------
99 BankAmerica Corporation press release dated
July 16, 1997 titled "BankAmerica Second Quarter Earnings."
4063959
<PAGE>
[BANKAMERICA CORPORATION LOGO APPEARS HERE] Exhibit 99
BANKAMERICA CORPORATION News
For release:
Contact: Peter Magnani
(415) 953-2418
BANKAMERICA SECOND QUARTER EARNINGS
SAN FRANCISCO, July 16, 1997 -- BankAmerica Corporation (BAC) today
reported second-quarter 1997 fully-diluted earnings per share and net income of
$1.07 and $799 million, respectively, up 16 percent from $0.92 and 11 percent
from $723 million for the same period a year ago. The return on average common
equity for the second quarter of 1997 was 16.73 percent, an increase of 131
basis points from the same period a year ago and 23 basis points from the first
quarter of 1997.
BAC's fully-diluted earnings per share for the first six months of 1997
were $2.09, an increase of 15 percent from $1.81 for the first six months of
1996. Net income for the first six months of 1997 was $1,579 million, an
increase of 9 percent from $1,443 million for the first six months of 1996.
Cash earnings per share for the second quarter of 1997 were $1.16, up 15
percent from $1.01 for the second quarter of 1996. Cash earnings per share for
the first six months of 1997 were $2.28, up 14 percent from $2.00 for the first
six months of 1996.
The per share results include the effects of a two-for-one stock split
which was effective June 2, 1997.
"We again demonstrated strong financial results in the second quarter,"
David A. Coulter, Chairman and Chief Executive Officer, said. "I am especially
pleased with the continued progress we have made on return on equity and on the
strategic management of capital, an area in which we were particularly active
during the second quarter."
Coulter cited the following examples:
o The June 9, 1997 announcement of an agreement to acquire the investment
banking firm, Robertson, Stephens & Company Group, L.L.C.;
o The agreement also announced on June 9 to sell the consumer finance
subsidiary Security Pacific Financial Services Inc.;
o The agreement to sell the branch system in Hawaii;
o The completion of the sale of 68 Texas branches;
o The sale of $1.8 billion of residential first mortgages and the
announcement of plans to securitize and sell $675 million of mortgages;
o The securitization of $750 million of credit card receivables in the second
quarter of 1997; and
o The announcement of the redemption of BAC's Series L preferred stock.
FINANCIAL HIGHLIGHTS:
o Net interest income was up $35 million from the second quarter of 1996.
BAC's net interest margin for the second quarter of 1997 was 4.11 percent,
down 16 basis points from the comparable period a year ago. Excluding the
effects of the credit card securitizations that have taken place since
mid-1996, net interest income for the second quarter of 1997 would have
increased $75 million from the second quarter of 1996 and the net interest
margin would have been 4.15 percent.
o Noninterest income increased $122 million, or 9 percent, from the second
quarter of 1996. Excluding the effect of an $82 million gain from the sale
of a Hong Kong consumer and commercial finance subsidiary during the second
quarter of 1996, noninterest income would have increased $204 million, or
16 percent, from the second quarter of 1996. The second-quarter 1997
amounts included growth in other fees and commissions of $84 million,
primarily reflecting higher loan servicing fees. In addition, BAC
experienced a record quarter for trading income, which increased
$40 million, or 22 percent, from the second quarter of 1996. Furthermore,
net gain on sales of loans, primarily residential first mortgages,
increased $27 million from the comparable quarter last year reflecting
increased balance sheet management activities. These increases were
partially offset by a decrease of $29 million in private equity
investment activity income.
o Noninterest expense was $2,047 million, up $50 million from the same period
last year, and included $36 million of payments on trust preferred
securities. Without these payments, noninterest expense would have been
$2,011 million, an increase of $14 million, or less than 1 percent, from
the second quarter of 1996.
o The provision for credit losses was $250 million, up $30 million from the
previous quarter, but unchanged from the second quarter of 1996. Net credit
losses were $224 million for the second quarter of 1997, a decline of
$22 million from the second quarter of 1996, but up $20 million from the
first quarter of 1997.
o Nonaccrual assets were $861 million at June 30, 1997, a decrease of
$169 million, or 16 percent, from their March 31, 1997 level.
o In connection with BAC's ongoing efforts to effectively manage capital,
BAC repurchased 8.2 million shares of its common stock during the second
quarter of 1997 at an average per-share price of $58.02, which reduced
stockholders' equity by $475 million. These shares were repurchased on
the open market over 51 trading days and represented approximately 6
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 $2.8 billion at June 30, 1997.
(end of text, tables follow)
This earnings report and other material of interest to investors can be found on
the new shareholder resource section of BankAmerica's Internet web site
@http://www.BankAmerica.com/shareholder@
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 1
SUMMARY OF RESULTS AND STATISTICAL DATA
Second First Second
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1997 1997 1996
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 799 $ 780 $ 723
2 Earnings per common and common
equivalent share 1.07 1.03/b/ 0.92/b/
3 Earnings per common share --
assuming full dilution 1.07 1.03/b/ 0.92/b/
Rate of return (based on net income) on:
4 Average common equity 16.73% 16.50% 15.42%
5 Average total assets 1.26 1.25 1.21
6 Net interest margin/a/ 4.11 4.16 4.27
7 Full-time-equivalent staff
at period end (in thousands) 77.4 77.3 78.3
8 Employees at period
end (in thousands) 91.0 91.9 93.2
<CAPTION>
Six Months Ended
June 30
----------------
1997 1996
------ ------
<S> <C> <C>
9 Net income $1,579 $1,443
10 Earnings per common and common
equivalent share 2.10 1.82/b/
11 Earnings per common share--
assuming full dilution 2.09 1.81/b/
Rate of return (based on net income) on:
12 Average common equity 16.62% 15.31%
13 Average total assets 1.26 1.21
14 Net interest margin/a/ 4.13 4.32
- --------------------------------------------------------------------------------
</TABLE>
/a/The net interest margin is computed on a tax-equivalent basis. The
taxable-equivalent basis adjustments to net interest income were $6 million,
$6 million, and $1 million for the second quarter of 1997, the first quarter
of 1997, and the second quarter of 1996, respectively, and $12 million and
$6 million for the six-month periods ended June 30, 1997 and 1996,
respectively.
/b/Restated to reflect a two-for-one stock split effective June 2, 1997.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 2
SUMMARY OF RESULTS EXCLUDING THE EFFECTS
OF AMORTIZATION OF INTANGIBLES/a/
Second First Second
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1997 1997 1996
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 865 $ 846 $ 790
2 Cash earnings per common
and common equivalent share 1.16 1.12/b/ 1.01/b/
3 Rate of return on average
common equity 18.17% 17.96% 16.95%
<CAPTION>
Six Months Ended
June 30
-------------------
1997 1996
------ ------
<S> <C> <C>
4 Net income $1,711 $1,579
5 Cash earnings per common and common
equivalent share 2.28 2.00/b/
6 Rate of return on average
common equity 18.06% 16.85%
- --------------------------------------------------------------------------------
</TABLE>
/a/For purposes of this table, amortization amounts are related to those
intangibles that are deducted from Tier 1 capital under regulatory
guidelines. These amortization amounts were excluded from BAC's results and
totaled $66 million, $66 million, and $67 million for the second quarter of
1997, the first quarter of 1997, and the second quarter of 1996,
respectively, and $132 million and $136 million for the six-month periods
ended June 30, 1997 and 1996, respectively.
/b/Restated to reflect a two-for-one stock split effective June 2, 1997.
================================================================================
TABLE 3
TIER 1 CAPITAL GENERATION
<TABLE>
<CAPTION>
Six Months Ended
June 30
--------------------
(in millions) 1997 1996
------- -------
<S> <C> <C>
Generation:
1 Net income $ 1,579 $ 1,443
2 Amortization of intangibles 132 136
3 Common stock issuances and other 190 114
4 Trust preferred securities 396 -
------ -------
5 Total generation 2,297 1,693
Applications:
6 Common stock dividends (430) (393)
7 Preferred stock dividends (64) (98)
8 Common stock repurchased (950) (701)
9 Preferred stock redeemed (764)/a/ (399)
------ ------
10 Total applications (2,208) (1,591)
11 Capital attributed to growth
in risk-weighted assets (332)/b/ (505)
------ ------
12 Net capital applied $ (243) $ (403)
====== ======
- --------------------------------------------------------------------------------
</TABLE>
/a/Includes the announced redemption of BAC's Series L preferred stock for
$399 million.
/b/Amount is preliminary.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 4
STOCK AND CAPITAL DATA
(dollar amounts in millions, June 30 March 31 June 30
except per share data) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
1 Book value per common share $26.88 $26.25/a/ $24.82/a/
Common stock cash dividends:
2 Quarter ended 214 216 195
3 Year-to-date 430 216 393
Preferred stock cash dividends:
4 Quarter ended 30 34 45
5 Year-to-date 64 34 98
6 Number of common shares
outstanding (in thousands) 698,407 704,708/a/ 719,786/a/
Average number of common and
common equivalent shares
outstanding (in thousands):
7 Quarter ended 719,514 726,800/a/ 737,085/a/
8 Year-to-date 723,157 726,800/a/ 740,927/a/
Average number of common shares
outstanding -- assuming full
dilution (in thousands):
9 Quarter ended 722,179 726,800/a/ 737,182/a/
10 Year-to-date 724,490 726,800/a/ 742,139/a/
11 Common equity to total assets 7.27% 7.40% 7.48%
12 Total risk-based capital ratio 11.57/b/ 11.87 11.27
13 Tier 1 risk-based capital ratio 7.65/b/ 7.83 7.17
14 Total risk-based capital $ 25,915/b/ $ 26,251 $ 23,772
15 Risk-weighted assets 224,037/b/ 221,071 210,907
16 Tier 1 risk-based capital 17,145/b/ 17,319 15,119
- --------------------------------------------------------------------------------
</TABLE>
/a/Restated to reflect a two-for-one stock split effective June 2, 1997.
/b/Amounts are preliminary.
================================================================================
TABLE 5
SELECTED AVERAGE BALANCE SHEET COMPONENTS
<TABLE>
<CAPTION>
Second First Second
Quarter Quarter Quarter
(in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
1 Available-for-sale securities $ 11,277 $ 11,595 $ 10,976
2 Held-to-maturity securities 3,918 4,108 4,395
3 Loans 167,007 165,478 157,553
4 Earning assets 214,462 210,560 202,578
5 Total assets 255,131 252,105 241,056
6 Deposits 168,994 166,491 162,312
7 Interest-bearing liabilities 175,768 173,157 168,755
8 Common equity 18,459 18,324 17,703
9 Total equity 20,055 20,140 19,975
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 6
BUSINESS SECTORS
Six Months Ended June 30, 1997/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 $ 637 $ 93 $ 98 14.69% 55.58%
2 U.S. Corporate and
international banking 553 103 48 18.24 51.75
3 Middle-market banking 168 25 8 16.32 45.65
4 Commercial real estate 150 10 2 37.89 24.50
5 Wealth management 34 6 8 9.84 76.87
6 All other 37 17 4 NM NM
------ ---- ----
7 Total $1,579 $254 $168 16.62% 53.23%
====== ==== ====
<CAPTION>
Six Months Ended June 30, 1996/a/
-----------------------------------------
Return
Average Average on Expense
Net Total Total Common to
Income Assets Deposits Equity Revenue/b/
------ ------- -------- ------ -------
<S> <C> <C> <C> <C> <C>
1 Consumer banking $ 620 $ 90 $ 95 14.78% 57.31%
2 U.S. Corporate and
international banking 443 94 45 14.18 57.00
3 Middle-market banking 130 22 7 13.32 50.00
4 Commercial real estate 105 11 2 22.62 28.38
5 Wealth management 12 5 7 3.19 88.68
6 All other 133 17 5 NM NM
------ ---- ----
7 Total $1,443 $239 $161 15.31% 55.46%
====== ==== ====
- --------------------------------------------------------------------------------
</TABLE>
/a/Amounts are preliminary. For comparability purposes, both 1997 and 1996
amounts reflect BAC's business-sector allocation methodologies at June 30,
1997.
/b/Excludes net other real estate owned expense, amortization of intangibles,
and expenses associated with trust preferred securities.
NM - Not meaningful.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 7
TRADING-RELATED INCOME
Second First Second
Quarter Quarter Quarter
(in millions) 1997/a/ 1997 1996
------- ------- -------
<S> <C> <C> <C>
Trading income:
1 Interest rate $ 17 $ 12 $ 8
2 Foreign exchange 107 92 90
3 Debt instruments 94 84 80
---- ---- ----
4 Total trading income $218 $188 $178
==== ==== ====
Other trading-related income/b/:
5 Interest rate $ 12 $ 10 $ 7
6 Foreign exchange 2 4 7
7 Debt instruments 47 50 59
---- ---- ----
8 Total other trading-related
income $ 61 $ 64 $ 73
==== ==== ====
<CAPTION>
Six Months Ended
June 30
--------------------
1997/a/ 1996
------ ------
<S> <C> <C>
Trading income:
9 Interest rate $ 29 $ 20
10 Foreign exchange 199 188
11 Debt instruments 178 135
---- ----
12 Total trading income $406 $343
==== ====
Other trading-related income/b/:
13 Interest rate $ 22 $ 13
14 Foreign exchange 6 13
15 Debt instruments 97 103
---- ----
16 Total other trading-related
income $125 $129
==== ====
- --------------------------------------------------------------------------------
</TABLE>
/a/Detailed breakouts of total amounts are preliminary.
/b/Primarily includes the net interest revenue and expense associated
with the contracts.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 8
IMPACT OF CREDIT CARD SECURITIZATION
Second Quarter 1997/a/
-------------------------------------------
Before
(dollar amounts Credit Card Credit Card
in millions) Securitization Securitization Reported
-------------- -------------- --------
<S> <C> <C> <C>
Operating Results:
1 Net interest income $ 2,234 $ (40) $ 2,194
2 Credit card fees 100 (7) 93
3 Other noninterest income 1,306 43 /b/ 1,349
-------- ------- --------
4 Total revenue 3,640 (4) 3,636
5 Noninterest expense 2,047 - 2,047
-------- ------- --------
6 Income before provision
for credit losses and
income taxes 1,593 (4) 1,589
7 Provision for credit
losses 275 (25)/c/ 250
-------- ------- --------
8 Income before income
taxes $ 1,318 $ 21 $ 1,339
======== ======= ========
9 Net interest margin 4.15% (0.04)% 4.11%
Balance Sheet Data at
Period End:
10 Credit card loans
outstanding $ 9,845 $(2,221) $ 7,624
11 Total assets 260,584 (2,221) 258,363
Average Balance
Sheet Data:
12 Credit card loans 9,805 (1,587) 8,218
13 Earning assets 216,049 (1,587) 214,462
14 Total assets 256,718 (1,587) 255,131
15 Net credit losses - credit
card portfolio 149 (25) 124
Selected Financial Ratios:
16 Annualized ratio of net
credit losses on credit
card loans to average credit
card loans outstanding 6.10% (0.03)% 6.07%
17 Delinquent credit card
loan ratio(d) 2.71 (0.04) 2.67
- --------------------------------------------------------------------------------
</TABLE>
/a/Includes the impact of credit card securitizations since mid-1996. There was
a $750 million credit card securitization during the second quarter of 1997
and $1,471 million during the last half of 1996.
/b/Includes $21 million associated with the continued application of
Statement of Financial Accounting Standards No. 125, "Accounting
for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities," as amended.
/c/Represents the investors' share of charge-offs.
/d/60 days or more past due.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 9
LOAN OUTSTANDINGS
June 30 March 31 June 30
(in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
DOMESTIC
Consumer:
1 Residential first mortgages $ 35,709 $ 35,881 $ 38,012
2 Residential junior mortgages 15,154 14,857 14,386
3 Other installment 18,410 17,863 15,057
4 Credit card 7,624/a/ 8,365/a/ 9,342
5 Other individual lines of credit 1,961 1,939 1,824
6 Other 413 391 307
-------- -------- --------
7 Total consumer 79,271 79,296 78,928
Commercial:
8 Commercial and industrial 34,266 34,554 33,097
9 Loans secured by real estate 12,669 12,445 11,410
10 Financial institutions 2,947 3,232 3,075
11 Lease financing 2,809 2,790 2,019
12 Construction and development
loans secured by real estate 2,262 2,261 2,896
13 Loans for purchasing or carrying
securities 2,616 2,447 1,399
14 Agricultural 1,560 1,475 1,581
15 Other 1,738 1,450 1,146
-------- -------- --------
16 Total commercial 60,867 60,654 56,623
-------- -------- --------
17 Total domestic loans 140,138 139,950 135,551
FOREIGN
18 Commercial and industrial 17,762 17,540 15,958
19 Banks and other financial
institutions 4,818 3,526 4,077
20 Governments and official
institutions 851 1,008 1,015
21 Other 5,237 5,314 4,039
-------- -------- --------
22 Total foreign loans 28,668 27,388 25,089
-------- -------- --------
23 Total Loans $168,806 $167,338 $160,640
======== ======== ========
- --------------------------------------------------------------------------------
</TABLE>
/a/Excludes outstanding securitized credit card receivables of $2,221 million
and $1,471 million at June 30, 1997 and March 31, 1997, respectively. There
was a $750 million credit card securitization during the second quarter of
1997 and $1,471 million during the last half of 1996.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 10
SELECTED CREDIT QUALITY DATA
June 30 March 31 June 30
(dollar amounts in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
Nonaccrual assets:
1 Commercial and industrial $228 $ 276 $ 422
2 Commercial loans secured by real
estate 120 147 245
3 Construction and development
loans secured by real estate 59 104 346
4 Consumer 373 409 342
5 Foreign 81 94 133
---- ------ ------
6 Total nonaccrual assets $861 $1,030 $1,488
==== ====== ======
7 Restructured loans $302 $ 295 $ 103
8 Loans past due 90 days or more
and still accruing interest/a/ 214 218 389
9 Other real estate owned 242 281 437
10 Allowance for credit losses to
total loans 2.11% 2.11% 2.18%
11 Allowance for credit losses to
total nonaccrual assets 413.99 343.43 234.88
Annualized ratio of net credit
losses to average total loan
outstandings:
12 Quarter ended 0.54 0.50 0.63
13 Year-to-date 0.52 0.50 0.62
- --------------------------------------------------------------------------------
</TABLE>
/a/Includes consumer loans of $190 million, $189 million, and $311 million at
June 30, 1997, March 31, 1997, and June 30, 1996, respectively.
================================================================================
TABLE 11
ANALYSIS OF CHANGE IN NONACCRUAL ASSETS
<TABLE>
<CAPTION>
Second First
Quarter Quarter
(in millions) 1997 1997
-------- --------
<S> <C> <C>
1 Balance, beginning of period $1,030 $1,118
Additions:
2 Loans placed on nonaccrual status 103 108
Deductions:
3 Sales (103) (3)
4 Restored to accrual status (38) (75)
5 Foreclosures (1) (8)
6 Charge-offs (20) (10)
7 Other, primarily payments (110) (100)
------ ------
8 Balance, end of period $ 861 $1,030
====== ======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 12
NET CREDIT LOSSES (RECOVERIES)
Second First Second
Quarter Quarter Quarter
(in millions) 1997 1997 1996
------- ------- -------
<S> <C> <C> <C>
Domestic consumer:
1 Residential first mortgages $ 7 $ 7 $ 12
2 Residential junior mortgages 8 9 12
3 Other installment 49 59 43
4 Credit card 124 115 108
5 Other individual lines of credit 20 19 18
6 Other 4 4 2
Domestic commercial:
7 Commercial and industrial 19 - 29
8 Loans secured by real estate - (1) -
9 Construction and development
loans secured by real estate (8) (2) 13
10 Financial institutions, lease
financing, loans for
purchasing or carrying
securities, and agricultural (1) (2) 19
---- ---- ----
11 Total domestic 222 208 256
12 Foreign 2 (4) (10)
---- ---- ----
13 Total Net Credit Losses $224 $204 $246
==== ==== ====
</TABLE>
================================================================================
TABLE 13
DOMESTIC CONSUMER LOAN DELINQUENCY INFORMATION/a/
<TABLE>
<CAPTION>
June 30 March 31 June 30
(dollar amounts in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
Delinquent consumer loans:
1 Residential first mortgages $422 $463 $535
2 Residential junior mortgages 59 61 70
3 Credit card 204 216 204
4 Other 126 122 96
---- ---- ----
5 Total delinquent consumer loans $811 $862 $905
==== ==== ====
Delinquent consumer loan ratios/b/:
6 Residential first mortgages 1.18% 1.29% 1.41%
7 Residential junior mortgages 0.39 0.41 0.48
8 Credit Card 2.67 2.58 2.19
9 Other 0.61 0.60 0.56
10 Total delinquent consumer
loan ratio 1.02% 1.09% 1.15%
==== ==== ====
- --------------------------------------------------------------------------------
</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>
Second First Second
Quarter Quarter Quarter
(in millions) 1997 1997 1996
------- ------- -------
<S> <C> <C> <C>
INTEREST INCOME
1 Loans, including fees $3,497 $3,423 $3,307
2 Interest-bearing deposits in banks 105 99 96
3 Federal funds sold 9 8 7
4 Securities purchased under
resale agreements 180 155 176
5 Trading account assets 298 269 247
6 Available-for-sale and held-to-
maturity securities 270 286 293
------ ------ ------
7 TOTAL INTEREST INCOME 4,359 4,240 4,126
INTEREST EXPENSE
8 Deposits 1,424 1,366 1,307
9 Federal funds purchased 19 13 20
10 Securities sold under repurchase
agreements 178 149 176
11 Other short-term borrowings 287 275 208
12 Long-term debt 257 263 256
------ ------ ------
13 TOTAL INTEREST EXPENSE 2,165 2,066 1,967
------ ------ ------
14 NET INTEREST INCOME 2,194 2,174 2,159
15 Provision for credit losses 250 220 250
------ ------ ------
16 NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 1,944 1,954 1,909
NONINTEREST INCOME
17 Deposit account fees 361 360 346
18 Credit card fees 93 87 90
19 Trust fees 61 57 56
20 Other fees and commissions 417 375 333
21 Trading income 218 188 178
22 Private equity investment activities 83 99 112
23 Net gain on sales of loans 44 59 17
24 Net gain on sales of
subsidiaries and operations 27 13 83
25 Net gain on available-for-sale
securities 14 20 4
26 Other income 124 127 101
------ ------ ------
27 TOTAL NONINTEREST INCOME 1,442 1,385 1,320
NONINTEREST EXPENSE
28 Salaries 873 839 814
29 Employee benefits 189 189 213
30 Occupancy 183 186 186
31 Equipment 173 182 175
32 Communications 96 93 90
33 Amortization of intangibles 89 91 93
34 Professional services 82 75 80
35 Other expense 362 378 346
------ ------ ------
36 TOTAL NONINTEREST EXPENSE 2,047 2,033 1,997
------ ------ ------
37 INCOME BEFORE INCOME TAXES 1,339 1,306 1,232
38 Provision for income taxes 540 526 509
------ ------ ------
39 NET INCOME $ 799 $ 780 $ 723
====== ====== ======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended
June 30
------------------
(in millions) 1997 1996
------- -------
<S> <C> <C>
INTEREST INCOME
1 Loans, including fees $6,920 $6,604
2 Interest-bearing deposits in banks 204 213
3 Federal funds sold 17 13
4 Securities purchased under
resale agreements 335 331
5 Trading account assets 567 463
6 Available-for-sale and held-to-
maturity securities 556 591
------ ------
7 TOTAL INTEREST INCOME 8,599 8,215
INTEREST EXPENSE
8 Deposits 2,790 2,621
9 Federal funds purchased 32 42
10 Securities sold under repurchase
agreements 327 339
11 Other short-term borrowings 562 386
12 Long-term debt 520 522
------ ------
13 TOTAL INTEREST EXPENSE 4,231 3,910
------ ------
14 NET INTEREST INCOME 4,368 4,305
15 Provision for credit losses 470 430
------ ------
16 NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 3,898 3,875
NONINTEREST INCOME
17 Deposit account fees 721 690
18 Credit card fees 180 169
19 Trust fees 118 119
20 Other fees and commissions 792 653
21 Trading income 406 343
22 Private equity investment activities 182 222
23 Net gain on sales of loans 103 44
24 Net gain on sales of
subsidiaries and operations 40 134
25 Net gain on available-for-sale
securities 34 34
26 Other income 251 186
------ ------
27 TOTAL NONINTEREST INCOME 2,827 2,594
NONINTEREST EXPENSE
28 Salaries 1,712 1,635
29 Employee benefits 378 415
30 Occupancy 369 376
31 Equipment 355 338
32 Communications 189 182
33 Amortization of intangibles 180 188
34 Professional services 157 161
35 Other expense 740 715
------ ------
36 TOTAL NONINTEREST EXPENSE 4,080 4,010
------ ------
37 INCOME BEFORE INCOME TAXES 2,645 2,459
38 Provision for income taxes 1,066 1,016
------ ------
39 NET INCOME $1,579 $1,443
====== ======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
June 30 March 31 June 30
(in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
ASSETS
1 Cash and due from banks $ 14,884 $ 13,561 $ 12,478
2 Interest-bearing deposits in banks 7,037 6,390 5,194
3 Federal funds sold 270 153 276
4 Securities purchased under resale
agreements 7,272 7,730 7,001
5 Trading account assets 16,765 12,931 12,633
6 Available-for-sale securities 11,959 11,532 10,964
7 Held-to-maturity securities 3,858 3,972 4,280
8 Loans 168,806 167,338 160,640
9 Less: Allowance for credit losses 3,563 3,538 3,495
-------- -------- --------
10 Net loans 165,243 163,800 157,145
11 Customers' acceptance liability 3,230 3,229 2,837
12 Accrued interest receivable 1,567 1,441 1,451
13 Goodwill, net 3,842 3,888 4,066
14 Identifiable intangibles, net 1,499 1,554 1,708
15 Unrealized gains on off-balance-
sheet instruments 7,319 7,813 7,297
16 Premises and equipment, net 3,944 3,985 3,980
17 Other assets 9,674 7,925 7,531
-------- -------- --------
18 TOTAL ASSETS $258,363 $249,904 $238,841
======== ======== ========
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits in domestic offices:
19 Interest-bearing $ 83,308 $ 84,071 $ 83,954
20 Noninterest-bearing 41,434 39,561 34,737
Deposits in foreign offices:
21 Interest-bearing 46,667 43,854 41,444
22 Noninterest-bearing 1,759 1,513 1,710
-------- -------- --------
23 Total deposits 173,168 168,999 161,845
24 Federal funds purchased 1,730 730 2,740
25 Securities sold under repurchase
agreements 9,699 7,124 8,861
26 Other short-term borrowings 18,327 18,883 14,530
27 Acceptances outstanding 3,230 3,229 2,837
28 Accrued interest payable 958 921 833
29 Unrealized losses on off-balance-
sheet instruments 7,157 7,473 7,310
30 Other liabilities 7,117 5,850 4,824
31 Long-term debt 14,736 14,725 14,953
-------- -------- --------
32 TOTAL LIABILITIES 236,122 227,934 218,733
33 Corporation obligated mandatorily
redeemable preferred securities
of subsidiary trusts holding
solely junior subordinated
deferrable interest debentures
of the corporation (trust
preferred securities) 1,873 1,873 -
STOCKHOLDERS' EQUITY
34 Preferred stock 1,596 1,596 2,242
35 Common stock 1,210/a/ 605 605
36 Additional paid-in capital 7,872/a/ 8,473 8,439
37 Retained earnings 12,598 12,029 10,544
38 Net unrealized gain (loss) on
available-for-sale securities 13 (90) (79)
39 Common stock in treasury, at cost (2,921) (2,516) (1,643)
-------- -------- --------
40 TOTAL STOCKHOLDERS' EQUITY 20,368 20,097 20,108
-------- -------- --------
41 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $258,363 $249,904 $238,841
- --------------------------------------------------------------------------------
</TABLE>
/a/Reflects a two-for-one stock split effective June 2, 1997.
