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 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 April 16, 1997 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 16,
1997 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 16, 1997 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
April 16, 1997 titled "BankAmerica First Quarter
Earnings."
4063959
<PAGE>
Exhibit 99
[BANKAMERICA CORPORATION LOGO APPEARS HERE] News
For release:
Contact: Peter Magnani
(415) 953-2418
BANKAMERICA FIRST QUARTER EARNINGS
SAN FRANCISCO, April 16, 1997 -- BankAmerica Corporation (BAC) today
reported first-quarter 1997 earnings per share and net income of $2.05 and
$780 million, respectively, up from $1.79 and $720 million for the same period
a year ago. The return on average common equity for the first quarter of 1997
was 16.50 percent, an increase of 131 basis points from the same period a
year ago.
"We are pleased with our first-quarter results, particularly with the
improvement in the return on average common equity," David A. Coulter, Chairman
and Chief Executive Officer, said. "We continue to focus on the fundamentals,
including effective operating leverage, prudent risk management, and
disciplined capital management." Coulter cited the following first-quarter
activities as examples of continuing progress in the corporation's efforts
toward strategic management of capital:
o The establishment of a relationship with D.E. Shaw which
significantly increases BAC's ability to offer equity-related
products to its customers;
o The announcement of the intention to sell its consumer finance
business, Security Pacific Financial Services;
o The sale of $3.3 billion of residential first mortgages;
- more -
<PAGE>
o The extension of the stock repurchase program authorizing the repurchase
of an additional $3 billion of common stock and the redemption of an
additional $1 billion of preferred stock by the end of 1998;
o The redemption of Series H and Series K preferred stock; and
o A 13 percent increase in the quarterly dividend on common stock.
FINANCIAL HIGHLIGHTS:
o Net interest income was up $28 million from the first quarter of 1996.
BAC's net interest margin for the first quarter of 1997 was
4.16 percent, down 20 basis points from the comparable period a year
ago, but up 3 basis points from the previous quarter. Excluding the
effects of the credit card securitizations during the second half
of 1996, net interest income for the first quarter of 1997 would have
increased $63 million from the first quarter of 1996 and the net
interest margin would have been 4.20 percent.
o Noninterest income increased $111 million, or 9 percent, from the first
quarter of 1996. Excluding the effect of a $50 million pre-tax gain
associated with the sale of certain components of BAC's Institutional
Trust and Securities Services business during the first quarter of 1996,
noninterest income would have increased $161 million, or 13 percent,
from the first quarter of 1996. The first-quarter 1997 amounts included
growth in other fees and commissions of $55 million, primarily due to
higher loan servicing fees. In addition, the net gain on sales of
loans, primarily residential first mortgages, rose $33 million.
Furthermore, there were increases of $23 million in both trading income
and income from equity investments in affiliates and joint ventures from
the comparable quarter last year.
o Noninterest expense was $2,033 million, up $20 million from the first
quarter of 1996, primarily due to payments on trust preferred
securities. Without these payments, noninterest expense would have been
$1,998 million, a decrease of $15 million from the first quarter of
1996.
- Page 2 -
<PAGE>
o The provision for credit losses was $220 million, up $40 million from
the first quarter of 1996, but unchanged from the previous quarter. Net
credit losses were $204 million for the first quarter of 1997, a decline
of $35 million, or 15 percent, from the first quarter of 1996.
o Nonaccrual assets were $1,030 million at March 31, 1997, a decrease of
$88 million, or 8 percent, from their December 31, 1996 level.
o In connection with BAC's ongoing efforts to effectively manage capital,
BAC repurchased 4.3 million shares of its common stock during the first
quarter of 1997 at an average per-share price of $110.48, which reduced
stockholders' equity by $475 million. These shares were repurchased on
the open market over 47 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 $3.3 billion at March 31, 1997.
o On January 15, 1997, BAC redeemed all outstanding shares of its
9% Cumulative Preferred Stock, Series H, which reduced stockholders'
equity by $281 million. In addition, on February 15, 1997, BAC
redeemed all outstanding shares of its 8 3/8% Cumulative Preferred
Stock, Series K, which reduced stockholders' equity by $365 million.
(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
First Fourth First
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1997 1996 1996
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 780 $ 747 $ 720
2 Earnings per common and common
equivalent share 2.05 1.93 1.79
3 Earnings per common share --
assuming full dilution 2.05 1.92 1.79
Rate of return (based
on net income) on:
4 Average common equity 16.50% 15.24% 15.19%
5 Average total assets 1.25 1.21 1.22
6 Net interest margin/a/ 4.16 4.13 4.36
7 Full-time-equivalent staff
at period end (in thousands) 77.3 78.0 78.7
8 Employees at period
end (in thousands) 91.9 92.1 94.1
- --------------------------------------------------------------------------------
</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 $5 million for the first quarter of 1997,
the fourth quarter of 1996, and the first quarter of 1996, respectively.
================================================================================
TABLE 2
SUMMARY OF RESULTS EXCLUDING THE EFFECTS
OF AMORTIZATION OF INTANGIBLES/a/
<TABLE>
<CAPTION>
First Fourth First
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1997 1996 1996
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 844 $ 815 $ 789
2 Cash earnings per common
and common equivalent share 2.23 2.11 1.98
3 Rate of return on average
common equity 17.92% 16.71% 16.76%
- --------------------------------------------------------------------------------
</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 $64 million, $68 million, and $69 million for the first
quarter of 1997, the fourth quarter of 1996, and the first quarter of 1996,
respectively.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 3
TIER 1 CAPITAL GENERATION
First Quarter
-------------------
(in millions) 1997 1996
------- -------
<S> <C> <C>
Generation:
1 Net income $ 780 $ 720
2 Amortization of intangibles 64 69
3 Common stock issuances and other 97 67
4 Minority interest/a/ 398 -
------ -----
5 Total generation 1,339 856
Applications:
6 Common stock dividends (216) (198)
7 Preferred stock dividends (34) (53)
8 Common stock repurchased (475) (316)
9 Preferred stock repurchased (365) (218)
------ -----
10 Total applications (1,090) (785)
11 Capital attributed to growth
in risk-weighted assets (102)/b/ (35)
12 Net capital generated $ 147 $ 36
====== =====
- --------------------------------------------------------------------------------
</TABLE>
/a/Represents $396 million of trust preferred securities and $2 million
related to BA Merchant Services, Inc.
/b/Amount is preliminary.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 4
STOCK AND CAPITAL DATA
(dollar amounts in millions, March 31 Dec. 31 March 31
except per share data) 1997 1996 1996
-------- ------- --------
<S> <C> <C> <C>
1 Book value per common share $ 52.51 $ 51.99 $ 48.74
2 Common stock cash dividends
for the quarter ended 216 193 198
3 Preferred stock cash dividends
for the quarter ended 34 44 53
4 Number of common shares
outstanding (in thousands) 352,354 355,267 364,082
5 Average number of common and
common equivalent shares
outstanding for the quarter
ended (in thousands) 363,400 365,511 372,385
6 Average number of common
shares outstanding -- assuming
full dilution for the quarter
ended (in thousands) 363,400 366,208 373,548
7 Common equity to total assets 7.40% 7.37% 7.58%
8 Total risk-based capital ratio 11.88/a/ 11.79 11.48
9 Tier 1 risk-based capital ratio 7.84/a/ 7.77 7.30
10 Total risk-based capital $ 26,248/a/ $ 25,880 $ 23,465
11 Risk-weighted assets 220,876/a/ 219,483 204,480
12 Tier 1 risk-based capital 17,319/a/ 17,044 14,928
- --------------------------------------------------------------------------------
</TABLE>
/a/Amounts are preliminary.
================================================================================
TABLE 5
SELECTED AVERAGE BALANCE SHEET COMPONENTS
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
(in millions) 1997 1996 1996
-------- -------- --------
<S> <C> <C> <C>
1 Available-for-sale securities $ 11,595 $ 11,763 $ 11,419
2 Held-to-maturity securities 4,108 4,160 4,612
3 Loans 165,478 161,545 154,929
4 Earning assets 210,560 206,315 197,712
5 Total assets 252,105 245,477 237,083
6 Deposits 166,491 162,813 159,543
7 Interest-bearing liabilities 173,157 170,046 163,842
8 Common equity 18,324 18,374 17,665
9 Total equity 20,140 20,616 20,281
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 6
BUSINESS SECTORS
First Quarter 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 U.S. Corporate and
international banking $292 $101 $ 48 19.13% 50.81%
2 Consumer banking 292 95 97 13.38 56.64
3 Middle-market banking 88 24 8 17.48 46.76
4 Commercial real estate 75 10 2 34.27 27.22
5 Wealth management 24 6 7 16.20 69.64
6 All other 9 16 4 NM NM
---- ---- ----
7 Total $780 $252 $166 16.50% 53.53%
==== ==== ====
<CAPTION>
First Quarter 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 U.S. Corporate and
international banking $263 $ 92 $ 44 17.68% 52.58%
2 Consumer banking 260 91 95 11.99 60.11
3 Middle-market banking 69 22 7 13.38 48.89
4 Commercial real estate 62 10 2 23.92 29.50
5 Wealth management 17 5 7 10.43 76.94
6 All other 49 17 5 NM NM
---- ---- ----
7 Total $720 $237 $160 15.19% 55.83%
==== ==== ====
- --------------------------------------------------------------------------------
</TABLE>
/a/Amounts are preliminary. For comparability purposes, both 1997 and
1996 amounts reflect BAC's business-sector allocation methodologies at
March 31, 1997.
/b/Excludes net other real estate owned expense, amortization of intangibles,
and payments related to trust preferred securities.
NM - Not meaningful.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 7
TRADING-RELATED INCOME
First Fourth First
Quarter Quarter Quarter
(in millions) 1997/a/ 1996 1996
------- ------- -------
<S> <C> <C> <C>
Trading income:
1 Interest rate $ 12 $ 19 $ 12
2 Foreign exchange 92 64 98
3 Debt instruments 84 51 55
---- ---- ----
4 Total trading income $188 $134 $165
==== ==== ====
Other trading-related income/b/:
5 Interest rate $ 10 $13 $ 6
6 Foreign exchange 4 3 6
7 Debt instruments 59 53 44
---- ---- ----
8 Total other trading-related
income $ 73 $ 69 $ 56
==== ==== ====
- --------------------------------------------------------------------------------
</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
IMPACT OF CREDIT CARD SECURITIZATION
First 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 $ 2,209 $ (35) $ 2,174
2 Credit card fees 93 (6) 87
3 Other noninterest income 1,267 31 /b/ 1,298
-------- ------- --------
4 Total revenue 3,569 (10) 3,559
5 Noninterest expense 2,033 - 2,033
-------- ------- --------
6 Income before provision
for credit losses and
income taxes 1,536 (10) 1,526
7 Provision for credit
losses 243 (23)/c/ 220
-------- ------- --------
8 Income before income
taxes $ 1,293 $ 13 $ 1,306
======== ======= ========
9 Net interest margin 4.20% (0.04)% 4.16%
Balance Sheet Data at
Period End:
10 Credit card loans
outstanding $ 9,836 $(1,471) $ 8,365
11 Total assets 251,375 (1,471) 249,904
Average Balance
Sheet Data:
12 Credit card loans 9,870 (1,471) 8,399
13 Earning assets 212,031 (1,471) 210,560
14 Total assets 253,576 (1,471) 252,105
15 Net credit losses - credit
card portfolio 138 (23) 115
Selected Financial Ratios:
16 Annualized ratio of net
credit losses on credit
card loans to average credit
card loans outstanding 5.69% (0.12)% 5.57%
17 Delinquent credit card
loan ratio/d/ 2.60 (0.02) 2.58
- --------------------------------------------------------------------------------
</TABLE>
/a/Includes the impact of credit card securitizations in 1996. There were
no credit card securitizations during the first quarter of 1997.
/b/Includes $13 million associated with the adoption 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
March 31 Dec. 31 March 31
(in millions) 1997 1996 1996
-------- -------- --------
<S> <C> <C> <C>
DOMESTIC
Consumer:
1 Residential first mortgages $ 35,881 $ 37,459 $ 37,701
2 Residential junior mortgages 14,857 14,743 13,889
3 Other installment 17,863 16,979 14,682
4 Credit card 8,365/a/ 8,707/a/ 8,919
5 Other individual lines of credit 1,939 1,948 1,845
6 Other 391 401 304
-------- -------- --------
7 Total consumer 79,296 80,237 77,340
Commercial:
8 Commercial and industrial 34,554 33,404 32,193
9 Loans secured by real estate 12,445 12,488 11,052
10 Financial institutions 3,232 3,109 2,705
11 Lease financing 2,790 2,542 1,941
12 Loans for purchasing or carrying
securities 2,447 1,941 1,402
13 Construction and development
loans secured by real estate 2,261 2,252 3,107
14 Agricultural 1,475 1,696 1,585
15 Other 1,450 1,270 1,211
-------- -------- --------
16 Total commercial 60,654 58,702 55,196
-------- -------- --------
17 Total domestic loans 139,950 138,939 132,536
FOREIGN
18 Commercial and industrial 17,540 16,394 15,183
19 Banks and other financial
institutions 3,526 3,958 2,916
20 Governments and official
institutions 1,008 970 1,334
21 Other 5,314 5,154 4,186
-------- -------- --------
22 Total foreign loans 27,388 26,476 23,619
-------- -------- --------
23 Total Loans $167,338 $165,415 $156,155
======== ======== ========
- --------------------------------------------------------------------------------
</TABLE>
/a/Excludes securitized credit card receivables of $1,471 million at
December 31, 1996. There were no credit card securitizations during the
first quarter of 1997.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 10
SELECTED CREDIT QUALITY DATA
March 31 Dec. 31 March 31
(dollar amounts in millions) 1997 1996 1996
-------- -------- --------
<S> <C> <C> <C>
Nonaccrual assets:
1 Commercial and industrial $ 276 $ 289 $ 515
2 Commercial loans secured by real
estate 147 206 251
3 Construction and development
loans secured by real estate 104 95 417
4 Consumer 409 415/a/ 373
5 Foreign 94 113 141
------ ------ ------
6 Total nonaccrual assets $1,030 $1,118 $1,697
====== ====== ======
7 Restructured loans $ 295 $ 302 $ 91
8 Loans past due 90 days or more
and still accruing interest/b/ 218 235/a/ 360
9 Other real estate owned 281 353 492
10 Allowance for credit losses to
total loans 2.11% 2.13% 2.24%
11 Allowance for credit losses to
total nonaccrual assets 343.43 315.11 206.01
12 Annualized ratio of net credit
losses to average total loan
outstandings for the quarter ended 0.50 0.51 0.62
- --------------------------------------------------------------------------------
</TABLE>
/a/During the fourth quarter of 1996, BAC changed the past due period by which
residential real estate loans and consumer loans that are collateralized
by junior mortgages on residential real estate are considered nonaccrual.
The maximum period that loans can be past due before being placed on
nonaccrual status was reduced from 180 days to 90 days. As a result of
this change, nonaccrual loans increased by $144 million, while loans
past due 90 days or more and still accruing interest decreased by the same
amount.
/b/Includes consumer loans of $189 million, $187 million, and $336 million at
March 31, 1997, December 31, 1996, and March 31, 1996, respectively.
================================================================================
TABLE 11
ANALYSIS OF CHANGE IN NONACCRUAL ASSETS
<TABLE>
<CAPTION>
First
Quarter
(in millions) 1997
-------
<S> <C>
1 Balance, beginning of period $1,118
Additions:
2 Loans placed on nonaccrual status 108
Deductions:
3 Sales (3)
4 Restored to accrual status (75)
5 Foreclosures (8)
6 Charge-offs (10)
7 Other, primarily payments (100)
------
8 Balance, end of period $1,030
======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 12
NET CREDIT LOSSES (RECOVERIES)
First Fourth First
Quarter Quarter Quarter
(in millions) 1997 1996 1996
------- ------- -------
<S> <C> <C> <C>
Domestic consumer:
1 Residential first mortgages $ 7 $ 7 $ 11
2 Residential junior mortgages 9 12 16
3 Other installment 59 64 42
4 Credit card 115 104 103
5 Other individual lines of credit 19 17 16
6 Other 4 4 3
Domestic commercial:
7 Commercial and industrial - - 12
8 Loans secured by real estate (1) (3) 8
9 Construction and development
loans secured by real estate (2) 1 20
10 Financial institutions, lease
financing, loans for
purchasing or carrying
securities, and agricultural (2) 1 20
---- ---- ----
11 Total domestic 208 207 251
12 Foreign (4) - (12)
---- ---- ----
13 Total Net Credit Losses $204 $207 $239
==== ==== ====
</TABLE>
================================================================================
<TABLE>
<CAPTION>
TABLE 13
DOMESTIC CONSUMER LOAN DELINQUENCY INFORMATION/a/
March 31 Dec. 31 March 31
(dollar amounts in millions) 1997 1996 1996
-------- -------- --------
<S> <C> <C> <C>
Delinquent consumer loans:
1 Residential first mortgages $463 $477 $609
2 Residential junior mortgages 61 62 82
3 Credit card 216 206 199
4 Other 122 129 94
---- ---- ----
5 Total delinquent consumer loans $862 $874 $984
==== ==== ====
Delinquent consumer loan ratios/b/:
6 Residential first mortgages 1.29% 1.27% 1.61%
7 Residential junior mortgages 0.41 0.42 0.59
8 Credit Card 2.58 2.36 2.23
9 Other 0.60 0.67 0.56
10 Total delinquent consumer
loan ratio 1.09% 1.09% 1.27%
==== ==== ====
- --------------------------------------------------------------------------------
</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>
First Fourth First
Quarter Quarter Quarter
(in millions) 1997 1996 1996
------- ------- -------
<S> <C> <C> <C>
INTEREST INCOME
1 Loans, including fees $3,423 $3,388 $3,297
2 Interest-bearing deposits in banks 99 145 117
3 Federal funds sold 8 7 6
4 Securities purchased under
resale agreements 155 144 155
5 Trading account assets 269 270 216
6 Available-for-sale and held-to-
maturity securities 286 284 298
------ ------ ------
7 TOTAL INTEREST INCOME 4,240 4,238 4,089
INTEREST EXPENSE
8 Deposits 1,366 1,406 1,314
9 Federal funds purchased 13 20 22
10 Securities sold under repurchase
agreements 149 155 163
11 Other short-term borrowings 275 254 178
12 Long-term debt 263 273 266
------ ------ ------
13 TOTAL INTEREST EXPENSE 2,066 2,108 1,943
------ ------ ------
14 NET INTEREST INCOME 2,174 2,130 2,146
15 Provision for credit losses 220 220 180
------ ------ ------
16 NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 1,954 1,910 1,966
NONINTEREST INCOME
17 Deposit account fees 360 364 344
18 Credit card fees 87 94 79
19 Trust fees 57 57 63
20 Other fees and commissions 375 370 320
21 Trading income 188 134 165
22 Private equity investment activities 99 108 110
23 Net gain on sales of loans 59 20 26
24 Net gain on available-for-sale
securities 20 20 30
25 Gain on issuance of
subsidiary's stock - 147 -
26 Other income 140 185 137
------ ------ ------
27 TOTAL NONINTEREST INCOME 1,385 1,499 1,274
NONINTEREST EXPENSE
28 Salaries 839 834 821
29 Employee benefits 189 167 202
30 Occupancy 186 193 190
31 Equipment 182 184 163
32 Communications 93 92 92
33 Amortization of intangibles 91 92 95
34 Professional services 75 95 81
35 Restructuring charges - 280 -
36 Other expense 378 313 369
------ ------ ------
37 TOTAL NONINTEREST EXPENSE 2,033 2,250 2,013
------ ------ ------
38 INCOME BEFORE INCOME TAXES 1,306 1,159 1,227
39 Provision for income taxes 526 412 507
------ ------ ------
40 NET INCOME $ 780 $ 747 $ 720
====== ====== ======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
March 31 Dec. 31 March 31
(in millions) 1997 1996 1996
-------- -------- --------
<S> <C> <C> <C>
ASSETS
1 Cash and due from banks $ 13,561 $ 16,223 $ 12,870
2 Interest-bearing deposits in banks 6,390 5,708 5,585
3 Federal funds sold 153 134 143
4 Securities purchased under resale
agreements 7,730 7,275 6,198
5 Trading account assets 12,931 12,205 11,215
6 Available-for-sale securities 11,532 12,113 11,287
7 Held-to-maturity securities 3,972 4,138 4,523
8 Loans 167,338 165,415 156,155
9 Less: Allowance for credit losses 3,538 3,523 3,496
-------- -------- --------
10 Net loans 163,800 161,892 152,659
11 Customers' acceptance liability 3,229 2,861 2,761
12 Accrued interest receivable 1,441 1,441 1,469
13 Goodwill, net 3,888 3,938 4,115
14 Identifiable intangibles, net 1,554 1,616 1,753
15 Unrealized gains on off-balance-
sheet instruments 7,813 7,682 7,551
16 Premises and equipment, net 3,985 3,987 4,010
17 Other assets 7,925 9,540 8,104
-------- -------- --------
18 TOTAL ASSETS $249,904 $250,753 $234,243
======== ======== ========
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits in domestic offices:
19 Interest-bearing $ 84,071 $ 84,133 $ 84,314
20 Noninterest-bearing 39,561 39,694 34,570
Deposits in foreign offices:
21 Interest-bearing 43,854 42,732 40,127
22 Noninterest-bearing 1,513 1,456 1,506
-------- -------- --------
23 Total deposits 168,999 168,015 160,517
24 Federal funds purchased 730 2,176 2,125
25 Securities sold under repurchase
agreements 7,124 7,644 7,640
26 Other short-term borrowings 18,883 17,566 11,523
27 Acceptances outstanding 3,229 2,861 2,761
28 Accrued interest payable 921 879 842
29 Unrealized losses on off-balance-
sheet instruments 7,473 7,633 7,719
30 Other liabilities 5,850 6,004 5,875
31 Long-term debt 14,725 15,785 15,074
-------- -------- --------
32 TOTAL LIABILITIES 227,934 228,563 214,076
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 1,477 -
STOCKHOLDERS' EQUITY
34 Preferred stock 1,596 2,242 2,423
35 Common stock 605 605 604
36 Additional paid-in capital 8,473 8,467 8,384
37 Retained earnings 12,029 11,500 10,067
38 Net unrealized gain (loss) on
available-for-sale securities
and servicing assets (90) 32 (56)
39 Common stock in treasury, at cost (2,516) (2,133) (1,255)
-------- -------- --------
40 TOTAL STOCKHOLDERS' EQUITY 20,097 20,713 20,167
-------- -------- --------
41 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $249,904 $250,753 $234,243
======== ======== ========
</TABLE>
