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 15, 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)
27643
<PAGE>
Item 5. Other Events.
------------
Attached hereto as Exhibit 99 is a copy of BankAmerica
Corporation's press release dated October 15, 1997 titled "BankAmerica Third
Quarter Earnings."
Item 7. Financial Statements, Pro Forma
-------------------------------
Financial Information and Exhibits.
----------------------------------
/c/ Exhibits
Exhibit
Number Description
- ------- -----------
99 BankAmerica Corporation press release dated
October 15, 1997 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 15, 1997 By /s/ JOHN J. HIGGINS
----------------------------
John J. Higgins
Executive Vice President
and Chief Accounting Officer
27643 2
EXHIBIT INDEX
Exhibit
Number Description
- ------- -----------
99 BankAmerica Corporation press release dated
October 15, 1997 titled "BankAmerica Third Quarter
Earnings."
<PAGE>
Exhibit 99
[BANKMERICA CORPORATION LOGO APPEARS HERE]
BankAmerica Corporation News
For release:
Contact: Mike Zampa
(415) 622-4524
BANKAMERICA THIRD QUARTER EARNINGS
SAN FRANCISCO, October 15, 1997 -- BankAmerica Corporation (BAC) today
reported third-quarter 1997 fully-diluted earnings per share of $1.11, up 28
percent from $0.87 for the same period a year ago. Net income for the period was
$819 million, up 20 percent from $683 million for the third quarter of 1996. The
return on average common equity for the third quarter of 1997 was 16.82 percent,
an increase of 266 basis points from the same period a year ago and 9 basis
points from the second quarter of 1997.
BAC's fully-diluted earnings per share for the first nine months of 1997
were $3.20, an increase of 19 percent from $2.69 for the first nine months of
1996. Net income for the first nine months of 1997 was $2,398 million, an
increase of 13 percent from $2,126 million for the first nine months of 1996.
The return on average common equity for the first nine months of 1997 was 16.69
percent, an increase of 177 basis points from the same period last year.
Cash earnings per share for the third quarter of 1997 were $1.20, up 24
percent from $0.97 for the third quarter of 1996. Cash earnings per share for
the first nine months of 1997 were $3.48, up 17 percent from $2.97 for the first
nine 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 produced solid results by concentrating on operating
leverage--which is achieved when revenues increase significantly faster than
expenses," David A. Coulter, Chairman and Chief Executive Officer, said. "I was
pleased with the increase in revenue growth resulting from strong capital market
activities, a strengthening California economy and numerous marketing
initiatives. At the same time we have continued to effectively manage our
capital."
Coulter cited the following examples of managing capital since the end of
the second quarter of 1997:
- more -
<PAGE>
o The completion of the sale of our consumer finance company, Security
Pacific Financial Services Inc.;
o The completion of the Robertson Stephens and Company
acquisition on October 1;
o The decisions, announced today, to exit our Midwest retail facilities
and to sell BA Housing Services;
o The securitization of $750 million of credit card receivables in the
third quarter of 1997;
o The sale of $3.2 billion of residential first mortgages;
o The redemptions of Series L and M preferred stock; and also the planned
redemption of Series N preferred stock announced on October 6, which
when redeemed will reduce stockholders' equity by $234 million.
FINANCIAL HIGHLIGHTS:
o Net interest income was up $42 million from the third quarter of 1996.
BAC's net interest margin for the third quarter of 1997 was 4.06
percent, down 11 basis points from the comparable period a year ago.
o Noninterest income increased $351 million from the third quarter of
1996. Included in noninterest income for the third quarter of 1997 was
a $246 million gain associated with the previously announced sale of
Security Pacific Financial Services Inc. The effect of this gain was
partially offset by charges of approximately $112 million for asset
dispositions, personnel expenses, and other costs associated primarily
with the decision to exit Midwest retail facilities. Excluding
the effects of these items, noninterest income would have been
$1,536 million, or an increase of $217 million over the same
period in 1996. The increase primarily relates to a strong quarter of
trading and equity investment income and increased revenues from fees
and commissions.
o Noninterest expense was $2,232 million, an increase of $151 million
from the third quarter of 1996. Included in noninterest expense for the
third quarter of 1997 were charges associated with multiple legal
matters, writedowns on corporate real estate, and contributions to the
BA Foundation. Included in noninterest expense for the
- Page 2 -
<PAGE>
third quarter of 1996 was a one-time assessment of $82 million
associated with the recapitalization of the Savings Association
Insurance Fund (SAIF). Without these items, noninterest expense would
have been $2,092 million for the third quarter of 1997 compared to
$1,999 million for the third quarter of last year, or an increase of
$93 million. This increase was principally attributable to increased
personnel expense of $56 million, primarily associated with variable
pay, and to expenses associated with trust preferred securities of
$36 million.
o The provision for credit losses was $260 million, up $10 million from
the previous quarter and $25 million from the third quarter of 1996.
Net credit losses were $259 million for the third quarter of 1997, an
increase of $35 million and $33 million from the second quarter of 1997
and the third quarter of 1996, respectively.
o Nonaccrual assets were $930 million at September 30, 1997, an increase
of $69 million, or 8 percent, from their June 30, 1997 level, but
decreased $189 million, or 17 percent, from their September 30, 1996
level.
o In connection with BAC's ongoing efforts to effectively manage capital,
BAC repurchased 7.5 million shares of its common stock during the third
quarter of 1997 at an average per-share price of $70.22, which reduced
stockholders' equity by $525 million. These shares were repurchased on
the open market over 60 trading days and represented approximately
7 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 $2.3 billion at September 30, 1997.
o On July 14, 1997, BAC redeemed all outstanding shares of its 8.16%
Cumulative Preferred Stock, Series L, which reduced stockholders'
equity by $399 million. In addition, on September 30, 1997, BAC
redeemed all outstanding shares of its 7 7/8% Cumulative Preferred
Stock, Series M, which reduced stockholders' equity by $349 million.
(end of text, tables follow)
This earnings report and other material of interest to investors
can be found on the new shareholder resources section of BankAmerica's
Internet web site @http://www.BankAmerica.com/shareholder@
- 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) 1997 1997 1996/c/
-------- -------- -------
<S> <C> <C> <C>
1 Net income $ 819 $ 799 $ 683
2 Earnings per common and common
equivalent share 1.11 1.07 0.87/b/
3 Earnings per common share --
assuming full dilution 1.11 1.07 0.87/b/
Rate of return (based on net income) on:
4 Average common equity 16.82% 16.73% 14.16%
5 Average total assets 1.26 1.26 1.12
6 Net interest margin/a/ 4.06 4.11 4.17
7 Full-time-equivalent staff
at period end (in thousands) 76.0 77.4 78.2
8 Employees at period
end (in thousands) 89.5 91.0 92.7
<CAPTION>
Nine Months Ended
September 30
--------------------
1997 1996/c/
------- ------
<S> <C> <C>
9 Net income $2,398 $2,126
10 Earnings per common and common
equivalent share 3.20 2.69/b/
11 Earnings per common share --
assuming full dilution 3.20 2.69/b/
Rate of return (based on net income) on:
12 Average common equity 16.69% 14.92%
13 Average total assets 1.26 1.18
14 Net interest margin/a/ 4.11 4.26
- --------------------------------------------------------------------------------
</TABLE>
/a/ The net interest margin is computed on a tax-equivalent basis. The
taxable-equivalent basis adjustments to net interest income were $9
million, $6 million, and $5 million, for the third quarter of 1997, the
second quarter of 1997, and the third quarter of 1996, respectively, and
$21 million, and $11 million for the nine-month periods ended September 30,
1997 and 1996, respectively.
/b/ Restated to reflect a two-for-one stock split effective June 2, 1997.
/c/ Includes the income statement effect of the previously discussed one-time
SAIF assessment.
<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) 1997 1997 1996
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 884 $ 865 $ 751
2 Cash earnings per common
and common equivalent share 1.20 1.16 0.97/b/
3 Rate of return on average
common equity 18.20% 18.17% 15.66%
<CAPTION>
Nine Months Ended
September 30
---------------------
1997 1996
------ ------
<S> <C> <C>
4 Net income $2,595 $2,330
5 Cash earnings per common and common
equivalent share 3.48 2.97/b/
6 Rate of return on average
common equity 18.11% 16.45%
- --------------------------------------------------------------------------------
</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 $65 million, $66 million, and $68 million, for the third quarter of
1997, the second quarter of 1997, and the third quarter of 1996,
respectively, and $197 million, and $204 million for the nine-month periods
ended September 30, 1997 and 1996, respectively.
/b/ Restated to reflect a two-for-one stock split effective June 2, 1997.
================================================================================
<TABLE>
<CAPTION>
Table 3
Tier 1 Capital Generation
Nine Months Ended
September 30
---------------------
(in millions) 1997 1996
------- -------
<S> <C> <C>
Generation:
1 Net income $ 2,398 $ 2,126
2 Amortization of intangibles 197 204
3 Common stock issuances and other 417 220
4 Trust preferred securities 396 -
------- -------
5 Total generation 3,408 2,550
Applications:
6 Common stock dividends (642) (587)
7 Preferred stock dividends (86) (141)
8 Common stock repurchased (1,475) (901)
9 Preferred stock redeemed (1,113) (399)
------- -------
10 Total applications (3,316) (2,028)
11 Capital attributed to growth
in risk-weighted assets (399)/a/ (630)
------ ------
12 Net capital applied $ (307) $ (108)
====== ======
- --------------------------------------------------------------------------------
</TABLE>
/a/ Amount is preliminary.
<PAGE>
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) 1997 1997 1996
-------- ------- --------
<S> <C> <C> <C>
1 Book value per common share $27.51 $26.88 $25.46/a/
Common stock cash dividends:
2 Quarter ended 212 214 194
3 Year-to-date 642 430 587
Preferred stock cash dividends:
4 Quarter ended 22 30 43
5 Year-to-date 86 64 141
6 Number of common shares
outstanding (in thousands) 693,468 698,407 717,651/a/
Average number of common and
common equivalent shares
outstanding (in thousands):
7 Quarter ended 718,384 719,514 731,343/a/
8 Year-to-date 721,566 723,157 737,733/a/
Average number of common
shares outstanding -- assuming
full dilution (in thousands):
9 Quarter ended 719,532 722,179 731,770/a/
10 Year-to-date 722,837 724,490 738,683/a/
11 Common equity to total assets 7.41% 7.27% 7.52%
12 Total risk-based capital ratio 11.59/b/ 11.66 11.35
13 Tier 1 risk-based capital ratio 7.63/b/ 7.72 7.30
14 Total risk-based capital $ 26,074/b/ $ 25,901 $ 24,125
15 Risk-weighted assets 224,950/b/ 222,149 212,628
16 Tier 1 risk-based capital 17,161/b/ 17,145 15,532
- --------------------------------------------------------------------------------
</TABLE>
/a/ Restated to reflect a two-for-one stock split effective June 2, 1997.
/b/ Amounts are preliminary.
================================================================================
<TABLE>
<CAPTION>
Table 5
Selected Average Balance Sheet Components
Third Second Third
Quarter Quarter Quarter
(in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
1 Available-for-sale securities $ 11,984 $ 11,277 $ 11,373
2 Held-to-maturity securities 3,753 3,918 4,221
3 Loans 165,852 167,007 159,779
4 Earning assets 216,154 214,462 206,618
5 Total assets 257,380 255,131 243,769
6 Deposits 170,279 168,994 161,514
7 Interest-bearing liabilities 178,933 175,768 171,809
8 Common equity 18,787 18,459 17,963
9 Total equity 20,022 20,055 20,205
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
<TABLE>
<CAPTION>
Table 6
Business Sectors
Nine Months Ended September 30, 1997/a/
-----------------------------------------------------
(dollar amounts Return
in billions except Average Average on Expense
for net income, Net Total Total Common to
which is in Income Assets Deposits Equity Revenue/b/
millions) ------ ------- -------- ------ -------
<S> <C> <C> <C> <C> <C>
1 Consumer banking $1,033 $ 94 $ 99 15.57% 56.63%
2 U.S. Corporate and
international
banking 764 104 48 17.02 50.21
3 Middle-market
banking 276 25 8 16.72 42.00
4 Commercial real
estate 195 10 2 34.32 25.86
5 Wealth management 51 6 7 11.15 75.59
6 All other 79 16 5 NM NM
------ ---- ----
7 Total $2,398 $255 $169 16.69% 53.70%
====== ==== ====
<CAPTION>
Nine Months Ended September 30, 1996/a/
------------------------------------------------------
Return
Average Average on Expense
Net Total Total Common to
Income Assets Deposits Equity Revenue/b/
------ ------- -------- ------ -------
<S> <C> <C> <C> <C> <C>
1 Consumer banking/c/$ 728 $ 93 $ 96 10.81% 60.34%
2 U.S. Corporate and
international
banking 752 94 45 17.24 52.90
3 Middle-market
banking 269 22 7 16.99 45.85
4 Commercial real
estate 162 10 2 24.50 29.18
5 Wealth management 45 5 7 9.73 75.98
6 All other 170 17 4 NM NM
------ ---- ----
7 Total $2,126 $241 $161 14.92% 55.92%
====== ==== ====
- --------------------------------------------------------------------------------
</TABLE>
/a/Amounts are preliminary. For comparability purposes, both 1997 and
1996 amounts reflect BAC's business-sector allocation methodologies at
September 30, 1997.
/b/Excludes net other real estate owned expense, amortization of intangibles,
and expenses associated with trust preferred securities.
/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) 1997/a/ 1997 1996
------- ------- -------
<S> <C> <C> <C>
Trading income:
1 Interest rate $ 24 $ 17 $ 17
2 Foreign exchange 106 107 64
3 Debt instruments 93 94 72
---- ---- ----
4 Total trading income $223 $218 $153
==== ==== ====
Other trading-related income/b/:
5 Interest rate $ 6 $ 12 $ 5
6 Foreign exchange 1 2 4
7 Debt instruments 49 47 52
---- ---- ----
8 Total other trading-related
income $ 56 $ 61 $ 61
==== ==== ====
<CAPTION>
Nine Months Ended
September 30
------------------
1997/a/ 1996
---- ----
<S> <C> <C>
Trading income:
9 Interest rate $ 53 $ 37
10 Foreign exchange 305 252
11 Debt instruments 271 207
---- ----
12 Total trading income $629 $496
==== ====
Other trading-related income/b/:
13 Interest rate $ 28 $ 18
14 Foreign exchange 7 17
15 Debt instruments 146 155
---- ----
16 Total other trading-related
income $181 $190
==== ====
- --------------------------------------------------------------------------------
</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
Third 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 $ 2,251 $ (57) $ 2,194
2 Credit card fees 107 (11) 96
3 Other noninterest income 1,528 46/b/ 1,574
-------- ------- --------
4 Total revenue 3,886 (22) 3,864
5 Noninterest expense 2,232 - 2,232
-------- ------- --------
6 Income before provision
for credit losses and
income taxes 1,654 (22) 1,632
7 Provision for credit
losses 299 (39)/c/ 260
-------- ------- --------
8 Income before income
taxes $ 1,355 $ 17 $ 1,372
======== ======== ========
9 Net interest margin 4.13% (0.07)% 4.06%
Balance Sheet Data at
Period End:
10 Credit card loans
outstanding $ 10,021 $(2,971) $ 7,050
11 Total assets 260,491 (2,971) 257,520
Average Balance
Sheet Data:
12 Credit card loans 9,906 (2,271) 7,635
13 Earning assets 218,425 (2,271) 216,154
14 Total assets 259,651 (2,271) 257,380
15 Net credit losses - credit
card portfolio 161 (39) 122
Selected Financial Ratios:
16 Annualized ratio of net
credit losses on credit
card loans to average credit
card loans outstanding 6.42% (0.10)% 6.32%
17 Delinquent credit card
loan ratio/d/ 2.76 (0.04) 2.72
- --------------------------------------------------------------------------------
</TABLE>
/a/ Includes the impact of credit card securitizations since mid-1996. There
were credit card securitizations of $750 million during the third quarter
of 1997, $750 million during the second quarter of 1997, and $1,471 million
during the last half of 1996.
/b/ Includes $17 million associated with the requirements 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
Sept. 30 June 30 Sept. 30
(in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
Domestic
Consumer:
1 Residential first mortgages $ 34,279 $ 35,709 $ 37,445
2 Residential junior mortgages 14,915 15,154 14,525
3 Other installment 18,432 18,410 15,998
4 Credit card 7,050/a/ 7,624/a/ 9,021/a/
5 Other individual lines of credit 1,939 1,961 1,845
6 Other 442 413 303
-------- -------- --------
7 Total consumer 77,057 79,271 79,137
Commercial:
8 Commercial and industrial 34,082 34,266 33,076
9 Loans secured by real estate 12,833 12,669 12,062
10 Financial institutions 3,452 2,947 2,537
11 Lease financing 2,700 2,809 2,682
12 Construction and development
loans secured by real estate 2,257 2,262 2,530
13 Loans for purchasing or carrying
securities 2,000 2,616 1,328
14 Agricultural 1,774 1,560 1,561
15 Other 1,745 1,738 1,253
-------- -------- --------
16 Total commercial 60,843 60,867 57,029
-------- -------- --------
17 Total domestic loans 137,900 140,138 136,166
Foreign
18 Commercial and industrial 18,260 17,762 16,257
19 Banks and other financial
institutions 4,295 4,818 3,480
20 Governments and official
institutions 861 851 943
21 Other 5,670 5,237 4,987
-------- -------- --------
22 Total foreign loans 29,086 28,668 25,667
-------- -------- --------
23 Total Loans $166,986 $168,806 $161,833
======== ======== ========
- --------------------------------------------------------------------------------
</TABLE>
/a/ Excludes outstanding securitized credit card receivables of $2,971 million,
$2,221 million, and $500 million at September 30, 1997, June 30, 1997, and
September 30, 1996, respectively. There were credit card securitizations of
$750 million during the third quarter of 1997, $750 million 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
Sept. 30 June 30 Sept. 30
(dollar amounts in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
Nonaccrual assets:
1 Commercial and industrial $263 $228 $ 357
2 Commercial loans secured by
real estate 136 120 229
3 Construction and development
loans secured by real estate 39 59 119
4 Consumer 378 373 291
5 Foreign 114 81 123
---- ---- ------
6 Total nonaccrual assets $930 $861 $1,119
==== ==== ======
7 Restructured loans $285 $302 $ 274
8 Loans past due 90 days or more
and still accruing interest/a/ 197 214 363
9 Other real estate owned 197 242 397
10 Allowance for credit losses to
total loans 2.10% 2.11% 2.17%
11 Allowance for credit losses to
total nonaccrual assets 376.70 413.99 313.77
Annualized ratio of net credit
losses to average total loan
outstandings:
12 Quarter ended 0.62 0.54 0.56
13 Year-to-date 0.55 0.52 0.60
- --------------------------------------------------------------------------------
</TABLE>
/a/ Includes consumer loans of $177 million, $190 million, and $332 million at
September 30, 1997, June 30, 1997, and September 30, 1996, respectively.
================================================================================
<TABLE>
<CAPTION>
Table 11
Analysis of Change in Nonaccrual Assets
Third Second First
Quarter Quarter Quarter
(in millions) 1997 1997 1997
------- ------- -------
<S> <C> <C> <C>
1 Balance, beginning of period $861 $1,030 $1,118
Additions:
2 Loans placed on nonaccrual
status 244 103 108
Deductions:
3 Sales (26) (103) (3)
4 Restored to accrual status (31) (38) (75)
5 Foreclosures - (1) (8)
6 Charge-offs (47) (20) (10)
7 Other, primarily payments (71) (110) (100)
---- ------ ------
8 Balance, end of period $930 $ 861 $1,030
==== ====== ======
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Financial Highlights
<TABLE>
<CAPTION>
Table 12
Net Credit Losses (Recoveries)
Third Second Third
Quarter Quarter Quarter
(in millions) 1997 1997 1996
------- ------- -------
<S> <C> <C> <C>
Domestic consumer:
1 Residential first mortgages $ 4 $ 7 $ 11
2 Residential junior mortgages 7 8 13
3 Credit card 122 124 111
4 Other installment 63 49 42
5 Other individual lines of credit 19 20 18
6 Other 5 4 3
Domestic commercial:
7 Commercial and industrial 46 19 9
8 Loans secured by real estate 2 - 2
9 Construction and development
loans secured by real estate 1 (8) 16
10 Financial institutions, lease
financing, loans for
purchasing or carrying
securities, and agricultural (5) (1) -
---- ---- ----
11 Total domestic 264 222 225
12 Foreign (5) 2 1
---- ---- ----
13 Total Net Credit Losses $259 $224 $226
==== ==== ====
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Table 13
Domestic Consumer Loan Delinquency Information/a/
Sept. 30 June 30 Sept. 30
(dollar amounts in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
Delinquent consumer loans:
1 Residential first mortgages $431 $422 $518
2 Residential junior mortgages 44 59 64
3 Credit card 192 204 207
4 Other 134 126 113
---- ---- ----
5 Total delinquent consumer loans $801 $811 $902
==== ==== ====
Delinquent consumer loan ratios/b/:
6 Residential first mortgages 1.26% 1.18% 1.38%
7 Residential junior mortgages 0.29 0.39 0.44
8 Credit Card 2.72 2.67 2.29
9 Other 0.65 0.61 0.63
10 Total delinquent consumer
loan ratio 1.04% 1.02% 1.14%
==== ==== ====
- --------------------------------------------------------------------------------
</TABLE>
/a/ 60 days or more past due.
/b/ Ratios represent delinquent 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) 1997 1997 1996
------- ------- -------
<S> <C> <C> <C>
Interest Income
1 Loans, including fees $3,522 $3,497 $3,371
2 Interest-bearing deposits in banks 107 105 95
3 Federal funds sold 14 9 9
4 Securities purchased under
resale agreements 208 180 178
5 Trading account assets 323 298 268
6 Available-for-sale and held-to-
maturity securities 277 270 285
------ ------ ------
7 Total interest income 4,451 4,359 4,206
Interest Expense
8 Deposits 1,502 1,424 1,332
9 Federal funds purchased 11 19 17
10 Securities sold under repurchase
agreements 227 178 201
11 Other short-term borrowings 268 287 243
12 Long-term debt 249 257 261
------ ------ ------
13 Total interest expense 2,257 2,165 2,054
------ ------ ------
14 Net interest income 2,194 2,194 2,152
15 Provision for credit losses 260 250 235
------ ------ ------
16 Net interest income after
provision for credit losses 1,934 1,944 1,917
Noninterest Income
17 Deposit account fees 364 361 345
18 Credit card fees 96 93 92
19 Trust fees 62 61 53
20 Other fees and commissions 424 417 360
21 Trading income 223 218 153
22 Private equity investment activities 140 83 97
23 Net gain on sales of
subsidiaries and operations 139 27 41
24 Net gain on sales of loans 53 44 25
25 Net gain on available-for-sale
securities 33 14 7
26 Other income 136 124 146
------ ------ ------
27 Total noninterest income 1,670 1,442 1,319
Noninterest Expense
28 Salaries 892 873 822
29 Employee benefits 177 189 191
30 Occupancy 192 183 188
31 Equipment 182 173 180
32 Communications 95 96 89
33 Amortization of intangibles 88 89 93
34 Professional services 107 82 87
35 Regulatory fees and related expenses 10 10 95
36 Other expense 489 352 336
------ ------ ------
37 Total noninterest expense 2,232 2,047 2,081
------ ------ ------
38 Income before income taxes 1,372 1,339 1,155
39 Provision for income taxes 553 540 472
------ ------ ------
40 Net Income $ 819 $ 799 $ 683
====== ====== ======
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Consolidated Statement of Operations
<TABLE>
<CAPTION>
Nine Months Ended
September 30
---------------------
(in millions) 1997 1996
------- -------
<S> <C> <C>
Interest Income
1 Loans, including fees $10,442 $ 9,975
2 Interest-bearing deposits in banks 311 308
3 Federal funds sold 31 22
4 Securities purchased under
resale agreements 543 509
5 Trading account assets 890 731
6 Available-for-sale and held-to-
maturity securities 833 876
------- -------
7 Total interest income 13,050 12,421
Interest Expense
8 Deposits 4,292 3,953
9 Federal funds purchased 43 59
10 Securities sold under repurchase
agreements 554 540
11 Other short-term borrowings 830 629
12 Long-term debt 769 783
------- -------
13 Total interest expense 6,488 5,964
------- -------
14 Net interest income 6,562 6,457
15 Provision for credit losses 730 665
------- -------
16 Net interest income after
provision for credit losses 5,832 5,792
Noninterest Income
17 Deposit account fees 1,085 1,035
18 Credit card fees 276 261
19 Trust fees 180 172
20 Other fees and commissions 1,216 1,013
21 Trading income 629 496
22 Private equity investment activities 322 319
23 Net gain on sales of
subsidiaries and operations 179 175
24 Net gain on sales of loans 156 69
25 Net gain on available-for-sale
securities 67 41
26 Other income 387 332
------- -------
27 Total noninterest income 4,497 3,913
Noninterest Expense
28 Salaries 2,604 2,457
29 Employee benefits 555 606
30 Occupancy 561 564
31 Equipment 537 518
32 Communications 284 271
33 Amortization of intangibles 268 281
34 Professional services 264 248
35 Regulatory fees and related expenses 30 121
36 Other expense 1,209 1,025
------- -------
37 Total noninterest expense 6,312 6,091
------- -------
38 Income before income taxes 4,017 3,614
39 Provision for income taxes 1,619 1,488
------- -------
40 Net Income $ 2,398 $ 2,126
======= =======
</TABLE>
<PAGE>
BankAmerica Corporation and Subsidiaries
Consolidated Balance Sheet
<TABLE>
<CAPTION>
Sept. 30 June 30 Sept. 30
(in millions) 1997 1997 1996
-------- -------- --------
<S> <C> <C> <C>
Assets
1 Cash and due from banks $ 13,854 $ 14,884 $ 13,619
2 Interest-bearing deposits in banks 5,368 7,037 5,829
3 Federal funds sold 48 270 306
4 Securities purchased under resale
agreements 10,076 7,272 6,287
5 Trading account assets 16,351 16,765 14,000
6 Available-for-sale securities 12,408 11,959 11,717
7 Held-to-maturity securities 3,689 3,858 4,200
8 Loans 166,986 168,806 161,833
9 Less: Allowance for credit losses 3,504 3,563 3,511
-------- -------- --------
10 Net loans 163,482 165,243 158,322
11 Customers' acceptance liability 3,154 3,230 3,165
12 Accrued interest receivable 1,593 1,567 1,435
13 Goodwill, net 3,727 3,842 4,017
14 Identifiable intangibles, net 1,459 1,499 1,664
15 Unrealized gains on off-balance-
sheet instruments 7,892 7,319 6,598
16 Premises and equipment, net 3,909 3,944 3,968
17 Other assets 10,510 9,674 7,826
-------- -------- --------
18 Total Assets $257,520 $258,363 $242,953
======== ======== ========
Liabilities & Stockholders' Equity
Deposits in domestic offices:
19 Interest-bearing $ 94,074 $ 83,308 $ 83,779
20 Noninterest-bearing 31,206 41,434 37,589
Deposits in foreign offices:
21 Interest-bearing 44,450 46,667 42,035
22 Noninterest-bearing 1,683 1,759 1,498
-------- -------- --------
23 Total deposits 171,413 173,168 164,901
24 Federal funds purchased 1,349 1,730 1,093
25 Securities sold under repurchase
agreements 11,024 9,699 8,489
26 Other short-term borrowings 18,701 18,327 16,263
27 Acceptances outstanding 3,154 3,230 3,165
28 Accrued interest payable 1,023 958 868
29 Unrealized losses on off-balance-
sheet instruments 7,541 7,157 6,458
30 Other liabilities 7,318 7,117 5,750
31 Long-term debt 14,198 14,736 15,454
-------- -------- --------
32 Total liabilities 235,721 236,122 222,441
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 848 1,596 2,242
35 Common stock 1,210/a/ 1,210/a/ 605
36 Additional paid-in capital 7,947/a/ 7,872/a/ 8,458
37 Retained earnings 13,168 12,598 10,989
38 Net unrealized gain (loss) on
available-for-sale securities 108 13 (27)
39 Common stock in treasury, at cost (3,355) (2,921) (1,755)
-------- -------- --------
40 Total stockholders' equity 19,926 20,368 20,512
-------- -------- --------
41 Total Liabilities and
Stockholders' Equity $257,520 $258,363 $242,953
======== ======== ========
- --------------------------------------------------------------------------------
</TABLE>
/a/ Reflects a two-for-one stock split effective June 2, 1997.
