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
January 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)
4063959
<PAGE>
Item 5. Other Events.
Attached hereto as Exhibit 99 is a copy of BankAmerica Corporation's
press release dated January 15, 1997 titled "BankAmerica Fourth 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
January 15, 1997 titled "BankAmerica Fourth
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: January 15, 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
January 15, 1997 titled "BankAmerica Fourth Quarter
Earnings."
4063959
<PAGE>
[BANKAMERICA CORPORATION LOGO APPEARS HERE] Exhibit 99
NEWS
For Release:
Contact: Peter Magnani
(415) 953-2418
BANKAMERICA FOURTH QUARTER EARNINGS
SAN FRANCISCO, January 15, 1997 -- BankAmerica Corporation (BAC) today
reported fourth-quarter 1996 earnings per share and net income of $1.93 and
$747 million, respectively, up from $1.74 and $704 million for the same period
a year ago. Fourth quarter net income includes the previously announced
$147 million after-tax gain on the initial public offering of Class A
Common Stock of BA Merchant Services, Inc. (BAMSI), a subsidiary of BAC,
which increased earnings per share by $0.40. In addition, fourth quarter
net income includes the previously announced pre-tax restructuring charge
of $280 million, which reduced earnings per share by $0.46. The return on
average common equity for the fourth quarter of 1996 was 15.24 percent, an
increase of 28 basis points from the same period a year ago.
BAC's earnings per share and net income for 1996 were $7.31 and
$2,873 million, respectively, up from $6.49 and $2,664 million for 1995.
The return on average common equity for 1996 was 15.00 percent, an increase
of 42 basis points from 1995.
"Fourth-quarter results were in line with those of the first three quarters,
capping a year of consistent solid performance," David A. Coulter, Chairman
and Chief Executive Officer, said. Coulter cited the following
fourth-quarter activities as examples of continuing progress in the
corporation's efforts toward strategic management of capital:
o The previously announced completion of the initial public
offering of 16.1 million shares of Class A Common Stock of BAMSI,
resulting in a $147 million after-tax gain. BAC owns all of the
Class B Common Stock of BAMSI, which represents approximately
65 percent of BAMSI's total common stock;
- more -
<PAGE>
o The decision to implement a number of restructurings,
mostly in 1997, in wholesale banking, retail banking, and
staff support activities, resulting in the previously
announced pre-tax charge of $280 million. Approximately
$130 million of this charge relates to changes in
wholesale banking activities, approximately $100 million
relates to changes in domestic retail operations, and the
remaining $50 million primarily relates to staff support
units;
o The securitization of $1.0 billion of credit card receivables,
bringing the total for the year to $1.5 billion, and the sale
of $800 million of residential first mortgages, bringing the
total for the year to $2.9 billion; and
o The issuance of $1.5 billion of tax-advantaged trust
originated preferred securities, which qualify as tier 1
risk-based capital.
FINANCIAL HIGHLIGHTS:
o Net interest income was down $7 million from the amount reported
for the fourth quarter of 1995. BAC's net interest margin for
the fourth quarter of 1996 was 4.13 percent, down 31 basis
points from the comparable period a year ago, and down 4 basis
points from the previous quarter. Excluding the effects of the
credit card securitizations during the second half of 1996, net
interest income would have increased $28 million from the fourth
quarter of 1995 and the net interest margin would have been
4.17 percent.
o Noninterest income increased $341 million, or 29 percent, from the
fourth quarter of 1995. Excluding the previously discussed gain on
the initial public offering of BAMSI common stock, noninterest
income increased $194 million from the fourth quarter of 1995,
primarily due to increased fees and commissions of $91 million,
higher dividends on investment securities of $40 million, and
increased gains on the sale of leased property of $28 million.
- Page 2 -
<PAGE>
o Excluding the $280 million restructuring charge, noninterest
expense was $1,970 million, up $4 million from the fourth
quarter of 1995, but down $29 million from the third-quarter 1996
level. For this comparison, third-quarter 1996 noninterest
expense does not include a one-time SAIF assessment of $82 million.
o The provision for credit losses was $220 million, down $15 million
from the third quarter of 1996, but up $90 million from the fourth
quarter of 1995. Net credit losses were $207 million for the fourth
quarter of 1996, a decline of $19 million, or 8 percent, from the
third quarter of 1996.
o Nonaccrual assets remained essentially unchanged from their
September 30, 1996 level. During the fourth quarter of 1996, BAC
changed the past due period for nonaccrual residential real estate
loans and certain nonaccrual consumer loans that were collateralized
by junior mortgages on residential real estate. The maximum period
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.
o In connection with BAC's ongoing efforts to return excess capital
to its shareholders, BAC repurchased 4.7 million shares of its common
stock during the fourth quarter of 1996 at an average per-share
price of $95.39, which reduced stockholders' equity by $450 million.
These shares were repurchased on the open market over 41 trading
days and represented approximately 10 percent of the total volume
of BAC common stock traded on those days. BAC's 1996 common stock
repurchases totaled 17.0 million shares at an average-per-share
price of $79.39, which reduced common stockholders' equity by
$1,351 million. Remaining buyback authority for common stock
under the current repurchase program totaled $0.8 billion at
December 31, 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
QUARTERLY SUMMARY OF RESULTS AND STATISTICAL DATA
Fourth Third Fourth
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1996 1996 1995
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 747 $ 683 $ 704
1a Adjusted net income/a/ NA 731 NA
2 Earnings per common and common
equivalent share 1.93 1.75 1.74
2a Adjusted earnings per common
and common equivalent share/a/ NA 1.88 NA
3 Earnings per common share --
assuming full dilution 1.92 1.75 1.74
3a Adjusted earnings per
common share -- assuming
full dilution/a/ NA 1.88 NA
Rate of return (based on net
income) on:
4 Average total assets 1.21% 1.12% 1.20%
4a Average total assets,
as adjusted/a/ NA 1.19 NA
5 Average common equity 15.24 14.16 14.96
5a Average common equity,
as adjusted/a/ NA 15.23 NA
6 Net interest margin/b/ 4.13 4.17 4.44
7 Full-time-equivalent staff
at period end (in thousands) 78.0 78.2 79.9
Employees at period
end (in thousands) 92.1 92.7 95.3
- --------------------------------------------------------------------------------
</TABLE>
/a/Adjusted to exclude the income statement effect of the $82 million
one-time SAIF assessment in the third quarter of 1996.
/b/The net interest margin is computed on a tax-equivalent basis.
The taxable-equivalent basis adjustments to net interest income were
$6 million, $5 million, and $5 million for the fourth quarter of 1996,
the third quarter of 1996, and the fourth quarter of 1995, respectively.
NA - Not applicable.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 2
ANNUAL SUMMARY OF RESULTS AND STATISTICAL DATA
Year Ended
December 31
(dollar amounts in millions, ------------------
except per share data) 1996 1995
------ ------
<S> <C> <C>
1 Net income $2,873 $2,664
1a Adjusted net income/a/ 2,922 NA
2 Earnings per common and common
equivalent share 7.31 6.49
2a Adjusted earnings per common
and common equivalent share/a/ 7.44 NA
3 Earnings per common share --
assuming full dilution 7.30 6.45
3a Adjusted earnings per common share --
assuming full dilution/a/ 7.43 NA
Rate of return (based on net income) on:
4 Average total assets 1.19% 1.17%
4a Average total assets, as adjusted/a/ 1.21 NA
5 Average common equity 15.00 14.58
5a Average common equity, as adjusted/a/ 15.27 NA
6 Net interest margin/b/ 4.23 4.51
- --------------------------------------------------------------------------------
</TABLE>
/a/Adjusted to exclude the income statement effect of the $82 million
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
$17 million and $25 million for the years ended December 31, 1996 and
1995, respectively.
NA - Not applicable.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 3
SUMMARY OF RESULTS EXCLUDING THE EFFECTS
OF AMORTIZATION OF INTANGIBLES/a/
Fourth Third Fourth
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1996 1996 1995
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 815 $ 751 $ 774
2 Earnings per common and common
equivalent share 2.11 1.93 1.92
3 Rate of return on average
common equity 16.71% 15.66% 16.57%
<CAPTION>
Year Ended
December 31
-----------------
1996 1995
------ ------
<S> <C> <C>
4 Net income $3,145 $2,946
5 Earnings per common and common
equivalent share 8.05 7.23
6 Rate of return on average
common equity 16.52% 16.43%
- --------------------------------------------------------------------------------
</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, $68 million, and $70 million, for the fourth quarter
of 1996, the third quarter of 1996, and the fourth quarter of 1995,
respectively, and $272 million and $282 million for the years ended
December 31, 1996 and 1995, respectively.
================================================================================
TABLE 4
TIER 1 CAPITAL GENERATION
<TABLE>
<CAPTION>
Year Ended
December 31
-------------------
(in millions) 1996 1995
------- -------
<S> <C> <C>
Generation:
1 Net income $ 2,873 $ 2,664
2 Amortization of intangibles 272 282
3 Common stock issuances and other 302 631
4 Trust originated preferred securities 1,500 -
------- -------
5 Total generation 4,947 3,577
Applications:
6 Common stock dividends (780) (684)
7 Preferred stock dividends (185) (227)
8 Common stock repurchased (1,351) (926)
9 Preferred stock repurchased (680) (206)
10 Preferred stock converted to
common stock - (248)
------- -------
11 Total applications (2,996) (2,291)
12 Capital attributed to growth
in risk-weighted assets (1,243)/a/ (1,182)
------- -------
13 Net capital generated $ 708 $ 104
======= =======
- --------------------------------------------------------------------------------
</TABLE>
/a/Amount is preliminary.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 5
STOCK AND CAPITAL DATA
(dollar amounts in millions, Dec. 31 Sept. 30 Dec. 31
except per share data) 1996 1996 1995
------- ------- -------
<S> <C> <C> <C>
1 Book value per common share $ 51.99 $ 50.92 $ 47.90
Common stock cash dividends:
2 Quarter ended 193 194 169
3 Year-to-date 780 587 684
Preferred stock cash dividends:
4 Quarter ended 44 43 53
5 Year-to-date 185 141 227
6 Number of common shares out-
standing (in thousands) 355,267 358,826 367,447
Average number of common and common
equivalent shares outstanding
(in thousands):
7 Quarter ended 365,487 365,672 374,283
8 Year-to-date 368,021 368,866 375,556
Average number of common shares
outstanding -- assuming
full dilution (in thousands):
9 Quarter ended 366,182 365,885 374,669
10 Year-to-date 368,552 369,341 378,103
11 Common equity to total assets 7.37% 7.52% 7.57%
12 Total risk-based capital ratio 11.73/a/ 11.35 11.48
13 Tier 1 risk-based capital ratio 7.72/a/ 7.30 7.35
14 Total risk-based capital $ 25,922/a/ $ 24,125 $ 23,416
15 Risk-weighted assets 221,024/a/ 212,628 203,995
16 Tier 1 risk-based capital 17,067/a/ 15,532 14,991
- --------------------------------------------------------------------------------
</TABLE>
/a/ Amounts are preliminary.
================================================================================
TABLE 6
SELECTED AVERAGE BALANCE SHEET COMPONENTS
<TABLE>
<CAPTION>
Fourth Third Fourth
Quarter Quarter Quarter
(in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
1 Available-for-sale securities $ 11,763 $ 11,373 $ 9,951
2 Held-to-maturity securities 4,160 4,221 6,614
3 Loans 161,545 159,779 151,896
4 Earning assets 206,315 206,618 192,587
5 Total assets 245,477 243,769 232,269
6 Deposits 162,813 161,514 157,300
7 Interest-bearing liabilities 170,046 171,809 158,311
8 Common equity 18,374 17,963 17,239
9 Total equity 20,616 20,205 19,862
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 7
BUSINESS SECTORS
Year Ended December 31, 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,d/ $1,300 $ 91 $ 96 16.85% 56.22%
2 U.S. Corporate and
international banking/d,e/ 1,039 92 45 19.06 53.80
3 Middle-market banking/d/ 344 22 7 21.44 46.17
4 Commercial real estate/d/ 249 10 2 35.04 23.61
5 Private banking and
investment services/d/ 84 5 7 17.14 71.24
6 Other/d/ (143) 22 5 NM NM
7 Total $2,873 $242 $162 15.00% 56.91%
====== ==== ====
<CAPTION>
Year Ended December 31, 1995/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 $1,129 $ 84 $ 96 15.85% 58.12%
2 U.S. Corporate and
international banking 829 86 37 15.63 54.69
3 Middle-market banking 314 20 8 20.14 45.81
4 Commercial real estate 353 10 2 45.04 26.45
5 Private banking and
investment services 58 4 6 12.63 76.26
6 Other (19) 23 5 NM NM
------ ---- ----
7 Total $2,664 $227 $154 14.58% 58.08%
====== ==== ====
- --------------------------------------------------------------------------------
</TABLE>
/a/Amounts are preliminary. For comparability purposes, both 1996 and
1995 amounts reflect BAC's business-sector allocation methodologies at
December 31, 1996.
/b/Excludes net other real estate owned expense and amortization of intangibles.
/c/Includes the income statement effect of the third-quarter 1996 one-time SAIF
assessment of $82 million, the previously discussed BAMSI gain of
$147 million, and approximately $100 million restructuring charge
related to domestic retail operations.
/d/Includes the income statement effect of this sector's portion of
approximately $50 million of the previously discussed restructuring
charge related to staff support units.
/e/Includes the income statement effect of approximately $130 million of the
previously discussed restructuring charge related to wholesale
banking activities.
NM - Not meaningful.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 8
TRADING-RELATED INCOME
Fourth Third Fourth
Quarter Quarter Quarter
(in millions) 1996/a/ 1996 1995
------- ------- -------
<S> <C> <C> <C>
Trading income:
1 Interest rate $ 19 $ 17 $ 20
2 Foreign exchange 64 64 66
3 Debt instruments 51 72 29
---- ---- ----
4 Total trading income $134 $153 $115
==== ==== ====
Other trading-related income/b/:
5 Interest rate $ 13 $ 5 $ 18
6 Foreign exchange 3 4 9
7 Debt instruments 53 52 38
---- ---- ----
8 Total other trading-related
income $ 69 $ 61 $ 65
==== ==== ====
<CAPTION>
Year Ended
December 31
------------------
1996/a/ 1995
------ -----
<S> <C> <C>
Trading income:
9 Interest rate $ 56 $ 67
10 Foreign exchange 316 303
11 Debt instruments 258 157
---- ----
12 Total trading income $630 $527
==== ====
Other trading-related income/b/:
13 Interest rate $ 31 $ 30
14 Foreign exchange 20 28
15 Debt instruments 208 152
---- ----
16 Total other trading-related
income $259 $210
==== ====
- --------------------------------------------------------------------------------
</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 9
IMPACT OF CREDIT CARD SECURITIZATION
Fourth Quarter 1996/a/
-------------------------------------------
Before
(dollar amounts Credit Card Credit Card
in millions) Securitization Securitization Reported
-------------- -------------- --------
<S> <C> <C> <C>
Operating Results:
1 Net interest income $ 2,165 $ (35) $ 2,130
2 Noninterest income 1,483 16 1,499
-------- ------- --------
3 Total revenue 3,648 (19) 3,629
4 Noninterest expense 2,250 - 2,250
-------- ------- --------
5 Income before provision
for credit losses and
income taxes 1,398 (19) 1,379
6 Provision for credit
losses 239 (19)/b/ 220
-------- ------- --------
7 Income before income
taxes $ 1,159 $ - $ 1,159
======== ======= ========
8 Net Interest Margin 4.17% (0.04)% 4.13%
Balance Sheet Data at
Period End:
9 Credit card loans
outstanding $ 10,178 $(1,471) $ 8,707
10 Total assets 252,224 (1,471) 250,753
Average Balance
Sheet Data:
11 Credit card loans 9,704 (1,366) 8,338
12 Earning assets 207,681 (1,366) 206,315
13 Total Assets 246,843 (1,366) 245,477
14 Net Credit Losses - credit
card portfolio 123 (19) 104
Selected Financial Ratios:
15 Annualized ratio of net
credit losses on credit
card loans to average credit
card loans outstanding 5.04% (0.09)% 4.95%
16 Delinquent credit card
loan ratio/c/ 2.40 (0.04) 2.36
- --------------------------------------------------------------------------------
</TABLE>
/a/Impact of the credit card securitization includes the effects of the
third quarter securitization of $500 million and the fourth quarter
securitization of $971 million.
/b/Represents the investors' share of charge-offs.
/c/60 days or more past due.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 10
LOAN OUTSTANDINGS
Dec. 31 Sept. 30 Dec. 31
(in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
DOMESTIC
Consumer:
1 Residential first mortgages $ 37,459 $ 37,445 $ 36,572
2 Residential junior mortgages 14,743 14,525 13,777
3 Other installment 16,979 15,998 13,834
4 Credit card 8,707 9,021 9,139
5 Other individual lines of credit 1,948 1,845 1,847
6 Other 401 303 319
-------- -------- --------
7 Total consumer 80,237 79,137 75,488
Commercial:
8 Commercial and industrial 33,404 33,076 32,745
9 Loans secured by real estate 12,488 12,062 10,975
10 Financial institutions 3,109 2,537 2,834
11 Lease financing 2,542 2,682 1,927
12 Construction and development
loans secured by real estate 2,252 2,530 3,153
13 Loans for purchasing or carrying
securities 1,941 1,328 1,458
14 Agricultural 1,696 1,561 1,737
15 Other 1,270 1,253 1,574
-------- -------- --------
16 Total commercial 58,702 57,029 56,403
-------- -------- --------
17 Total domestic loans 138,939 136,166 131,891
FOREIGN
18 Commercial and industrial 16,394 16,257 15,003
19 Banks and other financial
institutions 3,958 3,480 3,386
20 Governments and official
institutions 970 943 1,020
21 Other 5,154 4,987 4,073
-------- -------- --------
22 Total foreign loans 26,476 25,667 23,482
-------- -------- --------
23 Total Loans $165,415 $161,833 $155,373
======== ======== ========
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 11
SELECTED CREDIT QUALITY DATA
Dec. 31 Sept. 30 Dec. 31
(dollar amounts in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Nonaccrual assets:
1 Commercial and industrial $ 289 $ 357 $ 586
2 Commercial loans secured by real
estate 206 229 280
3 Construction and development
loans secured by real estate 95 119 495
4 Consumer 415/a/ 291 385
5 Foreign 113 123 145
------ ------ ------
6 Total nonaccrual assets $1,118 $1,119 $1,891
====== ====== ======
7 Restructured loans $ 302 $ 274 $ 113
8 Loans past due 90 days or more
and still accruing interest/b/ 235/a/ 363 411
9 Other real estate owned 353 397 492
10 Allowance for credit losses to
total loans 2.13% 2.17% 2.29%
11 Allowance for credit losses to
total nonaccrual assets 315.11 313.77 187.93
Annualized ratio of net credit
losses to average total loan
outstandings:
12 Quarter ended 0.51 0.56 0.60
13 Year-to-date 0.58 0.60 0.40
- --------------------------------------------------------------------------------
</TABLE>
/a/During the fourth quarter of 1996, BAC changed the past due period for
nonaccrual residential real estate loans and certain nonaccrual consumer
loans that were collateralized by junior mortgages on residential real
estate. The maximum period 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 $187 million, $332 million, and $354 million at
December 31, 1996, September 30, 1996, and December 31, 1995, respectively.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 12
ANALYSIS OF CHANGE IN NONACCRUAL ASSETS
Fourth Third Second First
Quarter Quarter Quarter Quarter
(in millions) 1996 1996 1996 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
1 Balance, beginning
of period $1,119 $1,488 $1,697 $1,891
Additions:
2 Loans placed on
nonaccrual status 119 66 129 191
3 Leases acquired - 34 - -
4 Other/a/ 144 - - -
Deductions:
5 Sales (33) (4) (26) (67)
6 Restored to
accrual status (34) (229) (37) (60)
7 Foreclosures (3) (5) (6) (11)
8 Charge-offs (19) (51) (77) (90)
9 Other, primarily
payments (175) (180) (192) (157)
------ ------ ------ ------
10 Balance, end of period $1,118 $1,119 $1,488 $1,697
====== ====== ====== ======
</TABLE>
- --------------------------------------------------------------------------------
/a/During the fourth quarter of 1996, BAC changed the past due period for
nonaccrual residential real estate loans and certain nonaccrual consumer
loans that were collateralized by junior mortgages on residential real
estate. The maximum period 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.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 13
NET CREDIT LOSSES (RECOVERIES)
Fourth Third Fourth
Quarter Quarter Quarter
(in millions) 1996 1996 1995
------- ------- -------
<S> <C> <C> <C>
Domestic consumer:
1 Residential first mortgages $ 7 $ 11 $ 12
2 Residential junior mortgages 12 13 15
3 Other installment 64 42 38
4 Credit card 104 111 93
5 Other individual lines of credit 17 17 15
6 Other 4 4 2
Domestic commercial:
7 Commercial and industrial - 9 60
8 Loans secured by real estate (3) 2 4
9 Construction and development
loans secured by real estate 1 16 3
10 Financial institutions, lease
financing, loans for
purchasing or carrying
securities, and agricultural 1 - 3
---- ---- ----
11 Total domestic 207 225 245
12 Foreign - 1 (14)
---- ---- ----
13 Total Net Credit Losses $207 $226 $231
==== ==== ====
</TABLE>
================================================================================
<TABLE>
<CAPTION>
TABLE 14
DOMESTIC CONSUMER LOAN DELINQUENCY INFORMATION/a/
Dec. 31 Sept. 30 Dec. 31
(dollar amounts in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Delinquent consumer loans:
1 Residential first mortgages $477 $518 $ 642
2 Residential junior mortgages 62 64 90
3 Credit card 206 207 190
4 Other 129 113 100
---- ---- ------
5 Total delinquent consumer loans $874 $902 $1,022
==== ==== ======
Delinquent consumer loan ratios/b/:
6 Residential first mortgages 1.27% 1.38% 1.76%
7 Residential junior mortgages 0.42 0.44 0.67
8 Credit card 2.36 2.29 2.08
9 Other 0.67 0.63 0.62
10 Total delinquent consumer
loan ratio 1.09% 1.14% 1.36%
==== ==== ====
</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>
Fourth Third Fourth
Quarter Quarter Quarter
(in millions) 1996 1996 1995
------- ------- -------
<S> <C> <C> <C>
INTEREST INCOME
1 Loans, including fees $3,388 $3,371 $3,287
2 Interest-bearing deposits in banks 145 95 119
3 Federal funds sold 7 9 5
4 Securities purchased under
resale agreements 144 178 147
5 Trading account assets 270 268 200
6 Available-for-sale and held-to-
maturity securities 284 285 313
------ ------ ------
7 TOTAL INTEREST INCOME 4,238 4,206 4,071
INTEREST EXPENSE
8 Deposits 1,406 1,332 1,307
9 Federal funds purchased 20 17 35
10 Securities sold under repurchase
agreements 155 201 147
11 Other short-term borrowings 254 243 168
12 Long-term debt 266 254 265
13 Subordinated capital notes 7 7 12
------ ------ ------
14 TOTAL INTEREST EXPENSE 2,108 2,054 1,934
------ ------ ------
15 NET INTEREST INCOME 2,130 2,152 2,137
16 Provision for credit losses 220 235 130
------ ------ ------
17 NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 1,910 1,917 2,007
NONINTEREST INCOME
18 Deposit account fees 364 345 334
19 Credit card fees 94 92 84
20 Trust fees 57 53 72
21 Other fees and commissions 370 360 304
22 Trading income 134 153 115
23 Venture capital activities 108 97 93
24 Net gain on sales of assets 63 64 29
25 Net gain on sales of
subsidiaries and operations 5 41 42
26 Gain on issuance of
subsidiary's stock 147 - -
27 Net gain on available-for-sale
securities 20 7 7
28 Other income 137 107 78
------ ------ ------
29 TOTAL NONINTEREST INCOME 1,499 1,319 1,158
NONINTEREST EXPENSE
30 Salaries 834 822 819
31 Employee benefits 167 191 147
32 Occupancy 193 188 198
33 Equipment 184 180 169
34 Amortization of intangibles 92 93 99
35 Communications 92 89 93
36 Professional services 95 88 92
37 Restructuring charges 280 - -
38 Regulatory fees and related expenses 2 95 23
39 Other expense 311 335 326
------ ------ ------
40 TOTAL NONINTEREST EXPENSE 2,250 2,081 1,966
------ ------ ------
41 INCOME BEFORE INCOME TAXES 1,159 1,155 1,199
42 Provision for income taxes 412 472 495
------ ------ ------
43 NET INCOME $ 747 $ 683 $ 704
====== ====== ======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Year Ended
December 31
-------------------
(in millions) 1996 1995
------- -------
<S> <C> <C>
INTEREST INCOME
1 Loans, including fees $13,363 $12,707
2 Interest-bearing deposits in banks 453 466
3 Federal funds sold 29 32
4 Securities purchased under
resale agreements 653 618
5 Trading account assets 1,001 741
6 Available-for-sale and held-to-
maturity securities 1,160 1,276
------- -------
7 TOTAL INTEREST INCOME 16,659 15,840
INTEREST EXPENSE
8 Deposits 5,359 4,923
9 Federal funds purchased 79 131
10 Securities sold under repurchase
agreements 695 581
11 Other short-term borrowings 883 630
12 Long-term debt 1,023 1,067
13 Subordinated capital notes 33 46
------ -------
14 TOTAL INTEREST EXPENSE 8,072 7,378
------ -------
15 NET INTEREST INCOME 8,587 8,462
16 Provision for credit losses 885 440
------ ------
17 NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 7,702 8,022
NONINTEREST INCOME
18 Deposit account fees 1,399 1,303
19 Credit card fees 355 315
20 Trust fees 229 300
21 Other fees and commissions 1,383 1,269
22 Trading income 630 527
23 Venture capital activities 427 337
24 Net gain on sales of assets 197 71
25 Net gain on sales of
subsidiaries and operations 180 25
26 Gain on issuance of subsidiary's stock 147 -
27 Net gain on available-for-sale
securities 61 34
28 Other income 404 365
------ ------
29 TOTAL NONINTEREST INCOME 5,412 4,546
NONINTEREST EXPENSE
30 Salaries 3,291 3,309
31 Employee benefits 773 718
32 Occupancy 757 738
33 Equipment 702 663
34 Amortization of intangibles 373 428
35 Communications 363 359
36 Professional services 344 313
37 Restructuring charges 280 -
38 Regulatory fees and related expenses 123 176
39 Other expense 1,335 1,297
------ ------
40 TOTAL NONINTEREST EXPENSE 8,341 8,001
------ ------
41 INCOME BEFORE INCOME TAXES 4,773 4,567
42 Provision for income taxes 1,900 1,903
------ ------
43 NET INCOME $2,873 $2,664
====== ======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
Dec. 31 Sept. 30 Dec. 31
(in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
ASSETS
1 Cash and due from banks $ 16,223 $ 13,619 $ 14,312
2 Interest-bearing deposits in banks 5,708 5,829 5,761
3 Federal funds sold 134 306 721
4 Securities purchased under resale
agreements 7,275 6,287 4,962
5 Trading account assets 12,205 14,000 9,516
6 Available-for-sale securities 12,113 11,717 12,043
7 Held-to-maturity securities 4,138 4,200 4,656
8 Loans 165,415 161,833 155,373
9 Less: Allowance for credit losses 3,523 3,511 3,554
-------- -------- --------
10 Net loans 161,892 158,322 151,819
11 Customers' acceptance liability 2,861 3,165 2,295
12 Accrued interest receivable 1,441 1,435 1,458
13 Goodwill, net 3,938 4,017 4,192
14 Identifiable intangibles, net 1,616 1,664 1,806
15 Unrealized gains on off-balance-
sheet instruments 7,682 6,598 7,801
16 Premises and equipment, net 3,987 3,968 3,985
17 Other assets 9,540 7,826 7,119
-------- -------- --------
18 TOTAL ASSETS $250,753 $242,953 $232,446
======== ======== ========
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits in domestic offices:
19 Interest-bearing $ 84,133 $ 83,779 $ 84,097
20 Noninterest-bearing 39,694 37,589 36,820
Deposits in foreign offices:
21 Interest-bearing 42,732 42,035 37,886
22 Noninterest-bearing 1,456 1,498 1,691
-------- -------- --------
23 Total deposits 168,015 164,901 160,494
24 Federal funds purchased 2,176 1,093 5,160
25 Securities sold under repurchase
agreements 7,644 8,489 6,383
26 Other short-term borrowings 17,566 16,263 7,627
27 Acceptances outstanding 2,861 3,165 2,295
28 Accrued interest payable 879 868 848
29 Unrealized losses on off-balance-
sheet instruments 7,633 6,458 8,227
30 Other liabilities 5,981 5,750 5,862
31 Long-term debt 15,430 15,099 14,723
32 Subordinated capital notes 355 355 605
-------- -------- --------
33 TOTAL LIABILITIES 228,540 222,441 212,224
</TABLE>
(Continued on Next Page)
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(CONTINUED)
<TABLE>
<CAPTION>
Dec. 31 Sept. 30 Dec. 31
(in millions) 1996 1996 1995
-------- -------- --------
<S> <C> <C> <C>
34 Corporation obligated mandatorily
redeemable preferred securities
of subsidiary trusts holding
solely junior subordinated
deferrable interest debentures
of the Corporation 1,500 - -
STOCKHOLDERS' EQUITY
35 Preferred stock 2,242 2,242 2,623
36 Common stock 605 605 602
37 Additional paid-in capital 8,467 8,458 8,328
38 Retained earnings 11,500 10,989 9,606
39 Net unrealized gain (loss) on
available-for-sale securities 32 (27) 1
40 Common stock in treasury, at cost (2,133) (1,755) (938)
-------- -------- --------
41 TOTAL STOCKHOLDERS' EQUITY 20,713 20,512 20,222
-------- -------- --------
42 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $250,753 $242,953 $232,446
======== ======== ========
</TABLE>
