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 15, 1998
------------------------------------------------
Date of report (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)
<PAGE>
Item 5. Other Events.
------------
Attached hereto as Exhibit 99 is a copy of BankAmerica Corporation's
press release dated April 15, 1998 titled "BankAmerica First Quarter Earnings."
Item 7. Financial Statements, Pro Forma
-------------------------------
Financial Information and Exhibits.
-----------------------------------
(c) Exhibits
Exhibit
Number Description
- ------- -----------
99 BankAmerica Corporation press release dated April 15, 1998 titled
"BankAmerica First Quarter Earnings."
<PAGE>
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 15, 1998
By /s/ JOHN J. HIGGINS
------------------------------
John J. Higgins
Executive Vice President
and Chief Accounting Officer
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
- -------- -----------
99 BankAmerica Corporation press release dated
April 15, 1998 titled "BankAmerica First
Quarter Earnings."
[BANKAMERICA CORPORATION LOGO APPEARS HERE]
Exhibit 99
NEWS
For Release:
Contact: Mike Zampa
(415) 622-4524
BANKAMERICA FIRST QUARTER EARNINGS
SAN FRANCISCO, April 15, 1998 -- BankAmerica Corporation (BAC)
today reported first-quarter 1998 diluted earnings per common share of
$1.17, up 14 percent from $1.03 for the same period a year ago. Net income
for the period was $835 million, up 7 percent from $780 million for the
first quarter of 1997. The return on average common equity for the first
quarter of 1998 was 17.89 percent, an increase of 139 basis points from
the same period in 1997.
Diluted cash earnings per common share for the first quarter of
1998 were $1.26, up 13 percent from $1.12 for the first quarter of 1997.
"On Monday, April 13, 1998, BAC and NationsBank Corporation
announced a definitive agreement to merge in a stock-for-stock
transaction that will create the first truly national United States
banking franchise," said David A. Coulter, Chairman and Chief
Executive Officer. "Our earnings announcement shows the tremendous
financial strength we contribute to the combined organization.
And, I am pleased to note that NationsBank also reported strong
earnings this week. Together we will have the broadest range of products,
delivered by the best people through the most extensive distribution
system in the nation."
Coulter cited the following notable events that took place
during 1998:
o An agreement to sell BankAmerica Housing Services;
o An announcement that BAC would sell its consumer branch
and small business operations in Texas. However,
given the position that NationsBank has in Texas,
BAC will stop the sale and we will look at how to integrate
the combined operations.
- more -
<PAGE>
o The securitization of $750 million of credit card receivables;
o The sale of $6.3 billion of residential first mortgages
and $0.9 billion of manufactured housing loans in the
secondary market;
o The issuance of $350 million of tax-advantaged trust originated
preferred securities;
o The extension of the stock repurchase program authorizing
the repurchase of an additional $3.5 billion of common
stock and the redemption of an additional $450 million of
preferred stock by the end of 1999. However, due to the
announced decision to merge with NationsBank, the common
stock repurchase program has been suspended.
FINANCIAL HIGHLIGHTS:
o Net interest income for the first quarter of 1998 was
down $94 million from the same period in 1997. BAC's net
interest margin for the first quarter of 1998 was
3.84 percent, down 33 basis points from the comparable
period in 1997. The decreases in net interest income and
net interest margin were both due in part to growth in
credit card securitizations and continued higher funding
costs.
o Noninterest income for the first quarter of 1998 was
$1,813 million, an increase of $443 million, or 32 percent,
from the same period in 1997. The first-quarter 1998 amount
included growth in other fees and commissions of
$187 million, primarily attributable to the acquisition of
Robertson Stephens and Company in the fourth quarter of 1997,
higher loan servicing fees, and higher financial services
fees. In addition, income from equity investment activities
increased $84 million, and trading income rose $63 million.
Furthermore, the net gain on sales of loans and on
available-for-sale debt securities increased $56 million
and $48 million, respectively.
o Noninterest expense for the first quarter of 1998 was
$2,288 million, an increase of $255 million from the same
period in 1997. This increase was largely attributable to
increased salaries expense of $211 million, primarily due to
the acquisition of Robertson Stephens and Company and
higher variable pay related to improved trading results.
- Page 2 -
<PAGE>
o The provision for credit losses was $245 million for the
first quarter of 1998, up $25 million from the previous
quarter and from the first quarter of 1997. Net credit
losses were $239 million for the first quarter of 1998,
an increase of $35 million from the first quarter of 1997.
o Nonaccrual assets were $1,036 million at March 31, 1998, an
increase of $137 million, or 15 percent, from December 31,
1997. The increase was primarily associated with Asian
borrowers.
o In connection with BAC's ongoing efforts to effectively
manage capital, BAC repurchased 8.3 million shares of its
common stock during the first quarter of 1998 at an average
per-share price of $72.62, which reduced stockholders'
equity by approximately $600 million. These shares were
repurchased on the open market over 54 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 $4.7 billion at March 31, 1998. Due to
the announced decision to merge with NationsBank, the common
stock repurchase program has been suspended.
This press release contains forward-looking statements
conveying management's expectations as to the future. These statements
are subject to uncertainties, including those discussed in "Forward-
Looking Statements" in BAC's most recent report on Form 10-K, that may
cause actual results to differ materially. Investors are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof.
(end of text, tables follow)
This earnings report and other material of interest to investors can be found
on the 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
First Fourth First
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1998 1997 1997
------- ------- -------
<S> <C> <C> <C>
1 Net income $ 835 $ 812 $ 780
2 Earnings per common share 1.21 1.15 1.05/a/
3 Diluted earnings per common share 1.17 1.12 1.03/a/
Rate of return (based
on net income) on:
4 Average common equity 17.89% 16.68% 16.50%
5 Average total assets 1.28 1.24 1.25
6 Net interest margin/b/ 3.84 3.91 4.17
7 Full-time-equivalent staff
at period end (in thousands) 76.5 77.0 77.3
8 Employees at period
end (in thousands) 89.9 90.5 91.9
- --------------------------------------------------------------------------------
</TABLE>
/a/ Restated to reflect the implementation of Statement of Financial Accounting
Standards No. 128, "Earnings per Share" (SFAS No. 128) and a two-for-one
stock split effective June 2, 1997.
/b/ The net interest margin is computed on a tax-equivalent basis. The
taxable-equivalent basis adjustments to net interest income were $5 million,
$5 million, and $6 million, for the first quarter of 1998, the fourth
quarter of 1997, and the first quarter of 1997, respectively.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 2
SUMMARY OF RESULTS
EXCLUDING AMORTIZATION OF INTANGIBLES/a/
First Fourth First
(dollar amounts in millions, Quarter Quarter Quarter
except per share data) 1998 1997 1997
------- ------- -------
<S> <C> <C> <C>
1 Net income excluding
amortization of intangibles $ 902 $ 879 $ 846
2 Diluted cash earnings per
common share 1.26 1.21 1.12/b/
3 Rate of return on average
common equity 19.35% 18.09% 17.96%
- --------------------------------------------------------------------------------
</TABLE>
/a/ For purposes of this table, amortization amounts are related to those
intangibles that are deducted from Tier 1 capital under regulatory
guidelines. Amortization amounts excluded from this table totaled $67
million, $67 million, and $66 million, for the first quarter of 1998, the
fourth quarter of 1997, and the first quarter of 1997, respectively.
/b/ Restated to be consistent with the requirements of SFAS No. 128 and a
two-for-one stock split effective June 2, 1997.
================================================================================
<TABLE>
<CAPTION>
TABLE 3
TIER 1 CAPITAL GENERATION
First Quarter
---------------------
(in millions) 1998 1997
------ ------
<S> <C> <C>
Tier 1 generation:
1 Net income $ 835 $ 780
2 Amortization of intangibles 67 66
3 Common stock issuances and other 126 99
4 Trust preferred securities issued 339 396
------ ------
5 Total generation 1,367 1,341
Tier 1 applications:
6 Common stock dividends (236) (216)
7 Preferred stock dividends (10) (34)
8 Common stock repurchased (600) (475)
9 Preferred stock redeemed - (365)
------ -------
10 Total applications (846) (1,090)
11 Capital attributed to growth
in risk-weighted assets (281)/abc/ (116)
------ -------
12 Net capital generated $ 240 $ 135
====== =======
- --------------------------------------------------------------------------------
</TABLE>
/a/ Amount is preliminary.
/b/ Includes BAC's broker/dealer subsidiary.
/c/ Includes the effect of market risk as required by the regulators effective
January 1, 1998.
<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) 1998 1997 1997
--------- -------- ---------
<S> <C> <C> <C>
1 Book value per common share $ 28.23 $ 27.94 $ 26.25/a/
2 Common stock cash dividends 236 211 216
3 Preferred stock cash dividends 10 14 34
4 Number of common shares
outstanding (in thousands) 682,704 688,057 704,708/a/
5 Average number of common shares
outstanding (in thousands) 684,737 690,878 708,585/a/
6 Average number of diluted
common shares outstanding
(in thousands)/b/ 706,481 714,409 726,800/a/
7 Common equity to total assets 7.26% 7.39% 7.40%
8 Tier 1 risk-based capital ratio 7.61/cde/ 7.53/d/ 7.83
9 Total risk-based capital ratio 11.56/cde/ 11.56/d/ 11.87
10 Tier 1 risk-based capital $ 17,762/cde/ $ 17,291/d/ $ 17,319
11 Total risk-based capital 27,008/cde/ 26,554/d/ 26,251
12 Risk-weighted assets 233,553/cde/ 229,705/d/ 221,071
- --------------------------------------------------------------------------------
</TABLE>
/a/ Restated to reflect a two-for-one stock split effective June 2, 1997.
/b/ Reflects the implementation of SFAS No. 128.
/c/ Includes the effect of market risk as required by the regulators effective
January 1, 1998. The new requirements decreased Tier 1 and total risk-based
capital ratios by 4 basis points and 6 basis points, respectively.
/d/ Includes BAC's broker/dealer subsidiary.
/e/ Amounts are preliminary.
================================================================================
TABLE 5
SELECTED AVERAGE BALANCE SHEET COMPONENTS
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
(in millions) 1998 1997 1997
------- ------- --------
<S> <C> <C> <C>
1 Available-for-sale securities $ 12,817 $ 12,878 $ 11,595
2 Held-to-maturity securities 3,622 3,621 4,108
3 Loans 167,352 166,752 166,529
4 Earning assets 219,870 217,098 211,611
5 Total assets 263,527 258,588 252,105
6 Deposits 171,680 171,303 166,491
7 Interest-bearing liabilities 188,334 185,360 173,157
8 Common equity 18,704 18,968 18,324
9 Total equity 19,318 19,774 20,140
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 6
BUSINESS SECTORS
Three Months Ended March 31, 1998
-------------------------------------
Global Global
(dollar amounts Retail Wholesale All
in millions) Bank Bank Other Total
------- ---------- ----- -----
<S> <C> <C> <C> <C>
1 GAAP net income available
to common shareholders $ 489 $ 315 $ 21 $ 825
2 RAROC economic profit 217 167 (4) 380
3 ROIC economic profit 144 144 (15) 273
4 Average total assets 118,591 122,852 22,084 263,527
5 Average total deposits 118,163 50,275 3,242 171,680
6 GAAP avg. common equity 8,701 9,017 986 18,704
7 RAROC avg. economic capital 8,055 7,280 841 16,176
8 ROIC avg. invested capital 11,268 8,391 1,184 20,843
9 GAAP return on average
common equity 23.0% 14.4% NM 17.9%
10 Risk adjusted return
on capital 22.9% 21.3% NM 21.5%
11 Return on invested capital 17.2% 18.9% NM 17.3%
12 Expense/revenue 56.4% 50.3% NM 55.4%
13 Net interest margin 5.30% 2.40% NM 3.84%
<CAPTION>
Three Months Ended March 31, 1997
--------------------------------------
Global Global
Retail Wholesale All
Bank Bank Other Total
------- ---------- ----- -----
<S> <C> <C> <C> <C>
1 GAAP net income available
to common shareholders $ 409 $ 365 $ (28) $ 746
2 RAROC economic profit 197 121 (52) 266
3 ROIC economic profit 134 129 (64) 199
4 Average total assets 124,279 110,059 17,767 252,105
5 Average total deposits 113,954 48,179 4,358 166,491
6 GAAP avg. common equity 9,059 8,022 1,243 18,324
7 RAROC avg. economic capital 8,369 5,973 901 15,243
8 ROIC avg. invested capital 12,168 7,089 1,181 20,438
9 GAAP return on average
common equity 18.9% 18.9% NM 16.5%
10 Risk adjusted return
on capital 21.5% 20.2% NM 19.1%
11 Return on invested capital 16.4% 19.4% NM 16.0%
12 Expense/revenue 54.9% 45.7% NM 53.5%
13 Net interest margin 6.05% 2.50% NM 4.17%
- --------------------------------------------------------------------------------
</TABLE>
See notes following business sectors table.
(Continued on Next Page)
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
NOTES TO BUSINESS SECTORS TABLE
BAC examines the financial performance of its businesses from multiple capital
return perspectives to facilitate meeting various decision support needs of
managers. Each measure reflects a different level of capital, treatment of
intangible assets, and basis for recognition of credit losses. The key return on
capital measures are:
- - GAAP Return on Average Common Equity - Reflects total common equity
allocated to businesses on the basis of their relative share of BAC's total
assets and an apportionment of the corporate provision and reserve for
credit losses. Income is derived in a manner consistent with externally
reported financial statement results. This measure is oriented toward
external performance comparisons and does not allocate capital based on the
risks inherent in a specific business. Net interest margin and expense to
revenue ratios for a business are calculated using the generally accepted
accounting principles (GAAP) return on average common equity perspective.
- - Risk-Adjusted Return on Capital (RAROC) - Capital is allocated to businesses
on the basis of economic capital assignments of credit, country,
market/interest rate and business/operating risks. The assignments are based
on empirical analysis of the risks that are inherent in the operation of
each business. Credit losses reflect the statistically derived expected
losses within a given portfolio. Goodwill is not amortized in deriving this
measure. This measure includes only the capital necessary to cover the risks
of unexpected losses, and represents that which is incrementally
attributable to businesses for individual transactions. RAROC is most often
used for incremental decision analysis.
- - Return on Invested Capital (ROIC) - Risk based economic capital as assigned
through the RAROC process described above is increased by an amount equal to
the intangibles assigned to a business. Capital is thereby assumed to cover
unexpected losses plus an amount of capital necessary to fully fund growth
by acquisition. Loan losses in this measure represent net charge-offs.
Goodwill is not amortized for purposes of calculating ROIC. The Return on
Invested Capital is an all-in return concept based on a quasi-cash
derivation of net income. This measure enables managers to evaluate their
overall business performance on a comprehensive, fully allocated basis that
is oriented toward cash flows.
Interest revenue is adjusted for each return calculation to reflect changes in
the debt to equity mix under each measure.
Economic Profit, which reflects net income available to common shareholders less
a 12% charge for capital, is calculated for the RAROC and ROIC measurements.
Expense to revenue percent excludes net other real estate owned expense,
amortization of intangibles, and expenses associated with trust preferred
securities.
All Other column includes results of the Asset Management Group, Community
Development Banking, and Asset/Liability management activities.
All amounts are preliminary. For comparability purposes, both 1998 and 1997
amounts reflect BAC's internal allocation and classification methodologies in
effect at March 31, 1998.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 7
TRADING-RELATED INCOME
First Fourth First
Quarter Quarter Quarter
(in millions) 1998/a/ 1997 1997
------- ------- -------
<S> <C> <C> <C>
Trading income:
1 Interest rate products $ 45 $(28) $ 12
2 Foreign exchange contracts 158 139 92
3 Debt instruments 48 (48) 84
---- ----- ----
4 Total trading income $251 $ 63 $188
==== ==== ====
Other trading-related income/b/:
5 Interest rate products $ 6 $ 15 $ 10
6 Foreign exchange contracts 2 - 4
7 Debt instruments 88 73 50
---- ----- ----
8 Total other trading-related
income $ 96 $ 88 $ 64
==== ==== ====
- --------------------------------------------------------------------------------
</TABLE>
/a/ Detailed breakouts of total amounts are preliminary.
/b/ Primarily includes the net interest revenue associated with the respective
products.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 8
IMPACT OF CREDIT CARD SECURITIZATIONS
First Quarter 1998/a/
-------------------------------------------------
Before
Impact of Impact of
(dollar amounts Credit Card Credit Card
in millions) Securitizations Securitizations Reported
--------------- --------------- --------
<S> <C> <C> <C>
Operating Results:
1 Net interest income $ 2,194 $ (99) $ 2,095
2 Credit card fees 107 (16) 91
3 Other noninterest income 1,656 66/b/ 1,722
-------- ------- --------
4 Total revenue 3,957 (49) 3,908
5 Noninterest expense 2,288 - 2,288
-------- ------- --------
6 Income before provision
for credit losses and
income taxes 1,669 (49) 1,620
7 Provision for credit
losses 308 (63)/c/ 245
-------- ------- --------
8 Income before income
taxes $ 1,361 $ 14 $ 1,375
======== ======== ========
9 Net interest margin 3.95% (0.11)% 3.84%
Balance Sheet Data at
Period End:
10 Credit card loans
outstanding $ 10,551 $(4,871) $ 5,680
11 Total assets 270,307 (4,871) 265,436
Average Balance
Sheet Data:
12 Credit card loans 10,261 (3,843) 6,418
13 Earning assets 223,713 (3,843) 219,870
14 Total assets 267,370 (3,843) 263,527
15 Net credit losses - credit
card portfolio 174 (63) 111
Selected Financial Ratios:
16 Annualized ratio of net
credit losses on credit
card loans to average credit
card loans outstanding 6.89% 0.18% 7.07%
17 Delinquent credit card
loan ratio/d/ 4.62 (0.20) 4.42
- --------------------------------------------------------------------------------
</TABLE>
/a/ Includes the effects of accumulated credit card securitizations of $4,871
million at March 31, 1998, which includes a $500 million purchased credit
card portfolio.
/b/ Includes $14 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."
/c/ Represents charge-offs on the investor's share.
/d/ 30 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) 1998 1997 1997
-------- -------- ---------
<S> <C> <C> <C>
DOMESTIC
Consumer:
1 Residential first mortgages $ 29,675 $ 31,749 $ 35,881
2 Residential junior mortgages 14,956 14,847 14,857
3 Other installment 18,179 18,418 17,863
4 Credit card/a/ 5,680 6,697 8,365
5 Other individual lines of credit 1,833 1,937 1,939
6 Other 353 461 391
------- -------- --------
7 Total consumer 70,676 74,109 79,296
Commercial:
8 Commercial and industrial 37,765 37,595 35,659
9 Loans secured by real estate 12,968 12,897 12,445
10 Financial institutions 3,571 3,485 3,232
11 Lease financing 2,861 2,892 2,790
12 Loans for purchasing or carrying
securities 2,794 2,668 2,447
13 Construction and development
loans secured by real estate 2,350 2,206 2,261
14 Agricultural 1,641 1,824 1,475
15 Other 1,904 -------- --------
16 Total commercial 65,854 65,463 61,759
-------- -------- --------
17 Total domestic loans 136,530 139,572 141,055
FOREIGN
18 Commercial and industrial 18,939 18,484 17,540
19 Banks and other financial
institutions 3,815 3,904 3,526
20 Governments and official
institutions 723 840 1,008
21 Other 5,513 5,304 5,314
-------- -------- --------
22 Total foreign loans 28,990 28,532 27,388
-------- -------- --------
23 Total loans $165,520 $168,104 $168,443
======== ======== ========
- --------------------------------------------------------------------------------
</TABLE>
/a/ Excludes outstanding securitized credit card receivables of $4,871 million,
$3,621 million, and $1,471 million at March 31, 1998, December 31, 1997,
and March 31, 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) 1998 1997 1997
-------- -------- ---------
<S> <C> <C> <C>
Nonaccrual assets:
1 Commercial and industrial $ 258 $214 $ 276
2 Commercial loans secured by real
estate 90 104 147
3 Construction and development
loans secured by real estate 29 30 104
4 Consumer 374 393 409
5 Foreign 285 158 94
------ ---- ------
6 Total nonaccrual assets $1,036 $899 $1,030
====== ==== ======
7 Restructured loans $ 258 $274 $ 295
8 Loans past due 90 days or more
and still accruing interest/a/ 171 203 218
9 Other real estate owned 163 205 281
10 Allowance for credit losses to
total loans 2.13% 2.08% 2.10%
11 Allowance for credit losses to
total nonaccrual assets 339.67 389.31 343.43
Annualized ratio of net credit
losses to average total loan
outstandings:
12 Quarter ended 0.58 0.51 0.50
13 Year-to-date 0.58 0.54 0.50
- --------------------------------------------------------------------------------
</TABLE>
/a/ Includes consumer loans of $153 million, $189 million, and $189 million at
March 31, 1998, December 31, 1997, and March 31, 1997, respectively.
================================================================================
<TABLE>
<CAPTION>
TABLE 11
ANALYSIS OF CHANGE IN NONACCRUAL ASSETS
First
Quarter
(in millions) 1998
-------
<S> <C>
1 Balance, beginning of period $ 899
Additions:
2 Loans placed on nonaccrual status 290
Deductions:
3 Sales (50)
4 Restored to accrual status (6)
5 Foreclosures -
6 Charge-offs (38)
7 Other, primarily payments (59)
------
8 Balance, end of period $1,036
======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 12
NET CREDIT LOSSES (RECOVERIES)
First Fourth First
Quarter Quarter Quarter
(in millions) 1998 1997 1997
------- ------- -------
<S> <C> <C> <C>
Domestic consumer:
1 Residential first mortgages $ 4 $ 2 $ 7
2 Residential junior mortgages 6 9 9
3 Credit card 111 112 115
4 Other installment 62 68 59
5 Other individual lines of credit 21 22 19
6 Other 5 5 4
Domestic commercial:
7 Commercial and industrial 8 12 -
8 Loans secured by real estate 15 (2) (1)
9 Construction and development
loans secured by real estate (16) 15 (2)
10 Financial institutions, lease
financing, loans for
purchasing or carrying
securities, and agricultural - (75) (2)
---- ---- ----
11 Total domestic 216 168 208
12 Foreign 23 46 (4)
---- ---- ----
13 Total net credit losses $239 $214 $204
==== ==== ====
</TABLE>
================================================================================
<TABLE>
<CAPTION>
TABLE 13
DOMESTIC CONSUMER LOAN DELINQUENCY INFORMATION/a/
March 31 Dec. 31 March 31
(dollar amounts in millions) 1998 1997 1997
-------- -------- --------
<S> <C> <C> <C>
Delinquent consumer loans:
1 Residential first mortgages $ 810 $ 844 $ 948
2 Residential junior mortgages 119 138 151
3 Credit card 251 305 343
4 Other 304 418 345
------- ------ ------
5 Total delinquent consumer loans $1,484 $1,705 $1,787
====== ====== ======
Delinquent consumer loan ratios/b/:
6 Residential first mortgages 2.73% 2.66% 2.64%
7 Residential junior mortgages 0.79 0.93 1.02
8 Credit card 4.42 4.56 4.09
9 Other 1.49 2.01 1.71
10 Total delinquent consumer
loan ratio 2.10% 2.30% 2.25%
==== ==== ====
- --------------------------------------------------------------------------------
</TABLE>
/a/ 30 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
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TABLE 14
ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES BY LOAN TYPE /a/
March 31 December 31
1998 1997
----------------------- -----------------------
Percent Percent
(dollar amounts of Loan of Loan
in millions) Allowance Category Allowance Category
--------- -------- --------- --------
<S> <C> <C> <C> <C>
Domestic consumer:
1 Residential first
mortgages $ 78 0.26% $ 86 0.27%
2 Residential junior
mortgages 98 0.66 112 0.75
3 Credit card 373 6.56 411 6.13
4 Other consumer 801 3.93 822 3.95
Domestic commercial:
5 Commercial and
industrial/b/ 538 1.27 513 1.22
6 Loans secured by
real estate 184 1.42 189 1.46
7 Financial institutions 11 0.31 11 0.32
8 Lease financing 33 1.16 32 1.l1
9 Construction and
development loans
secured by real estate 50 2.12 48 2.16
10 Agricultural 22 1.36 21 1.15
11 Foreign 1,109 3.83 1,005 3.52
12 Unallocated 220 - 250 -
------ ---- ------ ----
13 Total $3,517 2.13% $3,500 2.08%
====== ======
- --------------------------------------------------------------------------------
</TABLE>
/a/ Includes the allowance for credit losses on impaired loans of $171 million
and $81 million at March 31, 1998 and December 31, 1997, respectively.
While management has allocated the allowance to various portfolio
segments, it is general in nature and is available for the loan portfolio in
its entirety.
/b/ Includes the allowance for credit losses for commercial and industrial
loans, loans for purchasing or carrying securities, and other commercial
loans.
<PAGE>
<TABLE>
<CAPTION>
BANKAMERICA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
TABLE 15
REGIONAL FOREIGN EXPOSURES
(in millions) March 31, 1998(a)
-----------------------------------------
Total Gross |
Cross- Local | Total
Total border- Country |Exposure
Region/Country Exposure/b/ Loans Claims/c/ Other/d/|12/31/97
-------- ------- -------- ----- |--------
<S> <C> <C> <C> <C> <C>
ASIA |
1 China $ 481 $ 201 $ 112 $ 168 | $ 690
2 Hong Kong 5,245 102 4,771 372 | 5,350
3 India 2,354 340 1,767 247 | 2,167
4 Indonesia 1,026 295 315 416 | 1,238
5 Japan 3,658 191 1,556 1,911 | 4,832
6 Korea (South) 2,955 527 476 1,952 | 3,448
7 Malaysia 1,130 9 962 159 | 1,167
8 Pakistan 541 7 528 6 | 453
9 Philippines 632 168 161 303 | 676
10 Singapore 1,874 104 1,576 194 | 2,076
11 Taiwan 1,754 362 1,265 127 | 1,827
12 Thailand 1,196 113 778 305 | 1,986
13 Other 75 - 72 3 | 73
------ ----- ----- -------- | ------
14 Total 22,921 2,419 14,339 6,163 | 25,983
|
CENTRAL AND EASTERN EUROPE |
15 Russia Federation 404 38 - 366 | 439
16 Other 551 135 87 329 | 438
------ ----- ----- ------- | ------
17 Total 955 173 87 695 | 877
|
LATIN AMERICA |
18 Argentina 1,241 281 220 740 | 1,439
19 Brazil 2,920 1,036 1,346 538 | 2,391
20 Chile 1,563 1,194 335 34 | 1,600
21 Colombia 615 390 106 119 | 685
22 Mexico 6,648 1,809/e/ 3,247 1,592 | 4,744
23 Venezuela 517 137 54 326 | 563
24 Other 127 5 - 122 | 177
------ ----- ----- ------- | ------
25 Total 13,631 4,852 5,308 3,471 | 11,599
|
26 Total $37,507 $7,444/f/$19,734 $10,329 | $38,459
======= ====== ======= ======= | =======
- --------------------------------------------------------------------------
</TABLE>
/a/ Amounts are preliminary.
/b/ Includes the following foreign assets: loans, accrued
interest, acceptances, interest-bearing deposits in banks, trading
account securities, available-for-sale and held-to-maturity
securities, other interest-bearing investments, and other monetary
assets. Amounts also include unrealized gains on off-balance-sheet
instruments, unused commitments, and available-for-sale and held-to
maturity securities that are collateralized by U.S. Treasury
securities.
/c/ Represents claims of BAC's foreign offices on local country
residents, including derivative products and unused commitments,
regardless of the currency.
/d/ Includes: accrued interest receivable, acceptances, interest-
bearing deposits in banks, trading account securities, other
interest-earning investments, other short-term monetary assets,
unrealized gains on off-balance-sheet instruments, unused commitments,
and available-for-sale and held-to-maturity securities, including
securities that are collateralized by U.S. Treasury securities as
follows: Mexico - $1,068 million, Venezuela - $252 million,
Philippines - $22 million, and Latin America Other - $87 million.
Held-to-maturity securities amounted to $1,223 million with a fair
value of $1,201 million.
/e/ Includes a $30 million loan that is collateralized by zero-coupon
U.S. Treasury securities.
/f/ Amounts also include nonaccrual loans of $243 million.
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
(in millions) 1998 1997 1997
------- ------- -------
<S> <C> <C> <C>
INTEREST INCOME
1 Loans, including fees $3,388 $3,445 $3,438
2 Interest-bearing deposits in banks 108 104 99
3 Federal funds sold 8 10 8
4 Securities purchased under
resale agreements 233 233 155
5 Trading account assets 383 340 269
6 Available-for-sale and held-to-
maturity securities 283 290 286
------ ------ ------
7 TOTAL INTEREST INCOME 4,403 4,422 4,255
INTEREST EXPENSE
8 Deposits 1,489 1,501 1,366
9 Federal funds purchased 27 21 13
10 Securities sold under repurchase
agreements 251 256 149
11 Other short-term borrowings 293 269 275
12 Long-term debt 248 253 263
------ ------ ------
13 TOTAL INTEREST EXPENSE 2,308 2,300 2,066
------ ------ ------
14 NET INTEREST INCOME 2,095 2,122 2,189
15 Provision for credit losses 245 220 220
------ ------ ------
16 NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 1,850 1,902 1,969
NONINTEREST INCOME
17 Deposit account fees 338 362 360
18 Credit and other card fees 91 102 87
19 Trust fees 75 75 57
20 Other fees and commissions 562 565 375
21 Trading income 251 63 188
22 Equity investment activities 190 225 106
23 Net gain on sales of loans 115 93 59
24 Net gain on available-for-sale
debt securities 61 12 13
25 Net gain on sales of
subsidiaries and operations 20 34 13
26 Other income 110 85 112
------ ------ ------
27 TOTAL NONINTEREST INCOME 1,813 1,616 1,370
NONINTEREST EXPENSE
28 Salaries 1,050 968 839
29 Employee benefits 179 153 189
30 Occupancy 191 192 186
31 Equipment 171 188 182
32 Professional services 112 134 75
33 Communications 97 95 93
34 Amortization of intangibles 91 90 91
35 Other expense 397 389 378
------ ------ ------
36 TOTAL NONINTEREST EXPENSE 2,288 2,209 2,033
------ ------ ------
37 INCOME BEFORE INCOME TAXES 1,375 1,309 1,306
38 Provision for income taxes 540 497 526
------ ------ ------
39 NET INCOME $ 835 $ 812 $ 780
====== ====== ======
</TABLE>
<PAGE>
BANKAMERICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
March 31 Dec. 31 March 31
(in millions) 1998 1997 1997
-------- ------- --------
<S> <C> <C> <C>
ASSETS
1 Cash and due from banks $ 14,699 $ 14,280 $ 13,561
2 Interest-bearing deposits in banks 5,737 5,862 6,390
3 Federal funds sold 1,748 105 153
4 Securities purchased under resale
agreements 11,179 9,774 7,730
5 Trading account assets 21,328 15,551 12,931
6 Available-for-sale securities 12,328 12,786 11,532
7 Held-to-maturity securities 3,645 3,667 3,972
8 Loans 165,520 168,104 168,443
9 Less: Allowance for credit losses 3,517 3,500 3,538
------- ------- -------
10 Net loans 162,003 164,604 164,905
11 Customers' acceptance liability 3,374 3,561 3,229
12 Accrued interest receivable 1,625 1,570 1,441
13 Goodwill, net 3,790 3,822 3,888
14 Identifiable intangibles, net 1,420 1,374 1,554
15 Unrealized gains on off-balance-
sheet instruments 9,347 10,929 7,813
16 Premises and equipment, net 3,831 3,880 3,985
17 Other assets 9,382 8,394 6,820
-------- -------- --------
18 TOTAL ASSETS $265,436 $260,159 $249,904
======== ======== ========
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits in domestic offices:
19 Interest-bearing $ 95,387 $ 94,495 $ 84,071
20 Noninterest-bearing 33,628 33,704 39,561
Deposits in foreign offices:
21 Interest-bearing 43,249 42,326 43,854
22 Noninterest-bearing 1,626 1,512 1,513
-------- -------- --------
23 Total deposits 173,890 172,037 168,999
24 Federal funds purchased 810 3,751 730
25 Securities sold under repurchase
agreements 13,500 11,159 7,124
26 Other short-term borrowings 18,333 15,702 18,883
27 Acceptances outstanding 3,374 3,563 3,229
28 Accrued interest payable 1,004 978 921
29 Unrealized losses on off-balance-
sheet instruments 8,792 10,502 7,473
30 Other liabilities 9,626 6,835 5,850
31 Long-term debt 14,011 13,922 14,725
------- ------- -------
32 TOTAL LIABILITIES 243,340 238,449 227,934
33 Corporation obligated mandatorily
redeemable preferred securities of
subsidiary trusts holding solely
junior subordinated deferrable
interest debentures of the
corporation (trust preferred
securities) 2,212 1,873 1,873
STOCKHOLDERS' EQUITY
34 Preferred stock 614 614 1,596
35 Common stock 1,210/a/ 1,210/a/ 605
36 Additional paid-in capital 7,994/a/ 7,974/a/ 8,473
37 Retained earnings 14,292 13,726 12,029
38 Net unrealized gain on
available-for-sale securities 66 137 (90)
39 Common stock in treasury, at cost (4,292) (3,824) (2,516)
-------- -------- --------
40 TOTAL STOCKHOLDERS' EQUITY 19,884 19,837 20,097
-------- -------- --------
41 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $265,436 $260,159 $249,904
======== ======== ========
- --------------------------------------------------------------------------------
</TABLE>
/a/ Reflects a two-for-one stock split effective June 2, 1997.
