-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, hIJs6NibbxvA6wqKynlOy6AU2FC5kl4Ze0Bi3slLLiJshheg3HQD489DVZdzYGI/ TK+UN3rzW9se5CSZoZf63g== 0000070858-95-000006.txt : 19950426 0000070858-95-000006.hdr.sgml : 19950426 ACCESSION NUMBER: 0000070858-95-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950417 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950425 SROS: AMEX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONSBANK CORP CENTRAL INDEX KEY: 0000070858 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 560906609 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06523 FILM NUMBER: 95530954 BUSINESS ADDRESS: STREET 1: NATIONSBANK CORPORATE CENTER STREET 2: NC1007 19 04 CITY: CHARLOTTE STATE: NC ZIP: 28255 BUSINESS PHONE: 7043865000 MAIL ADDRESS: STREET 1: NATIONALSBANK CORPORATE CENTER STREET 2: NC1007 19 04 CITY: CHARLOTTE STATE: NC ZIP: 28255 FORMER COMPANY: FORMER CONFORMED NAME: NCNB CORP DATE OF NAME CHANGE: 19920107 8-K 1 BODY OF 8-K 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, AS AMENDED Date of Report (Date of Earliest Event Reported): April 17, 1995 NATIONSBANK CORPORATION ------------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) North Carolina 1-6523 56-0906609 ------------------------ ------------ ------------------- (State of Incorporation) (Commission (IRS Employer File Number) Identification No.) NationsBank Corporate Center, Charlotte, North Carolina 28255 - -------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (704) 386-5000 - -------------------------------------------------------------------------- (Registrant's Telephone Number, including Area Code) ITEM 5. OTHER EVENTS. Release of First Quarter Earnings. On April 17, 1995, the Registrant announced financial results for the first quarter of fiscal 1995, reporting net income of $443 million and earnings per common share of $1.60. A copy of the press release announcing the results of the Registrant's fiscal quarter ended March 31, 1995 is filed as Exhibit 99.1 to this Current Report on Form 8-K. -2- ITEM 7. EXHIBITS. The following exhibit is filed herewith: Exhibit No. Description of Exhibit - ----------- ---------------------- 99.1 Press Release dated April 17, 1995 with respect to the Registrant's financial results for the fiscal quarter ended March 31, 1995. -3- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NATIONSBANK CORPORATION By: /s/ Marc D. Oken -------------------------- Marc D. Oken Chief Accounting Officer Dated: April 25, 1995 -4- EXHIBIT INDEX Exhibit No. Description of Exhibit - ----------- ---------------------- 99.1 Press Release dated April 17, 1995 with respect to the Registrant's financial results for the fiscal quarter ended March 31, 1995. EX-99.1 2 EXHIBIT 99.1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE NATIONSBANK REPORTS 6% EARNINGS GROWTH IN FIRST QUARTER 1995 CHARLOTTE NC, April 17, 1995 -- NationsBank Corporation today reported first quarter 1995 net income of $443 million, a six-percent increase over the $417 million earned in the first quarter of 1994. Earnings per common share for the first quarter of 1995 rose five percent to $1.60, compared to $1.52 per share in the first quarter 1994. Return on common shareholders' equity was 16.0 percent for the current quarter. "This quarter represents an excellent start to the year. Strong loan growth continued to drive earnings growth, along with increasing fee income," said Hugh McColl, chairman and chief executive officer. Average loans and leases of $103.8 billion in the first quarter of 1995 were more than 13 percent greater than year-earlier levels. This growth was led by increases in commercial lending, excluding real estate, and continued strength in consumer lending, primarily residential mortgage. Average loans and leases grew $4.1 billion during the quarter, a 17-percent annualized rate, compared to the fourth quarter of 1994. This loan growth more than offset the declining spreads on the discretionary asset portfolios, leading to an increase in net interest income to $1.34 billion, up $25 million in the first quarter of 1995 compared to the year-ago quarter. The net interest yield for the first quarter of 1995 was 3.41 percent, down from a yield of 3.69 percent a year ago. This decline was a result of the spread compression between the yield on investment securities and market-based funding costs. Average deposits in this year's first quarter were $99.3 billion versus $90.3 billion in the year-ago quarter. Core customer-based deposits of $83.8 billion in the most recent quarter made up 84 percent of total deposits. Noninterest income rose seven percent to $726 million in the first quarter of 1995, compared to the year-ago quarter, driven by growth in deposit fees, investment banking revenue, and acquisition-related mortgage servicing fees. -1- Noninterest expense totaled $1.29 billion in the first quarter of 1995, compared to $1.22 billion in the first quarter of 1994. Investment in personnel, particularly in the Capital Markets and Financial Products areas, and additional spending on marketing programs accounted for most of the increase. Noninterest income and noninterest expense reflected increases in brokerage-related amounts due to the total ownership of NationsSecurities. Total nonperforming assets fell by $561 million, or 34 percent, versus levels at March 31, 1994. This decline primarily reflected payments resulting from the improved financial condition of borrowers and the results of the Corporation's continuing loan workout activities. Total nonperforming assets stood at $1.08 billion on March 31, 1995, or 1.00 percent of net loans, leases and factored receivables, and other real estate owned. This compared to nonperforming assets of $1.64 billion on March 31, 1994, or 1.73 percent of net levels. Net charge-offs were $83 million, or .32 percent of average net loans, leases and factored receivables, in the most recent quarter, versus $90 million, or .39 percent of average levels, in last year's first quarter. The allowance for credit losses totaled $2.17 billion at March 31, 1995 and equaled 2.03 percent of net loans, leases and factored receivables. The allowance represented 254 percent of nonperforming loans at March 31, 1995, versus 205 percent at March 31, 1994. Provision expense in the first quarter of 1995 was $70 million, compared to the first quarter 1994 level of $100 million. Other real estate owned expense was $2 million in the first quarter of 1995, versus $5 million in the year-ago quarter. On March 31, 1995, total earning assets were $166 billion, of which net loans and leases were $106 billion and securities were $27 billion. -2- Total shareholders' equity rose 12 percent from year-ago levels to $11.3 billion on March 31, 1995. This represented 6.17 percent of period-end assets. Book value per common share increased 11 percent to $41.07 on March 31, 1995, compared to the year-ago quarter. Common shares outstanding at March 31, 1995 were 275.4 million compared to 274.5 million one year ago and down one million shares from 276.5 million shares at December 31, 1994, due to share repurchases. Total market capitalization was $14.0 billion at March 31, 1995. Quarterly common dividends paid per share increased nine percent in the first quarter to $.50 from $.46 per share in the first quarter of 1994. Tier 1 and total risk-based capital ratios of 7.25 percent and 11.06 percent, respectively, and a leverage ratio of 6.15 percent all compared favorably with regulatory guidelines at March 31, 1995. NationsBank Corporation is a bank holding company that provides financial products and services nationally and internationally to individuals, businesses, corporations, institutional investors and government agencies. Headquartered in Charlotte, N.C., NationsBank has a retail banking franchise in nine states and the District of Columbia. As of March 31, 1995, NationsBank had total assets of $184 billion. -3- NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
THREE MONTHS ENDED MARCH 31 ------------------- 1995 1994 --------- -------- FINANCIAL SUMMARY ----------------- (In millions except per-share data) Net income $443 $417 Earnings per common share 1.60 1.52 Fully diluted earnings per common share 1.58 1.51 Average common shares issued 276.415 271.947 Average fully diluted common shares issued 279.997 275.725 Price per share of common stock at period end $50 3/4 $45 3/4 Common dividends paid 138 127 Common dividends paid per share 0.50 0.46 Preferred dividends paid 2 3 EARNINGS SUMMARY ---------------- (Taxable-equivalent in millions) Net interest income $1,335 $1,310 Provision for credit losses (70) (100) Gains on sales of securities 1 14 Noninterest income 726 680 Other real estate owned expense (2) (5) Noninterest expense (1,288) (1,219) --------- -------- Income before income taxes 702 680 Income taxes - including FTE adjustment* (259) (263) --------- -------- Net income $443 $417 ========= ======== *FTE adjustment $28 $22 AVERAGE BALANCE SHEET SUMMARY ----------------------------- (In billions) Loans and leases, net $103.827 $91.608 Securities held for investment 17.648 12.714 Securities available for sale 7.728 14.545 Total securities 25.376 27.259 Earning assets 158.149 143.734 Total assets 177.515 161.294 Noninterest-bearing deposits 19.984 19.897 Interest-bearing deposits 79.301 70.363 Total deposits 99.285 90.260 Shareholders' equity 11.192 10.080 Common shareholders' equity 11.158 9.971 OTHER FINANCIAL DATA -------------------- Net interest yield 3.41% 3.69% Return on average assets 1.01 1.05 Return on average common shareholders' equity 16.03 16.82 Gross charge-offs (in millions) $134 $146 Net charge-offs (in millions) 83 90 % of average loans, leases and factored accounts receivable, net 0.32% 0.39%
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MARCH 31 ------------------- 1995 1994 --------- -------- BALANCE SHEET SUMMARY --------------------- (In billions) Loans and leases, net $105.704 $92.130 Securities held for investment 17.546 14.442 Securities available for sale 8.962 15.927 Total securities 26.508 30.369 Earning assets 165.549 148.506 Factored accounts receivable 1.224 1.637 Total intangibles 2.212 1.389 Total assets 183.854 165.071 Noninterest-bearing deposits 20.264 20.172 Interest-bearing deposits 80.479 70.584 Total deposits 100.743 90.756 Shareholders' equity 11.346 10.172 Common shareholders' equity 11.312 10.146 Per common share (not in billions) 41.07 36.96 Risk-based capital Tier 1 capital $9.727 $8.819 Tier 1 capital ratio 7.25% 7.50% Total capital $14.841 $13.707 Total capital ratio 11.06% 11.66% Leverage ratio 6.15% 6.11% Common shares issued (in millions) 275.418 274.537 Allowance for credit losses $2.174 $2.187 Allowance as % of net loans, leases, and factored accounts receivable 2.03% 2.33% Allowance for credit losses as % of nonperforming loans 254.49 205.04 Nonperforming loans $0.854 $1.067 Nonperforming assets 1.075 1.636 Nonperforming assets as % of: Total assets 0.58% 0.99% Net loans, leases, factored accounts receivable and other real estate owned 1.00 1.73 OTHER DATA ---------- Full-time equivalent headcount 60,722 58,122 Banking centers 1,902 1,938
AVERAGE FOR THREE MONTHS ENDED MARCH 31 ------------------------ 1995 1994 ---------- ---------- COMPOSITION OF LOAN PORTFOLIO - ----------------------------- Commercial 44% 44% Real estate: Commercial 7 9 Construction 3 4 --- --- Total real estate 10 13 Consumer 20 21 Residential mortgage 17 15 Credit card 4 4 Lease financing 3 2 Foreign 2 1 ---------- ---------- Total loans and leases 100% 100% ========== ==========
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