National Processing 8-K National Processing Reports Second Quarter Financial Results Revenue and EPS up 17% and 27% over 2003

Exhibit 99.1

NEWS RELEASE

FOR MORE INFORMATION CONTACT:
David E. Fountain
National Processing, Inc.
Phone: 502.315.3311
Fax: 502.315.3535
e-mail: dfountain@npc.net
Website: www.npc.net

For Immediate Release

National Processing Reports Second Quarter Financial Results
Revenue and EPS up 17% and 27% over 2003

Louisville, Kentucky, July 16, 2004– National Processing, Inc. (NYSE: NAP) today reported financial results for the second quarter and six months ended June 30, 2004. Revenue for the second quarter of 2004 was $132.6 million, up 17% from 2003 second quarter revenue of $113.6 million. Net income for the second quarter of 2004 was $14.4 million, or $0.27 per diluted share, up 30% and 27%, respectively, from comparable 2003 net income of $11.1 million, or $0.21 per diluted share. For the six months ended June 30, 2004 revenue was $254.8 million, up 16% from $219.6 million in 2003. Net income for the six months ended June 30, 2004 was $26.4 million, or $0.49 per diluted share, up 34% and 32%, respectively, from comparable 2003 net income of $19.6 million, or $0.37 per diluted share.

Net income for the six months ended June 30, 2003 included after-tax restructuring charges of $0.8 million related to the consolidation of technology functions and a loss on the sale of 14 regional sales offices.

Merchant Card Services transaction and dollar volume increased to record levels for the second quarter and six months ended June 30, 2004. Merchant Card Services transactions processed were 1.2 billion for the quarter and 2.3 billion for the six months ended June 30, 2004, both representing an increase of 16% over comparable 2003 transaction volume. Merchant Card Services dollar volume processed was $48.4 billion for the quarter and $92.8 billion for the six months ended June 30, 2004, representing increases of 15% and 14%, respectively, over comparable 2003 dollar volumes.

As of June 30, 2004, the Company had $291 million of cash and cash equivalents with no debt and total shareholders’ equity of $551 million.

About National Processing, Inc.

National Processing, Inc. (NYSE: NAP) through its wholly-owned operating subsidiary, National Processing Company, LLC (NPC®), is a leading provider of merchant credit and debit card processing. National Processing is 83 percent owned by National City Corporation (NYSE: NCC) (www.nationalcity.com), one of the nation’s largest financial holding companies. NPC and its subsidiaries support approximately 700,000 merchant locations, representing nearly one out of every six Visa® and MasterCard® transactions processed nationally. NPC’s card processing solutions offer superior levels of service and performance and assist merchants in lowering their total cost of card acceptance through world-class people, technology, and service. Additional information regarding National Processing can be obtained at www.npc.net. On July 13, 2004, the Company announced a definitive agreement whereby Bank of America (NYSE: BAC) will purchase all of the outstanding shares of National Processing, Inc. for a cash price of $1.4 billion, or $26.60 per share.

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National Processing, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)

	Quarter Ended June 30,
	2004		2003		% Change
Revenue	$	132,623	$	113,614		17	%
Operating expenses		57,383		50,209		14	%
Assessments expense		38,160		32,963		16	%
General and administrative expenses		7,363		5,748		28	%
Depreciation and amortization		5,742		5,044		14	%
Restructuring, divestiture, and impairment charges(1)		—		1,273		-100	%
Operating profit		23,975		18,377		30	%
Net interest income		687		830		-17	%
Income before taxes and minority interest		24,662		19,207		28	%
Provision for income taxes		9,313		7,444		25	%
Income before minority interest		15,349		11,763		30	%
Minority interest		963		697		38	%
Net income	$	14,386	$	11,066		30	%
Net income per share — basic	$	0.27	$	0.21		27	%
Net income per share — diluted	$	0.27	$	0.21		27	%
Weighted average shares — basic		53,320		52,213
Weighted average shares — diluted		53,487		52,452
Shares outstanding at end of period		53,200		52,245

	Six Months Ended June 30,
	2004		2003		% Change
Revenue	$	254,837	$	219,568		16	%
Operating expenses		113,250		101,755		11	%
Assessments expense		73,077		64,169		14	%
General and administrative expenses		13,448		10,054		34	%
Depreciation and amortization		11,435		10,011		14	%
Restructuring, divestiture, and impairment charges(1)		—		1,273		-100	%
Operating profit		43,627		32,306		35	%
Net interest income		1,349		1,672		-19	%
Income before taxes and minority interest		44,976		33,978		32	%
Provision for income taxes		16,921		13,139		29	%
Income before minority interest		28,055		20,839		35	%
Minority interest		1,705		1,226		39	%
Net income	$	26,350	$	19,613		34	%
Net income per share — basic	$	0.49	$	0.38		31	%
Net income per share — diluted	$	0.49	$	0.37		32	%
Weighted average shares — basic		53,299		52,168
Weighted average shares — diluted		53,444		52,377
Shares outstanding at end of period		53,200		52,245

(1) The quarter and six months ended June 30, 2003 included $1,273 ($763 after-tax) of restructuring charges related to the consolidation of technology functions and a loss on the sale of 14 regional sales offices.

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National Processing, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)

	June 30,			December 31,			June 30,
	2004			2003			2003
Cash and cash equivalents	$	290,650		$	246,957		$	214,806
Accounts receivable — trade		121,200			136,346			113,456
Other current assets		12,277			10,177			11,002
Total current assets		424,127			393,480			339,264
Property and equipment		117,149			107,889			108,111
Accumulated depreciation		(63,603	)		(57,238	)		(56,843	)
Net property and equipment		53,546			50,651			51,268
Goodwill		115,306			115,306			115,195
Other intangible assets		38,251			43,312			48,070
Other assets		12,933			19,225			14,505
Total assets	$	644,163		$	621,974		$	568,302
Accounts payable — trade	$	26,362		$	26,426		$	23,612
Other current liabilities		62,405			69,048			63,881
Total current liabilities		88,767			95,474			87,493
Minority interest		1,713			2,772			1,247
Other liabilities		2,445			1,945			2,093
Total liabilities		92,925			100,191			90,833
Total shareholders’ equity		551,238			521,783			477,469
Total liabilities and shareholders’ equity	$	644,163		$	621,974		$	568,302

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National Processing, Inc.
Financial Summary
(In thousands, except per share amounts)
(Unaudited)

CASH FLOW:

	Quarter Ended June 30,
	2004			2003			% Change
Net income	$	14,386		$	11,066			30	%
Non-cash and working capital items		(16,449	)		8,277			-299	%
Cash (used in) provided by operating activities		(2,063	)		19,343			-111	%
Capital expenditures		(4,232	)		(1,692	)		150	%
Acquisitions, net of cash received		—			(32,356	)		-100	%
Cash used in investing activities		(4,232	)		(34,048	)		-88	%
Cash proceeds from exercise of stock options		1,056			153			590	%
Principal payments under capital leases		(118	)		(32	)		269	%
Cash provided by financing activities		938			121			675	%
Net decrease in cash and cash equivalents		(5,357	)		(14,584	)		-63	%
Cash and cash equivalents, beginning of period		296,007			229,390			29	%
Cash and cash equivalents, end of period	$	290,650		$	214,806			35	%

	Six Months Ended June 30,
	2004			2003			% Change
Net income	$	26,350		$	19,613			34	%
Non-cash and working capital items		24,596			44,022			-44	%
Cash provided by operating activities		50,946			63,635			-20	%
Capital expenditures		(8,583	)		(3,408	)		152	%
Acquisitions, net of cash received		—			(32,356	)		-100	%
Cash used in investing activities		(8,583	)		(35,764	)		-76	%
Cash proceeds from exercise of stock options		1,516			1,487			2	%
Principal payments under capital leases		(186	)		(65	)		186	%
Cash provided by financing activities		1,330			1,422			-6	%
Net increase in cash and cash equivalents		43,693			29,293			49	%
Cash and cash equivalents, beginning of period		246,957			185,513			33	%
Cash and cash equivalents, end of period	$	290,650		$	214,806			35	%

NOTE: Certain 2003 amounts in the Financial Summary have been reclassified to conform with 2004 presentation. Reclassifications had no effect on previously reported net income or equity.