FOR IMMEDIATE RELEASE EXHIBIT 99.1 ------------ NATIONSBANK POSTED EARNINGS OF $590 MILLION UP 33 % IN FIRST QUARTER 1996 CHARLOTTE NC, April 15, 1996 -- The combination of excellent revenue growth and well-managed expenses resulted in record first-quarter operating earnings of $590 million for NationsBank. "These first quarter results provide an excellent start to the year," said Hugh L. McColl, chairman and chief executive officer. "Our performance highlights the broad-based earnings growth that our company is capable of producing. "Our recent acquisitions in Florida and Georgia strengthened our market share and earning power in these fast-growing states. The combination of these acquisitions and our solid internal earnings growth clearly has increased the value we deliver to our shareholders." First quarter 1996 results include the impact of several acquisitions completed close to the end of 1995; therefore, quarterly growth comparisons reflect the impact of these acquisitions in addition to internal growth. Earnings Highlights (first quarter 1996 compared to first quarter 1995) - ------------------- * Net interest income increased 19 percent to $1.6 billion * Noninterest income rose 22 percent to $885 million * The efficiency ratio improved to 56.4 percent NationsBank earned $590 million in the first quarter of 1996, before a merger-related charge. This represented a 33-percent increase from the $443 million earned in the first quarter of 1995. Operating earnings per common share for the first quarter of 1996 rose 22 percent to $1.95, from $1.60 per common share in the first quarter of 1995. The operating return on common shareholders' equity rose to 18.1 percent in the first quarter of 1996. As a result of the merger-related, after-tax charge of $77 million, reported net income and earnings per share were $513 million and $1.70, respectively, in the first quarter 1996. 1 Net Interest Income - ------------------- In the first quarter of 1996, average loans and leases grew 19 percent over year-earlier levels to $123 billion. This increase was driven by a 35- percent increase in average consumer loans, primarily residential mortgage and bank card loans. This loan growth led to a 19-percent increase in net interest income on a taxable-equivalent basis to $1.6 billion in the first quarter 1996. Noninterest Income - ------------------ Noninterest income rose 22 percent to $885 million in the first quarter of 1996, reflecting the diverse fee-generating activities of the company. Higher investment banking fees, service fees and mortgage servicing fees drove the year-over-year increase. Efficiency - ---------- Strong revenue growth outpaced expense growth in the first quarter of 1996, improving the efficiency ratio to 56.4 percent, a 605-basis-point progression from 62.5 percent in the year-ago quarter. Credit Quality - -------------- Total nonperforming assets were $985 million on March 31, 1996, or .79 percent of net loans, leases and factored receivables and other real estate owned. This compared to 1.00 percent of net levels on March 31, 1995. The allowance for credit losses totaled $2.25 billion at March 31, 1996 and equaled 268 percent of nonperforming loans, up from 254 percent at March 31, 1995. In the first quarter of 1996, net charge-offs were $155 million, or .50 percent of average net loans, leases and factored receivables, compared to .32 percent of average levels in the first quarter of 1995. 2 Capital Strength - ---------------- Total shareholders' equity climbed 19 percent to $13.6 billion on March 31, 1996 from levels one year ago. This represented 6.97 percent of period-end assets. Book value per common share rose nine percent to $44.92 at the end of the first quarter 1996. 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, 1996, NationsBank had total assets of $194 billion. 3 NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS THREE MONTHS ENDED MARCH 31 1996 1995 FINANCIAL OPERATING SUMMARY (In millions except per-share data) Net income $590 $443 Earnings per common share 1.95 1.60 Fully diluted earnings per common share 1.92 1.58 Average common shares issued 300.279 276.415 Average fully diluted common shares issued 305.473 279.997 Price per share of common stock at period end $80.125 $50.750 Common dividends paid 174 138 Common dividends paid per share 0.58 0.50 Preferred dividends paid 4 2 OPERATING EARNINGS SUMMARY (Taxable-equivalent in millions) Net interest income $1,584 $1,335 Provision for credit losses (155) (70) Gains on sales of securities 14 1 Noninterest income 885 726 Other real estate owned (expense) - (2) Other noninterest expense (1,394) (1,288) Income before income taxes 934 702 Income taxes - including FTE adjustment* (344) (259) Net income $590 $443 *FTE adjustment $27 $28 AVERAGE BALANCE SHEET SUMMARY (In billions) Loans and leases, net $123.282 $103.827 Securities held for investment 4.292 17.648 Securities available for sale 22.997 7.728 Total securities 27.289 25.376 Earning assets 185.566 158.149 Total assets 208.617 177.515 Noninterest-bearing deposits 23.209 19.984 Interest-bearing deposits 83.697 79.301 Total deposits 106.906 99.285 Shareholders' equity 13.144 11.192 Common shareholders' equity 13.037 11.158 OTHER OPERATING FINANCIAL DATA Net interest yield 3.43% 3.41% Return on average assets 1.14 1.01 1 Return on average common shareholders' equity 18.07 16.03 Gross charge-offs (in millions) $210 $134 Net charge-offs (in millions) 155 83 % of average loans, leases and factored accounts receivable, net 0.50% 0.32% Efficiency Ratio 56.44 62.49 REPORTED RESULTS (OPERATING RESULTS INCLUDING MERGER-RELATED CHARGE) Net Income $513 $443 Earnings per common share 1.70 1.60 Fully diluted earnings per common share 1.67 1.58 Return on average common shareholders' equity 15.71% 16.03% MARCH 31 1996 1995 BALANCE SHEET SUMMARY (In billions) Loans and leases, net $123.169 $105.704 Securities held for investment 4.104 17.546 Securities available for sale 17.771 8.962 Total securities 21.875 26.508 Earning assets 174.053 165.549 Factored accounts receivable 1.175 1.224 Mortgage servicing rights .782 .705 Goodwill, core deposit and and other intangibles 1.814 1.507 Total assets 194.375 183.854 Noninterest-bearing deposits 24.101 20.264 Interest-bearing deposits 85.521 80.479 Total deposits 109.622 100.743 Shareholders' equity 13.557 11.346 Common shareholders' equity 13.444 11.312 Per common share (not in billions) 44.92 41.07 Risk-based capital Tier 1 capital $11.479 $9.727 Tier 1 capital ratio 7.35% 7.25% Total capital $18.280 $14.841 Total capital ratio 11.71% 11.06% Leverage ratio 6.19% 6.15% Common shares issued (in millions) 299.318 275.418 Allowance for credit losses $2.253 $2.174 Allowance as % of net loans, leases, and factored accounts receivable 1.81% 2.03% Allowance for credit losses as % of nonperforming loans 267.71 254.49 2 Nonperforming loans $.841 $.854 Nonperforming assets 0.985 1.075 Nonperforming assets as % of: Total assets 0.51% 0.58% Net loans, leases, factored accounts receivable and other real estate owned .79 1.00 OTHER DATA Full-time equivalent headcount 61,070 60,722 Banking centers 2,005 1,902 ATMs 2,946 2,182 BUSINESS UNIT RESULTS - Three months ended March 31, 1996 (in millions) Return on Average Loans Total Revenue Net Income Equity and Leases,net General Bank $1,732 70% $386 65% 22% $81,056 65% Global Finance 555 22% 167 28% 18% 35,207 28% Financial Services 171 7% 36 6% 13% 7,734 6% 3