BBVA Compass reports record quarterly earnings

July 27, 2017

HOUSTON, July 27, 2017 /PRNewswire/ --

  • Net income reaches quarterly record of $157 million
    • Net income up 29 percent from a year ago and 30 percent compared to 1Q17 levels
    • Return on average assets and return on average tangible equity1 for the quarter were 0.72 percent and 7.93 percent, respectively
  • Total revenue increases 9 percent from prior year levels and 18 percent (annualized) from 1Q17 levels
    • Net interest income (NII) increases $82 million or 16 percent from a year ago
    • NII linked quarter growth more pronounced at 25 percent (annualized)
    • Net interest margin (FTE) increases 56 basis points from prior year and 15 basis points from first quarter 2017 levels
  • Targeted balance sheet growth and continued focus on spread management
    • Average total loans of $59.9 billion down 4 percent from prior year
      • Newly funded customer loans of $7.5 billion in the first half of 2017
    • Average total deposits of $65.7 billion down 4 percent from prior year
      • Average noninterest bearing deposits up 3 percent
      • Noninterest bearing deposits represent 32 percent of total deposits
  • Credit quality metrics show continued improvement, led by energy portfolio
    • Nonperforming loan ratio at 1.37 percent, down 26 basis points from 4Q16
    • Allowance to loan ratio at 1.36 percent and coverage ratio at 100 percent
  • Results of CCAR and DFAST provide further evidence of strong capital position
    • Common Equity Tier 1 (CET1) capital ratio (phased-in)2 increases to 11.89 percent
    • Regulatory capital ratios2 significantly above "well-capitalized" guidelines

BBVA Compass corporate logo (PRNewsFoto/BBVA Compass)

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today record net income of $157 million for the second quarter of 2017, a 29 percent increase from the $123 million earned during the second quarter of 2016 and a 30 percent increase from the $121 million earned during the first quarter of 2017. Return on average assets and return on average tangible equity1 for the second quarter of 2017 were 0.72 percent and 7.93 percent, respectively.

Net income for the first six months of 2017 totaled $278 million, an increase of 72 percent from the $162 million earned during the first six months of 2016. Return on average assets and return on average tangible equity1 for the first six months of 2017 were 0.64 percent and 7.12 percent, respectively.

"Our strong second quarter results attest to the collective strength of our teammates, and also reflect our unparalleled passion for the best customer service," said Onur Genç, president and CEO of BBVA Compass. "As we move forward, we'll continue to build on the key components of our financial success, some of which include targeted balance sheet growth that optimizes capital, effective spread management, deposit cost control and continued improvement in credit quality metrics."

Total revenue for the quarter was $832 million, an increase of 9 percent from second quarter 2016 levels that was driven by an increase in net interest income. Net interest income totaled $585 million, an increase of $82 million or 16 percent from the second quarter of 2016 and an increase of $34 million or 25 percent (annualized) on a linked-quarter basis with first quarter 2017. The percent net interest margin in the second quarter was 3.11 percent, up 56 basis points from the quarter a year ago and 15 basis points on a linked-quarter basis.

"The increase in net interest income certainly reflects the benefit of higher short-term interest rates and the interest rate sensitivity position of our balance sheet, which positively impacted earning asset yields, particularly loan yields," Genç noted. "At the same time, it also reflects our continued efforts focused on prudently managing spreads and maintaining a disciplined deposit pricing strategy."

Noninterest income for the quarter totaled $246 million, a decrease of 4 percent compared to the $257 million recorded for the second quarter of 2016 as positive gains in each of our major fee-based businesses were offset by a decline in investment banking and advisory fees and other income associated with this area. On a linked quarter basis, noninterest income increased 3 percent annualized as the increase in fee-based businesses, particularly card and merchant processing, money transfer income and corporate and correspondent investment sales, more than offset the decline in investment banking and advisory fees. Noninterest expense totaled $572 million, an increase of 6 percent compared to the year ago quarter. On a year-to-date basis, total noninterest expense declined 1 percent compared to the same period a year ago.

With respect to the balance sheet, average total loans for the second quarter of 2017 were $59.9 billion, a decrease of 4 percent from $62.4 billion for the second quarter of 2016. This decrease further reflects the company's focus on targeted loan growth aimed at enhancing long-term profitability while also efficiently optimizing capital consumption. During the first half of 2017, approximately $7.5 billion of customer loans were funded, including $4.0 billion during the second quarter. Average total deposits for the quarter decreased 4 percent to $65.7 billion, primarily as a result of a decrease in higher rate deposits. Conversely, average noninterest bearing demand deposits increased 3 percent and now represents 32 percent of total deposits.

Credit quality metrics showed continued improvement, following the trend of the past several quarters. Nonperforming loans totaled $821 million at the end of the quarter, a decrease of $72 million compared to first quarter 2017 and $162 million since the end of the fourth quarter of 2016. Nonperforming loans as a percentage of total loans were 1.37 percent, down from 1.49 percent at the end of the first quarter of 2017 and 1.63 percent at year-end 2016. The decrease continues to reflect improvement in the company's primarily reserved-based energy portfolio that represents 4.9 percent of total loans compared to 6 percent a year ago. Net charge-offs as a percentage of average loans totaled 42 basis points in the quarter, down from 57 basis points in the first quarter of 2017 and 43 basis points in the second quarter of 2016. The allowance for loan losses as a percentage of total loans ended the quarter at 1.36 percent while the coverage ratio of nonperforming loans stood at 100 percent.

Total shareholder's equity at the end of the second quarter totaled $13.0 billion, a 2 percent increase from $12.7 billion at the end of the second quarter of 2016. The CET1 ratio rose to 11.89 percent2 at the end of the second quarter of 2017, up 40 basis points from the end of the fourth quarter of 2016 and 110 basis points from the end of the second quarter of 2016. Each of the company's other regulatory capital ratios remain significantly above "well-capitalized" guidelines at the end of the quarter.

"BBVA Compass has been part of the Comprehensive Capital Analysis and Review for four years, and in each, our capital plan has received no-objection from the Federal Reserve," Genç said. "Our strong capital position will support us as we continue to transform digitally to get ready for the challenges and opportunities of 21st century banking."

__________________________
1 Average tangible equity is a non-GAAP financial measure that we believe aids in understanding certain areas of our performance. The calculation of this measure is included on the page titled Non-GAAP Reconciliation.

2 Regulatory ratios at June 30, 2017, are estimated.

About BBVA Compass
BBVA Compass  is a Sunbelt-based financial institution that operates 651 branches, including 337 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 38 in Colorado and 18 in New Mexico. BBVA Compass ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (5th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 5th nationally in the total number of SBA loans originated in fiscal year 2016. Additional information about BBVA Compass can be found under the Investor Relations tab at bbvacompass.com, by following @BBVACompassNews on Twitter or visiting newsroom.bbvacompass.com.

About BBVA Group
BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group is the largest financial institution in Spain and Mexico and it has leading franchises in South America and the Sunbelt Region of the United States; and it is also the leading shareholder in Garanti, Turkey's biggest bank for market capitalization. Its diversified business is focused on high-growth markets and it relies on technology as a key sustainable competitive advantage. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies the best practices. More information about BBVA Group can be found at bbva.com.

Forward-Looking Statements
Certain statements in this press release may contain forward-looking statements about BBVA Compass Bancshares, Inc. (the "Company") and its industry that involve substantial risks and uncertainties. The use of "we," "our" and similar terms refer to the Company. Statements other than statements of current or historical fact, including statements regarding our future financial condition, results of operations, business plans, liquidity, cash flows, projected costs, and the impact of any laws or regulations applicable to the Company, constitute forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions are intended to identify these forward-looking statements. These forward-looking statements reflect the Company's views regarding future events and financial performance. Such statements are subject to risks, uncertainties, assumptions and other important factors, many of which may be beyond the Company's control, that could cause actual results to differ materially from anticipated results. If the Company's assumptions and estimates are incorrect, or if the Company becomes subject to significant limitations as the result of litigation or regulatory action, then the Company's actual results could vary materially from those expressed or implied in these forward-looking statements. The forward-looking statements are and will be based on the Company's then current views and assumptions regarding future events and speak only as of their dates made. The Company assumes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by securities law or regulation. For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Risk Factors" section of the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 1, 2017, as updated by our subsequent SEC filings.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)






















Three Months Ended June 30,


%


Six Months Ended June 30,


%









2017


2016


 Change 


2017


2016


 Change 







EARNINGS SUMMARY



















Net interest income


$       585,828


$       504,238


16


$    1,137,261


$    1,021,120


11







Noninterest income [a]


246,325


256,562


(4)


491,012


501,414


(2)







Total revenue [a]


832,153


760,800


9


1,628,273


1,522,534


7







Investment securities gain, net



21,684


(100)



30,037


(100)







Provision for loan losses


45,285


86,673


(48)


125,424


199,918


(37)







Noninterest expense


572,485


541,037


6


1,121,797


1,133,181


(1)







Pretax income


214,383


154,774


39


381,052


219,472


74







Income tax expense


56,943


32,272


76


102,789


57,703


78







Net income


157,440


122,502


29


278,263


161,769


72







Net income attributable to noncontrolling interests


431


518


(17)


874


1,046


(16)







Net income attributable to BBVA Compass Bancshares, Inc.


$       157,009


$       121,984


29


$       277,389


$       160,723


73


























SELECTED RATIOS



















Return on average assets


0.72 %


0.53 %




0.64 %


0.35 %









Return on average tangible equity [b]


7.93


6.45




7.12


4.27









Average common equity to average assets


14.57


13.79




14.47


13.79









Average loans to average total deposits


91.16


91.11




90.45


91.63









Common equity tier I capital (CET1) [c]


11.89


10.79




11.89


10.79









Tier I capital ratio [c]


12.24


11.14




12.24


11.14









Total capital ratio [c]


14.61


13.66




14.61


13.66









Leverage ratio [c]


9.82


8.78




9.82


8.78




































































Average for Three Months




Average for Six Months




Ending Balance





Ended June 30,


%


Ended June 30,


%


June 30,


%



2017


2016


 Change 


2017


2016


 Change 


2017


2016


 Change 

BALANCE SHEET HIGHLIGHTS















Total loans


$  59,902,725


$  62,355,245


(4)


$  60,113,615


$  62,275,604


(3)


$  59,955,718


$  61,788,375


(3)

Total investment securities


13,117,321


12,493,595


5


12,999,704


12,488,652


4


13,286,015


12,617,412


5

Earning assets


78,182,674


82,809,254


(6)


78,223,352


82,556,235


(5)


78,063,746


78,813,552


(1)

Total assets


87,474,348


92,440,585


(5)


87,575,056


92,372,846


(5)


87,003,919


91,753,156


(5)

Noninterest bearing demand deposits


21,110,531


20,521,323


3


20,845,583


20,289,233


3


21,000,630


20,132,164


4

Interest bearing transaction accounts


32,566,221


32,975,782


(1)


32,985,683


32,918,640



32,472,406


32,625,540


Total transaction accounts


53,676,752


53,497,105



53,831,266


53,207,873


1


53,473,036


52,757,704


1

Total deposits


65,711,133


68,441,915


(4)


66,459,835


67,960,764


(2)


65,617,380


67,750,318


(3)

Total shareholder's equity


13,004,717


12,751,155


2


12,929,108


12,739,562


1


12,989,630


12,726,996


2




















[a]  Excludes net gain on sales of investment securities.

[b]  Non-GAAP measure that we believe aids in understanding certain areas of our performance.  The calculation of this measure is included on the page titled Non-GAAP Reconciliation.

[c]  Current period regulatory capital ratios are estimated.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)








2017


2016



June 30


March 31


December 31


September 30


June 30

NONPERFORMING ASSETS











Nonaccrual loans [a]


$  760,313


$  825,988


$     921,042


$   1,086,018


$  1,026,592

Loans 90 days or more past due [b]


59,434


65,617


61,542


65,525


60,320

TDRs 90 days or more past due


969


1,185


589


618


998

Total nonperforming loans [a]


820,716


892,790


983,173


1,152,161


1,087,910

Other real estate owned, net (OREO)


22,965


25,113


21,112


21,670


18,225

Other repossessed assets


12,298


9,540


7,587


6,900


9,380

Total nonperforming assets


$  855,979


$  927,443


$  1,011,872


$   1,180,731


$  1,115,515












TDRs accruing and past due less than 90 days


$    97,088


$  128,558


$     110,733


$      116,941


$     118,222












Total nonperforming loans as a % of loans


1.37 %


1.49 %


1.63 %


1.91 %


1.76 %

Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets


1.43


1.55


1.68


1.96


1.80














Three Months Ended



2017


2016



June 30


March 31


December 31


September 30


June 30

ALLOWANCE FOR LOAN LOSSES











Balance at beginning of period


$  834,106


$  838,293


$     862,080


$      843,051


$     822,440

Net charge-offs (NCO)


62,439


84,326


61,351


46,078


66,062

Provision for loan losses


45,285


80,139


37,564


65,107


86,673

Balance at end of period


$  816,952


$  834,106


$     838,293


$      862,080


$     843,051












Allowance for loan losses as a % of total loans


1.36 %


1.40 %


1.40 %


1.43 %


1.37 %

Allowance for loan losses as a % of nonperforming loans [c]


99.54


93.43


85.26


74.82


77.49

Allowance for loan losses as a % of nonperforming assets [c]


95.44


89.94


82.85


73.01


75.58












Annualized as a % of average loans:











NCO - QTD


0.42


0.57


0.40


0.30


0.43

NCO - YTD


0.49


0.57


0.37


0.36


0.39












[a]  Includes loans held for sale.

[b]  Excludes loans classified as troubled debt restructuring (TDRs).

[c]  Includes loans held for sale that are on nonaccrual status.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

























June 30, 2017


December 31, 2016


June 30, 2016



Recorded
Investment


Total
Commitment


Nonaccrual


Recorded
Investment


Total
Commitment


Nonaccrual


Recorded
Investment


Total
Commitment


Nonaccrual

ENERGY PORTFOLIO


Exploration and production


$    1,599,999


$    4,102,412


$    218,697


$    1,654,565


$    4,182,861


$    308,096


$    1,935,062


$    4,456,062


$    620,612

Midstream


1,010,761


3,089,979



1,199,844


3,230,513


11,298


1,395,584


3,315,382


21,268

Drilling oil and support services


173,408


399,106


2,372


263,770


467,908


66,811


270,420


495,563


Refineries and terminals


144,954


255,894


250


128,010


262,618


339


131,626


201,399


430

Total energy portfolio


$    2,929,122


$    7,847,391


$    221,319


$    3,246,189


$    8,143,900


$    386,544


$    3,732,692


$    8,468,406


$    642,310






















June 30, 2017




December 31, 2016




June 30, 2016





As a % of
Energy Loans


As a % of Total
Loans




As a % of
Energy Loans


As a % of Total
Loans




As a % of
Energy Loans


As a % of Total
Loans



ENERGY PORTFOLIO



















Exploration and production


54.6 %


2.7 %




51.0 %


2.7 %




51.8 %


3.1 %



Midstream


34.5


1.7




37.0


2.0




37.4


2.3



Drilling oil and support services


5.9


0.3




8.1


0.4




7.3


0.4



Refineries and terminals


5.0


0.2




3.9


0.2




3.5


0.2



Total energy portfolio


100.0 %


4.9 %




100.0 %


5.4 %




100.0 %


6.0 %



 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)
















Three Months Ended June 30,



2017


2016



Average Balance


Income/
Expense


Yield/
Rate


Average Balance


Income/
Expense


Yield/
Rate

YIELD/RATE ANALYSIS













  (Taxable Equivalent Basis)













Assets













Earning assets:













   Loans


$  59,902,725


$  625,366


4.19 %


$  62,355,245


$  575,852


3.71 %

   Investment securities available for sale [a]


12,072,464


55,612


1.85


11,208,678


36,519


1.31

   Investment securities held to maturity


1,134,494


9,961


3.52


1,265,643


9,754


3.10

   Other earning assets [b] [c]


5,162,628


21,856


1.70


7,960,414


17,758


0.90

        Total earning assets [a]


78,272,311


712,795


3.65


82,789,980


639,883


3.11

Allowance for loan losses


(836,477)






(837,147)





Unrealized gain (loss) on securities available for sale


(89,637)






19,274





Other assets


10,128,151






10,468,478





Total assets


$  87,474,348






$  92,440,585


















Liabilities and Shareholder's Equity













Interest bearing liabilities:













Interest bearing demand deposits


$    7,849,285


$      6,261


0.32


$    6,826,950


$      3,848


0.23

Savings and money market accounts


24,716,936


22,380


0.36


26,148,832


24,758


0.38

Certificates and other time deposits


12,034,381


37,273


1.24


14,852,744


48,280


1.31

Foreign office deposits





92,066


47


0.21

 Total interest bearing deposits


44,600,602


65,914


0.59


47,920,592


76,933


0.65

FHLB and other borrowings


4,104,668


22,450


2.19


4,448,139


19,592


1.77

Federal funds purchased and securities sold under agreement to repurchase [c]


99,039


6,942


28.11


680,325


5,434


3.21

Other short-term borrowings


2,638,671


10,506


1.60


3,975,490


13,932


1.41

        Total interest bearing liabilities


51,442,980


105,812


0.83


57,024,546


115,891


0.82

Noninterest bearing deposits


21,110,531






20,521,323





Other noninterest bearing liabilities


1,916,120






2,143,561





Total liabilities


74,469,631






79,689,430





Shareholder's equity


13,004,717






12,751,155





Total liabilities and shareholder's equity


$  87,474,348






$  92,440,585


















Net interest income/ net interest spread




606,983


2.82 %




523,992


2.29 %

Net yield on earning assets






3.11 %






2.55 %














     Total taxable equivalent adjustment




21,155






19,754
















     Net interest income




$  585,828






$  504,238




[a] Excludes adjustment for market valuation.


[b] Beginning in the fourth quarter of 2016, interest bearing deposits with the Federal Reserve are included in earning assets. Previous to this change, these balances were included with cash and due from banks in the cash and cash equivalents line, consistent with the Condensed Consolidated Balance Sheet presentation. Prior periods have been reclassified to conform to current period presentation.


[c] Yield/rate reflects impact of balance sheet offsetting.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)
















Six Months Ended June 30,



2017


2016



Average Balance


Income/

Expense


Yield/
Rate


Average Balance


Income/
Expense


Yield/
Rate

YIELD/RATE ANALYSIS













  (Taxable Equivalent Basis)













Assets













Earning assets:













   Loans


$  60,113,615


$  1,217,070


4.08 %


$  62,275,604


$  1,153,074


3.72 %

   Investment securities available for sale [a]


11,963,831


110,544


1.86


11,199,707


82,803


1.49

   Investment securities held to maturity


1,151,552


19,532


3.42


1,279,209


19,592


3.08

   Other earning assets [b] [c]


5,110,033


41,416


1.63


7,791,979


36,446


0.94

        Total earning assets [a]


78,339,031


1,388,562


3.57


82,546,499


1,291,915


3.15

Allowance for loan losses


(843,381)






(810,889)





Unrealized gain (loss) on securities available for sale


(115,679)






9,736





Other assets


10,195,085






10,627,500





Total assets


$  87,575,056






$  92,372,846


















Liabilities and Shareholder's Equity













Interest bearing liabilities:













Interest bearing demand deposits


$    8,019,136


12,392


0.31


$    6,956,442


7,790


0.23

Savings and money market accounts


24,966,547


44,681


0.36


25,962,198


51,501


0.40

Certificates and other time deposits


12,628,569


79,145


1.26


14,643,322


95,349


1.31

Foreign office deposits





109,569


108


0.20

 Total interest bearing deposits


45,614,252


136,218


0.60


47,671,531


154,748


0.65

FHLB and other borrowings


3,638,825


41,518


2.30


4,756,471


37,604


1.59

Federal funds purchased and securities sold under agreement to repurchase [c]


71,102


11,839


33.58


740,284


11,591


3.15

Other short-term borrowings


2,673,046


20,592


1.55


4,000,459


27,828


1.40

        Total interest bearing liabilities


51,997,225


210,167


0.82


57,168,745


231,771


0.82

Noninterest bearing deposits


20,845,583






20,289,233





Other noninterest bearing liabilities


1,803,140






2,175,306





Total liabilities


74,645,948






79,633,284





Shareholder's equity


12,929,108






12,739,562





Total liabilities and shareholder's equity


$  87,575,056






$  92,372,846


















Net interest income/ net interest spread




1,178,395


2.75 %




1,060,144


2.33 %

Net yield on earning assets






3.03 %






2.58 %














     Total taxable equivalent adjustment




41,134






39,024
















     Net interest income




$  1,137,261






$  1,021,120




[a] Excludes adjustment for market valuation.


[b] Beginning in the fourth quarter of 2016, interest bearing deposits with the Federal Reserve are included in earning assets. Previous to this change, these balances were included with cash and due from banks in the cash and cash equivalents line, consistent with the Condensed Consolidated Balance Sheet presentation. Prior periods have been reclassified to conform to current period presentation.


[c] Yield/rate reflects impact of balance sheet offsetting.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)




















Six Months




Three Months Ended



Ended June 30,


%


2017


2016



2017


2016


 Change 


June 30


March 31


December 31


September 30


June 30

NONINTEREST INCOME

















Service charges on deposit accounts


$     110,087


$     103,346


7


$    54,919


$    55,168


$       55,901


$        55,047


$    51,921

Card and merchant processing fees


62,452


61,251


2


32,460


29,992


31,161


31,256


31,509

Retail investment sales


56,059


49,552


13


28,588


27,471


23,293


30,137


26,985

Investment banking and advisory fees


48,244


51,939


(7)


19,943


28,301


20,792


34,385


28,335

Money transfer income


52,527


50,902


3


27,330


25,197


28,632


25,058


26,477

Asset management fees


19,826


17,191


15


10,055


9,771


8,906


8,778


8,386

Corporate and correspondent investment sales


21,104


14,516


45


12,189


8,915


3,199


6,974


10,103

Mortgage banking


6,186


(2,832)


 NM 


3,316


2,870


16,086


8,242


602

Bank owned life insurance


8,389


8,871


(5)


4,220


4,169


4,202


4,170


4,455

Other


106,138


146,678


(28)


53,305


52,833


68,881


59,718


67,789



491,012


501,414


(2)


246,325


244,687


261,053


263,765


256,562

Investment securities gains, net



30,037


(100)






21,684

Loss on prepayment of FHLB and other borrowings, net







(295)



Total noninterest income


$     491,012


$     531,451


(8)


$  246,325


$  244,687


$     260,758


$      263,765


$  278,246


















NONINTEREST EXPENSE

















Salaries, benefits and commissions


$     556,441


$     556,935



$  288,426


$  268,015


$     283,609


$      279,132


$  277,166

Professional services


122,647


114,768


7


64,840


57,807


63,810


63,628


58,401

Equipment


124,035


119,949


3


62,405


61,630


62,627


59,697


59,508

Net occupancy


83,341


79,271


5


41,240


42,101


40,116


41,610


39,999

Money transfer expense


34,131


33,368


2


17,807


16,324


17,426


16,680


17,768

Marketing


29,274


24,215


21


15,729


13,545


13,018


13,316


11,506

Communications


10,500


10,638


(1)


5,281


5,219


5,406


5,002


5,463

Amortization of intangibles


5,050


8,187


(38)


2,525


2,525


4,093


4,093


4,094

Goodwill impairment







59,901



Other


156,378


185,850


(16)


74,232


82,146


64,064


73,113


67,132

Total noninterest expense


$  1,121,797


$  1,133,181


(1)


$  572,485


$  549,312


$     614,070


$      556,271


$  541,037


NM = Not meaningful

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)












Three Months Ended June 30,


Six Months Ended June 30,



2017


2016


2017


2016

NON-GAAP RECONCILIATION


















Computation of Average Tangible Equity:









Total stockholder's equity (average)


$  13,004,717


$  12,751,155


$  12,929,108


$  12,739,562

Less: Goodwill and other intangibles (average)


4,994,774


5,109,772


4,996,035


5,112,406

Average tangible equity [B]


$    8,009,943


$    7,641,383


$    7,933,073


$    7,627,156

   Net income [A]


$       157,440


$       122,502


$       278,263


$       161,769

Return on average tangible equity ([A]/[B], annualized)


7.93 %


6.45 %


7.12 %


4.27 %

 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)


















At or Quarter Ended June 30, 2017


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)







Commercial, financial and agricultural

$                       32,398


$                         6,532


$                 4,770


$    448,565


$                 766


$     24,117,488


$ 24,610,519


$              20,047

Real estate – construction

4,829


474


2,251


1,993


110


2,279,166


2,288,823


(797)

Commercial real estate –  mortgage

8,966


10,138


3,617


117,893


4,725


11,375,494


11,520,833


(1,386)

Residential real estate – mortgage

54,911


31,227


3,043


141,482


59,490


12,789,171


13,079,324


1,404

Equity lines of credit

8,560


4,933


1,630


29,347


236


2,535,194


2,579,900


795

Equity loans

4,109


1,202


320


11,015


32,110


346,093


394,849


209

Credit card

5,446


4,015


11,738


-


-


555,621


576,820


10,678

Consumer – direct

16,134


6,032


4,187


706


620


1,419,967


1,447,646


16,899

Consumer – indirect

75,605


18,189


5,681


8,964


-


2,952,843


3,061,282


14,590

Covered loans

3,438


308


22,197


348


-


294,873


321,164


-

Total loans

$                     214,396


$                       83,050


$              59,434


$    760,313


$            98,057


$     58,665,910


$ 59,881,160


$              62,439

Loans held for sale

$                                -


$                                -


$                        -


$                -


$                     -


$             74,558


$         74,558


$                       -


















At or Quarter Ended March 31, 2017


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)







Commercial, financial and agricultural

$                       22,472


$                       11,804


$                 4,405


$    540,407


$            31,644


$     24,049,936


$ 24,660,668


$              39,411

Real estate – construction

487


25


3,640


1,028


114


2,222,111


2,227,405


(57)

Commercial real estate –  mortgage

13,872


1,226


4,602


89,908


4,821


11,284,392


11,398,821


(741)

Residential real estate – mortgage

61,234


22,337


2,653


140,342


58,867


12,832,343


13,117,776


1,195

Equity lines of credit

9,144


3,619


1,478


32,675


-


2,513,579


2,560,495


1,166

Equity loans

5,105


1,592


376


12,626


33,635


367,028


420,362


848

Credit card

6,262


4,719


12,453


-


-


546,877


570,311


9,818

Consumer – direct

12,025


4,866


4,874


637


662


1,306,178


1,329,242


16,818

Consumer – indirect

68,851


16,161


7,463


7,955


-


2,978,318


3,078,748


15,899

Covered loans

6,448


3,479


23,673


410


-


307,929


341,939


(31)

Total loans

$                     205,900


$                       69,828


$              65,617


$    825,988


$         129,743


$     58,408,691


$ 59,705,767


$              84,326

Loans held for sale

$                                -


$                                -


$                        -


$                -


$                     -


$             74,741


$         74,741


$                       -

















BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)






At or Quarter Ended December 31, 2016


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)







Commercial, financial and agricultural

$                       23,788


$                         6,581


$                 2,891


$    596,454


$              8,726


$     24,483,562


$ 25,122,002


$              14,413

Real estate – construction

918


50


2,007


1,239


2,393


2,118,709


2,125,316


(383)

Commercial real estate –  mortgage

3,791


3,474


-


71,921


4,860


11,126,614


11,210,660


280

Residential real estate – mortgage

57,359


28,450


3,356


140,303


59,893


12,970,633


13,259,994


1,044

Equity lines of credit

7,922


4,583


2,950


33,453


-


2,494,870


2,543,778


641

Equity loans

5,615


1,843


467


13,635


34,746


389,403


445,709


512

Credit card

6,411


5,042


10,954


-


-


582,474


604,881


9,680

Consumer – direct

13,338


4,563


4,482


789


704


1,230,765


1,254,641


15,343

Consumer – indirect

85,198


22,833


7,197


5,926


-


3,013,794


3,134,948


19,902

Covered loans

7,311


1,351


27,238


730


-


322,704


359,334


(81)

Total loans

$                     211,651


$                       78,770


$              61,542


$    864,450


$         111,322


$     58,733,528


$ 60,061,263


$              61,351

Loans held for sale

$                                -


$                                -


$                        -


$       56,592


$                     -


$           105,257


$       161,849


$                       -


















At or Quarter Ended September 30, 2016


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)







Commercial, financial and agricultural

$                       72,328


$                         4,400


$                 5,320


$    850,075


$              9,283


$     23,897,662


$ 24,839,068


$                8,936

Real estate – construction

522


1,062


2,782


1,214


3,315


2,206,377


2,215,272


(206)

Commercial real estate –  mortgage

7,614


369


783


63,593


5,141


11,284,130


11,361,630


(372)

Residential real estate – mortgage

56,204


21,200


3,929


117,243


63,008


13,195,851


13,457,435


560

Equity lines of credit

8,173


4,477


2,417


32,642


-


2,446,759


2,494,468


601

Equity loans

5,567


1,694


353


13,198


36,053


422,510


479,375


18

Credit card

5,696


4,264


10,175


-


-


579,727


599,862


8,460

Consumer – direct

12,099


4,725


4,191


765


759


1,164,288


1,186,827


12,884

Consumer – indirect

73,045


20,165


7,070


7,019


-


3,088,936


3,196,235


15,197

Covered loans

4,075


3,844


28,505


269


-


344,418


381,111


-

Total loans

$                     245,323


$                       66,200


$              65,525


$ 1,086,018


$         117,559


$     58,630,658


$ 60,211,283


$              46,078

Loans held for sale

$                                -


$                                -


$                        -


$                -


$                     -


$           101,843


$       101,843


$                       -

















BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)


















At or Quarter Ended June 30, 2016


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)







Commercial, financial and agricultural

$                         8,750


$                         4,499


$                 4,175


$    797,066


$              9,333


$     25,552,413


$ 26,376,236


$              31,773

Real estate – construction

1,675


1,195


2,064


1,983


2,650


2,117,823


2,127,390


(1,094)

Commercial real estate –  mortgage

3,495


535


-


62,381


5,603


11,184,061


11,256,075


1,684

Residential real estate – mortgage

51,319


18,866


1,286


109,805


64,341


13,251,401


13,497,018


471

Equity lines of credit

7,279


3,996


1,565


34,043


-


2,418,631


2,465,514


854

Equity loans

4,378


1,214


568


14,254


36,485


456,090


512,989


(19)

Credit card

5,588


3,768


9,056


-


-


590,475


608,887


8,127

Consumer – direct

10,319


4,670


3,354


540


808


1,070,803


1,090,494


9,924

Consumer – indirect

69,575


17,053


5,324


6,360


-


3,248,374


3,346,686


13,027

Covered loans

5,124


4,115


32,928


160


-


356,327


398,654


1,315

Total loans

$                     167,502


$                       59,911


$              60,320


$ 1,026,592


$         119,220


$     60,246,398


$ 61,679,943


$              66,062

Loans held for sale

$                                -


$                                -


$                        -


$                -


$                     -


$           108,432


$       108,432


$                       -

 

BBVA COMPASS BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)












2017


2016


June 30


March 31


December 31


September 30


June 30

Assets:










Cash and due from banks

$    1,073,646


$    1,093,797


$      1,284,261


$       1,130,610


$    1,581,187

Interest bearing funds with the Federal Reserve

2,120,285


2,669,135


1,830,078


2,923,813


3,248,576

Federal funds sold, securities purchased under agreements to resell and interest bearing deposits

182,215


197,000


137,447


372,268


319,644

Cash and cash equivalents

3,376,146


3,959,932


3,251,786


4,426,691


5,149,407

Trading account assets

2,651,083


2,892,254


3,144,600


4,051,461


4,355,025

Investment securities available for sale

12,142,844


11,846,618


11,665,055


11,516,885


11,359,159

Investment securities held to maturity

1,143,171


1,158,785


1,203,217


1,240,850


1,258,253

Loans held for sale

74,558


74,741


161,849


101,843


108,432

Loans

59,881,160


59,705,767


60,061,263


60,211,283


61,679,943

Allowance for loan losses

(816,952)


(834,106)


(838,293)


(862,080)


(843,051)

Net loans

59,064,208


58,871,661


59,222,970


59,349,203


60,836,892

Premises and equipment, net

1,253,516


1,273,226


1,300,054


1,287,457


1,290,738

Bank owned life insurance

718,938


715,883


711,939


712,422


708,143

Goodwill

4,983,296


4,983,296


4,983,296


5,043,197


5,043,197

Other assets

1,596,159


1,532,837


1,435,187


1,626,829


1,643,910

Total assets

$ 87,003,919


$ 87,309,233


$   87,079,953


$     89,356,838


$ 91,753,156

Liabilities:










Deposits:










Noninterest bearing

$ 21,000,630


$ 21,476,890


$   20,332,792


$     20,585,598


$ 20,132,164

Interest bearing

44,616,750


46,052,748


46,946,741


47,001,739


47,618,154

Total deposits

65,617,380


67,529,638


67,279,533


67,587,337


67,750,318

FHLB and other borrowings

4,789,494


2,993,222


3,001,551


3,671,861


5,098,048

Federal funds purchased and securities sold under agreements to repurchase

31,619


71,559


39,052


165,573


386,343

Other short-term borrowings

2,435,260


2,642,539


2,802,977


3,591,223


4,352,428

Accrued expenses and other liabilities

1,140,536


1,186,776


1,206,133


1,521,654


1,439,023

Total liabilities

74,014,289


74,423,734


74,329,246


76,537,648


79,026,160

Shareholder's Equity:










Preferred stock

229,475


229,475


229,475


229,475


229,475

Common stock — $0.01 par value

2,230


2,230


2,230


2,230


2,230

Surplus

14,916,198


14,982,125


14,985,673


15,020,937


15,022,974

Retained deficit

(2,050,051)


(2,207,060)


(2,327,440)


(2,416,402)


(2,536,230)

Accumulated other comprehensive loss

(137,131)


(150,781)


(168,252)


(46,644)


(20,500)

Total BBVA Compass Bancshares, Inc. shareholder's equity

12,960,721


12,855,989


12,721,686


12,789,596


12,697,949

Noncontrolling interests

28,909


29,510


29,021


29,594


29,047

Total shareholder's equity

12,989,630


12,885,499


12,750,707


12,819,190


12,726,996

Total liabilities and shareholder's equity

$ 87,003,919


$ 87,309,233


$   87,079,953


$     89,356,838


$ 91,753,156

 

BBVA COMPASS BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)












Three Months Ended


2017


2016


June 30


March 31


December 31


September 30


June 30

Interest income:










Interest and fees on loans

$ 607,375


$  574,712


$         558,680


$           557,996


$ 559,170

Interest on investment securities available for sale

55,590


54,878


60,868


48,382


36,442

Interest on investment securities held to maturity

6,821


6,639


6,664


6,675


6,759

Interest on federal funds sold, securities purchased under agreements to resell and interest bearing deposits

12,049


9,262


7,664


4,563


4,346

Interest on trading account assets

9,805


10,297


13,150


12,926


13,412

Total interest income

691,640


655,788


647,026


630,542


620,129

Interest expense:










Interest on deposits

65,914


70,304


73,846


76,031


76,933

Interest on FHLB and other borrowings

22,450


19,068


23,825


21,315


19,592

Interest on federal funds purchased and securities sold under agreements to repurchase

6,942


4,897


4,640


4,934


5,434

Interest on other short-term borrowings

10,506


10,086


12,963


13,453


13,932

Total interest expense

105,812


104,355


115,274


115,733


115,891

Net interest income

585,828


551,433


531,752


514,809


504,238

Provision for loan losses

45,285


80,139


37,564


65,107


86,673

Net interest income after provision for loan losses

540,543


471,294


494,188


449,702


417,565

Noninterest income:










Service charges on deposit accounts

54,919


55,168


55,901


55,047


51,921

Card and merchant processing fees

32,460


29,992


31,161


31,256


31,509

Retail investment sales

28,588


27,471


23,293


30,137


26,985

Investment banking and advisory fees

19,943


28,301


20,792


34,385


28,335

Money transfer income

27,330


25,197


28,632


25,058


26,477

Asset management fees

10,055


9,771


8,906


8,778


8,386

Corporate and correspondent investment sales

12,189


8,915


3,199


6,974


10,103

Mortgage banking

3,316


2,870


16,086


8,242


602

Bank owned life insurance

4,220


4,169


4,202


4,170


4,455

Investment securities gains, net





21,684

Loss on prepayment of FHLB and other borrowings



(295)



Other

53,305


52,833


68,881


59,718


67,789

Total noninterest income

246,325


244,687


260,758


263,765


278,246

Noninterest expense:










Salaries, benefits and commissions

288,426


268,015


283,609


279,132


277,166

Professional services

64,840


57,807


63,810


63,628


58,401

Equipment

62,405


61,630


62,627


59,697


59,508

Net occupancy

41,240


42,101


40,116


41,610


39,999

Money transfer expense

17,807


16,324


17,426


16,680


17,768

Marketing

15,729


13,545


13,018


13,316


11,506

Communications

5,281


5,219


5,406


5,002


5,463

Amortization of intangibles

2,525


2,525


4,093


4,093


4,094

Goodwill impairment



59,901



Other

74,232


82,146


64,064


73,113


67,132

Total noninterest expense

572,485


549,312


614,070


556,271


541,037

Net income before income tax expense

214,383


166,669


140,876


157,196


154,774

Income tax expense

56,943


45,846


51,473


36,845


32,272

Net income

157,440


120,823


89,403


120,351


122,502

Less: net income attributable to noncontrolling interests

431


443


441


523


518

Net income attributable to BBVA Compass Bancshares, Inc.

$ 157,009


$  120,380


$           88,962


$           119,828


$ 121,984

 

SOURCE BBVA Compass

For further information: Christina Anderson, External Communications, Tel. 205 524 5214, christina.anderson@bbva.com; Ed Bilek, Investor Relations, Tel. 205 297 3331, ed.bilek@bbva.com


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