BBVA Compass reports record quarterly earnings for the first quarter of 2018

April 27, 2018

HOUSTON, April 27, 2018 /PRNewswire/ --

  • Net income reaches quarterly record of $209 million
    • Net income up 73 percent from year ago quarter and 20 percent from adjusted earnings1 in the fourth quarter of 2017
    • Return on average assets and return on average tangible equity2 for the quarter were 0.96 percent and 10.51 percent, respectively
  • Total revenue increases 11 percent from prior year levels
    • Net interest income increases 13 percent compared to a year ago and 13 percent (annualized) on a linked quarter basis   
    • Net interest margin (FTE) increases 31 basis points from prior year and 5 basis points from fourth quarter 2017 levels
  • Noninterest expense growth well contained at 2 percent
  • Positive operating leverage results in record quarterly operating income2 of $318 million, an increase of 29 percent from the first quarter of 2017
  • Deposit growth fully funds increase in loan portfolio; loan pipeline remains strong
    • Total loans of $62.3 billion up 4 percent from prior year
    • Newly funded customer loans of $4.4 billion in the quarter, up 25 percent from 1Q17 levels
    • Total deposits of $69.9 billion, up 4 percent from a year ago and on a linked quarter (annualized) basis
  • Credit quality indicators show continued improvement
    • Nonperforming loan ratio at 1.11 percent, down 38 basis points from 1Q17 levels and 5 basis points from year-end 2017
    • Net charge-offs ratio of 44 basis points in the quarter down from 57 basis points in 1Q17
    • Allowance to loan ratio at 1.34 percent and nonperforming loan coverage ratio rises to 120 percent compared to 93 percent at the end of the first quarter of 2017

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $209 million for the first quarter of 2018 compared to $52 million in the fourth quarter of 2017 ($173 million1 adjusted for the impact of the Tax Cuts and Jobs Act) and $121 million earned during the first quarter of 2017. Earnings in the quarter represented a 20 percent increase from adjusted earnings1 in the fourth quarter and a 73 percent increase from year ago levels. Return on average assets and return on tangible equity2 for the first quarter of 2018 were 0.96 percent and 10.51 percent, respectively.

BBVA Compass corporate logo (PRNewsFoto/BBVA Compass)

"Our team at BBVA Compass continued to capitalize on the positive momentum we have developed throughout our organization and allowed us to deliver record performance in multiple areas including net income," said Onur Genç, president and CEO of BBVA Compass. "Revenue growth was strong, led by a double-digit increase in net interest income, and expenses were well-managed which allowed us to achieve positive operating leverage and record operating income. At the same time, our digital transformation efforts also met with continued success including the broader launch of our fully digital Express Personal Loan, while our award-winning mobile banking app saw a 30 percent year-over-year jump in active users3. Clearly, our digital transformation strategy is working and seeing our strategy come to life provides us the drive to continue meeting and exceeding our customers expectation for amazing experiences."

Total revenue for the quarter was $880 million, an increase of 11 percent from the first quarter 2017. Net interest income totaled $623 million, an increase of $71 million or 13 percent from the first quarter of 2017, and an annualized increase of 13 percent from fourth quarter 2017 levels. The percent net interest margin in the first quarter of 2018 was 3.27 percent, an increase of 31 basis points from a year ago and 5 basis points from the fourth quarter of 2017. "The increase in net interest income reflects higher short-term interest rates, the asset sensitivity of our balance sheet and our focus on increasing activity while actively managing loan and deposit spreads," noted Genç.

Noninterest income for the quarter totaled $258 million, an increase of 5 percent compared to the $245 million recorded in the first quarter of 2017. Growth in several of our fee-based businesses exceeded overall growth, led by card and merchant processing fees which climbed 32 percent year-over-year. Also noteworthy was the growth in corporate and correspondent investment sales (+35 percent), retail investment sales (+10 percent) and asset management fees (+10 percent). Expense growth was also kept in check with noninterest expenses rising just 2 percent year-over-year. Given this positive operating leverage, total operating income2 was a record $318 million, an increase of 29 percent from the first quarter of 2017.

In terms of balance sheet growth, total loans for the first quarter of 2018 were $62.3 billion, an increase of 4 percent from the $59.8 billion at the end of the first quarter of 2017. Commercial loan growth (+7 percent) continued to outpace overall loan growth while consumer loan growth accelerated, driven by increased activity in direct consumer lending (+40 percent) and credit cards (+15 percent). During the quarter, newly funded loans totaled $4.4 billion, up 25 percent compared to the pace in the year ago quarter. Equally important, deposit growth exceeded loan growth in the quarter as total deposits rose 4 percent to $69.9 billion and the loan to deposit ratio ended the quarter at 89.1 percent.

"While we are focused on increasing activity with our customers and adding new products and technology to meet their ever-changing needs, our entire organization is also committed to maintaining sound underwriting standards and a strong risk profile," Genç noted. Nonperforming loans totaled $694 million at the end of the quarter, down 22 percent from a year ago and 3 percent from year-end 2017. As a percentage of total loans, nonperforming loans were 1.11 percent at quarter end compared to 1.49 percent at the end of the first quarter of 2017. Net charge-offs as a percentage of average loans were 44 basis points in the quarter compared to 57 basis points in the year ago quarter. The allowance for loan losses as a percentage of total loans ended the quarter at 1.34 percent while the coverage ratio of nonperforming loans rose to 120 percent compared to 93 percent in the first quarter of 2017.

"Maintaining a strong capital position is also a top priority as we expand our client base," Genç said. Total shareholder's equity at the end of the quarter totaled $13.1 billion, a 2 percent increase from $12.9 billion at the end of the first quarter of 2017. The CET1 ratio rose to 12.08 percent4 at the end of the first quarter of 2018, up 28 basis points from the end of the fourth quarter of 2017. Importantly, all of BBVA Compass' regulatory capital ratios significantly exceed the requirements under "well-capitalized" guidelines.

During the first quarter, BBVA Compass announced it now offers near instantaneous decisioning and potential same day funding for both customers and non-customers with the footprint wide5 opening of the fully digital BBVA Compass Express Personal Loan. The product, which represents months of effort across the entirety of the bank, underscores BBVA Compass' drive to digital transformation and achieving excellence in customer experience.

BBVA Compass also announced the launch of the new BBVA Compass Rewards Card. The new credit card offers rewards to customers for every purchase they make, with no cap on earnings, and boasts an easy to understand rewards structure. When combined with BBVA Wallet, the bank's proprietary wallet app, customers can take advantage of instant reward redemption - even at the point of sale - and manage their card's security, all with the tap of a screen.





















1 Adjusted net income excludes the impact of the revaluation of net deferred tax assets mandated by the Tax Cuts and Jobs Act. The calculation of this measure is included on the page titled Non-GAAP Reconciliation.

2 Return on average tangible equity and operating income are non-GAAP financial measures that we believe aid in understanding certain areas of our performance. The calculation of this measure is included on the page titled Non-GAAP Reconciliation.

3 An active user is defined as a customer who signs in to the mobile banking app at least once per month for three consecutive months.

4 Regulatory ratios at March 31, 2018, are estimated.

5 Except California


FTE – fully taxable equivalent

About BBVA Compass
BBVA Compass is a Sunbelt-based financial institution that operates 649 branches, including 336 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 37 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 (6th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 6th nationally in the total number of SBA loans originated in fiscal year 2017. 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 has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, 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.

On April 5, 2018, BBVA filed its annual report on Form 20-F for the year ended December 31, 2017, with the U.S. Securities and Exchange Commission. A copy can be accessed on the BBVA website at https://shareholdersandinvestors.bbva.com/the-share/adrs-english/. Holders of BBVA's American Depositary Receipts (ADRs) may request a hard copy of the Form 20-F for the year ended December 31, 2017, including complete audited financial statements, free of charge. To request a copy, contact Ed Bilek at ed.bilek@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 February 28, 2018, as updated by our subsequent SEC filings.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)
















Three Months Ended March 31,


%









2018


2017


 Change 







EARNINGS SUMMARY













Net interest income


$       622,605


$       551,433


13







Noninterest income


257,825


244,687


5







Total revenue


880,430


796,120


11







Provision for loan losses


57,029


80,139


(29)







Noninterest expense


562,913


549,312


2







Pretax income


260,488


166,669


56







Income tax expense


51,798


45,846


13







Net income


208,690


120,823


73







Net income attributable to noncontrolling interests


461


443


4







Net income attributable to BBVA Compass Bancshares, Inc.


$       208,229


$       120,380


73




















SELECTED RATIOS













Return on average assets


0.96 %


0.56 %









Return on average tangible equity [a]


10.51


6.28









Average common equity to average assets


14.62


14.36









Average loans to average total deposits


89.61


89.75









Common equity tier I capital (CET1) [b]


12.08


11.77









Tier I capital ratio [b]


12.43


12.12









Total capital ratio [b]


14.67


14.53









Leverage ratio [b]


10.12


9.68


















































Average for Three Months




Ending Balance





Ended March 31,


%


March 31,


%



2018


2017


 Change 


2018


2017


 Change 

BALANCE SHEET HIGHLIGHTS









Total loans


$  62,200,448


$  60,326,849


3


$  62,284,262


$  59,780,508


4

Total debt securities


13,192,627


12,456,852


6


13,409,881


12,590,545


7

Earning assets


78,612,940


78,264,483



78,733,347


78,364,524


Total assets


87,770,909


87,676,882



87,608,502


87,309,233


Noninterest bearing demand deposits


21,581,905


20,577,690


5


21,792,498


21,476,890


1

Interest bearing transaction accounts


33,721,948


33,409,808


1


34,344,230


33,978,555


1

Total transaction accounts


55,303,853


53,987,498


2


56,136,728


55,455,445


1

Total deposits


69,413,803


67,216,855


3


69,940,412


67,529,638


4

Total shareholder's equity


13,090,418


12,852,658


2


13,144,139


12,885,499


2
















[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.

[b]

Current period regulatory capital ratios are estimated.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)








2018


2017



March 31


December 31


September 30


June 30


March 31

NONPERFORMING ASSETS











Nonaccrual loans [a]


$  647,210


$         658,865


$           666,812


$ 760,313


$  825,988

Loans 90 days or more past due [b]


45,904


58,378


43,049


59,434


65,617

TDRs 90 days or more past due


700


751


963


969


1,185

Total nonperforming loans [a]


693,814


717,994


710,824


820,716


892,790

Other real estate owned, net (OREO)


16,147


17,278


22,012


22,965


25,113

Other repossessed assets


11,278


13,473


11,443


12,298


9,540

Total nonperforming assets


$  721,239


$         748,745


$           744,279


$ 855,979


$  927,443












TDRs accruing and past due less than 90 days


$  101,285


$         100,492


$             95,521


$   97,088


$  128,558












Total nonperforming loans as a % of loans


1.11 %


1.16 %


1.18 %


1.37 %


1.49 %

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


1.16


1.21


1.23


1.43


1.55














Three Months Ended



2018


2017



March 31


December 31


September 30


June 30


March 31

ALLOWANCE FOR LOAN LOSSES











Balance at beginning of period


$  842,760


$         849,119


$           816,952


$ 834,106


$  838,293

Net charge-offs (NCO)


67,718


65,194


71,267


62,439


84,326

Provision for loan losses


57,029


58,835


103,434


45,285


80,139

Balance at end of period


$  832,071


$         842,760


$           849,119


$ 816,952


$  834,106












Allowance for loan losses as a % of total loans


1.34 %


1.37 %


1.41 %


1.36 %


1.40 %

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


119.93


117.38


119.46


99.54


93.43

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


115.37


112.56


114.09


95.44


89.94












Annualized as a % of average loans:











NCO - QTD


0.44


0.42


0.47


0.42


0.57

NCO - YTD


0.44


0.47


0.48


0.49


0.57



[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)
















Three Months Ended March 31,



2018


2017



Average
Balance


Income/
Expense


Yield/
Rate


Average
Balance


Income/
Expense


Yield/
Rate

YIELD/RATE ANALYSIS













(Taxable Equivalent Basis)













Assets













Earning assets:













Loans


$              62,200,448


$   674,830


4.40 %


$              60,326,849


$  591,704


3.98 %

Debt securities available for sale [a]


11,424,405


56,605


2.01


11,430,056


52,051


1.85

Debt securities held to maturity


1,996,409


13,902


2.82


1,168,799


9,571


3.32

Other earning assets [b]


3,219,865


12,626


1.59


5,480,782


22,441


1.66

Total earning assets [a]


78,841,127


757,963


3.90


78,406,486


675,767


3.50

Allowance for loan losses


(844,248)






(850,362)





Unrealized loss on debt securities available for sale


(228,187)






(142,003)





Other assets


10,002,217






10,262,761





Total assets


$              87,770,909






$              87,676,882


















Liabilities and Shareholder's Equity













Interest bearing liabilities:













Interest bearing demand deposits


$                8,195,605


$      9,581


0.47


$                8,190,873


$      6,131


0.30

Savings and money market accounts


25,526,343


38,890


0.62


25,218,935


22,301


0.36

Certificates and other time deposits


14,109,950


48,876


1.40


13,229,357


41,872


1.28

Total interest bearing deposits


47,831,898


97,347


0.83


46,639,165


70,304


0.61

FHLB and other borrowings


3,310,286


24,756


3.03


3,167,805


19,068


2.44

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


22,235


536


9.78


42,855


4,897


46.34

Other short-term borrowings


51,626


344


2.70


2,707,802


10,086


1.51

Total interest bearing liabilities


51,216,045


122,983


0.97


52,557,627


104,355


0.81

Noninterest bearing deposits


21,581,905






20,577,690





Other noninterest bearing liabilities


1,882,541






1,688,907





Total liabilities


74,680,491






74,824,224





Shareholder's equity


13,090,418






12,852,658





Total liabilities and shareholder's equity


$              87,770,909






$              87,676,882


















Net interest income/ net interest spread




634,980


2.93 %




571,412


2.69 %

Net yield on earning assets






3.27 %






2.96 %














Total taxable equivalent adjustment




12,375






19,979
















Net interest income




$   622,605






$  551,433





[a]

 Excludes adjustment for market valuation.

[b]

 Yield/rate reflects impact of balance sheet offsetting.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)




















Three Months




Three Months Ended



Ended March 31,


%


2018


2017



2018


2017


 Change 


March 31


December 31


September 30


June 30


March 31

NONINTEREST INCOME

















Service charges on deposit accounts


$   56,161


$   55,168


2


$    56,161


$           56,070


$             55,953


$   54,919


$    55,168

Card and merchant processing fees


39,678


29,992


32


39,678


33,380


32,297


32,460


29,992

Retail investment sales


30,108


27,471


10


30,108


26,338


26,817


28,588


27,471

Investment banking and advisory fees


23,896


28,301


(16)


23,896


24,957


30,500


19,943


28,301

Money transfer income


20,688


25,197


(18)


20,688


24,101


24,881


27,330


25,197

Corporate and correspondent investment sales


12,056


8,915


35


12,056


11,803


5,145


12,189


8,915

Asset management fees


10,770


9,771


10


10,770


10,303


10,336


10,055


9,771

Mortgage banking


8,397


2,870


193


8,397


4,720


3,450


3,316


2,870

Bank owned life insurance


4,215


4,169


1


4,215


4,397


4,322


4,220


4,169

Other


51,856


52,833


(2)


51,856


101,100


61,060


53,305


52,833



257,825


244,687


5


257,825


297,169


254,761


246,325


244,687

Investment securities gains, net







3,033



Total noninterest income


$ 257,825


$ 244,687


5


$  257,825


$         297,169


$           257,794


$ 246,325


$  244,687


















NONINTEREST EXPENSE

















Salaries, benefits and commissions


$ 289,440


$ 268,015


8


$  289,440


$         296,146


$           279,384


$ 288,426


$  268,015

Equipment


63,360


61,630


3


63,360


63,200


60,656


62,405


61,630

Professional services


60,645


57,807


5


60,645


76,068


64,775


64,840


57,807

Net occupancy


40,422


42,101


(4)


40,422


41,125


42,227


41,240


42,101

Money transfer expense


13,721


16,324


(16)


13,721


15,721


15,938


17,807


16,324

Marketing


8,787


13,545


(35)


8,787


7,950


14,996


15,729


13,545

Communications


5,263


5,219


1


5,263


4,970


5,084


5,281


5,219

Other


81,275


84,671


(4)


81,275


110,648


90,902


76,757


84,671

Total noninterest expense


$ 562,913


$ 549,312


2


$  562,913


$         615,828


$           573,962


$ 572,485


$  549,312

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)









Three Months Ended March 31,




2018


2017


NON-GAAP RECONCILIATION












Computation of Operating Income:






Net interest income (GAAP)


$          622,605


$                  551,433


Plus: noninterest income (GAAP)


257,825


244,687


Less: noninterest expense (GAAP)


562,913


549,312


Operating income (non-GAAP)


$          317,517


$                  246,808




















Computation of Average Tangible Equity:






Total stockholder's equity (average) (GAAP)


$      13,090,418


$             12,852,658


Less: Goodwill and other intangibles (average) (GAAP)


5,039,246


5,049,493


Average tangible equity (non-GAAP) [B]


$        8,051,172


$               7,803,165


Net income (GAAP) [A]


$           208,690


$                  120,823


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


10.51 %


6.28 %










Three Months Ended




March 31, 2018


December 31, 2017


Computation of Adjusted Net Income:






Net income (GAAP)


$          208,690


$                    52,072


Plus: Revaluation of net deferred tax assets (GAAP)



121,243


Adjusted net income (non-GAAP)


$          208,690


$                  173,315








 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)


















At or Quarter Ended March 31, 2018


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

$                               15,427


$                                12,230


$                         5,420


$       284,699


$                    5,231


$            26,036,120


$  26,359,127


$                       8,395

Real estate – construction

450


240


1,918


14,183


129


2,139,936


2,156,856


(89)

Commercial real estate –  mortgage

8,552


3,220


2,229


115,285


4,182


11,394,819


11,528,287


114

Residential real estate – mortgage

73,335


33,993


5,975


169,778


62,171


12,961,735


13,306,987


1,380

Equity lines of credit

12,063


4,611


2,371


36,350


236


2,602,229


2,657,860


160

Equity loans

4,495


983


379


11,429


29,546


297,705


344,537


(69)

Credit card

6,438


5,089


11,845




633,658


657,030


9,874

Consumer – direct

16,919


8,569


7,929


4,211


490


1,818,325


1,856,443


25,412

Consumer – indirect

77,153


21,092


7,838


11,275



3,223,376


3,340,734


22,541

Covered loans








Total loans

$                               214,832


$                                 90,027


$                       45,904


$       647,210


$                101,985


$            61,107,903


$  62,207,861


$                     67,718

Loans held for sale

$                                        —


$                                         —


$                               —


$                 —


$                          —


$                    76,401


$         76,401


$                             —




At or Quarter Ended December 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

$                               14,804


$                                  3,753


$                      18,136


$       310,059


$                    1,213


$            25,401,984


$  25,749,949


$                     13,320

Real estate – construction

12,293


70


1,560


5,381


101


2,254,134


2,273,539


(115)

Commercial real estate –  mortgage

10,473


3,270


927


111,982


4,155


11,593,351


11,724,158


417

Residential real estate – mortgage

69,474


34,440


8,572


173,843


64,898


13,014,520


13,365,747


290

Equity lines of credit

10,956


7,556


2,259


34,021


237


2,598,076


2,653,105


871

Equity loans

4,170


657


995


11,559


30,105


315,778


363,264


87

Credit card

6,710


4,804


11,929




616,074


639,517


9,048

Consumer – direct

19,766


7,020


6,712


2,425


534


1,653,926


1,690,383


19,551

Consumer – indirect

92,017


26,460


7,288


9,595



3,028,746


3,164,106


21,725

Covered loans








Total loans

$                              240,663


$                                 88,030


$                      58,378


$       658,865


$                101,243


$            60,476,589


$  61,623,768


$                     65,194

Loans held for sale

$                                        —


$                                        —


$                             —


$                 —


$                          —


$                    67,110


$         67,110


$                             —



BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)






At or Quarter Ended September 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

$                               51,581


$                                  6,351


$                         6,072


$       324,071


$                    1,259


$            24,702,608


$  25,091,942


$                     14,695

Real estate – construction

661


94


2,955


1,877


106


2,241,451


2,247,144


(29)

Commercial real estate –  mortgage

21,324


1,089


3,686


108,040


4,645


11,203,594


11,342,378


7,707

Residential real estate – mortgage

57,582


32,606


2,558


175,490


59,086


13,071,181


13,398,503


1,717

Equity lines of credit

11,118


4,824


2,179


34,416


237


2,564,538


2,617,312


179

Equity loans

3,470


1,798


840


11,305


30,574


335,389


383,376


(7)

Credit card

6,832


4,777


10,692




568,674


590,975


10,591

Consumer – direct

17,563


6,796


5,209


2,746


577


1,571,505


1,604,396


18,281

Consumer – indirect

81,534


23,070


8,858


8,867



2,916,849


3,039,178


18,133

Covered loans








Total loans

$                              251,665


$                                 81,405


$                      43,049


$       666,812


$                 96,484


$            59,175,789


$  60,315,204


$                     71,267

Loans held for sale

$                                        —


$                                        —


$                              —


$                 —


$                         —


$                    77,783


$         77,783


$                             —




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


$                             —



BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)


















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.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)












2018


2017


March 31


December 31


September 30


June 30


March 31

Assets:










Cash and due from banks

$    1,098,345


$          1,313,022


$             1,145,745


$    1,073,646


$    1,093,797

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

2,424,987


2,769,804


2,588,913


2,302,500


2,866,135

Cash and cash equivalents

3,523,332


4,082,826


3,734,658


3,376,146


3,959,932

Trading account assets

216,465


220,496


572,104


2,651,083


2,892,254

Debt securities available for sale

11,434,152


12,219,632


11,820,442


11,666,908


11,431,760

Debt securities held to maturity 

1,975,729


1,046,093


1,077,372


1,143,171


1,158,785

Loans held for sale

76,401


67,110


77,783


74,558


74,741

Loans

62,207,861


61,623,768


60,315,204


59,881,160


59,705,767

Allowance for loan losses

(832,071)


(842,760)


(849,119)


(816,952)


(834,106)

Net loans

61,375,790


60,781,008


59,466,085


59,064,208


58,871,661

Premises and equipment, net

1,189,253


1,214,874


1,226,747


1,253,516


1,273,226

Bank owned life insurance

724,600


722,596


720,693


718,938


715,883

Goodwill

4,983,296


4,983,296


4,983,296


4,983,296


4,983,296

Other assets

2,109,484


1,982,648


2,004,480


2,072,095


1,947,695

Total assets

$ 87,608,502


$        87,320,579


$          85,683,660


$ 87,003,919


$ 87,309,233

Liabilities:










Deposits:










Noninterest bearing

$ 21,792,498


$        21,630,694


$          21,094,235


$ 21,000,630


$ 21,476,890

Interest bearing

48,147,914


47,625,619


46,119,332


44,616,750


46,052,748

Total deposits

69,940,412


69,256,313


67,213,567


65,617,380


67,529,638

FHLB and other borrowings

3,322,940


3,959,930


3,956,041


4,789,494


2,993,222

Federal funds purchased and securities sold under agreements to repurchase

5,933


19,591


44,761


31,619


71,559

Other short-term borrowings

29,999


17,996


327,539


2,435,260


2,642,539

Accrued expenses and other liabilities

1,165,079


1,053,439


1,025,849


1,140,536


1,186,776

Total liabilities

74,464,363


74,307,269


72,567,757


74,014,289


74,423,734

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

14,814,744


14,818,608


14,912,412


14,916,198


14,982,125

Retained deficit

(1,660,417)


(1,868,659)


(1,920,184)


(2,050,051)


(2,207,060)

Accumulated other comprehensive loss

(271,431)


(197,405)


(137,583)


(137,131)


(150,781)

Total BBVA Compass Bancshares, Inc. shareholder's equity

13,114,601


12,984,249


13,086,350


12,960,721


12,855,989

Noncontrolling interests

29,538


29,061


29,553


28,909


29,510

Total shareholder's equity

13,144,139


13,013,310


13,115,903


12,989,630


12,885,499

Total liabilities and shareholder's equity

$ 87,608,502


$        87,320,579


$          85,683,660


$ 87,003,919


$ 87,309,233

 

BBVA COMPASS BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)












Three Months Ended


2018


2017


March 31


December 31


September 30


June 30


March 31

Interest income:










Interest and fees on loans

$     663,935


$              641,322


$                  623,884


$    607,375


$     574,712

Interest on debt securities available for sale

56,602


56,883


50,599


53,159


51,997

Interest on debt securities held to maturity

12,426


6,555


6,994


6,821


6,639

Interest on trading account assets

750


1,005


6,247


9,805


10,297

Interest on other earning assets

11,875


10,843


14,888


14,480


12,143

Total interest income

745,588


716,608


702,612


691,640


655,788

Interest expense:










Interest on deposits

97,347


88,016


75,083


65,914


70,304

Interest on FHLB and other borrowings

24,756


22,392


29,904


22,450


19,068

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

536


464


4,623


6,942


4,897

Interest on other short-term borrowings

344


2,191


3,641


10,506


10,086

Total interest expense

122,983


113,063


113,251


105,812


104,355

Net interest income

622,605


603,545


589,361


585,828


551,433

Provision for loan losses

57,029


58,835


103,434


45,285


80,139

Net interest income after provision for loan losses

565,576


544,710


485,927


540,543


471,294

Noninterest income:










Service charges on deposit accounts

56,161


56,070


55,953


54,919


55,168

Card and merchant processing fees

39,678


33,380


32,297


32,460


29,992

Retail investment sales

30,108


26,338


26,817


28,588


27,471

Investment banking and advisory fees

23,896


24,957


30,500


19,943


28,301

Money transfer income

20,688


24,101


24,881


27,330


25,197

Asset management fees

10,770


10,303


10,336


10,055


9,771

Corporate and correspondent investment sales

12,056


11,803


5,145


12,189


8,915

Mortgage banking

8,397


4,720


3,450


3,316


2,870

Bank owned life insurance

4,215


4,397


4,322


4,220


4,169

Investment securities gains, net



3,033



Other

51,856


101,100


61,060


53,305


52,833

Total noninterest income

257,825


297,169


257,794


246,325


244,687

Noninterest expense:










Salaries, benefits and commissions

289,440


296,146


279,384


288,426


268,015

Equipment

63,360


63,200


60,656


62,405


61,630

Professional services

60,645


76,068


64,775


64,840


57,807

Net occupancy

40,422


41,125


42,227


41,240


42,101

Money transfer expense

13,721


15,721


15,938


17,807


16,324

Marketing

8,787


7,950


14,996


15,729


13,545

Communications

5,263


4,970


5,084


5,281


5,219

Other

81,275


110,648


90,902


76,757


84,671

Total noninterest expense

562,913


615,828


573,962


572,485


549,312

Net income before income tax expense

260,488


226,051


169,759


214,383


166,669

Income tax expense

51,798


173,979


39,308


56,943


45,846

Net income

208,690


52,072


130,451


157,440


120,823

Less: net income attributable to noncontrolling interests

461


547


584


431


443

Net income attributable to BBVA Compass Bancshares, Inc.

$     208,229


$                51,525


$                  129,867


$    157,009


$     120,380

 

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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