BBVA Compass reports second quarter results

July 27, 2018

HOUSTON, July 27, 2018 /PRNewswire/ --

  • Quarterly net income totals $184 million
    • Net income up 17 percent from a year ago and 41 percent on a year-to-date basis
    • Return on average assets and return on average tangible equity1 for the quarter were 0.83 percent and 9.05 percent, respectively
  • Total revenue reaches record level; up 10 percent from prior year levels and 15 percent (annualized) from 1Q18 levels
    • Net interest income increases 10 percent compared to a year ago and 13 percent (annualized) on a linked quarter basis   
    • Noninterest income increases 10 percent from year ago levels and 19 percent (annualized) on a linked quarter basis
  • Noninterest expense growth well contained at 1 percent; up 2 percent on a year-to-date basis
  • Positive operating leverage results in record quarterly operating income1 of $334 million, an increase of 29 percent from the second quarter of 2017
  • Solid deposit generation fully supports increased activity in loan portfolio
    • Total loans rise to $63.3 billion, up 6 percent year-over year
    • Newly funded customer loans of $10.1 billion in the first half of 2018, up 35 percent from prior year
    • Total deposits of $70.1 billion, up 7 percent from a year ago levels
  • Credit quality measures stable during the quarter
    • Nonperforming loan ratio at 1.11 percent and net charge-off ratio at 40 basis points
    • Allowance to loan ratio at 1.36 percent and NPL coverage ratio at 122 percent
  • Results of CCAR and DFAST provide further evidence of strong capital position
    • Common Equity Tier 1 (CET1) ratio (phased-in)2 at 11.97 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 net income of $184 million for the second quarter of 2018, a 17 percent increase from the $157 million earned during the second quarter of 2017. Return on average assets and return on average tangible equity1 for the second quarter of 2018 were 0.83 percent and 9.05 percent, respectively.

Net income for the first six months of 2018 totaled $393 million, an increase of 41 percent from the $278 million earned during the first six months of 2017. Return on average assets and return on average tangible equity1 for the first six months of 2018 were 0.90 percent and 9.77 percent, respectively.

"Capitalizing on the positive momentum we have built throughout our organization enabled us to deliver another strong quarter and achieve a new quarterly record in operating income," said Onur Genç, president and CEO of BBVA Compass. "Revenue growth was strong and balanced as both net interest income and noninterest income posted double-digit gains. Newly funded loans in the quarter totaled more than $5.7 billion and on a year-to-date basis reached $10.1 billion, up 35 percent compared to a year ago. Our focus on being at the forefront of the digital transformation also continued with the recent launch of two new treasury management products - BBVA Compass RealTime ARP™ and BBVA Compass RealTime Positive Pay™ - that represent the first of their kind operating in real-time. Using technology to improve efficiency and provide customers with amazing experiences drives our innovative spirit."

Total revenue for the quarter was $914 million, an increase of 10 percent from the second quarter of 2017 and 15 percent on an annualized basis from first quarter 2018 levels. Net interest income totaled $643 million, an increase of $58 million or 10 percent  from the second quarter of 2017, and an annualized increase of 13 percent from first quarter 2018 levels. The percent net interest margin in the second quarter of 2018 was 3.30 percent, an increase of 19 basis points from a year ago and 3 basis points from the first quarter of 2018.

Noninterest income for the quarter totaled $270 million, an increase of 10 percent compared to the $246 million recorded in the second quarter of 2017. Growth was well diversified and many of our major fee-based businesses surpassed overall growth, led by card and merchant processing fees (+36 percent) and corporate and correspondent investment sales (+34 percent). The performance in investment banking and advisory fees (+23 percent), mortgage banking (+140 percent) and service charges on deposit accounts (+7 percent) was also noteworthy during the quarter. Maintaining strong expense controls also continued in the quarter with noninterest expenses rising 1 percent year-over-year and 2 percent on a year-to-date basis.

"With respect to balance sheet activity, loan growth accelerated in the quarter and, importantly, was fully supported by solid deposit generation," noted Genç.

Total loans at the end of the second quarter of 2018 were $63.3 billion, an increase of 6 percent from $60.0 billion at the end of the second quarter of 2017. Commercial growth was paced by C&I lending (+8 percent) while consumer loan growth accelerated, driven by increased activity in direct consumer lending (+48 percent) and credit cards (+22 percent). Total deposits at the end of the second quarter of 2018 were $70.1 billion, a 7 percent increase from the $65.6 billion at the end of the second quarter of 2017. The loan to deposit ratio ended the quarter at 90 percent, down slightly from 91 percent a year ago.

Credit quality metrics were stable during the quarter. Nonperforming loans as a percentage of total loans were 1.11 percent, unchanged from first quarter 2018 levels and down 5 basis points from year-end 2017 levels. Net charge-offs as a percentage of average loans totaled 40 basis points in the quarter, down from 44 basis points in the first quarter of 2018 and 42 basis points in the second quarter of 2017. 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 rose to 122 percent.

Total shareholder's equity at the end of the second quarter totaled $13.2 billion, a 2 percent increase from $13.0 billion at the end of the second quarter of 2017. The CET1 ratio rose to 11.97 percent2 at the end of the second quarter of 2018, up 17 basis points from the end of the fourth quarter of 2017. Importantly, all of BBVA Compass' regulatory capital ratios2 significantly exceed the requirements under "well-capitalized" guidelines.

"BBVA Compass has been part of the Comprehensive Capital Analysis and Review for five years, and in each, our capital plan has received no-objection from the Federal Reserve," Genç said. "Our record in this area clearly signals the importance we place on maintaining a strong capital position to enable us to expand our client base, increase business activity with our customers, support the communities that we serve and continue on our transformation journey to meet the challenges and opportunities of 21st century banking."

Income tax expense for the quarter totaled $58 million resulting in an effective tax rate of 24.0 percent compared to $57 million in the second quarter of 2017 resulting in an effective tax rate of 26.6 percent. Included in the current quarter is $11 million of additional income tax expense related to the correction of an error in prior period (primarily 2017) that resulted from an incorrect calculation of the proportional amortization of the company's Low Income Housing Tax Credit investments. The company has evaluated the effect of this correction and concluded that no prior annual period is materially misstated nor is it material to interim or expected full year 2018 results.

During the second quarter, BBVA Compass announced the closing of a $1.15 billion senior notes offering by its wholly-owned subsidiary Compass Bank. The offering was completed in two tranches including: $450 million in aggregate principal amount of floating rate unsecured senior notes due 2021 (Floating Rates Notes), and $700 million in aggregate principal amount of 3.50 percent unsecured senior notes due 2021 (Fixed Rate Notes). The Floating Rate Notes were sold at a price of 100 percent of par and the Fixed Rate Notes were sold at a price of 99.704 percent of par. Additional information pertaining to our fixed income debt issuances can be found on the Investor Relations portion of our website at bbva.investorroom.com.




1 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 these measures is included on the page titled Non-GAAP Reconciliation.

2 Regulatory capital ratios at June 30, 2018, are estimated.

About BBVA Compass
BBVA Compass is a Sunbelt-based financial institution that operates 645 branches, including 332 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 June 30,


%


Six Months Ended June 30,


%









2018


2017


Change


2018


2017


Change







EARNINGS SUMMARY



















Net interest income


$       643,499


$       585,828


10


$    1,266,104


$    1,137,261


11







Noninterest income


270,019


246,325


10


527,844


491,012


8







Total revenue


913,518


832,153


10


1,793,948


1,628,273


10







Provision for loan losses


91,280


45,285


102


148,309


125,424


18







Noninterest expense


579,545


572,485


1


1,142,458


1,121,797


2







Pretax income


242,693


214,383


13


503,181


381,052


32







Income tax expense


58,295


56,943


2


110,093


102,789


7







Net income


184,398


157,440


17


393,088


278,263


41







Net income attributable to noncontrolling interests


595


431


38


1,056


874


21







Net income attributable to BBVA Compass Bancshares, Inc.


$       183,803


$       157,009


17


$       392,032


$       277,389


41


























SELECTED RATIOS



















Return on average assets


0.83 %


0.72 %




0.90 %


0.64 %









Return on average tangible equity [a]


9.05


7.93




9.77


7.12









Average common equity to average assets


14.56


14.57




14.59


14.47









Average loans to average total deposits


90.62


91.16




90.12


90.45









Common equity tier I capital (CET1) [b]


11.97


11.90




11.97


11.90









Tier I capital ratio [b]


12.31


12.25




12.31


12.25









Total capital ratio [b]


14.49


14.62




14.49


14.62









Leverage ratio [b]


10.05


9.82




10.05


9.82









 



Average for Three Months




Average for Six Months




Ending Balance





Ended June 30,


%


Ended June 30,


%


June 30,


%



2018


2017


Change


2018


2017


Change


2018


2017


Change

BALANCE SHEET HIGHLIGHTS



















Total loans


$  63,202,826


$  59,902,725


6


$  62,704,406


$  60,113,615


4


$  63,343,018


$  59,955,718


6

Total debt securities


13,332,825


12,653,300


5


13,263,113


12,555,619


6


13,491,910


12,810,079


5

Earning assets


79,538,657


78,182,674


2


79,078,356


78,223,352


1


79,922,849


78,063,676


2

Total assets


89,032,051


87,474,348


2


88,404,964


87,575,056


1


88,754,662


87,003,919


2

Noninterest bearing demand deposits


21,281,715


21,110,531


1


21,430,981


20,845,583


3


21,433,218


21,000,630


2

Interest bearing transaction accounts


33,808,453


32,566,221


4


33,765,439


32,985,683


2


34,350,824


32,472,406


6

Total transaction accounts


55,090,168


53,676,752


3


55,196,420


53,831,266


3


55,784,042


53,473,036


4

Total deposits


69,744,181


65,711,133


6


69,579,904


66,459,835


5


70,147,708


65,617,380


7

Total shareholder's equity


13,217,831


13,004,717


2


13,154,476


12,929,108


2


13,190,644


12,989,630


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



June 30


March 31


December 31


September 30


June 30

NONPERFORMING ASSETS











Nonaccrual loans [a]


$   662,991


$   647,210


$      658,865


$       666,812


$   760,313

Loans 90 days or more past due [b]


39,143


45,904


58,378


43,049


59,434

TDRs 90 days or more past due


491


700


751


963


969

Total nonperforming loans [a]


702,625


693,814


717,994


710,824


820,716

Other real estate owned, net (OREO)


16,499


16,147


17,278


22,012


22,965

Other repossessed assets


13,117


11,278


13,473


11,443


12,298

Total nonperforming assets


$732,241


$721,239


$      748,745


$       744,279


$855,979












TDRs accruing and past due less than 90 days


$  99,251


$101,285


$      100,492


$         95,521


$  97,088












Total nonperforming loans as a % of loans


1.11 %


1.11 %


1.16 %


1.18 %


1.37 %

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


1.16


1.16


1.21


1.23


1.43














Three Months Ended



2018


2017



June 30


March 31


December 31


September 30


June 30

ALLOWANCE FOR LOAN LOSSES











Balance at beginning of period


$   832,071


$   842,760


$      849,119


$       816,952


$   834,106

Net charge-offs (NCO)


63,351


67,718


65,194


71,267


62,439

Provision for loan losses


91,280


57,029


58,835


103,434


45,285

Balance at end of period


$   860,000


$   832,071


$      842,760


$       849,119


$   816,952












Allowance for loan losses as a % of total loans


1.36 %


1.34 %


1.37 %


1.41 %


1.36 %

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


122.40


119.93


117.38


119.46


99.54

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


117.45


115.37


112.56


114.09


95.44












Annualized as a % of average loans:











NCO - QTD


0.40


0.44


0.42


0.47


0.42

NCO - YTD


0.42


0.44


0.47


0.48


0.49












[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 June 30,



2018


2017



Average Balance


Income/ Expense


Yield/ Rate


Average Balance


Income/ Expense


Yield/ Rate

YIELD/RATE ANALYSIS













(Taxable Equivalent Basis)













Assets













Earning assets:













Loans


$63,202,826


$722,346


4.58 %


$59,902,725


$625,366


4.19 %

Debt securities available for sale [a]


11,535,569


53,792


1.87


11,608,533


53,181


1.84

Debt securities held to maturity


2,088,717


14,521


2.79


1,134,494


9,961


3.52

Other earning assets [b]


3,003,006


15,840


2.12


5,626,649


24,287


1.73

Total earning assets [a]


79,830,118


806,499


4.05


78,272,401


712,795


3.65

Allowance for loan losses


(840,557)






(836,477)





Unrealized loss on debt securities available for sale


(291,461)






(89,727)





Other assets


10,333,951






10,128,151





Total assets


$89,032,051






$87,474,348


















Liabilities and Shareholder's Equity













Interest bearing liabilities:













Interest bearing demand deposits


$  7,944,965


$  11,025


0.56


$  7,849,285


$    6,261


0.32

Savings and money market accounts


25,863,488


48,793


0.76


24,716,936


22,380


0.36

Certificates and other time deposits


14,654,013


56,505


1.55


12,034,381


37,273


1.24

   Total interest bearing deposits


48,462,466


116,323


0.96


44,600,602


65,914


0.59

FHLB and other borrowings


3,974,769


31,912


3.22


4,104,668


22,450


2.19

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


103,974


1,399


5.40


99,039


6,942


28.11

Other short-term borrowings


78,402


567


2.90


2,638,671


10,506


1.60

Total interest bearing liabilities


52,619,611


150,201


1.14


51,442,980


105,812


0.83

Noninterest bearing deposits


21,281,715






21,110,531





Other noninterest bearing liabilities


1,912,894






1,916,120





Total liabilities


75,814,220






74,469,631





Shareholder's equity


13,217,831






13,004,717





Total liabilities and shareholder's equity


$89,032,051






$87,474,348


















Net interest income/ net interest spread




656,298


2.91 %




606,983


2.82 %

Net yield on earning assets






3.30 %






3.11 %














Total taxable equivalent adjustment




12,799






21,155
















Net interest income




$643,499






$585,828




[a] Excludes adjustment for market valuation.

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)
















Six Months Ended June 30,



2018


2017



Average Balance


Income/ Expense


Yield/ Rate


Average Balance


Income/ Expense


Yield/ Rate

YIELD/RATE ANALYSIS













(Taxable Equivalent Basis)













Assets













Earning assets:













Loans


$62,704,406


$1,397,176


4.49 %


$60,113,615


$1,217,070


4.08 %

Debt securities available for sale [a]


11,480,294


110,397


1.94


11,519,788


105,232


1.84

Debt securities held to maturity


2,042,818


28,423


2.81


1,151,552


19,532


3.42

Other earning assets [b]


3,110,837


28,466


1.85


5,554,118


46,728


1.70

Total earning assets [a]


79,338,355


1,564,462


3.98


78,339,073


1,388,562


3.57

Allowance for loan losses


(842,392)






(843,381)





Unrealized loss on debt securities available for sale


(259,999)






(115,721)





Other assets


10,169,000






10,195,085





Total assets


$88,404,964






$87,575,056


















Liabilities and Shareholder's Equity













Interest bearing liabilities:













Interest bearing demand deposits


$  8,069,593


20,606


0.51


$  8,019,136


12,392


0.31

Savings and money market accounts


25,695,846


87,683


0.69


24,966,547


44,681


0.36

Certificates and other time deposits


14,383,484


105,381


1.48


12,628,569


79,145


1.26

   Total interest bearing deposits


48,148,923


213,670


0.89


45,614,252


136,218


0.60

FHLB and other borrowings


3,644,363


56,668


3.14


3,638,825


41,518


2.30

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


63,330


1,935


6.16


71,102


11,839


33.58

Other short-term borrowings


65,088


911


2.82


2,673,046


20,592


1.55

Total interest bearing liabilities


51,921,704


273,184


1.06


51,997,225


210,167


0.82

Noninterest bearing deposits


21,430,981






20,845,583





Other noninterest bearing liabilities


1,897,803






1,803,140





Total liabilities


75,250,488






74,645,948





Shareholder's equity


13,154,476






12,929,108





Total liabilities and shareholder's equity


$88,404,964






$87,575,056


















Net interest income/ net interest spread




1,291,278


2.92 %




1,178,395


2.75 %

Net yield on earning assets






3.28 %






3.03 %














Total taxable equivalent adjustment




25,174






41,134
















Net interest income




$1,266,104






$1,137,261




[a] Excludes adjustment for market valuation.

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)




















Six Months




Three Months Ended



Ended June 30,


%


2018


2017



2018


2017


 Change 


June 30


March 31


December 31


September 30


June 30

NONINTEREST INCOME

















Service charges on deposit accounts


$   114,742


$   110,087


4


$  58,581


$  56,161


$        56,070


$         55,953


$  54,919

Card and merchant processing fees


83,726


62,452


34


44,048


39,678


33,380


32,297


32,460

Retail investment sales


59,890


56,059


7


29,782


30,108


26,338


26,817


28,588

Investment banking and advisory fees


48,442


48,244



24,546


23,896


24,957


30,500


19,943

Money transfer income


44,608


52,527


(15)


23,920


20,688


24,101


24,881


27,330

Corporate and correspondent investment sales


28,411


21,104


35


16,355


12,056


11,803


5,145


12,189

Asset management fees


21,759


19,826


10


10,989


10,770


10,303


10,336


10,055

Mortgage banking


16,361


6,186


164


7,964


8,397


4,720


3,450


3,316

Bank owned life insurance


8,590


8,389


2


4,375


4,215


4,397


4,322


4,220

Other


101,315


106,138


(5)


49,459


51,856


101,100


61,060


53,305



527,844


491,012


8


270,019


257,825


297,169


254,761


246,325

Investment securities gains, net








3,033


Total noninterest income


$   527,844


$   491,012


8


$270,019


$257,825


$      297,169


$       257,794


$246,325


















NONINTEREST EXPENSE

















Salaries, benefits and commissions


$   576,292


$   556,441


4


$286,852


$289,440


$      296,146


$       279,384


$288,426

Equipment


127,020


124,035


2


63,660


63,360


63,200


60,656


62,405

Professional services


129,222


122,647


5


68,577


60,645


76,068


64,775


64,840

Net occupancy


83,093


83,341



42,671


40,422


41,125


42,227


41,240

Money transfer expense


30,023


34,131


(12)


16,302


13,721


15,721


15,938


17,807

Marketing


20,601


29,274


(30)


11,814


8,787


7,950


14,996


15,729

Communications


10,514


10,500



5,251


5,263


4,970


5,084


5,281

Other


165,693


161,428


3


84,418


81,275


110,648


90,902


76,757

Total noninterest expense


$1,142,458


$1,121,797


2


$579,545


$562,913


$      615,828


$       573,962


$572,485


















 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)












Three Months Ended June 30,


Six Months Ended June 30,



2018


2017


2018


2017

NON-GAAP RECONCILIATION


















Computation of Operating Income:









Net interest income (GAAP)


$        643,499


$               585,828


$     1,266,104


$     1,137,261

Plus: noninterest income (GAAP)


270,019


246,325


527,844


491,012

Less: noninterest expense (GAAP)


579,545


572,485


1,142,458


1,121,797

   Operating income (non-GAAP)


$        333,973


$               259,668


$        651,490


$        506,476




























Computation of Average Tangible Equity:









Total stockholder's equity (average) (GAAP)


$   13,217,831


$           13,004,717


$   13,154,476


$   12,929,108

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


5,040,777


5,045,470


5,040,016


5,047,470

Average tangible equity (non-GAAP) [B]


$     8,177,054


$            7,959,247


$     8,114,460


$     7,881,638

   Net income (GAAP) [A]


$        184,398


$               157,440


$        393,088


$        278,263

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


9.05 %


7.93 %


9.77 %


7.12 %

 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)


















At or Quarter Ended June 30, 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

$                       55,116


$                       12,405


$                 3,597


$   323,287


$              5,722


$     26,248,260


$ 26,648,387


$              10,567

Real estate – construction

579


163


540


13,289


125


2,115,565


2,130,261


287

Commercial real estate –  mortgage

20,450


2,826


3,211


105,409


3,945


11,659,635


11,795,476


(5,505)

Residential real estate – mortgage

76,693


27,972


5,026


162,892


59,940


13,017,967


13,350,490


1,558

Equity lines of credit

10,661


4,384


2,191


34,269


237


2,627,974


2,679,716


453

Equity loans

3,519


882


306


10,153


29,303


281,302


325,465


(443)

Credit card

6,353


4,733


11,931




681,617


704,634


11,299

Consumer – direct

24,060


9,577


6,313


1,073


470


2,098,439


2,139,932


29,876

Consumer – indirect

79,600


22,616


6,028


12,619



3,395,753


3,516,616


15,259

Covered loans








Total loans

$                     277,031


$                       85,558


$              39,143


$   662,991


$            99,742


$     62,126,512


$ 63,290,977


$              63,351

Loans held for sale

$                                —


$                                —


$                       —


$              —


$                    —


$             52,041


$         52,041


$                      —


















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


$                      —

 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)






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


$                      —


















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


$                      —

 

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


236,000


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.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)












2018


2017


June 30


March 31


December 31


September 30


June 30

Assets:










Cash and due from banks

$    1,138,034


$    1,098,345


$      1,313,022


$       1,145,745


$    1,073,646

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

2,438,585


2,424,987


2,769,804


2,588,913


2,302,500

Cash and cash equivalents

3,576,619


3,523,332


4,082,826


3,734,658


3,376,146

Trading account assets

277,694


216,465


220,496


572,104


2,651,083

Debt securities available for sale

11,293,724


11,434,152


12,219,632


11,820,442


11,666,908

Debt securities held to maturity 

2,198,186


1,975,729


1,046,093


1,077,372


1,143,171

Loans held for sale

52,041


76,401


67,110


77,783


74,558

Loans

63,290,977


62,207,861


61,623,768


60,315,204


59,881,160

Allowance for loan losses

(860,000)


(832,071)


(842,760)


(849,119)


(816,952)

Net loans

62,430,977


61,375,790


60,781,008


59,466,085


59,064,208

Premises and equipment, net

1,170,798


1,189,253


1,214,874


1,226,747


1,253,516

Bank owned life insurance

728,703


724,600


722,596


720,693


718,938

Goodwill

4,983,296


4,983,296


4,983,296


4,983,296


4,983,296

Other assets

2,042,624


2,109,484


1,982,648


2,004,480


2,072,095

Total assets

$ 88,754,662


$ 87,608,502


$   87,320,579


$     85,683,660


$ 87,003,919

Liabilities:










Deposits:










Noninterest bearing

$ 21,433,218


$ 21,792,498


$   21,630,694


$     21,094,235


$ 21,000,630

Interest bearing

48,714,490


48,147,914


47,625,619


46,119,332


44,616,750

Total deposits

70,147,708


69,940,412


69,256,313


67,213,567


65,617,380

FHLB and other borrowings

4,157,284


3,322,940


3,959,930


3,956,041


4,789,494

Federal funds purchased and securities sold under agreements to repurchase

185,511


5,933


19,591


44,761


31,619

Other short-term borrowings

81,547


29,999


17,996


327,539


2,435,260

Accrued expenses and other liabilities

991,968


1,165,079


1,053,439


1,025,849


1,140,536

Total liabilities

75,564,018


74,464,363


74,307,269


72,567,757


74,014,289

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

14,699,773


14,814,744


14,818,608


14,912,412


14,916,198

Retained deficit

(1,476,614)


(1,660,417)


(1,868,659)


(1,920,184)


(2,050,051)

Accumulated other comprehensive loss

(293,323)


(271,431)


(197,405)


(137,583)


(137,131)

Total BBVA Compass Bancshares, Inc. shareholder's equity

13,161,541


13,114,601


12,984,249


13,086,350


12,960,721

Noncontrolling interests

29,103


29,538


29,061


29,553


28,909

Total shareholder's equity

13,190,644


13,144,139


13,013,310


13,115,903


12,989,630

Total liabilities and shareholder's equity

$ 88,754,662


$ 87,608,502


$   87,320,579


$     85,683,660


$ 87,003,919





















 

BBVA COMPASS BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)












Three Months Ended


2018


2017


June 30


March 31


December 31


September 30


June 30

Interest income:










Interest and fees on loans

$    711,006


$    663,935


$        641,322


$          623,884


$    607,375

Interest on debt securities available for sale

53,792


56,602


56,883


50,599


53,159

Interest on debt securities held to maturity

13,062


12,426


6,555


6,994


6,821

Interest on trading account assets

924


750


1,005


6,247


9,805

Interest on other earning assets

14,916


11,875


10,843


14,888


14,480

Total interest income

793,700


745,588


716,608


702,612


691,640

Interest expense:










Interest on deposits

116,323


97,347


88,016


75,083


65,914

Interest on FHLB and other borrowings

31,912


24,756


22,392


29,904


22,450

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

1,399


536


464


4,623


6,942

Interest on other short-term borrowings

567


344


2,191


3,641


10,506

Total interest expense

150,201


122,983


113,063


113,251


105,812

Net interest income

643,499


622,605


603,545


589,361


585,828

Provision for loan losses

91,280


57,029


58,835


103,434


45,285

Net interest income after provision for loan losses

552,219


565,576


544,710


485,927


540,543

Noninterest income:










Service charges on deposit accounts

58,581


56,161


56,070


55,953


54,919

Card and merchant processing fees

44,048


39,678


33,380


32,297


32,460

Retail investment sales

29,782


30,108


26,338


26,817


28,588

Investment banking and advisory fees

24,546


23,896


24,957


30,500


19,943

Money transfer income

23,920


20,688


24,101


24,881


27,330

Asset management fees

10,989


10,770


10,303


10,336


10,055

Corporate and correspondent investment sales

16,355


12,056


11,803


5,145


12,189

Mortgage banking

7,964


8,397


4,720


3,450


3,316

Bank owned life insurance

4,375


4,215


4,397


4,322


4,220

Investment securities gains, net




3,033


Other

49,459


51,856


101,100


61,060


53,305

Total noninterest income

270,019


257,825


297,169


257,794


246,325

Noninterest expense:










Salaries, benefits and commissions

286,852


289,440


296,146


279,384


288,426

Equipment

63,660


63,360


63,200


60,656


62,405

Professional services

68,577


60,645


76,068


64,775


64,840

Net occupancy

42,671


40,422


41,125


42,227


41,240

Money transfer expense

16,302


13,721


15,721


15,938


17,807

Marketing

11,814


8,787


7,950


14,996


15,729

Communications

5,251


5,263


4,970


5,084


5,281

Other

84,418


81,275


110,648


90,902


76,757

Total noninterest expense

579,545


562,913


615,828


573,962


572,485

Net income before income tax expense

242,693


260,488


226,051


169,759


214,383

Income tax expense

58,295


51,798


173,979


39,308


56,943

Net income

184,398


208,690


52,072


130,451


157,440

Less: net income attributable to noncontrolling interests

595


461


547


584


431

Net income attributable to BBVA Compass Bancshares, Inc.

$    183,803


$    208,229


$          51,525


$          129,867


$    157,009











 

SOURCE BBVA Compass

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


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