BBVA Compass reports third quarter results

October 30, 2018

HOUSTON, Oct. 30, 2018 /PRNewswire/ --

  • Quarterly net income totals $175 million
    • Net income up 34 percent from a year ago and 39 percent on a year-to-date basis
    • Return on average assets and return on average tangible equity1 for the quarter were 0.77 percent and 8.35 percent, respectively
  • Total revenue reaches record level; up 9 percent from prior year levels and 10 percent on a year-to-date basis
    • Net interest income increases $69 million or 12 percent from a year ago
    • Net interest margin (FTE) increases 14 basis points from prior year and up 21 basis points on a year-to-date basis
  • Positive operating leverage results in quarterly operating income1 of $311 million, an increase of 14 percent from the third quarter of 2017
  • Balanced loan growth supported by continued deposit generation
    • Total loans rise to $64.5 billion, up 7 percent year-over-year
    • Newly funded customer loans of $5.9 billion in the quarter bring year-to-date total to $16.0 billion in 2018, up 29 percent from the prior year
    • Total deposits of $70.4 billion, up 5 percent from a year ago levels
  • Key credit quality metrics show improvement during the quarter
    • Nonperforming loan ratio drops to 1.04 percent
    • Net charge-off ratio at 45 basis points year-to-date compared to 48 basis points in 2017
    • Allowance to loan ratio at 1.36 percent and NPL coverage ratio increases to 130 percent
  • BBVA Compass mobile banking app deemed industry leader in two areas
    • Recognized for prowess in ease of use and customer service in Javelin Strategy & Research's 2018 Mobile Banking Scorecard
    • Marks the fifth consecutive year BBVA Compass mobile banking app has been recognized by the independent research firm

BBVA Compass corporate logo (PRNewsFoto/BBVA Compass)

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $175 million for the third quarter of 2018, a 34 percent increase from the $130 million earned during the third quarter of 2017. Included in third quarter 2017 results is approximately $60 million (pre-tax) of provision expense related to Hurricanes Harvey and Irma. Return on average assets and return on average tangible equity1 for the third quarter of 2018 were 0.77 percent and 8.35 percent, respectively.

Net income for the first nine months of 2018 totaled $568 million, an increase of 39 percent from the $409 million earned during the first nine months of 2017. Return on average assets and return on average tangible equity1 for the first nine months of 2018 were 0.85 percent and 9.28 percent, respectively.

"Results for the quarter continue to reflect the positive underlying trends throughout many of our businesses and allowed us to post record quarterly revenue," said Onur Genç, president and CEO of BBVA Compass. "The increase in net interest income certainly reflects the benefit of higher short-term interest rates, coupled with our ability to expand new and existing loan and deposit relationships with our clients. During the quarter, newly funded loans totaled more than $5.9 billion and for the year exceed $16.0 billion, a 29 percent increase over last year. As we enter the final quarter of 2018, our balance sheet is well-positioned to continue benefiting from higher interest rates, our digital transformation efforts continue to drive new industry-leading product offerings and enhance customer experience, and our team is focused on ending the year on a strong note while building momentum for next year."

Total revenue for the quarter was a record $917 million, an increase of 9 percent from the third quarter of 2017 and up 10 percent on a year-to-date basis. Revenue growth was driven by an increase in net interest income. Net interest income totaled $658 million, an increase of $69 million or 12 percent from the third quarter of 2017. The percent net interest margin in the third quarter of 2018 was 3.27 percent, an increase of 14 basis points from a year ago. On a year-to-date basis, net interest income totaled $1.9 billion, an increase of $198 million or 11 percent while the percentage net interest margin was 3.28 percent, up 21 basis points compared to the same timeframe a year ago.

Noninterest income for the quarter totaled $258 million, an increase of 1 percent compared to the $255 million recorded in the third quarter of 2017. Positive performances in card and merchant processing fees (+37 percent), corporate and correspondent investment sales (+143 percent), service charges on deposit accounts (+8 percent) and mortgage banking (+95 percent) were offset, in part, by a decline in underwriting activity associated with investment banking and advisory fees (-54 percent) and a decline in other income that primarily relates to certain interchange fees that were reclassified to card and merchant processing fees in 2018.

Noninterest expense totaled $606 million, an increase of 5 percent compared to the year ago quarter. On a year-to-date basis, overall expense growth has been well-contained at 3 percent. Maintaining good expense controls, coupled with strong revenue generation, resulted in positive operating leverage in the quarter as operating income totaled $311 million, an increase of $38 million or 14 percent compared to the prior year quarter.

Total loans at the end of the third quarter of 2018 were $64.5 billion, an increase of 7 percent from the $60.4 billion at the end of the third quarter of 2017.

"Loan growth in the quarter was well-balanced between both our commercial and consumer loan portfolios," said Genç. "Commercial growth was driven by a 6 percent increase in C&I lending and consumer growth was paced by a 51 percent increase in direct consumer lending and a 29 percent increase in credit cards, reflecting the success of our fully-digital Express Personal Loan product and revamped credit card offering launched earlier this year."

Total deposits at the end of the third quarter of 2018 were $70.4 billion, a 5 percent increase from the $67.2 billion at the end of the third quarter of 2017. The loan to deposit ratio ended the quarter at 92 percent, up slightly from 90 percent a year ago.

"While increasing activity with our customers and improving our profitability profile has been our primary focal point, we also recognize the importance of being committed to maintaining sound underwriting standards and a strong risk profile," noted Genç.

During the quarter, many of our key credit quality metrics showed improvement. Nonperforming loans as a percentage of total loans were 1.04 percent, down 7 basis points from second quarter 2018 levels and down 14 basis points from the third quarter of 2017. Net charge-offs as a percentage of average loans were 49 basis points in the quarter. On a year-to-date basis, net charge-offs as a percentage of average loans were 45 basis points compared to 48 basis points in the same period a year ago. The allowance for loan losses as a percentage of total loans ended the quarter at 1.36 percent, unchanged from second quarter 2018 levels while the coverage ratio of nonperforming loans rose to 130 percent.

Total shareholder's equity at the end of the third quarter totaled $13.3 billion, a 2 percent increase from $13.1 billion at the end of the third quarter of 2017. The CET1 ratio stood at 12.08 percent2 at the end of the third quarter of 2018, relatively unchanged from a year ago and up 28 basis points from the end of the fourth quarter of 2017. All of BBVA Compass' regulatory capital ratios2 continue to significantly exceed the requirements under "well-capitalized" guidelines.

The BBVA Compass Mobile Banking App was named a leader in both the ease of use and customer service categories in Javelin Strategy & Research's 2018 Mobile Banking Scorecard, marking the fifth consecutive year the app has been recognized as a leader in mobile banking by the independent research firm. Together, the two categories make up more than a third of the weighting of the study, with ease of use being the most critical component. Only three banks are recognized as leaders in each category.

_________________________

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 September 30, 2018, are estimated.

FTE – fully taxable equivalent

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 September 30,


%


Nine Months Ended September 30,


%








2018


2017


Change


2018


2017


Change







EARNINGS SUMMARY


















Net interest income

$       658,286


$       589,361


12


$    1,924,390


$    1,726,622


11







Noninterest income [a]

258,459


254,761


1


786,303


745,773


5







Total revenue [a]

916,745


844,122


9


2,710,693


2,472,395


10







Investment securities gain, net


3,033


 NM 



3,033


 NM 







Provision for loan losses

94,964


103,434


(8)


243,273


228,858


6







Noninterest expense

605,510


573,962


5


1,747,968


1,695,759


3







Pretax income

216,271


169,759


27


719,452


550,811


31







Income tax expense

41,756


39,308


6


151,849


142,097


7







Net income

174,515


130,451


34


567,603


408,714


39







Net income attributable to noncontrolling interests

426


584


(27)


1,482


1,458


2







Net income attributable to BBVA Compass Bancshares, Inc.

$       174,089


$       129,867


34


$       566,121


$       407,256


39

























SELECTED RATIOS


















Return on average assets

0.77 %


0.59 %




0.85 %


0.62 %









Return on average tangible equity [b]

8.35


6.40




9.28


6.87









Average common equity to average assets

14.51


14.74




14.56


14.56









Average loans to average total deposits

91.41


91.89




90.56


90.93









Common equity tier I capital (CET1) [c]

12.08


12.07




12.08


12.07









Tier I capital ratio [c]

12.41


12.42




12.41


12.42









Total capital ratio [c]

14.58


14.63




14.58


14.63









Leverage ratio [c]

10.12


10.00




10.12


10.00
































































Average for Three Months




Average for Nine Months




Ending Balance




Ended September 30,


%


Ended September 30,


%


September 30,


%


2018


2017


Change


2018


2017


Change


2018


2017


Change

BALANCE SHEET HIGHLIGHTS


















Total loans

$  64,316,342


$  60,271,504


7


$  63,247,623


$  60,166,823


5


$  64,530,848


$  60,392,987


7

Total debt securities

13,480,726


12,883,837


5


13,336,448


12,666,227


5


13,625,428


12,897,814


6

Earning assets

81,095,701


77,344,927


5


79,758,194


77,927,326


2


81,212,434


76,768,653


6

Total assets

90,118,668


87,299,979


3


88,982,476


87,482,356


2


90,047,656


85,683,660


5

Noninterest bearing demand deposits

20,990,763


21,072,789



21,282,629


20,922,150


2


20,968,391


21,094,235


(1)

Interest bearing transaction accounts

34,463,223


32,108,141


7


34,000,590


32,689,955


4


34,732,504


32,637,845


6

Total transaction accounts

55,453,986


53,180,930


4


55,283,219


53,612,105


3


55,700,895


53,732,080


4

Total deposits

70,363,598


65,589,724


7


69,844,006


66,166,611


6


70,378,057


67,213,567


5

Total shareholder's equity

13,334,169


13,130,915


2


13,215,032


12,997,116


2


13,342,487


13,115,903


2


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

[b]  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.

[c]  Current period regulatory capital ratios are estimated.

NM = Not meaningful

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)






2018


2017


September 30


June 30


March 31


December 31


September 30

NONPERFORMING ASSETS










Nonaccrual loans [a]

$       628,159


$662,991


$647,210


$      658,865


$       666,812

Loans 90 days or more past due [b]

44,765


39,143


45,904


58,378


43,049

TDRs 90 days or more past due

444


491


700


751


963

Total nonperforming loans [a]

673,368


702,625


693,814


717,994


710,824

Other real estate owned, net (OREO)

18,706


16,499


16,147


17,278


22,012

Other repossessed assets

9,875


13,117


11,278


13,473


11,443

Total nonperforming assets

$       701,949


$732,241


$721,239


$      748,745


$       744,279











TDRs accruing and past due less than 90 days

$         92,606


$  99,251


$101,285


$      100,492


$         95,521











Total nonperforming loans as a % of loans

1.04 %


1.11 %


1.11 %


1.16 %


1.18 %

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

1.09


1.16


1.16


1.21


1.23












Three Months Ended


2018


2017


September 30


June 30


March 31


December 31


September 30

ALLOWANCE FOR LOAN LOSSES










Balance at beginning of period

$       860,000


$832,071


$842,760


$      849,119


$       816,952

Net charge-offs (NCO)

79,571


63,351


67,718


65,194


71,267

Provision for loan losses

94,964


91,280


57,029


58,835


103,434

Balance at end of period

$       875,393


$860,000


$832,071


$      842,760


$       849,119











Allowance for loan losses as a % of total loans

1.36 %


1.36 %


1.34 %


1.37 %


1.41 %

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

130.00


122.40


119.93


117.38


119.46

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

124.71


117.45


115.37


112.56


114.09











Annualized as a % of average loans:










NCO - QTD

0.49


0.40


0.44


0.42


0.47

NCO - YTD

0.45


0.42


0.44


0.47


0.48


[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 September 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

$64,316,342


$763,165


4.71 %


$60,271,504


$642,670


4.23 %

Debt securities available for sale [a]

11,416,609


53,201


1.85


11,837,526


50,608


1.70

Debt securities held to maturity

2,360,654


17,548


2.95


1,122,893


10,088


3.56

Other earning assets [b]

3,298,633


18,282


2.20


4,189,586


21,135


2.00

Total earning assets [a]

81,392,238


852,196


4.15


77,421,509


724,501


3.71

Allowance for loan losses

(866,131)






(821,227)





Unrealized loss on debt securities available for sale

(296,537)






(76,582)





Other assets

9,889,098






10,776,279





Total assets

$90,118,668






$87,299,979

















Liabilities and Shareholder's Equity












Interest bearing liabilities:












Interest bearing demand deposits

$  7,703,562


$  12,644


0.65


$  7,557,010


$    6,819


0.36

Savings and money market accounts

26,759,661


63,796


0.95


24,551,131


27,962


0.45

Certificates and other time deposits

14,909,612


63,458


1.69


12,408,794


40,302


1.29

Total interest bearing deposits

49,372,835


139,898


1.12


44,516,935


75,083


0.67

FHLB and other borrowings

4,412,717


37,131


3.34


5,053,340


29,904


2.35

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

172,277


3,169


7.30


52,034


4,623


35.25

Other short-term borrowings

77,413


579


2.97


1,386,329


3,641


1.04

Total interest bearing liabilities

54,035,242


180,777


1.33


51,008,638


113,251


0.88

Noninterest bearing deposits

20,990,763






21,072,789





Other noninterest bearing liabilities

1,758,494






2,087,637





Total liabilities

76,784,499






74,169,064





Shareholder's equity

13,334,169






13,130,915





Total liabilities and shareholder's equity

$90,118,668






$87,299,979

















Net interest income/ net interest spread



671,419


2.82 %




611,250


2.83 %

Net yield on earning assets





3.27 %






3.13 %













Total taxable equivalent adjustment



13,133






21,889















Net interest income



$658,286






$589,361




[a] Excludes adjustment for market valuation.

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)














Nine Months Ended September 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

$63,247,623


$2,160,341


4.57 %


$60,166,823


$1,859,740


4.13 %

Debt securities available for sale [a]

11,458,832


163,598


1.91


11,626,864


155,840


1.79

Debt securities held to maturity

2,149,928


45,971


2.86


1,141,894


29,620


3.47

Other earning assets [b]

3,174,123


46,748


1.97


5,094,276


67,863


1.78

Total earning assets [a]

80,030,506


2,416,658


4.04


78,029,857


2,113,063


3.62

Allowance for loan losses

(850,392)






(835,915)





Unrealized loss on debt securities available for sale

(272,312)






(102,531)





Other assets

10,074,674






10,390,945





Total assets

$88,982,476






$87,482,356

















Liabilities and Shareholder's Equity












Interest bearing liabilities:












Interest bearing demand deposits

$  7,946,242


33,250


0.56


$  7,863,401


19,211


0.33

Savings and money market accounts

26,054,348


151,479


0.78


24,826,554


72,643


0.39

Certificates and other time deposits

14,560,787


168,839


1.55


12,554,506


119,447


1.27

Total interest bearing deposits

48,561,377


353,568


0.97


45,244,461


211,301


0.62

FHLB and other borrowings

3,903,295


93,799


3.21


4,115,511


71,422


2.32

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

100,045


5,104


6.82


64,676


16,462


34.03

Other short-term borrowings

69,242


1,490


2.88


2,239,427


24,233


1.45

Total interest bearing liabilities

52,633,959


453,961


1.15


51,664,075


323,418


0.84

Noninterest bearing deposits

21,282,629






20,922,150





Other noninterest bearing liabilities

1,850,856






1,899,015





Total liabilities

75,767,444






74,485,240





Shareholder's equity

13,215,032






12,997,116





Total liabilities and shareholder's equity

$88,982,476






$87,482,356

















Net interest income/ net interest spread



1,962,697


2.89 %




1,789,645


2.78 %

Net yield on earning assets





3.28 %






3.07 %













Total taxable equivalent adjustment



38,307






63,023















Net interest income



$1,924,390






$1,726,622




[a] Excludes adjustment for market valuation.

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)


















Nine Months




Three Months Ended


Ended September 30,


%


2018


2017


2018


2017


Change


September 30


June 30


March 31


December 31


September 30

NONINTEREST INCOME
















Service charges on deposit accounts

$   175,067


$   166,040


5


$         60,325


$  58,581


$  56,161


$        56,070


$         55,953

Card and merchant processing fees

127,945


94,749


35


44,219


44,048


39,678


33,380


32,297

Retail investment sales

88,176


82,876


6


28,286


29,782


30,108


26,338


26,817

Investment banking and advisory fees

62,398


78,744


(21)


13,956


24,546


23,896


24,957


30,500

Money transfer income

68,049


77,408


(12)


23,441


23,920


20,688


24,101


24,881

Corporate and correspondent investment sales

40,901


26,249


56


12,490


16,355


12,056


11,803


5,145

Asset management fees

32,902


30,162


9


11,143


10,989


10,770


10,303


10,336

Mortgage banking

23,078


9,636


139


6,717


7,964


8,397


4,720


3,450

Bank owned life insurance

13,187


12,711


4


4,597


4,375


4,215


4,397


4,322

Other

154,600


167,198


(8)


53,285


49,459


51,856


101,100


61,060


786,303


745,773


5


258,459


270,019


257,825


297,169


254,761

Investment securities gains, net


3,033







3,033

Total noninterest income

$   786,303


$   748,806


5


$       258,459


$270,019


$257,825


$      297,169


$       257,794

















NONINTEREST EXPENSE
















Salaries, benefits and commissions

$   868,971


$   835,825


4


$       292,679


$286,852


$289,440


$      296,146


$       279,384

Equipment

190,759


184,691


3


63,739


63,660


63,360


63,200


60,656

Professional services

197,625


187,422


5


68,403


68,577


60,645


76,068


64,775

Net occupancy

125,607


125,568



42,514


42,671


40,422


41,125


42,227

Money transfer expense

46,143


50,069


(8)


16,120


16,302


13,721


15,721


15,938

Marketing

32,982


44,270


(25)


12,381


11,814


8,787


7,950


14,996

Communications

21,341


15,584


37


10,827


5,251


5,263


4,970


5,084

Other

264,540


252,330


5


98,847


84,418


81,275


110,648


90,902

Total noninterest expense

$1,747,968


$1,695,759


3


$       605,510


$579,545


$562,913


$      615,828


$       573,962


NM = Not meaningful

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)










Three Months Ended September 30,


Nine Months Ended September 30,


2018


2017


2018


2017

NON-GAAP RECONCILIATION
















Computation of Operating Income:








Net interest income (GAAP)

$      658,286


$      589,361


$     1,924,390


$     1,726,622

Plus: noninterest income (GAAP)

258,459


257,794


786,303


748,806

Less: noninterest expense (GAAP)

605,510


573,962


1,747,968


1,695,759

Operating income (non-GAAP)

$      311,235


$      273,193


$        962,725


$        779,669

























Computation of Average Tangible Equity:








Total stockholder's equity (average) (GAAP)

$ 13,334,169


$  13,130,915


$   13,215,032


$   12,997,116

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

5,040,018


5,041,385


5,040,016


5,045,419

Average tangible equity (non-GAAP) [B]

$   8,294,151


$   8,089,530


$     8,175,016


$     7,951,697

Net income (GAAP) [A]

$      174,515


$      130,451


$        567,603


$        408,714

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

8.35 %


6.40 %


9.28 %


6.87 %

 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)


















At or Quarter Ended September 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

$                       38,512


$                       16,416


$                 9,609


$   290,239


$                 522


$     26,300,781


$ 26,656,079


$              13,975

Real estate – construction

3,252


5,278


532


12,882


121


2,096,427


2,118,492


(23)

Commercial real estate –  mortgage

31,792


18,349


502


104,976


3,753


12,237,632


12,397,004


2,035

Residential real estate – mortgage

87,426


30,373


3,697


159,721


59,082


13,062,173


13,402,472


2,090

Equity lines of credit

13,556


4,298


1,186


35,125



2,655,566


2,709,731


(19)

Equity loans

2,082


1,042


241


10,378


28,383


266,712


308,838


45

Credit card

8,601


6,449


13,157




735,479


763,686


9,686

Consumer – direct

30,153


14,455


8,988


3,184


1,189


2,364,239


2,422,208


28,765

Consumer – indirect

86,310


23,587


6,853


11,654



3,550,365


3,678,769


23,017

Covered loans








Total loans

$                     301,684


$                     120,247


$              44,765


$   628,159


$            93,050


$     63,269,374


$ 64,457,279


$              79,571

Loans held for sale

$                                —


$                                —


$                       —


$              —


$                    —


$             73,569


$         73,569


$                      —


















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


$                      —

















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


$                      —

 

BBVA COMPASS BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)












2018


2017


September 30


June 30


March 31


December 31


September 30

Assets:










Cash and due from banks

$       1,122,747


$    1,138,034


$    1,098,345


$      1,313,022


$       1,145,745

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

2,404,164


2,438,585


2,424,987


2,769,804


2,588,913

Cash and cash equivalents

3,526,911


3,576,619


3,523,332


4,082,826


3,734,658

Trading account assets

216,749


277,694


216,465


220,496


572,104

Debt securities available for sale

11,134,860


11,293,724


11,434,152


12,219,632


11,820,442

Debt securities held to maturity 

2,490,568


2,198,186


1,975,729


1,046,093


1,077,372

Loans held for sale

73,569


52,041


76,401


67,110


77,783

Loans

64,457,279


63,290,977


62,207,861


61,623,768


60,315,204

Allowance for loan losses

(875,393)


(860,000)


(832,071)


(842,760)


(849,119)

Net loans

63,581,886


62,430,977


61,375,790


60,781,008


59,466,085

Premises and equipment, net

1,155,795


1,170,798


1,189,253


1,214,874


1,226,747

Bank owned life insurance

731,527


728,703


724,600


722,596


720,693

Goodwill

4,983,296


4,983,296


4,983,296


4,983,296


4,983,296

Other assets

2,152,495


2,042,624


2,109,484


1,982,648


2,004,480

Total assets

$     90,047,656


$ 88,754,662


$ 87,608,502


$   87,320,579


$     85,683,660

Liabilities:










Deposits:










Noninterest bearing

$     20,968,391


$ 21,433,218


$ 21,792,498


$   21,630,694


$     21,094,235

Interest bearing

49,409,666


48,714,490


48,147,914


47,625,619


46,119,332

Total deposits

70,378,057


70,147,708


69,940,412


69,256,313


67,213,567

FHLB and other borrowings

5,045,302


4,157,284


3,322,940


3,959,930


3,956,041

Federal funds purchased and securities sold under agreements to repurchase

78,004


185,511


5,933


19,591


44,761

Other short-term borrowings

68,714


81,547


29,999


17,996


327,539

Accrued expenses and other liabilities

1,135,092


991,968


1,165,079


1,053,439


1,025,849

Total liabilities

76,705,169


75,564,018


74,464,363


74,307,269


72,567,757

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

14,695,197


14,699,773


14,814,744


14,818,608


14,912,412

Retained deficit

(1,302,525)


(1,476,614)


(1,660,417)


(1,868,659)


(1,920,184)

Accumulated other comprehensive loss

(311,422)


(293,323)


(271,431)


(197,405)


(137,583)

Total BBVA Compass Bancshares, Inc. shareholder's equity

13,312,955


13,161,541


13,114,601


12,984,249


13,086,350

Noncontrolling interests

29,532


29,103


29,538


29,061


29,553

Total shareholder's equity

13,342,487


13,190,644


13,144,139


13,013,310


13,115,903

Total liabilities and shareholder's equity

$     90,047,656


$ 88,754,662


$ 87,608,502


$   87,320,579


$     85,683,660

 

BBVA COMPASS BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)












Three Months Ended


2018


2017


September 30


June 30


March 31


December 31


September 30

Interest income:










Interest and fees on loans

$          751,470


$    711,006


$    663,935


$        641,322


$          623,884

Interest on debt securities available for sale

53,201


53,792


56,602


56,883


50,599

Interest on debt securities held to maturity

16,110


13,062


12,426


6,555


6,994

Interest on trading account assets

833


924


750


1,005


6,247

Interest on other earning assets

17,449


14,916


11,875


10,843


14,888

Total interest income

839,063


793,700


745,588


716,608


702,612

Interest expense:










Interest on deposits

139,898


116,323


97,347


88,016


75,083

Interest on FHLB and other borrowings

37,131


31,912


24,756


22,392


29,904

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

3,169


1,399


536


464


4,623

Interest on other short-term borrowings

579


567


344


2,191


3,641

Total interest expense

180,777


150,201


122,983


113,063


113,251

Net interest income

658,286


643,499


622,605


603,545


589,361

Provision for loan losses

94,964


91,280


57,029


58,835


103,434

Net interest income after provision for loan losses

563,322


552,219


565,576


544,710


485,927

Noninterest income:










Service charges on deposit accounts

60,325


58,581


56,161


56,070


55,953

Card and merchant processing fees

44,219


44,048


39,678


33,380


32,297

Retail investment sales

28,286


29,782


30,108


26,338


26,817

Investment banking and advisory fees

13,956


24,546


23,896


24,957


30,500

Money transfer income

23,441


23,920


20,688


24,101


24,881

Asset management fees

11,143


10,989


10,770


10,303


10,336

Corporate and correspondent investment sales

12,490


16,355


12,056


11,803


5,145

Mortgage banking

6,717


7,964


8,397


4,720


3,450

Bank owned life insurance

4,597


4,375


4,215


4,397


4,322

Investment securities gains, net





3,033

Other

53,285


49,459


51,856


101,100


61,060

Total noninterest income

258,459


270,019


257,825


297,169


257,794

Noninterest expense:










Salaries, benefits and commissions

292,679


286,852


289,440


296,146


279,384

Equipment

63,739


63,660


63,360


63,200


60,656

Professional services

68,403


68,577


60,645


76,068


64,775

Net occupancy

42,514


42,671


40,422


41,125


42,227

Money transfer expense

16,120


16,302


13,721


15,721


15,938

Marketing

12,381


11,814


8,787


7,950


14,996

Communications

10,827


5,251


5,263


4,970


5,084

Other

98,847


84,418


81,275


110,648


90,902

Total noninterest expense

605,510


579,545


562,913


615,828


573,962

Net income before income tax expense

216,271


242,693


260,488


226,051


169,759

Income tax expense

41,756


58,295


51,798


173,979


39,308

Net income

174,515


184,398


208,690


52,072


130,451

Less: net income attributable to noncontrolling interests

426


595


461


547


584

Net income attributable to BBVA Compass Bancshares, Inc.

$          174,089


$    183,803


$    208,229


$          51,525


$          129,867

 

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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