BBVA Compass reports fourth quarter results

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February 1, 2019 9:32 AM UTC

HOUSTON, Feb. 1, 2019 /PRNewswire/ --

  • Fourth quarter net income of $196 million brings full-year total to a record $763 million
    • Net income up 13 percent1 from a year ago and 31 percent1 on a year-to-date basis after adjusting for a $121 million non-cash charge in the fourth quarter of 2017 related to the revaluation of net deferred tax assets mandated by the Tax Cuts and Jobs Act.
    • Return on average assets and return on average tangible equity2 for the quarter were 0.85 percent and 9.27 percent, respectively
  • Total revenue reaches all-time high; up 6 percent from prior year levels and 9 percent on a year-to-date basis
    • Net interest income increases $79 million or 13 percent from year ago levels and $276 million or 12 percent on a year-to-date basis
    • Percent net interest margin (FTE) up 15 basis points from year ago quarter, 10 basis points from third quarter 2018 levels and 20 basis points for the full-year of 2018
  • Noninterest expense growth well contained at 2 percent in 2018, including a 2 percent decrease in the fourth quarter of 2018
  • Revenue growth coupled with strong focus on expense management results in record operating income2 of $351 million in the quarter and $1.3 billion for the year, both represent a 23 percent increase
  • Balance sheet activity supported by solid loan and deposit generation
    • Total loans rise to $65.3 billion, up 6 percent year-over-year
    • Newly funded customer loans of $5.6 billion in the quarter bring full-year total to a record $21.7 billion in 2018, up 18 percent from the prior year
    • Total deposits of $72.2 billion, up 4 percent from a year ago levels
  • Credit quality metrics remain sound; allowance to loan ratio steady at 1.36 percent
    • Nonperforming loan ratio ended the year at 1.24 percent
    • Net charge-off ratio for 2018 at 51 basis points compared to 47 basis points in 2017
    • Provision expense for the year exceeded net charge-offs by more than $42 million

BBVA Compass corporate logo (PRNewsFoto/BBVA Compass)

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $196 million for the fourth quarter of 2018, a 276 percent increase from the $52 million earned during the fourth quarter of 2017. Included in fourth quarter 2017 results is income tax expense of approximately $121 million related to the revaluation of net deferred tax assets at the lower statutory tax rate mandated by the Tax Cuts and Jobs Act (non-cash charge). Excluding the impact of this item, the year-over-year increase in net income for the fourth quarter of 2018 compared to adjusted net income1 of $173 million for the fourth quarter of 2017 was 13 percent.

Net income for the full-year 2018 totaled $763 million, an increase of 66 percent from the $461 million earned during the full-year of 2017. Excluding the impact of the non-cash charge, the year-over-year increase in net income for the full-year of 2018 compared to adjusted net income1 of $582 million for the full-year of 2017 was 31 percent. The following table summarizes year-over-year comparisons on a reported and adjusted basis for certain key performance measures.

Impact of Tax Cuts and Jobs Act

Dollars in thousands (unaudited)

Full-Year

4Q18

4Q17

% Change

2018

2017

% Change

NET INCOME:

   As reported

$  195,826

$  52,072

276

%

$  763,429

$  460,786

66

%

   Adjusted1

195,826

173,315

13

763,429

582,029

31

ROA:

   As reported

0.85

%

0.24

%

0.85

%

0.53

%

   Adjusted1

0.85

0.79

0.85

0.67

ROTE:1

   As reported

9.27

%

2.55

%

9.28

%

5.77

%

   Adjusted

9.27

8.48

9.28

7.28

"In 2018 BBVA Compass delivered record performance in many key financial metrics including new loan originations, total revenue, operating income and net income," said Javier Rodríguez Soler, incoming president and CEO of BBVA Compass. "Equally important, this performance was accomplished while making great strides in our digital transformation efforts designed to drive new industry-leading product offerings, increase our digital sales capabilities and improve the customer experience. As we enter 2019 against a backdrop of economic uncertainty, we are confident that our vision and the culture we have instilled in our team members that empowers them to move our transformation forward will serve us well during various business cycles."

Total revenue for the quarter was a record $953 million, an increase of 6 percent from fourth quarter 2017 levels. For the full-year 2018, total revenue was $3.7 billion (also a record), an increase of 9 percent from $3.4 billion in 2017. Fueling the growth was net interest income which totaled $682 million, up 13 percent  from the fourth quarter of 2017 and 15 percent (annualized) on a linked quarter basis. The percent net interest margin in the fourth quarter was 3.37 percent, up 15 basis points from the fourth quarter of 2017 and 10 basis points from the third quarter of 2018. On a full-year basis, the percent net interest margin was 3.30 percent in 2018, an increase of 20 basis points from the comparable period in 2017.

Noninterest income for the quarter totaled $271 million, down 9 percent compared to the $297 million recorded in the fourth quarter of 2017. For the full-year of 2018, noninterest income totaled $1.1 billion, up 1 percent from prior year levels as several of our major fee-based businesses recorded positive performances. Particularly noteworthy were card and merchant processing fees (+37 percent), corporate and correspondent investment sales (+36 percent) and mortgage banking income (+87 percent). Conversely, weaker demand and economic conditions impacted investment banking and advisory fees (-25 percent) and money transfer income (-10 percent). Other income also recorded a decline in the quarter and for the year due in part to a decrease in syndication fees and other miscellaneous fees coupled with certain interchange fees  being reclassified to card and merchant processing fees in 2018.

Overall expense growth was well contained as noninterest expense totaled $602 million, down 2 percent compared to the prior year quarter, and for the full-year of 2018 was up 2 percent. Revenue growth combined with the strong focus on expense management resulted in record operating income2 of $351 million in the quarter and $1.3 billion for the year, both represent a 23 percent increase over the respective prior year period.

Total loans at the end of the fourth quarter of 2018 were $65.3 billion, an increase of 6 percent from the $61.7 billion at the end of the fourth quarter of 2017.

"Loan production was brisk throughout our network as we funded a record $21.7 billion in customer loans during the year, an 18 percent increase over the prior year," said Rodríguez Soler. "This enabled us to offset increased payoff activity as total commercial loans increased 5 percent in the aggregate, led by an 11 percent increase in commercial mortgages, while double-digit increases in credit cards, direct consumer lending and indirect auto lending resulted in an 8 percent increase in our consumer loan portfolio."

Total deposits at the end of the fourth quarter of 2018 were $72.2 billion, a 4 percent increase from the $69.3 billion at the end of the fourth quarter of 2017. The loan to deposit ratio ended the quarter at 90 percent, up slightly from 89 percent a year ago.

"The overall health of our loan portfolio remains strong," noted Rodríguez Soler. "And we are steadfast in our commitment to maintaining sound underwriting standards and reserve levels that adequately reflect the make-up of our loan portfolio, as well as economic conditions."

Nonperforming loans as a percentage of total loans ended the year at 1.24 percent compared to 1.04 percent at the end of the third quarter of 2018 and 1.16 percent at the end of 2017. The uptick in nonperforming loans during the quarter was primarily due to three, unrelated commercial credits being placed on nonaccrual status. Net charge-offs as a percentage of average loans were 51 basis points for the full-year of 2018 compared to 47 basis points for the full-year of 2017. Provision expense for the year exceeded net charge-offs by more than $42 million while the allowance for loan losses as a percentage of total loans ended the year at 1.36 percent, relatively unchanged from prior year levels. Equally important, the coverage ratio of nonperforming loans at the end of the fourth quarter of 2018 was 109 percent compared to 117 percent at the end of the fourth quarter of 2017.

Total shareholder's equity at the end of the fourth quarter totaled $13.5 billion, a 4 percent increase from $13.0 billion at the end of the fourth quarter of 2017. The CET1 ratio stood at 12.00 percent3 at the end of the fourth quarter of 2018, up 20 basis points from the end of the fourth quarter of 2017. All of BBVA Compass' regulatory capital ratios3 continue to significantly exceed the requirements under "well-capitalized" guidelines. 

___________

1 Adjusted net income, adjusted return on average assets and adjusted return on average tangible equity exclude the impact of the revaluation of net deferred tax assets mandated by the Tax Cuts and Jobs Act. These measures are non-GAAP financial measures 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 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.

3 Regulatory capital ratios at December 31, 2018, are estimated.

FTE – fully taxable equivalent

About BBVA CompassBBVA Compass is a Sunbelt-based financial institution that operates 644 branches, including 331 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 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018. 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 GroupBBVA (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 [email protected].

Forward-Looking StatementsCertain 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 December 31,

%

Years Ended December 31,

%

2018

2017

Change

2018

2017

Change

EARNINGS SUMMARY

Net interest income

$     682,188

$     603,545

13

$  2,606,578

$  2,330,167

12

Noninterest income [a]

270,606

297,169

(9)

1,056,909

1,042,942

1

Total revenue [a]

952,794

900,714

6

3,663,487

3,373,109

9

Investment securities gain, net

—

—

—

—

3,033

(100)

Provision for loan losses

122,147

58,835

108

365,420

287,693

27

Noninterest expense

601,992

615,828

(2)

2,349,960

2,311,587

2

Pretax income

228,655

226,051

1

948,107

776,862

22

Income tax expense

32,829

173,979

(81)

184,678

316,076

(42)

Net income

$     195,826

$       52,072

276

$     763,429

$     460,786

66

Adjusted net income [b]

$     195,826

$     173,315

13

$     763,429

$     582,029

31

SELECTED RATIOS

Return on average assets

0.85 %

0.24 %

0.85 %

0.53 %

Return on average assets- adjusted [b]

0.85

0.79

0.85

0.67

Return on average tangible equity [b]

9.27

2.55

9.28

5.77

Return on average tangible equity- adjusted [b]

9.27

8.48

9.28

7.28

Average common equity to average assets

14.41

14.82

14.52

14.63

Average loans to average total deposits

91.88

89.96

90.89

90.68

Common equity tier 1 capital (CET1) [c]

12.00

11.80

12.00

11.80

Tier I capital ratio [c]

12.33

12.15

12.33

12.15

Total capital ratio [c]

14.49

14.36

14.49

14.36

Leverage ratio [c]

10.03

9.98

10.03

9.98

Average for Three Months

Average for Year

Ending Balance

Ended December 31,

%

Ended December 31,

%

December 31,

%

2018

2017

Change

2018

2017

Change

2018

2017

Change

BALANCE SHEET HIGHLIGHTS

Total loans

$  65,287,838

$  61,170,130

7

$  63,761,869

$  60,419,711

6

$  65,255,320

$  61,690,878

6

Total debt securities

13,614,503

13,104,177

4

13,406,533

12,776,615

5

13,866,829

13,265,725

5

Earning assets

81,661,049

77,204,217

6

80,237,817

77,745,063

3

81,831,522

78,359,040

4

Total assets

91,337,365

86,990,170

5

89,576,037

87,358,298

3

90,947,174

87,320,579

4

Noninterest bearing demand deposits

20,825,633

21,389,000

(3)

21,167,441

21,039,822

1

20,183,876

21,630,694

(7)

Interest bearing transaction accounts

34,783,054

33,059,701

5

34,197,814

32,783,151

4

36,277,316

33,743,887

8

Total transaction accounts

55,608,687

54,448,701

2

55,365,255

53,822,973

3

56,461,192

55,374,581

2

Total deposits

71,057,556

67,994,615

5

70,149,887

66,627,368

5

72,167,987

69,256,313

4

Shareholder's equity

13,420,931

13,150,577

2

13,266,930

13,035,797

2

13,512,529

13,013,310

4

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

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

[c]  Current period regulatory capital ratios are estimated.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

2018

2017

December 31

September 30

June 30

March 31

December 31

NONPERFORMING ASSETS

Nonaccrual loans [a]

$      751,486

$       628,159

$662,991

$647,210

$      658,865

Loans 90 days or more past due [b]

59,549

44,765

39,143

45,904

58,378

TDRs 90 days or more past due

411

444

491

700

751

Total nonperforming loans [a]

811,446

673,368

702,625

693,814

717,994

Other real estate owned, net (OREO)

16,869

18,706

16,499

16,147

17,278

Other repossessed assets

12,031

9,875

13,117

11,278

13,473

Total nonperforming assets

$      840,346

$       701,949

$732,241

$721,239

$     748,745

TDRs accruing and past due less than 90 days

$      109,190

$         92,606

$  99,251

$101,285

$      100,492

Total nonperforming loans as a % of loans

1.24 %

1.04 %

1.11 %

1.11 %

1.16 %

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

1.29

1.09

1.16

1.16

1.21

Three Months Ended

2018

2017

December 31

September 30

June 30

March 31

December 31

ALLOWANCE FOR LOAN LOSSES

Balance at beginning of period

$      875,393

$       860,000

$832,071

$842,760

$      849,119

Net charge-offs (NCO)

112,298

79,571

63,351

67,718

65,194

Provision for loan losses

122,147

94,964

91,280

57,029

58,835

Balance at end of period

$      885,242

$       875,393

$860,000

$832,071

$      842,760

Allowance for loan losses as a % of total loans

1.36 %

1.36 %

1.36 %

1.34 %

1.37 %

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

109.09

130.00

122.40

119.93

117.38

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

105.34

124.71

117.45

115.37

112.56

Annualized as a % of average loans:

NCO - QTD

0.68

0.49

0.40

0.44

0.42

NCO - YTD

0.51

0.45

0.42

0.44

0.47

[a]  Includes loans held for sale.

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

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Three Months Ended December 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

$65,287,838

$799,829

4.86 %

$61,170,130

$661,873

4.29 %

Debt securities available for sale [a]

11,186,986

59,029

2.09

12,192,516

56,890

1.85

Debt securities held to maturity

2,740,315

21,376

3.09

1,056,906

9,508

3.57

Other earning assets [b]

2,758,708

20,044

2.88

2,929,910

11,849

1.60

Total earning assets [a]

81,973,847

900,278

4.36

77,349,462

740,120

3.80

Allowance for loan losses

(886,426)

(853,546)

Unrealized loss on debt securities available for sale

(312,798)

(145,245)

Other assets

10,562,742

10,639,499

Total assets

$91,337,365

$86,990,170

Liabilities and Shareholder's Equity

Interest bearing liabilities:

Interest bearing demand deposits

$  7,963,379

15,349

0.76

$  7,843,974

7,995

0.40

Savings and money market accounts

26,819,675

72,530

1.07

25,215,727

34,463

0.54

Certificates and other time deposits

15,448,869

75,843

1.95

13,545,914

45,558

1.33

Total interest bearing deposits

50,231,923

163,722

1.29

46,605,615

88,016

0.75

FHLB and other borrowings

4,664,076

36,573

3.11

3,551,958

22,392

2.50

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

138,953

3,849

10.99

40,666

464

4.53

Other short-term borrowings

65,994

591

3.55

114,140

2,191

7.62

Total interest bearing liabilities

55,100,946

204,735

1.47

50,312,379

113,063

0.89

Noninterest bearing deposits

20,825,633

21,389,000

Other noninterest bearing liabilities

1,989,855

2,138,214

Total liabilities

77,916,434

73,839,593

Shareholder's equity

13,420,931

13,150,577

Total liabilities and shareholder's equity

$91,337,365

$86,990,170

Net interest income/ net interest spread

695,543

2.89 %

627,057

2.91 %

Net yield on earning assets

3.37 %

3.22 %

Total taxable equivalent adjustment

13,355

23,512

Net interest income

$682,188

$603,545

[a] Excludes adjustment for market valuation.

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Years Ended December 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

$63,761,869

$2,960,170

4.64 %

$60,419,711

$2,521,613

4.17 %

Debt securities available for sale [a]

11,390,313

222,627

1.95

11,769,440

212,730

1.81

Debt securities held to maturity

2,298,737

67,347

2.93

1,120,472

39,128

3.49

Other earning assets [b]

3,069,415

66,792

2.18

4,548,737

79,712

1.75

Total earning assets [a]

80,520,334

3,316,936

4.12

77,858,360

2,853,183

3.66

Allowance for loan losses

(859,475)

(840,359)

Unrealized loss on debt securities available for sale

(282,517)

(113,297)

Other assets

10,197,695

10,453,594

Total assets

$89,576,037

$87,358,298

Liabilities and Shareholder's Equity

Interest bearing liabilities:

Interest bearing demand deposits

$  7,950,561

48,599

0.61

$  7,858,504

27,206

0.35

Savings and money market accounts

26,247,253

224,009

0.85

24,924,647

107,106

0.43

Certificates and other time deposits

14,784,632

244,682

1.65

12,804,395

165,005

1.29

Total interest bearing deposits

48,982,446

517,290

1.06

45,587,546

299,317

0.66

FHLB and other borrowings

4,095,054

130,372

3.18

3,973,465

93,814

2.36

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

109,852

8,953

8.15

58,624

16,926

28.87

Other short-term borrowings

68,423

2,081

3.04

1,703,738

26,424

1.55

Total interest bearing liabilities

53,255,775

658,696

1.24

51,323,373

436,481

0.85

Noninterest bearing deposits

21,167,441

21,039,822

Other noninterest bearing liabilities

1,885,891

1,959,306

Total liabilities

76,309,107

74,322,501

Shareholder's equity

13,266,930

13,035,797

Total liabilities and shareholder's equity

$89,576,037

$87,358,298

Net interest income/ net interest spread

2,658,240

2.88 %

2,416,702

2.81 %

Net yield on earning assets

3.30 %

3.10 %

Total taxable equivalent adjustment

51,662

86,535

Net interest income

$2,606,578

$2,330,167

[a] Excludes adjustment for market valuation.

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Year Ended

Three Months Ended

December 31,

%

2018

2017

2018

2017

Change

December 31

September 30

June 30

March 31

December 31

NONINTEREST INCOME

Service charges on deposit accounts

$   236,673

$   222,110

7

$        61,606

$         60,325

$  58,581

$  56,161

$        56,070

Card and merchant processing fees

174,927

128,129

37

46,982

44,219

44,048

39,678

33,380

Retail investment sales

112,652

109,214

3

24,476

28,286

29,782

30,108

26,338

Investment banking and advisory fees

77,684

103,701

(25)

15,286

13,956

24,546

23,896

24,957

Money transfer income

91,681

101,509

(10)

23,632

23,441

23,920

20,688

24,101

Asset management fees

43,811

40,465

8

10,909

11,143

10,989

10,770

10,303

Corporate and correspondent investment sales

51,675

38,052

36

10,774

12,490

16,355

12,056

11,803

Mortgage banking income

26,833

14,356

87

3,755

6,717

7,964

8,397

4,720

Bank owned life insurance

17,822

17,108

4

4,635

4,597

4,375

4,215

4,397

Other

223,151

268,298

(17)

68,551

53,285

49,459

51,856

101,100

1,056,909

1,042,942

1

270,606

258,459

270,019

257,825

297,169

Investment securities gains, net

—

3,033

(100)

—

—

—

—

—

Total noninterest income

$1,056,909

$1,045,975

1

$      270,606

$       258,459

$270,019

$257,825

$      297,169

NONINTEREST EXPENSE

Salaries, benefits and commissions

$1,154,791

$1,131,971

2

$      285,820

$       292,679

$286,852

$289,440

$      296,146

Professional services

277,154

263,490

5

79,529

68,403

68,577

60,645

76,068

Equipment

257,565

247,891

4

66,806

63,739

63,660

63,360

63,200

Net occupancy

166,768

166,693

—

41,161

42,514

42,671

40,422

41,125

Money transfer expense

62,138

65,790

(6)

15,995

16,120

16,302

13,721

15,721

Marketing

48,866

52,220

(6)

15,884

12,381

11,814

8,787

7,950

Communications

30,582

20,554

49

9,241

10,827

5,251

5,263

4,970

Other

352,096

362,978

(3)

87,556

98,847

84,418

81,275

110,648

Total noninterest expense

$2,349,960

$2,311,587

2

$      601,992

$       605,510

$579,545

$562,913

$      615,828

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Three Months Ended December 31,

Years Ended December 31,

2018

2017

2018

2017

NON-GAAP RECONCILIATION

Computation of Operating Income:

Net interest income (GAAP)

$     682,188

$     603,545

$  2,606,578

$  2,330,167

Plus: noninterest income (GAAP)

270,606

297,169

1,056,909

1,045,975

Less: noninterest expense (GAAP)

601,992

615,828

2,349,960

2,311,587

Plus: goodwill impairment (GAAP)

—

—

—

—

Operating income (non-GAAP)

$     350,802

$     284,886

$  1,313,527

$  1,064,555

Computation of Average Tangible Equity:

Total stockholder's equity (average) (GAAP)

$13,420,931

$13,150,577

$13,266,930

$13,035,797

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

5,039,847

5,039,014

5,039,974

5,043,805

Average tangible equity (non-GAAP) [B]

$  8,381,084

$  8,111,563

$  8,226,956

$  7,991,992

Net income (GAAP) [A]

$     195,826

$       52,072

$     763,429

$     460,786

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

9.27 %

2.55 %

9.28 %

5.77 %

Computation of Adjusted Net Income, Return on Average Assets and Return on Average Tangible Equity:

Net income (GAAP)

$     195,826

$       52,072

$     763,429

$     460,786

Plus: Revaluation of net deferred tax assets (GAAP)

—

121,243

—

121,243

Adjusted net income (non-GAAP) [C]

$     195,826

$     173,315

$     763,429

$     582,029

Average assets (GAAP) [D]

$91,337,365

$86,990,170

$89,576,037

$87,358,298

Return on average assets - adjusted (non-GAAP) ([C]/[D], annualized)

0.85 %

0.79 %

0.85 %

0.67 %

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

9.27

8.48

9.28

7.28

 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

At or Quarter Ended December 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

$              17,257

$                       11,784

$                 8,114

$   400,389

$            18,926

$     26,105,849

$ 26,562,319

$              38,786

Real estate – construction

218

8,849

544

2,851

116

1,984,959

1,997,537

(24)

Commercial real estate –  mortgage

11,678

3,375

2,420

110,144

3,661

12,885,518

13,016,796

470

Residential real estate – mortgage

80,366

29,852

5,927

167,099

57,446

13,081,466

13,422,156

247

Equity lines of credit

14,007

5,109

2,226

37,702

—

2,688,173

2,747,217

(656)

Equity loans

3,471

843

180

10,939

26,768

256,413

298,614

(35)

Credit card

9,516

7,323

17,011

—

—

784,458

818,308

11,231

Consumer – direct

37,336

19,543

13,336

4,528

2,684

2,476,161

2,553,588

38,508

Consumer – indirect

100,434

32,172

9,791

17,834

—

3,609,788

3,770,019

23,771

Total loans

$            274,283

$                     118,850

$              59,549

$   751,486

$         109,601

$     63,872,785

$ 65,186,554

$           112,298

Loans held for sale

$                       —

$                                —

$                       —

$              —

$                    —

$             68,766

$         68,766

$                      —

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

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

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

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

$                      —

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

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.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)

2018

2017

December 31

September 30

June 30

March 31

December 31

Assets:

Cash and due from banks

$      1,217,319

$      1,122,747

$      1,138,034

$      1,098,345

$      1,313,022

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

2,115,307

2,404,164

2,438,585

2,424,987

2,769,804

Cash and cash equivalents

3,332,626

3,526,911

3,576,619

3,523,332

4,082,826

Trading account assets

237,656

216,749

277,694

216,465

220,496

Debt securities available for sale

10,981,216

11,134,860

11,293,724

11,434,152

12,219,632

Debt securities held to maturity

2,885,613

2,490,568

2,198,186

1,975,729

1,046,093

Loans held for sale

68,766

73,569

52,041

76,401

67,110

Loans

65,186,554

64,457,279

63,290,977

62,207,861

61,623,768

Allowance for loan losses

(885,242)

(875,393)

(860,000)

(832,071)

(842,760)

Net loans

64,301,312

63,581,886

62,430,977

61,375,790

60,781,008

Premises and equipment, net

1,152,958

1,155,795

1,170,798

1,189,253

1,214,874

Bank owned life insurance

736,171

731,527

728,703

724,600

722,596

Goodwill

4,983,296

4,983,296

4,983,296

4,983,296

4,983,296

Other assets

2,267,560

2,152,495

2,042,624

2,109,484

1,982,648

Total assets

$    90,947,174

$    90,047,656

$    88,754,662

$    87,608,502

$    87,320,579

Liabilities:

Deposits:

Noninterest bearing

$    20,183,876

$    20,968,391

$    21,433,218

$    21,792,498

$    21,630,694

Interest bearing

51,984,111

49,409,666

48,714,490

48,147,914

47,625,619

Total deposits

72,167,987

70,378,057

70,147,708

69,940,412

69,256,313

FHLB and other borrowings

3,987,590

5,045,302

4,157,284

3,322,940

3,959,930

Federal funds purchased and securities sold under agreements to repurchase

102,275

78,004

185,511

5,933

19,591

Other short-term borrowings

—

68,714

81,547

29,999

17,996

Accrued expenses and other liabilities

1,176,793

1,135,092

991,968

1,165,079

1,053,439

Total liabilities

77,434,645

76,705,169

75,564,018

74,464,363

74,307,269

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

14,545,849

14,695,197

14,699,773

14,814,744

14,818,608

Retained deficit

(1,107,198)

(1,302,525)

(1,476,614)

(1,660,417)

(1,868,659)

Accumulated other comprehensive loss

(186,848)

(311,422)

(293,323)

(271,431)

(197,405)

Total BBVA Compass Bancshares, Inc. shareholder's equity

13,483,508

13,312,955

13,161,541

13,114,601

12,984,249

Noncontrolling interests

29,021

29,532

29,103

29,538

29,061

Total shareholder's equity

13,512,529

13,342,487

13,190,644

13,144,139

13,013,310

Total liabilities and shareholder's equity

$    90,947,174

$    90,047,656

$    88,754,662

$    87,608,502

$    87,320,579

 

BBVA COMPASS BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)

Three Months Ended

2018

2017

December 31

September 30

June 30

March 31

December 31

Interest income:

Interest and fees on loans

$      787,858

$       751,470

$    711,006

$    663,935

$      641,322

Interest on debt securities available for sale

59,028

53,201

53,792

56,602

56,883

Interest on debt securities held to maturity

19,993

16,110

13,062

12,426

6,555

Interest on trading account assets

704

833

924

750

1,005

Interest and dividends on other earning assets

19,340

17,449

14,916

11,875

10,843

Total interest income

886,923

839,063

793,700

745,588

716,608

Interest expense:

Interest on deposits

163,722

139,898

116,323

97,347

88,016

Interest on FHLB and other borrowings

36,573

37,131

31,912

24,756

22,392

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

3,849

3,169

1,399

536

464

Interest on other short-term borrowings

591

579

567

344

2,191

Total interest expense

204,735

180,777

150,201

122,983

113,063

Net interest income

682,188

658,286

643,499

622,605

603,545

Provision for loan losses

122,147

94,964

91,280

57,029

58,835

Net interest income after provision for loan losses

560,041

563,322

552,219

565,576

544,710

Noninterest income:

Service charges on deposit accounts

61,606

60,325

58,581

56,161

56,070

Card and merchant processing fees

46,982

44,219

44,048

39,678

33,380

Retail investment sales

24,476

28,286

29,782

30,108

26,338

Investment banking and advisory fees

15,286

13,956

24,546

23,896

24,957

Money transfer income

23,632

23,441

23,920

20,688

24,101

Asset management fees

10,909

11,143

10,989

10,770

10,303

Corporate and correspondent investment sales

10,774

12,490

16,355

12,056

11,803

Mortgage banking income

3,755

6,717

7,964

8,397

4,720

Bank owned life insurance

4,635

4,597

4,375

4,215

4,397

Other

68,551

53,285

49,459

51,856

101,100

Total noninterest income

270,606

258,459

270,019

257,825

297,169

Noninterest expense:

Salaries, benefits and commissions

285,820

292,679

286,852

289,440

296,146

Professional services

79,529

68,403

68,577

60,645

76,068

Equipment

66,806

63,739

63,660

63,360

63,200

Net occupancy

41,161

42,514

42,671

40,422

41,125

Money transfer expense

15,995

16,120

16,302

13,721

15,721

Marketing

15,884

12,381

11,814

8,787

7,950

Communications

9,241

10,827

5,251

5,263

4,970

Other

87,556

98,847

84,418

81,275

110,648

Total noninterest expense

601,992

605,510

579,545

562,913

615,828

Net income before income tax expense

228,655

216,271

242,693

260,488

226,051

Income tax expense

32,829

41,756

58,295

51,798

173,979

Net income

195,826

174,515

184,398

208,690

52,072

Less: net income attributable to noncontrolling interests

499

426

595

461

547

Net income attributable to BBVA Compass Bancshares, Inc.

$      195,327

$       174,089

$    183,803

$    208,229

$        51,525

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/bbva-compass-reports-fourth-quarter-results-300788170.html

SOURCE BBVA Compass


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