BBVA Compass reports record quarterly earnings

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July 27, 2017 12:30 PM UTC

HOUSTON, July 27, 2017 /PRNewswire/ --

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

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

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

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

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

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

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

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

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

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

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

__________________________1 Average tangible equity is a non-GAAP financial measure that we believe aids in understanding certain areas of our performance. The calculation of this measure is included on the page titled Non-GAAP Reconciliation.

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

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

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

Forward-Looking 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 March 1, 2017, as updated by our subsequent SEC filings.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)

Three Months Ended June 30,

%

Six Months Ended June 30,

%

2017

2016

 Change 

2017

2016

 Change 

EARNINGS SUMMARY

Net interest income

$       585,828

$       504,238

16

$    1,137,261

$    1,021,120

11

Noninterest income [a]

246,325

256,562

(4)

491,012

501,414

(2)

Total revenue [a]

832,153

760,800

9

1,628,273

1,522,534

7

Investment securities gain, net

—

21,684

(100)

—

30,037

(100)

Provision for loan losses

45,285

86,673

(48)

125,424

199,918

(37)

Noninterest expense

572,485

541,037

6

1,121,797

1,133,181

(1)

Pretax income

214,383

154,774

39

381,052

219,472

74

Income tax expense

56,943

32,272

76

102,789

57,703

78

Net income

157,440

122,502

29

278,263

161,769

72

Net income attributable to noncontrolling interests

431

518

(17)

874

1,046

(16)

Net income attributable to BBVA Compass Bancshares, Inc.

$       157,009

$       121,984

29

$       277,389

$       160,723

73

SELECTED RATIOS

Return on average assets

0.72 %

0.53 %

0.64 %

0.35 %

Return on average tangible equity [b]

7.93

6.45

7.12

4.27

Average common equity to average assets

14.57

13.79

14.47

13.79

Average loans to average total deposits

91.16

91.11

90.45

91.63

Common equity tier I capital (CET1) [c]

11.89

10.79

11.89

10.79

Tier I capital ratio [c]

12.24

11.14

12.24

11.14

Total capital ratio [c]

14.61

13.66

14.61

13.66

Leverage ratio [c]

9.82

8.78

9.82

8.78

Average for Three Months

Average for Six Months

Ending Balance

Ended June 30,

%

Ended June 30,

%

June 30,

%

2017

2016

 Change 

2017

2016

 Change 

2017

2016

 Change 

BALANCE SHEET HIGHLIGHTS

Total loans

$  59,902,725

$  62,355,245

(4)

$  60,113,615

$  62,275,604

(3)

$  59,955,718

$  61,788,375

(3)

Total investment securities

13,117,321

12,493,595

5

12,999,704

12,488,652

4

13,286,015

12,617,412

5

Earning assets

78,182,674

82,809,254

(6)

78,223,352

82,556,235

(5)

78,063,746

78,813,552

(1)

Total assets

87,474,348

92,440,585

(5)

87,575,056

92,372,846

(5)

87,003,919

91,753,156

(5)

Noninterest bearing demand deposits

21,110,531

20,521,323

3

20,845,583

20,289,233

3

21,000,630

20,132,164

4

Interest bearing transaction accounts

32,566,221

32,975,782

(1)

32,985,683

32,918,640

—

32,472,406

32,625,540

—

Total transaction accounts

53,676,752

53,497,105

—

53,831,266

53,207,873

1

53,473,036

52,757,704

1

Total deposits

65,711,133

68,441,915

(4)

66,459,835

67,960,764

(2)

65,617,380

67,750,318

(3)

Total shareholder's equity

13,004,717

12,751,155

2

12,929,108

12,739,562

1

12,989,630

12,726,996

2

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

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

[c]  Current period regulatory capital ratios are estimated.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

2017

2016

June 30

March 31

December 31

September 30

June 30

NONPERFORMING ASSETS

Nonaccrual loans [a]

$  760,313

$  825,988

$     921,042

$   1,086,018

$  1,026,592

Loans 90 days or more past due [b]

59,434

65,617

61,542

65,525

60,320

TDRs 90 days or more past due

969

1,185

589

618

998

Total nonperforming loans [a]

820,716

892,790

983,173

1,152,161

1,087,910

Other real estate owned, net (OREO)

22,965

25,113

21,112

21,670

18,225

Other repossessed assets

12,298

9,540

7,587

6,900

9,380

Total nonperforming assets

$  855,979

$  927,443

$  1,011,872

$   1,180,731

$  1,115,515

TDRs accruing and past due less than 90 days

$    97,088

$  128,558

$     110,733

$      116,941

$     118,222

Total nonperforming loans as a % of loans

1.37 %

1.49 %

1.63 %

1.91 %

1.76 %

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

1.43

1.55

1.68

1.96

1.80

Three Months Ended

2017

2016

June 30

March 31

December 31

September 30

June 30

ALLOWANCE FOR LOAN LOSSES

Balance at beginning of period

$  834,106

$  838,293

$     862,080

$      843,051

$     822,440

Net charge-offs (NCO)

62,439

84,326

61,351

46,078

66,062

Provision for loan losses

45,285

80,139

37,564

65,107

86,673

Balance at end of period

$  816,952

$  834,106

$     838,293

$      862,080

$     843,051

Allowance for loan losses as a % of total loans

1.36 %

1.40 %

1.40 %

1.43 %

1.37 %

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

99.54

93.43

85.26

74.82

77.49

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

95.44

89.94

82.85

73.01

75.58

Annualized as a % of average loans:

NCO - QTD

0.42

0.57

0.40

0.30

0.43

NCO - YTD

0.49

0.57

0.37

0.36

0.39

[a]  Includes loans held for sale.

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

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

June 30, 2017

December 31, 2016

June 30, 2016

RecordedInvestment

TotalCommitment

Nonaccrual

RecordedInvestment

Total Commitment

Nonaccrual

RecordedInvestment

TotalCommitment

Nonaccrual

ENERGY PORTFOLIO

Exploration and production

$    1,599,999

$    4,102,412

$    218,697

$    1,654,565

$    4,182,861

$    308,096

$    1,935,062

$    4,456,062

$    620,612

Midstream

1,010,761

3,089,979

—

1,199,844

3,230,513

11,298

1,395,584

3,315,382

21,268

Drilling oil and support services

173,408

399,106

2,372

263,770

467,908

66,811

270,420

495,563

—

Refineries and terminals

144,954

255,894

250

128,010

262,618

339

131,626

201,399

430

Total energy portfolio

$    2,929,122

$    7,847,391

$    221,319

$    3,246,189

$    8,143,900

$    386,544

$    3,732,692

$    8,468,406

$    642,310

June 30, 2017

December 31, 2016

June 30, 2016

As a % of Energy Loans

As a % of TotalLoans

As a % of Energy Loans

As a % of TotalLoans

As a % ofEnergy Loans

As a % of TotalLoans

ENERGY PORTFOLIO

Exploration and production

54.6 %

2.7 %

51.0 %

2.7 %

51.8 %

3.1 %

Midstream

34.5

1.7

37.0

2.0

37.4

2.3

Drilling oil and support services

5.9

0.3

8.1

0.4

7.3

0.4

Refineries and terminals

5.0

0.2

3.9

0.2

3.5

0.2

Total energy portfolio

100.0 %

4.9 %

100.0 %

5.4 %

100.0 %

6.0 %

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Three Months Ended June 30,

2017

2016

Average Balance

Income/Expense

Yield/Rate

Average Balance

Income/Expense

Yield/Rate

YIELD/RATE ANALYSIS

  (Taxable Equivalent Basis)

Assets

Earning assets:

   Loans

$  59,902,725

$  625,366

4.19 %

$  62,355,245

$  575,852

3.71 %

   Investment securities available for sale [a]

12,072,464

55,612

1.85

11,208,678

36,519

1.31

   Investment securities held to maturity

1,134,494

9,961

3.52

1,265,643

9,754

3.10

   Other earning assets [b] [c]

5,162,628

21,856

1.70

7,960,414

17,758

0.90

        Total earning assets [a]

78,272,311

712,795

3.65

82,789,980

639,883

3.11

Allowance for loan losses

(836,477)

(837,147)

Unrealized gain (loss) on securities available for sale

(89,637)

19,274

Other assets

10,128,151

10,468,478

Total assets

$  87,474,348

$  92,440,585

Liabilities and Shareholder's Equity

Interest bearing liabilities:

Interest bearing demand deposits

$    7,849,285

$      6,261

0.32

$    6,826,950

$      3,848

0.23

Savings and money market accounts

24,716,936

22,380

0.36

26,148,832

24,758

0.38

Certificates and other time deposits

12,034,381

37,273

1.24

14,852,744

48,280

1.31

Foreign office deposits

—

—

—

92,066

47

0.21

 Total interest bearing deposits

44,600,602

65,914

0.59

47,920,592

76,933

0.65

FHLB and other borrowings

4,104,668

22,450

2.19

4,448,139

19,592

1.77

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

99,039

6,942

28.11

680,325

5,434

3.21

Other short-term borrowings

2,638,671

10,506

1.60

3,975,490

13,932

1.41

        Total interest bearing liabilities

51,442,980

105,812

0.83

57,024,546

115,891

0.82

Noninterest bearing deposits

21,110,531

20,521,323

Other noninterest bearing liabilities

1,916,120

2,143,561

Total liabilities

74,469,631

79,689,430

Shareholder's equity

13,004,717

12,751,155

Total liabilities and shareholder's equity

$  87,474,348

$  92,440,585

Net interest income/ net interest spread

606,983

2.82 %

523,992

2.29 %

Net yield on earning assets

3.11 %

2.55 %

     Total taxable equivalent adjustment

21,155

19,754

     Net interest income

$  585,828

$  504,238

[a] Excludes adjustment for market valuation.

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

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Six Months Ended June 30,

2017

2016

Average Balance

Income/ Expense

Yield/ Rate

Average Balance

Income/ Expense

Yield/Rate

YIELD/RATE ANALYSIS

  (Taxable Equivalent Basis)

Assets

Earning assets:

   Loans

$  60,113,615

$  1,217,070

4.08 %

$  62,275,604

$  1,153,074

3.72 %

   Investment securities available for sale [a]

11,963,831

110,544

1.86

11,199,707

82,803

1.49

   Investment securities held to maturity

1,151,552

19,532

3.42

1,279,209

19,592

3.08

   Other earning assets [b] [c]

5,110,033

41,416

1.63

7,791,979

36,446

0.94

        Total earning assets [a]

78,339,031

1,388,562

3.57

82,546,499

1,291,915

3.15

Allowance for loan losses

(843,381)

(810,889)

Unrealized gain (loss) on securities available for sale

(115,679)

9,736

Other assets

10,195,085

10,627,500

Total assets

$  87,575,056

$  92,372,846

Liabilities and Shareholder's Equity

Interest bearing liabilities:

Interest bearing demand deposits

$    8,019,136

12,392

0.31

$    6,956,442

7,790

0.23

Savings and money market accounts

24,966,547

44,681

0.36

25,962,198

51,501

0.40

Certificates and other time deposits

12,628,569

79,145

1.26

14,643,322

95,349

1.31

Foreign office deposits

—

—

—

109,569

108

0.20

 Total interest bearing deposits

45,614,252

136,218

0.60

47,671,531

154,748

0.65

FHLB and other borrowings

3,638,825

41,518

2.30

4,756,471

37,604

1.59

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

71,102

11,839

33.58

740,284

11,591

3.15

Other short-term borrowings

2,673,046

20,592

1.55

4,000,459

27,828

1.40

        Total interest bearing liabilities

51,997,225

210,167

0.82

57,168,745

231,771

0.82

Noninterest bearing deposits

20,845,583

20,289,233

Other noninterest bearing liabilities

1,803,140

2,175,306

Total liabilities

74,645,948

79,633,284

Shareholder's equity

12,929,108

12,739,562

Total liabilities and shareholder's equity

$  87,575,056

$  92,372,846

Net interest income/ net interest spread

1,178,395

2.75 %

1,060,144

2.33 %

Net yield on earning assets

3.03 %

2.58 %

     Total taxable equivalent adjustment

41,134

39,024

     Net interest income

$  1,137,261

$  1,021,120

[a] Excludes adjustment for market valuation.

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

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Six Months

Three Months Ended

Ended June 30,

%

2017

2016

2017

2016

 Change 

June 30

March 31

December 31

September 30

June 30

NONINTEREST INCOME

Service charges on deposit accounts

$     110,087

$     103,346

7

$    54,919

$    55,168

$       55,901

$        55,047

$    51,921

Card and merchant processing fees

62,452

61,251

2

32,460

29,992

31,161

31,256

31,509

Retail investment sales

56,059

49,552

13

28,588

27,471

23,293

30,137

26,985

Investment banking and advisory fees

48,244

51,939

(7)

19,943

28,301

20,792

34,385

28,335

Money transfer income

52,527

50,902

3

27,330

25,197

28,632

25,058

26,477

Asset management fees

19,826

17,191

15

10,055

9,771

8,906

8,778

8,386

Corporate and correspondent investment sales

21,104

14,516

45

12,189

8,915

3,199

6,974

10,103

Mortgage banking

6,186

(2,832)

 NM 

3,316

2,870

16,086

8,242

602

Bank owned life insurance

8,389

8,871

(5)

4,220

4,169

4,202

4,170

4,455

Other

106,138

146,678

(28)

53,305

52,833

68,881

59,718

67,789

491,012

501,414

(2)

246,325

244,687

261,053

263,765

256,562

Investment securities gains, net

—

30,037

(100)

—

—

—

—

21,684

Loss on prepayment of FHLB and other borrowings, net

—

—

—

—

—

(295)

—

—

Total noninterest income

$     491,012

$     531,451

(8)

$  246,325

$  244,687

$     260,758

$      263,765

$  278,246

NONINTEREST EXPENSE

Salaries, benefits and commissions

$     556,441

$     556,935

—

$  288,426

$  268,015

$     283,609

$      279,132

$  277,166

Professional services

122,647

114,768

7

64,840

57,807

63,810

63,628

58,401

Equipment

124,035

119,949

3

62,405

61,630

62,627

59,697

59,508

Net occupancy

83,341

79,271

5

41,240

42,101

40,116

41,610

39,999

Money transfer expense

34,131

33,368

2

17,807

16,324

17,426

16,680

17,768

Marketing

29,274

24,215

21

15,729

13,545

13,018

13,316

11,506

Communications

10,500

10,638

(1)

5,281

5,219

5,406

5,002

5,463

Amortization of intangibles

5,050

8,187

(38)

2,525

2,525

4,093

4,093

4,094

Goodwill impairment

—

—

—

—

—

59,901

—

—

Other

156,378

185,850

(16)

74,232

82,146

64,064

73,113

67,132

Total noninterest expense

$  1,121,797

$  1,133,181

(1)

$  572,485

$  549,312

$     614,070

$      556,271

$  541,037

NM = Not meaningful

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2017

2016

2017

2016

NON-GAAP RECONCILIATION

Computation of Average Tangible Equity:

Total stockholder's equity (average)

$  13,004,717

$  12,751,155

$  12,929,108

$  12,739,562

Less: Goodwill and other intangibles (average)

4,994,774

5,109,772

4,996,035

5,112,406

Average tangible equity [B]

$    8,009,943

$    7,641,383

$    7,933,073

$    7,627,156

   Net income [A]

$       157,440

$       122,502

$       278,263

$       161,769

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

7.93 %

6.45 %

7.12 %

4.27 %

 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

At or Quarter Ended June 30, 2017

30-59 Days Past Due

60-89 Days Past Due

90 Days or MorePast Due

Nonaccrual

Accruing TDRs

Not Past Due orImpaired

Total

Net Charge Offs (Recoveries)

Commercial, financial and agricultural

$                       32,398

$                         6,532

$                 4,770

$    448,565

$                 766

$     24,117,488

$ 24,610,519

$              20,047

Real estate – construction

4,829

474

2,251

1,993

110

2,279,166

2,288,823

(797)

Commercial real estate –  mortgage

8,966

10,138

3,617

117,893

4,725

11,375,494

11,520,833

(1,386)

Residential real estate – mortgage

54,911

31,227

3,043

141,482

59,490

12,789,171

13,079,324

1,404

Equity lines of credit

8,560

4,933

1,630

29,347

236

2,535,194

2,579,900

795

Equity loans

4,109

1,202

320

11,015

32,110

346,093

394,849

209

Credit card

5,446

4,015

11,738

-

-

555,621

576,820

10,678

Consumer – direct

16,134

6,032

4,187

706

620

1,419,967

1,447,646

16,899

Consumer – indirect

75,605

18,189

5,681

8,964

-

2,952,843

3,061,282

14,590

Covered loans

3,438

308

22,197

348

-

294,873

321,164

-

Total loans

$                     214,396

$                       83,050

$              59,434

$    760,313

$            98,057

$     58,665,910

$ 59,881,160

$              62,439

Loans held for sale

$                                -

$                                -

$                        -

$                -

$                     -

$             74,558

$         74,558

$                       -

At or Quarter Ended March 31, 2017

30-59 Days Past Due

60-89 Days Past Due

90 Days or MorePast Due

Nonaccrual

Accruing TDRs

Not Past Due or Impaired

Total

Net Charge Offs (Recoveries)

Commercial, financial and agricultural

$                       22,472

$                       11,804

$                 4,405

$    540,407

$            31,644

$     24,049,936

$ 24,660,668

$              39,411

Real estate – construction

487

25

3,640

1,028

114

2,222,111

2,227,405

(57)

Commercial real estate –  mortgage

13,872

1,226

4,602

89,908

4,821

11,284,392

11,398,821

(741)

Residential real estate – mortgage

61,234

22,337

2,653

140,342

58,867

12,832,343

13,117,776

1,195

Equity lines of credit

9,144

3,619

1,478

32,675

-

2,513,579

2,560,495

1,166

Equity loans

5,105

1,592

376

12,626

33,635

367,028

420,362

848

Credit card

6,262

4,719

12,453

-

-

546,877

570,311

9,818

Consumer – direct

12,025

4,866

4,874

637

662

1,306,178

1,329,242

16,818

Consumer – indirect

68,851

16,161

7,463

7,955

-

2,978,318

3,078,748

15,899

Covered loans

6,448

3,479

23,673

410

-

307,929

341,939

(31)

Total loans

$                     205,900

$                       69,828

$              65,617

$    825,988

$         129,743

$     58,408,691

$ 59,705,767

$              84,326

Loans held for sale

$                                -

$                                -

$                        -

$                -

$                     -

$             74,741

$         74,741

$                       -

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

At or Quarter Ended December 31, 2016

30-59 Days Past Due

60-89 Days Past Due

90 Days or MorePast Due

Nonaccrual

Accruing TDRs

Not Past Due orImpaired

Total

Net Charge Offs (Recoveries)

Commercial, financial and agricultural

$                       23,788

$                         6,581

$                 2,891

$    596,454

$              8,726

$     24,483,562

$ 25,122,002

$              14,413

Real estate – construction

918

50

2,007

1,239

2,393

2,118,709

2,125,316

(383)

Commercial real estate –  mortgage

3,791

3,474

-

71,921

4,860

11,126,614

11,210,660

280

Residential real estate – mortgage

57,359

28,450

3,356

140,303

59,893

12,970,633

13,259,994

1,044

Equity lines of credit

7,922

4,583

2,950

33,453

-

2,494,870

2,543,778

641

Equity loans

5,615

1,843

467

13,635

34,746

389,403

445,709

512

Credit card

6,411

5,042

10,954

-

-

582,474

604,881

9,680

Consumer – direct

13,338

4,563

4,482

789

704

1,230,765

1,254,641

15,343

Consumer – indirect

85,198

22,833

7,197

5,926

-

3,013,794

3,134,948

19,902

Covered loans

7,311

1,351

27,238

730

-

322,704

359,334

(81)

Total loans

$                     211,651

$                       78,770

$              61,542

$    864,450

$         111,322

$     58,733,528

$ 60,061,263

$              61,351

Loans held for sale

$                                -

$                                -

$                        -

$       56,592

$                     -

$           105,257

$       161,849

$                       -

At or Quarter Ended September 30, 2016

30-59 Days Past Due

60-89 Days Past Due

90 Days or More Past Due

Nonaccrual

Accruing TDRs

Not Past Due orImpaired

Total

Net Charge Offs (Recoveries)

Commercial, financial and agricultural

$                       72,328

$                         4,400

$                 5,320

$    850,075

$              9,283

$     23,897,662

$ 24,839,068

$                8,936

Real estate – construction

522

1,062

2,782

1,214

3,315

2,206,377

2,215,272

(206)

Commercial real estate –  mortgage

7,614

369

783

63,593

5,141

11,284,130

11,361,630

(372)

Residential real estate – mortgage

56,204

21,200

3,929

117,243

63,008

13,195,851

13,457,435

560

Equity lines of credit

8,173

4,477

2,417

32,642

-

2,446,759

2,494,468

601

Equity loans

5,567

1,694

353

13,198

36,053

422,510

479,375

18

Credit card

5,696

4,264

10,175

-

-

579,727

599,862

8,460

Consumer – direct

12,099

4,725

4,191

765

759

1,164,288

1,186,827

12,884

Consumer – indirect

73,045

20,165

7,070

7,019

-

3,088,936

3,196,235

15,197

Covered loans

4,075

3,844

28,505

269

-

344,418

381,111

-

Total loans

$                     245,323

$                       66,200

$              65,525

$ 1,086,018

$         117,559

$     58,630,658

$ 60,211,283

$              46,078

Loans held for sale

$                                -

$                                -

$                        -

$                -

$                     -

$           101,843

$       101,843

$                       -

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

At or Quarter Ended June 30, 2016

30-59 Days Past Due

60-89 Days Past Due

90 Days or More Past Due

Nonaccrual

Accruing TDRs

Not Past Due orImpaired

Total

Net Charge Offs (Recoveries)

Commercial, financial and agricultural

$                         8,750

$                         4,499

$                 4,175

$    797,066

$              9,333

$     25,552,413

$ 26,376,236

$              31,773

Real estate – construction

1,675

1,195

2,064

1,983

2,650

2,117,823

2,127,390

(1,094)

Commercial real estate –  mortgage

3,495

535

-

62,381

5,603

11,184,061

11,256,075

1,684

Residential real estate – mortgage

51,319

18,866

1,286

109,805

64,341

13,251,401

13,497,018

471

Equity lines of credit

7,279

3,996

1,565

34,043

-

2,418,631

2,465,514

854

Equity loans

4,378

1,214

568

14,254

36,485

456,090

512,989

(19)

Credit card

5,588

3,768

9,056

-

-

590,475

608,887

8,127

Consumer – direct

10,319

4,670

3,354

540

808

1,070,803

1,090,494

9,924

Consumer – indirect

69,575

17,053

5,324

6,360

-

3,248,374

3,346,686

13,027

Covered loans

5,124

4,115

32,928

160

-

356,327

398,654

1,315

Total loans

$                     167,502

$                       59,911

$              60,320

$ 1,026,592

$         119,220

$     60,246,398

$ 61,679,943

$              66,062

Loans held for sale

$                                -

$                                -

$                        -

$                -

$                     -

$           108,432

$       108,432

$                       -

 

BBVA COMPASS BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)

2017

2016

June 30

March 31

December 31

September 30

June 30

Assets:

Cash and due from banks

$    1,073,646

$    1,093,797

$      1,284,261

$       1,130,610

$    1,581,187

Interest bearing funds with the Federal Reserve

2,120,285

2,669,135

1,830,078

2,923,813

3,248,576

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

182,215

197,000

137,447

372,268

319,644

Cash and cash equivalents

3,376,146

3,959,932

3,251,786

4,426,691

5,149,407

Trading account assets

2,651,083

2,892,254

3,144,600

4,051,461

4,355,025

Investment securities available for sale

12,142,844

11,846,618

11,665,055

11,516,885

11,359,159

Investment securities held to maturity

1,143,171

1,158,785

1,203,217

1,240,850

1,258,253

Loans held for sale

74,558

74,741

161,849

101,843

108,432

Loans

59,881,160

59,705,767

60,061,263

60,211,283

61,679,943

Allowance for loan losses

(816,952)

(834,106)

(838,293)

(862,080)

(843,051)

Net loans

59,064,208

58,871,661

59,222,970

59,349,203

60,836,892

Premises and equipment, net

1,253,516

1,273,226

1,300,054

1,287,457

1,290,738

Bank owned life insurance

718,938

715,883

711,939

712,422

708,143

Goodwill

4,983,296

4,983,296

4,983,296

5,043,197

5,043,197

Other assets

1,596,159

1,532,837

1,435,187

1,626,829

1,643,910

Total assets

$ 87,003,919

$ 87,309,233

$   87,079,953

$     89,356,838

$ 91,753,156

Liabilities:

Deposits:

Noninterest bearing

$ 21,000,630

$ 21,476,890

$   20,332,792

$     20,585,598

$ 20,132,164

Interest bearing

44,616,750

46,052,748

46,946,741

47,001,739

47,618,154

Total deposits

65,617,380

67,529,638

67,279,533

67,587,337

67,750,318

FHLB and other borrowings

4,789,494

2,993,222

3,001,551

3,671,861

5,098,048

Federal funds purchased and securities sold under agreements to repurchase

31,619

71,559

39,052

165,573

386,343

Other short-term borrowings

2,435,260

2,642,539

2,802,977

3,591,223

4,352,428

Accrued expenses and other liabilities

1,140,536

1,186,776

1,206,133

1,521,654

1,439,023

Total liabilities

74,014,289

74,423,734

74,329,246

76,537,648

79,026,160

Shareholder's Equity:

Preferred stock

229,475

229,475

229,475

229,475

229,475

Common stock — $0.01 par value

2,230

2,230

2,230

2,230

2,230

Surplus

14,916,198

14,982,125

14,985,673

15,020,937

15,022,974

Retained deficit

(2,050,051)

(2,207,060)

(2,327,440)

(2,416,402)

(2,536,230)

Accumulated other comprehensive loss

(137,131)

(150,781)

(168,252)

(46,644)

(20,500)

Total BBVA Compass Bancshares, Inc. shareholder's equity

12,960,721

12,855,989

12,721,686

12,789,596

12,697,949

Noncontrolling interests

28,909

29,510

29,021

29,594

29,047

Total shareholder's equity

12,989,630

12,885,499

12,750,707

12,819,190

12,726,996

Total liabilities and shareholder's equity

$ 87,003,919

$ 87,309,233

$   87,079,953

$     89,356,838

$ 91,753,156

 

BBVA COMPASS BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)

Three Months Ended

2017

2016

June 30

March 31

December 31

September 30

June 30

Interest income:

Interest and fees on loans

$ 607,375

$  574,712

$         558,680

$           557,996

$ 559,170

Interest on investment securities available for sale

55,590

54,878

60,868

48,382

36,442

Interest on investment securities held to maturity

6,821

6,639

6,664

6,675

6,759

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

12,049

9,262

7,664

4,563

4,346

Interest on trading account assets

9,805

10,297

13,150

12,926

13,412

Total interest income

691,640

655,788

647,026

630,542

620,129

Interest expense:

Interest on deposits

65,914

70,304

73,846

76,031

76,933

Interest on FHLB and other borrowings

22,450

19,068

23,825

21,315

19,592

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

6,942

4,897

4,640

4,934

5,434

Interest on other short-term borrowings

10,506

10,086

12,963

13,453

13,932

Total interest expense

105,812

104,355

115,274

115,733

115,891

Net interest income

585,828

551,433

531,752

514,809

504,238

Provision for loan losses

45,285

80,139

37,564

65,107

86,673

Net interest income after provision for loan losses

540,543

471,294

494,188

449,702

417,565

Noninterest income:

Service charges on deposit accounts

54,919

55,168

55,901

55,047

51,921

Card and merchant processing fees

32,460

29,992

31,161

31,256

31,509

Retail investment sales

28,588

27,471

23,293

30,137

26,985

Investment banking and advisory fees

19,943

28,301

20,792

34,385

28,335

Money transfer income

27,330

25,197

28,632

25,058

26,477

Asset management fees

10,055

9,771

8,906

8,778

8,386

Corporate and correspondent investment sales

12,189

8,915

3,199

6,974

10,103

Mortgage banking

3,316

2,870

16,086

8,242

602

Bank owned life insurance

4,220

4,169

4,202

4,170

4,455

Investment securities gains, net

—

—

—

—

21,684

Loss on prepayment of FHLB and other borrowings

—

—

(295)

—

—

Other

53,305

52,833

68,881

59,718

67,789

Total noninterest income

246,325

244,687

260,758

263,765

278,246

Noninterest expense:

Salaries, benefits and commissions

288,426

268,015

283,609

279,132

277,166

Professional services

64,840

57,807

63,810

63,628

58,401

Equipment

62,405

61,630

62,627

59,697

59,508

Net occupancy

41,240

42,101

40,116

41,610

39,999

Money transfer expense

17,807

16,324

17,426

16,680

17,768

Marketing

15,729

13,545

13,018

13,316

11,506

Communications

5,281

5,219

5,406

5,002

5,463

Amortization of intangibles

2,525

2,525

4,093

4,093

4,094

Goodwill impairment

—

—

59,901

—

—

Other

74,232

82,146

64,064

73,113

67,132

Total noninterest expense

572,485

549,312

614,070

556,271

541,037

Net income before income tax expense

214,383

166,669

140,876

157,196

154,774

Income tax expense

56,943

45,846

51,473

36,845

32,272

Net income

157,440

120,823

89,403

120,351

122,502

Less: net income attributable to noncontrolling interests

431

443

441

523

518

Net income attributable to BBVA Compass Bancshares, Inc.

$ 157,009

$  120,380

$           88,962

$           119,828

$ 121,984

 

View original content with multimedia:http://www.prnewswire.com/news-releases/bbva-compass-reports-record-quarterly-earnings-300495461.html

SOURCE BBVA Compass


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