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BBVA Compass reports first quarter results

HOUSTON, April 29, 2019 /PRNewswire/ --

  • Net income for the quarter totaled $141 million
  • Total revenue increased 6 percent from prior year levels
  • Noninterest expense growth well contained at 3 percent; efficiency ratio improves 147 basis points to 61.58 percent
  • Positive operating leverage results in record quarterly operating income1 of $359 million in the quarter, up 13 percent from a year ago and 9 percent on a linked quarter annualized basis
  • Deposit growth fully funds increase in loan portfolio
  • Credit quality metrics remain sound despite isolated one-offs; allowance to loan ratio at 1.52 percent compared to 1.36 percent at the end of 2018
  • Capital position remains strong; Common Equity Tier 1 capital ratio2 rose to 12.34 percent, up 34 basis points from year-end 2018
BBVA Compass corporate logo (PRNewsFoto/BBVA Compass)

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $141 million for the first quarter of 2019 compared to earnings of $209 million in the first quarter of 2018. Return on average assets and return on average tangible equity1 for the first quarter of 2019 were 0.61 percent and 6.64 percent, respectively.

"Our results for the first quarter of 2019 continue to reflect positive operating leverage as we delivered record operating income in the quarter," said Javier Rodríguez Soler, president and CEO of BBVA Compass. "Revenue growth was driven by a double digit increase in net interest income and expense growth was well contained. Loan growth was modest but, most importantly, was fully funded by deposit growth as we continued to successfully grow and deepen our deposit relationships. While provision levels in the quarter were elevated, the overall health of our loan portfolio remains strong. As we continue to navigate the challenging environment, our focus remains on being at the forefront of the digital transformation in our industry and using technology to improve efficiency and provide our customers with amazing experiences."

Total revenue for the quarter was $932 million, an increase of 6 percent from the first quarter of 2018. Net interest income totaled $683 million, an increase of $60 million or 10 percent from the first quarter of 2018, and an annualized increase of 1 percent on a linked quarter basis. The percent net interest margin in the first quarter of 2019 was 3.41 percent, an increase of 14 basis points from a year ago and 4 basis points on a linked quarter basis. "The increase in net interest income reflects higher short-term market rates and growth in higher-yielding loans, partially offset by higher funding costs as customers continue to migrate into interest bearing accounts and the competitive landscape for deposits," noted Rodríguez Soler.

Noninterest income for the quarter totaled $258 million, relatively unchanged from first quarter of 2018 levels. Fee-based businesses reported positive growth including card and merchant processing fees (+16 percent), service charges on deposit accounts (+5 percent) and money transfer income (+6 percent). Conversely, interest rate sensitive businesses and weaker demand impacted corporate and correspondent investment sales (-43 percent), investment banking and advisory fees (-21 percent) and investment services sales (-11 percent). During the quarter investment securities gains, net totaled $9.0 million.

Expense growth was well managed as noninterest expense totaled $582 million, a 3 percent increase compared to first quarter 2018 levels and down 13 percent on a linked quarter annualized basis. As a result of this positive operating leverage, operating income1 for the quarter totaled a record $359 million, an increase of $41 million or 13 percent from the first quarter of 2018, and the efficiency ratio improved 147 basis points to 61.58 percent compared to 63.05 percent in the first quarter of 2018.

In terms of balance sheet growth, total loans for the first quarter of 2019 were $65.0 billion, an increase of 4 percent from the $62.3 billion at the end of the first quarter of 2018. On a reported basis, total commercial loans were flat versus a year ago. However, during the first quarter approximately $1.2 billion of commercial loans were transferred to loans held for sale. Adjusting for the impact of this transfer, the year-over-year increase in commercial loans was 3 percent. Total consumer loans grew 6 percent, led by increased activity in direct consumer lending (+36 percent), credit cards (+27 percent) and indirect auto lending (+14 percent). Although year-over-year growth in these portfolios was at double-digit rates, compared to previous quarters the pace of growth slowed, particularly compared to the fourth quarter of 2018.

Total deposits at the end of the first quarter of 2019 were $74.4 billion, a 6 percent increase from the $69.9 billion at the end of the first quarter of 2018. Noninterest bearing demand deposits declined 6 percent as customers continue to shift from demand deposits into interest bearing accounts. As a result, interest bearing transactions accounts (savings, money market and interest bearing checking) increased 11 percent compared to a year ago. Deposit growth at $4.4 billion fully funded loan growth of $2.7 billion. Consequently, the loan to deposit ratio ended the quarter at 87 percent compared to 89 percent a year ago.

"While loan growth is important, maintaining sound underwriting standards and a strong risk profile is one of our highest priorities," noted Rodríguez Soler. "During the quarter we recorded a meaningful increase in provision expense to address isolated, one-off issues in our commercial and consumer loan portfolios."

Nonperforming loans as a percentage of total loans ended the quarter at 1.34 percent compared to 1.24 percent at the end of the fourth quarter of 2018 and 1.11 percent at the end of the first quarter of 2018. The increase in nonperforming loans during the quarter was primarily due to a handful of unrelated commercial credits. Net charge-offs as a percentage of average loans were 63 basis points in the quarter, down from 68 basis points in the fourth quarter of 2018 and up from the 44 basis points recorded during the first quarter of 2018. The increase in net charge-offs over the past two quarters was primarily the result of increased charge-offs in certain consumer portfolios reflecting growth in those portfolios as well as the further seasoning of newly established consumer direct portfolio product offerings. Provision expense for the quarter was $182 million, exceeding net charge-offs by $81 million. As a result, the allowance for loan losses as a percentage of total loans at the end of the quarter was 1.52 percent, up from 1.36 percent at the end of the fourth quarter of 2018 and 1.34 percent at the end of the first quarter of 2018. The coverage ratio of nonperforming loans ended the quarter at 111 percent.

Total shareholder's equity at the end of the first quarter of 2019 totaled $13.7 billion, a 4 percent increase from $13.1 billion at the end of the first quarter of 2018. The CET1 ratio stood at 12.34 percent2 at the end of the first quarter of 2019, up 26 basis points from the end of the first quarter of 2018. All of BBVA Compass' regulatory capital ratios2 continue to significantly exceed the requirements under "well-capitalized" guidelines.

During the first quarter, BBVA Compass was named by Global Finance magazine as top treasury and cash management provider for the Southwest in the category of Best US Regional Middle Market providers. BBVA Compass was recognized for the annual award from Global Finance for its customer service, competitive pricing, product innovation and the extent to which the bank differentiated itself from competitors.

BBVA Compass also announced that the Federal Reserve Bank of Atlanta rated it "Outstanding" for CRA performance for its most recent examination period encompassing 2015 to 2017. The bank achieved "excellent performance" for community development lending and investments, and "high satisfactory" for service.

The evaluation cited several reasons for BBVA Compass' overall 'Outstanding' rating, including the bank's excellent responsiveness to credit needs and the distribution of loans among borrowers of different income levels and businesses of different revenue sizes. In addition, BBVA Compass demonstrated leadership in making community development loans and investments, as well as leadership in providing community development services.

_________________________

1 Return on average tangible equity and operating income 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 Regulatory capital ratios at March 31, 2019, are estimated.

FTE – fully taxable equivalent

About BBVA Compass
BBVA Compass is a Sunbelt-based financial institution that operates 641 branches, including 329 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 37 in Colorado and 17 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 Group
BBVA (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 March 28, 2019, BBVA filed its annual report on Form 20-F for the year ended December 31, 2018, 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, 2018, 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, 2019, as updated by our subsequent SEC filings.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)














Three Months Ended March 31,


%








2019


2018


Change







EARNINGS SUMMARY












Net interest income

$       683,089


$       622,605


10







Noninterest income [a]

248,802


257,825


(3)







Total revenue [a]

931,891


880,430


6







Investment securities gain, net

8,958



 NM 







Provision for loan losses

182,292


57,029


220







Noninterest expense

581,973


562,913


3







Pretax income

176,584


260,488


(32)







Income tax expense

35,603


51,798


(31)







Net income

140,981


208,690


(32)







Net income attributable to noncontrolling interests

556


461


21







Net income attributable to BBVA Compass Bancshares, Inc.

$       140,425


$       208,229


(33)



















SELECTED RATIOS












Return on average assets

0.61 %


0.96 %









Return on average tangible equity [b]

6.64


10.51









Efficiency ratio [b]

61.58


63.05









Average common equity to average assets

14.39


14.62









Average loans to average total deposits

90.69


89.61









Common equity tier I capital (CET1) [c]

12.34


12.08









Tier I capital ratio [c]

12.67


12.43









Total capital ratio [c]

14.81


14.67









Leverage ratio [c]

10.05


10.12














































Average for Three Months




Ending Balance




Ended March 31,


%


March 31,


%


2019


2018


Change


2019


2018


Change

BALANCE SHEET HIGHLIGHTS












Total loans

$  65,482,395


$  62,200,448


5


$  65,031,366


$  62,284,262


4

Total debt securities

13,768,787


13,192,627


4


13,872,059


13,409,881


3

Earning assets

82,503,041


78,612,940


5


84,356,100


78,733,347


7

Total assets

92,985,876


87,770,909


6


93,842,586


87,608,502


7

Noninterest bearing demand deposits

20,183,069


21,581,905


(6)


20,403,716


21,792,498


(6)

Interest bearing transaction accounts

35,904,264


33,721,948


6


38,018,421


34,344,230


11

Total transaction accounts

56,087,333


55,303,853


1


58,422,137


56,136,728


4

Total deposits

72,203,842


69,413,803


4


74,380,308


69,940,412


6

Total shareholder's equity

13,640,655


13,090,418


4


13,727,537


13,144,139


4


[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)






2019


2018


March 31


December 31


September 30


June 30


March 31

NONPERFORMING ASSETS










Nonaccrual loans [a]

$806,644


$      751,486


$       628,159


$662,991


$647,210

Loans 90 days or more past due [b]

63,880


59,549


44,765


39,143


45,904

TDRs 90 days or more past due

370


411


444


491


700

Total nonperforming loans [a]

870,894


811,446


673,368


702,625


693,814

Other real estate owned, net (OREO)

14,983


16,869


18,706


16,499


16,147

Other repossessed assets

11,225


12,031


9,875


13,117


11,278

Total nonperforming assets

$897,102


$      840,346


$       701,949


$732,241


$721,239











TDRs accruing and past due less than 90 days

$111,671


$      109,190


$         92,606


$  99,251


$101,285











Total nonperforming loans as a % of loans

1.34 %


1.24 %


1.04 %


1.11 %


1.11 %

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

1.38


1.29


1.09


1.16


1.16












Three Months Ended


2019


2018


March 31


December 31


September 30


June 30


March 31

ALLOWANCE FOR LOAN LOSSES










Balance at beginning of period

$885,242


$      875,393


$       860,000


$832,071


$842,760

Net charge-offs (NCO)

101,512


112,298


79,571


63,351


67,718

Provision for loan losses

182,292


122,147


94,964


91,280


57,029

Balance at end of period

$966,022


$      885,242


$       875,393


$860,000


$832,071











Allowance for loan losses as a % of total loans

1.52 %


1.36 %


1.36 %


1.36 %


1.34 %

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

110.92


109.09


130.00


122.40


119.93

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

107.68


105.34


124.71


117.45


115.37











Annualized as a % of average loans:










NCO - QTD

0.63


0.68


0.49


0.40


0.44

NCO - YTD

0.63


0.51


0.45


0.42


0.44


[a]  Includes loans held for sale.

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

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)














Three Months Ended March 31,


2019


2018


Average
Balance


Income/
Expense


Yield/
Rate


Average
Balance


Income/
Expense


Yield/
Rate

YIELD/RATE ANALYSIS












(Taxable Equivalent Basis)












Assets












Earning assets:












Loans

$65,482,395


$812,415


5.03 %


$62,200,448


$674,830


4.40 %

Debt securities available for sale [a]

9,922,400


53,522


2.19


11,424,405


56,605


2.01

Debt securities held to maturity

4,034,292


30,765


3.09


1,996,409


13,902


2.82

Other earning assets [b]

3,251,859


23,507


2.93


3,219,865


12,626


1.59

Total earning assets [a]

82,690,946


920,209


4.51


78,841,127


757,963


3.90

Allowance for loan losses

(909,663)






(844,248)





Unrealized loss on debt securities available for sale

(187,905)






(228,187)





Other assets

11,392,498






10,002,217





Total assets

$92,985,876






$87,770,909

















Liabilities and Shareholder's Equity












Interest bearing liabilities:












Interest bearing demand deposits

$  8,685,693


$  20,346


0.95


8,195,605


$    9,581


0.47

Savings and money market accounts

27,218,571


76,909


1.15


25,526,343


38,890


0.62

Certificates and other time deposits

16,116,509


85,099


2.14


14,109,950


48,876


1.40

Total interest bearing deposits

52,020,773


182,354


1.42


47,831,898


97,347


0.83

FHLB and other borrowings

4,290,724


37,626


3.56


3,310,286


24,756


3.03

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

411,925


3,747


3.69


22,235


536


9.78

Other short-term borrowings

28,117


196


2.83


51,626


344


2.70

Total interest bearing liabilities

56,751,539


223,923


1.60


51,216,045


122,983


0.97

Noninterest bearing deposits

20,183,069






21,581,905





Other noninterest bearing liabilities

2,410,613






1,882,541





Total liabilities

79,345,221






74,680,491





Shareholder's equity

13,640,655






13,090,418





Total liabilities and shareholder's equity

$92,985,876






$87,770,909

















Net interest income/ net interest spread



696,286


2.91 %




634,980


2.93 %

Net yield on earning assets





3.41 %






3.27 %













Total taxable equivalent adjustment



13,197






12,375















Net interest income



$683,089






$622,605




[a] Excludes adjustment for market valuation.

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)


















Three Months




Three Months Ended


Ended March 31,


%


2019


2018


2019


2018


 Change 


March 31


December 31


September 30


June 30


March 31

NONINTEREST INCOME
















Service charges on deposit accounts

$  58,908


$  56,161


5


$  58,908


$        61,606


$         60,325


$  58,581


$  56,161

Card and merchant processing fees

46,002


39,678


16


46,002


46,982


44,219


44,048


39,678

Investment services sales fees

26,696


30,108


(11)


26,696


24,476


28,286


29,782


30,108

Investment banking and advisory fees

18,857


23,896


(21)


18,857


15,286


13,956


24,546


23,896

Money transfer income

21,981


20,688


6


21,981


23,632


23,441


23,920


20,688

Corporate and correspondent investment sales

6,892


12,056


(43)


6,892


10,774


12,490


16,355


12,056

Asset management fees

10,767


10,770



10,767


10,909


11,143


10,989


10,770

Mortgage banking

4,937


8,397


(41)


4,937


3,755


6,717


7,964


8,397

Bank owned life insurance

4,584


4,215


9


4,584


4,635


4,597


4,375


4,215

Other

49,178


51,856


(5)


49,178


68,551


53,285


49,459


51,856


248,802


257,825


(3)


248,802


270,606


258,459


270,019


257,825

Investment securities gains, net

8,958




8,958





Total noninterest income

$257,760


$257,825



$257,760


$      270,606


$       258,459


$270,019


$257,825

















NONINTEREST EXPENSE
















Salaries, benefits and commissions

$292,716


$289,440


1


$292,716


$      285,820


$       292,679


$286,852


$289,440

Equipment

65,394


63,360


3


65,394


66,806


63,739


63,660


63,360

Professional services

63,896


60,645


5


63,896


79,529


68,403


68,577


60,645

Net occupancy

40,941


40,422


1


40,941


41,161


42,514


42,671


40,422

Money transfer expense

14,978


13,721


9


14,978


15,995


16,120


16,302


13,721

Marketing

10,393


8,787


18


10,393


15,884


12,381


11,814


8,787

Communications

5,401


5,263


3


5,401


9,241


10,827


5,251


5,263

Other

88,254


81,275


9


88,254


87,556


98,847


84,418


81,275

Total noninterest expense

$581,973


$562,913


3


$581,973


$      601,992


$       605,510


$579,545


$562,913

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)






Three Months Ended March 31,


2019


2018

NON-GAAP RECONCILIATION








Computation of Operating Income:




Net interest income (GAAP)

$      683,089


$     622,605

Plus: noninterest income (GAAP)

257,760


257,825

Less: noninterest expense (GAAP)

581,973


562,913

Operating income (non-GAAP)

$      358,876


$     317,517













Computation of Average Tangible Equity:




Total stockholder's equity (average) (GAAP)

$ 13,640,655


$ 13,090,418

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

5,035,591


5,039,246

Average tangible equity (non-GAAP) [B]

$   8,605,064


$  8,051,172

Net income (GAAP) [A]

$      140,981


$     208,690

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

6.64 %


10.51 %





Computation of Efficiency Ratio:




Noninterest expense (GAAP) [A]

$      581,973


$     562,913

Plus: net interest income, taxable equivalent basis

$      696,286


$     634,980

Plus: noninterest income (GAAP)

257,760


257,825

Less: investment securities gains, net (GAAP)

8,958


Total revenue [B]

$      945,088


$     892,805

Efficiency ratio (non-GAAP) ([A]/[B])

61.58 %


63.05 %

 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)


















At or Quarter Ended March 31, 2019


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

$                       54,216


$                       17,813


$                 8,144


$   461,029


$            18,910


$     24,721,818


$ 25,281,930


$                4,743

Real estate – construction

13,582


1,707


533


1,298


111


1,928,116


1,945,347


(1,410)

Commercial real estate –  mortgage

4,679


322


1,160


109,447


3,811


12,835,777


12,955,196


(27)

Residential real estate – mortgage

78,538


22,384


9,007


163,463


59,167


13,063,837


13,396,396


929

Equity lines of credit

15,355


4,035


1,471


34,999



2,660,447


2,716,307


575

Equity loans

2,920


1,050


34


9,840


26,188


248,137


288,169


(81)

Credit card

9,394


7,465


18,499




797,474


832,832


15,243

Consumer – direct

35,620


20,432


17,251


4,725


3,854


2,452,034


2,533,916


53,874

Consumer – indirect

78,610


24,600


7,781


21,843



3,674,618


3,807,452


27,666

Total loans

$                     292,914


$                       99,808


$              63,880


$   806,644


$         112,041


$     62,382,258


$ 63,757,545


$           101,512

Loans held for sale

$                               —


$                               —


$                      —


$             —


$                   —


$       1,273,821


$   1,273,821


$                     —


















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


$                     —

















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

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


$                      —

















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

Total loans

$                     214,832


$                       90,027


$              45,904


$   647,210


$         101,985


$     61,107,903


$ 62,207,861


$              67,718

Loans held for sale

$                               —


$                               —


$                      —


$             —


$                   —


$            76,401


$        76,401


$                      —

 

BBVA COMPASS BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)












2019


2018


March 31


December 31


September 30


June 30


March 31

Assets:










Cash and due from banks

$    1,143,541


$      1,217,319


$       1,122,747


$    1,138,034


$    1,098,345

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

4,864,920


2,115,307


2,404,164


2,438,585


2,424,987

Cash and cash equivalents

6,008,461


3,332,626


3,526,911


3,576,619


3,523,332

Trading account assets

306,123


237,656


216,749


277,694


216,465

Debt securities available for sale

9,297,018


10,981,216


11,134,860


11,293,724


11,434,152

Debt securities held to maturity 

4,575,041


2,885,613


2,490,568


2,198,186


1,975,729

Loans held for sale

1,273,821


68,766


73,569


52,041


76,401

Loans

63,757,545


65,186,554


64,457,279


63,290,977


62,207,861

Allowance for loan losses

(966,022)


(885,242)


(875,393)


(860,000)


(832,071)

Net loans

62,791,523


64,301,312


63,581,886


62,430,977


61,375,790

Premises and equipment, net

1,125,676


1,152,958


1,155,795


1,170,798


1,189,253

Bank owned life insurance

740,764


736,171


731,527


728,703


724,600

Goodwill

4,983,296


4,983,296


4,983,296


4,983,296


4,983,296

Other assets

2,740,863


2,267,560


2,152,495


2,042,624


2,109,484

Total assets

$ 93,842,586


$   90,947,174


$     90,047,656


$ 88,754,662


$ 87,608,502

Liabilities:










Deposits:










Noninterest bearing

$ 20,403,716


$   20,183,876


$     20,968,391


$ 21,433,218


$ 21,792,498

Interest bearing

53,976,592


51,984,111


49,409,666


48,714,490


48,147,914

Total deposits

74,380,308


72,167,987


70,378,057


70,147,708


69,940,412

FHLB and other borrowings

4,011,160


3,987,590


5,045,302


4,157,284


3,322,940

Federal funds purchased and securities sold under agreements to repurchase

188,024


102,275


78,004


185,511


5,933

Other short-term borrowings

30,975



68,714


81,547


29,999

Accrued expenses and other liabilities

1,504,582


1,176,793


1,135,092


991,968


1,165,079

Total liabilities

80,115,049


77,434,645


76,705,169


75,564,018


74,464,363

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

14,542,166


14,545,849


14,695,197


14,699,773


14,814,744

Retained deficit

(927,877)


(1,107,198)


(1,302,525)


(1,476,614)


(1,660,417)

Accumulated other comprehensive loss

(148,135)


(186,848)


(311,422)


(293,323)


(271,431)

Total BBVA Compass Bancshares, Inc. shareholder's equity

13,697,859


13,483,508


13,312,955


13,161,541


13,114,601

Noncontrolling interests

29,678


29,021


29,532


29,103


29,538

Total shareholder's equity

13,727,537


13,512,529


13,342,487


13,190,644


13,144,139

Total liabilities and shareholder's equity

$ 93,842,586


$   90,947,174


$     90,047,656


$ 88,754,662


$ 87,608,502

 

BBVA COMPASS BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)












Three Months Ended


2019


2018


March 31


December 31


September 30


June 30


March 31

Interest income:










Interest and fees on loans

$    800,488


$        787,858


$          751,470


$    711,006


$    663,935

Interest on debt securities available for sale

53,522


59,028


53,201


53,792


56,602

Interest on debt securities held to maturity

29,495


19,993


16,110


13,062


12,426

Interest on trading account assets

539


704


833


924


750

Interest and dividends on other earning assets

22,968


19,340


17,449


14,916


11,875

Total interest income

907,012


886,923


839,063


793,700


745,588

Interest expense:










Interest on deposits

182,354


163,722


139,898


116,323


97,347

Interest on FHLB and other borrowings

37,626


36,573


37,131


31,912


24,756

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

3,747


3,849


3,169


1,399


536

Interest on other short-term borrowings

196


591


579


567


344

Total interest expense

223,923


204,735


180,777


150,201


122,983

Net interest income

683,089


682,188


658,286


643,499


622,605

Provision for loan losses

182,292


122,147


94,964


91,280


57,029

Net interest income after provision for loan losses

500,797


560,041


563,322


552,219


565,576

Noninterest income:










Service charges on deposit accounts

58,908


61,606


60,325


58,581


56,161

Card and merchant processing fees

46,002


46,982


44,219


44,048


39,678

Investment services sales fees

26,696


24,476


28,286


29,782


30,108

Investment banking and advisory fees

18,857


15,286


13,956


24,546


23,896

Money transfer income

21,981


23,632


23,441


23,920


20,688

Asset management fees

10,767


10,909


11,143


10,989


10,770

Corporate and correspondent investment sales

6,892


10,774


12,490


16,355


12,056

Mortgage banking

4,937


3,755


6,717


7,964


8,397

Bank owned life insurance

4,584


4,635


4,597


4,375


4,215

Investment securities gains, net

8,958





Other

49,178


68,551


53,285


49,459


51,856

Total noninterest income

257,760


270,606


258,459


270,019


257,825

Noninterest expense:










Salaries, benefits and commissions

292,716


285,820


292,679


286,852


289,440

Equipment

65,394


66,806


63,739


63,660


63,360

Professional services

63,896


79,529


68,403


68,577


60,645

Net occupancy

40,941


41,161


42,514


42,671


40,422

Money transfer expense

14,978


15,995


16,120


16,302


13,721

Marketing

10,393


15,884


12,381


11,814


8,787

Communications

5,401


9,241


10,827


5,251


5,263

Other

88,254


87,556


98,847


84,418


81,275

Total noninterest expense

581,973


601,992


605,510


579,545


562,913

Net income before income tax expense

176,584


228,655


216,271


242,693


260,488

Income tax expense

35,603


32,829


41,756


58,295


51,798

Net income

140,981


195,826


174,515


184,398


208,690

Less: net income attributable to noncontrolling interests

556


499


426


595


461

Net income attributable to BBVA Compass Bancshares, Inc.

$    140,425


$        195,327


$          174,089


$    183,803


$    208,229

 

Cision

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