BBVA Compass Bancshares, Inc. reports first quarter 2014 earnings of $114 million

- Total loans end the quarter at $52.8 billion, up 15 percent from prior year levels

- Total deposits increase 9 percent to $57.1 billion, driven by a 19 percent increase in noninterest bearing deposits

- Key credit quality indicators continue to strengthen; nonperforming asset ratio drops to 0.95 percent from 1.93 percent, net charge-off ratio falls to 0.24 percent

- Stress tests results reflect strong capital position; regulatory capital ratios remain significantly above "well-capitalized" guidelines

- Robust loan demand drives balance sheet growth

News provided by

BBVA Compass

Apr 30, 2014, 04:42 ET

HOUSTON, April 30, 2014 /PRNewswire/ -- BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income attributable to shareholder of $114 million for the first quarter of 2014. This represented a 4 percent increase from the $110 million earned in the first quarter of 2013 and a 66 percent increase from the $69 million earned in the fourth quarter of 2013. Return on average assets and return on average tangible equity for the first quarter of 2014 were 0.64 percent and 7.18 percent, respectively.

"The strong balance sheet growth BBVA Compass delivered in the first quarter reflects the strength of our franchise, our relentless focus on our customers and our ability to quickly adapt our products and services to meet their changing needs," said Manolo Sanchez, chairman and CEO of BBVA Compass. "Momentum gained throughout 2013 continued as total loans increased 15 percent, fueled primarily by robust C&I demand. Deposit growth was also healthy, particularly noninterest bearing deposits which increased 19 percent."

Sanchez noted that with the low-interest rate environment continuing to impact revenue growth throughout the financial industry, improving operational efficiencies and disciplined expense management are priorities. Accordingly, total noninterest expenses declined 5 percent year-over-year. Credit quality metrics experienced further improvement as the nonperforming asset ratio dropped to 0.95 percent and net charge-offs as a percentage of average loans fell to 0.24 percent.

The announcement in late March that the Federal Reserve didn't object to BBVA Compass Bancshares, Inc.'s capital plan, and the acquisition of Portland, Ore.-based digital banking service pioneer Simple were among the highlights of the quarter, Sanchez said.  "The recently completed stress tests are further confirmation of our strong capital position, our ability to generate retained earnings and our capacity to absorb significant stress," he said. "At the same time, we also recognize the rapid technology-driven change that is transforming the financial services industry. Simple has created a customer experience unmatched in the digital banking world, and its acquisition is another example of our commitment to innovation and to providing our customers the ability to bank anytime, anywhere."

About BBVA Compass
BBVA Compass Bancshares, Inc. is a Sunbelt-based bank holding company whose lead subsidiary, BBVA Compass, operates 684 branches, including 352 in Texas, 89 in Alabama, 78 in Arizona, 62 in California, 45 in Florida, 38 in Colorado and 20 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 and was recently awarded the 2013 Celent Model Bank Award for its new core banking platform. Additional information about BBVA Compass can be found under the Investor Relations tab at www.bbvacompass.com.

About BBVA Group
BBVA Compass Bancshares, Inc. is a wholly owned subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a customer-centric global financial services group founded in 1857. The Group has a solid position in Spain, is the largest financial institution in Mexico and has leading franchises in South America and the Sunbelt region of the United States. Its diversified business is geared toward high-growth markets and 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. The Group is present in the main sustainability indexes. More information about the BBVA Group can be found at www.bbva.com.

Forward-Looking Statements 
Certain statements in this press release may contain forward-looking statements about the Company and its industry that involve substantial risks and uncertainties. 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. 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 on March 28, 2014.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(In thousands)

















Three Months


Ended March 31

%

2014

2013

Change

EARNINGS SUMMARY






Net interest income

$

495,299

$

522,946

(5)

Noninterest income [a]

203,352

191,529

6

 Total revenue [a]

698,651

714,475

(2)

Investment securities gain, net

16,434

14,955

10

Loss on prepayment of FHLB advances

(458)

(1,107)

(59)

Provision for loan losses

37,266

19,615

90

Noninterest expense

518,867

545,665

(5)

 Pretax income

158,494

163,043

(3)

Income tax expense

43,567

52,507

(17)








Net income

114,927

110,536

4








Net income attributable to noncontrolling interests

453

393

15








Net income attributable to shareholder

$

114,474

$

110,143

4
























SELECTED RATIOS






Return on average assets

0.64

%

0.64

%

Return on average tangible equity [b]

7.18

7.47

Average common equity to average assets

15.83

15.96

Average loans to average total deposits

94.08

87.70

Tier I capital ratio

11.52

11.86

Total capital ratio

13.63

14.44

Leverage ratio

9.88

9.48





















Average for Three Months



Ending Balance



Ended March 31

%

March 31

%


2014

2013

 Change 

2014

2013

Change

BALANCE SHEET HIGHLIGHTS













Total loans

$ 51,943,121

$ 45,656,547

14

$ 52,795,787

$ 45,786,302

15

Total investment securities

10,196,527

10,206,331

-

10,027,118

10,392,900

(4)

Earning assets

62,245,698

55,994,068

11

62,930,076

56,304,430

12

Total assets

73,359,144

69,855,226

5

74,957,227

69,745,346

7

Noninterest bearing demand deposits

15,652,987

13,753,943

14

16,322,699

13,688,429

19

Interest bearing transaction accounts

27,073,002

25,890,620

5

27,987,795

26,317,652

6

Total transaction accounts

42,725,989

39,644,563

8

44,310,494

40,006,081

11

Total deposits

55,209,690

52,057,560

6

57,085,210

52,378,931

9

Shareholders' equity

11,615,847

11,148,896

4

11,729,834

11,181,732

5






























[a]  Excludes net gain on sales of investment securities and loss on prepayment of FHLB advances.

[b]  Excludes amortization of intangibles, net of tax, and intangible assets.


BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(In thousands)


















2014

2013


Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

NONPERFORMING ASSETS










Nonaccrual loans

$     388,597

$     441,718

$     543,902

$     589,468

$     683,684

Loans 90 days or more past due [a]

83,490

82,814

98,035

121,215

127,507

TDRS 90 days or more past due

204

1,317

739

363

139

   Total nonperforming loans [b]

472,291

525,849

642,676

711,046

811,330

Other real estate owned, net (OREO)

25,817

23,228

41,493

52,798

69,543

Other repossessed assets

3,313

3,360

3,896

3,224

4,511












   Total nonperforming assets

$     501,421

$     552,437

$     688,065

$     767,068

$     885,384












TDRs accruing and past due less than 90 days

$     202,075

$     208,391

$     225,961

$     243,009

$     246,712












Covered loans [c]

701,158

734,190

832,884

915,755

1,142,321

Covered nonperforming loans [c]

63,664

62,038

76,301

99,480

102,876

Covered nonperforming assets [c]

3,836

4,113

13,319

19,422

23,602












Total nonperforming loans as a % of loans

0.89

%

1.03

%

1.30

%

1.49

%

1.77

%

Total nonperforming loans as a % of loans, excluding covered loans

0.78

0.93

1.16

1.31

1.59

Total nonperforming assets as a % of loans and OREO

0.95

1.09

1.39

1.61

1.93

Total nonperforming assets as a % of loans and OREO, excluding covered assets

0.83

0.97

1.23

1.39

1.70












[a] Excludes loans classified as trouble debt restructuring (TDRs)

[b] Includes loans held for sale

[c] Covered assets includes loans and OREO acquired from the FDIC subject to loss sharing agreements














Three Months Ended


2014

2013


Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

ALLOWANCE FOR LOAN LOSSES










Balance at beginning of period

$     700,719

$     717,937

$     723,511

$     786,018

$     802,853

Net charge-offs (NCO)

30,320

43,378

43,108

86,744

36,450

Provision for loan losses

37,266

26,160

37,534

24,237

19,615

Balance at end of period

$     707,665

$     700,719

$     717,937

$     723,511

$     786,018












Allowance for loan losses as a % of total loans

1.34

%

1.38

%

1.45

%

1.52

%

1.72

%

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

149.84

133.25

111.71

101.75

96.88

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

141.13

126.84

104.34

94.32

88.78

Annualized as a % of average loans:










   NCO - QTD

0.24

0.34

0.35

0.74

0.32

   NCO - YTD

0.24

0.44

0.47

0.54

0.32












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

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(In thousands)
































Three Months Ended March 31


2014

2013

YIELD/RATE ANALYSIS

Average

Income/

Yield/

Average

Income/

Yield/

  (Taxable Equivalent Basis)

Balance

Expense

Rate

Balance

Expense

Rate

Assets













Earning assets:













   Loans

$  51,943,121

$    520,592

4.06

%

$  45,656,547

$    548,023

4.87

%

   Investment securities held to maturity

1,505,398

10,373

2.79

1,491,477

10,853

2.95

   Investment securities available for sale [a]

8,652,584

50,994

2.39

8,521,274

49,148

2.34

   Other earning assets

106,050

566

2.16

131,190

780

2.41















        Total earning assets [a]

62,207,153

582,525

3.80

55,800,488

608,804

4.42

Allowance for loan losses

(702,748)





(800,282)




Unrealized gain (loss) on securities













   available for sale

38,545





193,580




Other assets

11,816,194





14,661,440



















          Total assets


$  73,359,144





$  69,855,226



















Liabilities and Shareholders' Equity













Interest bearing liabilities:













   Interest bearing demand deposits

$    7,491,112

2,997

0.16

$    6,832,762

2,834

0.17

   Savings and money market accounts

19,581,890

15,666

0.32

19,057,858

21,342

0.45

  Certificates and other time deposits

12,360,560

34,491

1.13

12,283,729

32,155

1.06

  Foreign office deposits

123,141

62

0.20

129,268

80

0.25

 Total interest bearing deposits

39,556,703

53,216

0.55

38,303,617

56,411

0.60

FHLB and other borrowings

4,289,004

16,364

1.55

4,221,034

15,792

1.52

Federal funds purchased and securities













  sold under agreement to repurchase

941,171

500

0.22

1,109,300

580

0.21

Other short-term borrowings

12,553

26

0.84

10,881

72

2.68

Total interest bearing liabilities

44,799,431

70,106

0.63

43,644,832

72,855

0.68

Noninterest bearing deposits

15,652,987





13,753,943




Other noninterest bearing liabilities

1,290,879





1,307,555




Total liabilities

61,743,297





58,706,330




Shareholders' equity

11,615,847





11,148,896




Total liabilities and shareholders' equity

$ 73,359,144





$  69,855,226




Net interest income/net interest spread


$    512,419

3.17

%

$    535,949

3.74

%

Net interest margin




3.34

%



3.90

%

 Total taxable equivalent adjustment


17,120





13,003

















     Net interest income


$    495,299





$    522,946
































[a]  Excludes adjustment for market valuation.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(In thousands)




































Three Months


Three Months Ended


Ended March 31

%

2014

2013


2014

2013

Change

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

NONINTEREST INCOME
































Service charges on deposit accounts

$       53,391

$      55,488

(4)

$   53,391

$   56,812

$   54,229

$      54,884

$     55,488

Card and merchant processing fees

24,304

24,624

(1)

24,304

25,320

26,132

26,113

24,624

Retail investment sales

26,564

24,379

9

26,564

25,552

22,034

25,311

24,379

Asset management fees

10,758

10,069

7

10,758

9,796

10,438

10,636

10,069

Corporate and correspondent investment sales

8,656

9,396

(8)

8,656

8,720

8,011

9,547

9,396

Mortgage banking income

4,276

11,470

(63)

4,276

3,178

7,610

13,141

11,470

Bank owned life insurance

3,967

4,405

(10)

3,967

4,846

4,222

4,274

4,405

Other income

71,436

51,698

38

71,436

56,850

78,309

64,150

51,698



















203,352

191,529

6

203,352

191,074

210,985

208,056

191,529

Investment securities gain, net

16,434

14,955

10

16,434

(1,659)

-

18,075

14,955

Gain (loss) on prepayment of FHLB and other borrowings

(458)

(1,107)

(59)

(458)

-

-

22,882

(1,107)

     Total noninterest income

$     219,328

$     205,377

7

$ 219,328

$ 189,415

$ 210,985

$    249,013

$   205,377


































NONINTEREST EXPENSE
































Salaries, benefits, and commissions

$     262,569

$     251,323

4

$ 262,569

$ 261,643

$ 244,373

$    247,905

$   251,323

FDIC indemnification expense

31,618

86,307

(63)

31,618

55,453

55,064

70,335

86,307

Equipment 

53,738

47,615

13

53,738

59,070

50,483

50,891

47,615

Professional services

46,399

39,274

18

46,399

58,204

44,195

49,729

39,274

Net occupancy 

38,957

37,894

3

38,957

40,115

39,257

40,471

37,894

Marketing 

8,524

9,068

(6)

8,524

9,212

9,146

9,926

9,068

Communications

6,347

6,811

(7)

6,347

7,392

7,080

4,682

6,811

Amortization of intangibles

12,534

16,040

(22)

12,534

14,305

14,884

15,462

16,040

Other expense

58,181

51,333

13

58,181

71,277

57,657

65,299

51,333


































     Total noninterest expense

$     518,867

$     545,665

(5)

$ 518,867

$ 576,671

$ 522,139

$    554,700

$   545,665

SOURCE BBVA Compass

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