BBVA Compass reports net income of $282 million for the first nine months of 2016

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BBVA Compass

Oct 27, 2016, 09:30 ET

HOUSTON, Oct. 27, 2016 /PRNewswire/ --

Third quarter net income of $120 million

BBVA Compass corporate logo
BBVA Compass corporate logo
  • Focus on targeted loan and deposit growth, spreads and capital optimization
    • Average total loans of $61.1 billion up 1 percent from year ago levels
      • Newly funded customer loans of $11.1 billion in the first nine months of 2016
  • Average total deposits of $68.0 billion up $4.0 billion, or 6 percent, from prior year
    • Deposit growth fueled by 7 percent increase in noninterest bearing deposits
    • Noninterest bearing deposits represent 30.5 percent of total deposits
  • Total revenue up 2 percent in the quarter as both net interest income and noninterest income post gains
    • Net interest income increases $7 million from prior year levels and $11 million from 2Q16 levels
    • Percentage net interest margin increases 3 basis points from year ago quarter and 7 basis points from 2Q16 levels
    • Noninterest income totals $264 million, up $10 million or 4 percent from year ago
  • Expenses well contained in the quarter; up 3 percent on a year-to-date basis
  • Credit quality metrics remain sound; allowance to loan ratio at 1.43 percent
    • Net charge-off ratio of 30 basis points, down from 43 basis points in 2Q16
    • Provision expense for the quarter exceeded net charge-offs by $19 million
    • Nonperforming loan ratio at 1.91 percent; 0.99 percent excluding energy portfolio
  • Strong capital position and focused on capital optimization
    • Regulatory capital ratios1 remain significantly above "well-capitalized" guidelines
    • Common Equity Tier 1 capital ratio (phased-in)1 increases to 11.28 percent

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $120 million for the third quarter of 2016 compared to $130 million earned during the third quarter of 2015. Return on average assets and return on average tangible equity2 for the third quarter of 2016 were 0.53 percent and 6.21 percent, respectively.

Net income for the first nine months of 2016 was $282 million compared to $416 million earned during the first nine months of 2015. Return on average assets and return on average tangible equity2 for the first nine months of 2016 were 0.41 percent and 4.92 percent, respectively.

"Our results for the third quarter reflect our focus on targeted loan and deposit growth, improving spreads on earning assets and optimization of our capital base," said Manolo Sánchez, chairman and CEO of BBVA Compass. "We believe this to be a prudent strategy given the low interest rate environment and tempered economic growth forecast in the U.S. At the same time, we continue to move forward with our digital transformation efforts to improve the customer experience and increase our digital sales capabilities to meet our customers' needs."

"Average total loans for the third quarter of 2016 were $61.1 billion, an increase of 1 percent," Sánchez noted. "While year-over-year growth was muted by strategic loan sales, during the first nine months of 2016 we funded $11.1 billion in customer loans. Equally important, our loan portfolio is fully funded by our ability to generate deposits.  Average deposits totaled $68.0 billion, an increase of $4.0 billion or 6 percent. Growth in this portfolio was led by a 7 percent increase in average noninterest bearing deposits which now represent 30.5 percent of total deposits."

Total revenue increased 2 percent from the prior year for both the three and nine month periods. Net interest income totaled $515 million in the quarter, an increase of 1 percent from prior year levels. The percent net interest margin in the third quarter of 2016 was 2.73 percent, up 3 basis points from a year ago and 7 basis points from second quarter 2016 levels. This improvement reflected the company's focus on spread management and disciplined balance sheet growth.

Noninterest income for the quarter totaled $264 million, an increase of 4 percent compared to $254 million recorded in the third quarter of 2015. Growth was widespread as all major fee-based businesses posted gains, most notably in investment banking and advisory fees and a rebound in mortgage banking income. Expense growth was also well-contained in the quarter with total noninterest expense totaling $556 million, a slight decrease compared to the year ago quarter. On a year-to-date basis, total expenses have increased just 3 percent, reflecting the company's focus on disciplined expense management.

Credit quality metrics remained sound and further reflect the continued active management of our energy portfolio. Provision expense for the quarter totaled $65 million compared to $87 million in the second quarter of 2016 and exceeded net charge-offs by $19 million. Net charge-offs as a percentage of total loans were 30 basis points compared to 43 basis points for the second quarter of 2016. The allowance for loan losses as a percentage of total loans ended the quarter at 1.43 percent, up from the 1.37 percent at the end of the second quarter this year and 1.20 percent at the end of the third quarter a year ago. Nonperforming loans as a percentage of total loans were 1.91 percent compared to 1.76 percent at the end of the second quarter 2016. 

"Our asset quality metrics continue to reflect our commitment to maintaining sound underwriting standards and a strong risk profile," Sánchez said. "This commitment is reflected in the actions we have taken to address the stress on our energy portfolio as a result of a prolonged period of low oil prices. Our energy portfolio totaled $3.3 billion at the end of the quarter, down $410 million compared to second quarter 2016 levels and $829 million compared to first quarter 2016 levels. Our energy portfolio now represents 5.5 percent of our total loan portfolio compared to 6.0 percent at the end of the second quarter this year and 6.7 percent at the end of the first quarter."

Total shareholder's equity ended the third quarter of 2016 at $12.8 billion, a 3 percent increase from $12.4 billion at the end of the third quarter of 2015. Each of the company's regulatory capital ratios remain significantly above "well-capitalized" guidelines. The total capital ratio ended the quarter at 14.18 percent1 compared to 13.38 percent a year ago and the CET1 ratio rose to 11.28 percent1 from 10.68 percent1 at the end of the third quarter of 2015.

1 Regulatory capital ratios at September 30, 2016, are estimated

2 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.

About BBVA Compass
BBVA Compass Bancshares, Inc. is a Sunbelt-based bank holding company whose principal subsidiary, BBVA Compass, operates 674 branches, including 345 in Texas, 89 in Alabama, 75 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 (4th). BBVA Compass was recently named Best Digital Bank in North America by global finance magazine Euromoney and the best regional bank in the South and West, as well as earning best mobile app, in Money magazine's 2015-2016 list of the Best Banks in America. 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 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 is the largest financial institution in Spain and Mexico, and has leading franchises in South America and the Sunbelt region of the United States. It also is the leading shareholder in Garanti, Turkey's largest bank based on market capitalization. Its diversified business is focused on 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 bbva.com.

On April 6, 2016, BBVA filed its annual report on Form 20-F for the year ended December 31, 2015, with the Securities and Exchange Commission. A copy can be accessed on the BBVA website at http://shareholdersandinvestors.bbva.com/TLBB/tlbb/bbvair/ing/share/adrs/index.jsp. Holders of BBVA's American Depositary Receipts (ADRs) may request a hard copy of the Form 20-F for the year ended December 31, 2015, including its complete audited financial statements, free of charge. To request a copy, contact Ed Bilek at [email protected].

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 March 2, 2016, as updated by our subsequent SEC filings.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)





















Three Months Ended September 30,

%

Nine Months Ended September 30,

%







2016

2015 [d]

 Change 

2016

2015 [d]

 Change 





EARNINGS SUMMARY

















Net interest income

$       514,809

$       507,874

1

$    1,535,929

$    1,508,888

2





Noninterest income [a]

263,765

253,984

4

765,179

756,327

1





Total revenue [a]

778,574

761,858

2

2,301,108

2,265,215

2





Investment securities gain, net

—

6,736

 NM 

30,037

66,967

(55)





Loss on prepayment of FHLB advances

—

—

 NM 

—

(6,118)

 NM 





Provision for loan losses

65,107

29,151

123

265,025

117,331

126





Noninterest expense

556,271

557,375

—

1,689,452

1,636,158

3





Pretax income

157,196

182,068

(14)

376,668

572,575

(34)





Income tax expense

36,845

52,428

(30)

94,548

156,865

(40)





Net income

120,351

129,640

(7)

282,120

415,710

(32)





Net income attributable to noncontrolling interests

523

491

7

1,569

1,738

(10)





Net income attributable to BBVA Compass Bancshares, Inc.

$       119,828

$       129,149

(7)

$       280,551

$       413,972

(32)
























SELECTED RATIOS

















Return on average assets

0.53 %

0.57 %


0.41 %

0.63 %







Return on average tangible equity [b]

6.21

7.11


4.92

7.79







Average common equity to average assets

13.84

13.77


13.64

14.00







Average loans to average total deposits

89.82

94.74


91.03

94.94







Common equity tier I capital (CET1) [c]

11.28

10.68


11.28

10.68







Tier I capital ratio [c]

11.64

10.74


11.64

10.74







Total capital ratio [c]

14.18

13.38


14.18

13.38







Leverage ratio [c]

9.08

8.69


9.08

8.69


































































Average for Three Months


Average for Nine Months


Ending Balance



Ended September 30,

%

Ended September 30,

%

September 30,

%


2016

2015

 Change 

2016

2015

 Change 

2016

2015

 Change 

BALANCE SHEET HIGHLIGHTS













Total loans

$  61,060,433

$  60,632,304

1

$  61,867,590

$  59,737,187

4

$  60,313,126

$  60,921,379

(1)

Total investment securities

12,648,198

11,883,785

6

12,542,222

11,604,103

8

12,757,735

12,161,461

5

Earning assets

77,978,443

77,369,201

1

78,734,945

75,724,883

4

77,257,835

77,537,128

—

Total assets

90,900,339

89,886,097

1

91,878,427

87,697,522

5

89,356,838

89,477,420

—

Noninterest bearing demand deposits

20,715,562

19,312,087

7

20,432,380

18,749,741

9

20,585,598

19,060,137

8

Interest bearing transaction accounts

32,487,598

31,364,714

4

32,773,911

31,172,051

5

32,706,487

31,813,690

3

Total transaction accounts

53,203,160

50,676,801

5

53,206,291

49,921,792

7

53,292,085

50,873,827

5

Total deposits

67,979,739

64,001,250

6

67,967,135

62,921,841

8

67,587,337

64,478,407

5

Shareholder's equity

12,810,740

12,379,303

3

12,763,461

12,281,245

4

12,819,190

12,443,728

3

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

[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.

[d] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc in June 2016.

NM = Not meaningful

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)







2016

2015


September 30

June 30

March 31

December 31

September 30

NONPERFORMING ASSETS









Nonaccrual loans [a]

$   1,086,018

$  1,026,592

$  819,034

$     407,045

$      380,930

Loans 90 days or more past due [b]

65,525

60,320

60,490

68,629

73,588

TDRs 90 days or more past due

618

998

491

874

678

Total nonperforming loans [a]

1,152,161

1,087,910

880,015

476,548

455,196

Other real estate owned, net (OREO)

21,670

18,225

17,877

20,862

23,762

Other repossessed assets

6,900

9,380

8,601

8,774

3,331

Total nonperforming assets

$   1,180,731

$  1,115,515

$  906,493

$     506,184

$      482,289











TDRs accruing and past due less than 90 days

$      116,941

$     118,222

$  120,316

$     150,038

$      154,397











Total nonperforming loans as a % of loans

1.91 %

1.76 %

1.41 %

0.78 %

0.75 %

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

1.96

1.80

1.46

0.82

0.79













Three Months Ended


2016

2015


September 30

June 30

March 31

December 31

September 30

ALLOWANCE FOR LOAN LOSSES









Balance at beginning of period

$      843,051

$     822,440

$  762,673

$     722,122

$      721,471

Net charge-offs (NCO)

46,078

66,062

53,478

35,756

28,500

Provision for loan losses

65,107

86,673

113,245

76,307

29,151

Balance at end of period

$      862,080

$     843,051

$  822,440

$     762,673

$      722,122











Allowance for loan losses as a % of total loans

1.43 %

1.37 %

1.32 %

1.24 %

1.20 %

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

74.82

77.49

93.46

160.04

158.64

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

73.01

75.58

90.73

150.67

149.73











Annualized as a % of average loans:









NCO - QTD

0.30

0.43

0.35

0.23

0.19

NCO - YTD

0.36

0.39

0.35

0.19

0.18












[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)






























September 30, 2016

June 30, 2016

March 31, 2016

December 31, 2015


Recorded
Investment

Total
Commitment

Nonaccrual

Recorded
Investment

Total
Commitment

Nonaccrual

Recorded
Investment

Total
Commitment

Nonaccrual

Recorded
Investment

Total
Commitment

Nonaccrual

ENERGY PORTFOLIO

Exploration and production

$    1,722,052

$    4,244,802

$    574,813

$    1,935,062

$    4,456,062

$    620,612

$    2,140,376

$    5,034,557

$    469,882

$    2,040,748

$    5,186,887

$    91,947

Midstream

1,207,650

3,209,931

12,982

1,395,584

3,315,382

21,268

1,541,465

3,426,768

—

1,355,503

3,293,216

—

Drilling oil and support services

261,748

468,728

—

270,420

495,563

—

292,769

504,455

—

266,871

554,782

—

Refineries and terminals

130,689

254,130

431

131,626

201,399

430

134,211

202,659

475

137,904

211,258

520

Other

—

—

—

—

—

—

42,578

109,413

—

39,200

109,782

—

Total energy portfolio

$    3,322,139

$    8,177,591

$    588,226

$    3,732,692

$    8,468,406

$    642,310

$    4,151,399

$    9,277,852

$    470,357

$    3,840,226

$    9,355,925

$    92,467



























September 30, 2016


June 30, 2016


March 31, 2016


December 31, 2015



As a % of
Energy Loans

As a % of Total
Loans


As a % of
Energy Loans

As a % of Total
Loans


As a % of
Energy Loans

As a % of Total
Loans


As a % of
Energy Loans

As a % of Total
Loans

ENERGY PORTFOLIO























Exploration and production

51.8 %

2.9 %


51.8 %

3.1 %


51.6 %

3.4 %


53.2 %

3.4 %

Midstream

36.4

2.0


37.4

2.3


37.1

2.5


35.3

2.2

Drilling oil and support services

7.9

0.4


7.3

0.4


7.1

0.5


6.9

0.4

Refineries and terminals

3.9

0.2


3.5

0.2


3.2

0.2


3.6

0.2

Other

—

—


—

—


1.0

0.1


1.0

0.1

Total energy portfolio

100.0 %

5.5 %


100.0 %

6.0 %


100.0 %

6.7 %


100.0 %

6.3 %

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)















Three Months Ended September 30,


2016

2015 [b]


Average
Balance

Income/
Expense

Yield/
Rate

Average
Balance

Income/
Expense

Yield/
Rate

YIELD/RATE ANALYSIS











(Taxable Equivalent Basis)











Assets











Earning assets:











Loans

$  61,060,433

$  574,748

3.74 %

$  60,632,304

$  555,713

3.64 %

Investment securities available for sale [a]

11,373,321

48,450

1.69

10,507,688

47,360

1.79

Investment securities held to maturity

1,249,282

9,701

3.09

1,366,529

10,119

2.94

Other earning assets

4,269,812

17,490

1.63

4,853,112

16,097

1.32

Total earning assets [a]

77,952,848

650,389

3.32

77,359,633

629,289

3.23

Allowance for loan losses

(848,067)




(725,871)



Unrealized gain (loss) on securities available for sale

25,595




9,568



Other assets

13,769,963




13,242,767



Total assets

$  90,900,339




$  89,886,097
















Liabilities and Shareholder's Equity











Interest bearing liabilities:











Interest bearing demand deposits

$    6,824,519

$      4,077

0.24

$    6,949,920

$      2,943

0.17

Savings and money market accounts

25,663,079

24,395

0.38

24,414,794

22,260

0.36

Certificates and other time deposits

14,670,360

47,507

1.29

13,158,705

42,990

1.30

Foreign office deposits

106,219

52

0.19

165,744

89

0.21

    Total interest bearing deposits

47,264,177

76,031

0.64

44,689,163

68,282

0.61

FHLB and other borrowings

4,121,742

21,315

2.06

6,331,187

20,422

1.28

Federal funds purchased and securities sold under agreement to repurchase

232,451

4,934

8.44

677,351

2,506

1.47

Other short-term borrowings

3,737,212

13,453

1.43

4,370,077

11,129

1.01

Total interest bearing liabilities

55,355,582

115,733

0.83

56,067,778

102,339

0.72

Noninterest bearing deposits

20,715,562




19,312,087



Other noninterest bearing liabilities

2,018,455




2,126,929



Total liabilities

78,089,599




77,506,794



Shareholder's equity

12,810,740




12,379,303



Total liabilities and shareholder's equity

$  90,900,339




$  89,886,097
















Net interest income/ net interest spread


534,656

2.49 %


526,950

2.51 %

Net yield on earning assets




2.73 %




2.70 %













Total taxable equivalent adjustment


19,847




19,076














Net interest income


$  514,809




$  507,874


[a] Excludes adjustment for market valuation.

[b] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)















Nine Months Ended September 30,


2016

2015 [b]


Average
Balance

Income/
Expense

Yield/
Rate

Average
Balance

Income/
Expense

Yield/
Rate

YIELD/RATE ANALYSIS











  (Taxable Equivalent Basis)











Assets











Earning assets:











   Loans

$  61,867,590

$  1,727,822

3.73 %

$  59,737,187

$  1,659,303

3.71 %

   Investment securities available for sale [a]

11,258,000

131,253

1.56

10,193,624

146,583

1.92

   Investment securities held to maturity

1,269,161

29,293

3.08

1,366,299

29,782

2.91

   Other earning assets

4,325,133

53,936

1.67

4,383,593

41,905

1.28

        Total earning assets [a]

78,719,884

1,942,304

3.30

75,680,703

1,877,573

3.32

Allowance for loan losses

(823,372)




(707,459)



Unrealized gain (loss) on securities available for sale

15,061




44,180



Other assets

13,966,854




12,680,098



Total assets

$  91,878,427




$  87,697,522
















Liabilities and Shareholder's Equity











Interest bearing liabilities:











Interest bearing demand deposits

$    6,912,147

11,867

0.23

$    7,281,588

8,868

0.16

Savings and money market accounts

25,861,764

75,896

0.39

23,890,463

70,465

0.39

Certificates and other time deposits

14,652,400

142,856

1.30

12,832,829

123,546

1.29

Foreign office deposits

108,444

160

0.20

167,220

257

0.21

 Total interest bearing deposits

47,534,755

230,779

0.65

44,172,100

203,136

0.61

FHLB and other borrowings

4,543,350

58,919

1.73

5,742,906

67,068

1.57

Federal funds purchased and securities sold under agreement to repurchase

569,772

16,525

3.87

832,854

5,534

0.89

Other short-term borrowings

3,912,069

41,281

1.41

3,973,734

36,668

1.23

        Total interest bearing liabilities

56,559,946

347,504

0.82

54,721,594

312,406

0.76

Noninterest bearing deposits

20,432,380




18,749,741



Other noninterest bearing liabilities

2,122,640




1,944,942



Total liabilities

79,114,966




75,416,277



Shareholder's equity

12,763,461




12,281,245



Total liabilities and shareholder's equity

$  91,878,427




$  87,697,522
















Net interest income/ net interest spread


1,594,800

2.48 %


1,565,167

2.56 %

Net yield on earning assets




2.71 %




2.77 %













     Total taxable equivalent adjustment


58,871




56,279














     Net interest income


$  1,535,929




$  1,508,888


[a] Excludes adjustment for market valuation.

[b] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)



















Nine Months


Three Months Ended


Ended September 30,

%

2016

2015 [a]


2016

2015

 Change 

September 30

June 30

March 31 [a]

December 31

September 30

NONINTEREST INCOME















Service charges on deposit accounts

$     158,393

$     161,891

(2)

$        55,047

$    51,921

$     51,425

$       54,357

$        54,917

Card and merchant processing fees

92,507

83,918

10

31,256

31,509

29,742

28,900

29,024

Retail investment sales

79,689

77,574

3

30,137

26,985

22,567

24,040

26,055

Investment banking and advisory fees

86,324

84,975

2

34,385

28,335

23,604

20,260

17,842

Money transfer income

75,960

68,702

11

25,058

26,477

24,425

24,735

24,868

Asset management fees

25,969

24,449

6

8,778

8,386

8,805

8,745

7,918

Corporate and correspondent investment sales

21,490

20,290

6

6,974

10,103

4,413

9,710

6,047

Mortgage banking

5,410

21,269

 NM 

8,242

602

(3,434)

5,989

554

Bank owned life insurance

13,041

13,527

(4)

4,170

4,455

4,416

5,135

4,345

Other

206,396

199,732

3

59,718

67,789

78,889

67,536

82,414


765,179

756,327

1

263,765

256,562

244,852

249,407

253,984

Investment securities gains, net

30,037

66,967

(55)

—

21,684

8,353

14,689

6,736

Loss on prepayment of FHLB and other borrowings, net

—

(6,118)

 NM 

—

—

—

(1,898)

—

Total noninterest income

$     795,216

$     817,176

(3)

$      263,765

$  278,246

$   253,205

$     262,198

$      260,720

















NONINTEREST EXPENSE















Salaries, benefits and commissions

$     836,067

$     804,828

4

$      279,132

$  277,166

$   279,769

$     276,647

$      271,143

Professional services

178,396

154,134

16

63,628

58,401

56,367

64,450

55,476

Equipment

179,646

174,311

3

59,697

59,508

60,441

57,739

58,414

Net occupancy

120,881

119,731

1

41,610

39,999

39,272

41,304

39,706

Money transfer expense

50,048

44,016

14

16,680

17,768

15,600

16,334

16,514

Marketing

37,531

32,331

16

13,316

11,506

12,709

9,447

10,624

Communications

15,640

17,104

(9)

5,002

5,463

5,175

5,423

5,856

Amortization of intangibles

12,280

30,083

(59)

4,093

4,094

4,093

9,125

9,507

Other

258,963

259,620

—

73,113

67,132

118,718

98,226

90,135

Total noninterest expense

$  1,689,452

$  1,636,158

3

$      556,271

$  541,037

$   592,144

$     578,695

$      557,375


















NM = Not meaningful

[a] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)











Three Months Ended September 30,

Nine Months Ended September 30,


2016

2015 [a]

2016

2015 [a]

NON-GAAP RECONCILIATION
















Computation of Average Tangible Equity:







  Total stockholder's equity (average)

$  12,810,740

$  12,379,303

$  12,763,461

$  12,281,245

  Less: Goodwill and other intangibles (average)

5,101,819

5,147,993

5,108,852

5,148,781

  Average tangible equity [B]

$    7,708,921

$    7,231,310

$    7,654,609

$    7,132,464

   Net income [A]

$       120,351

$       129,640

$       282,120

$       415,710

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

6.21 %

7.11 %

4.92 %

7.79 %

[a] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

















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 or
Impaired

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

$                       -

















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 or
Impaired

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.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)





At or Quarter Ended March 31, 2016

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

$                       17,837

$                         9,947

$                 3,012

$    568,154

$              9,545

$     26,255,552

$ 26,864,047

$              18,057

Real estate – construction

4,345

827

415

5,712

2,664

2,393,548

2,407,511

(302)

Commercial real estate – mortgage

7,865

829

807

71,889

5,425

10,560,579

10,647,394

22

Residential real estate – mortgage

42,126

18,321

1,507

117,602

65,173

13,345,540

13,590,269

961

Equity lines of credit

8,959

3,779

1,010

33,991

-

2,385,631

2,433,370

2,215

Equity loans

7,027

1,447

443

13,925

37,132

487,593

547,567

606

Credit card

4,876

3,850

9,413

-

-

587,166

605,305

8,190

Consumer – direct

8,239

3,201

2,951

682

868

979,711

995,652

8,711

Consumer – indirect

61,460

11,916

4,149

6,386

-

3,505,845

3,589,756

14,769

Covered loans

5,147

2,152

36,783

693

-

379,044

423,819

249

Total loans

$                     167,881

$                       56,269

$              60,490

$    819,034

$         120,807

$     60,880,209

$ 62,104,690

$              53,478

Loans held for sale

$                                  -

$                                   -

$                        -

$                 -

$                      -

$             96,784

$         96,784

$                       -

















At or Quarter Ended December 31, 2015

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

$                         8,197

$                         4,215

$                 3,567

$    161,591

$              9,402

$     25,835,402

$ 26,022,374

$                3,345

Real estate – construction

2,864

91

421

5,908

2,247

2,342,722

2,354,253

(423)

Commercial real estate – mortgage

3,843

1,461

2,237

69,953

33,904

10,341,882

10,453,280

1,260

Residential real estate – mortgage

47,323

19,540

1,961

113,234

67,343

13,743,884

13,993,285

1,269

Equity lines of credit

8,263

4,371

2,883

35,023

-

2,369,275

2,419,815

1,382

Equity loans

6,356

2,194

704

15,614

37,108

518,828

580,804

238

Credit card

5,563

4,622

9,718

-

-

607,456

627,359

7,299

Consumer – direct

7,648

3,801

3,537

561

908

920,416

936,871

6,126

Consumer – indirect

73,438

17,167

5,629

5,027

-

3,393,821

3,495,082

14,548

Covered loans

4,862

3,454

37,972

134

-

394,539

440,961

712

Total loans

$                     168,357

$                       60,916

$              68,629

$    407,045

$         150,912

$     60,468,225

$ 61,324,084

$              35,756

Loans held for sale

$                             227

$                                -

$                        -

$                -

$                     -

$             70,355

$         70,582

$                       -
















BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

















At or Quarter Ended September 30, 2015

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

$                       15,300

$                         3,930

$                 5,202

$    130,370

$              9,635

$     25,471,882

$ 25,636,319

$                3,990

Real estate – construction

1,565

117

426

5,712

2,247

2,305,284

2,315,351

(426)

Commercial real estate – mortgage

4,887

732

5,607

85,975

33,837

10,493,594

10,624,632

437

Residential real estate – mortgage

47,936

15,450

1,230

103,492

71,102

13,658,513

13,897,723

(299)

Equity lines of credit

8,988

4,675

2,411

33,436

-

2,326,898

2,376,408

2,087

Equity loans

6,485

1,807

985

15,104

37,785

549,982

612,148

384

Credit card

5,949

3,621

8,322

-

-

592,090

609,982

6,675

Consumer – direct

16,433

1,988

2,153

635

469

833,311

854,989

6,194

Consumer – indirect

60,018

12,901

4,213

6,053

-

2,818,418

2,901,603

8,970

Covered loans

4,303

3,347

43,039

153

-

407,224

458,066

488

Total loans

$                     171,864

$                       48,568

$              73,588

$    380,930

$         155,075

$     59,457,196

$ 60,287,221

$              28,500

Loans held for sale

$                             416

$                             380

$                        -

$                -

$                     -

$           633,362

$       634,158

$                       -

BBVA COMPASS BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)











2016

2015 [a]

September 30

June 30

March 31 [a]

December 31

September 30

Assets:








Cash and due from banks

$       4,054,423

$    4,829,763

$    5,136,283

$      4,165,880

$       3,949,049

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

372,268

319,644

233,411

330,948

479,207

Cash and cash equivalents

4,426,691

5,149,407

5,369,694

4,496,828

4,428,256

Trading account assets

4,051,461

4,355,025

4,358,533

4,138,132

4,193,506

Investment securities available for sale

11,516,885

11,359,159

11,265,797

11,050,520

10,803,660

Investment securities held to maturity

1,240,850

1,258,253

1,267,953

1,322,676

1,357,801

Loans held for sale

101,843

108,432

96,784

70,582

634,158

Loans

60,211,283

61,679,943

62,104,690

61,324,084

60,287,221

Allowance for loan losses

(862,080)

(843,051)

(822,440)

(762,673)

(722,122)

Net loans

59,349,203

60,836,892

61,282,250

60,561,411

59,565,099

Premises and equipment, net

1,287,457

1,290,738

1,297,539

1,322,378

1,310,995

Bank owned life insurance

712,422

708,143

704,254

700,285

697,023

Goodwill

5,043,197

5,043,197

5,043,197

5,043,197

5,060,197

Other intangible assets

19,296

23,389

27,483

31,576

40,701

Other real estate owned

21,670

18,225

17,877

20,862

23,762

Other assets

1,585,863

1,602,296

1,489,428

1,310,091

1,362,262

Total assets

$     89,356,838

$ 91,753,156

$ 92,220,789

$   90,068,538

$     89,477,420

Liabilities:








Deposits:








Noninterest bearing

$     20,585,598

$ 20,132,164

$ 20,416,248

$   19,291,533

$     19,060,137

Interest bearing

47,001,739

47,618,154

48,503,973

46,690,233

45,418,270

Total deposits

67,587,337

67,750,318

68,920,221

65,981,766

64,478,407

FHLB and other borrowings

3,671,861

5,098,048

4,383,454

5,438,620

6,216,425

Federal funds purchased and securities sold under agreements to repurchase

165,573

386,343

893,786

750,154

639,259

Other short-term borrowings

3,591,223

4,352,428

3,924,781

4,032,644

4,167,897

Accrued expenses and other liabilities

1,521,654

1,439,023

1,375,370

1,240,645

1,531,704

Total liabilities

76,537,648

79,026,160

79,497,612

77,443,829

77,033,692

Shareholder's Equity:








Preferred stock

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

15,020,937

15,022,974

15,152,077

15,160,267

15,237,899

Retained deficit

(2,416,402)

(2,536,230)

(2,658,214)

(2,696,953)

(2,788,111)

Accumulated other comprehensive loss

(46,644)

(20,500)

(31,945)

(99,336)

(37,882)

Total BBVA Compass Bancshares, Inc. shareholder's equity

12,789,596

12,697,949

12,693,623

12,595,683

12,414,136

Noncontrolling interests

29,594

29,047

29,554

29,026

29,592

Total shareholder's equity

12,819,190

12,726,996

12,723,177

12,624,709

12,443,728

Total liabilities and shareholder's equity

$     89,356,838

$ 91,753,156

$ 92,220,789

$   90,068,538

$     89,477,420

[a] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

BBVA COMPASS BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)











Three Months Ended

2016

2015 [a]

September 30

June 30

March 31 [a]

December 31

September 30

Interest income:








Interest and fees on loans

$           557,996

$ 559,170

$       561,083

$         546,392

$           540,517

Interest on investment securities available for sale

48,382

36,442

46,197

49,066

46,646

Interest on investment securities held to maturity

6,675

6,759

6,795

6,870

6,953

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

4,563

4,346

4,366

1,595

1,666

Interest on trading account assets

12,926

13,412

14,321

13,058

14,431

Total interest income

630,542

620,129

632,762

616,981

610,213

Interest expense:








Interest on deposits

76,031

76,933

77,815

71,342

68,282

Interest on FHLB and other borrowings

21,315

19,592

18,012

22,920

20,422

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

4,934

5,434

6,157

2,856

2,506

Interest on other short-term borrowings

13,453

13,932

13,896

15,774

11,129

Total interest expense

115,733

115,891

115,880

112,892

102,339

Net interest income

514,809

504,238

516,882

504,089

507,874

Provision for loan losses

65,107

86,673

113,245

76,307

29,151

Net interest income after provision for loan losses

449,702

417,565

403,637

427,782

478,723

Noninterest income:








Service charges on deposit accounts

55,047

51,921

51,425

54,357

54,917

Card and merchant processing fees

31,256

31,509

29,742

28,900

29,024

Retail investment sales

30,137

26,985

22,567

24,040

26,055

Investment banking and advisory fees

34,385

28,335

23,604

20,260

17,842

Money transfer income

25,058

26,477

24,425

24,735

24,868

Asset management fees

8,778

8,386

8,805

8,745

7,918

Corporate and correspondent investment sales

6,974

10,103

4,413

9,710

6,047

Mortgage banking

8,242

602

(3,434)

5,989

554

Bank owned life insurance

4,170

4,455

4,416

5,135

4,345

Investment securities gains, net

—

21,684

8,353

14,689

6,736

Loss on prepayment of FHLB and other borrowings

—

—

—

(1,898)

—

Other

59,718

67,789

78,889

67,536

82,414

Total noninterest income

263,765

278,246

253,205

262,198

260,720

Noninterest expense:








Salaries, benefits and commissions

279,132

277,166

279,769

276,647

271,143

Professional services

63,628

58,401

56,367

64,450

55,476

Equipment

59,697

59,508

60,441

57,739

58,414

Net occupancy

41,610

39,999

39,272

41,304

39,706

Money transfer expense

16,680

17,768

15,600

16,334

16,514

Marketing

13,316

11,506

12,709

9,447

10,624

Communications

5,002

5,463

5,175

5,423

5,856

Amortization of intangibles

4,093

4,094

4,093

9,125

9,507

Other

73,113

67,132

118,718

98,226

90,135

Total noninterest expense

556,271

541,037

592,144

578,695

557,375

Net income before income tax expense

157,196

154,774

64,698

111,285

182,068

Income tax expense

36,845

32,272

25,431

19,637

52,428

Net income

120,351

122,502

39,267

91,648

129,640

Less: net income attributable to noncontrolling interests

523

518

528

490

491

Net income attributable to BBVA Compass Bancshares, Inc.

$           119,828

$ 121,984

$         38,739

$           91,158

$           129,149

[a] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

Logo - http://photos.prnewswire.com/prnh/20140825/139263

SOURCE BBVA Compass

Related Links

http://www.bbvacompass.com

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