HOUSTON, April 30, 2021 /PRNewswire/ -- BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today net income of $385 million for the first quarter of 2021 compared to net income of $334 million in the fourth quarter of 2020 and net loss of $2.2 billion in the first quarter of 2020. Return on average assets and return on average tangible equity1 for the first quarter of 2021 were 1.49 percent and 16.57 percent, respectively.
"During the first quarter we delivered solid results while continuing to successfully navigate the challenges to our customers, communities and our employees brought about by the COVID-19 pandemic," said Javier Rodríguez Soler, president and CEO of BBVA USA. "Momentum continued in the quarter highlighted by stable revenue and well-contained expenses. At the same time, we continue to maintain strong liquidity and capital positions. We are focused on continuing to meet the challenges ahead, and subject to regulatory approval and closing, successfully integrating our operations with PNC and the opportunities that this combination will bring to our customers, our communities and our employees."
Total revenue for the first quarter was $968 million, down slightly from fourth quarter 2020 levels and up 7 percent from first quarter 2020 levels. Net interest income in the quarter totaled $664 million compared to $667 million in the fourth quarter of 2020 and $589 million in the first quarter of 2020. The percent net interest margin for the first quarter of 2021 was 2.83 percent compared to 2.78 percent in the fourth quarter of 2020 and 2.80 percent in the first quarter of 2020. The increase in net interest margin reflects the efforts to reduce deposit costs and manage the lower interest rate environment.
Noninterest income (excluding securities gains) for the quarter totaled $304 million compared to $301 million in the fourth quarter of 2020 and $315 million for the first quarter of 2020. The increase in noninterest income on a linked quarter basis was driven by an increase in investment services sales fees (+$3 million) and money transfer income (+$3 million). Other noninterest income increased on a linked quarter basis (+$10 million), primarily as a result of a valuation adjustment to investments held by the company's small business investment company that negatively impacted fourth quarter 2020 levels. Following a strong fourth quarter, mortgage banking slowed on a linked quarter basis (-$5 million).
During the first quarter of 2021 and the fourth quarter of 2020 no gains or losses were recorded on investment securities while $19 million of gains on investment securities was recorded in the first quarter of 2020.
Total noninterest expense was $619 million in the first quarter of 2021 compared to $578 million in the fourth quarter of 2020 and $624 million, excluding goodwill impairment, in the first quarter of 2020. The rise in noninterest expense was driven by an increase in salaries, benefits and commissions on a linked quarter basis.
Operating income1 in the quarter totaled $349 million, down 43 percent annualized from the fourth quarter of 2020 and up 16 percent from the first quarter 2020 levels.
Total loans at the end of the first quarter of 2021 were $64.3 billion, down 9 percent (annualized) from $65.8 billion at the end of the fourth quarter of 2020 and down 5 percent from the $67.7 billion at the end of the first quarter of 2020. During the quarter, newly funded loans totaled $4.6 billion, which was flat compared to the same time period a year ago.
Deposit growth continued in the quarter with total deposits ending the quarter at $86.0 billion, up slightly from fourth quarter of 2020 and up $8.7 billion or 11 percent compared to the first quarter of 2020. Low-cost deposits were a key driver of deposit growth as noninterest bearing deposits ended the quarter at $29.5 billion, up 26 percent (annualized) on a linked quarter basis and up $9.1 billion or 45 percent compared to the first quarter of 2020.
As a result of deposit growth outpacing loan growth, the loan to deposit ratio ended the first quarter of 2021 at 76.4 percent compared to 77.1 percent at the end of the fourth quarter of 2020 and 86.6 percent at the end of the first quarter of 2020.
During the first quarter of 2021, the company recorded provision recapture of credit losses totaling $120 million compared to provision recapture of credit losses of $81 million in the fourth quarter of 2020 and provision for credit losses of $357 million in the first quarter of 2020. The recapture of provision expense primarily reflected improvements in macroeconomic factors and forecasts. Net charge-offs as a percentage of average total loans were 38 basis points in the quarter compared to 34 basis points in the fourth quarter of 2020 and 69 basis points in the first quarter of 2020. The allowance for loan losses as a percentage of total loans at the end of the quarter was 2.34 percent compared to 2.56 percent at the end of the fourth quarter of 2020 and 2.00 percent in the year ago quarter.
Nonperforming loans as a percentage of total loans ended the first quarter of 2021 at 2.18 percent, down from the 2.21 percent at the end of the fourth quarter of 2020 and up from the 1.09 percent at the end of the first quarter of 2020. The coverage ratio of nonperforming loans ended the quarter at 107 percent compared to 116 percent at the end of the fourth quarter of 2020 and 183 percent at the end of the first quarter of 2020.
The CET12 ratio ended the quarter at 14.23 percent compared to 13.28 percent at the end of the fourth quarter of 2020 and 11.97 percent at the end of the first quarter of 2020. All of BBVA USA's regulatory capital ratios2 continue to exceed the requirements under "well-capitalized" guidelines.
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, 2021, are estimated. |
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For more BBVA news visit, www.bbva.com and the U.S. Newsroom.
Additional news updates can be found via Twitter and Instagram.
For more financial information about BBVA in the U.S., visit bbvausa.investorroom.com.
About 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. It is also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.
BBVA USA
In the U.S., BBVA is a Sunbelt-based financial institution that operates 637 branches, including 328 in Texas, 88 in Alabama, 63 in Arizona, 61 in California, 43 in Florida, 37 in Colorado and 17 in New Mexico. The bank 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). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 14th nationally in terms of dollar volume of SBA loans originated in fiscal year 2019.
Forward-Looking Statements
Certain statements in this press release may contain forward-looking statements about BBVA USA 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 25, 2021, as updated by our subsequent SEC filings.
BBVA USA BANCSHARES, INC. |
||||||
(Unaudited) |
||||||
(Dollars in thousands) |
||||||
Three Months Ended March 31, |
% |
|||||
2021 |
2020 |
Change |
||||
EARNINGS SUMMARY |
||||||
Net interest income |
$ 664,268 |
$ 589,455 |
13 |
|||
Noninterest income [a] |
303,701 |
315,103 |
(4) |
|||
Total revenue [a] |
967,969 |
904,558 |
7 |
|||
Investment securities gain, net |
- |
19,139 |
NM |
|||
(Credit) provision for credit losses |
(120,142) |
356,991 |
(134) |
|||
Goodwill impairment |
- |
2,185,000 |
NM |
|||
Noninterest expense |
618,990 |
624,060 |
(1) |
|||
Pretax income (loss) |
469,121 |
(2,242,354) |
(121) |
|||
Income tax expense (benefit) |
83,660 |
(5,069) |
(1,750) |
|||
Net income (loss) |
$ 385,461 |
$ (2,237,285) |
(117) |
|||
Adjusted net income (loss) [b] |
$ 385,461 |
$ (52,285) |
(837) |
|||
SELECTED RATIOS |
||||||
Return on average assets |
1.49 % |
(9.34)% |
||||
Return on average assets- adjusted [b] |
1.49 |
(0.22) |
||||
Return on average tangible equity [b] |
16.57 |
(100.27) |
||||
Return on average tangible equity- adjusted [b] |
16.57 |
(2.34) |
||||
Efficiency ratio [b] |
63.26 |
68.08 |
||||
Average common equity to average assets |
10.97 |
13.74 |
||||
Average loans to average total deposits |
76.42 |
86.64 |
||||
Common equity tier I capital (CET1) [c] |
14.23 |
11.97 |
||||
Tier I capital ratio [c] |
14.58 |
12.29 |
||||
Total capital ratio [c] |
16.79 |
14.62 |
||||
Leverage ratio [c] |
9.38 |
9.40 |
||||
Average for Three Months |
Ending Balance |
|||||
Ended March 31, |
% |
March 31, |
% |
|||
2021 |
2020 |
Change |
2021 |
2020 |
Change |
|
BALANCE SHEET HIGHLIGHTS |
||||||
Total loans |
$65,153,535 |
$64,875,095 |
- |
$64,255,812 |
$67,657,166 |
(5) |
Total debt securities |
16,746,569 |
13,893,355 |
21 |
17,750,050 |
14,222,974 |
25 |
Earning assets |
96,941,424 |
86,504,508 |
12 |
97,469,717 |
87,388,951 |
12 |
Total assets |
105,140,201 |
96,356,113 |
9 |
103,983,398 |
94,325,559 |
10 |
Noninterest bearing demand deposits |
28,497,062 |
20,293,503 |
40 |
29,543,118 |
20,418,504 |
45 |
Interest bearing transaction accounts |
52,587,472 |
43,676,781 |
20 |
52,659,858 |
46,318,129 |
14 |
Total transaction accounts |
81,084,534 |
63,970,284 |
27 |
82,202,976 |
66,736,633 |
23 |
Total deposits |
85,253,105 |
74,881,825 |
14 |
85,970,954 |
77,234,507 |
11 |
Total shareholder's equity |
11,798,389 |
13,500,615 |
(13) |
12,019,055 |
11,358,354 |
6 |
Total shareholder's equity - tangible [b] |
9,435,176 |
8,973,871 |
5 |
9,649,315 |
8,998,814 |
7 |
[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 USA BANCSHARES, INC. |
|||||
(Unaudited) |
|||||
(Dollars in Thousands) |
|||||
2021 |
2020 |
||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|
NONPERFORMING ASSETS |
|||||
Nonaccrual loans [a] |
$1,300,882 |
$ 1,331,230 |
$ 1,233,040 |
$ 764,744 |
$ 676,716 |
Loans 90 days or more past due [b] |
100,405 |
121,570 |
94,072 |
66,163 |
61,774 |
TDRs 90 days or more past due |
636 |
556 |
830 |
423 |
335 |
Total nonperforming loans [a] |
1,401,923 |
1,453,356 |
1,327,942 |
831,330 |
738,825 |
Foreclosed real estate |
10,965 |
11,448 |
15,051 |
14,871 |
20,642 |
Other repossessed assets |
4,712 |
5,846 |
8,527 |
8,599 |
13,338 |
Total nonperforming assets |
$1,417,600 |
$ 1,470,650 |
$ 1,351,520 |
$ 854,800 |
$ 772,805 |
TDRs accruing and past due less than 90 days |
$ 199,653 |
$ 114,334 |
$ 114,583 |
$ 95,788 |
$ 97,404 |
Total nonperforming loans as a % of loans |
2.18 % |
2.21 % |
2.00 % |
1.21 % |
1.09 % |
Total nonperforming assets as a % of total loans, foreclosed real estate, and other repossessed assets |
2.21 |
2.23 |
2.03 |
1.25 |
1.14 |
Three Months Ended |
|||||
2021 |
2020 |
||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|
ALLOWANCE FOR LOAN LOSSES |
|||||
Balance at beginning of period |
$1,679,474 |
$ 1,804,423 |
$ 1,754,352 |
$1,351,072 |
$ 920,993 |
Adoption of ASC 326 |
- |
- |
- |
- |
184,931 |
Net charge-offs (NCO) |
60,632 |
56,578 |
100,818 |
123,054 |
111,798 |
(Credit) provision for loan losses |
(119,933) |
(68,371) |
150,889 |
526,334 |
356,946 |
Balance at end of period |
$1,498,909 |
$ 1,679,474 |
$ 1,804,423 |
$1,754,352 |
$1,351,072 |
Allowance for loan losses as a % of total loans |
2.34 % |
2.56 % |
2.73 % |
2.57 % |
2.00 % |
Allowance for loan losses as a % of nonperforming loans [c] |
106.92 |
115.56 |
135.88 |
211.03 |
182.87 |
Allowance for loan losses as a % of nonperforming assets [c] |
105.74 |
114.20 |
133.51 |
205.24 |
174.83 |
Annualized as a % of average loans: |
|||||
NCO - QTD |
0.38 |
0.34 |
0.59 |
0.72 |
0.69 |
NCO - YTD |
0.38 |
0.59 |
0.67 |
0.71 |
0.69 |
[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 USA BANCSHARES, INC. |
||||||
(Unaudited) |
||||||
(Dollars in Thousands) |
||||||
Three Months Ended March 31, |
||||||
2021 |
2020 |
|||||
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
|
YIELD/RATE ANALYSIS |
||||||
(Taxable Equivalent Basis) |
||||||
Assets |
||||||
Earning assets: |
||||||
Loans |
$ 65,153,535 |
$ 616,137 |
3.84 % |
$ 64,875,095 |
$ 726,532 |
4.50 % |
Debt securities available for sale [a] |
5,232,378 |
24,437 |
1.89 |
6,669,560 |
(1,492) |
(0.09) |
Debt securities held to maturity |
11,410,498 |
63,779 |
2.27 |
7,192,165 |
42,080 |
2.35 |
Other earning assets [b] |
15,041,320 |
6,190 |
0.17 |
7,736,058 |
43,297 |
2.25 |
Total earning assets [a] |
96,837,731 |
710,543 |
2.98 |
86,472,878 |
810,417 |
3.77 |
Allowance for credit losses |
(1,666,293) |
(1,064,750) |
||||
Unrealized gain on debt securities available for sale |
103,693 |
31,630 |
||||
Other assets |
9,865,070 |
10,916,355 |
||||
Total assets |
$ 105,140,201 |
$ 96,356,113 |
||||
Liabilities and Shareholder's Equity |
||||||
Interest bearing liabilities: |
||||||
Interest bearing demand deposits |
$ 15,392,159 |
$ 6,173 |
0.16 |
$ 11,698,488 |
$ 24,551 |
0.84 |
Savings and money market accounts |
37,195,313 |
8,095 |
0.09 |
31,978,293 |
84,792 |
1.07 |
Certificates and other time deposits |
4,168,571 |
6,077 |
0.59 |
10,911,541 |
55,399 |
2.04 |
Total interest bearing deposits |
56,756,043 |
20,345 |
0.15 |
54,588,322 |
164,742 |
1.21 |
FHLB and other borrowings |
3,534,609 |
14,516 |
1.67 |
3,736,201 |
21,176 |
2.28 |
Federal funds purchased and securities sold under agreement to repurchase [b] |
1,358,857 |
576 |
0.17 |
1,451,501 |
22,658 |
6.28 |
Other short-term borrowings |
4,413 |
389 |
35.75 |
20,037 |
352 |
7.07 |
Total interest bearing liabilities |
61,653,922 |
35,826 |
0.24 |
59,796,061 |
208,928 |
1.41 |
Noninterest bearing deposits |
28,497,062 |
20,293,503 |
||||
Other noninterest bearing liabilities |
3,190,828 |
2,765,934 |
||||
Total liabilities |
93,341,812 |
82,855,498 |
||||
Shareholder's equity |
11,798,389 |
13,500,615 |
||||
Total liabilities and shareholder's equity |
$ 105,140,201 |
$ 96,356,113 |
||||
Net interest income/ net interest spread |
674,717 |
2.74 % |
601,489 |
2.36 % |
||
Net yield on earning assets |
2.83 % |
2.80 % |
||||
Total taxable equivalent adjustment |
10,449 |
12,034 |
||||
Net interest income |
$ 664,268 |
$ 589,455 |
||||
[a] Excludes adjustment for market valuation. |
||||||
[b] Yield/rate reflects impact of balance sheet offsetting. |
BBVA USA BANCSHARES, INC. |
||||||||
(Unaudited) |
||||||||
(Dollars in Thousands) |
||||||||
Three Months |
Three Months Ended |
|||||||
Ended March 31, |
% |
2021 |
2020 |
|||||
2021 |
2020 |
Change |
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|
NONINTEREST INCOME |
||||||||
Service charges on deposit accounts |
$ 54,874 |
$ 61,531 |
(11) |
$ 54,874 |
$ 59,309 |
$ 54,710 |
$ 44,233 |
$ 61,531 |
Card and merchant processing fees |
49,245 |
50,091 |
(2) |
49,245 |
49,961 |
48,628 |
43,416 |
50,091 |
Investment services sales fees |
29,446 |
34,407 |
(14) |
29,446 |
26,647 |
26,218 |
24,971 |
34,407 |
Investment banking and advisory fees |
26,783 |
26,731 |
- |
26,783 |
26,291 |
40,013 |
45,061 |
26,731 |
Money transfer income |
32,040 |
24,548 |
31 |
32,040 |
29,446 |
27,109 |
25,461 |
24,548 |
Corporate and correspondent investment sales |
13,683 |
10,717 |
28 |
13,683 |
16,268 |
3,478 |
18,855 |
10,717 |
Asset management fees |
12,587 |
11,904 |
6 |
12,587 |
12,613 |
12,024 |
11,560 |
11,904 |
Mortgage banking |
14,692 |
17,451 |
(16) |
14,692 |
19,753 |
13,741 |
23,868 |
17,451 |
Bank owned life insurance |
4,691 |
4,625 |
1 |
4,691 |
5,458 |
4,972 |
5,094 |
4,625 |
Other |
65,660 |
73,098 |
(10) |
65,660 |
55,670 |
53,767 |
26,358 |
73,098 |
303,701 |
315,103 |
(4) |
303,701 |
301,416 |
284,660 |
268,877 |
315,103 |
|
Investment securities gains, net |
- |
19,139 |
NM |
- |
- |
- |
3,477 |
19,139 |
Total noninterest income |
$303,701 |
$ 334,242 |
(9) |
$303,701 |
$ 301,416 |
$ 284,660 |
$272,354 |
$ 334,242 |
NONINTEREST EXPENSE |
||||||||
Salaries, benefits and commissions |
$338,695 |
$ 310,136 |
9 |
$338,695 |
$ 301,020 |
$ 296,708 |
$251,697 |
$ 310,136 |
Equipment |
67,334 |
64,681 |
4 |
67,334 |
69,321 |
68,793 |
64,752 |
64,681 |
Professional services |
82,002 |
70,220 |
17 |
82,002 |
80,535 |
78,018 |
78,100 |
70,220 |
Net occupancy |
40,903 |
39,843 |
3 |
40,903 |
40,552 |
41,145 |
41,585 |
39,843 |
Money transfer expense |
23,332 |
17,136 |
36 |
23,332 |
20,764 |
18,897 |
17,958 |
17,136 |
Marketing |
5,471 |
11,899 |
(54) |
5,471 |
10,170 |
9,283 |
8,778 |
11,899 |
Communications |
4,730 |
5,371 |
(12) |
4,730 |
5,038 |
5,542 |
5,808 |
5,371 |
Goodwill impairment |
- |
2,185,000 |
NM |
- |
- |
- |
- |
2,185,000 |
Other |
56,523 |
104,774 |
(46) |
56,523 |
50,180 |
77,242 |
110,772 |
104,774 |
Total noninterest expense |
$618,990 |
$2,809,060 |
(78) |
$618,990 |
$ 577,580 |
$ 595,628 |
$579,450 |
$2,809,060 |
NM = Not meaningful |
||||||||
BBVA USA BANCSHARES, INC. |
||||||||
(Unaudited) |
||||||||
(Dollars in Thousands) |
||||||||
Three Months |
Three Months Ended |
|||||||
Ended March 31, |
2021 |
2020 |
||||||
2021 |
2020 |
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
||
NON-GAAP RECONCILIATION |
||||||||
Computation of Operating Income: |
||||||||
Net interest income (GAAP) |
$ 664,268 |
$ 589,455 |
$ 664,268 |
$ 667,202 |
$ 641,850 |
$ 612,017 |
$ 589,455 |
|
Plus: noninterest income (GAAP) |
303,701 |
334,242 |
303,701 |
301,416 |
284,660 |
272,354 |
334,242 |
|
Less: noninterest expense (GAAP) |
618,990 |
2,809,060 |
618,990 |
577,580 |
595,628 |
579,450 |
2,809,060 |
|
Plus: goodwill impairment (GAAP) |
- |
2,185,000 |
- |
- |
- |
- |
2,185,000 |
|
Operating income (non-GAAP) |
$ 348,979 |
$ 299,637 |
$ 348,979 |
$ 391,038 |
$ 330,882 |
$ 304,921 |
$ 299,637 |
|
Computation of Tangible Shareholder's Equity: |
||||||||
Total shareholder's equity |
$ 12,019,055 |
$11,358,354 |
$ 12,019,055 |
$ 11,691,362 |
$ 11,394,964 |
$ 11,270,789 |
$11,358,354 |
|
Less: goodwill and other intangibles (GAAP) |
2,369,740 |
2,359,540 |
2,369,740 |
2,358,973 |
2,357,039 |
2,357,343 |
2,359,540 |
|
Tangible shareholder's equity (non-GAAP) |
$ 9,649,315 |
$ 8,998,814 |
$ 9,649,315 |
$ 9,332,389 |
$ 9,037,925 |
$ 8,913,446 |
$ 8,998,814 |
|
Computation of Average Tangible Equity: |
||||||||
Total stockholder's equity (average) (GAAP) |
$ 11,798,389 |
$13,500,615 |
$ 11,798,389 |
$ 11,595,287 |
$ 11,394,928 |
$ 11,533,007 |
$13,500,615 |
|
Less: goodwill and other intangibles (average) (GAAP) |
2,363,213 |
4,526,744 |
2,363,213 |
2,358,697 |
2,357,944 |
2,357,132 |
4,526,744 |
|
Average tangible equity (non-GAAP) [B] |
$ 9,435,176 |
$ 8,973,871 |
$ 9,435,176 |
$ 9,236,590 |
$ 9,036,984 |
$ 9,175,875 |
$ 8,973,871 |
|
Net income (loss) (GAAP) [A] |
$ 385,461 |
$ (2,237,285) |
$ 385,461 |
$ 333,817 |
$ 166,241 |
$ (124,437) |
$ (2,237,285) |
|
Return on average tangible equity (non-GAAP) ([A]/[B], annualized) |
16.57 % |
(100.27)% |
16.57 % |
14.38 % |
7.32 % |
(5.45)% |
(100.27)% |
|
Computation of Adjusted Net Income, Return on Average Assets and Return on Average Tangible Equity: |
||||||||
Net income (loss) (GAAP) |
$ 385,461 |
$ (2,237,285) |
$ 385,461 |
$ 333,817 |
$ 166,241 |
$ (124,437) |
$ (2,237,285) |
|
Plus: goodwill impairment (GAAP) |
- |
2,185,000 |
- |
- |
- |
- |
2,185,000 |
|
Adjusted net income (non-GAAP) [C] |
$ 385,461 |
$ (52,285) |
$ 385,461 |
$ 333,817 |
$ 166,241 |
$ (124,437) |
$ (52,285) |
|
Average assets (GAAP) [D] |
$ 105,140,201 |
$96,356,113 |
$105,140,201 |
$104,835,589 |
$ 104,282,898 |
$104,204,062 |
$96,356,113 |
|
Return on average assets - adjusted (non-GAAP) ([C]/[D], annualized) |
1.49 % |
(0.22)% |
1.49 % |
1.27 % |
0.63 % |
(0.48)% |
(0.22)% |
|
Return on average tangible equity - adjusted (non-GAAP) ([C]/[B], annualized) |
16.57 |
(2.34) |
16.57 |
14.38 |
7.32 |
(5.45) |
(2.34) |
|
Computation of Efficiency Ratio: |
||||||||
Noninterest expense (GAAP) |
$ 618,990 |
$ 2,809,060 |
$ 618,990 |
$ 577,580 |
$ 595,628 |
$ 579,450 |
$ 2,809,060 |
|
Less: securities and goodwill impairment (GAAP) |
- |
2,185,000 |
- |
- |
- |
- |
2,185,000 |
|
Total expense (GAAP) [E] |
$ 618,990 |
$ 624,060 |
$ 618,990 |
$ 577,580 |
$ 595,628 |
$ 579,450 |
$ 624,060 |
|
Net interest income, taxable equivalent basis |
$ 674,717 |
$ 601,489 |
$ 674,717 |
$ 677,798 |
$ 652,660 |
$ 623,242 |
$ 601,489 |
|
Plus: noninterest income (GAAP) |
303,701 |
334,242 |
303,701 |
301,416 |
284,660 |
272,354 |
334,242 |
|
Less: investment securities gains, net (GAAP) |
- |
19,139 |
- |
- |
- |
3,477 |
19,139 |
|
Total revenue [F] |
$ 978,418 |
$ 916,592 |
$ 978,418 |
$ 979,214 |
$ 937,320 |
$ 892,119 |
$ 916,592 |
|
Efficiency ratio (non-GAAP) ([E]/[F]) |
63.26 % |
68.08 % |
63.26 % |
58.98 % |
63.55 % |
64.95 % |
68.08 % |
|
BBVA USA BANCSHARES, INC. |
|||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) |
|||||||||
(Dollars in Thousands) |
|||||||||
At or Quarter Ended March 31, 2021 |
|||||||||
30-59 Days Past Due |
60-89 Days Past Due |
90 Days or More Past Due |
Nonaccrual |
Accruing TDRs |
Not Past Due, Nonaccrual, or TDR |
Total |
Net Charge Offs (Recoveries) |
||
Commercial, financial and agricultural |
$ 17,433 |
$ 19,078 |
$ 12,609 |
$ 529,703 |
$ 77,466 |
$ 25,312,956 |
$25,969,245 |
$ 1,207 |
|
Real estate – construction |
2,538 |
- |
532 |
25,265 |
142 |
2,367,527 |
2,396,004 |
(151) |
|
Commercial real estate – mortgage |
703 |
253 |
7,790 |
418,935 |
26,746 |
12,957,845 |
13,412,272 |
18 |
|
Residential real estate – mortgage |
40,315 |
19,696 |
41,590 |
235,441 |
53,568 |
12,433,031 |
12,823,641 |
423 |
|
Equity lines of credit |
8,325 |
2,642 |
1,972 |
45,744 |
- |
2,259,525 |
2,318,208 |
(228) |
|
Equity loans |
665 |
223 |
134 |
8,844 |
19,326 |
136,017 |
165,209 |
459 |
|
Credit card |
8,378 |
6,442 |
22,847 |
- |
- |
774,575 |
812,242 |
17,932 |
|
Consumer – direct |
17,028 |
9,438 |
8,339 |
13,098 |
23,041 |
1,726,141 |
1,797,085 |
30,159 |
|
Consumer – indirect |
30,024 |
8,513 |
4,592 |
23,852 |
- |
4,199,355 |
4,266,336 |
10,813 |
|
Total loans |
$ 125,409 |
$ 66,285 |
$ 100,405 |
$1,300,882 |
$ 200,289 |
$ 62,166,972 |
$63,960,242 |
$ 60,632 |
|
Loans held for sale |
$ - |
$ - |
$ - |
$ - |
$ - |
$ 295,570 |
$ 295,570 |
$ - |
|
At or Quarter Ended December 31, 2020 |
|||||||||
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 |
$ 15,862 |
$ 22,569 |
$ 35,472 |
$ 540,741 |
$ 17,686 |
$ 25,972,812 |
$26,605,142 |
$ 5,019 |
|
Real estate – construction |
3,595 |
174 |
532 |
25,316 |
145 |
2,468,569 |
2,498,331 |
(2) |
|
Commercial real estate – mortgage |
2,113 |
2,004 |
1,104 |
442,137 |
910 |
13,117,046 |
13,565,314 |
203 |
|
Residential real estate – mortgage |
49,445 |
20,694 |
45,761 |
235,463 |
53,380 |
12,923,031 |
13,327,774 |
1,029 |
|
Equity lines of credit |
11,108 |
4,305 |
2,624 |
42,606 |
- |
2,334,251 |
2,394,894 |
(795) |
|
Equity loans |
1,417 |
243 |
317 |
10,167 |
19,606 |
148,012 |
179,762 |
135 |
|
Credit card |
12,147 |
10,191 |
21,953 |
- |
- |
837,411 |
881,702 |
14,714 |
|
Consumer – direct |
24,076 |
17,550 |
8,741 |
10,087 |
23,163 |
1,846,106 |
1,929,723 |
28,206 |
|
Consumer – indirect |
47,174 |
14,951 |
5,066 |
24,713 |
- |
4,085,221 |
4,177,125 |
8,069 |
|
Total loans |
$ 166,937 |
$ 92,681 |
$ 121,570 |
$1,331,230 |
$ 114,890 |
$ 63,732,459 |
$65,559,767 |
$ 56,578 |
|
Loans held for sale |
$ - |
$ - |
$ - |
$ - |
$ - |
$ 236,586 |
$ 236,586 |
$ - |
|
BBVA USA BANCSHARES, INC. |
|||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) |
|||||||||
(Dollars in Thousands) |
|||||||||
At or Quarter Ended September 30, 2020 |
|||||||||
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 |
$ 22,632 |
$ 12,890 |
$ 21,261 |
$ 660,254 |
$ 19,713 |
$ 26,203,423 |
$26,940,173 |
$ 50,789 |
|
Real estate – construction |
2,861 |
303 |
532 |
12,614 |
61 |
2,387,303 |
2,403,674 |
153 |
|
Commercial real estate – mortgage |
19,280 |
3,968 |
1,816 |
275,668 |
1,831 |
13,393,237 |
13,695,800 |
98 |
|
Residential real estate – mortgage |
88,035 |
49,344 |
39,728 |
204,442 |
55,132 |
13,027,076 |
13,463,757 |
(117) |
|
Equity lines of credit |
13,418 |
6,300 |
3,445 |
37,216 |
- |
2,381,344 |
2,441,723 |
233 |
|
Equity loans |
1,847 |
1,158 |
271 |
8,758 |
20,750 |
161,583 |
194,367 |
(195) |
|
Credit card |
9,776 |
7,526 |
16,542 |
- |
- |
873,949 |
907,793 |
18,527 |
|
Consumer – direct |
25,762 |
11,730 |
6,643 |
9,134 |
17,926 |
1,952,501 |
2,023,696 |
24,559 |
|
Consumer – indirect |
34,116 |
9,744 |
3,834 |
24,954 |
- |
4,036,981 |
4,109,629 |
6,771 |
|
Total loans |
$ 217,727 |
$ 102,963 |
$ 94,072 |
$1,233,040 |
$ 115,413 |
$ 64,417,397 |
$66,180,612 |
$ 100,818 |
|
Loans held for sale |
$ - |
$ - |
$ - |
$ - |
$ - |
$ 253,454 |
$ 253,454 |
$ - |
|
At or Quarter Ended June 30, 2020 |
|||||||||
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 |
$ 51,207 |
$ 5,130 |
$ 8,450 |
$ 389,615 |
$ 1,866 |
$ 28,325,856 |
$28,782,124 |
$ 29,038 |
|
Real estate – construction |
12,907 |
- |
532 |
13,317 |
64 |
2,271,650 |
2,298,470 |
(36) |
|
Commercial real estate – mortgage |
8,592 |
2,190 |
415 |
117,213 |
1,876 |
13,670,383 |
13,800,669 |
8,670 |
|
Residential real estate – mortgage |
70,252 |
22,495 |
13,140 |
169,387 |
54,289 |
13,099,576 |
13,429,139 |
182 |
|
Equity lines of credit |
8,461 |
8,162 |
3,555 |
34,915 |
- |
2,461,741 |
2,516,834 |
(476) |
|
Equity loans |
1,311 |
692 |
148 |
8,457 |
21,280 |
178,092 |
209,980 |
(120) |
|
Credit card |
6,668 |
7,286 |
22,134 |
- |
- |
929,484 |
965,572 |
20,107 |
|
Consumer – direct |
19,927 |
10,923 |
11,623 |
7,624 |
16,836 |
2,067,175 |
2,134,108 |
42,271 |
|
Consumer – indirect |
32,519 |
11,162 |
6,166 |
24,216 |
- |
4,030,541 |
4,104,604 |
23,418 |
|
Total loans |
$ 211,844 |
$ 68,040 |
$ 66,163 |
$ 764,744 |
$ 96,211 |
$ 67,034,498 |
$68,241,500 |
$ 123,054 |
|
Loans held for sale |
$ - |
$ - |
$ - |
$ - |
$ - |
$ 245,851 |
$ 245,851 |
$ - |
|
BBVA USA BANCSHARES, INC. |
|||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) |
|||||||||
(Dollars in Thousands) |
|||||||||
At or Quarter Ended March 31, 2020 |
|||||||||
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 |
$ 31,493 |
$ 7,588 |
$ 3,013 |
$ 323,881 |
$ 1,931 |
$ 27,464,207 |
$27,832,113 |
$ 19,014 |
|
Real estate – construction |
9,356 |
66 |
574 |
13,676 |
69 |
2,147,973 |
2,171,714 |
(13) |
|
Commercial real estate – mortgage |
13,439 |
5,241 |
912 |
114,839 |
3,333 |
13,715,641 |
13,853,405 |
(73) |
|
Residential real estate – mortgage |
67,938 |
25,187 |
5,744 |
147,058 |
55,116 |
13,144,975 |
13,446,018 |
(172) |
|
Equity lines of credit |
16,382 |
6,244 |
3,295 |
33,354 |
- |
2,552,075 |
2,611,350 |
536 |
|
Equity loans |
2,636 |
1,147 |
293 |
8,027 |
22,392 |
194,874 |
229,369 |
212 |
|
Credit card |
13,230 |
8,932 |
23,707 |
- |
- |
977,503 |
1,023,372 |
19,517 |
|
Consumer – direct |
34,553 |
19,738 |
15,196 |
7,160 |
14,898 |
2,184,500 |
2,276,045 |
51,726 |
|
Consumer – indirect |
76,547 |
24,249 |
9,040 |
28,721 |
- |
3,957,471 |
4,096,028 |
21,051 |
|
Total loans |
$ 265,574 |
$ 98,392 |
$ 61,774 |
$ 676,716 |
$ 97,739 |
$ 66,339,219 |
$67,539,414 |
$ 111,798 |
|
Loans held for sale |
$ - |
$ - |
$ - |
$ - |
$ - |
$ 117,752 |
$ 117,752 |
$ - |
|
BBVA USA BANCSHARES, INC. |
|||||
BALANCE SHEET (Unaudited) |
|||||
(Dollars in Thousands) |
|||||
2021 |
2020 |
||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|
Assets: |
|||||
Cash and due from banks |
$ 1,044,788 |
$ 1,249,954 |
$ 1,035,307 |
$ 1,019,127 |
$ 1,033,733 |
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits |
14,097,936 |
13,357,954 |
14,041,538 |
11,738,063 |
4,479,535 |
Cash and cash equivalents |
15,142,724 |
14,607,908 |
15,076,845 |
12,757,190 |
5,513,268 |
Trading account assets |
561,187 |
762,449 |
926,497 |
1,016,966 |
1,009,130 |
Debt securities available for sale |
5,408,087 |
5,744,919 |
6,028,072 |
5,765,192 |
6,344,816 |
Debt securities held to maturity, net |
12,339,994 |
10,549,945 |
9,428,931 |
8,693,437 |
7,876,266 |
Loans held for sale |
295,570 |
236,586 |
253,454 |
245,851 |
117,752 |
Loans |
63,960,242 |
65,559,767 |
66,180,612 |
68,241,500 |
67,539,414 |
Allowance for loan losses |
(1,498,909) |
(1,679,474) |
(1,804,423) |
(1,754,352) |
(1,351,072) |
Net loans |
62,461,333 |
63,880,293 |
64,376,189 |
66,487,148 |
66,188,342 |
Premises and equipment, net |
1,028,385 |
1,055,525 |
1,063,923 |
1,070,358 |
1,068,741 |
Bank owned life insurance |
759,219 |
757,943 |
758,391 |
754,908 |
754,409 |
Goodwill |
2,328,296 |
2,328,296 |
2,328,296 |
2,328,296 |
2,328,296 |
Other assets |
3,658,603 |
2,832,339 |
3,412,324 |
3,148,270 |
3,124,539 |
Total assets |
$103,983,398 |
$ 102,756,203 |
$ 103,652,922 |
$102,267,616 |
$ 94,325,559 |
Liabilities: |
|||||
Deposits: |
|||||
Noninterest bearing |
$ 29,543,118 |
$ 27,791,421 |
$ 26,803,670 |
$ 25,978,354 |
$ 20,418,504 |
Interest bearing |
56,427,836 |
58,066,960 |
59,567,362 |
59,448,060 |
56,816,003 |
Total deposits |
85,970,954 |
85,858,381 |
86,371,032 |
85,426,414 |
77,234,507 |
FHLB and other borrowings |
3,517,567 |
3,548,492 |
3,560,973 |
3,571,933 |
3,790,137 |
Federal funds purchased and securities sold under agreements to repurchase |
966,336 |
184,478 |
189,474 |
249,481 |
409,784 |
Other short-term borrowings |
- |
- |
- |
1,619 |
- |
Accrued expenses and other liabilities |
1,509,486 |
1,473,490 |
2,136,479 |
1,747,380 |
1,532,777 |
Total liabilities |
91,964,343 |
91,064,841 |
92,257,958 |
90,996,827 |
82,967,205 |
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 |
14,039,261 |
14,032,205 |
14,032,321 |
14,035,607 |
14,039,572 |
Retained deficit |
(2,546,271) |
(2,931,151) |
(3,264,295) |
(3,430,135) |
(3,305,226) |
Accumulated other comprehensive income |
264,206 |
329,105 |
365,374 |
404,165 |
362,339 |
Total BBVA USA Bancshares, Inc. shareholder's equity |
11,988,901 |
11,661,864 |
11,365,105 |
11,241,342 |
11,328,390 |
Noncontrolling interests |
30,154 |
29,498 |
29,859 |
29,447 |
29,964 |
Total shareholder's equity |
12,019,055 |
11,691,362 |
11,394,964 |
11,270,789 |
11,358,354 |
Total liabilities and shareholder's equity |
$103,983,398 |
$ 102,756,203 |
$ 103,652,922 |
$102,267,616 |
$ 94,325,559 |
BBVA USA BANCSHARES, INC. |
|||||
INCOME STATEMENT (Unaudited) |
|||||
(Dollars in Thousands) |
|||||
Three Months Ended |
|||||
2021 |
2020 |
||||
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|
Interest income: |
|||||
Interest and fees on loans |
$606,407 |
$ 626,900 |
$ 644,643 |
$ 669,767 |
$ 715,476 |
Interest on debt securities available for sale |
24,437 |
22,089 |
19,474 |
18,805 |
(1,492) |
Interest on debt securities held to maturity |
63,060 |
60,812 |
49,981 |
39,800 |
41,102 |
Interest on trading account assets |
1,021 |
793 |
892 |
1,157 |
1,122 |
Interest and dividends on other earning assets |
5,169 |
7,080 |
6,436 |
14,016 |
42,175 |
Total interest income |
700,094 |
717,674 |
721,426 |
743,545 |
798,383 |
Interest expense: |
|||||
Interest on deposits |
20,345 |
33,945 |
61,147 |
97,279 |
164,742 |
Interest on FHLB and other borrowings |
14,516 |
14,092 |
14,644 |
21,936 |
21,176 |
Interest on federal funds purchased and securities sold under agreements to repurchase |
576 |
2,350 |
3,736 |
12,274 |
22,658 |
Interest on other short-term borrowings |
389 |
85 |
49 |
39 |
352 |
Total interest expense |
35,826 |
50,472 |
79,576 |
131,528 |
208,928 |
Net interest income |
664,268 |
667,202 |
641,850 |
612,017 |
589,455 |
(Credit) provision for credit losses |
(120,142) |
(81,298) |
150,977 |
539,459 |
356,991 |
Net interest income after (credit) provision for credit losses |
784,410 |
748,500 |
490,873 |
72,558 |
232,464 |
Noninterest income: |
|||||
Service charges on deposit accounts |
54,874 |
59,309 |
54,710 |
44,233 |
61,531 |
Card and merchant processing fees |
49,245 |
49,961 |
48,628 |
43,416 |
50,091 |
Investment services sales fees |
29,446 |
26,647 |
26,218 |
24,971 |
34,407 |
Investment banking and advisory fees |
26,783 |
26,291 |
40,013 |
45,061 |
26,731 |
Money transfer income |
32,040 |
29,446 |
27,109 |
25,461 |
24,548 |
Asset management fees |
12,587 |
12,613 |
12,024 |
11,560 |
11,904 |
Corporate and correspondent investment sales |
13,683 |
16,268 |
3,478 |
18,855 |
10,717 |
Mortgage banking |
14,692 |
19,753 |
13,741 |
23,868 |
17,451 |
Bank owned life insurance |
4,691 |
5,458 |
4,972 |
5,094 |
4,625 |
Investment securities gains, net |
- |
- |
- |
3,477 |
19,139 |
Other |
65,660 |
55,670 |
53,767 |
26,358 |
73,098 |
Total noninterest income |
303,701 |
301,416 |
284,660 |
272,354 |
334,242 |
Noninterest expense: |
|||||
Salaries, benefits and commissions |
338,695 |
301,020 |
296,708 |
251,697 |
310,136 |
Equipment |
67,334 |
69,321 |
68,793 |
64,752 |
64,681 |
Professional services |
82,002 |
80,535 |
78,018 |
78,100 |
70,220 |
Net occupancy |
40,903 |
40,552 |
41,145 |
41,585 |
39,843 |
Money transfer expense |
23,332 |
20,764 |
18,897 |
17,958 |
17,136 |
Marketing |
5,471 |
10,170 |
9,283 |
8,778 |
11,899 |
Communications |
4,730 |
5,038 |
5,542 |
5,808 |
5,371 |
Goodwill impairment |
- |
- |
- |
- |
2,185,000 |
Other |
56,523 |
50,180 |
77,242 |
110,772 |
104,774 |
Total noninterest expense |
618,990 |
577,580 |
595,628 |
579,450 |
2,809,060 |
Net income (loss) before income tax expense |
469,121 |
472,336 |
179,905 |
(234,538) |
(2,242,354) |
Income tax expense (benefit) |
83,660 |
138,519 |
13,664 |
(110,101) |
(5,069) |
Net income (loss) |
385,461 |
333,817 |
166,241 |
(124,437) |
(2,237,285) |
Less: net income attributable to noncontrolling interests |
581 |
673 |
401 |
472 |
501 |
Net income (loss) attributable to BBVA USA Bancshares, Inc. |
$384,880 |
$ 333,144 |
$ 165,840 |
$(124,909) |
$(2,237,786) |
SOURCE BBVA USA
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