BBVA USA reports third quarter 2020 results
- Revenue: Total revenue of $927 million, up 21 percent (annualized) from second quarter 2020 levels as both net interest income (+19 percent annualized) and noninterest income (+23 percent annualized) posts double digit gains
- Expenses: Noninterest expense totals $596 million, up on a linked quarter basis and down 1 percent from the year ago quarter. Efficiency ratio ends the quarter at 63.55 percent compared to 64.95 percent on a linked quarter basis and 62.76 percent in the year ago quarter
- Operating income: Operating income(1) in the quarter totals $331 million, up 34 percent (annualized) from the second quarter of 2020 and down 9 percent from third quarter 2019 levels
- Loans and Deposits: Newly funded loans in the quarter of $3.5 billion brings the total for the first nine months of 2020 to $15.8 billion, a 41 percent increase compared to the same time period a year ago. Total deposits end the quarter at $86.4 billion, up 4 percent (annualized) from the second quarter of 2020 and up 17 percent from the year ago quarter
- Provision for credit losses: Provision for credit losses of $151 million in the quarter, down significantly from that recorded in the previous two quarters and comparable to the $141 million recorded in the third quarter last year. Provision for loan losses exceeds net charge-offs by $50 million in the quarter
- Credit quality: Net charge-offs as a percentage of average loans at 59 basis points compared to 72 basis points for the second quarter of 2020. Nonperforming loan ratio at 2.00 percent and coverage ratio at 136 percent
- Capital and Liquidity: CET1(2) ratio ends the quarter at 12.79, up 61 basis points from second quarter 2020 levels. Liquidity Coverage Ratio (LCR) at 144 percent, unchanged on a sequential quarter basis and from the quarter a year ago
HOUSTON, Oct. 30, 2020 /PRNewswire/ -- BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today net income of $166 million for the third quarter of 2020 compared to a net loss of $124 million in the second quarter of 2020 and net income of $183 million in the third quarter of 2019. Return on average assets and return on average tangible equity1 for the third quarter of 2020 were 0.63 percent and 7.32 percent, respectively.
For the first nine months of 2020, the company reported a net loss of $2.2 billion. Included in the first quarter of 2020 was a non-cash, goodwill impairment charge of $2.2 billion that reflected the drastic change in macroeconomic conditions and forecasts brought about by the COVID-19 pandemic and subsequent decline in interest rates and oil prices. Excluding the impact of this non-cash charge, the adjusted net loss1 for the first nine months of 2020 was $10 million, further reflecting the decline in interest rates and higher provision expense necessary to reflect the economic and business disruption caused by the pandemic.
"During the third 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.
Total revenue for the third quarter was $927 million, up 21 percent (annualized) from second quarter 2020 levels and down 2 percent from third quarter 2019 levels. Net interest income in the quarter totaled $642 million compared to $612 million in the second quarter of 2020 and $641 million in the third quarter of 2019. The percent net interest margin for the third quarter of 2020 was 2.68 percent compared to 2.66 percent in the second quarter of 2020 and 3.07 percent in the third quarter of 2019. The decline in the percent net interest margin from a year ago reflects a lower interest rate environment, the subsequent repricing of variable rate loans, offset in part, by efforts to reduce deposit costs.
Noninterest income (excluding securities gains) for the quarter totaled $285 million compared to $269 million in the second quarter of 2020 and $300 million for the third quarter of 2019. While down from a year ago, the increase in noninterest income on a linked quarter basis was driven by service charges on deposit accounts (+$10 million) and card and merchant processing fees (+$5 million) reflecting higher levels of business activity, albeit still below pre-pandemic levels. Other noninterest income increased on a linked quarter basis, primarily as a result of a valuation adjustment to investments held by our small business investment company that negatively impacted second quarter 2020 levels. While investment banking and advisory fees and mortgage banking declined from second quarter levels, both business lines reflected double digit increases compared to the year ago quarter.
During the third quarter no gains or losses were recorded on investment securities while $3 million of investment securities gains were recorded in the second quarter of 2020 and $21 million was recorded in the third quarter of 2019.
Total noninterest expense was $596 million compared to $579 million in the second quarter of 2020 and $599 million in the third quarter of 2019. While salaries, benefits and commissions increased on a linked quarter basis, compared to the year ago quarter the increase was only 1 percent. Equipment expense also increased on a linked quarter basis and was up 8 percent compared to a year ago. Professional services were flat compared to the second quarter of 2020 while up 7 percent compared to the third quarter of 2019. Operating income1 in the quarter totaled $331 million, up 34 percent (annualized) from the second quarter of 2020 and down 9 percent from the third quarter 2019 levels.
Total loans at the end of the third quarter of 2020 were $66.4 billion, down 12 percent (annualized) from $68.5 billion at the end of the second quarter of 2020 and up 5 percent from the $63.5 billion at the end of the third quarter of 2019. Commercial loans associated with the energy sector dropped to $2.5 billion at the end of the third quarter of 2020 compared to $3.0 billion at the end of the second quarter of 2020. During the quarter, newly funded loans totaled $3.5 billion bringing the total for the first nine months of 2020 to $15.8 billion, a 41 percent increase compared to the same time period a year ago.
Deposit growth continued in the quarter with total deposits ending the quarter at $86.4 billion, up 4 percent (annualized) from the second quarter of 2020 and up $12.8 billion or 17 percent compared to the third quarter of 2019. Low-cost deposits were a key driver of deposit growth as noninterest bearing deposits ended the quarter at $26.8 billion, up 13 percent (annualized) on a linked quarter basis and up $5.8 billion or 28 percent compared to the third quarter of 2019.
As a result of deposit growth outpacing loan growth, the loan to deposit ratio ended the third quarter of 2020 at 76.9 percent compared to 80.2 percent at the end of the second quarter of 2020 and 86.3 percent at the end of the third quarter of 2019. BBVA USA continues to maintain a strong liquidity position with the LCR at 144 percent, unchanged from the levels recorded in both the second quarter of 2020 and the third quarter of 2019.
After two quarters of increased provision expense recorded to primarily address the impact of the COVID-19 pandemic and corresponding impact on economic conditions, provision for credit losses totaled $151 million in the quarter and exceeded net charge-offs by $50 million. Net charge-offs as a percentage of average total loans were 59 basis points in the quarter compared to 72 basis points in the second quarter of 2020 and 110 basis points in the third quarter of 2019. The allowance for loan losses as a percentage of total loans at the end of the quarter rose to 2.73 percent compared to 2.57 percent at the end of the second quarter of 2020 and 1.49 percent in the year ago quarter.
Nonperforming loans as a percentage of total loans ended the third quarter of 2020 at 2.00 percent, up from the 1.21 percent at the end of the second quarter of 2020 and 1.14 percent at the end of the third quarter of 2019. The increase in nonperforming loans on a linked quarter basis was primarily attributed to an increase in nonaccrual loans associated with the commercial loan portfolio (+$271 million), as well as increases in the commercial real estate – mortgage (+$158 million) and residential real estate – mortgage (+$35 million) portfolios. The coverage ratio of nonperforming loans ended the quarter at 136 percent compared to 211 percent at the end of the second quarter of 2020 and 131 percent at the end of the third quarter of 2019.
Total shareholder's equity at the end of the third quarter of 2020 totaled $11.4 billion compared to $11.3 billion at the end of the second quarter of 2020 and $14.1 billion at the end of the third quarter of 2019. Total tangible shareholder's equity1 totaled $9.0 billion at the end of the third quarter of 2020 compared to $8.9 billion at the end of the second quarter of 2020 and $9.1 billion at the end of the third quarter of 2019. The CET12 ratio ended the quarter at 12.79 percent compared to 12.18 percent at the end of the second quarter of 2020 and 12.89 percent at the end of the third quarter of 2019. All of BBVA USA's regulatory capital ratios2 continue to exceed the requirements under "well-capitalized" guidelines.
During the quarter, Global Finance recognized BBVA USA as one of the World's Best Corporate/Institutional Digital Banks in North America for 2020, naming us a winner in the subcategories of Best Mobile Adaptive Site and Best Mobile Banking App.
1 Operating income and adjusted net loss 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 September 30, 2020, are estimated. |
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 Group
BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market and 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 BBVA Garanti. BBVA's 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. BBVA's responsible banking model aspires to achieve a more inclusive and sustainable society.
On February 28, 2020, BBVA filed its annual report on Form 20-F for the year ended December 31, 2019, with the U.S. Securities and Exchange Commission. A copy can be accessed on the BBVA website at https://shareholdersandinvestors.bbva.com/the-share/adrs-english/. Holders of BBVA's American Depositary Receipts (ADRs) may request a hard copy of the Form 20-F for the year ended December 31, 2019, including complete audited financial statements, free of charge. To request a copy, contact Ed Bilek at [email protected].
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 28, 2020, as updated by our subsequent SEC filings.
BBVA USA BANCSHARES, INC. |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||
Three Months Ended |
% |
Nine Months Ended |
% |
|||||||||||||||
2020 |
2019 |
Change |
2020 |
2019 |
Change |
|||||||||||||
EARNINGS SUMMARY |
||||||||||||||||||
Net interest income |
$ 641,850 |
$ 641,041 |
— |
$ 1,843,322 |
$ 1,983,879 |
(7) |
||||||||||||
Noninterest income [a] |
284,660 |
300,316 |
(5) |
868,640 |
833,399 |
4 |
||||||||||||
Total revenue [a] |
926,510 |
941,357 |
(2) |
2,711,962 |
2,817,278 |
(4) |
||||||||||||
Investment securities gain, net |
— |
21,003 |
NM |
22,616 |
29,961 |
(25) |
||||||||||||
Provision for credit losses |
150,977 |
140,629 |
7 |
1,047,427 |
477,939 |
119 |
||||||||||||
Goodwill impairment |
— |
— |
— |
2,185,000 |
— |
NM |
||||||||||||
Noninterest expense |
595,628 |
598,887 |
(1) |
1,799,138 |
1,779,174 |
1 |
||||||||||||
Pretax (loss) income |
179,905 |
222,844 |
(19) |
(2,296,987) |
590,126 |
(489) |
||||||||||||
Income tax (benefit) expense |
13,664 |
39,899 |
(66) |
(101,506) |
106,014 |
(196) |
||||||||||||
Net (loss) income |
$ 166,241 |
$ 182,945 |
(9) |
$ (2,195,481) |
$ 484,112 |
(554) |
||||||||||||
Adjusted net (loss) income [b] |
$ 166,241 |
$ 182,945 |
(9) |
$ (10,481) |
$ 484,112 |
(102) |
||||||||||||
SELECTED RATIOS |
||||||||||||||||||
Return on average assets |
0.63 % |
0.76 % |
(2.90)% |
0.69 % |
||||||||||||||
Return on average assets- adjusted [b] |
0.63 |
0.76 |
(0.01) |
0.69 |
||||||||||||||
Return on average tangible equity [b] |
7.32 |
8.03 |
(32.36) |
7.36 |
||||||||||||||
Return on average tangible equity- adjusted [b] |
7.32 |
8.03 |
(0.15) |
7.36 |
||||||||||||||
Efficiency ratio [b] |
63.55 |
62.76 |
65.52 |
62.28 |
||||||||||||||
Average common equity to average assets |
10.68 |
14.53 |
11.76 |
14.47 |
||||||||||||||
Average loans to average total deposits |
79.53 |
87.17 |
82.85 |
88.64 |
||||||||||||||
Common equity tier I capital (CET1) [c] |
12.79 |
12.89 |
12.79 |
12.89 |
||||||||||||||
Tier I capital ratio [c] |
13.13 |
13.24 |
13.13 |
13.24 |
||||||||||||||
Total capital ratio [c] |
15.30 |
15.39 |
15.30 |
15.39 |
||||||||||||||
Leverage ratio [c] |
8.82 |
10.03 |
8.82 |
10.03 |
||||||||||||||
Average for Three Months |
Average for Nine Months |
Ending Balance |
||||||||||||||||
Ended September 30, |
% |
Ended September 30, |
% |
September 30, |
% |
|||||||||||||
2020 |
2019 |
Change |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
||||||||||
BALANCE SHEET HIGHLIGHTS |
||||||||||||||||||
Total loans |
$ 67,837,185 |
$ 63,629,992 |
7 |
$ 67,324,774 |
$ 64,382,982 |
5 |
$ 66,434,066 |
$ 63,454,885 |
5 |
|||||||||
Total debt securities |
14,422,320 |
13,715,979 |
5 |
14,142,922 |
13,703,073 |
3 |
15,472,108 |
13,947,224 |
11 |
|||||||||
Earning assets |
96,896,614 |
84,528,727 |
15 |
92,565,282 |
83,402,162 |
11 |
96,738,163 |
83,447,829 |
16 |
|||||||||
Total assets |
104,282,898 |
94,942,456 |
10 |
101,058,770 |
93,800,891 |
8 |
103,652,922 |
92,914,087 |
12 |
|||||||||
Noninterest bearing demand deposits |
26,034,478 |
20,754,143 |
25 |
23,527,092 |
20,409,910 |
15 |
26,803,670 |
21,019,303 |
28 |
|||||||||
Interest bearing transaction accounts |
52,181,312 |
37,711,142 |
38 |
48,597,866 |
36,861,148 |
32 |
53,346,388 |
38,614,048 |
38 |
|||||||||
Total transaction accounts |
78,215,790 |
58,465,285 |
34 |
72,124,958 |
57,271,058 |
26 |
80,150,058 |
59,633,351 |
34 |
|||||||||
Total deposits |
85,301,231 |
72,994,321 |
17 |
81,258,400 |
72,631,301 |
12 |
86,371,032 |
73,569,442 |
17 |
|||||||||
Total shareholder's equity |
11,394,928 |
14,056,939 |
(19) |
12,140,120 |
13,828,060 |
(12) |
11,394,964 |
14,101,618 |
(19) |
|||||||||
Total shareholder's equity - tangible [b] |
9,036,984 |
9,033,459 |
— |
9,062,151 |
8,798,038 |
3 |
9,037,925 |
9,081,045 |
— |
|||||||||
[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) |
||||||||||
2020 |
2019 |
|||||||||
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
||||||
NONPERFORMING ASSETS |
||||||||||
Nonaccrual loans [a] |
$ 1,233,040 |
$ 764,744 |
$ 676,716 |
$ 606,843 |
$ 653,242 |
|||||
Loans 90 days or more past due [b] |
94,072 |
66,163 |
61,774 |
71,126 |
67,869 |
|||||
TDRs 90 days or more past due |
830 |
423 |
335 |
414 |
588 |
|||||
Total nonperforming loans [a] |
1,327,942 |
831,330 |
738,825 |
678,383 |
721,699 |
|||||
Foreclosed real estate |
15,051 |
14,871 |
20,642 |
20,833 |
17,381 |
|||||
Other repossessed assets |
8,527 |
8,599 |
13,338 |
10,930 |
17,584 |
|||||
Total nonperforming assets |
$ 1,351,520 |
$ 854,800 |
$ 772,805 |
$ 710,146 |
$ 756,664 |
|||||
TDRs accruing and past due less than 90 days |
$ 114,583 |
$ 95,788 |
$ 97,404 |
$ 97,901 |
$ 97,218 |
|||||
Total nonperforming loans as a % of loans |
2.00 % |
1.21 % |
1.09 % |
1.06 % |
1.14 % |
|||||
Total nonperforming assets as a % of total loans, foreclosed real estate, and other repossessed assets |
2.03 |
1.25 |
1.14 |
1.11 |
1.19 |
|||||
Three Months Ended |
||||||||||
2020 |
2019 |
|||||||||
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
||||||
ALLOWANCE FOR LOAN LOSSES |
||||||||||
Balance at beginning of period |
$ 1,754,352 |
$ 1,351,072 |
$ 920,993 |
$ 942,191 |
$ 977,660 |
|||||
Adoption of ASC 326 |
— |
— |
184,931 |
— |
— |
|||||
Net charge-offs (NCO) |
100,818 |
123,054 |
111,798 |
140,703 |
176,098 |
|||||
Provision for loan losses |
150,889 |
526,334 |
356,946 |
119,505 |
140,629 |
|||||
Balance at end of period |
$ 1,804,423 |
$ 1,754,352 |
$ 1,351,072 |
$ 920,993 |
$ 942,191 |
|||||
Allowance for loan losses as a % of total loans |
2.73 % |
2.57 % |
2.00 % |
1.44 % |
1.49 % |
|||||
Allowance for loan losses as a % of nonperforming loans [c] |
135.88 |
211.03 |
182.87 |
135.76 |
130.55 |
|||||
Allowance for loan losses as a % of nonperforming assets [c] |
133.51 |
205.24 |
174.83 |
129.69 |
124.52 |
|||||
Annualized as a % of average loans: |
||||||||||
NCO - QTD |
0.59 |
0.72 |
0.69 |
0.87 |
1.10 |
|||||
NCO - YTD |
0.67 |
0.71 |
0.69 |
0.88 |
0.88 |
|||||
[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. |
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BBVA USA BANCSHARES, INC. |
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(Unaudited) |
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(Dollars in Thousands) |
||||||||||||
Three Months Ended September 30, |
||||||||||||
2020 |
2019 |
|||||||||||
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
|||||||
YIELD/RATE ANALYSIS |
||||||||||||
(Taxable Equivalent Basis) |
||||||||||||
Assets |
||||||||||||
Earning assets: |
||||||||||||
Loans |
$ 67,837,185 |
$ 654,687 |
3.84 % |
$ 63,629,992 |
$ 782,948 |
4.88 % |
||||||
Debt securities available for sale [a] |
5,325,937 |
19,474 |
1.45 |
7,987,642 |
36,051 |
1.79 |
||||||
Debt securities held to maturity |
8,967,670 |
50,747 |
2.25 |
5,737,726 |
40,075 |
2.77 |
||||||
Other earning assets [b] |
14,637,109 |
7,328 |
0.20 |
7,182,756 |
47,015 |
2.60 |
||||||
Total earning assets [a] |
96,767,901 |
732,236 |
3.01 |
84,538,116 |
906,089 |
4.25 |
||||||
Allowance for credit losses |
(1,768,829) |
(971,396) |
||||||||||
Unrealized gain (loss) on debt securities available for sale |
128,713 |
(9,389) |
||||||||||
Other assets |
9,155,113 |
11,385,125 |
||||||||||
Total assets |
$ 104,282,898 |
$ 94,942,456 |
||||||||||
Liabilities and Shareholder's Equity |
||||||||||||
Interest bearing liabilities: |
||||||||||||
Interest bearing demand deposits |
$ 14,188,763 |
$ 9,777 |
0.27 |
$ 8,870,753 |
$ 25,179 |
1.13 |
||||||
Savings and money market accounts |
37,992,549 |
26,476 |
0.28 |
28,840,389 |
96,060 |
1.32 |
||||||
Certificates and other time deposits |
7,085,441 |
24,894 |
1.40 |
14,529,036 |
82,740 |
2.26 |
||||||
Total interest bearing deposits |
59,266,753 |
61,147 |
0.41 |
52,240,178 |
203,979 |
1.55 |
||||||
FHLB and other borrowings |
3,567,285 |
14,644 |
1.63 |
3,860,727 |
32,975 |
3.39 |
||||||
Federal funds purchased and securities sold under agreement to repurchase [b] |
1,492,378 |
3,736 |
1.00 |
1,401,320 |
15,137 |
4.29 |
||||||
Other short-term borrowings |
5,984 |
49 |
3.26 |
13,348 |
72 |
2.14 |
||||||
Total interest bearing liabilities |
64,332,400 |
79,576 |
0.49 |
57,515,573 |
252,163 |
1.74 |
||||||
Noninterest bearing deposits |
26,034,478 |
20,754,143 |
||||||||||
Other noninterest bearing liabilities |
2,521,092 |
2,615,801 |
||||||||||
Total liabilities |
92,887,970 |
80,885,517 |
||||||||||
Shareholder's equity |
11,394,928 |
14,056,939 |
||||||||||
Total liabilities and shareholder's equity |
$ 104,282,898 |
$ 94,942,456 |
||||||||||
Net interest income/ net interest spread |
652,660 |
2.52 % |
653,926 |
2.51 % |
||||||||
Net yield on earning assets |
2.68 % |
3.07 % |
||||||||||
Total taxable equivalent adjustment |
10,810 |
12,885 |
||||||||||
Net interest income |
$ 641,850 |
$ 641,041 |
||||||||||
[a] Excludes adjustment for market valuation. |
||||||||||||
[b] Yield/rate reflects impact of balance sheet offsetting. |
||||||||||||
BBVA USA BANCSHARES, INC. |
||||||||||||
(Unaudited) |
||||||||||||
(Dollars in Thousands) |
||||||||||||
Nine Months Ended September 30, |
||||||||||||
2020 |
2019 |
|||||||||||
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
|||||||
YIELD/RATE ANALYSIS |
||||||||||||
(Taxable Equivalent Basis) |
||||||||||||
Assets |
||||||||||||
Earning assets: |
||||||||||||
Loans |
$ 67,324,774 |
$ 2,061,376 |
4.09 % |
$ 64,382,982 |
$ 2,395,043 |
4.97 % |
||||||
Debt securities available for sale [a] |
5,923,281 |
36,787 |
0.83 |
8,957,354 |
134,698 |
2.01 |
||||||
Debt securities held to maturity |
8,125,463 |
133,462 |
2.19 |
4,845,107 |
105,298 |
2.91 |
||||||
Other earning assets [b] |
11,097,586 |
65,798 |
0.79 |
5,316,107 |
106,946 |
2.69 |
||||||
Total earning assets [a] |
92,471,104 |
2,297,423 |
3.32 |
83,501,550 |
2,741,985 |
4.39 |
||||||
Allowance for credit losses |
(1,404,498) |
(952,170) |
||||||||||
Unrealized gain (loss) on debt securities available for sale |
94,178 |
(99,388) |
||||||||||
Other assets |
9,897,986 |
11,350,899 |
||||||||||
Total assets |
$ 101,058,770 |
$ 93,800,891 |
||||||||||
Liabilities and Shareholder's Equity |
||||||||||||
Interest bearing liabilities: |
||||||||||||
Interest bearing demand deposits |
$ 13,350,036 |
47,758 |
0.48 |
$ 8,954,456 |
72,061 |
1.08 |
||||||
Savings and money market accounts |
35,247,830 |
155,211 |
0.59 |
27,906,692 |
261,172 |
1.25 |
||||||
Certificates and other time deposits |
9,133,442 |
120,199 |
1.76 |
15,360,243 |
255,578 |
2.22 |
||||||
Total interest bearing deposits |
57,731,308 |
323,168 |
0.75 |
52,221,391 |
588,811 |
1.51 |
||||||
FHLB and other borrowings |
3,623,293 |
57,756 |
2.13 |
4,057,769 |
104,901 |
3.46 |
||||||
Federal funds purchased and securities sold under agreement to repurchase [b] |
1,379,052 |
38,668 |
3.75 |
763,681 |
24,886 |
4.36 |
||||||
Other short-term borrowings |
12,844 |
440 |
4.58 |
16,235 |
368 |
3.03 |
||||||
Total interest bearing liabilities |
62,746,497 |
420,032 |
0.89 |
57,059,076 |
718,966 |
1.68 |
||||||
Noninterest bearing deposits |
23,527,092 |
20,409,910 |
||||||||||
Other noninterest bearing liabilities |
2,645,061 |
2,503,845 |
||||||||||
Total liabilities |
88,918,650 |
79,972,831 |
||||||||||
Shareholder's equity |
12,140,120 |
13,828,060 |
||||||||||
Total liabilities and shareholder's equity |
$ 101,058,770 |
$ 93,800,891 |
||||||||||
Net interest income/ net interest spread |
1,877,391 |
2.43 % |
2,023,019 |
2.71 % |
||||||||
Net yield on earning assets |
2.71 % |
3.24 % |
||||||||||
Total taxable equivalent adjustment |
34,069 |
39,140 |
||||||||||
Net interest income |
$ 1,843,322 |
$ 1,983,879 |
||||||||||
[a] Excludes adjustment for market valuation. |
||||||||||||
[b] Yield/rate reflects impact of balance sheet offsetting. |
||||||||||||
BBVA USA BANCSHARES, INC. |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||
Nine Months |
Three Months Ended |
|||||||||||||||
Ended September 30, |
% |
2020 |
2019 |
|||||||||||||
2020 |
2019 |
Change |
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
|||||||||
NONINTEREST INCOME |
||||||||||||||||
Service charges on deposit accounts |
$ 160,474 |
$ 185,782 |
(14) |
$ 54,710 |
$ 44,233 |
$ 61,531 |
$ 64,585 |
$ 65,143 |
||||||||
Card and merchant processing fees |
142,135 |
146,742 |
(3) |
48,628 |
43,416 |
50,091 |
50,805 |
50,385 |
||||||||
Investment services sales fees |
85,596 |
87,316 |
(2) |
26,218 |
24,971 |
34,407 |
28,130 |
29,287 |
||||||||
Investment banking and advisory fees |
111,805 |
67,939 |
65 |
40,013 |
45,061 |
26,731 |
15,720 |
28,324 |
||||||||
Money transfer income |
77,118 |
73,273 |
5 |
27,109 |
25,461 |
24,548 |
25,871 |
26,020 |
||||||||
Corporate and correspondent investment sales |
33,050 |
24,298 |
36 |
3,478 |
18,855 |
10,717 |
14,263 |
11,799 |
||||||||
Asset management fees |
35,488 |
34,039 |
4 |
12,024 |
11,560 |
11,904 |
11,532 |
11,405 |
||||||||
Mortgage banking |
55,060 |
19,011 |
190 |
13,741 |
23,868 |
17,451 |
9,048 |
8,204 |
||||||||
Bank owned life insurance |
14,691 |
12,895 |
14 |
4,972 |
5,094 |
4,625 |
4,584 |
3,508 |
||||||||
Other |
153,223 |
182,104 |
(16) |
53,767 |
26,358 |
73,098 |
48,046 |
66,241 |
||||||||
868,640 |
833,399 |
4 |
284,660 |
268,877 |
315,103 |
272,584 |
300,316 |
|||||||||
Investment securities gains, net |
22,616 |
29,961 |
(25) |
— |
3,477 |
19,139 |
— |
21,003 |
||||||||
Total noninterest income |
$ 891,256 |
$ 863,360 |
3 |
$ 284,660 |
$ 272,354 |
$ 334,242 |
$ 272,584 |
$ 321,319 |
||||||||
NONINTEREST EXPENSE |
||||||||||||||||
Salaries, benefits and commissions |
$ 858,541 |
$ 884,111 |
(3) |
$ 296,708 |
$ 251,697 |
$ 310,136 |
$ 297,823 |
$ 295,092 |
||||||||
Equipment |
198,226 |
191,940 |
3 |
68,793 |
64,752 |
64,681 |
64,826 |
63,908 |
||||||||
Professional services |
226,338 |
210,583 |
7 |
78,018 |
78,100 |
70,220 |
82,343 |
72,903 |
||||||||
Net occupancy |
122,573 |
123,298 |
(1) |
41,145 |
41,585 |
39,843 |
43,302 |
42,241 |
||||||||
Money transfer expense |
53,991 |
50,273 |
7 |
18,897 |
17,958 |
17,136 |
17,951 |
18,005 |
||||||||
Marketing |
29,960 |
42,276 |
(29) |
9,283 |
8,778 |
11,899 |
12,888 |
15,471 |
||||||||
Communications |
16,721 |
16,603 |
1 |
5,542 |
5,808 |
5,371 |
5,179 |
5,469 |
||||||||
Goodwill impairment |
2,185,000 |
— |
NM |
— |
— |
2,185,000 |
470,000 |
— |
||||||||
Other |
292,788 |
260,090 |
13 |
77,242 |
110,772 |
104,774 |
92,594 |
85,798 |
||||||||
Total noninterest expense |
$ 3,984,138 |
$ 1,779,174 |
124 |
$ 595,628 |
$ 579,450 |
$ 2,809,060 |
$ 1,086,906 |
$ 598,887 |
||||||||
NM = Not meaningful |
||||||||||||||||
BBVA USA BANCSHARES, INC. |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(Dollars in Thousands) |
|||||||||||||||
Nine Months |
Three Months Ended |
||||||||||||||
Ended September 30, |
2020 |
2019 |
|||||||||||||
2020 |
2019 |
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
|||||||||
NON-GAAP RECONCILIATION |
|||||||||||||||
Computation of Operating Income: |
|||||||||||||||
Net interest income (GAAP) |
$ 1,843,322 |
$ 1,983,879 |
$ 641,850 |
$ 612,017 |
$ 589,455 |
$ 623,154 |
$ 641,041 |
||||||||
Plus: noninterest income (GAAP) |
891,256 |
863,360 |
284,660 |
272,354 |
334,242 |
272,584 |
321,319 |
||||||||
Less: noninterest expense (GAAP) |
3,984,138 |
1,779,174 |
595,628 |
579,450 |
2,809,060 |
1,086,906 |
598,887 |
||||||||
Plus: goodwill impairment (GAAP) |
2,185,000 |
— |
— |
— |
2,185,000 |
470,000 |
— |
||||||||
Operating income (non-GAAP) |
$ 935,440 |
$ 1,068,065 |
$ 330,882 |
$ 304,921 |
$ 299,637 |
$ 278,832 |
$ 363,473 |
||||||||
Computation of Tangible Shareholder's Equity: |
|||||||||||||||
Total shareholder's equity |
$ 11,394,964 |
$ 14,101,618 |
$ 11,394,964 |
$ 11,270,789 |
$ 11,358,354 |
$ 13,386,589 |
$ 14,101,618 |
||||||||
Less: goodwill and other intangibles (GAAP) |
2,357,039 |
5,020,573 |
2,357,039 |
2,357,343 |
2,359,540 |
4,555,330 |
5,020,573 |
||||||||
Tangible shareholder's equity (non-GAAP) |
$ 9,037,925 |
$ 9,081,045 |
$ 9,037,925 |
$ 8,913,446 |
$ 8,998,814 |
$ 8,831,259 |
$ 9,081,045 |
||||||||
Computation of Average Tangible Equity: |
|||||||||||||||
Total stockholder's equity (average) (GAAP) |
$ 12,140,120 |
$ 13,828,060 |
$ 11,394,928 |
$ 11,533,007 |
$ 13,500,615 |
$ 14,090,315 |
$ 14,056,939 |
||||||||
Less: goodwill and other intangibles (average) (GAAP) |
3,077,969 |
5,030,022 |
2,357,944 |
2,357,132 |
4,526,744 |
5,016,935 |
5,023,480 |
||||||||
Average tangible equity (non-GAAP) [B] |
$ 9,062,151 |
$ 8,798,038 |
$ 9,036,984 |
$ 9,175,875 |
$ 8,973,871 |
$ 9,073,380 |
$ 9,033,459 |
||||||||
Net income (loss) (GAAP) [A] |
$ (2,195,481) |
$ 484,112 |
$ 166,241 |
$ (124,437) |
$ (2,237,285) |
$ (330,705) |
$ 182,945 |
||||||||
Return on average tangible equity (non-GAAP) ([A]/[B], annualized) |
(32.36)% |
7.36 % |
7.32 % |
(5.45)% |
(100.27)% |
(14.46)% |
8.03 % |
||||||||
Computation of Adjusted Net Income, Return on Average Assets and Return on Average Tangible Equity: |
|||||||||||||||
Net income (loss) (GAAP) |
$ (2,195,481) |
$ 484,112 |
$ 166,241 |
$ (124,437) |
$ (2,237,285) |
$ (330,705) |
$ 182,945 |
||||||||
Plus: goodwill impairment (GAAP) |
2,185,000 |
— |
— |
— |
2,185,000 |
470,000 |
— |
||||||||
Adjusted net income (non-GAAP) [C] |
$ (10,481) |
$ 484,112 |
$ 166,241 |
$ (124,437) |
$ (52,285) |
$ 139,295 |
$ 182,945 |
||||||||
Average assets (GAAP) [D] |
$ 101,058,770 |
$ 93,800,891 |
$ 104,282,898 |
$ 104,204,062 |
$ 96,356,113 |
$ 95,754,954 |
$ 94,942,456 |
||||||||
Return on average assets - adjusted (non-GAAP) ([C]/[D], annualized) |
(0.01)% |
0.69 % |
0.63 % |
(0.48)% |
(0.22)% |
0.58 % |
0.76 % |
||||||||
Return on average tangible equity - adjusted (non-GAAP) ([C]/[B], annualized) |
(0.15) |
7.36 |
7.32 |
(5.45) |
(2.34) |
6.09 |
8.03 |
||||||||
Computation of Efficiency Ratio: |
|||||||||||||||
Noninterest expense (GAAP) |
$ 3,984,138 |
$ 1,779,174 |
$ 595,628 |
$ 579,450 |
$ 2,809,060 |
$ 1,086,906 |
$ 598,887 |
||||||||
Less: securities and goodwill impairment (GAAP) |
2,185,000 |
113 |
— |
— |
2,185,000 |
470,102 |
— |
||||||||
Total expense (GAAP) [E] |
$ 1,799,138 |
$ 1,779,061 |
$ 595,628 |
$ 579,450 |
$ 624,060 |
$ 616,804 |
$ 598,887 |
||||||||
Net interest income, taxable equivalent basis |
$ 1,877,391 |
$ 2,023,019 |
$ 652,660 |
$ 623,242 |
$ 601,489 |
$ 635,552 |
$ 653,926 |
||||||||
Plus: noninterest income (GAAP) |
891,256 |
863,360 |
284,660 |
272,354 |
334,242 |
272,584 |
321,319 |
||||||||
Less: investment securities gains, net (GAAP) |
22,616 |
29,961 |
— |
3,477 |
19,139 |
— |
21,003 |
||||||||
Total revenue [F] |
$ 2,746,031 |
$ 2,856,418 |
$ 937,320 |
$ 892,119 |
$ 916,592 |
$ 908,136 |
$ 954,242 |
||||||||
Efficiency ratio (non-GAAP) ([E]/[F]) |
65.52 % |
62.28 % |
63.55 % |
64.95 % |
68.08 % |
67.92 % |
62.76 % |
||||||||
BBVA USA BANCSHARES, INC. |
|||||||||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) |
|||||||||||||||
(Dollars in Thousands) |
|||||||||||||||
At or Quarter Ended September 30, 2020 |
|||||||||||||||
30-59 Days Past |
60-89 Days Past |
90 Days or More Past Due |
Nonaccrual |
Accruing |
Not Past Due, Nonaccrual, or TDR |
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 |
60-89 Days Past |
90 Days or More Past Due |
Nonaccrual |
Accruing |
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 |
60-89 Days Past |
90 Days or More Past Due |
Nonaccrual |
Accruing |
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 |
$ — |
|||||||
At or Quarter Ended December 31, 2019 |
|||||||||||||||
30-59 Days Past |
60-89 Days Past |
90 Days or More Past Due |
Nonaccrual |
Accruing |
Not Past Due or Impaired |
Total |
Net Charge Offs (Recoveries) |
||||||||
Commercial, financial and agricultural |
$ 29,273 |
$ 16,462 |
$ 6,692 |
$ 268,288 |
$ 1,456 |
$ 24,110,067 |
$ 24,432,238 |
$ 37,788 |
|||||||
Real estate – construction |
7,603 |
2 |
571 |
8,041 |
72 |
2,012,393 |
2,028,682 |
(126) |
|||||||
Commercial real estate – mortgage |
5,325 |
5,458 |
6,576 |
98,077 |
3,414 |
13,742,628 |
13,861,478 |
(285) |
|||||||
Residential real estate – mortgage |
72,571 |
21,909 |
4,641 |
147,337 |
57,165 |
13,230,331 |
13,533,954 |
107 |
|||||||
Equity lines of credit |
15,766 |
6,581 |
1,567 |
38,113 |
— |
2,530,653 |
2,592,680 |
857 |
|||||||
Equity loans |
2,856 |
1,028 |
195 |
8,651 |
23,770 |
208,468 |
244,968 |
137 |
|||||||
Credit card |
11,275 |
9,214 |
22,796 |
— |
— |
959,080 |
1,002,365 |
16,760 |
|||||||
Consumer – direct |
33,658 |
20,703 |
18,358 |
6,555 |
12,438 |
2,246,430 |
2,338,142 |
58,190 |
|||||||
Consumer – indirect |
83,966 |
28,430 |
9,730 |
31,781 |
— |
3,758,443 |
3,912,350 |
27,275 |
|||||||
Total loans |
$ 262,293 |
$ 109,787 |
$ 71,126 |
$ 606,843 |
$ 98,315 |
$ 62,798,493 |
$ 63,946,857 |
$ 140,703 |
|||||||
Loans held for sale |
$ — |
$ — |
$ — |
$ — |
$ — |
$ 112,058 |
$ 112,058 |
$ — |
|||||||
BBVA USA BANCSHARES, INC. |
|||||||||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) |
|||||||||||||||
(Dollars in Thousands) |
|||||||||||||||
At or Quarter Ended September 30, 2019 |
|||||||||||||||
30-59 Days Past |
60-89 Days Past |
90 Days or More Past Due |
Nonaccrual |
Accruing |
Not Past Due or Impaired |
Total |
Net Charge Offs (Recoveries) |
||||||||
Commercial, financial and agricultural |
$ 30,779 |
$ 24,036 |
$ 11,179 |
$ 301,021 |
$ 1,552 |
$ 24,314,563 |
$ 24,683,130 |
$ 69,942 |
|||||||
Real estate – construction |
3,831 |
185 |
532 |
1,616 |
76 |
1,999,107 |
2,005,347 |
(59) |
|||||||
Commercial real estate – mortgage |
13,939 |
41 |
2,375 |
110,632 |
3,492 |
12,943,694 |
13,074,173 |
2,250 |
|||||||
Residential real estate – mortgage |
74,796 |
22,329 |
4,778 |
153,078 |
60,537 |
13,187,809 |
13,503,327 |
1,280 |
|||||||
Equity lines of credit |
11,088 |
4,616 |
2,072 |
36,879 |
— |
2,563,457 |
2,618,112 |
431 |
|||||||
Equity loans |
2,452 |
978 |
524 |
8,728 |
24,789 |
225,973 |
263,444 |
(59) |
|||||||
Credit card |
10,372 |
8,092 |
20,037 |
— |
— |
897,646 |
936,147 |
16,398 |
|||||||
Consumer – direct |
35,762 |
23,075 |
17,773 |
7,348 |
7,360 |
2,297,040 |
2,388,358 |
63,992 |
|||||||
Consumer – indirect |
81,075 |
26,294 |
8,599 |
33,940 |
— |
3,698,625 |
3,848,533 |
21,923 |
|||||||
Total loans |
$ 264,094 |
$ 109,646 |
$ 67,869 |
$ 653,242 |
$ 97,806 |
$ 62,127,914 |
$ 63,320,571 |
$ 176,098 |
|||||||
Loans held for sale |
$ — |
$ — |
$ — |
$ — |
$ — |
$ 134,314 |
$ 134,314 |
$ — |
|||||||
BBVA USA BANCSHARES, INC. |
|||||||||
BALANCE SHEET (Unaudited) |
|||||||||
(Dollars in Thousands) |
|||||||||
2020 |
2019 |
||||||||
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
|||||
Assets: |
|||||||||
Cash and due from banks |
$ 1,035,307 |
$ 1,019,127 |
$ 1,033,733 |
$ 1,149,734 |
$ 1,117,458 |
||||
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits |
14,041,538 |
11,738,063 |
4,479,535 |
5,788,964 |
5,356,141 |
||||
Cash and cash equivalents |
15,076,845 |
12,757,190 |
5,513,268 |
6,938,698 |
6,473,599 |
||||
Trading account assets |
926,497 |
1,016,966 |
1,009,130 |
473,976 |
564,000 |
||||
Debt securities available for sale |
6,028,072 |
5,765,192 |
6,344,816 |
7,235,305 |
7,612,590 |
||||
Debt securities held to maturity, net |
9,428,931 |
8,693,437 |
7,876,266 |
6,797,046 |
6,334,634 |
||||
Loans held for sale |
253,454 |
245,851 |
117,752 |
112,058 |
134,314 |
||||
Loans |
66,180,612 |
68,241,500 |
67,539,414 |
63,946,857 |
63,320,571 |
||||
Allowance for loan losses |
(1,804,423) |
(1,754,352) |
(1,351,072) |
(920,993) |
(942,191) |
||||
Net loans |
64,376,189 |
66,487,148 |
66,188,342 |
63,025,864 |
62,378,380 |
||||
Premises and equipment, net |
1,063,923 |
1,070,358 |
1,068,741 |
1,087,698 |
1,085,635 |
||||
Bank owned life insurance |
758,391 |
754,908 |
754,409 |
750,224 |
746,819 |
||||
Goodwill |
2,328,296 |
2,328,296 |
2,328,296 |
4,513,296 |
4,983,296 |
||||
Other assets |
3,412,324 |
3,148,270 |
3,124,539 |
2,669,182 |
2,600,820 |
||||
Total assets |
$ 103,652,922 |
$ 102,267,616 |
$ 94,325,559 |
$ 93,603,347 |
$ 92,914,087 |
||||
Liabilities: |
|||||||||
Deposits: |
|||||||||
Noninterest bearing |
$ 26,803,670 |
$ 25,978,354 |
$ 20,418,504 |
$ 21,850,216 |
$ 21,019,303 |
||||
Interest bearing |
59,567,362 |
59,448,060 |
56,816,003 |
53,135,067 |
52,550,139 |
||||
Total deposits |
86,371,032 |
85,426,414 |
77,234,507 |
74,985,283 |
73,569,442 |
||||
FHLB and other borrowings |
3,560,973 |
3,571,933 |
3,790,137 |
3,690,044 |
3,709,949 |
||||
Federal funds purchased and securities sold under agreements to repurchase |
189,474 |
249,481 |
409,784 |
173,028 |
117,421 |
||||
Other short-term borrowings |
— |
1,619 |
— |
— |
45 |
||||
Accrued expenses and other liabilities |
2,136,479 |
1,747,380 |
1,532,777 |
1,368,403 |
1,415,612 |
||||
Total liabilities |
92,257,958 |
90,996,827 |
82,967,205 |
80,216,758 |
78,812,469 |
||||
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 |
14,032,321 |
14,035,607 |
14,039,572 |
14,043,727 |
14,359,966 |
||||
Retained deficit |
(3,264,295) |
(3,430,135) |
(3,305,226) |
(917,227) |
(585,859) |
||||
Accumulated other comprehensive income (loss) |
365,374 |
404,165 |
362,339 |
(1,072) |
66,009 |
||||
Total BBVA USA Bancshares, Inc. shareholder's equity |
11,365,105 |
11,241,342 |
11,328,390 |
13,357,133 |
14,071,821 |
||||
Noncontrolling interests |
29,859 |
29,447 |
29,964 |
29,456 |
29,797 |
||||
Total shareholder's equity |
11,394,964 |
11,270,789 |
11,358,354 |
13,386,589 |
14,101,618 |
||||
Total liabilities and shareholder's equity |
$ 103,652,922 |
$ 102,267,616 |
$ 94,325,559 |
$ 93,603,347 |
$ 92,914,087 |
||||
BBVA USA BANCSHARES, INC. |
|||||||||
INCOME STATEMENT (Unaudited) |
|||||||||
(Dollars in Thousands) |
|||||||||
Three Months Ended |
|||||||||
2020 |
2019 |
||||||||
September 30 |
June 30 |
March 31 |
December 31 |
September 30 |
|||||
Interest income: |
|||||||||
Interest and fees on loans |
$ 644,643 |
$ 669,767 |
$ 715,476 |
$ 738,140 |
$ 771,245 |
||||
Interest on debt securities available for sale |
19,474 |
18,805 |
(1,492) |
33,333 |
36,051 |
||||
Interest on debt securities held to maturity |
49,981 |
39,800 |
41,102 |
43,097 |
38,893 |
||||
Interest on trading account assets |
892 |
1,157 |
1,122 |
1,326 |
487 |
||||
Interest and dividends on other earning assets |
6,436 |
14,016 |
42,175 |
39,915 |
46,528 |
||||
Total interest income |
721,426 |
743,545 |
798,383 |
855,811 |
893,204 |
||||
Interest expense: |
|||||||||
Interest on deposits |
61,147 |
97,279 |
164,742 |
189,345 |
203,979 |
||||
Interest on FHLB and other borrowings |
14,644 |
21,936 |
21,176 |
31,263 |
32,975 |
||||
Interest on federal funds purchased and securities sold under agreements to repurchase |
3,736 |
12,274 |
22,658 |
11,850 |
15,137 |
||||
Interest on other short-term borrowings |
49 |
39 |
352 |
199 |
72 |
||||
Total interest expense |
79,576 |
131,528 |
208,928 |
232,657 |
252,163 |
||||
Net interest income |
641,850 |
612,017 |
589,455 |
623,154 |
641,041 |
||||
Provision for credit losses |
150,977 |
539,459 |
356,991 |
119,505 |
140,629 |
||||
Net interest income after provision for credit losses |
490,873 |
72,558 |
232,464 |
503,649 |
500,412 |
||||
Noninterest income: |
|||||||||
Service charges on deposit accounts |
54,710 |
44,233 |
61,531 |
64,585 |
65,143 |
||||
Card and merchant processing fees |
48,628 |
43,416 |
50,091 |
50,805 |
50,385 |
||||
Investment services sales fees |
26,218 |
24,971 |
34,407 |
28,130 |
29,287 |
||||
Investment banking and advisory fees |
40,013 |
45,061 |
26,731 |
15,720 |
28,324 |
||||
Money transfer income |
27,109 |
25,461 |
24,548 |
25,871 |
26,020 |
||||
Asset management fees |
12,024 |
11,560 |
11,904 |
11,532 |
11,405 |
||||
Corporate and correspondent investment sales |
3,478 |
18,855 |
10,717 |
14,263 |
11,799 |
||||
Mortgage banking |
13,741 |
23,868 |
17,451 |
9,048 |
8,204 |
||||
Bank owned life insurance |
4,972 |
5,094 |
4,625 |
4,584 |
3,508 |
||||
Investment securities gains, net |
— |
3,477 |
19,139 |
— |
21,003 |
||||
Other |
53,767 |
26,358 |
73,098 |
48,046 |
66,241 |
||||
Total noninterest income |
284,660 |
272,354 |
334,242 |
272,584 |
321,319 |
||||
Noninterest expense: |
|||||||||
Salaries, benefits and commissions |
296,708 |
251,697 |
310,136 |
297,823 |
295,092 |
||||
Equipment |
68,793 |
64,752 |
64,681 |
64,826 |
63,908 |
||||
Professional services |
78,018 |
78,100 |
70,220 |
82,343 |
72,903 |
||||
Net occupancy |
41,145 |
41,585 |
39,843 |
43,302 |
42,241 |
||||
Money transfer expense |
18,897 |
17,958 |
17,136 |
17,951 |
18,005 |
||||
Marketing |
9,283 |
8,778 |
11,899 |
12,888 |
15,471 |
||||
Communications |
5,542 |
5,808 |
5,371 |
5,179 |
5,469 |
||||
Goodwill impairment |
— |
— |
2,185,000 |
470,000 |
— |
||||
Other |
77,242 |
110,772 |
104,774 |
92,594 |
85,798 |
||||
Total noninterest expense |
595,628 |
579,450 |
2,809,060 |
1,086,906 |
598,887 |
||||
Net (loss) income before income tax expense |
179,905 |
(234,538) |
(2,242,354) |
(310,673) |
222,844 |
||||
Income tax (benefit) expense |
13,664 |
(110,101) |
(5,069) |
20,032 |
39,899 |
||||
Net (loss) income |
166,241 |
(124,437) |
(2,237,285) |
(330,705) |
182,945 |
||||
Less: net income attributable to noncontrolling interests |
401 |
472 |
501 |
663 |
514 |
||||
Net (loss) income attributable to BBVA USA Bancshares, Inc. |
|||||||||
SOURCE BBVA USA
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