July 29, 2016 - 9:31 AM EDT
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BBVA Compass reports net income of $162 million for the first half of 2016

HOUSTON, July 29, 2016 /PRNewswire/ --

Second quarter net income of $123 million

  • Loan growth solid while deposit generation remains robust
    • Average total loans of $62.3 billion up $3.0 billion, or 5 percent, from year ago levels
      • Newly funded customer loans of $7.6 billion in the first half of 2016
    • Average total deposits of $68.0 billion up $5.6 billion, or 9 percent, from prior year
      • Deposit growth fueled by 10 percent increase in noninterest bearing deposits
      • Noninterest bearing deposits represent 30 percent of total deposits
  • Total revenue up 1 percent, led by 2 percent increase in net interest income
  • Noninterest income totals $257 million, up $12 million from 1Q16 levels
  • Expenses well contained in the quarter, drop $51 million from 1Q16
  • Credit quality metrics remain sound; allowance to loan ratio at 1.37 percent
    • Net charge-off ratio at 39 basis points for the first half of 2016
    • Provision expense for the quarter exceeded net charge-offs by $21 million
    • Nonperforming loan ratio at 1.76 percent; 0.77 percent excluding energy portfolio
  • Stress tests results provide further evidence of strong capital position
    • Capital plan and capital actions submitted as part of the Comprehensive Capital Analysis and Review (CCAR) received no-objection from Federal Reserve
    • Projected regulatory capital ratios exceeded the applicable regulatory minimums under the Dodd-Frank Act Stress Test (DFAST) hypothetical supervisory severely adverse scenario
    • Regulatory capital ratios1 significantly exceed "well-capitalized" guidelines
    • Common Equity Tier 1 capital ratio (phased-in)1 at 10.79 percent
BBVA Compass corporate logo

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $162 million for the first six months of 2016 compared to $286 million earned during the first six months of 2015. Return on average assets and return on average tangible equity2 for the first six months of 2016 were 0.35 percent and 4.27 percent, respectively.

Net income for the second quarter of 2016 was $123 million compared to $39 million earned during the first quarter of 2016 and $140 million for the second quarter of 2015. Return on average assets and return on average tangible equity2 for the second quarter of 2016 were 0.53 percent and 6.45 percent, respectively.

"Our results for the second quarter reflect solid loan growth, robust deposit generation, improved growth from our fee-based businesses and strong expense management discipline," said Manolo Sánchez, chairman and CEO of BBVA Compass. "At the same time, we are focused on being at the forefront of the digital change sweeping our industry so we can better serve our clients. Euromoney recently recognized us as the Best Digital Bank in North America, in fact, a testament to our vision and the culture we've instilled in which everyone on the team has the power to move our transformation forward."

"While the low interest rate environment continues to hamper revenue growth in our industry, our focus is on delivering targeted balance sheet growth," Sánchez noted. "Average total loans for the first half of the year reached $62.3 billion, an increase of $3.0 billion or 5 percent, and we funded more than $7.6 billion in customer loans. Loan growth was fully funded by deposit generation as average deposits totaled $68.0 billion, an increase of $5.6 billion or 9 percent, led by a 10 percent increase in average noninterest bearing deposits."

Total revenue increased 1 percent from prior year levels for both the three and six month periods. Targeted loan growth coupled with strong deposit growth resulted in a 2 percent increase in net interest income during both periods. The percent net interest margin ended the quarter at 2.66 percent, down 3 basis points from second quarter 2015 levels and 7 basis points from first quarter 2016 levels.

Noninterest income for the quarter totaled $257 million, a decrease of 2 percent compared to $261 million recorded in the second quarter of 2015. In comparison to first quarter 2016 levels, noninterest income increased $12 million as the growth was widespread between most major fee-based businesses. Improved activity levels and market conditions during the quarter were a primary driver of the rebound in investment banking and advisory fees, and corporate and correspondent investment sales. Disciplined expense management helped contain expenses as total noninterest expenses declined $51 million compared to first quarter 2016 levels and were flat compared to second quarter 2015 levels.

Credit quality metrics remained sound despite continued pressure on the energy portfolio. Provision expense for the quarter totaled $87 million compared to $113 million in the first quarter of 2016 and exceeded net charge-offs by $21 million. The allowance for loan losses as a percentage of total loans ended the quarter at 1.37 percent, up from 1.32 percent at the end of the first quarter this year and 1.20 percent in the second quarter a year ago. Nonperforming loans as a percentage of total loans were 1.76 percent compared to 1.41 percent at the end of the first quarter, primarily reflecting the additional reclassification of certain energy credits.

"BBVA Compass is steadfast in its commitment to maintaining sound underwriting standards and a strong risk profile, and the proactive actions we have taken thus far to address our energy portfolio reflect this commitment," Sánchez said. "Total energy loans declined $419 million from first quarter levels and now represent 6 percent of our total loan portfolio, down from 6.7 percent at the end of the first quarter. At the same time, all of our other loan portfolios continue to perform within our expectations. Excluding energy loans, our nonperforming loan ratio was 0.77 percent and net charge-offs were 27 basis points."

"The recently completed stress tests are also further confirmation of our strong capital position, our ability to generate retained earnings and our capacity to absorb significant stress," Sánchez noted. Total shareholder's equity ended the second quarter of 2016 at $12.7 billion, a 4 percent increase from $12.3 billion at the end of the second 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 13.66 percent1 compared to 13.29 percent a year ago and the CET1 ratio rose to 10.79 percent1.

During the second quarter, BBVA Compass completed the purchase of four subsidiaries — Bancomer Transfer Services, Bancomer Payment Services, Bancomer Foreign Exchange and Bancomer Financial Services — from BBVA Bancomer USA, Inc. that engage in money transfer services. BBVA Bancomer USA, Inc. is a wholly owned subsidiary of BBVA Bancomer, S.A. (Mexico) and ultimately a wholly-owned subsidiary of BBVA. This transaction was accounted for as a merger of entities under common control and, accordingly, prior period financial information has been retrospectively adjusted to include their historical activity.

In recognizing BBVA Compass as the Best Digital Bank in North America, global finance magazine Euromoney recognized the strides the bank has made in mobile and lauded its efforts to transform its technology and culture in pursuit of exceptional client experiences. The publication also noted the bank's embrace of disrupters and cited its collaborations with Dwolla, FutureAdvisor and eCredable.

________________________________

1 Regulatory capital ratios at June 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 annual list of the Best Bank's 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 June 30,


%


Six Months Ended June 30,


%









2016


2015 [d]


 Change 


2016


2015 [d]


 Change 







EARNINGS SUMMARY



















Net interest income


$       504,238


$       491,983


2


$    1,021,120


$    1,001,014


2







Noninterest income [a]


256,562


260,552


(2)


501,414


502,343








Total revenue [a]


760,800


752,535


1


1,522,534


1,503,357


1







Investment securities gain, net


21,684


27,399


(21)


30,037


60,231


(50)







Loss on prepayment of FHLB advances



(3,569)


 NM 



(6,118)


 NM 







Provision for loan losses


86,673


46,149


88


199,918


88,180


127







Noninterest expense


541,037


539,487



1,133,181


1,078,783


5







Pretax income


154,774


190,729


(19)


219,472


390,507


(44)







Income tax expense


32,272


50,335


(36)


57,703


104,437


(45)







Net income


122,502


140,394


(13)


161,769


286,070


(43)







Net income attributable to noncontrolling interests


518


590


(12)


1,046


1,247


(16)







Net income attributable to BBVA Compass Bancshares, Inc.


$       121,984


$       139,804


(13)


$       160,723


$       284,823


(44)


























SELECTED RATIOS



















Return on average assets


0.53 %


0.64 %




0.35 %


0.67 %









Return on average tangible equity [b]


6.45


7.89




4.27


8.15









Average common equity to average assets


13.79


13.97




13.79


14.13









Average loans to average total deposits


91.11


95.41




91.63


95.04









Common equity tier I capital (CET1) [c]


10.79


10.57




10.79


10.57









Tier I capital ratio [c]


11.14


10.63




11.14


10.63









Total capital ratio [c]


13.66


13.29




13.66


13.29









Leverage ratio [c]


8.78


8.74




8.78


8.74




































































Average for Three Months




Average for Six Months




Ending Balance





Ended June 30,


%


Ended June 30,


%


June 30,


%



2016


2015 [d]


 Change 


2016


2015 [d]


 Change 


2016


2015 [d]


 Change 

BALANCE SHEET HIGHLIGHTS















Total loans


$  62,355,245


$  59,746,217


4


$  62,275,604


$  59,282,211


5


$  61,788,375


$  60,202,842


3

Total investment securities


12,493,595


11,536,999


8


12,488,652


11,461,944


9


12,617,412


11,767,559


7

Earning assets


79,171,032


76,075,375


4


79,117,352


74,889,097


6


78,813,552


77,173,568


2

Total assets


92,440,585


87,978,092


5


92,372,846


86,585,096


7


91,753,156


88,582,887


4

Noninterest bearing demand deposits


20,521,323


18,988,347


8


20,289,233


18,463,906


10


20,132,164


19,048,379


6

Interest bearing transaction accounts


32,975,782


30,727,865


7


32,918,640


31,074,124


6


32,625,540


30,448,569


7

Total transaction accounts


53,497,105


49,716,212


8


53,207,873


49,538,030


7


52,757,704


49,496,948


7

Total deposits


68,441,915


62,622,304


9


67,960,764


62,373,191


9


67,750,318


62,499,444


8

Shareholder's equity


12,751,155


12,291,532


4


12,739,562


12,231,403


4


12,726,996


12,286,343


4


[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



June 30


March 31


December 31


September 30


June 30

NONPERFORMING ASSETS











Nonaccrual loans [a]


$  1,026,592


$  819,034


$     407,045


$      380,930


$  395,350

Loans 90 days or more past due [b]


60,320


60,490


68,629


73,588


69,710

TDRs 90 days or more past due


998


491


874


678


1,224

Total nonperforming loans [a]


1,087,910


880,015


476,548


455,196


466,284

Other real estate owned, net (OREO)


18,225


17,877


20,862


23,762


20,188

Other repossessed assets


9,380


8,601


8,774


3,331


4,255

Total nonperforming assets


$  1,115,515


$  906,493


$     506,184


$      482,289


$  490,727












TDRs accruing and past due less than 90 days


$     118,222


$  120,316


$     150,038


$      154,397


$  155,592












Covered loans [c]


398,654


423,819


440,961


458,066


473,842

Covered nonperforming loans [c]


33,088


37,476


38,106


43,192


44,664

Covered nonperforming assets [c]


36,321


40,157


40,216


45,569


47,085












Total nonperforming loans as a % of loans


1.76 %


1.41 %


0.78 %


0.75 %


0.77 %

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


1.72


1.36


0.72


0.68


0.71

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


1.80


1.46


0.82


0.79


0.81

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


1.76


1.40


0.76


0.72


0.74














Three Months Ended



2016


2015



June 30


March 31


December 31


September 30


June 30

ALLOWANCE FOR LOAN LOSSES











Balance at beginning of period


$     822,440


$  762,673


$     722,122


$      721,471


$  701,864

Net charge-offs (NCO)


66,062


53,478


35,756


28,500


26,542

Provision for loan losses


86,673


113,245


76,307


29,151


46,149

Balance at end of period


$     843,051


$  822,440


$     762,673


$      722,122


$  721,471












Allowance for loan losses as a % of total loans


1.37 %


1.32 %


1.24 %


1.20 %


1.20 %

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


77.49


93.46


160.04


158.64


154.73

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


75.58


90.73


150.67


149.73


147.02












Annualized as a % of average loans:











NCO - QTD


0.43


0.35


0.23


0.19


0.18

NCO - YTD


0.39


0.35


0.19


0.18


0.18


[a]  Includes loans held for sale.

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

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

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

























June 30, 2016


March 31, 2016


December 31, 2015



Recorded
Investment


Total
Commitment


Nonaccrual


Recorded
Investment


Total
Commitment


Nonaccrual


Recorded
Investment


Total
Commitment


Nonaccrual

ENERGY PORTFOLIO


Exploration and production


$    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


1,395,584


3,315,382


21,268


1,541,465


3,426,768



1,355,503


3,293,216


Drilling oil and support services


270,420


495,563



292,769


504,455



266,871


554,782


Refineries and terminals


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


$    3,732,692


$    8,468,406


$    642,310


$    4,151,399


$    9,277,852


$    470,357


$    3,840,226


$    9,355,925


$    92,467






















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



ENERGY PORTFOLIO



















Exploration and production


51.8 %


3.1 %




51.6 %


3.4 %




53.2 %


3.4 %



Midstream


37.4


2.3




37.1


2.5




35.3


2.2



Drilling oil and support services


7.3


0.4




7.1


0.5




6.9


0.4



Refineries and terminals


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 %


6.0 %




100.0 %


6.7 %




100.0 %


6.3 %



 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)
















Three Months Ended June 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


$  62,355,245


$  575,852


3.71 %


$  59,746,217


$  545,701


3.66 %

Investment securities available for sale [a]


11,208,678


36,519


1.31


10,108,556


49,493


1.96

Investment securities held to maturity


1,265,643


9,754


3.10


1,371,906


10,000


2.92

Other earning assets


4,322,192


17,758


1.65


4,792,159


15,196


1.27

Total earning assets [a]


79,151,758


639,883


3.25


76,018,838


620,390


3.27

Allowance for loan losses


(837,147)






(704,594)





Unrealized gain (loss) on securities available for sale


19,274






56,537





Other assets


14,106,700






12,607,311





Total assets


$  92,440,585






$  87,978,092


















Liabilities and Shareholder's Equity













Interest bearing liabilities:













Interest bearing demand deposits


$    6,826,950


$      3,848


0.23


$    7,268,321


$      2,888


0.16

Savings and money market accounts


26,148,832


24,758


0.38


23,459,544


21,307


0.36

Certificates and other time deposits


14,852,744


48,280


1.31


12,719,306


40,911


1.29

Foreign office deposits


92,066


47


0.21


186,786


95


0.20

  Total interest bearing deposits


47,920,592


76,933


0.65


43,633,957


65,201


0.60

FHLB and other borrowings


4,448,139


19,592


1.77


6,000,934


27,540


1.84

Federal funds purchased and securities sold under agreement to repurchase


680,325


5,434


3.21


884,282


1,702


0.77

Other short-term borrowings


3,975,490


13,932


1.41


4,387,467


15,291


1.40

Total interest bearing liabilities


57,024,546


115,891


0.82


54,906,640


109,734


0.80

Noninterest bearing deposits


20,521,323






18,988,347





Other noninterest bearing liabilities


2,143,561






1,791,573





Total liabilities


79,689,430






75,686,560





Shareholder's equity


12,751,155






12,291,532





Total liabilities and shareholder's equity


$  92,440,585






$  87,978,092


















Net interest income/ net interest spread




523,992


2.43 %




510,656


2.47 %

Net yield on earning assets






2.66 %






2.69 %














Total taxable equivalent adjustment




19,754






18,673
















Net interest income




$  504,238






$  491,983




[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)
















Six Months Ended June 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


$  62,275,604


$  1,153,074


3.72 %


$  59,282,211


$  1,103,590


3.75 %

   Investment securities available for sale [a]


11,199,707


82,803


1.49


10,033,989


99,223


1.99

   Investment securities held to maturity


1,279,209


19,592


3.08


1,366,182


19,663


2.90

   Other earning assets


4,353,096


36,446


1.68


4,144,942


25,808


1.26

        Total earning assets [a]


79,107,616


1,291,915


3.28


74,827,324


1,248,284


3.36

Allowance for loan losses


(810,889)






(698,100)





Unrealized gain (loss) on securities available for sale


9,736






61,773





Other assets


14,066,383






12,394,099





Total assets


$  92,372,846






$  86,585,096


















Liabilities and Shareholder's Equity













Interest bearing liabilities:













Interest bearing demand deposits


$    6,956,442


7,790


0.23


$    7,450,170


5,925


0.16

Savings and money market accounts


25,962,198


51,501


0.40


23,623,954


48,205


0.41

Certificates and other time deposits


14,643,322


95,349


1.31


12,667,191


80,556


1.28

Foreign office deposits


109,569


108


0.20


167,970


168


0.20

 Total interest bearing deposits


47,671,531


154,748


0.65


43,909,285


134,854


0.62

FHLB and other borrowings


4,756,471


37,604


1.59


5,443,890


46,646


1.74

Federal funds purchased and securities sold under agreement to repurchase


740,284


11,591


3.15


911,894


3,028


0.67

Other short-term borrowings


4,000,459


27,828


1.40


3,772,277


25,539


1.37

        Total interest bearing liabilities


57,168,745


231,771


0.82


54,037,346


210,067


0.79

Noninterest bearing deposits


20,289,233






18,463,906





Other noninterest bearing liabilities


2,175,306






1,852,441





Total liabilities


79,633,284






74,353,693





Shareholder's equity


12,739,562






12,231,403





Total liabilities and shareholder's equity


$  92,372,846






$  86,585,096


















Net interest income/ net interest spread




1,060,144


2.46 %




1,038,217


2.57 %

Net yield on earning assets






2.69 %






2.80 %














     Total taxable equivalent adjustment




39,024






37,203
















     Net interest income




$  1,021,120






$  1,001,014




[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)




















Six Months




Three Months Ended



Ended June 30,


%


2016


2015 [a]



2016


2015


 Change 


June 30


March 31 [a]


December 31


September 30


June 30

NONINTEREST INCOME

















Service charges on deposit accounts


$     103,346


$     106,974


(3)


$    51,921


$     51,425


$       54,357


$        54,917


$    53,690

Card and merchant processing fees


61,251


54,894


12


31,509


29,742


28,900


29,024


28,711

Retail investment sales


49,552


51,519


(4)


26,985


22,567


24,040


26,055


26,373

Investment banking and advisory fees


51,939


67,133


(23)


28,335


23,604


20,260


17,842


36,799

Money transfer income


50,902


43,834


16


26,477


24,425


24,735


24,868


23,375

Asset management fees


17,191


16,531


4


8,386


8,805


8,745


7,918


8,435

Corporate and correspondent investment sales


14,516


14,243


2


10,103


4,413


9,710


6,047


7,984

Mortgage banking


(2,832)


20,715


 NM 


602


(3,434)


5,989


554


12,556

Bank owned life insurance


8,871


9,182


(3)


4,455


4,416


5,135


4,345


4,394

Other


146,678


117,318


25


67,789


78,889


67,536


82,414


58,235



501,414


502,343



256,562


244,852


249,407


253,984


260,552

Investment securities gains, net


30,037


60,231


(50)


21,684


8,353


14,689


6,736


27,399

Loss on prepayment of FHLB and other borrowings, net



(6,118)


 NM 




(1,898)



(3,569)

Total noninterest income


$     531,451


$     556,456


(4)


$  278,246


$   253,205


$     262,198


$      260,720


$  284,382


















NONINTEREST EXPENSE

















Salaries, benefits and commissions


$     556,935


$     533,685


4


$  277,166


$   279,769


$     276,647


$      271,143


$  272,071

Professional services


114,768


98,658


16


58,401


56,367


64,450


55,476


51,758

Equipment


119,949


115,897


3


59,508


60,441


57,739


58,414


57,458

Net occupancy


79,271


80,025


(1)


39,999


39,272


41,304


39,706


40,549

Money transfer expense


33,368


27,502


21


17,768


15,600


16,334


16,514


14,755

Marketing


24,215


21,707


12


11,506


12,709


9,447


10,624


11,619

Communications


10,638


11,248


(5)


5,463


5,175


5,423


5,856


5,360

Amortization of intangibles


8,187


20,576


(60)


4,094


4,093


9,125


9,507


9,889

Other


185,850


169,485


10


67,132


118,718


98,226


90,135


76,028

Total noninterest expense


$  1,133,181


$  1,078,783


5


$  541,037


$   592,144


$     578,695


$      557,375


$  539,487


















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 June 30,


Six Months Ended June 30,



2016


2015 [a]


2016


2015 [a]

NON-GAAP RECONCILIATION


















Computation of Average Tangible Equity:









Total stockholder's equity (average)


$  12,751,155


$  12,291,532


$  12,739,562


$  12,231,403

Less: Goodwill and other intangibles (average)


5,109,772


5,150,763


5,112,406


5,149,182

Average tangible equity [B]


$    7,641,383


$    7,140,769


$    7,627,156


$    7,082,221

  Net income [A]


$       122,502


$       140,394


$       161,769


$       286,070

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


6.45 %


7.89 %


4.27 %


8.15 %


[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 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


$                       -


















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


$                       -

 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)






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


$                       -


















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.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)


















At or Quarter Ended June 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

$                       18,524


$                         7,037


$                 3,149


$    147,051


$              9,693


$     24,767,734


$ 24,953,188


$                1,869

Real estate – construction

148


512


1,157


7,777


2,212


2,425,025


2,436,831


(2,106)

Commercial real estate –  mortgage

7,916


1,348


2,853


78,569


34,389


10,200,605


10,325,680


671

Residential real estate – mortgage

45,487


14,926


1,703


106,179


71,357


13,963,891


14,203,543


1,487

Equity lines of credit

7,833


4,370


2,515


33,757


-


2,304,225


2,352,700


3,608

Equity loans

5,202


1,553


1,147


16,175


38,998


576,051


639,126


(585)

Credit card

4,840


3,361


7,672


-


-


576,496


592,369


7,542

Consumer – direct

7,247


2,190


2,176


853


167


767,735


780,368


6,311

Consumer – indirect

47,676


8,895


2,810


4,853


-


3,185,345


3,249,579


7,593

Covered loans

5,930


3,640


44,528


136


-


419,608


473,842


152

Total loans

$                     150,803


$                       47,832


$              69,710


$    395,350


$         156,816


$     59,186,715


$ 60,007,226


$              26,542

Loans held for sale

$                                -


$                                -


$                        -


$                -


$                     -


$           195,616


$       195,616


$                       -

 

BBVA COMPASS BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)












2016


2015 [a]


June 30


March 31 [a]


December 31


September 30


June 30

Assets:










Cash and due from banks

$    4,829,763


$    5,136,283


$      4,165,880


$       3,949,049


$    3,412,125

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

319,644


233,411


330,948


479,207


512,244

Cash and cash equivalents

5,149,407


5,369,694


4,496,828


4,428,256


3,924,369

Trading account assets

4,355,025


4,358,533


4,138,132


4,193,506


4,879,125

Investment securities available for sale

11,359,159


11,265,797


11,050,520


10,803,660


10,392,484

Investment securities held to maturity

1,258,253


1,267,953


1,322,676


1,357,801


1,375,075

Loans held for sale

108,432


96,784


70,582


634,158


195,616

Loans

61,679,943


62,104,690


61,324,084


60,287,221


60,007,226

Allowance for loan losses

(843,051)


(822,440)


(762,673)


(722,122)


(721,471)

Net loans

60,836,892


61,282,250


60,561,411


59,565,099


59,285,755

Premises and equipment, net

1,290,738


1,297,539


1,322,378


1,310,995


1,316,869

Bank owned life insurance

708,143


704,254


700,285


697,023


698,773

Goodwill

5,043,197


5,043,197


5,043,197


5,060,197


5,060,161

Other intangible assets

23,389


27,483


31,576


40,701


50,208

Other real estate owned

18,225


17,877


20,862


23,762


20,188

Other assets

1,602,296


1,489,428


1,310,091


1,362,262


1,384,264

Total assets

$ 91,753,156


$ 92,220,789


$   90,068,538


$     89,477,420


$ 88,582,887

Liabilities:










Deposits:










Noninterest bearing

$ 20,132,164


$ 20,416,248


$   19,291,533


$     19,060,137


$ 19,048,379

Interest bearing

47,618,154


48,503,973


46,690,233


45,418,270


43,451,065

Total deposits

67,750,318


68,920,221


65,981,766


64,478,407


62,499,444

FHLB and other borrowings

5,098,048


4,383,454


5,438,620


6,216,425


6,778,066

Federal funds purchased and securities sold under agreements to repurchase

386,343


893,786


750,154


639,259


623,400

Other short-term borrowings

4,352,428


3,924,781


4,032,644


4,167,897


4,982,154

Accrued expenses and other liabilities

1,439,023


1,375,370


1,240,645


1,531,704


1,413,480

Total liabilities

79,026,160


79,497,612


77,443,829


77,033,692


76,296,544

Shareholder's Equity:










Preferred stock

229,475


229,475


229,475



Common stock — $0.01 par value

2,230


2,230


2,230


2,230


2,230

Surplus

15,022,974


15,152,077


15,160,267


15,237,899


15,237,241

Retained deficit

(2,536,230)


(2,658,214)


(2,696,953)


(2,788,111)


(2,917,260)

Accumulated other comprehensive loss

(20,500)


(31,945)


(99,336)


(37,882)


(64,969)

Total BBVA Compass Bancshares, Inc. shareholder's equity

12,697,949


12,693,623


12,595,683


12,414,136


12,257,242

Noncontrolling interests

29,047


29,554


29,026


29,592


29,101

Total shareholder's equity

12,726,996


12,723,177


12,624,709


12,443,728


12,286,343

Total liabilities and shareholder's equity

$ 91,753,156


$ 92,220,789


$   90,068,538


$     89,477,420


$ 88,582,887


[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]


June 30


March 31 [a]


December 31


September 30


June 30

Interest income:










Interest and fees on loans

$     559,170


$       561,083


$         546,392


$           540,517


$     531,394

Interest on investment securities available for sale

36,442


46,197


49,066


46,646


48,204

Interest on investment securities held to maturity

6,759


6,795


6,870


6,953


6,924

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

4,346


4,366


1,595


1,666


1,363

Interest on trading account assets

13,412


14,321


13,058


14,431


13,832

Total interest income

620,129


632,762


616,981


610,213


601,717

Interest expense:










Interest on deposits

76,933


77,815


71,342


68,282


65,201

Interest on FHLB and other borrowings

19,592


18,012


22,920


20,422


27,540

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

5,434


6,157


2,856


2,506


1,702

Interest on other short-term borrowings

13,932


13,896


15,774


11,129


15,291

Total interest expense

115,891


115,880


112,892


102,339


109,734

Net interest income

504,238


516,882


504,089


507,874


491,983

Provision for loan losses

86,673


113,245


76,307


29,151


46,149

Net interest income after provision for loan losses

417,565


403,637


427,782


478,723


445,834

Noninterest income:










Service charges on deposit accounts

51,921


51,425


54,357


54,917


53,690

Card and merchant processing fees

31,509


29,742


28,900


29,024


28,711

Retail investment sales

26,985


22,567


24,040


26,055


26,373

Investment banking and advisory fees

28,335


23,604


20,260


17,842


36,799

Money transfer income

26,477


24,425


24,735


24,868


23,375

Asset management fees

8,386


8,805


8,745


7,918


8,435

Corporate and correspondent investment sales

10,103


4,413


9,710


6,047


7,984

Mortgage banking

602


(3,434)


5,989


554


12,556

Bank owned life insurance

4,455


4,416


5,135


4,345


4,394

Investment securities gains, net

21,684


8,353


14,689


6,736


27,399

Loss on prepayment of FHLB and other borrowings



(1,898)



(3,569)

Other

67,789


78,889


67,536


82,414


58,235

Total noninterest income

278,246


253,205


262,198


260,720


284,382

Noninterest expense:










Salaries, benefits and commissions

277,166


279,769


276,647


271,143


272,071

Professional services

58,401


56,367


64,450


55,476


51,758

Equipment

59,508


60,441


57,739


58,414


57,458

Net occupancy

39,999


39,272


41,304


39,706


40,549

Money transfer expense

17,768


15,600


16,334


16,514


14,755

Marketing

11,506


12,709


9,447


10,624


11,619

Communications

5,463


5,175


5,423


5,856


5,360

Amortization of intangibles

4,094


4,093


9,125


9,507


9,889

Other

67,132


118,718


98,226


90,135


76,028

Total noninterest expense

541,037


592,144


578,695


557,375


539,487

Net income before income tax expense

154,774


64,698


111,285


182,068


190,729

Income tax expense

32,272


25,431


19,637


52,428


50,335

Net income

122,502


39,267


91,648


129,640


140,394

Less: net income attributable to noncontrolling interests

518


528


490


491


590

Net income attributable to BBVA Compass Bancshares, Inc.

$    121,984


$        38,739


$          91,158


$          129,149


$    139,804


[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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bbva-compass-reports-net-income-of-162-million-for-the-first-half-of-2016-300306227.html

SOURCE BBVA Compass


Source: PR Newswire (July 29, 2016 - 9:31 AM EDT)

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