Texas (State or other jurisdiction of incorporation) | 000-55106 (Commission File Number) | 20-8948381 (IRS Employer Identification No.) | |||
2200 Post Oak Blvd. Houston, Texas (Address of principal executive offices) | 77056 (Zip Code) | ||||
(205) 297-3000 (Registrant's telephone number, including area code) Not applicable (Former name or former address, if changed since last report) |
Exhibit Number | Description | |
99.1 | Press Release of the Company dated April 27, 2017 containing financial information for the first quarter ended March 31, 2017. |
BBVA Compass Bancshares, Inc. | |
By: | /s/ Jonathan W. Pennington |
Name: | Jonathan W. Pennington |
Title: | Executive Vice President and Controller |
◦ | Significant improvement in net income, reaching $121 million |
▪ | 35 percent improvement from prior quarter and 208 percent increase from a year ago |
▪ | Return on average assets and return on average tangible equity1 for the first quarter of 2017 were 0.56 percent and 6.28 percent, respectively |
◦ | Total revenue up 5 percent from a year ago and 2 percent (annualized) from fourth quarter 2016 levels |
▪ | Net interest income (NII) increases $35 million or 7 percent from year ago |
▪ | NII linked quarter growth more pronounced at 15 percent (annualized) |
▪ | Net interest margin (FTE) increases 35 basis points from prior year and 18 basis points from fourth quarter 2016 levels |
▪ | Market sensitive fee based businesses post double-digit year-over-year growth |
◦ | Strong focus on expense management results in decline in noninterest expense from prior quarter and year ago levels |
◦ | Continued focus on targeted balance sheet growth and spread management |
▪ | Average total loans of $60.3 billion down 3 percent from prior year |
• | Newly funded customer loans of $3.5 billion in the quarter |
▪ | Average total deposits of $67.2 billion relatively unchanged from a year ago |
• | Noninterest bearing deposit growth continues, up 3 percent |
• | Noninterest bearing deposits represent 31.8 percent of total deposits |
◦ | Improvement in energy portfolio leads to decline in nonperforming loans |
▪ | Nonperforming loan ratio drops to 1.49 percent, down 14 basis points from 4Q16 |
▪ | Net charge-off ratio at 57 basis points compared to 35 basis points in 1Q16 |
▪ | Allowance to loan ratio at 1.40 percent and coverage ratio at 93 percent |
◦ | Capital optimization leads to further strengthening of regulatory capital ratios |
▪ | Common Equity Tier 1 capital ratio (phased-in)2 increases to 11.75 percent |
▪ | Regulatory capital ratios2 remain significantly above “well-capitalized” guidelines |
Contact details: | ||
Christina Anderson | Ed Bilek | |
Corporate Communications | Investor Relations | |
Tel. 205.524.5214 | Tel. 205.297.3331 | |
christina.anderson@bbva.com | ed.bilek@bbva.com |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | |||||||||||
Three Months Ended March 31, | % | ||||||||||
2017 | 2016 [d] | Change | |||||||||
EARNINGS SUMMARY | |||||||||||
Net interest income | $ | 551,433 | $ | 516,882 | 7 | ||||||
Noninterest income [a] | 244,687 | 244,852 | — | ||||||||
Total revenue [a] | 796,120 | 761,734 | 5 | ||||||||
Investment securities gain, net | — | 8,353 | (100 | ) | |||||||
Provision for loan losses | 80,139 | 113,245 | (29 | ) | |||||||
Noninterest expense | 549,312 | 592,144 | (7 | ) | |||||||
Pretax income | 166,669 | 64,698 | 158 | ||||||||
Income tax expense | 45,846 | 25,431 | 80 | ||||||||
Net income | 120,823 | 39,267 | 208 | ||||||||
Net income attributable to noncontrolling interests | 443 | 528 | (16 | ) | |||||||
Net income attributable to BBVA Compass Bancshares, Inc. | $ | 120,380 | $ | 38,739 | 211 | ||||||
SELECTED RATIOS | |||||||||||
Return on average assets | 0.56 | % | 0.17 | % | |||||||
Return on average tangible equity [b] | 6.28 | 2.07 | |||||||||
Average common equity to average assets | 14.36 | 13.54 | |||||||||
Average loans to average total deposits | 89.75 | 92.17 | |||||||||
Common equity tier I capital (CET1) [c] | 11.75 | 10.64 | |||||||||
Tier I capital ratio [c] | 12.11 | 10.99 | |||||||||
Total capital ratio [c] | 14.51 | 13.55 | |||||||||
Leverage ratio [c] | 9.68 | 8.74 | |||||||||
[a] Excludes net gain on sales of investment securities. | |||||||||||
[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. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||
Average for Three Months | Ending Balance | |||||||||||||||||||||
Ended March 31, | % | March 31, | % | |||||||||||||||||||
2017 | 2016 [d] | Change | 2017 | 2016 [d] | Change | |||||||||||||||||
BALANCE SHEET HIGHLIGHTS | ||||||||||||||||||||||
Total loans | $ | 60,326,849 | $ | 62,195,963 | (3 | ) | $ | 59,780,508 | $ | 62,201,474 | (4 | ) | ||||||||||
Total investment securities | 12,880,779 | 12,483,709 | 3 | 13,005,403 | 12,533,750 | 4 | ||||||||||||||||
Earning assets | 78,264,483 | 82,597,709 | (5 | ) | 78,364,526 | 79,091,520 | (1 | ) | ||||||||||||||
Total assets | 87,676,882 | 92,305,106 | (5 | ) | 87,309,233 | 92,220,789 | (5 | ) | ||||||||||||||
Noninterest bearing demand deposits | 20,577,690 | 20,057,143 | 3 | 21,476,890 | 20,416,248 | 5 | ||||||||||||||||
Interest bearing transaction accounts | 33,409,808 | 32,861,499 | 2 | 33,978,555 | 33,350,134 | 2 | ||||||||||||||||
Total transaction accounts | 53,987,498 | 52,918,642 | 2 | 55,455,445 | 53,766,382 | 3 | ||||||||||||||||
Total deposits | 67,216,855 | 67,479,613 | — | 67,529,638 | 68,920,221 | (2 | ) | |||||||||||||||
Total shareholder's equity | 12,852,658 | 12,727,970 | 1 | 12,885,499 | 12,723,177 | 1 |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||
Nonaccrual loans [a] | $ | 825,988 | $ | 921,042 | $ | 1,086,018 | $ | 1,026,592 | $ | 819,034 | ||||||||||
Loans 90 days or more past due [b] | 65,617 | 61,542 | 65,525 | 60,320 | 60,490 | |||||||||||||||
TDRs 90 days or more past due | 1,185 | 589 | 618 | 998 | 491 | |||||||||||||||
Total nonperforming loans [a] | 892,790 | 983,173 | 1,152,161 | 1,087,910 | 880,015 | |||||||||||||||
Other real estate owned, net (OREO) | 25,113 | 21,112 | 21,670 | 18,225 | 17,877 | |||||||||||||||
Other repossessed assets | 9,540 | 7,587 | 6,900 | 9,380 | 8,601 | |||||||||||||||
Total nonperforming assets | $ | 927,443 | $ | 1,011,872 | $ | 1,180,731 | $ | 1,115,515 | $ | 906,493 | ||||||||||
TDRs accruing and past due less than 90 days | $ | 128,558 | $ | 110,733 | $ | 116,941 | $ | 118,222 | $ | 120,316 | ||||||||||
Total nonperforming loans as a % of loans | 1.49 | % | 1.63 | % | 1.91 | % | 1.76 | % | 1.41 | % | ||||||||||
Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets | 1.55 | 1.68 | 1.96 | 1.80 | 1.46 | |||||||||||||||
[a] Includes loans held for sale. | ||||||||||||||||||||
[b] Excludes loans classified as troubled debt restructuring (TDRs). |
Three Months Ended | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 838,293 | $ | 862,080 | $ | 843,051 | $ | 822,440 | $ | 762,673 | ||||||||||
Net charge-offs (NCO) | 84,326 | 61,351 | 46,078 | 66,062 | 53,478 | |||||||||||||||
Provision for loan losses | 80,139 | 37,564 | 65,107 | 86,673 | 113,245 | |||||||||||||||
Balance at end of period | $ | 834,106 | $ | 838,293 | $ | 862,080 | $ | 843,051 | $ | 822,440 | ||||||||||
Allowance for loan losses as a % of total loans | 1.40 | % | 1.40 | % | 1.43 | % | 1.37 | % | 1.32 | % | ||||||||||
Allowance for loan losses as a % of nonperforming loans [c] | 93.43 | 85.26 | 74.82 | 77.49 | 93.46 | |||||||||||||||
Allowance for loan losses as a % of nonperforming assets [c] | 89.94 | 82.85 | 73.01 | 75.58 | 90.73 | |||||||||||||||
Annualized as a % of average loans: | ||||||||||||||||||||
NCO - QTD | 0.57 | 0.40 | 0.30 | 0.43 | 0.35 | |||||||||||||||
NCO - YTD | 0.57 | 0.37 | 0.36 | 0.39 | 0.35 | |||||||||||||||
[c] Includes loans held for sale that are on nonaccrual status. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||||||||||||||||||||||||||
Recorded Investment | Total Commitment | Nonaccrual | Recorded Investment | Total Commitment | Nonaccrual | Recorded Investment | Total Commitment | Nonaccrual | ||||||||||||||||||||||||||||
ENERGY PORTFOLIO | ||||||||||||||||||||||||||||||||||||
Exploration and production | $ | 1,485,146 | $ | 4,075,960 | $ | 261,262 | $ | 1,654,565 | $ | 4,182,861 | $ | 308,096 | $ | 2,140,376 | $ | 5,034,557 | $ | 469,882 | ||||||||||||||||||
Midstream | 1,070,490 | 3,163,821 | 11,298 | 1,199,844 | 3,230,513 | 11,298 | 1,541,465 | 3,426,768 | — | |||||||||||||||||||||||||||
Drilling oil and support services | 193,863 | 398,824 | 2,393 | 263,770 | 467,908 | 66,811 | 292,769 | 504,455 | — | |||||||||||||||||||||||||||
Refineries and terminals | 124,872 | 260,770 | 310 | 128,010 | 262,618 | 339 | 134,211 | 202,659 | 475 | |||||||||||||||||||||||||||
Other | — | — | — | — | — | — | 42,578 | 109,413 | — | |||||||||||||||||||||||||||
Total energy portfolio | $ | 2,874,371 | $ | 7,899,375 | $ | 275,263 | $ | 3,246,189 | $ | 8,143,900 | $ | 386,544 | $ | 4,151,399 | $ | 9,277,852 | $ | 470,357 | ||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||||||||||||||||||||||||||
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 | 51.7 | % | 2.5 | % | 51.0 | % | 2.7 | % | 51.6 | % | 3.4 | % | ||||||||||||||||||||||||
Midstream | 37.2 | 1.8 | 37.0 | 2.0 | 37.1 | 2.5 | ||||||||||||||||||||||||||||||
Drilling oil and support services | 6.8 | 0.3 | 8.1 | 0.4 | 7.1 | 0.5 | ||||||||||||||||||||||||||||||
Refineries and terminals | 4.3 | 0.2 | 3.9 | 0.2 | 3.2 | 0.2 | ||||||||||||||||||||||||||||||
Other | — | — | — | — | 1.0 | 0.1 | ||||||||||||||||||||||||||||||
Total energy portfolio | 100.0 | % | 4.8 | % | 100.0 | % | 5.4 | % | 100.0 | % | 6.7 | % |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2017 | 2016 [b] | |||||||||||||||||||||
Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |||||||||||||||||
YIELD/RATE ANALYSIS | ||||||||||||||||||||||
(Taxable Equivalent Basis) | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||
Earning assets: | ||||||||||||||||||||||
Loans | $ | 60,326,849 | $ | 591,704 | 3.98 | % | $ | 62,195,963 | $ | 577,222 | 3.73 | % | ||||||||||
Investment securities available for sale [a] | 11,853,989 | 54,932 | 1.88 | 11,190,735 | 46,284 | 1.66 | ||||||||||||||||
Investment securities held to maturity | 1,168,799 | 9,571 | 3.32 | 1,292,776 | 9,838 | 3.06 | ||||||||||||||||
Other earning assets [c] [d] | 5,056,855 | 19,560 | 1.57 | 7,918,037 | 18,688 | 0.95 | ||||||||||||||||
Total earning assets [a] | 78,406,492 | 675,767 | 3.50 | 82,597,511 | 652,032 | 3.17 | ||||||||||||||||
Allowance for loan losses | (850,362 | ) | (784,632 | ) | ||||||||||||||||||
Unrealized gain (loss) on securities available for sale | (142,009 | ) | 198 | |||||||||||||||||||
Other assets | 10,262,761 | 10,492,029 | ||||||||||||||||||||
Total assets | $ | 87,676,882 | $ | 92,305,106 | ||||||||||||||||||
Liabilities and Shareholder's Equity | ||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||
Interest bearing demand deposits | $ | 8,190,873 | $ | 6,131 | 0.30 | $ | 7,085,934 | $ | 3,942 | 0.22 | ||||||||||||
Savings and money market accounts | 25,218,935 | 22,301 | 0.36 | 25,775,565 | 26,743 | 0.42 | ||||||||||||||||
Certificates and other time deposits | 13,229,357 | 41,872 | 1.28 | 14,433,900 | 47,069 | 1.31 | ||||||||||||||||
Foreign office deposits | — | — | — | 127,071 | 61 | 0.19 | ||||||||||||||||
Total interest bearing deposits | 46,639,165 | 70,304 | 0.61 | 47,422,470 | 77,815 | 0.66 | ||||||||||||||||
FHLB and other borrowings | 3,167,805 | 19,068 | 2.44 | 5,064,803 | 18,012 | 1.43 | ||||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase [d] | 42,855 | 4,897 | 46.34 | 800,243 | 6,157 | 3.09 | ||||||||||||||||
Other short-term borrowings | 2,707,802 | 10,086 | 1.51 | 4,025,428 | 13,896 | 1.39 | ||||||||||||||||
Total interest bearing liabilities | 52,557,627 | 104,355 | 0.81 | 57,312,944 | 115,880 | 0.81 | ||||||||||||||||
Noninterest bearing deposits | 20,577,690 | 20,057,143 | ||||||||||||||||||||
Other noninterest bearing liabilities | 1,688,907 | 2,207,049 | ||||||||||||||||||||
Total liabilities | 74,824,224 | 79,577,136 | ||||||||||||||||||||
Shareholder's equity | 12,852,658 | 12,727,970 | ||||||||||||||||||||
Total liabilities and shareholder's equity | $ | 87,676,882 | $ | 92,305,106 | ||||||||||||||||||
Net interest income/ net interest spread | 571,412 | 2.69 | % | 536,152 | 2.36 | % | ||||||||||||||||
Net yield on earning assets | 2.96 | % | 2.61 | % | ||||||||||||||||||
Total taxable equivalent adjustment | 19,979 | 19,270 | ||||||||||||||||||||
Net interest income | $ | 551,433 | $ | 516,882 | ||||||||||||||||||
[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. | ||||||||||||||||||||||
[c] Beginning in the fourth quarter of 2016, interest bearing deposits with the Federal Reserve are included in earning assets. In prior periods, these balances were included with cash and due from banks in the cash and cash equivalents line, consistent with the Condensed Consolidated Balance Sheet presentation. Prior periods have been reclassified to conform to current period presentation. | ||||||||||||||||||||||
[d] Yield/rate reflects impact of balance sheet offsetting. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||||||
Three Months | Three Months Ended | ||||||||||||||||||||||||||||||
Ended March 31, | % | 2017 | 2016 | ||||||||||||||||||||||||||||
2017 | 2016 [a] | Change | March 31 | December 31 | September 30 | June 30 | March 31 [a] | ||||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 55,168 | $ | 51,425 | 7 | $ | 55,168 | $ | 55,901 | $ | 55,047 | $ | 51,921 | $ | 51,425 | ||||||||||||||||
Card and merchant processing fees | 29,992 | 29,742 | 1 | 29,992 | 31,161 | 31,256 | 31,509 | 29,742 | |||||||||||||||||||||||
Retail investment sales | 27,471 | 22,567 | 22 | 27,471 | 23,293 | 30,137 | 26,985 | 22,567 | |||||||||||||||||||||||
Investment banking and advisory fees | 28,301 | 23,604 | 20 | 28,301 | 20,792 | 34,385 | 28,335 | 23,604 | |||||||||||||||||||||||
Money transfer income | 25,197 | 24,425 | 3 | 25,197 | 28,632 | 25,058 | 26,477 | 24,425 | |||||||||||||||||||||||
Asset management fees | 9,771 | 8,805 | 11 | 9,771 | 8,906 | 8,778 | 8,386 | 8,805 | |||||||||||||||||||||||
Corporate and correspondent investment sales | 8,915 | 4,413 | 102 | 8,915 | 3,199 | 6,974 | 10,103 | 4,413 | |||||||||||||||||||||||
Mortgage banking | 2,870 | (3,434 | ) | NM | 2,870 | 16,086 | 8,242 | 602 | (3,434 | ) | |||||||||||||||||||||
Bank owned life insurance | 4,169 | 4,416 | (6 | ) | 4,169 | 4,202 | 4,170 | 4,455 | 4,416 | ||||||||||||||||||||||
Other | 52,833 | 78,889 | (33 | ) | 52,833 | 68,881 | 59,718 | 67,789 | 78,889 | ||||||||||||||||||||||
244,687 | 244,852 | — | 244,687 | 261,053 | 263,765 | 256,562 | 244,852 | ||||||||||||||||||||||||
Investment securities gains, net | — | 8,353 | (100 | ) | — | — | — | 21,684 | 8,353 | ||||||||||||||||||||||
Loss on prepayment of FHLB and other borrowings, net | — | — | — | — | (295 | ) | — | — | — | ||||||||||||||||||||||
Total noninterest income | $ | 244,687 | $ | 253,205 | (3 | ) | $ | 244,687 | $ | 260,758 | $ | 263,765 | $ | 278,246 | $ | 253,205 | |||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||||||
Salaries, benefits and commissions | $ | 268,015 | $ | 279,769 | (4 | ) | $ | 268,015 | $ | 283,609 | $ | 279,132 | $ | 277,166 | $ | 279,769 | |||||||||||||||
Professional services | 57,807 | 56,367 | 3 | 57,807 | 63,810 | 63,628 | 58,401 | 56,367 | |||||||||||||||||||||||
Equipment | 61,630 | 60,441 | 2 | 61,630 | 62,627 | 59,697 | 59,508 | 60,441 | |||||||||||||||||||||||
Net occupancy | 42,101 | 39,272 | 7 | 42,101 | 40,116 | 41,610 | 39,999 | 39,272 | |||||||||||||||||||||||
Money transfer expense | 16,324 | 15,600 | 5 | 16,324 | 17,426 | 16,680 | 17,768 | 15,600 | |||||||||||||||||||||||
Marketing | 13,545 | 12,709 | 7 | 13,545 | 13,018 | 13,316 | 11,506 | 12,709 | |||||||||||||||||||||||
Communications | 5,219 | 5,175 | 1 | 5,219 | 5,406 | 5,002 | 5,463 | 5,175 | |||||||||||||||||||||||
Amortization of intangibles | 2,525 | 4,093 | (38 | ) | 2,525 | 4,093 | 4,093 | 4,094 | 4,093 | ||||||||||||||||||||||
Goodwill impairment | — | — | — | — | 59,901 | — | — | — | |||||||||||||||||||||||
Other | 82,146 | 118,718 | (31 | ) | 82,146 | 64,064 | 73,113 | 67,132 | 118,718 | ||||||||||||||||||||||
Total noninterest expense | $ | 549,312 | $ | 592,144 | (7 | ) | $ | 549,312 | $ | 614,070 | $ | 556,271 | $ | 541,037 | $ | 592,144 | |||||||||||||||
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 March 31, | ||||||||
2017 | 2016 [a] | |||||||
NON-GAAP RECONCILIATION | ||||||||
Computation of Average Tangible Equity: | ||||||||
Total stockholder's equity (average) | $ | 12,852,658 | $ | 12,727,970 | ||||
Less: Goodwill and other intangibles (average) | 5,049,493 | 5,115,041 | ||||||
Average tangible equity [B] | $ | 7,803,165 | $ | 7,612,929 | ||||
Net income [A] | $ | 120,823 | $ | 39,267 | ||||
Return on average tangible equity ([A]/[B], annualized) | 6.28 | % | 2.07 | % | ||||
[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) (In Thousands) | |||||||||||||||||||||||||||||||
At or Quarter Ended March 31, 2017 | |||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Nonaccrual | Accruing TDRs | Not Past Due or Impaired | Total | Net Charge Offs (Recoveries) | ||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 22,472 | $ | 11,804 | $ | 4,405 | $ | 540,407 | $ | 31,644 | $ | 24,049,936 | $ | 24,660,668 | $ | 39,411 | |||||||||||||||
Real estate – construction | 487 | 25 | 3,640 | 1,028 | 114 | 2,222,111 | 2,227,405 | (57 | ) | ||||||||||||||||||||||
Commercial real estate – mortgage | 13,872 | 1,226 | 4,602 | 89,908 | 4,821 | 11,284,392 | 11,398,821 | (741 | ) | ||||||||||||||||||||||
Residential real estate – mortgage | 61,234 | 22,337 | 2,653 | 140,342 | 58,867 | 12,832,343 | 13,117,776 | 1,195 | |||||||||||||||||||||||
Equity lines of credit | 9,144 | 3,619 | 1,478 | 32,675 | — | 2,513,579 | 2,560,495 | 1,166 | |||||||||||||||||||||||
Equity loans | 5,105 | 1,592 | 376 | 12,626 | 33,635 | 367,028 | 420,362 | 848 | |||||||||||||||||||||||
Credit card | 6,262 | 4,719 | 12,453 | — | — | 546,877 | 570,311 | 9,818 | |||||||||||||||||||||||
Consumer – direct | 12,025 | 4,866 | 4,874 | 637 | 662 | 1,306,178 | 1,329,242 | 16,818 | |||||||||||||||||||||||
Consumer – indirect | 68,851 | 16,161 | 7,463 | 7,955 | — | 2,978,318 | 3,078,748 | 15,899 | |||||||||||||||||||||||
Covered loans | 6,448 | 3,479 | 23,673 | 410 | — | 307,929 | 341,939 | (31 | ) | ||||||||||||||||||||||
Total loans | $ | 205,900 | $ | 69,828 | $ | 65,617 | $ | 825,988 | $ | 129,743 | $ | 58,408,691 | $ | 59,705,767 | $ | 84,326 | |||||||||||||||
Loans held for sale | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 74,741 | $ | 74,741 | $ | — |
At or Quarter Ended December 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 | $ | 23,788 | $ | 6,581 | $ | 2,891 | $ | 596,454 | $ | 8,726 | $ | 24,483,562 | $ | 25,122,002 | $ | 14,413 | |||||||||||||||
Real estate – construction | 918 | 50 | 2,007 | 1,239 | 2,393 | 2,118,709 | 2,125,316 | (383 | ) | ||||||||||||||||||||||
Commercial real estate – mortgage | 3,791 | 3,474 | — | 71,921 | 4,860 | 11,126,614 | 11,210,660 | 280 | |||||||||||||||||||||||
Residential real estate – mortgage | 57,359 | 28,450 | 3,356 | 140,303 | 59,893 | 12,970,633 | 13,259,994 | 1,044 | |||||||||||||||||||||||
Equity lines of credit | 7,922 | 4,583 | 2,950 | 33,453 | — | 2,494,870 | 2,543,778 | 641 | |||||||||||||||||||||||
Equity loans | 5,615 | 1,843 | 467 | 13,635 | 34,746 | 389,403 | 445,709 | 512 | |||||||||||||||||||||||
Credit card | 6,411 | 5,042 | 10,954 | — | — | 582,474 | 604,881 | 9,680 | |||||||||||||||||||||||
Consumer – direct | 13,338 | 4,563 | 4,482 | 789 | 704 | 1,230,765 | 1,254,641 | 15,343 | |||||||||||||||||||||||
Consumer – indirect | 85,198 | 22,833 | 7,197 | 5,926 | — | 3,013,794 | 3,134,948 | 19,902 | |||||||||||||||||||||||
Covered loans | 7,311 | 1,351 | 27,238 | 730 | — | 322,704 | 359,334 | (81 | ) | ||||||||||||||||||||||
Total loans | $ | 211,651 | $ | 78,770 | $ | 61,542 | $ | 864,450 | $ | 111,322 | $ | 58,733,528 | $ | 60,061,263 | $ | 61,351 | |||||||||||||||
Loans held for sale | $ | — | $ | — | $ | — | $ | 56,592 | $ | — | $ | 105,257 | $ | 161,849 | $ | — |
At or Quarter Ended September 30, 2016 | |||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Nonaccrual | Accruing TDRs | Not Past Due or Impaired | Total | Net Charge Offs (Recoveries) | ||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 72,328 | $ | 4,400 | $ | 5,320 | $ | 850,075 | $ | 9,283 | $ | 23,897,662 | $ | 24,839,068 | $ | 8,936 | |||||||||||||||
Real estate – construction | 522 | 1,062 | 2,782 | 1,214 | 3,315 | 2,206,377 | 2,215,272 | (206 | ) | ||||||||||||||||||||||
Commercial real estate – mortgage | 7,614 | 369 | 783 | 63,593 | 5,141 | 11,284,130 | 11,361,630 | (372 | ) | ||||||||||||||||||||||
Residential real estate – mortgage | 56,204 | 21,200 | 3,929 | 117,243 | 63,008 | 13,195,851 | 13,457,435 | 560 | |||||||||||||||||||||||
Equity lines of credit | 8,173 | 4,477 | 2,417 | 32,642 | — | 2,446,759 | 2,494,468 | 601 | |||||||||||||||||||||||
Equity loans | 5,567 | 1,694 | 353 | 13,198 | 36,053 | 422,510 | 479,375 | 18 | |||||||||||||||||||||||
Credit card | 5,696 | 4,264 | 10,175 | — | — | 579,727 | 599,862 | 8,460 | |||||||||||||||||||||||
Consumer – direct | 12,099 | 4,725 | 4,191 | 765 | 759 | 1,164,288 | 1,186,827 | 12,884 | |||||||||||||||||||||||
Consumer – indirect | 73,045 | 20,165 | 7,070 | 7,019 | — | 3,088,936 | 3,196,235 | 15,197 | |||||||||||||||||||||||
Covered loans | 4,075 | 3,844 | 28,505 | 269 | — | 344,418 | 381,111 | — | |||||||||||||||||||||||
Total loans | $ | 245,323 | $ | 66,200 | $ | 65,525 | $ | 1,086,018 | $ | 117,559 | $ | 58,630,658 | $ | 60,211,283 | $ | 46,078 | |||||||||||||||
Loans held for sale | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 101,843 | $ | 101,843 | $ | — |
At or Quarter Ended June 30, 2016 | |||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Nonaccrual | Accruing TDRs | Not Past Due or Impaired | Total | Net Charge Offs (Recoveries) | ||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 8,750 | $ | 4,499 | $ | 4,175 | $ | 797,066 | $ | 9,333 | $ | 25,552,413 | $ | 26,376,236 | $ | 31,773 | |||||||||||||||
Real estate – construction | 1,675 | 1,195 | 2,064 | 1,983 | 2,650 | 2,117,823 | 2,127,390 | (1,094 | ) | ||||||||||||||||||||||
Commercial real estate – mortgage | 3,495 | 535 | — | 62,381 | 5,603 | 11,184,061 | 11,256,075 | 1,684 | |||||||||||||||||||||||
Residential real estate – mortgage | 51,319 | 18,866 | 1,286 | 109,805 | 64,341 | 13,251,401 | 13,497,018 | 471 | |||||||||||||||||||||||
Equity lines of credit | 7,279 | 3,996 | 1,565 | 34,043 | — | 2,418,631 | 2,465,514 | 854 | |||||||||||||||||||||||
Equity loans | 4,378 | 1,214 | 568 | 14,254 | 36,485 | 456,090 | 512,989 | (19 | ) | ||||||||||||||||||||||
Credit card | 5,588 | 3,768 | 9,056 | — | — | 590,475 | 608,887 | 8,127 | |||||||||||||||||||||||
Consumer – direct | 10,319 | 4,670 | 3,354 | 540 | 808 | 1,070,803 | 1,090,494 | 9,924 | |||||||||||||||||||||||
Consumer – indirect | 69,575 | 17,053 | 5,324 | 6,360 | — | 3,248,374 | 3,346,686 | 13,027 | |||||||||||||||||||||||
Covered loans | 5,124 | 4,115 | 32,928 | 160 | — | 356,327 | 398,654 | 1,315 | |||||||||||||||||||||||
Total loans | $ | 167,502 | $ | 59,911 | $ | 60,320 | $ | 1,026,592 | $ | 119,220 | $ | 60,246,398 | $ | 61,679,943 | $ | 66,062 | |||||||||||||||
Loans held for sale | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 108,432 | $ | 108,432 | $ | — |
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. BALANCE SHEET (Unaudited) (In Thousands) | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 [a] | |||||||||||||||
Assets: | |||||||||||||||||||
Cash and due from banks | $ | 1,093,797 | $ | 1,284,261 | $ | 1,130,610 | $ | 1,581,187 | $ | 1,108,416 | |||||||||
Interest bearing funds with the Federal Reserve | 2,669,135 | 1,830,078 | 2,923,813 | 3,248,576 | 4,027,867 | ||||||||||||||
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 197,000 | 137,447 | 372,268 | 319,644 | 233,411 | ||||||||||||||
Cash and cash equivalents | 3,959,932 | 3,251,786 | 4,426,691 | 5,149,407 | 5,369,694 | ||||||||||||||
Trading account assets | 2,892,254 | 3,144,600 | 4,051,461 | 4,355,025 | 4,358,533 | ||||||||||||||
Investment securities available for sale | 11,846,618 | 11,665,055 | 11,516,885 | 11,359,159 | 11,265,797 | ||||||||||||||
Investment securities held to maturity | 1,158,785 | 1,203,217 | 1,240,850 | 1,258,253 | 1,267,953 | ||||||||||||||
Loans held for sale | 74,741 | 161,849 | 101,843 | 108,432 | 96,784 | ||||||||||||||
Loans | 59,705,767 | 60,061,263 | 60,211,283 | 61,679,943 | 62,104,690 | ||||||||||||||
Allowance for loan losses | (834,106 | ) | (838,293 | ) | (862,080 | ) | (843,051 | ) | (822,440 | ) | |||||||||
Net loans | 58,871,661 | 59,222,970 | 59,349,203 | 60,836,892 | 61,282,250 | ||||||||||||||
Premises and equipment, net | 1,273,226 | 1,300,054 | 1,287,457 | 1,290,738 | 1,297,539 | ||||||||||||||
Bank owned life insurance | 715,883 | 711,939 | 712,422 | 708,143 | 704,254 | ||||||||||||||
Goodwill | 4,983,296 | 4,983,296 | 5,043,197 | 5,043,197 | 5,043,197 | ||||||||||||||
Other assets | 1,532,837 | 1,435,187 | 1,626,829 | 1,643,910 | 1,534,788 | ||||||||||||||
Total assets | $ | 87,309,233 | $ | 87,079,953 | $ | 89,356,838 | $ | 91,753,156 | $ | 92,220,789 | |||||||||
Liabilities: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest bearing | $ | 21,476,890 | $ | 20,332,792 | $ | 20,585,598 | $ | 20,132,164 | $ | 20,416,248 | |||||||||
Interest bearing | 46,052,748 | 46,946,741 | 47,001,739 | 47,618,154 | 48,503,973 | ||||||||||||||
Total deposits | 67,529,638 | 67,279,533 | 67,587,337 | 67,750,318 | 68,920,221 | ||||||||||||||
FHLB and other borrowings | 2,993,222 | 3,001,551 | 3,671,861 | 5,098,048 | 4,383,454 | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 71,559 | 39,052 | 165,573 | 386,343 | 893,786 | ||||||||||||||
Other short-term borrowings | 2,642,539 | 2,802,977 | 3,591,223 | 4,352,428 | 3,924,781 | ||||||||||||||
Accrued expenses and other liabilities | 1,186,776 | 1,206,133 | 1,521,654 | 1,439,023 | 1,375,370 | ||||||||||||||
Total liabilities | 74,423,734 | 74,329,246 | 76,537,648 | 79,026,160 | 79,497,612 | ||||||||||||||
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 | 14,982,125 | 14,985,673 | 15,020,937 | 15,022,974 | 15,152,077 | ||||||||||||||
Retained deficit | (2,207,060 | ) | (2,327,440 | ) | (2,416,402 | ) | (2,536,230 | ) | (2,658,214 | ) | |||||||||
Accumulated other comprehensive loss | (150,781 | ) | (168,252 | ) | (46,644 | ) | (20,500 | ) | (31,945 | ) | |||||||||
Total BBVA Compass Bancshares, Inc. shareholder’s equity | 12,855,989 | 12,721,686 | 12,789,596 | 12,697,949 | 12,693,623 | ||||||||||||||
Noncontrolling interests | 29,510 | 29,021 | 29,594 | 29,047 | 29,554 | ||||||||||||||
Total shareholder’s equity | 12,885,499 | 12,750,707 | 12,819,190 | 12,726,996 | 12,723,177 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 87,309,233 | $ | 87,079,953 | $ | 89,356,838 | $ | 91,753,156 | $ | 92,220,789 | |||||||||
[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 STATEMENTS (Unaudited) (In Thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 [a] | |||||||||||||||
Interest income: | |||||||||||||||||||
Interest and fees on loans | $ | 574,712 | $ | 558,680 | $ | 557,996 | $ | 559,170 | $ | 561,083 | |||||||||
Interest on investment securities available for sale | 54,878 | 60,868 | 48,382 | 36,442 | 46,197 | ||||||||||||||
Interest on investment securities held to maturity | 6,639 | 6,664 | 6,675 | 6,759 | 6,795 | ||||||||||||||
Interest on federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 9,262 | 7,664 | 4,563 | 4,346 | 4,366 | ||||||||||||||
Interest on trading account assets | 10,297 | 13,150 | 12,926 | 13,412 | 14,321 | ||||||||||||||
Total interest income | 655,788 | 647,026 | 630,542 | 620,129 | 632,762 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Interest on deposits | 70,304 | 73,846 | 76,031 | 76,933 | 77,815 | ||||||||||||||
Interest on FHLB and other borrowings | 19,068 | 23,825 | 21,315 | 19,592 | 18,012 | ||||||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 4,897 | 4,640 | 4,934 | 5,434 | 6,157 | ||||||||||||||
Interest on other short-term borrowings | 10,086 | 12,963 | 13,453 | 13,932 | 13,896 | ||||||||||||||
Total interest expense | 104,355 | 115,274 | 115,733 | 115,891 | 115,880 | ||||||||||||||
Net interest income | 551,433 | 531,752 | 514,809 | 504,238 | 516,882 | ||||||||||||||
Provision for loan losses | 80,139 | 37,564 | 65,107 | 86,673 | 113,245 | ||||||||||||||
Net interest income after provision for loan losses | 471,294 | 494,188 | 449,702 | 417,565 | 403,637 | ||||||||||||||
Noninterest income: | |||||||||||||||||||
Service charges on deposit accounts | 55,168 | 55,901 | 55,047 | 51,921 | 51,425 | ||||||||||||||
Card and merchant processing fees | 29,992 | 31,161 | 31,256 | 31,509 | 29,742 | ||||||||||||||
Retail investment sales | 27,471 | 23,293 | 30,137 | 26,985 | 22,567 | ||||||||||||||
Investment banking and advisory fees | 28,301 | 20,792 | 34,385 | 28,335 | 23,604 | ||||||||||||||
Money transfer income | 25,197 | 28,632 | 25,058 | 26,477 | 24,425 | ||||||||||||||
Asset management fees | 9,771 | 8,906 | 8,778 | 8,386 | 8,805 | ||||||||||||||
Corporate and correspondent investment sales | 8,915 | 3,199 | 6,974 | 10,103 | 4,413 | ||||||||||||||
Mortgage banking | 2,870 | 16,086 | 8,242 | 602 | (3,434 | ) | |||||||||||||
Bank owned life insurance | 4,169 | 4,202 | 4,170 | 4,455 | 4,416 | ||||||||||||||
Investment securities gains, net | — | — | — | 21,684 | 8,353 | ||||||||||||||
Loss on prepayment of FHLB and other borrowings | — | (295 | ) | — | — | — | |||||||||||||
Other | 52,833 | 68,881 | 59,718 | 67,789 | 78,889 | ||||||||||||||
Total noninterest income | 244,687 | 260,758 | 263,765 | 278,246 | 253,205 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||
Salaries, benefits and commissions | 268,015 | 283,609 | 279,132 | 277,166 | 279,769 | ||||||||||||||
Professional services | 57,807 | 63,810 | 63,628 | 58,401 | 56,367 | ||||||||||||||
Equipment | 61,630 | 62,627 | 59,697 | 59,508 | 60,441 | ||||||||||||||
Net occupancy | 42,101 | 40,116 | 41,610 | 39,999 | 39,272 | ||||||||||||||
Money transfer expense | 16,324 | 17,426 | 16,680 | 17,768 | 15,600 | ||||||||||||||
Marketing | 13,545 | 13,018 | 13,316 | 11,506 | 12,709 | ||||||||||||||
Communications | 5,219 | 5,406 | 5,002 | 5,463 | 5,175 | ||||||||||||||
Amortization of intangibles | 2,525 | 4,093 | 4,093 | 4,094 | 4,093 | ||||||||||||||
Goodwill impairment | — | 59,901 | — | — | — | ||||||||||||||
Other | 82,146 | 64,064 | 73,113 | 67,132 | 118,718 | ||||||||||||||
Total noninterest expense | 549,312 | 614,070 | 556,271 | 541,037 | 592,144 | ||||||||||||||
Net income before income tax expense | 166,669 | 140,876 | 157,196 | 154,774 | 64,698 | ||||||||||||||
Income tax expense | 45,846 | 51,473 | 36,845 | 32,272 | 25,431 | ||||||||||||||
Net income | 120,823 | 89,403 | 120,351 | 122,502 | 39,267 | ||||||||||||||
Less: net income attributable to noncontrolling interests | 443 | 441 | 523 | 518 | 528 | ||||||||||||||
Net income attributable to BBVA Compass Bancshares, Inc. | $ | 120,380 | $ | 88,962 | $ | 119,828 | $ | 121,984 | $ | 38,739 | |||||||||
[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. |