Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s operating segments are based on the Company’s organizational structure. Each segment reflects the manner in which financial information is evaluated by management. The operating segment results include certain overhead allocations and intercompany transactions. All intercompany transactions have been eliminated to determine the consolidated balances. The Company operates primarily in the United States, and, accordingly, revenue and assets outside the United States are not material. There are no individual customers whose attributable revenues exceed 10% of consolidated revenue.

The following tables present the segment information for the Company’s existing segments.

	Three Months Ended September 30, 2020
	Commercial Banking and Wealth		Retail Banking		Corporate and Investment Banking		Treasury			Corporate Support and Other			Consolidated
	(In Thousands)
Net interest income	$	243,434	$	247,457	$	29,515	$	64,107		$	57,337		$	641,850
Allocated provision (credit) for credit losses	53,546		12,515		7,157		(1,468		)	79,227			150,977
Noninterest income	59,271		118,358		52,060		3,620			51,351			284,660
Noninterest expense	159,822		309,173		38,342		4,594			83,697			595,628
Net income (loss) before income tax expense (benefit)	89,337		44,127		36,076		64,601			(54,236		)	179,905
Income tax (benefit) expense	18,761		9,267		7,576		13,566			(35,506		)	13,664
Net income (loss)	70,576		34,860		28,500		51,035			(18,730		)	166,241
Less: net income (loss) attributable to noncontrolling interests	40		—		—		391			(30		)	401
Net income (loss) attributable to BBVA USA Bancshares, Inc.	$	70,536	$	34,860	$	28,500	$	50,644		$	(18,700	)	$	165,840
Average assets	$	44,218,296	$	18,338,000	$	8,102,696	$	28,065,244		$	5,558,662		$	104,282,898

	Three Months Ended September 30, 2019
	Commercial Banking and Wealth		Retail Banking		Corporate and Investment Banking		Treasury			Corporate Support and Other		Consolidated
	(In Thousands)
Net interest income (expense)	$	267,905	$	299,535	$	24,800	$	(40,478	)	$	89,279	$	641,041
Allocated provision for loan losses	33,653		69,888		13,955		491			22,642		140,629
Noninterest income	62,620		126,270		47,356		24,882			60,191		321,319
Noninterest expense	160,024		308,468		39,311		5,009			86,075		598,887
Net income (loss) before income tax expense (benefit)	136,848		47,449		18,890		(21,096		)	40,753		222,844
Income tax expense (benefit)	28,738		9,964		3,967		(4,430		)	1,660		39,899
Net income (loss)	108,110		37,485		14,923		(16,666		)	39,093		182,945
Less: net income attributable to noncontrolling interests	87		—		—		400			27		514
Net income (loss) attributable to BBVA USA Bancshares, Inc.	$	108,023	$	37,485	$	14,923	$	(17,066	)	$	39,066	$	182,431
Average assets	$	39,960,074	$	18,829,121	$	7,855,727	$	19,898,446		$	8,399,088	$	94,942,456

	Nine Months Ended September 30, 2020
	Commercial Banking and Wealth		Retail Banking			Corporate and Investment Banking			Treasury		Corporate Support and Other			Consolidated
	(In Thousands)
Net interest income	$	734,156	$	773,017		$	85,706		$	68,091	$	182,352		$	1,843,322
Allocated provision for credit losses	266,479		257,599			114,585			253		408,511			1,047,427
Noninterest income	186,942		363,309			162,372			36,012		142,621			891,256
Noninterest expense	509,251		910,861			140,173			14,294		2,409,559			3,984,138
Net income (loss) before income tax expense (benefit)	145,368		(32,134		)	(6,680		)	89,556		(2,493,097		)	(2,296,987		)
Income tax expense (benefit)	30,527		(6,748		)	(1,403		)	18,807		(142,689		)	(101,506		)
Net income (loss)	114,841		(25,386		)	(5,277		)	70,749		(2,350,408		)	(2,195,481		)
Less: net income attributable to noncontrolling interests	101		—			—			1,181		92			1,374
Net income (loss) attributable to BBVA USA Bancshares, Inc.	$	114,740	$	(25,386	)	$	(5,277	)	$	69,568	$	(2,350,500	)	$	(2,196,855	)
Average assets	$	43,462,414	$	18,540,427		$	8,366,581		$	24,299,743	$	6,389,605		$	101,058,770

	Nine Months Ended September 30, 2019
	Commercial Banking and Wealth		Retail Banking		Corporate and Investment Banking		Treasury			Corporate Support and Other			Consolidated
	(In Thousands)
Net interest income (expense)	$	875,894	$	975,209	$	91,048	$	(79,284	)	$	121,012		$	1,983,879
Allocated provision (credit) for loan losses	169,770		229,564		39,210		(147		)	39,542			477,939
Noninterest income	183,142		360,094		123,584		40,027			156,513			863,360
Noninterest expense	486,138		912,804		118,373		15,013			246,846			1,779,174
Net income (loss) before income tax expense (benefit)	403,128		192,935		57,049		(54,123		)	(8,863		)	590,126
Income tax expense (benefit)	84,657		40,516		11,980		(11,366		)	(19,773		)	106,014
Net income (loss)	318,471		152,419		45,069		(42,757		)	10,910			484,112
Less: net income attributable to noncontrolling interests	349		—		—		1,207			113			1,669
Net income (loss) attributable to BBVA USA Bancshares, Inc.	$	318,122	$	152,419	$	45,069	$	(43,964	)	$	10,797		$	482,443
Average assets	$	40,099,702	$	18,875,648	$	7,770,444	$	18,713,337		$	8,341,760		$	93,800,891

The financial information presented was derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting policies that have been developed to reflect the underlying economics of the businesses. These policies address the methodologies applied and include policies related to funds transfer pricing, cost allocations and capital allocations.

Funds transfer pricing was used in the determination of net interest income earned primarily on loans and deposits. The method employed for funds transfer pricing is a matched funding concept whereby lines of business which are fund providers are credited and those that are fund users are charged based on maturity, prepayment and/or repricing characteristics applied on an instrument level. Provision for loan losses is allocated to each segment based on internal management accounting policies for the allowance for loan losses and the related provision which differs from the policies for consolidated purposes. The difference between the consolidated provision for credit losses and the segments' provision for credit losses is reflected in Corporate Support and Other and reflects a current year revision in policy. Costs for centrally managed operations are generally allocated to the lines of business based on the utilization of services provided or other appropriate indicators. Revenue is recorded in the business segment responsible for the related product or service. Fee sharing is recorded to allocate portions of such revenue to other business segments involved in selling to, or providing services to, customers. Results of operations for the business segments reflect these fee sharing allocations. Capital is allocated to the lines of business based upon the underlying risks in each business considering economic and regulatory capital standards.

The development and application of these methodologies is a dynamic process. Accordingly, prior period financial results have been revised to reflect management accounting enhancements and changes in the Company's organizational structure. The 2019 segment information has been revised to conform to the 2020 presentation. In addition, unlike financial accounting, there is no authoritative literature for management accounting similar to U.S. GAAP. Consequently, reported results are not necessarily comparable with those presented by other financial institutions.