Exhibit 99.1
July 27, 2018
BBVA Compass reports second quarter results
| |
| • | Quarterly net income totals $184 million |
| |
| ◦ | Net income up 17 percent from a year ago and 41 percent on a year-to-date basis |
| |
| ◦ | Return on average assets and return on average tangible equity1 for the quarter were 0.83 percent and 9.05 percent, respectively |
| |
| • | Total revenue reaches record level; up 10 percent from prior year levels and 15 percent (annualized) from 1Q18 levels |
| |
| ◦ | Net interest income increases 10 percent compared to a year ago and 13 percent (annualized) on a linked quarter basis |
| |
| ◦ | Noninterest income increases 10 percent from year ago levels and 19 percent (annualized) on a linked quarter basis |
| |
| • | Noninterest expense growth well contained at 1 percent; up 2 percent on a year-to-date basis |
| |
| • | Positive operating leverage results in record quarterly operating income1 of $334 million, an increase of 29 percent from the second quarter of 2017 |
| |
| • | Solid deposit generation fully supports increased activity in loan portfolio |
| |
| ◦ | Total loans rise to $63.3 billion, up 6 percent year-over year |
| |
| ◦ | Newly funded customer loans of $10.1 billion in the first half of 2018, up 35 percent from prior year |
| |
| ◦ | Total deposits of $70.1 billion, up 7 percent from a year ago levels |
| |
| • | Credit quality measures stable during the quarter |
| |
| ◦ | Nonperforming loan ratio at 1.11 percent and net charge-off ratio at 40 basis points |
| |
| ◦ | Allowance to loan ratio at 1.36 percent and NPL coverage ratio at 122 percent |
| |
| • | Results of CCAR and DFAST provide further evidence of strong capital position |
| |
| ◦ | Common Equity Tier 1 (CET1) ratio (phased-in)2 at 11.97 percent |
| |
| ◦ | Regulatory capital ratios2 significantly above “well capitalized” guidelines |
BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $184 million for the second quarter of 2018, a 17 percent increase from the $157 million earned during the second quarter of 2017. Return on average assets and return on average tangible equity1 for the second quarter of 2018 were 0.83 percent and 9.05 percent, respectively.
Net income for the first six months of 2018 totaled $393 million, an increase of 41 percent from the $278 million earned during the first six months of 2017. Return on average assets and return on average tangible equity1 for the first six months of 2018 were 0.90 percent and 9.77 percent, respectively.
“Capitalizing on the positive momentum we have built throughout our organization enabled us to deliver another strong quarter and achieve a new quarterly record in operating income,” said Onur Genç, president and CEO of BBVA Compass. “Revenue growth was strong and balanced as both net interest income and noninterest income posted double-digit gains. Newly funded loans in the quarter totaled more than $5.7 billion and on a year-to-date basis reached $10.1 billion, up 35 percent compared to a year ago. Our focus on being at the forefront of the digital transformation also continued with the recent launch of two new treasury management products - BBVA Compass RealTime ARP™ and BBVA Compass RealTime Positive Pay™ - that represent the first of their kind operating in real-time. Using technology to improve efficiency and provide customers with amazing experiences drives our innovative spirit.”
Total revenue for the quarter was $914 million, an increase of 10 percent from the second quarter of 2017 and 15 percent on an annualized basis from first quarter 2018 levels. Net interest income totaled $643 million, an increase of $58 million or 10 percent from the second quarter of 2017, and an annualized increase of 13 percent from first quarter 2018 levels. The percent net interest margin in the second quarter of 2018 was 3.30 percent, an increase of 19 basis points from a year ago and 3 basis points from the first quarter of 2018.
Noninterest income for the quarter totaled $270 million, an increase of 10 percent compared to the $246 million recorded in the second quarter of 2017. Growth was well diversified and many of our major fee-based businesses surpassed overall growth, led by card and merchant processing fees (+36 percent) and corporate and correspondent investment sales (+34 percent). The performance in investment banking and advisory fees (+23 percent), mortgage banking (+140 percent) and service charges on deposit accounts (+7 percent) was also noteworthy during the quarter. Maintaining strong expense controls also continued in the quarter with noninterest expenses rising 1 percent year-over-year and 2 percent on a year-to-date basis.
“With respect to balance sheet activity, loan growth accelerated in the quarter and, importantly, was fully supported by solid deposit generation,” noted Genç.
Total loans at the end of the second quarter of 2018 were $63.3 billion, an increase of 6 percent from $60.0 billion at the end of the second quarter of 2017. Commercial growth was paced by C&I lending (+8 percent) while consumer loan growth accelerated, driven by increased activity in direct consumer lending (+48 percent) and credit cards (+22 percent). Total deposits at the end of the second quarter of 2018 were $70.1 billion, a 7 percent increase from the $65.6 billion at the end of the second quarter of 2017. The loan to deposit ratio ended the quarter at 90 percent, down slightly from 91 percent a year ago.
Credit quality metrics were stable during the quarter. Nonperforming loans as a percentage of total loans were 1.11 percent, unchanged from first quarter 2018 levels and down 5 basis points from year-end 2017 levels. Net charge-offs as a percentage of average loans totaled 40 basis points in the quarter, down from 44 basis points in the first quarter of 2018 and 42 basis points in the second quarter of 2017. The allowance for loan losses as a percentage of total loans ended the quarter at 1.36 percent while the coverage ratio of nonperforming loans rose to 122 percent.
Total shareholder's equity at the end of the second quarter totaled $13.2 billion, a 2 percent increase from $13.0 billion at the end of the second quarter of 2017. The CET1 ratio rose to 11.97 percent2 at the end of the second quarter of 2018, up 17 basis points from the end of the fourth quarter of 2017. Importantly, all of BBVA Compass’ regulatory capital ratios2 significantly exceed the requirements under “well-capitalized” guidelines.
"BBVA Compass has been part of the Comprehensive Capital Analysis and Review for five years, and in each, our capital plan has received no-objection from the Federal Reserve," Genç said. "Our record in this area clearly signals the importance we place on maintaining a strong capital position to enable us to expand our client base, increase business activity with our customers, support the communities that we serve and continue on our transformation journey to meet the challenges and opportunities of 21st century
banking.”
Income tax expense for the quarter totaled $58 million resulting in an effective tax rate of 24.0 percent compared to $57 million in the second quarter of 2017 resulting in an effective tax rate of 26.6 percent. Included in the current quarter is $11 million of additional income tax expense related to the correction of an error in prior period (primarily 2017) that resulted from an incorrect calculation of the proportional amortization of the company’s Low Income Housing Tax Credit investments. The company has evaluated the effect of this correction and concluded that no prior annual period is materially misstated nor is it material to interim or expected full year 2018 results.
During the second quarter, BBVA Compass announced the closing of a $1.15 billion senior notes offering by its wholly-owned subsidiary Compass Bank. The offering was completed in two tranches including: $450 million in aggregate principal amount of floating rate unsecured senior notes due 2021 (Floating Rates Notes), and $700 million in aggregate principal amount of 3.50 percent unsecured senior notes due 2021 (Fixed Rate Notes). The Floating Rate Notes were sold at a price of 100 percent of par and the Fixed Rate Notes were sold at a price of 99.704 percent of par. Additional information pertaining to our fixed income debt issuances can be found on the Investor Relations portion of our website at bbva.investorroom.com.
________________________
1 Return on average tangible equity and operating income are non-GAAP financial measures that 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 June 30, 2018, are estimated.
|
| | |
| Contact details: | | |
| Christina Anderson | | Ed Bilek |
| External Communications | | Investor Relations |
| Tel. 205.524.5214 | | Tel. 205.297.3331 |
| christina.anderson@bbva.com | | ed.bilek@bbva.com |
About BBVA Compass
BBVA Compass is a Sunbelt-based financial institution that operates 645 branches, including 332 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 37 in Colorado and 18 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 (6th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 6th nationally in the total number of SBA loans originated in fiscal year 2017. 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 (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States; and it is also the leading shareholder in Garanti, Turkey’s biggest bank for market capitalization. Its diversified business is focused on high-growth markets and it 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. More information about BBVA Group can be found at bbva.com.
On April 5, 2018, BBVA filed its annual report on Form 20-F for the year ended December 31, 2017, 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, 2017, including complete audited financial statements, free of charge. To request a copy, contact Ed Bilek at ed.bilek@bbva.com.
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 February 28, 2018, 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, |
| % |
|
| 2018 |
| 2017 |
| Change |
| 2018 |
| 2017 |
| Change |
| EARNINGS SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
| $ | 643,499 |
|
| $ | 585,828 |
|
| 10 |
|
| $ | 1,266,104 |
|
| $ | 1,137,261 |
|
| 11 |
|
| Noninterest income |
| 270,019 |
|
| 246,325 |
|
| 10 |
|
| 527,844 |
|
| 491,012 |
|
| 8 |
|
| Total revenue |
| 913,518 |
|
| 832,153 |
|
| 10 |
|
| 1,793,948 |
|
| 1,628,273 |
|
| 10 |
|
| Provision for loan losses |
| 91,280 |
|
| 45,285 |
|
| 102 |
|
| 148,309 |
|
| 125,424 |
|
| 18 |
|
| Noninterest expense |
| 579,545 |
|
| 572,485 |
|
| 1 |
|
| 1,142,458 |
|
| 1,121,797 |
|
| 2 |
|
| Pretax income |
| 242,693 |
|
| 214,383 |
|
| 13 |
|
| 503,181 |
|
| 381,052 |
|
| 32 |
|
| Income tax expense |
| 58,295 |
|
| 56,943 |
|
| 2 |
|
| 110,093 |
|
| 102,789 |
|
| 7 |
|
| Net income |
| 184,398 |
|
| 157,440 |
|
| 17 |
|
| 393,088 |
|
| 278,263 |
|
| 41 |
|
| Net income attributable to noncontrolling interests |
| 595 |
| | 431 |
|
| 38 |
|
| 1,056 |
| | 874 |
|
| 21 |
|
| Net income attributable to BBVA Compass Bancshares, Inc. |
| $ | 183,803 |
| | $ | 157,009 |
|
| 17 |
|
| $ | 392,032 |
|
| $ | 277,389 |
|
| 41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SELECTED RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
| 0.83 | % |
| 0.72 | % |
|
|
|
| 0.90 | % |
| 0.64 | % |
|
|
|
| Return on average tangible equity [a] |
| 9.05 |
|
| 7.93 |
|
|
|
|
| 9.77 |
|
| 7.12 |
|
|
|
|
| Average common equity to average assets |
| 14.56 |
|
| 14.57 |
|
|
|
|
| 14.59 |
|
| 14.47 |
|
|
|
|
| Average loans to average total deposits |
| 90.62 |
|
| 91.16 |
|
|
|
|
| 90.12 |
|
| 90.45 |
|
|
|
|
| Common equity tier I capital (CET1) [b] | | 11.97 |
|
| 11.90 |
| | | | 11.97 |
| | 11.90 |
| | |
| Tier I capital ratio [b] |
| 12.31 |
|
| 12.25 |
|
|
|
|
| 12.31 |
|
| 12.25 |
|
|
|
|
| Total capital ratio [b] |
| 14.49 |
|
| 14.62 |
|
|
|
|
| 14.49 |
|
| 14.62 |
|
|
|
|
| Leverage ratio [b] |
| 10.05 |
|
| 9.82 |
|
|
|
|
| 10.05 |
|
| 9.82 |
|
|
|
|
| [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. |
| [b] Current period regulatory capital ratios are estimated. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Average for Three Months |
|
|
| Average for Six Months |
|
|
| Ending Balance |
|
|
|
| Ended June 30, |
| % |
| Ended June 30, |
| % |
| June 30, |
| % |
|
| 2018 |
| 2017 |
| Change |
| 2018 |
| 2017 |
| Change |
| 2018 |
| 2017 |
| Change |
| BALANCE SHEET HIGHLIGHTS |
| | | | | | | | | | | | | |
| Total loans |
| $ | 63,202,826 |
|
| $ | 59,902,725 |
|
| 6 |
|
| $ | 62,704,406 |
|
| $ | 60,113,615 |
|
| 4 |
|
| $ | 63,343,018 |
|
| $ | 59,955,718 |
|
| 6 |
|
| Total debt securities |
| 13,332,825 |
|
| 12,653,300 |
|
| 5 |
|
| 13,263,113 |
|
| 12,555,619 |
|
| 6 |
|
| 13,491,910 |
|
| 12,810,079 |
|
| 5 |
|
| Earning assets |
| 79,538,657 |
|
| 78,182,674 |
|
| 2 |
|
| 79,078,356 |
|
| 78,223,352 |
|
| 1 |
|
| 79,922,849 |
|
| 78,063,676 |
|
| 2 |
|
| Total assets |
| 89,032,051 |
|
| 87,474,348 |
|
| 2 |
|
| 88,404,964 |
|
| 87,575,056 |
|
| 1 |
|
| 88,754,662 |
|
| 87,003,919 |
|
| 2 |
|
| Noninterest bearing demand deposits |
| 21,281,715 |
|
| 21,110,531 |
|
| 1 |
|
| 21,430,981 |
|
| 20,845,583 |
|
| 3 |
|
| 21,433,218 |
|
| 21,000,630 |
|
| 2 |
|
| Interest bearing transaction accounts |
| 33,808,453 |
|
| 32,566,221 |
|
| 4 |
|
| 33,765,439 |
|
| 32,985,683 |
|
| 2 |
|
| 34,350,824 |
|
| 32,472,406 |
|
| 6 |
|
| Total transaction accounts |
| 55,090,168 |
|
| 53,676,752 |
|
| 3 |
|
| 55,196,420 |
|
| 53,831,266 |
|
| 3 |
|
| 55,784,042 |
|
| 53,473,036 |
|
| 4 |
|
| Total deposits |
| 69,744,181 |
|
| 65,711,133 |
|
| 6 |
|
| 69,579,904 |
|
| 66,459,835 |
|
| 5 |
|
| 70,147,708 |
|
| 65,617,380 |
|
| 7 |
|
| Total shareholder's equity |
| 13,217,831 |
|
| 13,004,717 |
|
| 2 |
|
| 13,154,476 |
|
| 12,929,108 |
|
| 2 |
|
| 13,190,644 |
|
| 12,989,630 |
|
| 2 |
|
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) |
| | | | | | | | | | | | | | | | | | | | |
|
| 2018 | | 2017 |
|
| June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| NONPERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
| Nonaccrual loans [a] |
| $ | 662,991 |
|
| $ | 647,210 |
|
| $ | 658,865 |
|
| $ | 666,812 |
|
| $ | 760,313 |
|
| Loans 90 days or more past due [b] |
| 39,143 |
|
| 45,904 |
|
| 58,378 |
|
| 43,049 |
|
| 59,434 |
|
| TDRs 90 days or more past due |
| 491 |
|
| 700 |
|
| 751 |
|
| 963 |
|
| 969 |
|
| Total nonperforming loans [a] |
| 702,625 |
|
| 693,814 |
|
| 717,994 |
|
| 710,824 |
|
| 820,716 |
|
| Other real estate owned, net (OREO) |
| 16,499 |
|
| 16,147 |
|
| 17,278 |
|
| 22,012 |
|
| 22,965 |
|
| Other repossessed assets |
| 13,117 |
|
| 11,278 |
|
| 13,473 |
|
| 11,443 |
|
| 12,298 |
|
| Total nonperforming assets |
| $ | 732,241 |
|
| $ | 721,239 |
|
| $ | 748,745 |
|
| $ | 744,279 |
|
| $ | 855,979 |
|
|
|
|
|
|
|
|
|
|
|
|
| TDRs accruing and past due less than 90 days |
| $ | 99,251 |
|
| $ | 101,285 |
|
| $ | 100,492 |
|
| $ | 95,521 |
|
| $ | 97,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total nonperforming loans as a % of loans |
| 1.11 | % |
| 1.11 | % |
| 1.16 | % |
| 1.18 | % |
| 1.37 | % |
| Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets |
| 1.16 |
|
| 1.16 |
|
| 1.21 |
|
| 1.23 |
|
| 1.43 |
|
| [a] Includes loans held for sale. |
| [b] Excludes loans classified as troubled debt restructuring (TDRs). |
|
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | 2018 | | 2017 |
| | June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| ALLOWANCE FOR LOAN LOSSES | | | | | | | | | | |
| Balance at beginning of period | | $ | 832,071 |
|
| $ | 842,760 |
|
| $ | 849,119 |
|
| $ | 816,952 |
|
| $ | 834,106 |
|
| Net charge-offs (NCO) | | 63,351 |
|
| 67,718 |
|
| 65,194 |
|
| 71,267 |
|
| 62,439 |
|
| Provision for loan losses | | 91,280 |
|
| 57,029 |
|
| 58,835 |
|
| 103,434 |
|
| 45,285 |
|
| Balance at end of period | | $ | 860,000 |
|
| $ | 832,071 |
|
| $ | 842,760 |
|
| $ | 849,119 |
|
| $ | 816,952 |
|
| | | | | | | | | | |
| Allowance for loan losses as a % of total loans | | 1.36 | % |
| 1.34 | % |
| 1.37 | % |
| 1.41 | % |
| 1.36 | % |
| Allowance for loan losses as a % of nonperforming loans [c] | | 122.40 |
|
| 119.93 |
|
| 117.38 |
|
| 119.46 |
|
| 99.54 |
|
| Allowance for loan losses as a % of nonperforming assets [c] | | 117.45 |
|
| 115.37 |
|
| 112.56 |
|
| 114.09 |
|
| 95.44 |
|
| | |
|
|
|
|
|
|
|
|
|
| Annualized as a % of average loans: | |
|
|
|
|
|
|
|
|
|
| NCO - QTD | | 0.40 |
|
| 0.44 |
|
| 0.42 |
|
| 0.47 |
|
| 0.42 |
|
| NCO - YTD | | 0.42 |
|
| 0.44 |
|
| 0.47 |
|
| 0.48 |
|
| 0.49 |
|
| [c] Includes loans held for sale that are on nonaccrual status. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) |
| | | | | | | | | | | | | | | | | | | | | | |
|
| Three Months Ended June 30, |
|
| 2018 |
| 2017 |
|
| Average Balance |
| Income/ Expense |
| Yield/ Rate |
| Average Balance |
| Income/ Expense |
| Yield/ Rate |
| YIELD/RATE ANALYSIS |
|
|
|
|
|
|
|
|
|
|
|
|
| (Taxable Equivalent Basis) |
|
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Loans |
| $ | 63,202,826 |
|
| $ | 722,346 |
|
| 4.58 | % |
| $ | 59,902,725 |
|
| $ | 625,366 |
|
| 4.19 | % |
| Debt securities available for sale [a] |
| 11,535,569 |
|
| 53,792 |
|
| 1.87 |
|
| 11,608,533 |
|
| 53,181 |
|
| 1.84 |
|
| Debt securities held to maturity |
| 2,088,717 |
|
| 14,521 |
|
| 2.79 |
|
| 1,134,494 |
|
| 9,961 |
|
| 3.52 |
|
| Other earning assets [b] |
| 3,003,006 |
|
| 15,840 |
|
| 2.12 |
|
| 5,626,649 |
|
| 24,287 |
|
| 1.73 |
|
| Total earning assets [a] |
| 79,830,118 |
|
| 806,499 |
|
| 4.05 |
|
| 78,272,401 |
|
| 712,795 |
|
| 3.65 |
|
| Allowance for loan losses |
| (840,557 | ) |
|
|
|
|
| (836,477 | ) |
|
|
|
|
| Unrealized loss on debt securities available for sale |
| (291,461 | ) |
|
|
|
|
| (89,727 | ) |
|
|
|
|
| Other assets |
| 10,333,951 |
|
|
|
|
|
| 10,128,151 |
|
|
|
|
|
| Total assets |
| $ | 89,032,051 |
|
|
|
|
|
| $ | 87,474,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholder's Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing demand deposits |
| $ | 7,944,965 |
|
| $ | 11,025 |
|
| 0.56 |
|
| $ | 7,849,285 |
|
| $ | 6,261 |
|
| 0.32 |
|
| Savings and money market accounts |
| 25,863,488 |
|
| 48,793 |
|
| 0.76 |
|
| 24,716,936 |
|
| 22,380 |
|
| 0.36 |
|
| Certificates and other time deposits |
| 14,654,013 |
|
| 56,505 |
|
| 1.55 |
|
| 12,034,381 |
|
| 37,273 |
|
| 1.24 |
|
| Total interest bearing deposits |
| 48,462,466 |
|
| 116,323 |
|
| 0.96 |
|
| 44,600,602 |
|
| 65,914 |
|
| 0.59 |
|
| FHLB and other borrowings |
| 3,974,769 |
|
| 31,912 |
|
| 3.22 |
|
| 4,104,668 |
|
| 22,450 |
|
| 2.19 |
|
| Federal funds purchased and securities sold under agreement to repurchase [b] |
| 103,974 |
|
| 1,399 |
|
| 5.40 |
|
| 99,039 |
|
| 6,942 |
|
| 28.11 |
|
| Other short-term borrowings |
| 78,402 |
|
| 567 |
|
| 2.90 |
|
| 2,638,671 |
|
| 10,506 |
|
| 1.60 |
|
| Total interest bearing liabilities |
| 52,619,611 |
|
| 150,201 |
|
| 1.14 |
|
| 51,442,980 |
|
| 105,812 |
|
| 0.83 |
|
| Noninterest bearing deposits |
| 21,281,715 |
|
|
|
|
|
|
| 21,110,531 |
|
|
|
|
|
| Other noninterest bearing liabilities |
| 1,912,894 |
|
|
|
|
|
|
| 1,916,120 |
|
|
|
|
|
| Total liabilities |
| 75,814,220 |
|
|
|
|
|
|
| 74,469,631 |
|
|
|
|
|
| Shareholder's equity |
| 13,217,831 |
|
|
|
|
|
|
| 13,004,717 |
|
|
|
|
|
| Total liabilities and shareholder's equity |
| $ | 89,032,051 |
|
|
|
|
|
|
| $ | 87,474,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income/ net interest spread |
|
|
| 656,298 |
|
| 2.91 | % |
|
|
| 606,983 |
|
| 2.82 | % |
| Net yield on earning assets |
|
|
|
|
| 3.30 | % |
|
|
|
|
| 3.11 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total taxable equivalent adjustment |
|
|
| 12,799 |
|
|
|
|
|
| 21,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
| $ | 643,499 |
|
|
|
|
|
| $ | 585,828 |
|
|
|
| [a] Excludes adjustment for market valuation. |
| [b] Yield/rate reflects impact of balance sheet offsetting. |
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, |
| | | 2018 | | 2017 |
| | | Average Balance | | Income/ Expense | | Yield/ Rate | | Average Balance | | Income/ Expense | | Yield/ Rate |
| YIELD/RATE ANALYSIS | | | | | | | | | | | | |
| (Taxable Equivalent Basis) | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | |
| Earning assets: | | | | | | | | | | | | |
| Loans | | $ | 62,704,406 |
| | $ | 1,397,176 |
| | 4.49 | % | | $ | 60,113,615 |
| | $ | 1,217,070 |
| | 4.08 | % |
| Debt securities available for sale [a] | | 11,480,294 |
| | 110,397 |
| | 1.94 |
| | 11,519,788 |
| | 105,232 |
| | 1.84 |
|
| Debt securities held to maturity | | 2,042,818 |
| | 28,423 |
| | 2.81 |
| | 1,151,552 |
| | 19,532 |
| | 3.42 |
|
| Other earning assets [b] | | 3,110,837 |
| | 28,466 |
| | 1.85 |
| | 5,554,118 |
| | 46,728 |
| | 1.70 |
|
| Total earning assets [a] | | 79,338,355 |
| | 1,564,462 |
| | 3.98 |
| | 78,339,073 |
| | 1,388,562 |
| | 3.57 |
|
| Allowance for loan losses | | (842,392 | ) | | | | | | (843,381 | ) | | | | |
| Unrealized loss on debt securities available for sale | | (259,999 | ) | | | | | | (115,721 | ) | | | | |
| Other assets | | 10,169,000 |
| | | | | | 10,195,085 |
| | | | |
| Total assets | | $ | 88,404,964 |
| | | | | | $ | 87,575,056 |
| | | | |
| | | | | | | | | | | | | |
| Liabilities and Shareholder's Equity | | | | | | | | | | | | |
| Interest bearing liabilities: | | | | | | | | | | | | |
| Interest bearing demand deposits | | $ | 8,069,593 |
| | $ | 20,606 |
| | 0.51 |
| | $ | 8,019,136 |
| | $ | 12,392 |
| | 0.31 |
|
| Savings and money market accounts | | 25,695,846 |
| | 87,683 |
| | 0.69 |
| | 24,966,547 |
| | 44,681 |
| | 0.36 |
|
| Certificates and other time deposits | | 14,383,484 |
| | 105,381 |
| | 1.48 |
| | 12,628,569 |
| | 79,145 |
| | 1.26 |
|
| Total interest bearing deposits | | 48,148,923 |
| | 213,670 |
| | 0.89 |
| | 45,614,252 |
| | 136,218 |
| | 0.60 |
|
| FHLB and other borrowings | | 3,644,363 |
| | 56,668 |
| | 3.14 |
| | 3,638,825 |
| | 41,518 |
| | 2.30 |
|
| Federal funds purchased and securities sold under agreement to repurchase [b] | | 63,330 |
| | 1,935 |
| | 6.16 |
| | 71,102 |
| | 11,839 |
| | 33.58 |
|
| Other short-term borrowings | | 65,088 |
| | 911 |
| | 2.82 |
| | 2,673,046 |
| | 20,592 |
| | 1.55 |
|
| Total interest bearing liabilities | | 51,921,704 |
| | 273,184 |
| | 1.06 |
| | 51,997,225 |
| | 210,167 |
| | 0.82 |
|
| Noninterest bearing deposits | | 21,430,981 |
| | | | | | 20,845,583 |
| | | | |
| Other noninterest bearing liabilities | | 1,897,803 |
| | | | | | 1,803,140 |
| | | | |
| Total liabilities | | 75,250,488 |
| | | | | | 74,645,948 |
| | | | |
| Shareholder's equity | | 13,154,476 |
| | | | | | 12,929,108 |
| | | | |
| Total liabilities and shareholder's equity | | $ | 88,404,964 |
| | | | | | $ | 87,575,056 |
| | | | |
| | | | | | | | | | | | | |
| Net interest income/ net interest spread | | | | 1,291,278 |
| | 2.92 | % | | | | 1,178,395 |
| | 2.75 | % |
| Net yield on earning assets | | | | | | 3.28 | % | | | | | | 3.03 | % |
| | | | | | | | | | | | | |
| Total taxable equivalent adjustment | | | | 25,174 |
| | | | | | 41,134 |
| | |
| | | | | | | | | | | | | |
| Net interest income | | | | $ | 1,266,104 |
| | | | | | $ | 1,137,261 |
| | |
| [a] Excludes adjustment for market valuation. |
| [b] Yield/rate reflects impact of balance sheet offsetting. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Six Months |
|
|
| Three Months Ended |
|
| Ended June 30, |
| % |
| 2018 | | 2017 |
|
| 2018 |
| 2017 |
| Change |
| June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
| $ | 114,742 |
|
| $ | 110,087 |
|
| 4 |
|
| $ | 58,581 |
|
| $ | 56,161 |
|
| $ | 56,070 |
|
| $ | 55,953 |
|
| $ | 54,919 |
|
| Card and merchant processing fees |
| 83,726 |
|
| 62,452 |
|
| 34 |
|
| 44,048 |
|
| 39,678 |
|
| 33,380 |
|
| 32,297 |
|
| 32,460 |
|
| Retail investment sales |
| 59,890 |
|
| 56,059 |
|
| 7 |
|
| 29,782 |
|
| 30,108 |
|
| 26,338 |
|
| 26,817 |
|
| 28,588 |
|
| Investment banking and advisory fees | | 48,442 |
| | 48,244 |
| | 0 |
| | 24,546 |
| | 23,896 |
| | 24,957 |
| | 30,500 |
| | 19,943 |
|
| Money transfer income | | 44,608 |
| | 52,527 |
| | (15 | ) | | 23,920 |
| | 20,688 |
| | 24,101 |
| | 24,881 |
| | 27,330 |
|
| Corporate and correspondent investment sales | | 28,411 |
| | 21,104 |
| | 35 |
| | 16,355 |
| | 12,056 |
|
| 11,803 |
|
| 5,145 |
|
| 12,189 |
|
| Asset management fees |
| 21,759 |
|
| 19,826 |
|
| 10 |
|
| 10,989 |
|
| 10,770 |
|
| 10,303 |
|
| 10,336 |
|
| 10,055 |
|
| Mortgage banking |
| 16,361 |
|
| 6,186 |
|
| 164 |
|
| 7,964 |
|
| 8,397 |
|
| 4,720 |
|
| 3,450 |
|
| 3,316 |
|
| Bank owned life insurance |
| 8,590 |
|
| 8,389 |
|
| 2 |
|
| 4,375 |
|
| 4,215 |
|
| 4,397 |
|
| 4,322 |
|
| 4,220 |
|
| Other |
| 101,315 |
|
| 106,138 |
|
| (5 | ) |
| 49,459 |
|
| 51,856 |
|
| 101,100 |
|
| 61,060 |
|
| 53,305 |
|
|
| 527,844 |
|
| 491,012 |
|
| 8 |
|
| 270,019 |
|
| 257,825 |
|
| 297,169 |
|
| 254,761 |
|
| 246,325 |
|
| Investment securities gains, net |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 3,033 |
|
| — |
|
| Total noninterest income |
| $ | 527,844 |
|
| $ | 491,012 |
|
| 8 |
|
| $ | 270,019 |
|
| $ | 257,825 |
|
| $ | 297,169 |
|
| $ | 257,794 |
|
| $ | 246,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries, benefits and commissions |
| $ | 576,292 |
|
| $ | 556,441 |
|
| 4 |
|
| $ | 286,852 |
|
| $ | 289,440 |
|
| $ | 296,146 |
|
| $ | 279,384 |
|
| $ | 288,426 |
|
| Equipment | | 127,020 |
| | 124,035 |
| | 2 |
| | 63,660 |
| | 63,360 |
|
| 63,200 |
|
| 60,656 |
|
| 62,405 |
|
| Professional services |
| 129,222 |
|
| 122,647 |
|
| 5 |
|
| 68,577 |
|
| 60,645 |
|
| 76,068 |
|
| 64,775 |
|
| 64,840 |
|
| Net occupancy |
| 83,093 |
|
| 83,341 |
|
| 0 |
|
| 42,671 |
|
| 40,422 |
|
| 41,125 |
|
| 42,227 |
|
| 41,240 |
|
| Money transfer expense | | 30,023 |
| | 34,131 |
| | (12 | ) | | 16,302 |
| | 13,721 |
| | 15,721 |
| | 15,938 |
| | 17,807 |
|
| Marketing |
| 20,601 |
|
| 29,274 |
|
| (30 | ) |
| 11,814 |
|
| 8,787 |
|
| 7,950 |
|
| 14,996 |
|
| 15,729 |
|
| Communications |
| 10,514 |
|
| 10,500 |
|
| — |
|
| 5,251 |
|
| 5,263 |
|
| 4,970 |
|
| 5,084 |
|
| 5,281 |
|
| Other |
| 165,693 |
|
| 161,428 |
|
| 3 |
|
| 84,418 |
|
| 81,275 |
|
| 110,648 |
|
| 90,902 |
|
| 76,757 |
|
| Total noninterest expense |
| $ | 1,142,458 |
|
| $ | 1,121,797 |
|
| 2 |
|
| $ | 579,545 |
|
| $ | 562,913 |
|
| $ | 615,828 |
|
| $ | 573,962 |
|
| $ | 572,485 |
|
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) |
| | | | | | | | | | | | | | | | |
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
|
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| NON-GAAP RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Computation of Operating Income: | | | | | | | | |
| Net interest income (GAAP) | | $ | 643,499 |
| | $ | 585,828 |
| | $ | 1,266,104 |
| | $ | 1,137,261 |
|
| Plus: noninterest income (GAAP) | | 270,019 |
| | 246,325 |
| | 527,844 |
| | 491,012 |
|
| Less: noninterest expense (GAAP) | | 579,545 |
| | 572,485 |
| | 1,142,458 |
| | 1,121,797 |
|
| Operating income (non-GAAP) | | $ | 333,973 |
| | $ | 259,668 |
| | $ | 651,490 |
| | $ | 506,476 |
|
| | | | | | | | | |
| | | | | | | | | |
| Computation of Average Tangible Equity: |
|
|
|
|
|
|
|
|
| Total stockholder's equity (average) (GAAP) |
| $ | 13,217,831 |
|
| $ | 13,004,717 |
|
| $ | 13,154,476 |
| | 12,929,108 |
|
| Less: Goodwill and other intangibles (average) (GAAP) |
| 5,040,777 |
|
| 5,045,470 |
|
| 5,040,016 |
|
| 5,047,470 |
|
| Average tangible equity (non-GAAP) [B] |
| $ | 8,177,054 |
|
| $ | 7,959,247 |
|
| $ | 8,114,460 |
|
| 7,881,638 |
|
| Net income (GAAP) [A] | | $ | 184,398 |
| | $ | 157,440 |
| | $ | 393,088 |
| | $ | 278,263 |
|
| Return on average tangible equity (non-GAAP) ([A]/[B], annualized) | | 9.05 | % | | 7.93 | % | | 9.77 | % |
| 7.12 | % |
| | | | | | | | | |
BBVA COMPASS BANCSHARES, INC SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) (In Thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | At or Quarter Ended June 30, 2018 |
| | 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 | $ | 55,116 |
| | $ | 12,405 |
| | $ | 3,597 |
| | $ | 323,287 |
| | $ | 5,722 |
| | $ | 26,248,260 |
| | $ | 26,648,387 |
| | $ | 10,567 |
|
| Real estate – construction | 579 |
| | 163 |
| | 540 |
| | 13,289 |
| | 125 |
| | 2,115,565 |
| | 2,130,261 |
| | 287 |
|
| Commercial real estate – mortgage | 20,450 |
| | 2,826 |
| | 3,211 |
| | 105,409 |
| | 3,945 |
| | 11,659,635 |
| | 11,795,476 |
| | (5,505 | ) |
| Residential real estate – mortgage | 76,693 |
| | 27,972 |
| | 5,026 |
| | 162,892 |
| | 59,940 |
| | 13,017,967 |
| | 13,350,490 |
| | 1,558 |
|
| Equity lines of credit | 10,661 |
| | 4,384 |
| | 2,191 |
| | 34,269 |
| | 237 |
| | 2,627,974 |
| | 2,679,716 |
| | 453 |
|
| Equity loans | 3,519 |
| | 882 |
| | 306 |
| | 10,153 |
| | 29,303 |
| | 281,302 |
| | 325,465 |
| | (443 | ) |
| Credit card | 6,353 |
| | 4,733 |
| | 11,931 |
| | — |
| | — |
| | 681,617 |
| | 704,634 |
| | 11,299 |
|
| Consumer – direct | 24,060 |
| | 9,577 |
| | 6,313 |
| | 1,073 |
| | 470 |
| | 2,098,439 |
| | 2,139,932 |
| | 29,876 |
|
| Consumer – indirect | 79,600 |
| | 22,616 |
| | 6,028 |
| | 12,619 |
| | — |
| | 3,395,753 |
| | 3,516,616 |
| | 15,259 |
|
| Total loans | $ | 277,031 |
| | $ | 85,558 |
| | $ | 39,143 |
| | $ | 662,991 |
| | $ | 99,742 |
| | $ | 62,126,512 |
| | $ | 63,290,977 |
| | $ | 63,351 |
|
| Loans held for sale | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 52,041 |
| | $ | 52,041 |
| | $ | — |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | At or Quarter Ended March 31, 2018 |
| | 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 | $ | 15,427 |
| | $ | 12,230 |
| | $ | 5,420 |
| | $ | 284,699 |
| | $ | 5,231 |
| | $ | 26,036,120 |
| | $ | 26,359,127 |
| | $ | 8,395 |
|
| Real estate – construction | 450 |
| | 240 |
| | 1,918 |
| | 14,183 |
| | 129 |
| | 2,139,936 |
| | 2,156,856 |
| | (89 | ) |
| Commercial real estate – mortgage | 8,552 |
| | 3,220 |
| | 2,229 |
| | 115,285 |
| | 4,182 |
| | 11,394,819 |
| | 11,528,287 |
| | 114 |
|
| Residential real estate – mortgage | 73,335 |
| | 33,993 |
| | 5,975 |
| | 169,778 |
| | 62,171 |
| | 12,961,735 |
| | 13,306,987 |
| | 1,380 |
|
| Equity lines of credit | 12,063 |
| | 4,611 |
| | 2,371 |
| | 36,350 |
| | 236 |
| | 2,602,229 |
| | 2,657,860 |
| | 160 |
|
| Equity loans | 4,495 |
| | 983 |
| | 379 |
| | 11,429 |
| | 29,546 |
| | 297,705 |
| | 344,537 |
| | (69 | ) |
| Credit card | 6,438 |
| | 5,089 |
| | 11,845 |
| | — |
| | — |
| | 633,658 |
| | 657,030 |
| | 9,874 |
|
| Consumer – direct | 16,919 |
| | 8,569 |
| | 7,929 |
| | 4,211 |
| | 490 |
| | 1,818,325 |
| | 1,856,443 |
| | 25,412 |
|
| Consumer – indirect | 77,153 |
| | 21,092 |
| | 7,838 |
| | 11,275 |
| | — |
| | 3,223,376 |
| | 3,340,734 |
| | 22,541 |
|
| Total loans | $ | 214,832 |
| | $ | 90,027 |
| | $ | 45,904 |
| | $ | 647,210 |
| | $ | 101,985 |
| | $ | 61,107,903 |
| | $ | 62,207,861 |
| | $ | 67,718 |
|
| Loans held for sale | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 76,401 |
| | $ | 76,401 |
| | $ | — |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | At or Quarter Ended December 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 | $ | 14,804 |
| | $ | 3,753 |
| | $ | 18,136 |
| | $ | 310,059 |
| | $ | 1,213 |
| | $ | 25,401,984 |
| | $ | 25,749,949 |
| | $ | 13,320 |
|
| Real estate – construction | 12,293 |
| | 70 |
| | 1,560 |
| | 5,381 |
| | 101 |
| | 2,254,134 |
| | 2,273,539 |
| | (115 | ) |
| Commercial real estate – mortgage | 10,473 |
| | 3,270 |
| | 927 |
| | 111,982 |
| | 4,155 |
| | 11,593,351 |
| | 11,724,158 |
| | 417 |
|
| Residential real estate – mortgage | 69,474 |
| | 34,440 |
| | 8,572 |
| | 173,843 |
| | 64,898 |
| | 13,014,520 |
| | 13,365,747 |
| | 290 |
|
| Equity lines of credit | 10,956 |
| | 7,556 |
| | 2,259 |
| | 34,021 |
| | 237 |
| | 2,598,076 |
| | 2,653,105 |
| | 871 |
|
| Equity loans | 4,170 |
| | 657 |
| | 995 |
| | 11,559 |
| | 30,105 |
| | 315,778 |
| | 363,264 |
| | 87 |
|
| Credit card | 6,710 |
| | 4,804 |
| | 11,929 |
| | — |
| | — |
| | 616,074 |
| | 639,517 |
| | 9,048 |
|
| Consumer – direct | 19,766 |
| | 7,020 |
| | 6,712 |
| | 2,425 |
| | 534 |
| | 1,653,926 |
| | 1,690,383 |
| | 19,551 |
|
| Consumer – indirect | 92,017 |
| | 26,460 |
| | 7,288 |
| | 9,595 |
| | — |
| | 3,028,746 |
| | 3,164,106 |
| | 21,725 |
|
| Total loans | $ | 240,663 |
| | $ | 88,030 |
| | $ | 58,378 |
| | $ | 658,865 |
| | $ | 101,243 |
| | $ | 60,476,589 |
| | $ | 61,623,768 |
| | $ | 65,194 |
|
| Loans held for sale | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 67,110 |
| | $ | 67,110 |
| | $ | — |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | At or Quarter Ended September 30, 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 | $ | 51,581 |
| | $ | 6,351 |
| | $ | 6,072 |
| | $ | 324,071 |
| | $ | 1,259 |
| | $ | 24,702,608 |
| | $ | 25,091,942 |
| | $ | 14,695 |
|
| Real estate – construction | 661 |
| | 94 |
| | 2,955 |
| | 1,877 |
| | 106 |
| | 2,241,451 |
| | 2,247,144 |
| | (29 | ) |
| Commercial real estate – mortgage | 21,324 |
| | 1,089 |
| | 3,686 |
| | 108,040 |
| | 4,645 |
| | 11,203,594 |
| | 11,342,378 |
| | 7,707 |
|
| Residential real estate – mortgage | 57,582 |
| | 32,606 |
| | 2,558 |
| | 175,490 |
| | 59,086 |
| | 13,071,181 |
| | 13,398,503 |
| | 1,717 |
|
| Equity lines of credit | 11,118 |
| | 4,824 |
| | 2,179 |
| | 34,416 |
| | 237 |
| | 2,564,538 |
| | 2,617,312 |
| | 179 |
|
| Equity loans | 3,470 |
| | 1,798 |
| | 840 |
| | 11,305 |
| | 30,574 |
| | 335,389 |
| | 383,376 |
| | (7 | ) |
| Credit card | 6,832 |
| | 4,777 |
| | 10,692 |
| | — |
| | — |
| | 568,674 |
| | 590,975 |
| | 10,591 |
|
| Consumer – direct | 17,563 |
| | 6,796 |
| | 5,209 |
| | 2,746 |
| | 577 |
| | 1,571,505 |
| | 1,604,396 |
| | 18,281 |
|
| Consumer – indirect | 81,534 |
| | 23,070 |
| | 8,858 |
| | 8,867 |
| | — |
| | 2,916,849 |
| | 3,039,178 |
| | 18,133 |
|
| Covered loans | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total loans | $ | 251,665 |
| | $ | 81,405 |
| | $ | 43,049 |
| | $ | 666,812 |
| | $ | 96,484 |
| | $ | 59,175,789 |
| | $ | 60,315,204 |
| | $ | 71,267 |
|
| Loans held for sale | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 77,783 |
| | $ | 77,783 |
| | $ | — |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | At or Quarter Ended June 30, 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 | $ | 32,398 |
| | $ | 6,532 |
| | $ | 4,770 |
| | $ | 448,565 |
| | $ | 766 |
| | $ | 24,117,488 |
| | $ | 24,610,519 |
| | $ | 20,047 |
|
| Real estate – construction | 4,829 |
| | 474 |
| | 2,251 |
| | 1,993 |
| | 110 |
| | 2,279,166 |
| | 2,288,823 |
| | (797 | ) |
| Commercial real estate – mortgage | 8,966 |
| | 10,138 |
| | 3,617 |
| | 117,893 |
| | 4,725 |
| | 11,375,494 |
| | 11,520,833 |
| | (1,386 | ) |
| Residential real estate – mortgage | 54,911 |
| | 31,227 |
| | 3,043 |
| | 141,482 |
| | 59,490 |
| | 12,789,171 |
| | 13,079,324 |
| | 1,404 |
|
| Equity lines of credit | 8,560 |
| | 4,933 |
| | 1,630 |
| | 29,347 |
| | 236 |
| | 2,535,194 |
| | 2,579,900 |
| | 795 |
|
| Equity loans | 4,109 |
| | 1,202 |
| | 320 |
| | 11,015 |
| | 32,110 |
| | 346,093 |
| | 394,849 |
| | 209 |
|
| Credit card | 5,446 |
| | 4,015 |
| | 11,738 |
| | — |
| | — |
| | 555,621 |
| | 576,820 |
| | 10,678 |
|
| Consumer – direct | 16,134 |
| | 6,032 |
| | 4,187 |
| | 706 |
| | 620 |
| | 1,419,967 |
| | 1,447,646 |
| | 16,899 |
|
| Consumer – indirect | 75,605 |
| | 18,189 |
| | 5,681 |
| | 8,964 |
| | — |
| | 2,952,843 |
| | 3,061,282 |
| | 14,590 |
|
| Covered loans | 3,438 |
| | 308 |
| | 22,197 |
| | 348 |
| | — |
| | 294,873 |
| | 321,164 |
| | — |
|
| Total loans | $ | 214,396 |
| | $ | 83,050 |
| | $ | 59,434 |
| | $ | 760,313 |
| | $ | 98,057 |
| | $ | 58,665,910 |
| | $ | 59,881,160 |
| | $ | 62,439 |
|
| Loans held for sale | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 74,558 |
| | $ | 74,558 |
| | $ | — |
|
BBVA COMPASS BANCSHARES, INC. BALANCE SHEET (Unaudited) (In Thousands)
|
| | | | | | | | | | | | | | | | | | | |
| | 2018 | | 2017 |
| | June 30 | | March 31 | | December 31 | | September 30 | | June 30 |
| Assets: | | | | | | | | | |
| Cash and due from banks | $ | 1,138,034 |
| | $ | 1,098,345 |
| | $ | 1,313,022 |
| | $ | 1,145,745 |
| | $ | 1,073,646 |
|
| Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 2,438,585 |
| | 2,424,987 |
| | 2,769,804 |
| | 2,588,913 |
| | 2,302,500 |
|
| Cash and cash equivalents | 3,576,619 |
| | 3,523,332 |
| | 4,082,826 |
| | 3,734,658 |
| | 3,376,146 |
|
| Trading account assets | 277,694 |
| | 216,465 |
| | 220,496 |
| | 572,104 |
| | 2,651,083 |
|
| Debt securities available for sale | 11,293,724 |
| | 11,434,152 |
| | 12,219,632 |
| | 11,820,442 |
| | 11,666,908 |
|
| Debt securities held to maturity | 2,198,186 |
| | 1,975,729 |
| | 1,046,093 |
| | 1,077,372 |
| | 1,143,171 |
|
| Loans held for sale | 52,041 |
| | 76,401 |
| | 67,110 |
| | 77,783 |
| | 74,558 |
|
| Loans | 63,290,977 |
| | 62,207,861 |
| | 61,623,768 |
| | 60,315,204 |
| | 59,881,160 |
|
| Allowance for loan losses | (860,000 | ) | | (832,071 | ) | | (842,760 | ) | | (849,119 | ) | | (816,952 | ) |
| Net loans | 62,430,977 |
| | 61,375,790 |
| | 60,781,008 |
| | 59,466,085 |
| | 59,064,208 |
|
| Premises and equipment, net | 1,170,798 |
| | 1,189,253 |
| | 1,214,874 |
| | 1,226,747 |
| | 1,253,516 |
|
| Bank owned life insurance | 728,703 |
| | 724,600 |
| | 722,596 |
| | 720,693 |
| | 718,938 |
|
| Goodwill | 4,983,296 |
| | 4,983,296 |
| | 4,983,296 |
| | 4,983,296 |
| | 4,983,296 |
|
| Other assets | 2,042,624 |
| | 2,109,484 |
| | 1,982,648 |
| | 2,004,480 |
| | 2,072,095 |
|
| Total assets | $ | 88,754,662 |
| | $ | 87,608,502 |
| | $ | 87,320,579 |
| | $ | 85,683,660 |
| | $ | 87,003,919 |
|
| Liabilities: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Noninterest bearing | $ | 21,433,218 |
| | $ | 21,792,498 |
| | $ | 21,630,694 |
| | $ | 21,094,235 |
| | $ | 21,000,630 |
|
| Interest bearing | 48,714,490 |
| | 48,147,914 |
| | 47,625,619 |
| | 46,119,332 |
| | 44,616,750 |
|
| Total deposits | 70,147,708 |
| | 69,940,412 |
| | 69,256,313 |
| | 67,213,567 |
| | 65,617,380 |
|
| FHLB and other borrowings | 4,157,284 |
| | 3,322,940 |
| | 3,959,930 |
| | 3,956,041 |
| | 4,789,494 |
|
| Federal funds purchased and securities sold under agreements to repurchase | 185,511 |
| | 5,933 |
| | 19,591 |
| | 44,761 |
| | 31,619 |
|
| Other short-term borrowings | 81,547 |
| | 29,999 |
| | 17,996 |
| | 327,539 |
| | 2,435,260 |
|
| Accrued expenses and other liabilities | 991,968 |
| | 1,165,079 |
| | 1,053,439 |
| | 1,025,849 |
| | 1,140,536 |
|
| Total liabilities | 75,564,018 |
| | 74,464,363 |
| | 74,307,269 |
| | 72,567,757 |
| | 74,014,289 |
|
| 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 | 14,699,773 |
| | 14,814,744 |
| | 14,818,608 |
| | 14,912,412 |
| | 14,916,198 |
|
| Retained deficit | (1,476,614 | ) | | (1,660,417 | ) | | (1,868,659 | ) | | (1,920,184 | ) | | (2,050,051 | ) |
| Accumulated other comprehensive loss | (293,323 | ) | | (271,431 | ) | | (197,405 | ) | | (137,583 | ) | | (137,131 | ) |
| Total BBVA Compass Bancshares, Inc. shareholder’s equity | 13,161,541 |
| | 13,114,601 |
| | 12,984,249 |
| | 13,086,350 |
| | 12,960,721 |
|
| Noncontrolling interests | 29,103 |
| | 29,538 |
| | 29,061 |
| | 29,553 |
| | 28,909 |
|
| Total shareholder’s equity | 13,190,644 |
| | 13,144,139 |
| | 13,013,310 |
| | 13,115,903 |
| | 12,989,630 |
|
| Total liabilities and shareholder’s equity | $ | 88,754,662 |
| | $ | 87,608,502 |
| | $ | 87,320,579 |
| | $ | 85,683,660 |
| | $ | 87,003,919 |
|
BBVA COMPASS BANCSHARES, INC. INCOME STATEMENTS (Unaudited) (In Thousands)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | 2018 | | 2017 |
| | June 30 | | March 31 | | December 31 | | September 30 | | June 30 |
| Interest income: | | | | | | | | | |
| Interest and fees on loans | $ | 711,006 |
| | $ | 663,935 |
| | $ | 641,322 |
| | $ | 623,884 |
| | $ | 607,375 |
|
| Interest on debt securities available for sale | 53,792 |
| | 56,602 |
| | 56,883 |
| | 50,599 |
| | 53,159 |
|
| Interest on debt securities held to maturity | 13,062 |
| | 12,426 |
| | 6,555 |
| | 6,994 |
| | 6,821 |
|
| Interest on trading account assets | 924 |
| | 750 |
| | 1,005 |
| | 6,247 |
| | 9,805 |
|
| Interest on other earning assets | 14,916 |
| | 11,875 |
| | 10,843 |
| | 14,888 |
| | 14,480 |
|
| Total interest income | 793,700 |
| | 745,588 |
| | 716,608 |
| | 702,612 |
| | 691,640 |
|
| Interest expense: | | | | | | | | | |
| Interest on deposits | 116,323 |
| | 97,347 |
| | 88,016 |
| | 75,083 |
| | 65,914 |
|
| Interest on FHLB and other borrowings | 31,912 |
| | 24,756 |
| | 22,392 |
| | 29,904 |
| | 22,450 |
|
| Interest on federal funds purchased and securities sold under agreements to repurchase | 1,399 |
| | 536 |
| | 464 |
| | 4,623 |
| | 6,942 |
|
| Interest on other short-term borrowings | 567 |
| | 344 |
| | 2,191 |
| | 3,641 |
| | 10,506 |
|
| Total interest expense | 150,201 |
| | 122,983 |
| | 113,063 |
| | 113,251 |
| | 105,812 |
|
| Net interest income | 643,499 |
| | 622,605 |
| | 603,545 |
| | 589,361 |
| | 585,828 |
|
| Provision for loan losses | 91,280 |
| | 57,029 |
| | 58,835 |
| | 103,434 |
| | 45,285 |
|
| Net interest income after provision for loan losses | 552,219 |
| | 565,576 |
| | 544,710 |
| | 485,927 |
| | 540,543 |
|
| Noninterest income: | | | | | | | | | |
| Service charges on deposit accounts | 58,581 |
| | 56,161 |
| | 56,070 |
| | 55,953 |
| | 54,919 |
|
| Card and merchant processing fees | 44,048 |
| | 39,678 |
| | 33,380 |
| | 32,297 |
| | 32,460 |
|
| Retail investment sales | 29,782 |
| | 30,108 |
| | 26,338 |
| | 26,817 |
| | 28,588 |
|
| Investment banking and advisory fees | 24,546 |
| | 23,896 |
| | 24,957 |
| | 30,500 |
| | 19,943 |
|
| Money transfer income | 23,920 |
| | 20,688 |
| | 24,101 |
| | 24,881 |
| | 27,330 |
|
| Corporate and correspondent investment sales | 16,355 |
| | 12,056 |
| | 11,803 |
| | 5,145 |
| | 12,189 |
|
| Asset management fees | 10,989 |
| | 10,770 |
| | 10,303 |
| | 10,336 |
| | 10,055 |
|
| Mortgage banking | 7,964 |
| | 8,397 |
| | 4,720 |
| | 3,450 |
| | 3,316 |
|
| Bank owned life insurance | 4,375 |
| | 4,215 |
| | 4,397 |
| | 4,322 |
| | 4,220 |
|
| Investment securities gains, net | — |
| | — |
| | — |
| | 3,033 |
| | — |
|
| Other | 49,459 |
| | 51,856 |
| | 101,100 |
| | 61,060 |
| | 53,305 |
|
| Total noninterest income | 270,019 |
| | 257,825 |
| | 297,169 |
| | 257,794 |
| | 246,325 |
|
| Noninterest expense: | | | | | | | | | |
| Salaries, benefits and commissions | 286,852 |
| | 289,440 |
| | 296,146 |
| | 279,384 |
| | 288,426 |
|
| Equipment | 63,660 |
| | 63,360 |
| | 63,200 |
| | 60,656 |
| | 62,405 |
|
| Professional services | 68,577 |
| | 60,645 |
| | 76,068 |
| | 64,775 |
| | 64,840 |
|
| Net occupancy | 42,671 |
| | 40,422 |
| | 41,125 |
| | 42,227 |
| | 41,240 |
|
| Money transfer expense | 16,302 |
| | 13,721 |
| | 15,721 |
| | 15,938 |
| | 17,807 |
|
| Marketing | 11,814 |
| | 8,787 |
| | 7,950 |
| | 14,996 |
| | 15,729 |
|
| Communications | 5,251 |
| | 5,263 |
| | 4,970 |
| | 5,084 |
| | 5,281 |
|
| Other | 84,418 |
| | 81,275 |
| | 110,648 |
| | 90,902 |
| | 76,757 |
|
| Total noninterest expense | 579,545 |
| | 562,913 |
| | 615,828 |
| | 573,962 |
| | 572,485 |
|
| Net income before income tax expense | 242,693 |
| | 260,488 |
| | 226,051 |
| | 169,759 |
| | 214,383 |
|
| Income tax expense | 58,295 |
| | 51,798 |
| | 173,979 |
| | 39,308 |
| | 56,943 |
|
| Net income | 184,398 |
| | 208,690 |
| | 52,072 |
| | 130,451 |
| | 157,440 |
|
| Less: net income attributable to noncontrolling interests | 595 |
| | 461 |
| | 547 |
| | 584 |
| | 431 |
|
| Net income attributable to BBVA Compass Bancshares, Inc. | $ | 183,803 |
| | $ | 208,229 |
| | $ | 51,525 |
| | $ | 129,867 |
| | $ | 157,009 |
|
