BBVA Compass reports first quarter results
- 29
PR Newswire
HOUSTON, April 29, 2019
HOUSTON, April 29, 2019 /PRNewswire/ --
- Net income for the quarter totaled $141 million
- Net income declined 32 percent from a year ago as an increase in operating income1 was offset by higher provision expense
- Return on average assets and return on average tangible equity1 for the quarter were 0.61 percent and 6.64 percent, respectively
- Total revenue increased 6 percent from prior year levels
- Net interest income increased $60 million or 10 percent from year ago levels
- Percent net interest margin (FTE) up 14 basis points from the year ago quarter and 4 basis points from fourth quarter 2018 levels
- Noninterest expense growth well contained at 3 percent; efficiency ratio improves 147 basis points to 61.58 percent
- Positive operating leverage results in record quarterly operating income1 of $359 million in the quarter, up 13 percent from a year ago and 9 percent on a linked quarter annualized basis
- Deposit growth fully funds increase in loan portfolio
- Total loans of $65.0 billion up 4 percent
- Total deposits of $74.4 billion up 6 percent from a year ago and 12 percent on a linked quarter annualized basis
- Credit quality metrics remain sound despite isolated one-offs; allowance to loan ratio at 1.52 percent compared to 1.36 percent at the end of 2018
- Nonperforming loan ratio at 1.34 percent compared to 1.24 percent at the end of 2018 and 1.11 percent at the end of the first quarter of 2018
- Net charge off ratio of 63 basis points down from 68 basis points in the fourth quarter of 2018 and up from 44 basis points for the first quarter of 2018
- Provision expense in the quarter exceeded net charge-offs by $81 million
- Capital position remains strong; Common Equity Tier 1 capital ratio2 rose to 12.34 percent, up 34 basis points from year-end 2018
BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $141 million for the first quarter of 2019 compared to earnings of $209 million in the first quarter of 2018. Return on average assets and return on average tangible equity1 for the first quarter of 2019 were 0.61 percent and 6.64 percent, respectively.
"Our results for the first quarter of 2019 continue to reflect positive operating leverage as we delivered record operating income in the quarter," said Javier Rodríguez Soler, president and CEO of BBVA Compass. "Revenue growth was driven by a double digit increase in net interest income and expense growth was well contained. Loan growth was modest but, most importantly, was fully funded by deposit growth as we continued to successfully grow and deepen our deposit relationships. While provision levels in the quarter were elevated, the overall health of our loan portfolio remains strong. As we continue to navigate the challenging environment, our focus remains on being at the forefront of the digital transformation in our industry and using technology to improve efficiency and provide our customers with amazing experiences."
Total revenue for the quarter was $932 million, an increase of 6 percent from the first quarter of 2018. Net interest income totaled $683 million, an increase of $60 million or 10 percent from the first quarter of 2018, and an annualized increase of 1 percent on a linked quarter basis. The percent net interest margin in the first quarter of 2019 was 3.41 percent, an increase of 14 basis points from a year ago and 4 basis points on a linked quarter basis. "The increase in net interest income reflects higher short-term market rates and growth in higher-yielding loans, partially offset by higher funding costs as customers continue to migrate into interest bearing accounts and the competitive landscape for deposits," noted Rodríguez Soler.
Noninterest income for the quarter totaled $258 million, relatively unchanged from first quarter of 2018 levels. Fee-based businesses reported positive growth including card and merchant processing fees (+16 percent), service charges on deposit accounts (+5 percent) and money transfer income (+6 percent). Conversely, interest rate sensitive businesses and weaker demand impacted corporate and correspondent investment sales (-43 percent), investment banking and advisory fees (-21 percent) and investment services sales (-11 percent). During the quarter investment securities gains, net totaled $9.0 million.
Expense growth was well managed as noninterest expense totaled $582 million, a 3 percent increase compared to first quarter 2018 levels and down 13 percent on a linked quarter annualized basis. As a result of this positive operating leverage, operating income1 for the quarter totaled a record $359 million, an increase of $41 million or 13 percent from the first quarter of 2018, and the efficiency ratio improved 147 basis points to 61.58 percent compared to 63.05 percent in the first quarter of 2018.
In terms of balance sheet growth, total loans for the first quarter of 2019 were $65.0 billion, an increase of 4 percent from the $62.3 billion at the end of the first quarter of 2018. On a reported basis, total commercial loans were flat versus a year ago. However, during the first quarter approximately $1.2 billion of commercial loans were transferred to loans held for sale. Adjusting for the impact of this transfer, the year-over-year increase in commercial loans was 3 percent. Total consumer loans grew 6 percent, led by increased activity in direct consumer lending (+36 percent), credit cards (+27 percent) and indirect auto lending (+14 percent). Although year-over-year growth in these portfolios was at double-digit rates, compared to previous quarters the pace of growth slowed, particularly compared to the fourth quarter of 2018.
Total deposits at the end of the first quarter of 2019 were $74.4 billion, a 6 percent increase from the $69.9 billion at the end of the first quarter of 2018. Noninterest bearing demand deposits declined 6 percent as customers continue to shift from demand deposits into interest bearing accounts. As a result, interest bearing transactions accounts (savings, money market and interest bearing checking) increased 11 percent compared to a year ago. Deposit growth at $4.4 billion fully funded loan growth of $2.7 billion. Consequently, the loan to deposit ratio ended the quarter at 87 percent compared to 89 percent a year ago.
"While loan growth is important, maintaining sound underwriting standards and a strong risk profile is one of our highest priorities," noted Rodríguez Soler. "During the quarter we recorded a meaningful increase in provision expense to address isolated, one-off issues in our commercial and consumer loan portfolios."
Nonperforming loans as a percentage of total loans ended the quarter at 1.34 percent compared to 1.24 percent at the end of the fourth quarter of 2018 and 1.11 percent at the end of the first quarter of 2018. The increase in nonperforming loans during the quarter was primarily due to a handful of unrelated commercial credits. Net charge-offs as a percentage of average loans were 63 basis points in the quarter, down from 68 basis points in the fourth quarter of 2018 and up from the 44 basis points recorded during the first quarter of 2018. The increase in net charge-offs over the past two quarters was primarily the result of increased charge-offs in certain consumer portfolios reflecting growth in those portfolios as well as the further seasoning of newly established consumer direct portfolio product offerings. Provision expense for the quarter was $182 million, exceeding net charge-offs by $81 million. As a result, the allowance for loan losses as a percentage of total loans at the end of the quarter was 1.52 percent, up from 1.36 percent at the end of the fourth quarter of 2018 and 1.34 percent at the end of the first quarter of 2018. The coverage ratio of nonperforming loans ended the quarter at 111 percent.
Total shareholder's equity at the end of the first quarter of 2019 totaled $13.7 billion, a 4 percent increase from $13.1 billion at the end of the first quarter of 2018. The CET1 ratio stood at 12.34 percent2 at the end of the first quarter of 2019, up 26 basis points from the end of the first quarter of 2018. All of BBVA Compass' regulatory capital ratios2 continue to significantly exceed the requirements under "well-capitalized" guidelines.
During the first quarter, BBVA Compass was named by Global Finance magazine as top treasury and cash management provider for the Southwest in the category of Best US Regional Middle Market providers. BBVA Compass was recognized for the annual award from Global Finance for its customer service, competitive pricing, product innovation and the extent to which the bank differentiated itself from competitors.
BBVA Compass also announced that the Federal Reserve Bank of Atlanta rated it "Outstanding" for CRA performance for its most recent examination period encompassing 2015 to 2017. The bank achieved "excellent performance" for community development lending and investments, and "high satisfactory" for service.
The evaluation cited several reasons for BBVA Compass' overall 'Outstanding' rating, including the bank's excellent responsiveness to credit needs and the distribution of loans among borrowers of different income levels and businesses of different revenue sizes. In addition, BBVA Compass demonstrated leadership in making community development loans and investments, as well as leadership in providing community development services.
_________________________ |
1 Return on average tangible equity and operating income are non-GAAP financial measures we believe aid in understanding certain areas of our performance. The calculation of these measures is included on the page titled Non-GAAP Reconciliation. |
2 Regulatory capital ratios at March 31, 2019, are estimated. |
FTE – fully taxable equivalent |
About BBVA Compass
BBVA Compass is a Sunbelt-based financial institution that operates 641 branches, including 329 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 37 in Colorado and 17 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 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018. 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 March 28, 2019, BBVA filed its annual report on Form 20-F for the year ended December 31, 2018, 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, 2018, including complete audited financial statements, free of charge. To request a copy, contact Ed Bilek at [email protected].
Forward-Looking Statements
Certain statements in this press release may contain forward-looking statements about BBVA Compass Bancshares, Inc. (the "Company") and its industry that involve substantial risks and uncertainties. The use of "we," "our" and similar terms refer to the Company. Statements other than statements of current or historical fact, including statements regarding our future financial condition, results of operations, business plans, liquidity, cash flows, projected costs, and the impact of any laws or regulations applicable to the Company, constitute forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions are intended to identify these forward-looking statements. These forward-looking statements reflect the Company's views regarding future events and financial performance. Such statements are subject to risks, uncertainties, assumptions and other important factors, many of which may be beyond the Company's control, that could cause actual results to differ materially from anticipated results. If the Company's assumptions and estimates are incorrect, or if the Company becomes subject to significant limitations as the result of litigation or regulatory action, then the Company's actual results could vary materially from those expressed or implied in these forward-looking statements. The forward-looking statements are and will be based on the Company's then current views and assumptions regarding future events and speak only as of their dates made. The Company assumes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by securities law or regulation. For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Risk Factors" section of the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on February 28, 2019, as updated by our subsequent SEC filings.
BBVA COMPASS BANCSHARES, INC. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands) | |||||||||||
Three Months Ended March 31, | % | ||||||||||
2019 | 2018 | Change | |||||||||
EARNINGS SUMMARY | |||||||||||
Net interest income | $ 683,089 | $ 622,605 | 10 | ||||||||
Noninterest income [a] | 248,802 | 257,825 | (3) | ||||||||
Total revenue [a] | 931,891 | 880,430 | 6 | ||||||||
Investment securities gain, net | 8,958 | — | NM | ||||||||
Provision for loan losses | 182,292 | 57,029 | 220 | ||||||||
Noninterest expense | 581,973 | 562,913 | 3 | ||||||||
Pretax income | 176,584 | 260,488 | (32) | ||||||||
Income tax expense | 35,603 | 51,798 | (31) | ||||||||
Net income | 140,981 | 208,690 | (32) | ||||||||
Net income attributable to noncontrolling interests | 556 | 461 | 21 | ||||||||
Net income attributable to BBVA Compass Bancshares, Inc. | $ 140,425 | $ 208,229 | (33) | ||||||||
SELECTED RATIOS | |||||||||||
Return on average assets | 0.61 % | 0.96 % | |||||||||
Return on average tangible equity [b] | 6.64 | 10.51 | |||||||||
Efficiency ratio [b] | 61.58 | 63.05 | |||||||||
Average common equity to average assets | 14.39 | 14.62 | |||||||||
Average loans to average total deposits | 90.69 | 89.61 | |||||||||
Common equity tier I capital (CET1) [c] | 12.34 | 12.08 | |||||||||
Tier I capital ratio [c] | 12.67 | 12.43 | |||||||||
Total capital ratio [c] | 14.81 | 14.67 | |||||||||
Leverage ratio [c] | 10.05 | 10.12 | |||||||||
Average for Three Months | Ending Balance | ||||||||||
Ended March 31, | % | March 31, | % | ||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||
BALANCE SHEET HIGHLIGHTS | |||||||||||
Total loans | $ 65,482,395 | $ 62,200,448 | 5 | $ 65,031,366 | $ 62,284,262 | 4 | |||||
Total debt securities | 13,768,787 | 13,192,627 | 4 | 13,872,059 | 13,409,881 | 3 | |||||
Earning assets | 82,503,041 | 78,612,940 | 5 | 84,356,100 | 78,733,347 | 7 | |||||
Total assets | 92,985,876 | 87,770,909 | 6 | 93,842,586 | 87,608,502 | 7 | |||||
Noninterest bearing demand deposits | 20,183,069 | 21,581,905 | (6) | 20,403,716 | 21,792,498 | (6) | |||||
Interest bearing transaction accounts | 35,904,264 | 33,721,948 | 6 | 38,018,421 | 34,344,230 | 11 | |||||
Total transaction accounts | 56,087,333 | 55,303,853 | 1 | 58,422,137 | 56,136,728 | 4 | |||||
Total deposits | 72,203,842 | 69,413,803 | 4 | 74,380,308 | 69,940,412 | 6 | |||||
Total shareholder's equity | 13,640,655 | 13,090,418 | 4 | 13,727,537 | 13,144,139 | 4 | |||||
[a] Excludes net gain on sales of investment securities. |
[b] Non-GAAP financial measure that we believe aids in understanding certain areas of our performance. The calculation of this measure is included on the page titled Non-GAAP Reconciliation. |
[c] Current period regulatory capital ratios are estimated. |
NM = Not meaningful |
BBVA COMPASS BANCSHARES, INC. | |||||||||
(Unaudited) | |||||||||
(Dollars in Thousands) | |||||||||
2019 | 2018 | ||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||
NONPERFORMING ASSETS | |||||||||
Nonaccrual loans [a] | $806,644 | $ 751,486 | $ 628,159 | $662,991 | $647,210 | ||||
Loans 90 days or more past due [b] | 63,880 | 59,549 | 44,765 | 39,143 | 45,904 | ||||
TDRs 90 days or more past due | 370 | 411 | 444 | 491 | 700 | ||||
Total nonperforming loans [a] | 870,894 | 811,446 | 673,368 | 702,625 | 693,814 | ||||
Other real estate owned, net (OREO) | 14,983 | 16,869 | 18,706 | 16,499 | 16,147 | ||||
Other repossessed assets | 11,225 | 12,031 | 9,875 | 13,117 | 11,278 | ||||
Total nonperforming assets | $897,102 | $ 840,346 | $ 701,949 | $732,241 | $721,239 | ||||
TDRs accruing and past due less than 90 days | $111,671 | $ 109,190 | $ 92,606 | $ 99,251 | $101,285 | ||||
Total nonperforming loans as a % of loans | 1.34 % | 1.24 % | 1.04 % | 1.11 % | 1.11 % | ||||
Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets | 1.38 | 1.29 | 1.09 | 1.16 | 1.16 | ||||
Three Months Ended | |||||||||
2019 | 2018 | ||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||
ALLOWANCE FOR LOAN LOSSES | |||||||||
Balance at beginning of period | $885,242 | $ 875,393 | $ 860,000 | $832,071 | $842,760 | ||||
Net charge-offs (NCO) | 101,512 | 112,298 | 79,571 | 63,351 | 67,718 | ||||
Provision for loan losses | 182,292 | 122,147 | 94,964 | 91,280 | 57,029 | ||||
Balance at end of period | $966,022 | $ 885,242 | $ 875,393 | $860,000 | $832,071 | ||||
Allowance for loan losses as a % of total loans | 1.52 % | 1.36 % | 1.36 % | 1.36 % | 1.34 % | ||||
Allowance for loan losses as a % of nonperforming loans [c] | 110.92 | 109.09 | 130.00 | 122.40 | 119.93 | ||||
Allowance for loan losses as a % of nonperforming assets [c] | 107.68 | 105.34 | 124.71 | 117.45 | 115.37 | ||||
Annualized as a % of average loans: | |||||||||
NCO - QTD | 0.63 | 0.68 | 0.49 | 0.40 | 0.44 | ||||
NCO - YTD | 0.63 | 0.51 | 0.45 | 0.42 | 0.44 | ||||
[a] Includes loans held for sale. |
[b] Excludes loans classified as troubled debt restructuring (TDRs). |
[c] Includes loans held for sale that are on nonaccrual status. |
BBVA COMPASS BANCSHARES, INC. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in Thousands) | |||||||||||
Three Months Ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||
YIELD/RATE ANALYSIS | |||||||||||
(Taxable Equivalent Basis) | |||||||||||
Assets | |||||||||||
Earning assets: | |||||||||||
Loans | $65,482,395 | $812,415 | 5.03 % | $62,200,448 | $674,830 | 4.40 % | |||||
Debt securities available for sale [a] | 9,922,400 | 53,522 | 2.19 | 11,424,405 | 56,605 | 2.01 | |||||
Debt securities held to maturity | 4,034,292 | 30,765 | 3.09 | 1,996,409 | 13,902 | 2.82 | |||||
Other earning assets [b] | 3,251,859 | 23,507 | 2.93 | 3,219,865 | 12,626 | 1.59 | |||||
Total earning assets [a] | 82,690,946 | 920,209 | 4.51 | 78,841,127 | 757,963 | 3.90 | |||||
Allowance for loan losses | (909,663) | (844,248) | |||||||||
Unrealized loss on debt securities available for sale | (187,905) | (228,187) | |||||||||
Other assets | 11,392,498 | 10,002,217 | |||||||||
Total assets | $92,985,876 | $87,770,909 | |||||||||
Liabilities and Shareholder's Equity | |||||||||||
Interest bearing liabilities: | |||||||||||
Interest bearing demand deposits | $ 8,685,693 | $ 20,346 | 0.95 | 8,195,605 | $ 9,581 | 0.47 | |||||
Savings and money market accounts | 27,218,571 | 76,909 | 1.15 | 25,526,343 | 38,890 | 0.62 | |||||
Certificates and other time deposits | 16,116,509 | 85,099 | 2.14 | 14,109,950 | 48,876 | 1.40 | |||||
Total interest bearing deposits | 52,020,773 | 182,354 | 1.42 | 47,831,898 | 97,347 | 0.83 | |||||
FHLB and other borrowings | 4,290,724 | 37,626 | 3.56 | 3,310,286 | 24,756 | 3.03 | |||||
Federal funds purchased and securities sold under agreement to repurchase [b] | 411,925 | 3,747 | 3.69 | 22,235 | 536 | 9.78 | |||||
Other short-term borrowings | 28,117 | 196 | 2.83 | 51,626 | 344 | 2.70 | |||||
Total interest bearing liabilities | 56,751,539 | 223,923 | 1.60 | 51,216,045 | 122,983 | 0.97 | |||||
Noninterest bearing deposits | 20,183,069 | 21,581,905 | |||||||||
Other noninterest bearing liabilities | 2,410,613 | 1,882,541 | |||||||||
Total liabilities | 79,345,221 | 74,680,491 | |||||||||
Shareholder's equity | 13,640,655 | 13,090,418 | |||||||||
Total liabilities and shareholder's equity | $92,985,876 | $87,770,909 | |||||||||
Net interest income/ net interest spread | 696,286 | 2.91 % | 634,980 | 2.93 % | |||||||
Net yield on earning assets | 3.41 % | 3.27 % | |||||||||
Total taxable equivalent adjustment | 13,197 | 12,375 | |||||||||
Net interest income | $683,089 | $622,605 | |||||||||
[a] Excludes adjustment for market valuation. | |||||||||||
[b] Yield/rate reflects impact of balance sheet offsetting. |
BBVA COMPASS BANCSHARES, INC. | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||
Three Months | Three Months Ended | ||||||||||||||
Ended March 31, | % | 2019 | 2018 | ||||||||||||
2019 | 2018 | Change | March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||
NONINTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | $ 58,908 | $ 56,161 | 5 | $ 58,908 | $ 61,606 | $ 60,325 | $ 58,581 | $ 56,161 | |||||||
Card and merchant processing fees | 46,002 | 39,678 | 16 | 46,002 | 46,982 | 44,219 | 44,048 | 39,678 | |||||||
Investment services sales fees | 26,696 | 30,108 | (11) | 26,696 | 24,476 | 28,286 | 29,782 | 30,108 | |||||||
Investment banking and advisory fees | 18,857 | 23,896 | (21) | 18,857 | 15,286 | 13,956 | 24,546 | 23,896 | |||||||
Money transfer income | 21,981 | 20,688 | 6 | 21,981 | 23,632 | 23,441 | 23,920 | 20,688 | |||||||
Corporate and correspondent investment sales | 6,892 | 12,056 | (43) | 6,892 | 10,774 | 12,490 | 16,355 | 12,056 | |||||||
Asset management fees | 10,767 | 10,770 | — | 10,767 | 10,909 | 11,143 | 10,989 | 10,770 | |||||||
Mortgage banking | 4,937 | 8,397 | (41) | 4,937 | 3,755 | 6,717 | 7,964 | 8,397 | |||||||
Bank owned life insurance | 4,584 | 4,215 | 9 | 4,584 | 4,635 | 4,597 | 4,375 | 4,215 | |||||||
Other | 49,178 | 51,856 | (5) | 49,178 | 68,551 | 53,285 | 49,459 | 51,856 | |||||||
248,802 | 257,825 | (3) | 248,802 | 270,606 | 258,459 | 270,019 | 257,825 | ||||||||
Investment securities gains, net | 8,958 | — | — | 8,958 | — | — | — | — | |||||||
Total noninterest income | $257,760 | $257,825 | — | $257,760 | $ 270,606 | $ 258,459 | $270,019 | $257,825 | |||||||
NONINTEREST EXPENSE | |||||||||||||||
Salaries, benefits and commissions | $292,716 | $289,440 | 1 | $292,716 | $ 285,820 | $ 292,679 | $286,852 | $289,440 | |||||||
Equipment | 65,394 | 63,360 | 3 | 65,394 | 66,806 | 63,739 | 63,660 | 63,360 | |||||||
Professional services | 63,896 | 60,645 | 5 | 63,896 | 79,529 | 68,403 | 68,577 | 60,645 | |||||||
Net occupancy | 40,941 | 40,422 | 1 | 40,941 | 41,161 | 42,514 | 42,671 | 40,422 | |||||||
Money transfer expense | 14,978 | 13,721 | 9 | 14,978 | 15,995 | 16,120 | 16,302 | 13,721 | |||||||
Marketing | 10,393 | 8,787 | 18 | 10,393 | 15,884 | 12,381 | 11,814 | 8,787 | |||||||
Communications | 5,401 | 5,263 | 3 | 5,401 | 9,241 | 10,827 | 5,251 | 5,263 | |||||||
Other | 88,254 | 81,275 | 9 | 88,254 | 87,556 | 98,847 | 84,418 | 81,275 | |||||||
Total noninterest expense | $581,973 | $562,913 | 3 | $581,973 | $ 601,992 | $ 605,510 | $579,545 | $562,913 | |||||||
BBVA COMPASS BANCSHARES, INC. | |||
(Unaudited) | |||
(Dollars in Thousands) | |||
Three Months Ended March 31, | |||
2019 | 2018 | ||
NON-GAAP RECONCILIATION | |||
Computation of Operating Income: | |||
Net interest income (GAAP) | $ 683,089 | $ 622,605 | |
Plus: noninterest income (GAAP) | 257,760 | 257,825 | |
Less: noninterest expense (GAAP) | 581,973 | 562,913 | |
Operating income (non-GAAP) | $ 358,876 | $ 317,517 | |
Computation of Average Tangible Equity: | |||
Total stockholder's equity (average) (GAAP) | $ 13,640,655 | $ 13,090,418 | |
Less: Goodwill and other intangibles (average) (GAAP) | 5,035,591 | 5,039,246 | |
Average tangible equity (non-GAAP) [B] | $ 8,605,064 | $ 8,051,172 | |
Net income (GAAP) [A] | $ 140,981 | $ 208,690 | |
Return on average tangible equity (non-GAAP) ([A]/[B], annualized) | 6.64 % | 10.51 % | |
Computation of Efficiency Ratio: | |||
Noninterest expense (GAAP) [A] | $ 581,973 | $ 562,913 | |
Plus: net interest income, taxable equivalent basis | $ 696,286 | $ 634,980 | |
Plus: noninterest income (GAAP) | 257,760 | 257,825 | |
Less: investment securities gains, net (GAAP) | 8,958 | — | |
Total revenue [B] | $ 945,088 | $ 892,805 | |
Efficiency ratio (non-GAAP) ([A]/[B]) | 61.58 % | 63.05 % | |
BBVA COMPASS BANCSHARES, INC. | |||||||||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||
At or Quarter Ended March 31, 2019 | |||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Nonaccrual | Accruing TDRs | Not Past Due or | Total | Net Charge Offs | ||||||||
Commercial, financial and agricultural | $ 54,216 | $ 17,813 | $ 8,144 | $ 461,029 | $ 18,910 | $ 24,721,818 | $ 25,281,930 | $ 4,743 | |||||||
Real estate – construction | 13,582 | 1,707 | 533 | 1,298 | 111 | 1,928,116 | 1,945,347 | (1,410) | |||||||
Commercial real estate – mortgage | 4,679 | 322 | 1,160 | 109,447 | 3,811 | 12,835,777 | 12,955,196 | (27) | |||||||
Residential real estate – mortgage | 78,538 | 22,384 | 9,007 | 163,463 | 59,167 | 13,063,837 | 13,396,396 | 929 | |||||||
Equity lines of credit | 15,355 | 4,035 | 1,471 | 34,999 | — | 2,660,447 | 2,716,307 | 575 | |||||||
Equity loans | 2,920 | 1,050 | 34 | 9,840 | 26,188 | 248,137 | 288,169 | (81) | |||||||
Credit card | 9,394 | 7,465 | 18,499 | — | — | 797,474 | 832,832 | 15,243 | |||||||
Consumer – direct | 35,620 | 20,432 | 17,251 | 4,725 | 3,854 | 2,452,034 | 2,533,916 | 53,874 | |||||||
Consumer – indirect | 78,610 | 24,600 | 7,781 | 21,843 | — | 3,674,618 | 3,807,452 | 27,666 | |||||||
Total loans | $ 292,914 | $ 99,808 | $ 63,880 | $ 806,644 | $ 112,041 | $ 62,382,258 | $ 63,757,545 | $ 101,512 | |||||||
Loans held for sale | $ — | $ — | $ — | $ — | $ — | $ 1,273,821 | $ 1,273,821 | $ — | |||||||
At or Quarter Ended December 31, 2018 | |||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Nonaccrual | Accruing TDRs | Not Past Due or | Total | Net Charge Offs | ||||||||
Commercial, financial and agricultural | $ 17,257 | $ 11,784 | $ 8,114 | $ 400,389 | $ 18,926 | $ 26,105,849 | $ 26,562,319 | $ 38,786 | |||||||
Real estate – construction | 218 | 8,849 | 544 | 2,851 | 116 | 1,984,959 | 1,997,537 | (24) | |||||||
Commercial real estate – mortgage | 11,678 | 3,375 | 2,420 | 110,144 | 3,661 | 12,885,518 | 13,016,796 | 470 | |||||||
Residential real estate – mortgage | 80,366 | 29,852 | 5,927 | 167,099 | 57,446 | 13,081,466 | 13,422,156 | 247 | |||||||
Equity lines of credit | 14,007 | 5,109 | 2,226 | 37,702 | — | 2,688,173 | 2,747,217 | (656) | |||||||
Equity loans | 3,471 | 843 | 180 | 10,939 | 26,768 | 256,413 | 298,614 | (35) | |||||||
Credit card | 9,516 | 7,323 | 17,011 | — | — | 784,458 | 818,308 | 11,231 | |||||||
Consumer – direct | 37,336 | 19,543 | 13,336 | 4,528 | 2,684 | 2,476,161 | 2,553,588 | 38,508 | |||||||
Consumer – indirect | 100,434 | 32,172 | 9,791 | 17,834 | — | 3,609,788 | 3,770,019 | 23,771 | |||||||
Total loans | $ 274,283 | $ 118,850 | $ 59,549 | $ 751,486 | $ 109,601 | $ 63,872,785 | $ 65,186,554 | $ 112,298 | |||||||
Loans held for sale | $ — | $ — | $ — | $ — | $ — | $ 68,766 | $ 68,766 | $ — | |||||||
BBVA COMPASS BANCSHARES, INC. | |||||||||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||
At or Quarter Ended September 30, 2018 | |||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Nonaccrual | Accruing TDRs | Not Past Due or | Total | Net Charge Offs | ||||||||
Commercial, financial and agricultural | $ 38,512 | $ 16,416 | $ 9,609 | $ 290,239 | $ 522 | $ 26,300,781 | $ 26,656,079 | $ 13,975 | |||||||
Real estate – construction | 3,252 | 5,278 | 532 | 12,882 | 121 | 2,096,427 | 2,118,492 | (23) | |||||||
Commercial real estate – mortgage | 31,792 | 18,349 | 502 | 104,976 | 3,753 | 12,237,632 | 12,397,004 | 2,035 | |||||||
Residential real estate – mortgage | 87,426 | 30,373 | 3,697 | 159,721 | 59,082 | 13,062,173 | 13,402,472 | 2,090 | |||||||
Equity lines of credit | 13,556 | 4,298 | 1,186 | 35,125 | — | 2,655,566 | 2,709,731 | (19) | |||||||
Equity loans | 2,082 | 1,042 | 241 | 10,378 | 28,383 | 266,712 | 308,838 | 45 | |||||||
Credit card | 8,601 | 6,449 | 13,157 | — | — | 735,479 | 763,686 | 9,686 | |||||||
Consumer – direct | 30,153 | 14,455 | 8,988 | 3,184 | 1,189 | 2,364,239 | 2,422,208 | 28,765 | |||||||
Consumer – indirect | 86,310 | 23,587 | 6,853 | 11,654 | — | 3,550,365 | 3,678,769 | 23,017 | |||||||
Total loans | $ 301,684 | $ 120,247 | $ 44,765 | $ 628,159 | $ 93,050 | $ 63,269,374 | $ 64,457,279 | $ 79,571 | |||||||
Loans held for sale | $ — | $ — | $ — | $ — | $ — | $ 73,569 | $ 73,569 | $ — | |||||||
At or Quarter Ended June 30, 2018 | |||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Nonaccrual | Accruing TDRs | Not Past Due or | Total | Net Charge Offs | ||||||||
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 | $ — | |||||||
BBVA COMPASS BANCSHARES, INC. | |||||||||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||
At or Quarter Ended March 31, 2018 | |||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Nonaccrual | Accruing TDRs | Not Past Due or | Total | Net Charge Offs | ||||||||
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 | $ — | |||||||
BBVA COMPASS BANCSHARES, INC. | |||||||||
BALANCE SHEET (Unaudited) | |||||||||
(Dollars in Thousands) | |||||||||
2019 | 2018 | ||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||
Assets: | |||||||||
Cash and due from banks | $ 1,143,541 | $ 1,217,319 | $ 1,122,747 | $ 1,138,034 | $ 1,098,345 | ||||
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 4,864,920 | 2,115,307 | 2,404,164 | 2,438,585 | 2,424,987 | ||||
Cash and cash equivalents | 6,008,461 | 3,332,626 | 3,526,911 | 3,576,619 | 3,523,332 | ||||
Trading account assets | 306,123 | 237,656 | 216,749 | 277,694 | 216,465 | ||||
Debt securities available for sale | 9,297,018 | 10,981,216 | 11,134,860 | 11,293,724 | 11,434,152 | ||||
Debt securities held to maturity | 4,575,041 | 2,885,613 | 2,490,568 | 2,198,186 | 1,975,729 | ||||
Loans held for sale | 1,273,821 | 68,766 | 73,569 | 52,041 | 76,401 | ||||
Loans | 63,757,545 | 65,186,554 | 64,457,279 | 63,290,977 | 62,207,861 | ||||
Allowance for loan losses | (966,022) | (885,242) | (875,393) | (860,000) | (832,071) | ||||
Net loans | 62,791,523 | 64,301,312 | 63,581,886 | 62,430,977 | 61,375,790 | ||||
Premises and equipment, net | 1,125,676 | 1,152,958 | 1,155,795 | 1,170,798 | 1,189,253 | ||||
Bank owned life insurance | 740,764 | 736,171 | 731,527 | 728,703 | 724,600 | ||||
Goodwill | 4,983,296 | 4,983,296 | 4,983,296 | 4,983,296 | 4,983,296 | ||||
Other assets | 2,740,863 | 2,267,560 | 2,152,495 | 2,042,624 | 2,109,484 | ||||
Total assets | $ 93,842,586 | $ 90,947,174 | $ 90,047,656 | $ 88,754,662 | $ 87,608,502 | ||||
Liabilities: | |||||||||
Deposits: | |||||||||
Noninterest bearing | $ 20,403,716 | $ 20,183,876 | $ 20,968,391 | $ 21,433,218 | $ 21,792,498 | ||||
Interest bearing | 53,976,592 | 51,984,111 | 49,409,666 | 48,714,490 | 48,147,914 | ||||
Total deposits | 74,380,308 | 72,167,987 | 70,378,057 | 70,147,708 | 69,940,412 | ||||
FHLB and other borrowings | 4,011,160 | 3,987,590 | 5,045,302 | 4,157,284 | 3,322,940 | ||||
Federal funds purchased and securities sold under agreements to repurchase | 188,024 | 102,275 | 78,004 | 185,511 | 5,933 | ||||
Other short-term borrowings | 30,975 | — | 68,714 | 81,547 | 29,999 | ||||
Accrued expenses and other liabilities | 1,504,582 | 1,176,793 | 1,135,092 | 991,968 | 1,165,079 | ||||
Total liabilities | 80,115,049 | 77,434,645 | 76,705,169 | 75,564,018 | 74,464,363 | ||||
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 | 14,542,166 | 14,545,849 | 14,695,197 | 14,699,773 | 14,814,744 | ||||
Retained deficit | (927,877) | (1,107,198) | (1,302,525) | (1,476,614) | (1,660,417) | ||||
Accumulated other comprehensive loss | (148,135) | (186,848) | (311,422) | (293,323) | (271,431) | ||||
Total BBVA Compass Bancshares, Inc. shareholder's equity | 13,697,859 | 13,483,508 | 13,312,955 | 13,161,541 | 13,114,601 | ||||
Noncontrolling interests | 29,678 | 29,021 | 29,532 | 29,103 | 29,538 | ||||
Total shareholder's equity | 13,727,537 | 13,512,529 | 13,342,487 | 13,190,644 | 13,144,139 | ||||
Total liabilities and shareholder's equity | $ 93,842,586 | $ 90,947,174 | $ 90,047,656 | $ 88,754,662 | $ 87,608,502 | ||||
BBVA COMPASS BANCSHARES, INC. | |||||||||
INCOME STATEMENT (Unaudited) | |||||||||
(Dollars in Thousands) | |||||||||
Three Months Ended | |||||||||
2019 | 2018 | ||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||
Interest income: | |||||||||
Interest and fees on loans | $ 800,488 | $ 787,858 | $ 751,470 | $ 711,006 | $ 663,935 | ||||
Interest on debt securities available for sale | 53,522 | 59,028 | 53,201 | 53,792 | 56,602 | ||||
Interest on debt securities held to maturity | 29,495 | 19,993 | 16,110 | 13,062 | 12,426 | ||||
Interest on trading account assets | 539 | 704 | 833 | 924 | 750 | ||||
Interest and dividends on other earning assets | 22,968 | 19,340 | 17,449 | 14,916 | 11,875 | ||||
Total interest income | 907,012 | 886,923 | 839,063 | 793,700 | 745,588 | ||||
Interest expense: | |||||||||
Interest on deposits | 182,354 | 163,722 | 139,898 | 116,323 | 97,347 | ||||
Interest on FHLB and other borrowings | 37,626 | 36,573 | 37,131 | 31,912 | 24,756 | ||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 3,747 | 3,849 | 3,169 | 1,399 | 536 | ||||
Interest on other short-term borrowings | 196 | 591 | 579 | 567 | 344 | ||||
Total interest expense | 223,923 | 204,735 | 180,777 | 150,201 | 122,983 | ||||
Net interest income | 683,089 | 682,188 | 658,286 | 643,499 | 622,605 | ||||
Provision for loan losses | 182,292 | 122,147 | 94,964 | 91,280 | 57,029 | ||||
Net interest income after provision for loan losses | 500,797 | 560,041 | 563,322 | 552,219 | 565,576 | ||||
Noninterest income: | |||||||||
Service charges on deposit accounts | 58,908 | 61,606 | 60,325 | 58,581 | 56,161 | ||||
Card and merchant processing fees | 46,002 | 46,982 | 44,219 | 44,048 | 39,678 | ||||
Investment services sales fees | 26,696 | 24,476 | 28,286 | 29,782 | 30,108 | ||||
Investment banking and advisory fees | 18,857 | 15,286 | 13,956 | 24,546 | 23,896 | ||||
Money transfer income | 21,981 | 23,632 | 23,441 | 23,920 | 20,688 | ||||
Asset management fees | 10,767 | 10,909 | 11,143 | 10,989 | 10,770 | ||||
Corporate and correspondent investment sales | 6,892 | 10,774 | 12,490 | 16,355 | 12,056 | ||||
Mortgage banking | 4,937 | 3,755 | 6,717 | 7,964 | 8,397 | ||||
Bank owned life insurance | 4,584 | 4,635 | 4,597 | 4,375 | 4,215 | ||||
Investment securities gains, net | 8,958 | — | — | — | — | ||||
Other | 49,178 | 68,551 | 53,285 | 49,459 | 51,856 | ||||
Total noninterest income | 257,760 | 270,606 | 258,459 | 270,019 | 257,825 | ||||
Noninterest expense: | |||||||||
Salaries, benefits and commissions | 292,716 | 285,820 | 292,679 | 286,852 | 289,440 | ||||
Equipment | 65,394 | 66,806 | 63,739 | 63,660 | 63,360 | ||||
Professional services | 63,896 | 79,529 | 68,403 | 68,577 | 60,645 | ||||
Net occupancy | 40,941 | 41,161 | 42,514 | 42,671 | 40,422 | ||||
Money transfer expense | 14,978 | 15,995 | 16,120 | 16,302 | 13,721 | ||||
Marketing | 10,393 | 15,884 | 12,381 | 11,814 | 8,787 | ||||
Communications | 5,401 | 9,241 | 10,827 | 5,251 | 5,263 | ||||
Other | 88,254 | 87,556 | 98,847 | 84,418 | 81,275 | ||||
Total noninterest expense | 581,973 | 601,992 | 605,510 | 579,545 | 562,913 | ||||
Net income before income tax expense | 176,584 | 228,655 | 216,271 | 242,693 | 260,488 | ||||
Income tax expense | 35,603 | 32,829 | 41,756 | 58,295 | 51,798 | ||||
Net income | 140,981 | 195,826 | 174,515 | 184,398 | 208,690 | ||||
Less: net income attributable to noncontrolling interests | 556 | 499 | 426 | 595 | 461 | ||||
Net income attributable to BBVA Compass Bancshares, Inc. | $ 140,425 | $ 195,327 | $ 174,089 | $ 183,803 | $ 208,229 | ||||
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SOURCE BBVA Compass
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