BBVA USA Bancshares, Inc. - FORM 8-K - EX-99.1

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8-K - 8-K - BBVA USA Bancshares, Inc.	a8-kbbvacompassearningsrel.htm

Exhibit 99.1

BBVA Compass originates more than $16.4 billion of new loans

BBVA Compass Bancshares, Inc. reports earnings for full-year 2013 of $418 million


◦	Total loans end year at $50.8 billion, up 12 percent from prior year levels


◦	Total deposits increase to $54.4 billion; led by a 7 percent increase in noninterest bearing deposits


◦	Sound risk profile further strengthened; nonperforming asset ratio drops to 1.09 percent from 2.07 percent, net charge-off ratio declines to 0.44 percent


◦	Capital position remains strong; regulatory capital ratios continue to significantly exceed “well-capitalized” guidelines

HOUSTON, Feb 4, 2014 - BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income attributable to shareholder for full-year 2013 of $418 million compared to $477 million for 2012. Return on average assets and return on average tangible equity for full-year 2013 were 0.60 percent and 6.77 percent, respectively.

“Despite the headwinds caused by the prolonged low interest-rate environment, BBVA Compass delivered robust balance sheet growth,” said Manolo Sánchez, chairman and CEO of BBVA Compass. “Total loans increased 12 percent as we originated more than $16.4 billion of new loans for our customers. Deposit growth was also solid, led by a 7 percent increase in noninterest bearing deposits.”

Sánchez said the growth did not come at the expense of maintaining a sound risk profile, as key credit quality metrics showed marked improvement. The nonperforming asset ratio dropped to 1.09 percent from 2.07 percent at year-end 2012. At the same time, net charge-offs as a percentage of average loans decreased to 0.44 percent compared to 0.63 percent in 2012.

“Equally important, BBVA Compass achieved these results while significantly upgrading our technology platform and digital distribution channels,” Sánchez said. “As economic conditions continue to improve, we believe BBVA Compass is well-positioned given our ability to provide our customers with real-time banking, our capacity to quickly respond with products designed to meet the evolving needs of our customers and our complete line of mobile banking apps.”

On November 22, 2013, BBVA Compass filed a Registration Statement on Form 10 with the United States Securities and Exchange Commission (SEC). An amended Form 10 was subsequently filed with the SEC on January 21, 2014. The Registration Statement on Form 10, as amended, is available through the public website of the SEC at www.sec.gov. Additional financial information on BBVA Compass can be found on our website at www.bbvacompass.com, under the About BBVA Compass tab, by clicking on Investor Relations.



Contact details:
Jena Moreno		Ed Bilek
Corporate Communications		Investor Relations
Tel. 713.831.5867		Tel. 205.297.3331
jena.moreno@bbvacompass.com		ed.bilek@bbvacompass.com

About BBVA Group

BBVA Compass Bancshares, Inc., is a wholly owned subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a customer-centric global financial services group founded in 1857. The Group has a solid position in Spain, is the largest financial institution in Mexico and has leading franchises in South America and the Sunbelt region of the United States. Its diversified business is geared toward high-growth markets and relies on technology as a key sustainable competitive advantage. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies the best practices. The Group is present in the main sustainability indexes. More information about the BBVA Group can be found at www.bbva.com.

About BBVA Compass

BBVA Compass Bancshares, Inc. is a Sunbelt-based bank holding company whose lead subsidiary, BBVA Compass, operates 685 branches, including 350 in Texas, 90 in Alabama, 78 in Arizona, 64 in California, 45 in Florida, 38 in Colorado and 20 in New Mexico. BBVA Compass ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (5th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration and was recently awarded the 2013 Celent Model Bank Award for its new core banking platform. Additional information about BBVA Compass can be found at www.bbvacompass.com.

Forward-Looking Statements

Certain statements in this press release may contain forward-looking statements about the Company and its industry that involve substantial risks and uncertainties. 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. For further information regarding risks and uncertainties associated with the Company’s business, please refer to the “Risk Factors” section of the Company’s Registration Statement on Form 10.

BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands)

	Three Months								Year
	Ended December 31								Ended December 31
	2013			2012			% Change		2013		2012		% Change
EARNINGS SUMMARY
Net interest income	$	507,509		$	588,429		(14	)%	$	2,042,681	$	2,229,982	(8	)%
Noninterest income [a]	191,074			198,717			(4	)	801,644		798,857		—
Total revenue [a]	698,583			787,146			(11	)	2,844,325		3,028,839		(6	)
Investment securities gain/(losses), net	(1,659		)	4,915			(134	)	31,371		12,832		144
Gain on prepayment of FHLB advances	—			(141		)	(100	)	21,775		38,359		(43	)
Provision for loan losses	26,160			2,761			NM		107,546		29,471		265
Noninterest expense	576,671			645,314			(11	)	2,199,175		2,351,847		(6	)
Pretax income	94,093			143,845			(35	)	590,750		698,712		(15	)
Income tax expense	24,787			47,276			(48	)	170,820		219,701		(22	)
Net income	69,306			96,569			(28	)	419,930		479,011		(12	)
Net income attributable to noncontrolling interests	486			588			(17	)	2,094		2,138		(2	)
Net income attributable to shareholder	68,820			95,981			(28	)	417,836		476,873		(12	)

SELECTED RATIOS
Return on average assets	0.38			0.56					0.60		0.72
Return on average tangible equity [b]	6.77			8.40					6.77		8.40
Average common equity to average assets	15.94			16.10					16.12		16.41
Average loans to average total deposits	93.96			89.11					91.26		90.87
Tier I capital ratio	11.62			11.68					11.62		11.68
Total capital ratio	13.74			14.28					13.74		14.28
Leverage ratio	9.87			9.43					9.87		9.43

BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands)

	Average for Three Months						Average for Year						Ending Balance
	Ended December 31						Ended December 31						December 31
	2013		2012		% Change		2013		2012		% Change		2013		2012		% Change
BALANCE SHEET HIGHLIGHTS
Total loans	$	50,506,422	$	45,188,234	12	%	$	47,959,849	$	44,118,556	9	%	$	50,814,125	$	45,333,608	12	%
Total investment securities	9,921,999		9,577,602		4		10,100,601		9,792,547		3		9,832,281		9,496,359		4
Earning assets	60,532,456		54,877,571		10		58,197,813		54,008,583		8		60,726,001		54,956,584		10
Total assets	72,099,576		68,848,414		5		70,309,637		66,468,815		6		71,965,476		69,236,695		4
Noninterest bearing demand deposits	15,492,506		14,635,913		6		14,586,725		13,854,155		5		15,377,844		14,436,539		7
Interest bearing transaction accounts	26,298,335		23,965,650		10		25,961,989		23,243,133		12		26,969,845		24,990,104		8
Total transaction accounts	41,790,841		38,601,563		8		40,548,714		37,097,288		9		42,347,689		39,426,643		7
Total deposits	53,755,937		50,708,703		6		52,553,744		48,549,780		8		54,437,490		51,642,778		5
Shareholders' equity	11,491,753		11,082,098		4		11,337,388		10,906,123		4		11,487,759		11,083,573		4

[a] Excludes net loss on sales of investment securities and gain on prepayment of FHLB advances.

[b] Excludes amortization of intangibles, net of tax, and intangible assets.

BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands)

	Year to Date
	2013												2012
	December 31			September 30			June 30			March 31			December 31
NONPERFORMING ASSETS
Nonaccrual loans	$	441,718		$	543,902		$	589,468		$	683,684		$	727,776
Loans 90 days or more past due, including TDRs	84,131			98,774			121,578			127,646			141,867
Total nonperforming loans	525,849			642,676			711,046			811,330			869,643
Other real estate, net	23,228			41,493			52,798			69,543			68,568
Other repossessed assets	3,360			3,896			3,224			4,511			3,890
Total nonperforming assets	$	552,437		$	688,065		$	767,068		$	885,384		$	942,101

Renegotiated loans	208,391			225,961			243,009			246,712			243,082
Total nonperforming loans as a % of loans	1.03		%	1.30		%	1.49		%	1.77		%	1.92		%
Total nonperforming assets as a % of loans and ORE	1.09		%	1.39		%	1.61		%	1.93		%	2.07		%



	Three Months Ended
	2013												2012
	December 31			September 30			June 30			March 31			December 31
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	717,937		$	723,511		$	786,018		$	802,853		$	903,833
Net charge-offs (NCO)	43,378			43,108			86,744			36,450			103,741
Allowance transferred	—			—			—			—			—
Provision for loan losses	26,160			37,534			24,237			19,615			2,761
Balance at end of period	$	700,719		$	717,937		$	723,511		$	786,018		$	802,853

Allowance for loan losses as a % of total loans	1.38		%	1.45		%	1.52		%	1.72		%	1.77		%
Allowance for loan losses as a % of nonperforming loans [a]	133.25			111.71			101.75			96.88			92.32
Allowance for loan losses as a % of nonperforming assets	126.84			104.34			94.32			88.78			85.22

Annualized as a % of average loans:
NCO - QTD	0.34			0.35			0.74			0.32			0.91
NCO - YTD	0.44			0.47			0.54			0.32			0.63

[a] Includes loans held for sale that are on nonacrrual status.

BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands)

	Three Months Ended December 31
	2013							2012
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	50,506,422		$	535,388	4.21	%	$	45,188,234		$	611,602	5.37	%
Investment securities held to maturity	1,535,107			10,720		2.77		1,506,190			10,432		2.75
Investment securities available for sale [a]	8,352,632			46,739		2.22		7,826,835			49,744		2.52
Other earning assets	104,035			615		2.35		111,735			674		2.39
Total earning assets [a]	60,498,196			593,462		3.89		54,632,994			672,452		4.88
Allowance for loan losses	(717,913		)					(878,045		)
Unrealized gain (loss) on securities available for sale	34,260							244,577
Other assets	12,285,033							14,848,888
	$	72,099,576						$	68,848,414

Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts	$	26,298,335		18,719		0.28		$	23,965,650		23,334		0.39
Time deposits	4,023,853			10,931		1.08		3,979,043			10,239		1.02
Certificates of deposit of $100M or more [a]	7,941,243			22,229		1.11		8,128,097			20,801		1.02
Federal funds purchased and securities sold under agreement to repurchase	964,386			505		0.21		1,125,632			638		0.22
Other short-term borrowings	12,916			31		0.95		8,353			39		1.85
FHLB and other borrowings [a]	4,416,532			17,205		1.55		4,438,947			16,586		1.48
Total interest bearing liabilities [a]	43,657,265			69,620		0.63		41,645,722			71,637		0.68
Net interest spread				523,842		3.26	%				600,815		4.20	%
Noninterest bearing demand deposits	15,492,506							14,635,913
Other liabilities	1,458,052							1,484,681
Shareholders' equity	11,491,753							11,082,098
	$	72,099,576						$	68,848,414
Net yield on earning assets						3.44	%						4.36	%

Taxable equivalent adjustment:
Loans				11,114							7,920
Investment securities held to maturity				3,220							3,117
Investment securities available for sale				1,997							1,346
Other earning assets				2							4
Total taxable equivalent adjustment				16,333							12,387

Net interest income				$	507,509						$	588,428

[a] Excludes adjustment for market valuation.

BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands)

	Year Ended December 31
	2013							2012
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	47,959,849		$	2,149,731	4.48	%	$	44,118,556		$	2,268,077	5.14	%
Investment securities held to maturity	1,539,945			43,467		2.82		1,416,202			40,828		2.88
Investment securities available for sale [a]	8,462,224			185,624		2.19		8,134,694			225,839		2.78
Other earning assets	137,363			3,171		2.31		97,480			2,629		2.70
Total earning assets [a]	58,099,381			2,381,993		4.10		53,766,932			2,537,373		4.72
Allowance for loan losses	(752,801		)					(964,101		)
Unrealized gain (loss) on securities available for sale	98,432							241,651
Other assets	12,864,625							13,424,333
	$	70,309,637						$	66,468,815

Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts	$	25,961,989		83,237		0.32		$	23,243,133		78,183		0.34
Time deposits	4,072,550			43,902		1.08		3,890,096			40,022		1.03
Certificates of deposit of $100M or more [a]	7,932,480			84,961		1.07		7,562,396			74,439		0.98
Federal funds purchased and securities sold under agreement to repurchase	979,759			2,082		0.21		1,226,301			2,783		0.23
Other short-term borrowings	12,739			118		0.93		15,618			113		0.72
FHLB and other borrowings [a]	4,156,172			66,275		1.59		4,304,107			66,014		1.53
Total interest bearing liabilities [a]	43,115,689			280,575		0.65		40,241,651			261,554		0.65
Net interest spread				2,101,418		3.45	%				2,275,819		4.07	%
Noninterest bearing demand deposits	14,586,725							13,854,155
Other liabilities	1,269,835							1,466,886
Shareholders' equity	11,337,388							10,906,123
	$	70,309,637						$	66,468,815
Net yield on earning assets						3.62	%						4.23	%

Taxable equivalent adjustment:
Loans				38,571							28,916
Investment securities held to maturity				12,835							11,422
Investment securities available for sale				7,323							5,486
Other earning assets				8							13
Total taxable equivalent adjustment				58,737							45,837

Net interest income				$	2,042,681						$	2,229,982

[a] Excludes adjustment for market valuation.

BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands)

	Year						Three Months Ended
	Ended December 31						2013										2012
	2013		2012		% Change		December 31			September 30		June 30		March 31			December 31
NONINTEREST INCOME
Service charges on deposit accounts	$	221,413	$	254,675	(13	)%	$	56,812		$	54,229	$	54,884	$	55,488		$	61,507
Card and merchant processing fees	102,189		101,540		1		25,320			26,132		26,113		24,624			25,311
Insurance commissions	753		9,469		(92	)	192			210		183		168			201
Retail investment sales	97,276		97,504		—		25,552			22,034		25,311		24,379			23,547
Asset management fees	40,939		37,848		8		9,796			10,438		10,636		10,069			9,384
Corporate and correspondent investment sales	35,674		38,014		(6	)	8,720			8,011		9,547		9,396			13,487
Bank owned life insurance	17,747		20,335		(13	)	4,846			4,222		4,274		4,405			4,877
Other income	285,653		239,472		19		59,836			85,709		77,108		63,000			60,403
	801,644		798,857		—		191,074			210,985		208,056		191,529			198,717
Investment securities gain/(losses), net	31,371		12,832		144		(1,659		)	—		18,075		14,955			4,915
Gain on prepayment of FHLB advances	21,775		38,359		(43	)	—			—		22,882		(1,107		)	(141		)
Total noninterest income	$	854,790	$	850,048	1		$	189,415		$	210,985	$	249,013	$	205,377		$	203,491

NONINTEREST EXPENSE
Salaries and benefits	$	1,005,244	$	1,003,010	—		$	261,643		$	244,373	$	247,905	$	251,323		$	247,318
FDIC indemnification expense	267,159		372,496		(28	)	55,453			55,064		70,335		86,307			141,499
Equipment expense	208,059		173,459		20		59,070			50,483		50,891		47,615			51,536
Net occupancy expense	157,737		153,429		3		40,115			39,257		40,471		37,894			40,271
Professional services	191,402		176,266		9		58,204			44,195		49,729		39,274			54,997
Marketing expense	37,352		28,233		32		9,212			9,146		9,926		9,068			6,407
Communications expense	25,965		30,349		(14	)	7,392			7,080		4,682		6,811			7,629
Amortization of intangibles	60,691		91,746		(34	)	14,305			14,884		15,462		16,040			23,740
Other expense	245,566		322,859		(24	)	71,277			57,657		65,299		51,333			71,917
Total noninterest expense	$	2,199,175	$	2,351,847	(6	)	$	576,671		$	522,139	$	554,700	$	545,665		$	645,314

BBVA USA Bancshares, Inc. - FORM 8-K - EX-99.1 - February 4, 2014

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BBVA USA Bancshares, Inc. Reports