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

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8-K - 8-K - BBVA USA Bancshares, Inc.	bbvacompassq120148k.htm

Exhibit 99.1

Robust loan demand drives balance sheet growth

BBVA Compass Bancshares, Inc. reports first quarter 2014 earnings of $114 million


•	Total loans end the quarter at $52.8 billion, up 15 percent from prior year levels


•	Total deposits increase 9 percent to $57.1 billion, driven by a 19 percent increase in noninterest bearing deposits


•	Key credit quality indicators continue to strengthen; nonperforming asset ratio drops to 0.95 percent from 1.93 percent, net charge-off ratio falls to 0.24 percent


•	Stress tests results reflect strong capital position; regulatory capital ratios remain significantly above “well-capitalized” guidelines

HOUSTON, April 30, 2014 - BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income attributable to shareholder of $114 million for the first quarter of 2014. This represented a 4 percent increase from the $110 million earned in the first quarter of 2013 and a 66 percent increase from the $69 million earned in the fourth quarter of 2013. Return on average assets and return on average tangible equity for the first quarter of 2014 were 0.64 percent and 7.18 percent, respectively.

“The strong balance sheet growth BBVA Compass delivered in the first quarter reflects the strength of our franchise, our relentless focus on our customers and our ability to quickly adapt our products and services to meet their changing needs,” said Manolo Sánchez, chairman and CEO of BBVA Compass. “Momentum gained throughout 2013 continued as total loans increased 15 percent, fueled primarily by robust C&I demand. Deposit growth was also healthy, particularly noninterest bearing deposits which increased 19 percent.”

Sánchez noted that with the low-interest rate environment continuing to impact revenue growth throughout the financial industry, improving operational efficiencies and disciplined expense management are priorities. Accordingly, total noninterest expenses declined 5 percent year-over-year. Credit quality metrics experienced further improvement as the nonperforming asset ratio dropped to 0.95 percent and net charge-offs as a percentage of average loans fell to 0.24 percent.

The announcement in late March that the Federal Reserve didn't object to BBVA Compass Bancshares, Inc.'s capital plan, and the acquisition of Portland, Ore.-based digital banking service pioneer Simple were among the highlights of the quarter, Sánchez said. “The recently completed stress tests are further confirmation of our strong capital position, our ability to generate retained earnings and our capacity to absorb significant stress,” he said. “At the same time, we also recognize the rapid technology-driven change that is transforming the financial services industry. Simple has created a customer experience unmatched in the digital banking world, and its acquisition is another example of our commitment to innovation and to providing our customers the ability to bank anytime, anywhere.”



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 Compass

BBVA Compass Bancshares, Inc. is a Sunbelt-based bank holding company whose lead subsidiary, BBVA Compass, operates 684 branches, including 352 in Texas, 89 in Alabama, 78 in Arizona, 62 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 under the Investor Relations tab at www.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.

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 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 28, 2014.

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

	Three Months
	Ended March 31
	2014			2013			% Change
EARNINGS SUMMARY
Net interest income	$	495,299		$	522,946		(5	)%
Noninterest income [a]	203,352			191,529			6
Total revenue [a]	698,651			714,475			(2	)
Investment securities gain, net	16,434			14,955			10
Loss on prepayment of FHLB advances	(458		)	(1,107		)	(59	)
Provision for loan losses	37,266			19,615			90
Noninterest expense	518,867			545,665			(5	)
Pretax income	158,494			163,043			(3	)
Income tax expense	43,567			52,507			(17	)
Net income	114,927			110,536			4
Net income attributable to noncontrolling interests	453			393			15
Net income attributable to shareholder	$	114,474		$	110,143		4

SELECTED RATIOS
Return on average assets	0.64		%	0.64		%
Return on average tangible equity [b]	7.18			7.47
Average common equity to average assets	15.83			15.96
Average loans to average total deposits	94.08			87.7
Tier I capital ratio	11.52			11.86
Total capital ratio	13.63			14.44
Leverage ratio	9.88			9.48

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

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

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

	Average for Three Months						Ending Balance
	Ended March 31						March 31
	2014		2013		% Change		2014		2013		% Change
BALANCE SHEET HIGHLIGHTS
Total loans	$	51,943,121	$	45,656,547	14	%	$	52,795,787	$	45,786,302	15	%
Total investment securities	10,196,527		10,206,331		—		10,027,118		10,392,900		(4	)
Earning assets	62,245,698		55,994,068		11		62,930,076		56,304,430		12
Total assets	73,359,144		69,855,226		5		74,957,227		69,745,346		7
Noninterest bearing demand deposits	15,652,987		13,753,943		14		16,322,699		13,688,429		19
Interest bearing transaction accounts	27,073,002		25,890,620		5		27,987,795		26,317,652		6
Total transaction accounts	42,725,989		39,644,563		8		44,310,494		40,006,081		11
Total deposits	55,209,690		52,057,560		6		57,085,210		52,378,931		9
Shareholders' equity	11,615,847		11,148,896		4		11,729,834		11,181,732		5

[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)

				2013
	March 31			December 31			September 30			June 30			March 31
NONPERFORMING ASSETS
Nonaccrual loans	$	388,597		$	441,718		$	543,902		$	589,468		$	683,684
Loans 90 days or more past due [a]	83,490			82,814			98,035			121,215			127,507
TDRs 90 days or more past due	204			1,317			739			363			139
Total nonperforming loans [b]	472,291			525,849			642,676			711,046			811,330
Other real estate owned, net (OREO)	25,817			23,228			41,493			52,798			69,543
Other repossessed assets	3,313			3,360			$	3,896		$	3,224		$	4,511
Total nonperforming assets	$	501,421		$	552,437		$	688,065		$	767,068		$	885,384

TDRs accruing and past due less than 90 days	$	202,075		$	208,391		$	225,961		$	243,009		$	246,712

Covered loans [c]	701,158			734,190			832,884			915,755			1,142,321
Covered nonperforming loans [c]	63,664			62,038			76,301			99,480			102,876
Covered nonperforming assets [c]	3,836			4,113			13,319			19,422			23,602

Total nonperforming loans as a % of loans	0.89		%	1.03		%	1.30		%	1.49		%	1.77		%
Total nonperforming loans as a % of loans, excluding covered loans	0.78			0.93			1.16			1.31			1.59
Total nonperforming assets as a % of loans and OREO	0.95			1.09			1.39			1.61			1.93
Total nonperforming assets as a % of loans and OREO, excluding covered assets	0.83			0.97			1.23			1.39			1.70

[a] Excludes loans classified as trouble debt restructuring (TDRs).

[b] Includes loans held for sale.

[c] Covered assets includes loans and OREO acquired from the FDIC subject to loss sharing agreements.



	Three Months Ended
	2014				2013
		March 31			December 31			September 30			June 30			March 31
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period		$	700,719		$	717,937		$	723,511		$	786,018		$	802,853
Net charge-offs (NCO)		30,320			43,378			43,108			86,744			36,450
Provision for loan losses		37,266			26,160			37,534			24,237			19,615
Balance at end of period		$	707,665		$	700,719		$	717,937		$	723,511		$	786,018

Allowance for loan losses as a % of total loans		1.34		%	1.38		%	1.45		%	1.52		%	1.72		%
Allowance for loan losses as a % of nonperforming loans [a]		149.84			133.25			111.71			101.75			96.88
Allowance for loan losses as a % of nonperforming assets [a]		141.13			126.84			104.34			94.32			88.78

Annualized as a % of average loans:
NCO - QTD		0.24			0.34			0.35			0.74			0.32
NCO - YTD		0.24			0.44			0.47			0.54			0.32

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

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

	Three Months Ended March 31
	2014							2013
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	51,943,121		$	520,592	4.06	%	$	45,656,547		$	548,023	4.87	%
Investment securities held to maturity	1,505,398			10,373		2.79		1,491,477			10,853		2.95
Investment securities available for sale [a]	8,652,584			50,994		2.39		8,521,274			49,148		2.34
Other earning assets	106,050			566		2.16		131,190			780		2.41
Total earning assets [a]	62,207,153			582,525		3.80		55,800,488			608,804		4.42
Allowance for loan losses	(702,748		)					(800,282		)
Unrealized gain (loss) on securities available for sale	38,545							193,580
Other assets	11,816,194							14,661,440
Total assets	$	73,359,144						$	69,855,226

Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	7,491,112		2,997		0.16		$	6,832,762		2,834		0.17
Savings and money market accounts	19,581,890			15,666		0.32		19,057,858			21,342		0.45
Certificates and other time deposits	12,360,560			34,491		1.13		12,283,729			32,155		1.06
Foreign office deposits	123,141			62		0.20		129,268			80		0.25
Total interest bearing deposits	39,556,703			53,216		0.55		38,303,617			56,411		0.60
FHLB and other borrowings	4,289,004			16,364		1.55		4,221,034			15,792		1.52
Federal funds purchased and securities sold under agreement to repurchase	941,171			500		0.22		1,109,300			580		0.21
Other short-term borrowings	12,553			26		0.84		10,881			72		2.68
Total interest bearing liabilities	44,799,431			70,106		0.63		43,644,832			72,855		0.68
Noninterest bearing deposits	15,652,987							13,753,943
Other noninterest bearing liabilities	1,290,879							1,307,555
Total liabilities	61,743,297							58,706,330
Shareholders' equity	11,615,847							11,148,896
	$	73,359,144						$	69,855,226

Net interest income/ net interest spread				512,419		3.17	%				535,949		3.74	%
Net yield on earning assets						3.34	%						3.90	%

Total taxable equivalent adjustment				17,120							13,003

Net interest income				$	495,299						$	522,946

[a] Excludes adjustment for market valuation.

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

	Three Months								Three Months Ended
	Ended March 31								2014			2013
	2014			2013			% Change		March 31			December 31			September 30		June 30		March 31
NONINTEREST INCOME
Service charges on deposit accounts	$	53,391		$	55,488		(4	)%	$	53,391		$	56,812		$	54,229	$	54,884	$	55,488
Card and merchant processing fees	24,304			24,624			(1	)	24,304			25,320			26,132		26,113		24,624
Retail investment sales	26,564			24,379			9		26,564			25,552			22,034		25,311		24,379
Asset management fees	10,758			10,069			7		10,758			9,796			10,438		10,636		10,069
Corporate and correspondent investment sales	8,656			9,396			(8	)	8,656			8,720			8,011		9,547		9,396
Mortgage banking income	4,276			11,470			(63	)	4,276			3,178			7,610		13,141		11,470
Bank owned life insurance	3,967			4,405			(10	)	3,967			4,846			4,222		4,274		4,405
Other income	71,436			51,698			38		71,436			56,850			78,309		64,150		51,698
	203,352			191,529			6		203,352			191,074			210,985		208,056		191,529
Investment securities gain, net	16,434			14,955			10		16,434			(1,659		)	—		18,075		14,955
Gain (loss) on prepayment of FHLB and other borrowings	(458		)	(1,107		)	(59	)	(458		)	—			—		22,882		(1,107		)
Total noninterest income	$	219,328		$	205,377		7		$	219,328		$	189,415		$	210,985	$	249,013	$	205,377

NONINTEREST EXPENSE
Salaries, benefits, and commissions	$	262,569		$	251,323		4		$	262,569		$	261,643		$	244,373	$	247,905	$	251,323
FDIC indemnification expense	31,618			86,307			(63	)	31,618			55,453			55,064		70,335		86,307
Equipment	53,738			47,615			13		53,738			59,070			50,483		50,891		47,615
Professional services	46,399			39,274			18		46,399			58,204			44,195		49,729		39,274
Net occupancy	38,957			37,894			3		38,957			40,115			39,257		40,471		37,894
Marketing	8,524			9,068			(6	)	8,524			9,212			9,146		9,926		9,068
Communications	6,347			6,811			(7	)	6,347			7,392			7,080		4,682		6,811
Amortization of intangibles	12,534			16,040			(22	)	12,534			14,305			14,884		15,462		16,040
Other expense	58,181			51,333			13		58,181			71,277			57,657		65,299		51,333
Total noninterest expense	$	518,867		$	545,665		(5	)	$	518,867		$	576,671		$	522,139	$	554,700	$	545,665

BBVA USA Bancshares, Inc. - FORM 8-K - EX-99.1 - EXHIBIT - April 30, 2014

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BBVA USA Bancshares, Inc. Reports