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

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8-K - 8-K - BBVA USA Bancshares, Inc.	bbvacompass063020168k.htm

Exhibit 99.1

Second quarter net income of $123 million

BBVA Compass reports net income of $162 million for the first half of 2016


•	Loan growth solid while deposit generation remains robust


▪	Average total loans of $62.3 billion up $3.0 billion, or 5 percent, from year ago levels


◦	Newly funded customer loans of $7.6 billion in the first half of 2016


▪	Average total deposits of $68.0 billion up $5.6 billion, or 9 percent, from prior year


◦	Deposit growth fueled by 10 percent increase in noninterest bearing deposits


◦	Noninterest bearing deposits represent 30 percent of total deposits


•	Total revenue up 1 percent, led by 2 percent increase in net interest income


•	Noninterest income totals $257 million, up $12 million from 1Q16 levels


•	Expenses well contained in the quarter, drop $51 million from 1Q16


•	Credit quality metrics remain sound; allowance to loan ratio at 1.37 percent


▪	Net charge-off ratio at 39 basis points for the first half of 2016


▪	Provision expense for the quarter exceeded net charge-offs by $21 million


▪	Nonperforming loan ratio at 1.76 percent; 0.77 percent excluding energy portfolio


•	Stress tests results provide further evidence of strong capital position


▪	Capital plan and capital actions submitted as part of the Comprehensive Capital Analysis and Review (CCAR) received no-objection from Federal Reserve


▪	Projected regulatory capital ratios exceeded the applicable regulatory minimums under the Dodd-Frank Act Stress Test (DFAST) hypothetical supervisory severely adverse scenario


▪	Regulatory capital ratios¹ significantly exceed “well-capitalized” guidelines


▪	Common Equity Tier 1 capital ratio (phased-in)¹ at 10.79 percent

HOUSTON, July 29, 2016 - BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $162 million for the first six months of 2016 compared to $286 million earned during the first six months of 2015. Return on average assets and return on average tangible equity² for the first six months of 2016 were 0.35 percent and 4.27 percent, respectively.

Net income for the second quarter of 2016 was $123 million compared to $39 million earned during the first quarter of 2016 and $140 million for the second quarter of 2015. Return on average assets and return on average tangible equity² for the second quarter of 2016 were 0.53 percent and 6.45 percent, respectively.

“Our results for the second quarter reflect solid loan growth, robust deposit generation, improved growth from our fee-based businesses and strong expense management discipline,” said Manolo Sánchez, chairman and CEO of BBVA Compass. “At the same time, we are focused on being at the forefront of the digital change sweeping our industry so we can better serve our clients. Euromoney recently recognized us as the Best Digital Bank in North America, in fact, a testament to our vision and the culture we’ve instilled in which everyone on the team has the power to move our transformation forward.”

“While the low interest rate environment continues to hamper revenue growth in our industry, our focus is on delivering targeted balance sheet growth,” Sánchez noted. “Average total loans for the first half of the year reached $62.3 billion, an increase of $3.0 billion or 5 percent, and we funded more than $7.6 billion in customer loans. Loan growth was fully funded by deposit generation as average deposits totaled $68.0 billion, an increase of $5.6 billion or 9 percent, led by a 10 percent increase in average noninterest bearing deposits.”

Total revenue increased 1 percent from prior year levels for both the three and six month periods. Targeted loan growth coupled with strong deposit growth resulted in a 2 percent increase in net interest income during both periods. The percent net interest margin ended the quarter at 2.66 percent, down 3 basis points from second quarter 2015 levels and 7 basis points from first quarter 2016 levels.

Noninterest income for the quarter totaled $257 million, a decrease of 2 percent compared to $261 million recorded in the second quarter of 2015. In comparison to first quarter 2016 levels, noninterest income increased $12 million as the growth was widespread between most major fee-based businesses. Improved activity levels and market conditions during the quarter were a primary driver of the rebound in investment banking and advisory fees, and corporate and correspondent investment sales. Disciplined expense management helped contain expenses as total noninterest expenses declined $51 million compared to first quarter 2016 levels and were flat compared to second quarter 2015 levels.

Credit quality metrics remained sound despite continued pressure on the energy portfolio. Provision expense for the quarter totaled $87 million compared to $113 million in the first quarter of 2016 and exceeded net charge-offs by $21 million. The allowance for loan losses as a percentage of total loans ended the quarter at 1.37 percent, up from 1.32 percent at the end of the first quarter this year and 1.20 percent in the second quarter a year ago. Nonperforming loans as a percentage of total loans were 1.76 percent compared to 1.41 percent at the end of the first quarter, primarily reflecting the additional reclassification of certain energy credits.

“BBVA Compass is steadfast in its commitment to maintaining sound underwriting standards and a strong risk profile, and the proactive actions we have taken thus far to address our energy portfolio reflect this commitment,” Sánchez said. “Total energy loans declined $419 million from first quarter levels and now represent 6 percent of our total loan portfolio, down from 6.7 percent at the end of the first quarter. At the same time, all of our other loan portfolios continue to perform within our expectations. Excluding energy loans, our nonperforming loan ratio was 0.77 percent and net charge-offs were 27 basis points.”

“The recently completed stress tests are also further confirmation of our strong capital position, our ability to generate retained earnings and our capacity to absorb significant stress,” Sánchez noted. Total shareholder’s equity ended the second quarter of 2016 at $12.7 billion, a 4 percent increase from $12.3 billion at the end of the second quarter of 2015. Each of the company’s regulatory capital ratios remain significantly above “well-capitalized” guidelines. The total capital ratio ended the quarter at 13.66 percent¹ compared to 13.29 percent a year ago and the CET1 ratio rose to 10.79 percent¹.

During the second quarter, BBVA Compass completed the purchase of four subsidiaries - Bancomer Transfer Services, Bancomer Payment Services, Bancomer Foreign Exchange and Bancomer Financial Services - from BBVA Bancomer USA, Inc. that engage in money transfer services. BBVA Bancomer USA, Inc. is a wholly owned subsidiary of BBVA Bancomer, S.A. (Mexico) and ultimately a wholly-owned subsidiary of BBVA. This transaction was accounted for as a merger of entities under common control and, accordingly, prior period financial information has been retrospectively adjusted to include their historical activity.

In recognizing BBVA Compass as the Best Digital Bank in North America, global finance magazine Euromoney recognized the strides the bank has made in mobile and lauded its efforts to transform its technology and culture in pursuit of exceptional client experiences. The publication also noted the bank’s embrace of disrupters and cited its collaborations with Dwolla, FutureAdvisor and eCredable.

^{________________________________}

¹ Regulatory capital ratios at June 30, 2016, are estimated

² Average tangible equity is 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.



Contact details:
Christina Anderson		Ed Bilek
Corporate Communications		Investor Relations
Tel. 205.524.5214		Tel. 205.297.3331
christina.anderson@bbva.com		ed.bilek@bbva.com

About BBVA Compass

BBVA Compass Bancshares, Inc. is a Sunbelt-based bank holding company whose principal subsidiary, BBVA Compass, operates 674 branches, including 345 in Texas, 89 in Alabama, 75 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 (4th). BBVA Compass was recently named Best Digital Bank in North America by global finance magazine Euromoney and the best regional bank in the South and West, as well as earning best mobile app, in Money magazine’s annual list of the Best Bank’s in America. 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 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 is the largest financial institution in Spain and Mexico, and has leading franchises in South America and the Sunbelt region of the United States. It also is the leading shareholder in Garanti, Turkey’s largest bank based on market capitalization. Its diversified business is focused on 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 bbva.com.

On April 6, 2016, BBVA filed its annual report on Form 20-F for the year ended December 31, 2015, with the Securities and Exchange Commission. A copy can be accessed on the BBVA website at http://shareholdersandinvestors.bbva.com/TLBB/tlbb/bbvair/ing/share/adrs/index.jsp. Holders of BBVA’s American Depositary Receipts (ADRs) may request a hard copy of the Form 20-F for the year ended December 31, 2015, including its 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 March 2, 2016, 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,						%
	2016			2015 [d]			Change		2016			2015 [d]			Change
EARNINGS SUMMARY
Net interest income	$	504,238		$	491,983		2		$	1,021,120		$	1,001,014		2
Noninterest income [a]	256,562			260,552			(2	)	501,414			502,343			—
Total revenue [a]	760,800			752,535			1		1,522,534			1,503,357			1
Investment securities gain, net	21,684			27,399			(21	)	30,037			60,231			(50	)
Loss on prepayment of FHLB advances	—			(3,569		)	NM		—			(6,118		)	NM
Provision for loan losses	86,673			46,149			88		199,918			88,180			127
Noninterest expense	541,037			539,487			—		1,133,181			1,078,783			5
Pretax income	154,774			190,729			(19	)	219,472			390,507			(44	)
Income tax expense	32,272			50,335			(36	)	57,703			104,437			(45	)
Net income	122,502			140,394			(13	)	161,769			286,070			(43	)
Net income attributable to noncontrolling interests	518			590			(12	)	1,046			1,247			(16	)
Net income attributable to BBVA Compass Bancshares, Inc.	$	121,984		$	139,804		(13	)	$	160,723		$	284,823		(44	)

SELECTED RATIOS
Return on average assets	0.53		%	0.64		%			0.35		%	0.67		%
Return on average tangible equity [b]	6.45			7.89					4.27			8.15
Average common equity to average assets	13.79			13.97					13.79			14.13
Average loans to average total deposits	91.11			95.41					91.63			95.04
Common equity tier I capital (CET1) [c]	10.79			10.57					10.79			10.57
Tier I capital ratio [c]	11.14			10.63					11.14			10.63
Total capital ratio [c]	13.66			13.29					13.66			13.29
Leverage ratio [c]	8.78			8.74					8.78			8.74
[a] Excludes net gain on sales of investment securities and loss on prepayment of FHLB advances.
[b] Non-GAAP 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.
[d] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc in June 2016.
NM = Not meaningful

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,				%
	2016		2015 [d]		Change	2016		2015 [d]		Change	2016		2015 [d]		Change
BALANCE SHEET HIGHLIGHTS
Total loans	$	62,355,245	$	59,746,217	4	$	62,275,604	$	59,282,211	5	$	61,788,375	$	60,202,842	3
Total investment securities	12,493,595		11,536,999		8	12,488,652		11,461,944		9	12,617,412		11,767,559		7
Earning assets	79,171,032		76,075,375		4	79,117,352		74,889,097		6	78,813,552		77,173,568		2
Total assets	92,440,585		87,978,092		5	92,372,846		86,585,096		7	91,753,156		88,582,887		4
Noninterest bearing demand deposits	20,521,323		18,988,347		8	20,289,233		18,463,906		10	20,132,164		19,048,379		6
Interest bearing transaction accounts	32,975,782		30,727,865		7	32,918,640		31,074,124		6	32,625,540		30,448,569		7
Total transaction accounts	53,497,105		49,716,212		8	53,207,873		49,538,030		7	52,757,704		49,496,948		7
Total deposits	68,441,915		62,622,304		9	67,960,764		62,373,191		9	67,750,318		62,499,444		8
Shareholder's equity	12,751,155		12,291,532		4	12,739,562		12,231,403		4	12,726,996		12,286,343		4

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

	2016						2015
	June 30			March 31			December 31			September 30			June 30
NONPERFORMING ASSETS
Nonaccrual loans [a]	$	1,026,592		$	819,034		$	407,045		$	380,930		$	395,350
Loans 90 days or more past due [b]	60,320			60,490			68,629			73,588			69,710
TDRs 90 days or more past due	998			491			874			678			1,224
Total nonperforming loans [a]	1,087,910			880,015			476,548			455,196			466,284
Other real estate owned, net (OREO)	18,225			17,877			20,862			23,762			20,188
Other repossessed assets	9,380			8,601			8,774			3,331			4,255
Total nonperforming assets	$	1,115,515		$	906,493		$	506,184		$	482,289		$	490,727

TDRs accruing and past due less than 90 days	$	118,222		$	120,316		$	150,038		$	154,397		$	155,592

Covered loans [c]	398,654			423,819			440,961			458,066			473,842
Covered nonperforming loans [c]	33,088			37,476			38,106			43,192			44,664
Covered nonperforming assets [c]	36,321			40,157			40,216			45,569			47,085

Total nonperforming loans as a % of loans	1.76		%	1.41		%	0.78		%	0.75		%	0.77		%
Total nonperforming loans as a % of loans, excluding covered loans	1.72			1.36			0.72			0.68			0.71
Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets	1.80			1.46			0.82			0.79			0.81
Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets, excluding covered assets	1.76			1.40			0.76			0.72			0.74
[a] Includes loans held for sale.
[b] Excludes loans classified as troubled debt restructuring (TDRs).
[c] Covered assets includes loans and OREO acquired from the FDIC subject to loss sharing agreements.



	Three Months Ended
	2016						2015
	June 30			March 31			December 31			September 30			June 30
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	822,440		$	762,673		$	722,122		$	721,471		$	701,864
Net charge-offs (NCO)	66,062			53,478			35,756			28,500			26,542
Provision for loan losses	86,673			113,245			76,307			29,151			46,149
Balance at end of period	$	843,051		$	822,440		$	762,673		$	722,122		$	721,471

Allowance for loan losses as a % of total loans	1.37		%	1.32		%	1.24		%	1.20		%	1.20		%
Allowance for loan losses as a % of nonperforming loans [a]	77.49			93.46			160.04			158.64			154.73
Allowance for loan losses as a % of nonperforming assets [a]	75.58			90.73			150.67			149.73			147.02

Annualized as a % of average loans:
NCO - QTD	0.43			0.35			0.23			0.19			0.18
NCO - YTD	0.39			0.35			0.19			0.18			0.18
[a] Includes loans held for sale that are on nonaccrual status.

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

	June 30, 2016								March 31, 2016								December 31, 2015
	Recorded Investment			Total Commitment			Nonaccrual		Recorded Investment			Total Commitment			Nonaccrual		Recorded Investment			Total Commitment			Nonaccrual
ENERGY PORTFOLIO
Exploration and production	$	1,935,062		$	4,456,062		$	620,612	$	2,140,376		$	5,034,557		$	469,882	$	2,040,748		$	5,186,887		$	91,947
Midstream	1,395,584			3,315,382			21,268		1,541,465			3,426,768			—		1,355,503			3,293,216			—
Drilling oil and support services	270,420			495,563			—		292,769			504,455			—		266,871			554,782			—
Refineries and terminals	131,626			201,399			430		134,211			202,659			475		137,904			211,258			520
Other	—			—			—		42,578			109,413			—		39,200			109,782			—
Total energy portfolio	$	3,732,692		$	8,468,406		$	642,310	$	4,151,399		$	9,277,852		$	470,357	$	3,840,226		$	9,355,925		$	92,467

	June 30, 2016								March 31, 2016								December 31, 2015
	As a % of Energy Loans			As a % of Total Loans					As a % of Energy Loans			As a % of Total Loans					As a % of Energy Loans			As a % of Total Loans
ENERGY PORTFOLIO
Exploration and production	51.8		%	3.1		%			51.6		%	3.4		%			53.2		%	3.4		%
Midstream	37.4			2.3					37.1			2.5					35.3			2.2
Drilling oil and support services	7.3			0.4					7.1			0.5					6.9			0.4
Refineries and terminals	3.5			0.2					3.2			0.2					3.6			0.2
Other	—			—					1.0			0.1					1.0			0.1
Total energy portfolio	100.0		%	6.0		%			100.0		%	6.7		%			100.0		%	6.3		%

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

	Three Months Ended June 30,
	2016							2015 [b]
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	62,355,245		$	575,852	3.71	%	$	59,746,217		$	545,701	3.66	%
Investment securities available for sale [a]	11,208,678			36,519		1.31		10,108,556			49,493		1.96
Investment securities held to maturity	1,265,643			9,754		3.10		1,371,906			10,000		2.92
Other earning assets	4,322,192			17,758		1.65		4,792,159			15,196		1.27
Total earning assets [a]	79,151,758			639,883		3.25		76,018,838			620,390		3.27
Allowance for loan losses	(837,147		)					(704,594		)
Unrealized gain (loss) on securities available for sale	19,274							56,537
Other assets	14,106,700							12,607,311
Total assets	$	92,440,585						$	87,978,092

Liabilities and Shareholder's Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	6,826,950		$	3,848	0.23		$	7,268,321		$	2,888	0.16
Savings and money market accounts	26,148,832			24,758		0.38		23,459,544			21,307		0.36
Certificates and other time deposits	14,852,744			48,280		1.31		12,719,306			40,911		1.29
Foreign office deposits	92,066			47		0.21		186,786			95		0.20
Total interest bearing deposits	47,920,592			76,933		0.65		43,633,957			65,201		0.60
FHLB and other borrowings	4,448,139			19,592		1.77		6,000,934			27,540		1.84
Federal funds purchased and securities sold under agreement to repurchase	680,325			5,434		3.21		884,282			1,702		0.77
Other short-term borrowings	3,975,490			13,932		1.41		4,387,467			15,291		1.40
Total interest bearing liabilities	57,024,546			115,891		0.82		54,906,640			109,734		0.80
Noninterest bearing deposits	20,521,323							18,988,347
Other noninterest bearing liabilities	2,143,561							1,791,573
Total liabilities	79,689,430							75,686,560
Shareholder's equity	12,751,155							12,291,532
Total liabilities and shareholder's equity	$	92,440,585						$	87,978,092

Net interest income/ net interest spread				523,992		2.43	%				510,656		2.47	%
Net yield on earning assets						2.66	%						2.69	%

Total taxable equivalent adjustment				19,754							18,673

Net interest income				$	504,238						$	491,983
[a] Excludes adjustment for market valuation.
[b] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

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

	Six Months Ended June 30,
	2016							2015 [b]
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	62,275,604		$	1,153,074	3.72	%	$	59,282,211		$	1,103,590	3.75	%
Investment securities available for sale [a]	11,199,707			82,803		1.49		10,033,989			99,223		1.99
Investment securities held to maturity	1,279,209			19,592		3.08		1,366,182			19,663		2.90
Other earning assets	4,353,096			36,446		1.68		4,144,942			25,808		1.26
Total earning assets [a]	79,107,616			1,291,915		3.28		74,827,324			1,248,284		3.36
Allowance for loan losses	(810,889		)					(698,100		)
Unrealized gain (loss) on securities available for sale	9,736							61,773
Other assets	14,066,383							12,394,099
Total assets	$	92,372,846						$	86,585,096

Liabilities and Shareholder's Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	6,956,442		$	7,790	0.23		$	7,450,170		$	5,925	0.16
Savings and money market accounts	25,962,198			51,501		0.40		23,623,954			48,205		0.41
Certificates and other time deposits	14,643,322			95,349		1.31		12,667,191			80,556		1.28
Foreign office deposits	109,569			108		0.20		167,970			168		0.20
Total interest bearing deposits	47,671,531			154,748		0.65		43,909,285			134,854		0.62
FHLB and other borrowings	4,756,471			37,604		1.59		5,443,890			46,646		1.74
Federal funds purchased and securities sold under agreement to repurchase	740,284			11,591		3.15		911,894			3,028		0.67
Other short-term borrowings	4,000,459			27,828		1.40		3,772,277			25,539		1.37
Total interest bearing liabilities	57,168,745			231,771		0.82		54,037,346			210,067		0.79
Noninterest bearing deposits	20,289,233							18,463,906
Other noninterest bearing liabilities	2,175,306							1,852,441
Total liabilities	79,633,284							74,353,693
Shareholder's equity	12,739,562							12,231,403
Total liabilities and shareholder's equity	$	92,372,846						$	86,585,096

Net interest income/ net interest spread				1,060,144		2.46	%				1,038,217		2.57	%
Net yield on earning assets						2.69	%						2.80	%

Total taxable equivalent adjustment				39,024							37,203

Net interest income				$	1,021,120						$	1,001,014
[a] Excludes adjustment for market valuation.
[b] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

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

	Six Months								Three Months Ended
	Ended June 30,						%		2016					2015 [a]
	2016			2015 [a]			Change		June 30		March 31 [a]			December 31			September 30		June 30
NONINTEREST INCOME
Service charges on deposit accounts	$	103,346		$	106,974		(3	)	$	51,921	$	51,425		$	54,357		$	54,917	$	53,690
Card and merchant processing fees	61,251			54,894			12		31,509		29,742			28,900			29,024		28,711
Retail investment sales	49,552			51,519			(4	)	26,985		22,567			24,040			26,055		26,373
Investment banking and advisory fees	51,939			67,133			(23	)	28,335		23,604			20,260			17,842		36,799
Money transfer income	50,902			43,834			16		26,477		24,425			24,735			24,868		23,375
Asset management fees	17,191			16,531			4		8,386		8,805			8,745			7,918		8,435
Corporate and correspondent investment sales	14,516			14,243			2		10,103		4,413			9,710			6,047		7,984
Mortgage banking	(2,832		)	20,715			NM		602		(3,434		)	5,989			554		12,556
Bank owned life insurance	8,871			9,182			(3	)	4,455		4,416			5,135			4,345		4,394
Other	146,678			117,318			25		67,789		78,889			67,536			82,414		58,235
	501,414			502,343			—		256,562		244,852			249,407			253,984		260,552
Investment securities gains, net	30,037			60,231			(50	)	21,684		8,353			14,689			6,736		27,399
Loss on prepayment of FHLB and other borrowings, net	—			(6,118		)	NM		—		—			(1,898		)	—		(3,569		)
Total noninterest income	$	531,451		$	556,456		(4	)	$	278,246	$	253,205		$	262,198		$	260,720	$	284,382

NONINTEREST EXPENSE
Salaries, benefits and commissions	$	556,935		$	533,685		4		$	277,166	$	279,769		$	276,647		$	271,143	$	272,071
Professional services	114,768			98,658			16		58,401		56,367			64,450			55,476		51,758
Equipment	119,949			115,897			3		59,508		60,441			57,739			58,414		57,458
Net occupancy	79,271			80,025			(1	)	39,999		39,272			41,304			39,706		40,549
Money transfer expense	33,368			27,502			21		17,768		15,600			16,334			16,514		14,755
Marketing	24,215			21,707			12		11,506		12,709			9,447			10,624		11,619
Communications	10,638			11,248			(5	)	5,463		5,175			5,423			5,856		5,360
Amortization of intangibles	8,187			20,576			(60	)	4,094		4,093			9,125			9,507		9,889
Other	185,850			169,485			10		67,132		118,718			98,226			90,135		76,028
Total noninterest expense	$	1,133,181		$	1,078,783		5		$	541,037	$	592,144		$	578,695		$	557,375	$	539,487
NM = Not meaningful
[a] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015 [a]			2016			2015 [a]
NON-GAAP RECONCILIATION

Computation of Average Tangible Equity:
Total stockholder's equity (average)	$	12,751,155		$	12,291,532		$	12,739,562		12,231,403
Less: Goodwill and other intangibles (average)	5,109,772			5,150,763			5,112,406			5,149,182
Average tangible equity [B]	$	7,641,383		$	7,140,769		$	7,627,156		7,082,221
Net income [A]	$	122,502		$	140,394		$	161,769		$	286,070
Return on average tangible equity ([A]/[B], annualized)	6.45		%	7.89		%	4.27		%	8.15		%
[a] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

BBVA COMPASS BANCSHARES, INC SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) (In Thousands)

	At or Quarter Ended June 30, 2016
	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	$	8,750	$	4,499	$	4,175	$	797,066	$	9,333	$	25,552,413	$	26,376,236	$	31,773
Real estate – construction	1,675		1,195		2,064		1,983		2,650		2,117,823		2,127,390		(1,094		)
Commercial real estate – mortgage	3,495		535		—		62,381		5,603		11,184,061		11,256,075		1,684
Residential real estate – mortgage	51,319		18,866		1,286		109,805		64,341		13,251,401		13,497,018		471
Equity lines of credit	7,279		3,996		1,565		34,043		—		2,418,631		2,465,514		854
Equity loans	4,378		1,214		568		14,254		36,485		456,090		512,989		(19		)
Credit card	5,588		3,768		9,056		—		—		590,475		608,887		8,127
Consumer – direct	10,319		4,670		3,354		540		808		1,070,803		1,090,494		9,924
Consumer – indirect	69,575		17,053		5,324		6,360		—		3,248,374		3,346,686		13,027
Covered loans	5,124		4,115		32,928		160		—		356,327		398,654		1,315
Total loans	$	167,502	$	59,911	$	60,320	$	1,026,592	$	119,220	$	60,246,398	$	61,679,943	$	66,062
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	108,432	$	108,432	$	—



	At or Quarter Ended March 31, 2016
	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	$	17,837	$	9,947	$	3,012	$	568,154	$	9,545	$	26,255,552	$	26,864,047	$	18,057
Real estate – construction	4,345		827		415		5,712		2,664		2,393,548		2,407,511		(302		)
Commercial real estate – mortgage	7,865		829		807		71,889		5,425		10,560,579		10,647,394		22
Residential real estate – mortgage	42,126		18,321		1,507		117,602		65,173		13,345,540		13,590,269		961
Equity lines of credit	8,959		3,779		1,010		33,991		—		2,385,631		2,433,370		2,215
Equity loans	7,027		1,447		443		13,925		37,132		487,593		547,567		606
Credit card	4,876		3,850		9,413		—		—		587,166		605,305		8,190
Consumer – direct	8,239		3,201		2,951		682		868		979,711		995,652		8,711
Consumer – indirect	61,460		11,916		4,149		6,386		—		3,505,845		3,589,756		14,769
Covered loans	5,147		2,152		36,783		693		—		379,044		423,819		249
Total loans	$	167,881	$	56,269	$	60,490	$	819,034	$	120,807	$	60,880,209	$	62,104,690	$	53,478
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	96,784	$	96,784	$	—



	At or Quarter Ended December 31, 2015
	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	$	8,197	$	4,215	$	3,567	$	161,591	$	9,402	$	25,835,402	$	26,022,374	$	3,345
Real estate – construction	2,864		91		421		5,908		2,247		2,342,722		2,354,253		(423		)
Commercial real estate – mortgage	3,843		1,461		2,237		69,953		33,904		10,341,882		10,453,280		1,260
Residential real estate – mortgage	47,323		19,540		1,961		113,234		67,343		13,743,884		13,993,285		1,269
Equity lines of credit	8,263		4,371		2,883		35,023		—		2,369,275		2,419,815		1,382
Equity loans	6,356		2,194		704		15,614		37,108		518,828		580,804		238
Credit card	5,563		4,622		9,718		—		—		607,456		627,359		7,299
Consumer – direct	7,648		3,801		3,537		561		908		920,416		936,871		6,126
Consumer – indirect	73,438		17,167		5,629		5,027		—		3,393,821		3,495,082		14,548
Covered loans	4,862		3,454		37,972		134		—		394,539		440,961		712
Total loans	$	168,357	$	60,916	$	68,629	$	407,045	$	150,912	$	60,468,225	$	61,324,084	$	35,756
Loans held for sale	$	227	$	—	$	—	$	—	$	—	$	70,355	$	70,582	$	—



	At or Quarter Ended September 30, 2015
	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	$	15,300	$	3,930	$	5,202	$	130,370	$	9,635	$	25,471,882	$	25,636,319	$	3,990
Real estate – construction	1,565		117		426		5,712		2,247		2,305,284		2,315,351		(426		)
Commercial real estate – mortgage	4,887		732		5,607		85,975		33,837		10,493,594		10,624,632		437
Residential real estate – mortgage	47,936		15,450		1,230		103,492		71,102		13,658,513		13,897,723		(299		)
Equity lines of credit	8,988		4,675		2,411		33,436		—		2,326,898		2,376,408		2,087
Equity loans	6,485		1,807		985		15,104		37,785		549,982		612,148		384
Credit card	5,949		3,621		8,322		—		—		592,090		609,982		6,675
Consumer – direct	16,433		1,988		2,153		635		469		833,311		854,989		6,194
Consumer – indirect	60,018		12,901		4,213		6,053		—		2,818,418		2,901,603		8,970
Covered loans	4,303		3,347		43,039		153		—		407,224		458,066		488
Total loans	$	171,864	$	48,568	$	73,588	$	380,930	$	155,075	$	59,457,196	$	60,287,221	$	28,500
Loans held for sale	$	416	$	380	$	—	$	—	$	—	$	633,362	$	634,158	$	—



	At or Quarter Ended June 30, 2015
	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	$	18,524	$	7,037	$	3,149	$	147,051	$	9,693	$	24,767,734	$	24,953,188	$	1,869
Real estate – construction	148		512		1,157		7,777		2,212		2,425,025		2,436,831		(2,106		)
Commercial real estate – mortgage	7,916		1,348		2,853		78,569		34,389		10,200,605		10,325,680		671
Residential real estate – mortgage	45,487		14,926		1,703		106,179		71,357		13,963,891		14,203,543		1,487
Equity lines of credit	7,833		4,370		2,515		33,757		—		2,304,225		2,352,700		3,608
Equity loans	5,202		1,553		1,147		16,175		38,998		576,051		639,126		(585		)
Credit card	4,840		3,361		7,672		—		—		576,496		592,369		7,542
Consumer – direct	7,247		2,190		2,176		853		167		767,735		780,368		6,311
Consumer – indirect	47,676		8,895		2,810		4,853		—		3,185,345		3,249,579		7,593
Covered loans	5,930		3,640		44,528		136		—		419,608		473,842		152
Total loans	$	150,803	$	47,832	$	69,710	$	395,350	$	156,816	$	59,186,715	$	60,007,226	$	26,542
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	195,616	$	195,616	$	—

BBVA COMPASS BANCSHARES, INC. BALANCE SHEET (Unaudited) (In Thousands)

	2016						2015 [a]
	June 30			March 31 [a]			December 31			September 30			June 30
Assets:
Cash and due from banks	$	4,829,763		$	5,136,283		$	4,165,880		$	3,949,049		$	3,412,125
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits	319,644			233,411			330,948			479,207			512,244
Cash and cash equivalents	5,149,407			5,369,694			4,496,828			4,428,256			3,924,369
Trading account assets	4,355,025			4,358,533			4,138,132			4,193,506			4,879,125
Investment securities available for sale	11,359,159			11,265,797			11,050,520			10,803,660			10,392,484
Investment securities held to maturity	1,258,253			1,267,953			1,322,676			1,357,801			1,375,075
Loans held for sale	108,432			96,784			70,582			634,158			195,616
Loans	61,679,943			62,104,690			61,324,084			60,287,221			60,007,226
Allowance for loan losses	(843,051		)	(822,440		)	(762,673		)	(722,122		)	(721,471		)
Net loans	60,836,892			61,282,250			60,561,411			59,565,099			59,285,755
Premises and equipment, net	1,290,738			1,297,539			1,322,378			1,310,995			1,316,869
Bank owned life insurance	708,143			704,254			700,285			697,023			698,773
Goodwill	5,043,197			5,043,197			5,043,197			5,060,197			5,060,161
Other intangible assets	23,389			27,483			31,576			40,701			50,208
Other real estate owned	18,225			17,877			20,862			23,762			20,188
Other assets	1,602,296			1,489,428			1,310,091			1,362,262			1,384,264
Total assets	$	91,753,156		$	92,220,789		$	90,068,538		$	89,477,420		$	88,582,887
Liabilities:
Deposits:
Noninterest bearing	$	20,132,164		$	20,416,248		$	19,291,533		$	19,060,137		$	19,048,379
Interest bearing	47,618,154			48,503,973			46,690,233			45,418,270			43,451,065
Total deposits	67,750,318			68,920,221			65,981,766			64,478,407			62,499,444
FHLB and other borrowings	5,098,048			4,383,454			5,438,620			6,216,425			6,778,066
Federal funds purchased and securities sold under agreements to repurchase	386,343			893,786			750,154			639,259			623,400
Other short-term borrowings	4,352,428			3,924,781			4,032,644			4,167,897			4,982,154
Accrued expenses and other liabilities	1,439,023			1,375,370			1,240,645			1,531,704			1,413,480
Total liabilities	79,026,160			79,497,612			77,443,829			77,033,692			76,296,544
Shareholder’s Equity:
Preferred stock	229,475			229,475			229,475			—			—
Common stock — $0.01 par value	2,230			2,230			2,230			2,230			2,230
Surplus	15,022,974			15,152,077			15,160,267			15,237,899			15,237,241
Retained deficit	(2,536,230		)	(2,658,214		)	(2,696,953		)	(2,788,111		)	(2,917,260		)
Accumulated other comprehensive loss	(20,500		)	(31,945		)	(99,336		)	(37,882		)	(64,969		)
Total BBVA Compass Bancshares, Inc. shareholder’s equity	12,697,949			12,693,623			12,595,683			12,414,136			12,257,242
Noncontrolling interests	29,047			29,554			29,026			29,592			29,101
Total shareholder’s equity	12,726,996			12,723,177			12,624,709			12,443,728			12,286,343
Total liabilities and shareholder’s equity	$	91,753,156		$	92,220,789		$	90,068,538		$	89,477,420		$	88,582,887
[a] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

BBVA COMPASS BANCSHARES, INC. INCOME STATEMENTS (Unaudited) (In Thousands)

	Three Months Ended
	2016					2015 [a]
	June 30		March 31 [a]			December 31			September 30		June 30
Interest income:
Interest and fees on loans	$	559,170	$	561,083		$	546,392		$	540,517	$	531,394
Interest on investment securities available for sale	36,442		46,197			49,066			46,646		48,204
Interest on investment securities held to maturity	6,759		6,795			6,870			6,953		6,924
Interest on federal funds sold, securities purchased under agreements to resell and interest bearing deposits	4,346		4,366			1,595			1,666		1,363
Interest on trading account assets	13,412		14,321			13,058			14,431		13,832
Total interest income	620,129		632,762			616,981			610,213		601,717
Interest expense:
Interest on deposits	76,933		77,815			71,342			68,282		65,201
Interest on FHLB and other borrowings	19,592		18,012			22,920			20,422		27,540
Interest on federal funds purchased and securities sold under agreements to repurchase	5,434		6,157			2,856			2,506		1,702
Interest on other short-term borrowings	13,932		13,896			15,774			11,129		15,291
Total interest expense	115,891		115,880			112,892			102,339		109,734
Net interest income	504,238		516,882			504,089			507,874		491,983
Provision for loan losses	86,673		113,245			76,307			29,151		46,149
Net interest income after provision for loan losses	417,565		403,637			427,782			478,723		445,834
Noninterest income:
Service charges on deposit accounts	51,921		51,425			54,357			54,917		53,690
Card and merchant processing fees	31,509		29,742			28,900			29,024		28,711
Retail investment sales	26,985		22,567			24,040			26,055		26,373
Investment banking and advisory fees	28,335		23,604			20,260			17,842		36,799
Money transfer income	26,477		24,425			24,735			24,868		23,375
Asset management fees	8,386		8,805			8,745			7,918		8,435
Corporate and correspondent investment sales	10,103		4,413			9,710			6,047		7,984
Mortgage banking	602		(3,434		)	5,989			554		12,556
Bank owned life insurance	4,455		4,416			5,135			4,345		4,394
Investment securities gains, net	21,684		8,353			14,689			6,736		27,399
Loss on prepayment of FHLB and other borrowings	—		—			(1,898		)	—		(3,569		)
Other	67,789		78,889			67,536			82,414		58,235
Total noninterest income	278,246		253,205			262,198			260,720		284,382
Noninterest expense:
Salaries, benefits and commissions	277,166		279,769			276,647			271,143		272,071
Professional services	58,401		56,367			64,450			55,476		51,758
Equipment	59,508		60,441			57,739			58,414		57,458
Net occupancy	39,999		39,272			41,304			39,706		40,549
Money transfer expense	17,768		15,600			16,334			16,514		14,755
Marketing	11,506		12,709			9,447			10,624		11,619
Communications	5,463		5,175			5,423			5,856		5,360
Amortization of intangibles	4,094		4,093			9,125			9,507		9,889
Other	67,132		118,718			98,226			90,135		76,028
Total noninterest expense	541,037		592,144			578,695			557,375		539,487
Net income before income tax expense	154,774		64,698			111,285			182,068		190,729
Income tax expense	32,272		25,431			19,637			52,428		50,335
Net income	122,502		39,267			91,648			129,640		140,394
Less: net income attributable to noncontrolling interests	518		528			490			491		590
Net income attributable to BBVA Compass Bancshares, Inc.	$	121,984	$	38,739		$	91,158		$	129,149	$	139,804
[a] Prior period financial information has been retrospectively adjusted to include the historical activity of the money business service subsidiaries purchased from BBVA Bancomer USA, Inc. in June 2016.

BBVA USA Bancshares, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 29, 2016

Attached files

BBVA USA Bancshares, Inc. Reports