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.	bbvacompass093020168k.htm

Exhibit 99.1

Third quarter net income of $120 million

BBVA Compass reports net income of $282 million for the first nine months of 2016


•	Focus on targeted loan and deposit growth, spreads and capital optimization


▪	Average total loans of $61.1 billion up 1 percent from year ago levels


◦	Newly funded customer loans of $11.1 billion in the first nine months of 2016


▪	Average total deposits of $68.0 billion up $4.0 billion, or 6 percent, from prior year


◦	Deposit growth fueled by 7 percent increase in noninterest bearing deposits


◦	Noninterest bearing deposits represent 30.5 percent of total deposits


•	Total revenue up 2 percent in the quarter as both net interest income and noninterest income post gains


•	Net interest income increases $7 million from prior year levels and $11 million from 2Q16 levels


•	Percentage net interest margin increases 3 basis points from year ago quarter and 7 basis points from 2Q16 levels


•	Noninterest income totals $264 million, up $10 million or 4 percent from year ago


•	Expenses well contained in the quarter; up 3 percent on a year-to-date basis


•	Credit quality metrics remain sound; allowance to loan ratio at 1.43 percent


▪	Net charge-off ratio of 30 basis points, down from 43 basis points in 2Q16


▪	Provision expense for the quarter exceeded net charge-offs by $19 million


▪	Nonperforming loan ratio at 1.91 percent; 0.99 percent excluding energy portfolio


•	Strong capital position and focused on capital optimization


▪	Regulatory capital ratios¹ remain significantly above “well-capitalized” guidelines


▪	Common Equity Tier 1 capital ratio (phased-in)¹ increases to 11.28 percent

HOUSTON, October 27, 2016 - BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $120 million for the third quarter of 2016 compared to $130 million earned during the third quarter of 2015. Return on average assets and return on average tangible equity² for the third quarter of 2016 were 0.53 percent and 6.21 percent, respectively.

Net income for the first nine months of 2016 was $282 million compared to $416 million earned during the first nine months of 2015. Return on average assets and return on average tangible equity² for the first nine months of 2016 were 0.41 percent and 4.92 percent, respectively.

“Our results for the third quarter reflect our focus on targeted loan and deposit growth, improving spreads on earning assets and optimization of our capital base,” said Manolo Sánchez, chairman and CEO of BBVA Compass. “We believe this to be a prudent strategy given the low interest rate environment and tempered economic growth forecast in the U.S. At the same time, we continue to move forward with our digital transformation efforts to improve the customer experience and increase our digital sales capabilities to meet our customers’ needs.”

“Average total loans for the third quarter of 2016 were $61.1 billion, an increase of 1 percent,” Sánchez noted. “While year-over-year growth was muted by strategic loan sales, during the first nine months of 2016 we funded $11.1 billion in customer loans. Equally important, our loan portfolio is fully funded by our ability to generate deposits. Average deposits totaled $68.0 billion, an increase of $4.0 billion or 6 percent. Growth in this portfolio was led by a 7 percent increase in average noninterest bearing deposits which now represent 30.5 percent of total deposits.”

Total revenue increased 2 percent from the prior year for both the three and nine month periods. Net interest income totaled $515 million in the quarter, an increase of 1 percent from prior year levels. The percent net interest margin in the third quarter of 2016 was 2.73 percent, up 3 basis points from a year ago and 7 basis points from second quarter 2016 levels. This improvement reflected the company’s focus on spread management and disciplined balance sheet growth.

Noninterest income for the quarter totaled $264 million, an increase of 4 percent compared to $254 million recorded in the third quarter of 2015. Growth was widespread as all major fee-based businesses posted gains, most notably in investment banking and advisory fees and a rebound in mortgage banking income. Expense growth was also well-contained in the quarter with total noninterest expense totaling $556 million, a slight decrease compared to the year ago quarter. On a year-to-date basis, total expenses have increased just 3 percent, reflecting the company’s focus on disciplined expense management.

Credit quality metrics remained sound and further reflect the continued active management of our energy portfolio. Provision expense for the quarter totaled $65 million compared to $87 million in the second quarter of 2016 and exceeded net charge-offs by $19 million. Net charge-offs as a percentage of total loans were 30 basis points compared to 43 basis points for the second quarter of 2016. The allowance for loan losses as a percentage of total loans ended the quarter at 1.43 percent, up from the 1.37 percent at the end of the second quarter this year and 1.20 percent at the end of the third quarter a year ago. Nonperforming loans as a percentage of total loans were 1.91 percent compared to 1.76 percent at the end of the second quarter 2016.

“Our asset quality metrics continue to reflect our commitment to maintaining sound underwriting standards and a strong risk profile,” Sánchez said. “This commitment is reflected in the actions we have taken to address the stress on our energy portfolio as a result of a prolonged period of low oil prices. Our energy portfolio totaled $3.3 billion at the end of the quarter, down $410 million compared to second quarter 2016 levels and $829 million compared to first quarter 2016 levels. Our energy portfolio now represents 5.5 percent of our total loan portfolio compared to 6.0 percent at the end of the second quarter this year and 6.7 percent at the end of the first quarter.”

Total shareholder’s equity ended the third quarter of 2016 at $12.8 billion, a 3 percent increase from $12.4 billion at the end of the third 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 14.18 percent¹ compared to 13.38 percent a year ago and the CET1 ratio rose to 11.28 percent¹from 10.68 percent¹at the end of the third quarter of 2015.

^{________________________________}

¹ Regulatory capital ratios at September 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 2015-2016 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 September 30,						%		Nine Months Ended September 30,						%
	2016			2015 [d]			Change		2016			2015 [d]			Change
EARNINGS SUMMARY
Net interest income	$	514,809		$	507,874		1		$	1,535,929		$	1,508,888		2
Noninterest income [a]	263,765			253,984			4		765,179			756,327			1
Total revenue [a]	778,574			761,858			2		2,301,108			2,265,215			2
Investment securities gain, net	—			6,736			NM		30,037			66,967			(55	)
Loss on prepayment of FHLB advances	—			—			NM		—			(6,118		)	NM
Provision for loan losses	65,107			29,151			123		265,025			117,331			126
Noninterest expense	556,271			557,375			—		1,689,452			1,636,158			3
Pretax income	157,196			182,068			(14	)	376,668			572,575			(34	)
Income tax expense	36,845			52,428			(30	)	94,548			156,865			(40	)
Net income	120,351			129,640			(7	)	282,120			415,710			(32	)
Net income attributable to noncontrolling interests	523			491			7		1,569			1,738			(10	)
Net income attributable to BBVA Compass Bancshares, Inc.	$	119,828		$	129,149		(7	)	$	280,551		$	413,972		(32	)

SELECTED RATIOS
Return on average assets	0.53		%	0.57		%			0.41		%	0.63		%
Return on average tangible equity [b]	6.21			7.11					4.92			7.79
Average common equity to average assets	13.84			13.77					13.64			14.00
Average loans to average total deposits	89.82			94.74					91.03			94.94
Common equity tier I capital (CET1) [c]	11.28			10.68					11.28			10.68
Tier I capital ratio [c]	11.64			10.74					11.64			10.74
Total capital ratio [c]	14.18			13.38					14.18			13.38
Leverage ratio [c]	9.08			8.69					9.08			8.69
[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 Nine Months					Ending Balance
	Ended September 30,				%	Ended September 30,				%	September 30,				%
	2016		2015 [d]		Change	2016		2015 [d]		Change	2016		2015 [d]		Change
BALANCE SHEET HIGHLIGHTS
Total loans	$	61,060,433	$	60,632,304	1	$	61,867,590	$	59,737,187	4	$	60,313,126	$	60,921,379	(1	)
Total investment securities	12,648,198		11,883,785		6	12,542,222		11,604,103		8	12,757,735		12,161,461		5
Earning assets	77,978,443		77,369,201		1	78,734,945		75,724,883		4	77,257,835		77,537,128		—
Total assets	90,900,339		89,886,097		1	91,878,427		87,697,522		5	89,356,838		89,477,420		—
Noninterest bearing demand deposits	20,715,562		19,312,087		7	20,432,380		18,749,741		9	20,585,598		19,060,137		8
Interest bearing transaction accounts	32,487,598		31,364,714		4	32,773,911		31,172,051		5	32,706,487		31,813,690		3
Total transaction accounts	53,203,160		50,676,801		5	53,206,291		49,921,792		7	53,292,085		50,873,827		5
Total deposits	67,979,739		64,001,250		6	67,967,135		62,921,841		8	67,587,337		64,478,407		5
Shareholder's equity	12,810,740		12,379,303		3	12,763,461		12,281,245		4	12,819,190		12,443,728		3

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

	2016									2015
	September 30			June 30			March 31			December 31			September 30
NONPERFORMING ASSETS
Nonaccrual loans [a]	$	1,086,018		$	1,026,592		$	819,034		$	407,045		$	380,930
Loans 90 days or more past due [b]	65,525			60,320			60,490			68,629			73,588
TDRs 90 days or more past due	618			998			491			874			678
Total nonperforming loans [a]	1,152,161			1,087,910			880,015			476,548			455,196
Other real estate owned, net (OREO)	21,670			18,225			17,877			20,862			23,762
Other repossessed assets	6,900			9,380			8,601			8,774			3,331
Total nonperforming assets	$	1,180,731		$	1,115,515		$	906,493		$	506,184		$	482,289

TDRs accruing and past due less than 90 days	$	116,941		$	118,222		$	120,316		$	150,038		$	154,397


Total nonperforming loans as a % of loans	1.91		%	1.76		%	1.41		%	0.78		%	0.75		%
Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets	1.96			1.80			1.46			0.82			0.79
[a] Includes loans held for sale.
[b] Excludes loans classified as troubled debt restructuring (TDRs).



	Three Months Ended
	2016									2015
	September 30			June 30			March 31			December 31			September 30
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	843,051		$	822,440		$	762,673		$	722,122		$	721,471
Net charge-offs (NCO)	46,078			66,062			53,478			35,756			28,500
Provision for loan losses	65,107			86,673			113,245			76,307			29,151
Balance at end of period	$	862,080		$	843,051		$	822,440		$	762,673		$	722,122

Allowance for loan losses as a % of total loans	1.43		%	1.37		%	1.32		%	1.24		%	1.20		%
Allowance for loan losses as a % of nonperforming loans [c]	74.82			77.49			93.46			160.04			158.64
Allowance for loan losses as a % of nonperforming assets [c]	73.01			75.58			90.73			150.67			149.73

Annualized as a % of average loans:
NCO - QTD	0.30			0.43			0.35			0.23			0.19
NCO - YTD	0.36			0.39			0.35			0.19			0.18
[c] Includes loans held for sale that are on nonaccrual status.

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

	September 30, 2016								June 30, 2016								March 31, 2016								December 31, 2015
	Recorded Investment			Total Commitment			Nonaccrual		Recorded Investment			Total Commitment			Nonaccrual		Recorded Investment			Total Commitment			Nonaccrual		Recorded Investment			Total Commitment			Nonaccrual
ENERGY PORTFOLIO
Exploration and production	$	1,722,052		$	4,244,802		$	574,813	$	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	1,207,650			3,209,931			12,982		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	261,748			468,728			—		270,420			495,563			—		292,769			504,455			—		266,871			554,782			—
Refineries and terminals	130,689			254,130			431		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	$	3,322,139		$	8,177,591		$	588,226	$	3,732,692		$	8,468,406		$	642,310	$	4,151,399		$	9,277,852		$	470,357	$	3,840,226		$	9,355,925		$	92,467

	September 30, 2016								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					As a % of Energy Loans			As a % of Total Loans
ENERGY PORTFOLIO
Exploration and production	51.8		%	2.9		%			51.8		%	3.1		%			51.6		%	3.4		%			53.2		%	3.4		%
Midstream	36.4			2.0					37.4			2.3					37.1			2.5					35.3			2.2
Drilling oil and support services	7.9			0.4					7.3			0.4					7.1			0.5					6.9			0.4
Refineries and terminals	3.9			0.2					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		%	5.5		%			100.0		%	6.0		%			100.0		%	6.7		%			100.0		%	6.3		%

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

	Three Months Ended September 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	$	61,060,433		$	574,748	3.74	%	$	60,632,304		$	555,713	3.64	%
Investment securities available for sale [a]	11,373,321			48,450		1.69		10,507,688			47,360		1.79
Investment securities held to maturity	1,249,282			9,701		3.09		1,366,529			10,119		2.94
Other earning assets	4,269,812			17,490		1.63		4,853,112			16,097		1.32
Total earning assets [a]	77,952,848			650,389		3.32		77,359,633			629,289		3.23
Allowance for loan losses	(848,067		)					(725,871		)
Unrealized gain (loss) on securities available for sale	25,595							9,568
Other assets	13,769,963							13,242,767
Total assets	$	90,900,339						$	89,886,097

Liabilities and Shareholder's Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	6,824,519		$	4,077	0.24		$	6,949,920		$	2,943	0.17
Savings and money market accounts	25,663,079			24,395		0.38		24,414,794			22,260		0.36
Certificates and other time deposits	14,670,360			47,507		1.29		13,158,705			42,990		1.30
Foreign office deposits	106,219			52		0.19		165,744			89		0.21
Total interest bearing deposits	47,264,177			76,031		0.64		44,689,163			68,282		0.61
FHLB and other borrowings	4,121,742			21,315		2.06		6,331,187			20,422		1.28
Federal funds purchased and securities sold under agreement to repurchase	232,451			4,934		8.44		677,351			2,506		1.47
Other short-term borrowings	3,737,212			13,453		1.43		4,370,077			11,129		1.01
Total interest bearing liabilities	55,355,582			115,733		0.83		56,067,778			102,339		0.72
Noninterest bearing deposits	20,715,562							19,312,087
Other noninterest bearing liabilities	2,018,455							2,126,929
Total liabilities	78,089,599							77,506,794
Shareholder's equity	12,810,740							12,379,303
Total liabilities and shareholder's equity	$	90,900,339						$	89,886,097

Net interest income/ net interest spread				534,656		2.49	%				526,950		2.51	%
Net yield on earning assets						2.73	%						2.70	%

Total taxable equivalent adjustment				19,847							19,076

Net interest income				$	514,809						$	507,874
[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)

	Nine Months Ended September 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	$	61,867,590		$	1,727,822	3.73	%	$	59,737,187		$	1,659,303	3.71	%
Investment securities available for sale [a]	11,258,000			131,253		1.56		10,193,624			146,583		1.92
Investment securities held to maturity	1,269,161			29,293		3.08		1,366,299			29,782		2.91
Other earning assets	4,325,133			53,936		1.67		4,383,593			41,905		1.28
Total earning assets [a]	78,719,884			1,942,304		3.30		75,680,703			1,877,573		3.32
Allowance for loan losses	(823,372		)					(707,459		)
Unrealized gain (loss) on securities available for sale	15,061							44,180
Other assets	13,966,854							12,680,098
Total assets	$	91,878,427						$	87,697,522

Liabilities and Shareholder's Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	6,912,147		$	11,867	0.23		$	7,281,588		$	8,868	0.16
Savings and money market accounts	25,861,764			75,896		0.39		23,890,463			70,465		0.39
Certificates and other time deposits	14,652,400			142,856		1.30		12,832,829			123,546		1.29
Foreign office deposits	108,444			160		0.20		167,220			257		0.21
Total interest bearing deposits	47,534,755			230,779		0.65		44,172,100			203,136		0.61
FHLB and other borrowings	4,543,350			58,919		1.73		5,742,906			67,068		1.57
Federal funds purchased and securities sold under agreement to repurchase	569,772			16,525		3.87		832,854			5,534		0.89
Other short-term borrowings	3,912,069			41,281		1.41		3,973,734			36,668		1.23
Total interest bearing liabilities	56,559,946			347,504		0.82		54,721,594			312,406		0.76
Noninterest bearing deposits	20,432,380							18,749,741
Other noninterest bearing liabilities	2,122,640							1,944,942
Total liabilities	79,114,966							75,416,277
Shareholder's equity	12,763,461							12,281,245
Total liabilities and shareholder's equity	$	91,878,427						$	87,697,522

Net interest income/ net interest spread				1,594,800		2.48	%				1,565,167		2.56	%
Net yield on earning assets						2.71	%						2.77	%

Total taxable equivalent adjustment				58,871							56,279

Net interest income				$	1,535,929						$	1,508,888
[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)

	Nine Months							Three Months Ended
	Ended September 30,					%		2016							2015 [a]
	2016		2015 [a]			Change		September 30		June 30		March 31 [a]			December 31			September 30
NONINTEREST INCOME
Service charges on deposit accounts	$	158,393	$	161,891		(2	)	$	55,047	$	51,921	$	51,425		$	54,357		$	54,917
Card and merchant processing fees	92,507		83,918			10		31,256		31,509		29,742			28,900			29,024
Retail investment sales	79,689		77,574			3		30,137		26,985		22,567			24,040			26,055
Investment banking and advisory fees	86,324		84,975			2		34,385		28,335		23,604			20,260			17,842
Money transfer income	75,960		68,702			11		25,058		26,477		24,425			24,735			24,868
Asset management fees	25,969		24,449			6		8,778		8,386		8,805			8,745			7,918
Corporate and correspondent investment sales	21,490		20,290			6		6,974		10,103		4,413			9,710			6,047
Mortgage banking	5,410		21,269			NM		8,242		602		(3,434		)	5,989			554
Bank owned life insurance	13,041		13,527			(4	)	4,170		4,455		4,416			5,135			4,345
Other	206,396		199,732			3		59,718		67,789		78,889			67,536			82,414
	765,179		756,327			1		263,765		256,562		244,852			249,407			253,984
Investment securities gains, net	30,037		66,967			(55	)	—		21,684		8,353			14,689			6,736
Loss on prepayment of FHLB and other borrowings, net	—		(6,118		)	NM		—		—		—			(1,898		)	—
Total noninterest income	$	795,216	$	817,176		(3	)	$	263,765	$	278,246	$	253,205		$	262,198		$	260,720

NONINTEREST EXPENSE
Salaries, benefits and commissions	$	836,067	$	804,828		4		$	279,132	$	277,166	$	279,769		$	276,647		$	271,143
Professional services	178,396		154,134			16		63,628		58,401		56,367			64,450			55,476
Equipment	179,646		174,311			3		59,697		59,508		60,441			57,739			58,414
Net occupancy	120,881		119,731			1		41,610		39,999		39,272			41,304			39,706
Money transfer expense	50,048		44,016			14		16,680		17,768		15,600			16,334			16,514
Marketing	37,531		32,331			16		13,316		11,506		12,709			9,447			10,624
Communications	15,640		17,104			(9	)	5,002		5,463		5,175			5,423			5,856
Amortization of intangibles	12,280		30,083			(59	)	4,093		4,094		4,093			9,125			9,507
Other	258,963		259,620			—		73,113		67,132		118,718			98,226			90,135
Total noninterest expense	$	1,689,452	$	1,636,158		3		$	556,271	$	541,037	$	592,144		$	578,695		$	557,375
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 September 30,						Nine Months Ended September 30,
	2016			2015 [a]			2016			2015 [a]
NON-GAAP RECONCILIATION

Computation of Average Tangible Equity:
Total stockholder's equity (average)	$	12,810,740		$	12,379,303		$	12,763,461		12,281,245
Less: Goodwill and other intangibles (average)	5,101,819			5,147,993			5,108,852			5,148,781
Average tangible equity [B]	$	7,708,921		$	7,231,310		$	7,654,609		7,132,464
Net income [A]	$	120,351		$	129,640		$	282,120		$	415,710
Return on average tangible equity ([A]/[B], annualized)	6.21		%	7.11		%	4.92		%	7.79		%
[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 September 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	$	72,328	$	4,400	$	5,320	$	850,075	$	9,283	$	23,897,662	$	24,839,068	$	8,936
Real estate – construction	522		1,062		2,782		1,214		3,315		2,206,377		2,215,272		(206		)
Commercial real estate – mortgage	7,614		369		783		63,593		5,141		11,284,130		11,361,630		(372		)
Residential real estate – mortgage	56,204		21,200		3,929		117,243		63,008		13,195,851		13,457,435		560
Equity lines of credit	8,173		4,477		2,417		32,642		—		2,446,759		2,494,468		601
Equity loans	5,567		1,694		353		13,198		36,053		422,510		479,375		18
Credit card	5,696		4,264		10,175		—		—		579,727		599,862		8,459
Consumer – direct	12,099		4,725		4,191		765		759		1,164,288		1,186,827		12,884
Consumer – indirect	73,045		20,165		7,070		7,019		—		3,088,936		3,196,235		15,198
Covered loans	4,075		3,844		28,505		269		—		344,418		381,111		—
Total loans	$	245,323	$	66,200	$	65,525	$	1,086,018	$	117,559	$	58,630,658	$	60,211,283	$	46,078
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	101,843	$	101,843	$	—



	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	$	—

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

	2016									2015 [a]
	September 30			June 30			March 31 [a]			December 31			September 30
Assets:
Cash and due from banks	$	4,054,423		$	4,829,763		$	5,136,283		$	4,165,880		$	3,949,049
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits	372,268			319,644			233,411			330,948			479,207
Cash and cash equivalents	4,426,691			5,149,407			5,369,694			4,496,828			4,428,256
Trading account assets	4,051,461			4,355,025			4,358,533			4,138,132			4,193,506
Investment securities available for sale	11,516,885			11,359,159			11,265,797			11,050,520			10,803,660
Investment securities held to maturity	1,240,850			1,258,253			1,267,953			1,322,676			1,357,801
Loans held for sale	101,843			108,432			96,784			70,582			634,158
Loans	60,211,283			61,679,943			62,104,690			61,324,084			60,287,221
Allowance for loan losses	(862,080		)	(843,051		)	(822,440		)	(762,673		)	(722,122		)
Net loans	59,349,203			60,836,892			61,282,250			60,561,411			59,565,099
Premises and equipment, net	1,287,457			1,290,738			1,297,539			1,322,378			1,310,995
Bank owned life insurance	712,422			708,143			704,254			700,285			697,023
Goodwill	5,043,197			5,043,197			5,043,197			5,043,197			5,060,197
Other intangible assets	19,296			23,389			27,483			31,576			40,701
Other real estate owned	21,670			18,225			17,877			20,862			23,762
Other assets	1,585,863			1,602,296			1,489,428			1,310,091			1,362,262
Total assets	$	89,356,838		$	91,753,156		$	92,220,789		$	90,068,538		$	89,477,420
Liabilities:
Deposits:
Noninterest bearing	$	20,585,598		$	20,132,164		$	20,416,248		$	19,291,533		$	19,060,137
Interest bearing	47,001,739			47,618,154			48,503,973			46,690,233			45,418,270
Total deposits	67,587,337			67,750,318			68,920,221			65,981,766			64,478,407
FHLB and other borrowings	3,671,861			5,098,048			4,383,454			5,438,620			6,216,425
Federal funds purchased and securities sold under agreements to repurchase	165,573			386,343			893,786			750,154			639,259
Other short-term borrowings	3,591,223			4,352,428			3,924,781			4,032,644			4,167,897
Accrued expenses and other liabilities	1,521,654			1,439,023			1,375,370			1,240,645			1,531,704
Total liabilities	76,537,648			79,026,160			79,497,612			77,443,829			77,033,692
Shareholder’s Equity:
Preferred stock	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	15,020,937			15,022,974			15,152,077			15,160,267			15,237,899
Retained deficit	(2,416,402		)	(2,536,230		)	(2,658,214		)	(2,696,953		)	(2,788,111		)
Accumulated other comprehensive loss	(46,644		)	(20,500		)	(31,945		)	(99,336		)	(37,882		)
Total BBVA Compass Bancshares, Inc. shareholder’s equity	12,789,596			12,697,949			12,693,623			12,595,683			12,414,136
Noncontrolling interests	29,594			29,047			29,554			29,026			29,592
Total shareholder’s equity	12,819,190			12,726,996			12,723,177			12,624,709			12,443,728
Total liabilities and shareholder’s equity	$	89,356,838		$	91,753,156		$	92,220,789		$	90,068,538		$	89,477,420
[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]
	September 30		June 30		March 31 [a]			December 31			September 30
Interest income:
Interest and fees on loans	$	557,996	$	559,170	$	561,083		$	546,392		$	540,517
Interest on investment securities available for sale	48,382		36,442		46,197			49,066			46,646
Interest on investment securities held to maturity	6,675		6,759		6,795			6,870			6,953
Interest on federal funds sold, securities purchased under agreements to resell and interest bearing deposits	4,563		4,346		4,366			1,595			1,666
Interest on trading account assets	12,926		13,412		14,321			13,058			14,431
Total interest income	630,542		620,129		632,762			616,981			610,213
Interest expense:
Interest on deposits	76,031		76,933		77,815			71,342			68,282
Interest on FHLB and other borrowings	21,315		19,592		18,012			22,920			20,422
Interest on federal funds purchased and securities sold under agreements to repurchase	4,934		5,434		6,157			2,856			2,506
Interest on other short-term borrowings	13,453		13,932		13,896			15,774			11,129
Total interest expense	115,733		115,891		115,880			112,892			102,339
Net interest income	514,809		504,238		516,882			504,089			507,874
Provision for loan losses	65,107		86,673		113,245			76,307			29,151
Net interest income after provision for loan losses	449,702		417,565		403,637			427,782			478,723
Noninterest income:
Service charges on deposit accounts	55,047		51,921		51,425			54,357			54,917
Card and merchant processing fees	31,256		31,509		29,742			28,900			29,024
Retail investment sales	30,137		26,985		22,567			24,040			26,055
Investment banking and advisory fees	34,385		28,335		23,604			20,260			17,842
Money transfer income	25,058		26,477		24,425			24,735			24,868
Asset management fees	8,778		8,386		8,805			8,745			7,918
Corporate and correspondent investment sales	6,974		10,103		4,413			9,710			6,047
Mortgage banking	8,242		602		(3,434		)	5,989			554
Bank owned life insurance	4,170		4,455		4,416			5,135			4,345
Investment securities gains, net	0		21,684		8,353			14,689			6,736
Loss on prepayment of FHLB and other borrowings	—		—		—			(1,898		)	—
Other	59,718		67,789		78,889			67,536			82,414
Total noninterest income	263,765		278,246		253,205			262,198			260,720
Noninterest expense:
Salaries, benefits and commissions	279,132		277,166		279,769			276,647			271,143
Professional services	63,628		58,401		56,367			64,450			55,476
Equipment	59,697		59,508		60,441			57,739			58,414
Net occupancy	41,610		39,999		39,272			41,304			39,706
Money transfer expense	16,680		17,768		15,600			16,334			16,514
Marketing	13,316		11,506		12,709			9,447			10,624
Communications	5,002		5,463		5,175			5,423			5,856
Amortization of intangibles	4,093		4,094		4,093			9,125			9,507
Other	73,113		67,132		118,718			98,226			90,135
Total noninterest expense	556,271		541,037		592,144			578,695			557,375
Net income before income tax expense	157,196		154,774		64,698			111,285			182,068
Income tax expense	36,845		32,272		25,431			19,637			52,428
Net income	120,351		122,502		39,267			91,648			129,640
Less: net income attributable to noncontrolling interests	523		518		528			490			491
Net income attributable to BBVA Compass Bancshares, Inc.	$	119,828	$	121,984	$	38,739		$	91,158		$	129,149
[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 - October 27, 2016

Attached files

BBVA USA Bancshares, Inc. Reports