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.	bbvacompass033120178k.htm

Exhibit 99.1

Net interest income rises 7 percent

BBVA Compass reports net income of $121 million for the first quarter of 2017


◦	Significant improvement in net income, reaching $121 million


▪	35 percent improvement from prior quarter and 208 percent increase from a year ago


▪	Return on average assets and return on average tangible equity¹ for the first quarter of 2017 were 0.56 percent and 6.28 percent, respectively


◦	Total revenue up 5 percent from a year ago and 2 percent (annualized) from fourth quarter 2016 levels


▪	Net interest income (NII) increases $35 million or 7 percent from year ago


▪	NII linked quarter growth more pronounced at 15 percent (annualized)


▪	Net interest margin (FTE) increases 35 basis points from prior year and 18 basis points from fourth quarter 2016 levels


▪	Market sensitive fee based businesses post double-digit year-over-year growth


◦	Strong focus on expense management results in decline in noninterest expense from prior quarter and year ago levels


◦	Continued focus on targeted balance sheet growth and spread management


▪	Average total loans of $60.3 billion down 3 percent from prior year


•	Newly funded customer loans of $3.5 billion in the quarter


▪	Average total deposits of $67.2 billion relatively unchanged from a year ago


•	Noninterest bearing deposit growth continues, up 3 percent


•	Noninterest bearing deposits represent 31.8 percent of total deposits


◦	Improvement in energy portfolio leads to decline in nonperforming loans


▪	Nonperforming loan ratio drops to 1.49 percent, down 14 basis points from 4Q16


▪	Net charge-off ratio at 57 basis points compared to 35 basis points in 1Q16


▪	Allowance to loan ratio at 1.40 percent and coverage ratio at 93 percent


◦	Capital optimization leads to further strengthening of regulatory capital ratios


▪	Common Equity Tier 1 capital ratio (phased-in)² increases to 11.75 percent


▪	Regulatory capital ratios² remain significantly above “well-capitalized” guidelines

HOUSTON, April 27, 2017 - BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $121 million for the first quarter of 2017 compared to $89 million earned during the fourth quarter of 2016 and $39 million earned during the first quarter of 2016. Earnings in the quarter represented a 35 percent increase from the prior quarter and a 208 percent increase from year ago levels. Return on average assets and return on average tangible equity¹ for the first quarter of 2017 were 0.56 percent and 6.28 percent, respectively.

“Our results for the first quarter of 2017 reflect our ability to build upon the momentum we experienced in the second half of last year, particularly with respect to revenue growth,” said Onur Genç, president and CEO of BBVA Compass. “While our balance sheet was certainly well-positioned to benefit from an increase in interest rates, our results also demonstrate our efforts to manage loan and deposit spreads, effectively control expense growth and prudently manage our energy portfolio. These factors, along with continuing on our path towards digital transformation and improving the client experience, remain our primary focus as we aim to enhance profitability.”

Total revenue for the quarter was $796 million, an increase of 5 percent from first quarter 2016 levels. Net interest income totaled $551 million, an increase of $35 million or 7 percent from the first quarter of 2016, and an annualized increase of 15 percent from fourth quarter 2016 levels. The percent net interest margin in the first quarter of 2017 was 2.96 percent, up 35 basis points from a year ago and 18 basis points from the fourth quarter of 2016. This improvement reflects the positive impact from the increase in interest rates, as well as the company’s continued focus on targeted loan and deposit growth and disciplined spread management. The company continues to maintain an asset-sensitive balance sheet and thus is positively positioned for future interest rate increases should they materialize.

“While noninterest income at $245 million was relatively unchanged from a year ago, the first quarter of 2016 included a gain on sale of mortgage loans in other noninterest income,” Genç noted. “Conversely, all of our fee-based businesses generated positive growth, particularly our market sensitive businesses which each grew at double digit rates. At the same time, our focus on strong expense management met with continued success as total noninterest expense declined both from prior quarter and year ago levels.”

In terms of balance sheet growth, average total loans for the first quarter of 2017 were $60.3 billion, a decrease of 3 percent from $62.2 billion for the first quarter 2016, further reflecting the company’s strategic focus on targeted loan growth. While total loans declined, approximately $3.5 billion of customer loans were funded during the quarter. Average total deposits for the quarter were $67.2 billion, relatively unchanged from year ago levels. Average noninterest bearing deposits totaled $20.6 billion, representing a 3 percent increase from the prior year. Noninterest bearing deposits now represent nearly 32 percent of total deposits.

“Credit quality metrics continue to reflect our strong risk profile and commitment to maintaining reserve levels that adequately reflect our loan portfolio as well as current and expected economic conditions,” Genç said.

Nonperforming loans as a percentage of total loans declined to 1.49 percent compared to 1.63 percent at the end of the fourth quarter of 2016, reflecting continued improvement in the energy portfolio. Net charge-offs as a percentage of average total loans were 57 basis points in the quarter compared to 35 basis points a year ago, as the increase was specifically attributable to a single, commercial credit. The allowance for loan losses as a percentage of total loans remained unchanged from fourth quarter 2016 levels at 1.40 percent while the allowance for loan losses as a percentage of nonperforming loans stood at 93 percent.

“While the stress caused by the prolonged period of low energy prices impacted provisioning levels in the year ago quarter, we have been steadfast in our active management of this conservatively underwritten, reserve-based and highly-collateralized energy portfolio,” said Genç. “As a result, metrics continue to show improvement and losses have been well within expectations.”

Energy loans totaled $2.9 billion at the end of the quarter, down $372 million compared to fourth quarter levels and down $1.3 billion compared to first quarter 2016 levels when the portfolio reached its peak. The energy portfolio now represents 4.8 percent of total loans compared to 5.4 percent at the end of the fourth quarter of 2016 and 6.7 percent at the end of the first quarter of 2016. During the first quarter of 2017, nonaccrual loans in the energy portfolio declined by 29 percent which was preceded by a 34 percent decline in nonperforming loans in the fourth quarter of 2016.

Total shareholder’s equity ended the first quarter of 2017 at $12.9 billion, a 1 percent increase from $12.7 billion at the end of the first quarter of 2016. The CET1 ratio rose to 11.75 percent²at the end of the first quarter of 2017, up 26 basis points from the end of the fourth quarter of 2016 and 111 basis points from the end of the first quarter of 2016. Each of the company’s other regulatory capital ratios remain significantly above “well-capitalized” guidelines at the end of the quarter.

^{________________________________}

¹ 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.

² Regulatory capital ratios at March 31, 2017, are estimated

FTE - Fully taxable equivalent



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 657 branches, including 342 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 38 in Colorado and 19 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 (SBA) and ranked 5th nationally in the total number of SBA loans originated in fiscal year 2016. 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 March 31, 2017, BBVA filed its annual report on Form 20-F for the year ended December 31, 2016, 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, 2016, 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 1, 2017, as updated by our subsequent SEC filings.

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

	Three Months Ended March 31,						%
	2017			2016 [d]			Change
EARNINGS SUMMARY
Net interest income	$	551,433		$	516,882		7
Noninterest income [a]	244,687			244,852			—
Total revenue [a]	796,120			761,734			5
Investment securities gain, net	—			8,353			(100	)
Provision for loan losses	80,139			113,245			(29	)
Noninterest expense	549,312			592,144			(7	)
Pretax income	166,669			64,698			158
Income tax expense	45,846			25,431			80
Net income	120,823			39,267			208
Net income attributable to noncontrolling interests	443			528			(16	)
Net income attributable to BBVA Compass Bancshares, Inc.	$	120,380		$	38,739		211

SELECTED RATIOS
Return on average assets	0.56		%	0.17		%
Return on average tangible equity [b]	6.28			2.07
Average common equity to average assets	14.36			13.54
Average loans to average total deposits	89.75			92.17
Common equity tier I capital (CET1) [c]	11.75			10.64
Tier I capital ratio [c]	12.11			10.99
Total capital ratio [c]	14.51			13.55
Leverage ratio [c]	9.68			8.74
[a] Excludes net gain on sales of investment securities.
[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.

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

	Average for Three Months						Ending Balance
	Ended March 31,				%		March 31,				%
	2017		2016 [d]		Change		2017		2016 [d]		Change
BALANCE SHEET HIGHLIGHTS
Total loans	$	60,326,849	$	62,195,963	(3	)	$	59,780,508	$	62,201,474	(4	)
Total investment securities	12,880,779		12,483,709		3		13,005,403		12,533,750		4
Earning assets	78,264,483		82,597,709		(5	)	78,364,526		79,091,520		(1	)
Total assets	87,676,882		92,305,106		(5	)	87,309,233		92,220,789		(5	)
Noninterest bearing demand deposits	20,577,690		20,057,143		3		21,476,890		20,416,248		5
Interest bearing transaction accounts	33,409,808		32,861,499		2		33,978,555		33,350,134		2
Total transaction accounts	53,987,498		52,918,642		2		55,455,445		53,766,382		3
Total deposits	67,216,855		67,479,613		—		67,529,638		68,920,221		(2	)
Total shareholder's equity	12,852,658		12,727,970		1		12,885,499		12,723,177		1

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

	2017			2016
	March 31			December 31			September 30			June 30			March 31
NONPERFORMING ASSETS
Nonaccrual loans [a]	$	825,988		$	921,042		$	1,086,018		$	1,026,592		$	819,034
Loans 90 days or more past due [b]	65,617			61,542			65,525			60,320			60,490
TDRs 90 days or more past due	1,185			589			618			998			491
Total nonperforming loans [a]	892,790			983,173			1,152,161			1,087,910			880,015
Other real estate owned, net (OREO)	25,113			21,112			21,670			18,225			17,877
Other repossessed assets	9,540			7,587			6,900			9,380			8,601
Total nonperforming assets	$	927,443		$	1,011,872		$	1,180,731		$	1,115,515		$	906,493

TDRs accruing and past due less than 90 days	$	128,558		$	110,733		$	116,941		$	118,222		$	120,316


Total nonperforming loans as a % of loans	1.49		%	1.63		%	1.91		%	1.76		%	1.41		%
Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets	1.55			1.68			1.96			1.80			1.46
[a] Includes loans held for sale.
[b] Excludes loans classified as troubled debt restructuring (TDRs).



	Three Months Ended
	2017			2016
	March 31			December 31			September 30			June 30			March 31
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	838,293		$	862,080		$	843,051		$	822,440		$	762,673
Net charge-offs (NCO)	84,326			61,351			46,078			66,062			53,478
Provision for loan losses	80,139			37,564			65,107			86,673			113,245
Balance at end of period	$	834,106		$	838,293		$	862,080		$	843,051		$	822,440

Allowance for loan losses as a % of total loans	1.40		%	1.40		%	1.43		%	1.37		%	1.32		%
Allowance for loan losses as a % of nonperforming loans [c]	93.43			85.26			74.82			77.49			93.46
Allowance for loan losses as a % of nonperforming assets [c]	89.94			82.85			73.01			75.58			90.73

Annualized as a % of average loans:
NCO - QTD	0.57			0.40			0.30			0.43			0.35
NCO - YTD	0.57			0.37			0.36			0.39			0.35
[c] Includes loans held for sale that are on nonaccrual status.

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

	March 31, 2017								December 31, 2016								March 31, 2016
	Recorded Investment			Total Commitment			Nonaccrual		Recorded Investment			Total Commitment			Nonaccrual		Recorded Investment			Total Commitment			Nonaccrual
ENERGY PORTFOLIO
Exploration and production	$	1,485,146		$	4,075,960		$	261,262	$	1,654,565		$	4,182,861		$	308,096	$	2,140,376		$	5,034,557		$	469,882
Midstream	1,070,490			3,163,821			11,298		1,199,844			3,230,513			11,298		1,541,465			3,426,768			—
Drilling oil and support services	193,863			398,824			2,393		263,770			467,908			66,811		292,769			504,455			—
Refineries and terminals	124,872			260,770			310		128,010			262,618			339		134,211			202,659			475
Other	—			—			—		—			—			—		42,578			109,413			—
Total energy portfolio	$	2,874,371		$	7,899,375		$	275,263	$	3,246,189		$	8,143,900		$	386,544	$	4,151,399		$	9,277,852		$	470,357

	March 31, 2017								December 31, 2016								March 31, 2016
	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	51.7		%	2.5		%			51.0		%	2.7		%			51.6		%	3.4		%
Midstream	37.2			1.8					37.0			2.0					37.1			2.5
Drilling oil and support services	6.8			0.3					8.1			0.4					7.1			0.5
Refineries and terminals	4.3			0.2					3.9			0.2					3.2			0.2
Other	—			—					—			—					1.0			0.1
Total energy portfolio	100.0		%	4.8		%			100.0		%	5.4		%			100.0		%	6.7		%

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

	Three Months Ended March 31,
	2017							2016 [b]
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	60,326,849		$	591,704	3.98	%	$	62,195,963		$	577,222	3.73	%
Investment securities available for sale [a]	11,853,989			54,932		1.88		11,190,735			46,284		1.66
Investment securities held to maturity	1,168,799			9,571		3.32		1,292,776			9,838		3.06
Other earning assets [c] [d]	5,056,855			19,560		1.57		7,918,037			18,688		0.95
Total earning assets [a]	78,406,492			675,767		3.50		82,597,511			652,032		3.17
Allowance for loan losses	(850,362		)					(784,632		)
Unrealized gain (loss) on securities available for sale	(142,009		)					198
Other assets	10,262,761							10,492,029
Total assets	$	87,676,882						$	92,305,106

Liabilities and Shareholder's Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	8,190,873		$	6,131	0.30		$	7,085,934		$	3,942	0.22
Savings and money market accounts	25,218,935			22,301		0.36		25,775,565			26,743		0.42
Certificates and other time deposits	13,229,357			41,872		1.28		14,433,900			47,069		1.31
Foreign office deposits	—			—		—		127,071			61		0.19
Total interest bearing deposits	46,639,165			70,304		0.61		47,422,470			77,815		0.66
FHLB and other borrowings	3,167,805			19,068		2.44		5,064,803			18,012		1.43
Federal funds purchased and securities sold under agreement to repurchase [d]	42,855			4,897		46.34		800,243			6,157		3.09
Other short-term borrowings	2,707,802			10,086		1.51		4,025,428			13,896		1.39
Total interest bearing liabilities	52,557,627			104,355		0.81		57,312,944			115,880		0.81
Noninterest bearing deposits	20,577,690							20,057,143
Other noninterest bearing liabilities	1,688,907							2,207,049
Total liabilities	74,824,224							79,577,136
Shareholder's equity	12,852,658							12,727,970
Total liabilities and shareholder's equity	$	87,676,882						$	92,305,106

Net interest income/ net interest spread				571,412		2.69	%				536,152		2.36	%
Net yield on earning assets						2.96	%						2.61	%

Total taxable equivalent adjustment				19,979							19,270

Net interest income				$	551,433						$	516,882
[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.
[c] Beginning in the fourth quarter of 2016, interest bearing deposits with the Federal Reserve are included in earning assets. In prior periods, these balances were included with cash and due from banks in the cash and cash equivalents line, consistent with the Condensed Consolidated Balance Sheet presentation. Prior periods have been reclassified to conform to current period presentation.
[d] Yield/rate reflects impact of balance sheet offsetting.

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

	Three Months							Three Months Ended
	Ended March 31,					%		2017		2016
	2017		2016 [a]			Change		March 31		December 31			September 30		June 30		March 31 [a]
NONINTEREST INCOME
Service charges on deposit accounts	$	55,168	$	51,425		7		$	55,168	$	55,901		$	55,047	$	51,921	$	51,425
Card and merchant processing fees	29,992		29,742			1		29,992		31,161			31,256		31,509		29,742
Retail investment sales	27,471		22,567			22		27,471		23,293			30,137		26,985		22,567
Investment banking and advisory fees	28,301		23,604			20		28,301		20,792			34,385		28,335		23,604
Money transfer income	25,197		24,425			3		25,197		28,632			25,058		26,477		24,425
Asset management fees	9,771		8,805			11		9,771		8,906			8,778		8,386		8,805
Corporate and correspondent investment sales	8,915		4,413			102		8,915		3,199			6,974		10,103		4,413
Mortgage banking	2,870		(3,434		)	NM		2,870		16,086			8,242		602		(3,434		)
Bank owned life insurance	4,169		4,416			(6	)	4,169		4,202			4,170		4,455		4,416
Other	52,833		78,889			(33	)	52,833		68,881			59,718		67,789		78,889
	244,687		244,852			—		244,687		261,053			263,765		256,562		244,852
Investment securities gains, net	—		8,353			(100	)	—		—			—		21,684		8,353
Loss on prepayment of FHLB and other borrowings, net	—		—			—		—		(295		)	—		—		—
Total noninterest income	$	244,687	$	253,205		(3	)	$	244,687	$	260,758		$	263,765	$	278,246	$	253,205

NONINTEREST EXPENSE
Salaries, benefits and commissions	$	268,015	$	279,769		(4	)	$	268,015	$	283,609		$	279,132	$	277,166	$	279,769
Professional services	57,807		56,367			3		57,807		63,810			63,628		58,401		56,367
Equipment	61,630		60,441			2		61,630		62,627			59,697		59,508		60,441
Net occupancy	42,101		39,272			7		42,101		40,116			41,610		39,999		39,272
Money transfer expense	16,324		15,600			5		16,324		17,426			16,680		17,768		15,600
Marketing	13,545		12,709			7		13,545		13,018			13,316		11,506		12,709
Communications	5,219		5,175			1		5,219		5,406			5,002		5,463		5,175
Amortization of intangibles	2,525		4,093			(38	)	2,525		4,093			4,093		4,094		4,093
Goodwill impairment	—		—			—		—		59,901			—		—		—
Other	82,146		118,718			(31	)	82,146		64,064			73,113		67,132		118,718
Total noninterest expense	$	549,312	$	592,144		(7	)	$	549,312	$	614,070		$	556,271	$	541,037	$	592,144
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 March 31,
	2017			2016 [a]
NON-GAAP RECONCILIATION

Computation of Average Tangible Equity:
Total stockholder's equity (average)	$	12,852,658		$	12,727,970
Less: Goodwill and other intangibles (average)	5,049,493			5,115,041
Average tangible equity [B]	$	7,803,165		$	7,612,929
Net income [A]	$	120,823		$	39,267
Return on average tangible equity ([A]/[B], annualized)	6.28		%	2.07		%
[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 March 31, 2017
	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	$	22,472	$	11,804	$	4,405	$	540,407	$	31,644	$	24,049,936	$	24,660,668	$	39,411
Real estate – construction	487		25		3,640		1,028		114		2,222,111		2,227,405		(57		)
Commercial real estate – mortgage	13,872		1,226		4,602		89,908		4,821		11,284,392		11,398,821		(741		)
Residential real estate – mortgage	61,234		22,337		2,653		140,342		58,867		12,832,343		13,117,776		1,195
Equity lines of credit	9,144		3,619		1,478		32,675		—		2,513,579		2,560,495		1,166
Equity loans	5,105		1,592		376		12,626		33,635		367,028		420,362		848
Credit card	6,262		4,719		12,453		—		—		546,877		570,311		9,818
Consumer – direct	12,025		4,866		4,874		637		662		1,306,178		1,329,242		16,818
Consumer – indirect	68,851		16,161		7,463		7,955		—		2,978,318		3,078,748		15,899
Covered loans	6,448		3,479		23,673		410		—		307,929		341,939		(31		)
Total loans	$	205,900	$	69,828	$	65,617	$	825,988	$	129,743	$	58,408,691	$	59,705,767	$	84,326
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	74,741	$	74,741	$	—



	At or Quarter Ended December 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	$	23,788	$	6,581	$	2,891	$	596,454	$	8,726	$	24,483,562	$	25,122,002	$	14,413
Real estate – construction	918		50		2,007		1,239		2,393		2,118,709		2,125,316		(383		)
Commercial real estate – mortgage	3,791		3,474		—		71,921		4,860		11,126,614		11,210,660		280
Residential real estate – mortgage	57,359		28,450		3,356		140,303		59,893		12,970,633		13,259,994		1,044
Equity lines of credit	7,922		4,583		2,950		33,453		—		2,494,870		2,543,778		641
Equity loans	5,615		1,843		467		13,635		34,746		389,403		445,709		512
Credit card	6,411		5,042		10,954		—		—		582,474		604,881		9,680
Consumer – direct	13,338		4,563		4,482		789		704		1,230,765		1,254,641		15,343
Consumer – indirect	85,198		22,833		7,197		5,926		—		3,013,794		3,134,948		19,902
Covered loans	7,311		1,351		27,238		730		—		322,704		359,334		(81		)
Total loans	$	211,651	$	78,770	$	61,542	$	864,450	$	111,322	$	58,733,528	$	60,061,263	$	61,351
Loans held for sale	$	—	$	—	$	—	$	56,592	$	—	$	105,257	$	161,849	$	—



	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		8,460
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		15,197
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	$	—

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

	2017			2016
	March 31			December 31			September 30			June 30			March 31 [a]
Assets:
Cash and due from banks	$	1,093,797		$	1,284,261		$	1,130,610		$	1,581,187		$	1,108,416
Interest bearing funds with the Federal Reserve	2,669,135			1,830,078			2,923,813			3,248,576			4,027,867
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits	197,000			137,447			372,268			319,644			233,411
Cash and cash equivalents	3,959,932			3,251,786			4,426,691			5,149,407			5,369,694
Trading account assets	2,892,254			3,144,600			4,051,461			4,355,025			4,358,533
Investment securities available for sale	11,846,618			11,665,055			11,516,885			11,359,159			11,265,797
Investment securities held to maturity	1,158,785			1,203,217			1,240,850			1,258,253			1,267,953
Loans held for sale	74,741			161,849			101,843			108,432			96,784
Loans	59,705,767			60,061,263			60,211,283			61,679,943			62,104,690
Allowance for loan losses	(834,106		)	(838,293		)	(862,080		)	(843,051		)	(822,440		)
Net loans	58,871,661			59,222,970			59,349,203			60,836,892			61,282,250
Premises and equipment, net	1,273,226			1,300,054			1,287,457			1,290,738			1,297,539
Bank owned life insurance	715,883			711,939			712,422			708,143			704,254
Goodwill	4,983,296			4,983,296			5,043,197			5,043,197			5,043,197
Other assets	1,532,837			1,435,187			1,626,829			1,643,910			1,534,788
Total assets	$	87,309,233		$	87,079,953		$	89,356,838		$	91,753,156		$	92,220,789
Liabilities:
Deposits:
Noninterest bearing	$	21,476,890		$	20,332,792		$	20,585,598		$	20,132,164		$	20,416,248
Interest bearing	46,052,748			46,946,741			47,001,739			47,618,154			48,503,973
Total deposits	67,529,638			67,279,533			67,587,337			67,750,318			68,920,221
FHLB and other borrowings	2,993,222			3,001,551			3,671,861			5,098,048			4,383,454
Federal funds purchased and securities sold under agreements to repurchase	71,559			39,052			165,573			386,343			893,786
Other short-term borrowings	2,642,539			2,802,977			3,591,223			4,352,428			3,924,781
Accrued expenses and other liabilities	1,186,776			1,206,133			1,521,654			1,439,023			1,375,370
Total liabilities	74,423,734			74,329,246			76,537,648			79,026,160			79,497,612
Shareholder’s Equity:
Preferred stock	229,475			229,475			229,475			229,475			229,475
Common stock — $0.01 par value	2,230			2,230			2,230			2,230			2,230
Surplus	14,982,125			14,985,673			15,020,937			15,022,974			15,152,077
Retained deficit	(2,207,060		)	(2,327,440		)	(2,416,402		)	(2,536,230		)	(2,658,214		)
Accumulated other comprehensive loss	(150,781		)	(168,252		)	(46,644		)	(20,500		)	(31,945		)
Total BBVA Compass Bancshares, Inc. shareholder’s equity	12,855,989			12,721,686			12,789,596			12,697,949			12,693,623
Noncontrolling interests	29,510			29,021			29,594			29,047			29,554
Total shareholder’s equity	12,885,499			12,750,707			12,819,190			12,726,996			12,723,177
Total liabilities and shareholder’s equity	$	87,309,233		$	87,079,953		$	89,356,838		$	91,753,156		$	92,220,789
[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
	2017		2016
	March 31		December 31			September 30		June 30		March 31 [a]
Interest income:
Interest and fees on loans	$	574,712	$	558,680		$	557,996	$	559,170	$	561,083
Interest on investment securities available for sale	54,878		60,868			48,382		36,442		46,197
Interest on investment securities held to maturity	6,639		6,664			6,675		6,759		6,795
Interest on federal funds sold, securities purchased under agreements to resell and interest bearing deposits	9,262		7,664			4,563		4,346		4,366
Interest on trading account assets	10,297		13,150			12,926		13,412		14,321
Total interest income	655,788		647,026			630,542		620,129		632,762
Interest expense:
Interest on deposits	70,304		73,846			76,031		76,933		77,815
Interest on FHLB and other borrowings	19,068		23,825			21,315		19,592		18,012
Interest on federal funds purchased and securities sold under agreements to repurchase	4,897		4,640			4,934		5,434		6,157
Interest on other short-term borrowings	10,086		12,963			13,453		13,932		13,896
Total interest expense	104,355		115,274			115,733		115,891		115,880
Net interest income	551,433		531,752			514,809		504,238		516,882
Provision for loan losses	80,139		37,564			65,107		86,673		113,245
Net interest income after provision for loan losses	471,294		494,188			449,702		417,565		403,637
Noninterest income:
Service charges on deposit accounts	55,168		55,901			55,047		51,921		51,425
Card and merchant processing fees	29,992		31,161			31,256		31,509		29,742
Retail investment sales	27,471		23,293			30,137		26,985		22,567
Investment banking and advisory fees	28,301		20,792			34,385		28,335		23,604
Money transfer income	25,197		28,632			25,058		26,477		24,425
Asset management fees	9,771		8,906			8,778		8,386		8,805
Corporate and correspondent investment sales	8,915		3,199			6,974		10,103		4,413
Mortgage banking	2,870		16,086			8,242		602		(3,434		)
Bank owned life insurance	4,169		4,202			4,170		4,455		4,416
Investment securities gains, net	—		—			—		21,684		8,353
Loss on prepayment of FHLB and other borrowings	—		(295		)	—		—		—
Other	52,833		68,881			59,718		67,789		78,889
Total noninterest income	244,687		260,758			263,765		278,246		253,205
Noninterest expense:
Salaries, benefits and commissions	268,015		283,609			279,132		277,166		279,769
Professional services	57,807		63,810			63,628		58,401		56,367
Equipment	61,630		62,627			59,697		59,508		60,441
Net occupancy	42,101		40,116			41,610		39,999		39,272
Money transfer expense	16,324		17,426			16,680		17,768		15,600
Marketing	13,545		13,018			13,316		11,506		12,709
Communications	5,219		5,406			5,002		5,463		5,175
Amortization of intangibles	2,525		4,093			4,093		4,094		4,093
Goodwill impairment	—		59,901			—		—		—
Other	82,146		64,064			73,113		67,132		118,718
Total noninterest expense	549,312		614,070			556,271		541,037		592,144
Net income before income tax expense	166,669		140,876			157,196		154,774		64,698
Income tax expense	45,846		51,473			36,845		32,272		25,431
Net income	120,823		89,403			120,351		122,502		39,267
Less: net income attributable to noncontrolling interests	443		441			523		518		528
Net income attributable to BBVA Compass Bancshares, Inc.	$	120,380	$	88,962		$	119,828	$	121,984	$	38,739
[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 - April 27, 2017

Attached files

BBVA USA Bancshares, Inc. Reports