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.	bbvacompass093020178k.htm

Exhibit 99.1

October 27, 2017

Net income up 45 percent for nine months

BBVA Compass reports third quarter results


•	Quarterly net income totals $130 million; includes $60 million (pre-tax) of provision expense related to Hurricanes Harvey and Irma


◦	Net income up 8 percent from a year ago and 45 percent on a year-to-date basis


◦	Return on average assets and return on average tangible equity¹ for the quarter were 0.59 percent and 6.40 percent, respectively


•	Total revenue increases 8 percent from prior year levels and 6 percent (annualized) from 2Q17 levels


◦	Net interest income (NII) increases $75 million or 14 percent from a year ago


◦	Net interest margin (FTE) increases 51 basis points from prior year and up 47 basis points on a year-to-date basis


•	Noninterest expense growth well contained at 3 percent, flat on a year-to-date basis


•	Positive operating leverage leads to record quarterly operating income¹ of $273 million, up 23 percent from 3Q16 levels and 22 percent on a year-to-date basis


•	Strong loan pipeline results in targeted balance sheet growth


◦	Average total loans of $60.3 billion down 1 percent from prior year but up 2 percent (annualized) on a linked quarter basis


◦	Newly funded customer loans of $12.5 billion in 2017, up 13 percent from year ago levels


◦	Average total deposits of $65.6 billion down 4 percent from prior year


▪	Average noninterest bearing deposits up 2 percent


▪	Noninterest bearing deposits represent 32 percent of average total deposits


•	Key credit quality indicators show continued improvement


◦	Nonaccrual loans drop 12 percent from 2Q17 levels led by a 17 percent decline in energy portfolio nonaccrual loans


◦	Nonperforming loan ratio at 1.18 percent, down 19 basis points from 2Q17


◦	Allowance to loan ratio at 1.41 percent and coverage ratio at 119 percent

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $130 million for the third quarter of 2017, an 8 percent increase from the $120 million earned during the third quarter of 2016. Included in third quarter 2017 results is approximately $60 million (pre-tax) of provision expense related to Hurricanes Harvey and Irma. Return on average assets and return on average tangible equity¹ for the third quarter of 2017 were 0.59 percent and 6.40 percent, respectively.

Net income for the first nine months of 2017 totaled $409 million, an increase of 45 percent from the $282 million earned during the first nine months of 2016. Return on average assets and return on average tangible equity¹ for the first nine months of 2017 were 0.62 percent and 6.87 percent, respectively.

“Our ability to deliver another solid quarter while navigating the devastating impact of not one but two hurricanes is a testament to the strength and resiliency of the team we’ve built at BBVA Compass,” said Onur Genç, president and CEO of BBVA Compass. “While the safety and well-being of everyone impacted, including many of our own employees, was our top priority, we also recognized the need for our customers to have access to their banking accounts and the emphasis we’ve placed on building robust digital capabilities was certainly helpful during this time. Our attention now is focused on the recovery process and both BBVA Compass and our parent company, BBVA, have committed help in supporting these efforts.”

“Overall, results for the quarter and the underlying trends were very positive,” Genç noted. “Revenue growth was solid, particularly with respect to net interest income, while higher investment banking activity drove fee income growth from second quarter levels. While we did incur higher provision expense as a result of the hurricanes, underlying trends in our loan portfolio resulted in a significant improvement in many of our key credit quality measures. Increasing activity and building momentum for next year is our primary focus as we head into the final quarter of 2017.”

“The increase in net interest income certainly reflects the benefit of higher short-term interest rates and the interest rate sensitive position of our balance sheet, which positively impacted earning asset yields, particularly loan yields,” Genç noted. “At the same time, it also reflects our continued efforts focused on prudently managing spreads and maintaining a disciplined deposit pricing strategy.”

Total revenue for the quarter was $844 million, an increase of 8 percent from third quarter 2016 levels and an increase of $12 million or 6 percent (annualized) on a linked-quarter basis with the second quarter of 2017. Revenue growth was driven by an increase in net interest income. Net interest income totaled $589 million, an increase of $75 million or 14 percent from the third quarter of 2016. The percent net interest margin in the third quarter was 3.13 percent, up 51 basis points from the third quarter of 2016. On a year-to-date basis, the percent net interest margin was 3.07 percent, an increase of 47 basis points compared to the same timeframe a year ago.

Noninterest income for the quarter totaled $255 million, a decrease of 3 percent compared to the $264 million recorded in the third quarter of 2016. Positive performances in asset management fees, service charges on deposit accounts, and card and merchant processing fees were offset by more interest rate and market sensitive fee-based businesses. Conversely, on a linked quarter basis noninterest income was up 14 percent (annualized) primarily as a result of strong performance in investment banking and advisory fees.

Noninterest expense totaled $574 million, an increase of 3 percent compared to the year ago quarter. Included in noninterest expense in the third quarter of 2017 is approximately $4 million of expenses associated with Hurricanes Harvey and Irma related to property damage not covered by insurance and relief efforts and commitments made to employees and charitable organizations. Overall expense growth has been well-contained and on a year-to-date percentage basis is flat compared to the same period a year ago.

“While overall balance sheet growth has been somewhat muted given our focus on managing spreads and optimizing capital consumption, our loan pipeline is strong,” Genç noted. “During the first nine months we funded $12.5 billion of customer loans, an increase of 13 percent compared to the same time last year. Particularly encouraging this quarter has been the results of our Express Personal Loan product, an uncollateralized consumer loan that is designed to provide same day approval and funding when applied for on-line. We believe the success of this product provides us a roadmap that has proven to work in the digital space.”

Average total loans for the third quarter of 2017 were $60.3 billion, a 2 percent (annualized) increase on a linked quarter basis and a 1 percent decrease from the third quarter of 2016. During the third quarter, approximately $5 billion of customer loans were funded, a 46 percent increase from the third quarter a year ago. Average total deposits for the quarter decreased 4 percent to $65.6

billion, primarily as a result of a decrease in higher rate deposits. At the same time, average noninterest bearing demand deposits increased 2 percent and now represents 32 percent of average total deposits.

Notwithstanding the additional provision expense associated with the hurricanes, key credit quality indicators continued to improve, repeating the trend of the past several quarters. Nonperforming loans totaled $711 million at the end of the quarter, a decrease of $110 million compared to second quarter 2017 and $272 million since the end of the fourth quarter of 2016. Nonperforming loans in the company’s primarily reserved-based energy portfolio continued to decline, dropping $37 million during the quarter. Nonperforming loans as a percentage of total loans were 1.18 percent, down from 1.37 percent at the end of the second quarter of 2017 and 1.63 percent at year-end 2016. Net charge-offs as a percentage of average loans totaled 47 basis points in the quarter compared to 42 basis points in the second quarter of 2017. The allowance for loan losses as a percentage of total loans ended the quarter at 1.41 percent while the coverage ratio of nonperforming loans stood at 119 percent.

Total shareholder’s equity at the end of the third quarter totaled $13.1 billion, a 2 percent increase from $12.8 billion at the end of the third quarter of 2016. The CET1 ratio rose to 12.07 percent² at the end of the third quarter of 2017, up 58 basis points from the end of the fourth quarter of 2016 and 79 basis points from the end of the third quarter of 2016.

^{________________________________}

¹ Operating income and average tangible equity are non-GAAP financial measures that we believe aid in understanding certain areas of our performance. The calculation of these measures is included on the page titled Non-GAAP Reconciliation.

² Regulatory ratios at September 30, 2017, are estimated.



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

About BBVA Compass

BBVA Compass is a Sunbelt-based financial institution that operates 649 branches, including 336 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 37 in Colorado and 18 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 (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States; and it is also the leading shareholder in Garanti, Turkey’s biggest bank for market capitalization. Its diversified business is focused on high-growth markets and it 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. More information about BBVA Group can be found at 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 September 30,						%		Nine Months Ended September 30,						%
	2017			2016			Change		2017			2016			Change
EARNINGS SUMMARY
Net interest income	$	589,361		$	514,809		14		$	1,726,622		$	1,535,929		12
Noninterest income [a]	254,761			263,765			(3	)	745,773			765,179			(3	)
Total revenue [a]	844,122			778,574			8		2,472,395			2,301,108			7
Investment securities gain, net	3,033			—			NM		3,033			30,037			(90	)
Provision for loan losses	103,434			65,107			59		228,858			265,025			(14	)
Noninterest expense	573,962			556,271			3		1,695,759			1,689,452			—
Pretax income	169,759			157,196			8		550,811			376,668			46
Income tax expense	39,308			36,845			7		142,097			94,548			50
Net income	130,451			120,351			8		408,714			282,120			45
Net income attributable to noncontrolling interests	584			523			12		1,458			1,569			(7	)
Net income attributable to BBVA Compass Bancshares, Inc.	$	129,867		$	119,828		8		$	407,256		$	280,551		45

SELECTED RATIOS
Return on average assets	0.59		%	0.53		%			0.62		%	0.41		%
Return on average tangible equity [b]	6.40			6.21					6.87			4.92
Average common equity to average assets	14.74			13.84					14.56			13.64
Average loans to average total deposits	91.89			89.82					90.93			91.03
Common equity tier I capital (CET1) [c]	12.07			11.28					12.07			11.28
Tier I capital ratio [c]	12.43			11.64					12.43			11.64
Total capital ratio [c]	14.64			14.18					14.64			14.18
Leverage ratio [c]	10.00			9.08					10.00			9.08
[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.
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,				%
	2017		2016		Change		2017		2016		Change		2017		2016		Change
BALANCE SHEET HIGHLIGHTS
Total loans	$	60,271,504	$	61,060,433	(1	)	$	60,166,823	$	61,867,590	(3	)	$	60,392,987	$	60,313,126	—
Total investment securities	13,363,707		12,648,198		6		13,122,371		12,542,222		5		13,345,681		12,757,735		5
Earning assets	77,344,927		81,064,638		(5	)	77,927,326		82,045,061		(5	)	76,768,653		77,257,835		(1	)
Total assets	87,299,979		90,900,339		(4	)	87,482,356		91,878,427		(5	)	85,683,660		89,356,838		(4	)
Noninterest bearing demand deposits	21,072,789		20,715,562		2		20,922,150		20,432,380		2		21,094,235		20,585,598		2
Interest bearing transaction accounts	32,108,141		32,487,598		(1	)	32,689,955		32,773,911		—		32,637,845		32,706,487		—
Total transaction accounts	53,180,930		53,203,160		—		53,612,105		53,206,291		1		53,732,080		53,292,085		1
Total deposits	65,589,724		67,979,739		(4	)	66,166,611		67,967,135		(3	)	67,213,567		67,587,337		(1	)
Total shareholder's equity	13,130,915		12,810,740		2		12,997,116		12,763,461		2		13,115,903		12,819,190		2

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

	2017									2016
	September 30			June 30			March 31			December 31			September 30
NONPERFORMING ASSETS
Nonaccrual loans [a]	$	666,812		$	760,313		$	825,988		$	921,042		$	1,086,018
Loans 90 days or more past due [b]	43,049			59,434			65,617			61,542			65,525
TDRs 90 days or more past due	963			969			1,185			589			618
Total nonperforming loans [a]	710,824			820,716			892,790			983,173			1,152,161
Other real estate owned, net (OREO)	22,012			22,965			25,113			21,112			21,670
Other repossessed assets	11,443			12,298			9,540			7,587			6,900
Total nonperforming assets	$	744,279		$	855,979		$	927,443		$	1,011,872		$	1,180,731

TDRs accruing and past due less than 90 days	$	95,521		$	97,088		$	128,558		$	110,733		$	116,941


Total nonperforming loans as a % of loans	1.18		%	1.37		%	1.49		%	1.63		%	1.91		%
Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets	1.23			1.43			1.55			1.68			1.96
[a] Includes loans held for sale.
[b] Excludes loans classified as troubled debt restructuring (TDRs).



	Three Months Ended
	2017									2016
	September 30			June 30			March 31			December 31			September 30
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	816,952		$	834,106		$	838,293		$	862,080		$	843,051
Net charge-offs (NCO)	71,267			62,439			84,326			61,351			46,078
Provision for loan losses	103,434			45,285			80,139			37,564			65,107
Balance at end of period	$	849,119		$	816,952		$	834,106		$	838,293		$	862,080

Allowance for loan losses as a % of total loans	1.41		%	1.36		%	1.40		%	1.40		%	1.43		%
Allowance for loan losses as a % of nonperforming loans [c]	119.46			99.54			93.43			85.26			74.82
Allowance for loan losses as a % of nonperforming assets [c]	114.09			95.44			89.94			82.85			73.01

Annualized as a % of average loans:
NCO - QTD	0.47			0.42			0.57			0.40			0.30
NCO - YTD	0.48			0.49			0.57			0.37			0.36
[c] Includes loans held for sale that are on nonaccrual status.

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

	September 30, 2017								December 31, 2016								September 30, 2016
	Recorded Investment			Total Commitment			Nonaccrual		Recorded Investment			Total Commitment			Nonaccrual		Recorded Investment			Total Commitment			Nonaccrual
ENERGY PORTFOLIO
Exploration and production	$	1,630,303		$	4,080,635		$	178,449	$	1,654,565		$	4,182,861		$	308,096	$	1,722,052		$	4,244,802		$	511,520
Midstream	976,845			3,011,822			—		1,199,844			3,230,513			11,298		1,207,650			3,209,931			11,552
Drilling oil and support services	179,636			373,389			2,350		263,770			467,908			66,811		261,748			468,728			64,771
Refineries and terminals	165,453			266,081			205		128,010			262,618			339		130,689			254,130			383
Total energy portfolio	$	2,952,237		$	7,731,927		$	181,004	$	3,246,189		$	8,143,900		$	386,544	$	3,322,139		$	8,177,591		$	588,226

	September 30, 2017								December 31, 2016								September 30, 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	55.2		%	2.7		%			51.0		%	2.7		%			51.8		%	2.9		%
Midstream	33.1			1.6					37.0			2.0					36.4			2.0
Drilling oil and support services	6.1			0.3					8.1			0.4					7.9			0.4
Refineries and terminals	5.6			0.3					3.9			0.2					3.9			0.2
Total energy portfolio	100.0		%	4.9		%			100.0		%	5.4		%			100.0		%	5.5		%

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

	Three Months Ended September 30,
	2017							2016
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	60,271,504		$	642,670	4.23	%	$	61,060,433		$	574,748	3.74	%
Investment securities available for sale [a]	12,317,271			53,939		1.74		11,373,321			48,450		1.69
Investment securities held to maturity	1,122,893			10,088		3.56		1,249,282			9,701		3.09
Other earning assets [b] [c]	3,709,716			17,804		1.90		7,356,007			17,490		0.95
Total earning assets [a]	77,421,384			724,501		3.71		81,039,043			650,389		3.19
Allowance for loan losses	(821,227		)					(848,067		)
Unrealized gain (loss) on securities available for sale	(76,457		)					25,595
Other assets	10,776,279							10,683,768
Total assets	$	87,299,979						$	90,900,339

Liabilities and Shareholder's Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	7,557,010		$	6,819	0.36		$	6,824,519		$	4,077	0.24
Savings and money market accounts	24,551,131			27,962		0.45		25,663,079			24,395		0.38
Certificates and other time deposits	12,408,794			40,302		1.29		14,670,360			47,507		1.29
Foreign office deposits	—			—		—		106,219			52		0.19
Total interest bearing deposits	44,516,935			75,083		0.67		47,264,177			76,031		0.64
FHLB and other borrowings	5,053,340			29,904		2.35		4,121,742			21,315		2.06
Federal funds purchased and securities sold under agreement to repurchase [c]	52,034			4,623		35.25		232,451			4,934		8.44
Other short-term borrowings	1,386,329			3,641		1.04		3,737,212			13,453		1.43
Total interest bearing liabilities	51,008,638			113,251		0.88		55,355,582			115,733		0.83
Noninterest bearing deposits	21,072,789							20,715,562
Other noninterest bearing liabilities	2,087,637							2,018,455
Total liabilities	74,169,064							78,089,599
Shareholder's equity	13,130,915							12,810,740
Total liabilities and shareholder's equity	$	87,299,979						$	90,900,339

Net interest income/ net interest spread				611,250		2.83	%				534,656		2.36	%
Net yield on earning assets						3.13	%						2.62	%

Total taxable equivalent adjustment				21,889							19,847

Net interest income				$	589,361						$	514,809
[a] Excludes adjustment for market valuation.
[b] Beginning in the fourth quarter of 2016, interest bearing deposits with the Federal Reserve are included in earning assets. Previous to this change, 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.
[c] Yield/rate reflects impact of balance sheet offsetting.



	Nine Months Ended September 30,
	2017							2016
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	60,166,823		$	1,859,740	4.13	%	$	61,867,590		$	1,727,822	3.73	%
Investment securities available for sale [a]	12,082,938			164,483		1.82		11,258,000			131,253		1.56
Investment securities held to maturity	1,141,894			29,620		3.47		1,269,161			29,293		3.08
Other earning assets [b] [c]	4,638,132			59,220		1.71		7,635,249			53,936		0.94
Total earning assets [a]	78,029,787			2,113,063		3.62		82,030,000			1,942,304		3.16
Allowance for loan losses	(835,915		)					(823,372		)
Unrealized gain (loss) on securities available for sale	(102,461		)					15,061
Other assets	10,390,945							10,656,738
Total assets	$	87,482,356						$	91,878,427

Liabilities and Shareholder's Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	7,863,401		$	19,211	0.33		$	6,912,147		$	11,867	0.23
Savings and money market accounts	24,826,554			72,643		0.39		25,861,764			75,896		0.39
Certificates and other time deposits	12,554,506			119,447		1.27		14,652,400			142,856		1.30
Foreign office deposits	—			—		—		108,444			160		0.20
Total interest bearing deposits	45,244,461			211,301		0.62		47,534,755			230,779		0.65
FHLB and other borrowings	4,115,511			71,422		2.32		4,543,350			58,919		1.73
Federal funds purchased and securities sold under agreement to repurchase [c]	64,676			16,462		34.03		569,772			16,525		3.87
Other short-term borrowings	2,239,427			24,233		1.45		3,912,069			41,281		1.41
Total interest bearing liabilities	51,664,075			323,418		0.84		56,559,946			347,504		0.82
Noninterest bearing deposits	20,922,150							20,432,380
Other noninterest bearing liabilities	1,899,015							2,122,640
Total liabilities	74,485,240							79,114,966
Shareholder's equity	12,997,116							12,763,461
Total liabilities and shareholder's equity	$	87,482,356						$	91,878,427

Net interest income/ net interest spread				1,789,645		2.78	%				1,594,800		2.34	%
Net yield on earning assets						3.07	%						2.60	%

Total taxable equivalent adjustment				63,023							58,871

Net interest income				$	1,726,622						$	1,535,929
[a] Excludes adjustment for market valuation.
[b] Beginning in the fourth quarter of 2016, interest bearing deposits with the Federal Reserve are included in earning assets. Previous to this change, 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.
[c] Yield/rate reflects impact of balance sheet offsetting.

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

	Nine Months						Three Months Ended
	Ended September 30,				%		2017						2016
	2017		2016		Change		September 30		June 30		March 31		December 31			September 30
NONINTEREST INCOME
Service charges on deposit accounts	$	166,040	$	158,393	5		$	55,953	$	54,919	$	55,168	$	55,901		$	55,047
Card and merchant processing fees	94,749		92,507		2		32,297		32,460		29,992		31,161			31,256
Retail investment sales	82,876		79,689		4		26,817		28,588		27,471		23,293			30,137
Investment banking and advisory fees	78,744		86,324		(9	)	30,500		19,943		28,301		20,792			34,385
Money transfer income	77,408		75,960		2		24,881		27,330		25,197		28,632			25,058
Asset management fees	30,162		25,969		16		10,336		10,055		9,771		8,906			8,778
Corporate and correspondent investment sales	26,249		21,490		22		5,145		12,189		8,915		3,199			6,974
Mortgage banking	9,636		5,410		78		3,450		3,316		2,870		16,086			8,242
Bank owned life insurance	12,711		13,041		(3	)	4,322		4,220		4,169		4,202			4,170
Other	167,198		206,396		(19	)	61,060		53,305		52,833		68,881			59,718
	745,773		765,179		(3	)	254,761		246,325		244,687		261,053			263,765
Investment securities gains, net	3,033		30,037		(90	)	3,033		—		—		—			—
Loss on prepayment of FHLB and other borrowings, net	—		—		—		—		—		—		(295		)	—
Total noninterest income	$	748,806	$	795,216	(6	)	$	257,794	$	246,325	$	244,687	$	260,758		$	263,765

NONINTEREST EXPENSE
Salaries, benefits and commissions	$	835,825	$	836,067	—		$	279,384	$	288,426	$	268,015	$	283,609		$	279,132
Professional services	187,422		178,396		5		64,775		64,840		57,807		63,810			63,628
Equipment	184,691		179,646		3		60,656		62,405		61,630		62,627			59,697
Net occupancy	125,568		120,881		4		42,227		41,240		42,101		40,116			41,610
Money transfer expense	50,069		50,048		—		15,938		17,807		16,324		17,426			16,680
Marketing	44,270		37,531		18		14,996		15,729		13,545		13,018			13,316
Communications	15,584		15,640		—		5,084		5,281		5,219		5,406			5,002
Amortization of intangibles	7,575		12,280		(38	)	2,525		2,525		2,525		4,093			4,093
Goodwill impairment	—		—		—		—		—		—		59,901			—
Other	244,755		258,963		(5	)	88,377		74,232		82,146		64,064			73,113
Total noninterest expense	$	1,695,759	$	1,689,452	—		$	573,962	$	572,485	$	549,312	$	614,070		$	556,271

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
NON-GAAP RECONCILIATION

Computation of Operating Income:
Net interest income (GAAP)	$	589,361		$	514,809		$	1,726,622		$	1,535,929
Plus: noninterest income (GAAP)	257,794			263,765			748,806			795,216
Less: noninterest expense (GAAP)	573,962			556,271			1,695,759			1,689,452
Operating income (non-GAAP)	$	273,193		$	222,303		$	779,669		$	641,693


Computation of Average Tangible Equity:
Total stockholder's equity (average)	$	13,130,915		$	12,810,740		$	12,997,116		12,763,461
Less: Goodwill and other intangibles (average)	5,041,385			5,101,819			5,045,419			5,108,852
Average tangible equity [B]	$	8,089,530		$	7,708,921		$	7,951,697		7,654,609
Net income [A]	$	130,451		$	120,351		$	408,714		$	282,120
Return on average tangible equity ([A]/[B], annualized)	6.40		%	6.21		%	6.87		%	4.92		%

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

	At or Quarter Ended September 30, 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	$	51,581	$	6,351	$	6,072	$	324,071	$	1,259	$	24,702,608	$	25,091,942	$	14,695
Real estate – construction	661		94		2,955		1,877		106		2,241,451		2,247,144		(29		)
Commercial real estate – mortgage	21,324		1,089		3,686		108,040		4,645		11,203,594		11,342,378		7,707
Residential real estate – mortgage	57,582		32,606		2,558		175,490		59,086		13,071,181		13,398,503		1,717
Equity lines of credit	11,118		4,824		2,179		34,416		237		2,564,538		2,617,312		179
Equity loans	3,470		1,798		840		11,305		30,574		335,389		383,376		(7		)
Credit card	6,832		4,777		10,692		—		—		568,674		590,975		10,591
Consumer – direct	17,563		6,796		5,209		2,746		577		1,571,505		1,604,396		18,281
Consumer – indirect	81,534		23,070		8,858		8,867		—		2,916,849		3,039,178		18,133
Covered loans	—		—		—		—		—		—		—		—
Total loans	$	251,665	$	81,405	$	43,049	$	666,812	$	96,484	$	59,175,789	$	60,315,204	$	71,267
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	77,783	$	77,783	$	—



	At or Quarter Ended June 30, 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	$	32,398	$	6,532	$	4,770	$	448,565	$	766	$	24,117,488	$	24,610,519	$	20,047
Real estate – construction	4,829		474		2,251		1,993		110		2,279,166		2,288,823		(797		)
Commercial real estate – mortgage	8,966		10,138		3,617		117,893		4,725		11,375,494		11,520,833		(1,386		)
Residential real estate – mortgage	54,911		31,227		3,043		141,482		59,490		12,789,171		13,079,324		1,404
Equity lines of credit	8,560		4,933		1,630		29,347		236		2,535,194		2,579,900		795
Equity loans	4,109		1,202		320		11,015		32,110		346,093		394,849		209
Credit card	5,446		4,015		11,738		—		—		555,621		576,820		10,678
Consumer – direct	16,134		6,032		4,187		706		620		1,419,967		1,447,646		16,899
Consumer – indirect	75,605		18,189		5,681		8,964		—		2,952,843		3,061,282		14,590
Covered loans	3,438		308		22,197		348		—		294,873		321,164		—
Total loans	$	214,396	$	83,050	$	59,434	$	760,313	$	98,057	$	58,665,910	$	59,881,160	$	62,439
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	74,558	$	74,558	$	—



	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	$	—

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

	2017									2016
	September 30			June 30			March 31			December 31			September 30
Assets:
Cash and due from banks	$	1,145,745		$	1,073,646		$	1,093,797		$	1,284,261		$	1,130,610
Interest bearing funds with the Federal Reserve	2,400,533			2,120,285			2,669,135			1,830,078			2,923,813
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits	188,380			182,215			197,000			137,447			372,268
Cash and cash equivalents	3,734,658			3,376,146			3,959,932			3,251,786			4,426,691
Trading account assets	572,104			2,651,083			2,892,254			3,144,600			4,051,461
Investment securities available for sale	12,268,309			12,142,844			11,846,618			11,665,055			11,516,885
Investment securities held to maturity	1,077,372			1,143,171			1,158,785			1,203,217			1,240,850
Loans held for sale	77,783			74,558			74,741			161,849			101,843
Loans	60,315,204			59,881,160			59,705,767			60,061,263			60,211,283
Allowance for loan losses	(849,119		)	(816,952		)	(834,106		)	(838,293		)	(862,080		)
Net loans	59,466,085			59,064,208			58,871,661			59,222,970			59,349,203
Premises and equipment, net	1,226,747			1,253,516			1,273,226			1,300,054			1,287,457
Bank owned life insurance	720,693			718,938			715,883			711,939			712,422
Goodwill	4,983,296			4,983,296			4,983,296			4,983,296			5,043,197
Other assets	1,556,613			1,596,159			1,532,837			1,435,187			1,626,829
Total assets	$	85,683,660		$	87,003,919		$	87,309,233		$	87,079,953		$	89,356,838
Liabilities:
Deposits:
Noninterest bearing	$	21,094,235		$	21,000,630		$	21,476,890		$	20,332,792		$	20,585,598
Interest bearing	46,119,332			44,616,750			46,052,748			46,946,741			47,001,739
Total deposits	67,213,567			65,617,380			67,529,638			67,279,533			67,587,337
FHLB and other borrowings	3,956,041			4,789,494			2,993,222			3,001,551			3,671,861
Federal funds purchased and securities sold under agreements to repurchase	44,761			31,619			71,559			39,052			165,573
Other short-term borrowings	327,539			2,435,260			2,642,539			2,802,977			3,591,223
Accrued expenses and other liabilities	1,025,849			1,140,536			1,186,776			1,206,133			1,521,654
Total liabilities	72,567,757			74,014,289			74,423,734			74,329,246			76,537,648
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	14,912,412			14,916,198			14,982,125			14,985,673			15,020,937
Retained deficit	(1,920,184		)	(2,050,051		)	(2,207,060		)	(2,327,440		)	(2,416,402		)
Accumulated other comprehensive loss	(137,583		)	(137,131		)	(150,781		)	(168,252		)	(46,644		)
Total BBVA Compass Bancshares, Inc. shareholder’s equity	13,086,350			12,960,721			12,855,989			12,721,686			12,789,596
Noncontrolling interests	29,553			28,909			29,510			29,021			29,594
Total shareholder’s equity	13,115,903			12,989,630			12,885,499			12,750,707			12,819,190
Total liabilities and shareholder’s equity	$	85,683,660		$	87,003,919		$	87,309,233		$	87,079,953		$	89,356,838

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

	Three Months Ended
	2017						2016
	September 30		June 30		March 31		December 31			September 30
Interest income:
Interest and fees on loans	$	623,884	$	607,375	$	574,712	$	558,680		$	557,996
Interest on investment securities available for sale	53,930		55,590		54,878		60,868			48,382
Interest on investment securities held to maturity	6,994		6,821		6,639		6,664			6,675
Interest on federal funds sold, securities purchased under agreements to resell and interest bearing deposits	11,557		12,049		9,262		7,664			4,563
Interest on trading account assets	6,247		9,805		10,297		13,150			12,926
Total interest income	702,612		691,640		655,788		647,026			630,542
Interest expense:
Interest on deposits	75,083		65,914		70,304		73,846			76,031
Interest on FHLB and other borrowings	29,904		22,450		19,068		23,825			21,315
Interest on federal funds purchased and securities sold under agreements to repurchase	4,623		6,942		4,897		4,640			4,934
Interest on other short-term borrowings	3,641		10,506		10,086		12,963			13,453
Total interest expense	113,251		105,812		104,355		115,274			115,733
Net interest income	589,361		585,828		551,433		531,752			514,809
Provision for loan losses	103,434		45,285		80,139		37,564			65,107
Net interest income after provision for loan losses	485,927		540,543		471,294		494,188			449,702
Noninterest income:
Service charges on deposit accounts	55,953		54,919		55,168		55,901			55,047
Card and merchant processing fees	32,297		32,460		29,992		31,161			31,256
Retail investment sales	26,817		28,588		27,471		23,293			30,137
Investment banking and advisory fees	30,500		19,943		28,301		20,792			34,385
Money transfer income	24,881		27,330		25,197		28,632			25,058
Asset management fees	10,336		10,055		9,771		8,906			8,778
Corporate and correspondent investment sales	5,145		12,189		8,915		3,199			6,974
Mortgage banking	3,450		3,316		2,870		16,086			8,242
Bank owned life insurance	4,322		4,220		4,169		4,202			4,170
Investment securities gains, net	3,033		—		—		—			—
Loss on prepayment of FHLB and other borrowings	—		—		—		(295		)	—
Other	61,060		53,305		52,833		68,881			59,718
Total noninterest income	257,794		246,325		244,687		260,758			263,765
Noninterest expense:
Salaries, benefits and commissions	279,384		288,426		268,015		283,609			279,132
Professional services	64,775		64,840		57,807		63,810			63,628
Equipment	60,656		62,405		61,630		62,627			59,697
Net occupancy	42,227		41,240		42,101		40,116			41,610
Money transfer expense	15,938		17,807		16,324		17,426			16,680
Marketing	14,996		15,729		13,545		13,018			13,316
Communications	5,084		5,281		5,219		5,406			5,002
Amortization of intangibles	2,525		2,525		2,525		4,093			4,093
Goodwill impairment	—		—		—		59,901			—
Other	88,377		74,232		82,146		64,064			73,113
Total noninterest expense	573,962		572,485		549,312		614,070			556,271
Net income before income tax expense	169,759		214,383		166,669		140,876			157,196
Income tax expense	39,308		56,943		45,846		51,473			36,845
Net income	130,451		157,440		120,823		89,403			120,351
Less: net income attributable to noncontrolling interests	584		431		443		441			523
Net income attributable to BBVA Compass Bancshares, Inc.	$	129,867	$	157,009	$	120,380	$	88,962		$	119,828

BBVA USA Bancshares, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - October 27, 2017

Attached files

BBVA USA Bancshares, Inc. Reports