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.	bbvacompass063020188k.htm

Exhibit 99.1

July 27, 2018

BBVA Compass reports second quarter results


•	Quarterly net income totals $184 million


◦	Net income up 17 percent from a year ago and 41 percent on a year-to-date basis


◦	Return on average assets and return on average tangible equity¹ for the quarter were 0.83 percent and 9.05 percent, respectively


•	Total revenue reaches record level; up 10 percent from prior year levels and 15 percent (annualized) from 1Q18 levels


◦	Net interest income increases 10 percent compared to a year ago and 13 percent (annualized) on a linked quarter basis


◦	Noninterest income increases 10 percent from year ago levels and 19 percent (annualized) on a linked quarter basis


•	Noninterest expense growth well contained at 1 percent; up 2 percent on a year-to-date basis


•	Positive operating leverage results in record quarterly operating income¹ of $334 million, an increase of 29 percent from the second quarter of 2017


•	Solid deposit generation fully supports increased activity in loan portfolio


◦	Total loans rise to $63.3 billion, up 6 percent year-over year


◦	Newly funded customer loans of $10.1 billion in the first half of 2018, up 35 percent from prior year


◦	Total deposits of $70.1 billion, up 7 percent from a year ago levels


•	Credit quality measures stable during the quarter


◦	Nonperforming loan ratio at 1.11 percent and net charge-off ratio at 40 basis points


◦	Allowance to loan ratio at 1.36 percent and NPL coverage ratio at 122 percent


•	Results of CCAR and DFAST provide further evidence of strong capital position


◦	Common Equity Tier 1 (CET1) ratio (phased-in)² at 11.97 percent


◦	Regulatory capital ratios² significantly above “well capitalized” guidelines

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $184 million for the second quarter of 2018, a 17 percent increase from the $157 million earned during the second quarter of 2017. Return on average assets and return on average tangible equity¹ for the second quarter of 2018 were 0.83 percent and 9.05 percent, respectively.

Net income for the first six months of 2018 totaled $393 million, an increase of 41 percent from the $278 million earned during the first six months of 2017. Return on average assets and return on average tangible equity¹ for the first six months of 2018 were 0.90 percent and 9.77 percent, respectively.

“Capitalizing on the positive momentum we have built throughout our organization enabled us to deliver another strong quarter and achieve a new quarterly record in operating income,” said Onur Genç, president and CEO of BBVA Compass. “Revenue growth was strong and balanced as both net interest income and noninterest income posted double-digit gains. Newly funded loans in the quarter totaled more than $5.7 billion and on a year-to-date basis reached $10.1 billion, up 35 percent compared to a year ago. Our focus on being at the forefront of the digital transformation also continued with the recent launch of two new treasury management products - BBVA Compass RealTime ARP™ and BBVA Compass RealTime Positive Pay™ - that represent the first of their kind operating in real-time. Using technology to improve efficiency and provide customers with amazing experiences drives our innovative spirit.”

Total revenue for the quarter was $914 million, an increase of 10 percent from the second quarter of 2017 and 15 percent on an annualized basis from first quarter 2018 levels. Net interest income totaled $643 million, an increase of $58 million or 10 percent from the second quarter of 2017, and an annualized increase of 13 percent from first quarter 2018 levels. The percent net interest margin in the second quarter of 2018 was 3.30 percent, an increase of 19 basis points from a year ago and 3 basis points from the first quarter of 2018.

Noninterest income for the quarter totaled $270 million, an increase of 10 percent compared to the $246 million recorded in the second quarter of 2017. Growth was well diversified and many of our major fee-based businesses surpassed overall growth, led by card and merchant processing fees (+36 percent) and corporate and correspondent investment sales (+34 percent). The performance in investment banking and advisory fees (+23 percent), mortgage banking (+140 percent) and service charges on deposit accounts (+7 percent) was also noteworthy during the quarter. Maintaining strong expense controls also continued in the quarter with noninterest expenses rising 1 percent year-over-year and 2 percent on a year-to-date basis.

“With respect to balance sheet activity, loan growth accelerated in the quarter and, importantly, was fully supported by solid deposit generation,” noted Genç.

Total loans at the end of the second quarter of 2018 were $63.3 billion, an increase of 6 percent from $60.0 billion at the end of the second quarter of 2017. Commercial growth was paced by C&I lending (+8 percent) while consumer loan growth accelerated, driven by increased activity in direct consumer lending (+48 percent) and credit cards (+22 percent). Total deposits at the end of the second quarter of 2018 were $70.1 billion, a 7 percent increase from the $65.6 billion at the end of the second quarter of 2017. The loan to deposit ratio ended the quarter at 90 percent, down slightly from 91 percent a year ago.

Credit quality metrics were stable during the quarter. Nonperforming loans as a percentage of total loans were 1.11 percent, unchanged from first quarter 2018 levels and down 5 basis points from year-end 2017 levels. Net charge-offs as a percentage of average loans totaled 40 basis points in the quarter, down from 44 basis points in the first quarter of 2018 and 42 basis points in the second quarter of 2017. The allowance for loan losses as a percentage of total loans ended the quarter at 1.36 percent while the coverage ratio of nonperforming loans rose to 122 percent.

Total shareholder's equity at the end of the second quarter totaled $13.2 billion, a 2 percent increase from $13.0 billion at the end of the second quarter of 2017. The CET1 ratio rose to 11.97 percent² at the end of the second quarter of 2018, up 17 basis points from the end of the fourth quarter of 2017. Importantly, all of BBVA Compass’ regulatory capital ratios² significantly exceed the requirements under “well-capitalized” guidelines.

"BBVA Compass has been part of the Comprehensive Capital Analysis and Review for five years, and in each, our capital plan has received no-objection from the Federal Reserve," Genç said. "Our record in this area clearly signals the importance we place on maintaining a strong capital position to enable us to expand our client base, increase business activity with our customers, support the communities that we serve and continue on our transformation journey to meet the challenges and opportunities of 21^st century

banking.”

Income tax expense for the quarter totaled $58 million resulting in an effective tax rate of 24.0 percent compared to $57 million in the second quarter of 2017 resulting in an effective tax rate of 26.6 percent. Included in the current quarter is $11 million of additional income tax expense related to the correction of an error in prior period (primarily 2017) that resulted from an incorrect calculation of the proportional amortization of the company’s Low Income Housing Tax Credit investments. The company has evaluated the effect of this correction and concluded that no prior annual period is materially misstated nor is it material to interim or expected full year 2018 results.

During the second quarter, BBVA Compass announced the closing of a $1.15 billion senior notes offering by its wholly-owned subsidiary Compass Bank. The offering was completed in two tranches including: $450 million in aggregate principal amount of floating rate unsecured senior notes due 2021 (Floating Rates Notes), and $700 million in aggregate principal amount of 3.50 percent unsecured senior notes due 2021 (Fixed Rate Notes). The Floating Rate Notes were sold at a price of 100 percent of par and the Fixed Rate Notes were sold at a price of 99.704 percent of par. Additional information pertaining to our fixed income debt issuances can be found on the Investor Relations portion of our website at bbva.investorroom.com.

________________________

¹ Return on average tangible equity and operating income 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 capital ratios at June 30, 2018, 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 645 branches, including 332 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 (6th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 6th nationally in the total number of SBA loans originated in fiscal year 2017. 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.

On April 5, 2018, BBVA filed its annual report on Form 20-F for the year ended December 31, 2017, with the U.S. Securities and Exchange Commission. A copy can be accessed on the BBVA website at https://shareholdersandinvestors.bbva.com/the-share/adrs-english/. Holders of BBVA’s American Depositary Receipts (ADRs) may request a hard copy of the Form 20-F for the year ended December 31, 2017, including 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 February 28, 2018, as updated by our subsequent SEC filings.

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

	Three Months Ended June 30,						%	Six Months Ended June 30,						%
	2018			2017			Change	2018			2017			Change
EARNINGS SUMMARY
Net interest income	$	643,499		$	585,828		10	$	1,266,104		$	1,137,261		11
Noninterest income	270,019			246,325			10	527,844			491,012			8
Total revenue	913,518			832,153			10	1,793,948			1,628,273			10
Provision for loan losses	91,280			45,285			102	148,309			125,424			18
Noninterest expense	579,545			572,485			1	1,142,458			1,121,797			2
Pretax income	242,693			214,383			13	503,181			381,052			32
Income tax expense	58,295			56,943			2	110,093			102,789			7
Net income	184,398			157,440			17	393,088			278,263			41
Net income attributable to noncontrolling interests	595			431			38	1,056			874			21
Net income attributable to BBVA Compass Bancshares, Inc.	$	183,803		$	157,009		17	$	392,032		$	277,389		41

SELECTED RATIOS
Return on average assets	0.83		%	0.72		%		0.90		%	0.64		%
Return on average tangible equity [a]	9.05			7.93				9.77			7.12
Average common equity to average assets	14.56			14.57				14.59			14.47
Average loans to average total deposits	90.62			91.16				90.12			90.45
Common equity tier I capital (CET1) [b]	11.97			11.90				11.97			11.90
Tier I capital ratio [b]	12.31			12.25				12.31			12.25
Total capital ratio [b]	14.49			14.62				14.49			14.62
Leverage ratio [b]	10.05			9.82				10.05			9.82
[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.
[b] Current period regulatory capital ratios are estimated.

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

	Average for Three Months					Average for Six Months					Ending Balance
	Ended June 30,				%	Ended June 30,				%	June 30,				%
	2018		2017		Change	2018		2017		Change	2018		2017		Change
BALANCE SHEET HIGHLIGHTS
Total loans	$	63,202,826	$	59,902,725	6	$	62,704,406	$	60,113,615	4	$	63,343,018	$	59,955,718	6
Total debt securities	13,332,825		12,653,300		5	13,263,113		12,555,619		6	13,491,910		12,810,079		5
Earning assets	79,538,657		78,182,674		2	79,078,356		78,223,352		1	79,922,849		78,063,676		2
Total assets	89,032,051		87,474,348		2	88,404,964		87,575,056		1	88,754,662		87,003,919		2
Noninterest bearing demand deposits	21,281,715		21,110,531		1	21,430,981		20,845,583		3	21,433,218		21,000,630		2
Interest bearing transaction accounts	33,808,453		32,566,221		4	33,765,439		32,985,683		2	34,350,824		32,472,406		6
Total transaction accounts	55,090,168		53,676,752		3	55,196,420		53,831,266		3	55,784,042		53,473,036		4
Total deposits	69,744,181		65,711,133		6	69,579,904		66,459,835		5	70,147,708		65,617,380		7
Total shareholder's equity	13,217,831		13,004,717		2	13,154,476		12,929,108		2	13,190,644		12,989,630		2

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

	2018						2017
	June 30			March 31			December 31			September 30			June 30
NONPERFORMING ASSETS
Nonaccrual loans [a]	$	662,991		$	647,210		$	658,865		$	666,812		$	760,313
Loans 90 days or more past due [b]	39,143			45,904			58,378			43,049			59,434
TDRs 90 days or more past due	491			700			751			963			969
Total nonperforming loans [a]	702,625			693,814			717,994			710,824			820,716
Other real estate owned, net (OREO)	16,499			16,147			17,278			22,012			22,965
Other repossessed assets	13,117			11,278			13,473			11,443			12,298
Total nonperforming assets	$	732,241		$	721,239		$	748,745		$	744,279		$	855,979

TDRs accruing and past due less than 90 days	$	99,251		$	101,285		$	100,492		$	95,521		$	97,088


Total nonperforming loans as a % of loans	1.11		%	1.11		%	1.16		%	1.18		%	1.37		%
Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets	1.16			1.16			1.21			1.23			1.43
[a] Includes loans held for sale.
[b] Excludes loans classified as troubled debt restructuring (TDRs).



	Three Months Ended
	2018						2017
	June 30			March 31			December 31			September 30			June 30
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	832,071		$	842,760		$	849,119		$	816,952		$	834,106
Net charge-offs (NCO)	63,351			67,718			65,194			71,267			62,439
Provision for loan losses	91,280			57,029			58,835			103,434			45,285
Balance at end of period	$	860,000		$	832,071		$	842,760		$	849,119		$	816,952

Allowance for loan losses as a % of total loans	1.36		%	1.34		%	1.37		%	1.41		%	1.36		%
Allowance for loan losses as a % of nonperforming loans [c]	122.40			119.93			117.38			119.46			99.54
Allowance for loan losses as a % of nonperforming assets [c]	117.45			115.37			112.56			114.09			95.44

Annualized as a % of average loans:
NCO - QTD	0.40			0.44			0.42			0.47			0.42
NCO - YTD	0.42			0.44			0.47			0.48			0.49
[c] Includes loans held for sale that are on nonaccrual status.

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

	Three Months Ended June 30,
	2018							2017
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	63,202,826		$	722,346	4.58	%	$	59,902,725		$	625,366	4.19	%
Debt securities available for sale [a]	11,535,569			53,792		1.87		11,608,533			53,181		1.84
Debt securities held to maturity	2,088,717			14,521		2.79		1,134,494			9,961		3.52
Other earning assets [b]	3,003,006			15,840		2.12		5,626,649			24,287		1.73
Total earning assets [a]	79,830,118			806,499		4.05		78,272,401			712,795		3.65
Allowance for loan losses	(840,557		)					(836,477		)
Unrealized loss on debt securities available for sale	(291,461		)					(89,727		)
Other assets	10,333,951							10,128,151
Total assets	$	89,032,051						$	87,474,348

Liabilities and Shareholder's Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	7,944,965		$	11,025	0.56		$	7,849,285		$	6,261	0.32
Savings and money market accounts	25,863,488			48,793		0.76		24,716,936			22,380		0.36
Certificates and other time deposits	14,654,013			56,505		1.55		12,034,381			37,273		1.24
Total interest bearing deposits	48,462,466			116,323		0.96		44,600,602			65,914		0.59
FHLB and other borrowings	3,974,769			31,912		3.22		4,104,668			22,450		2.19
Federal funds purchased and securities sold under agreement to repurchase [b]	103,974			1,399		5.40		99,039			6,942		28.11
Other short-term borrowings	78,402			567		2.90		2,638,671			10,506		1.60
Total interest bearing liabilities	52,619,611			150,201		1.14		51,442,980			105,812		0.83
Noninterest bearing deposits	21,281,715							21,110,531
Other noninterest bearing liabilities	1,912,894							1,916,120
Total liabilities	75,814,220							74,469,631
Shareholder's equity	13,217,831							13,004,717
Total liabilities and shareholder's equity	$	89,032,051						$	87,474,348

Net interest income/ net interest spread				656,298		2.91	%				606,983		2.82	%
Net yield on earning assets						3.30	%						3.11	%

Total taxable equivalent adjustment				12,799							21,155

Net interest income				$	643,499						$	585,828
[a] Excludes adjustment for market valuation.
[b] Yield/rate reflects impact of balance sheet offsetting.



	Six Months Ended June 30,
	2018							2017
	Average Balance			Income/ Expense		Yield/ Rate		Average Balance			Income/ Expense		Yield/ Rate
YIELD/RATE ANALYSIS
(Taxable Equivalent Basis)
Assets
Earning assets:
Loans	$	62,704,406		$	1,397,176	4.49	%	$	60,113,615		$	1,217,070	4.08	%
Debt securities available for sale [a]	11,480,294			110,397		1.94		11,519,788			105,232		1.84
Debt securities held to maturity	2,042,818			28,423		2.81		1,151,552			19,532		3.42
Other earning assets [b]	3,110,837			28,466		1.85		5,554,118			46,728		1.70
Total earning assets [a]	79,338,355			1,564,462		3.98		78,339,073			1,388,562		3.57
Allowance for loan losses	(842,392		)					(843,381		)
Unrealized loss on debt securities available for sale	(259,999		)					(115,721		)
Other assets	10,169,000							10,195,085
Total assets	$	88,404,964						$	87,575,056

Liabilities and Shareholder's Equity
Interest bearing liabilities:
Interest bearing demand deposits	$	8,069,593		$	20,606	0.51		$	8,019,136		$	12,392	0.31
Savings and money market accounts	25,695,846			87,683		0.69		24,966,547			44,681		0.36
Certificates and other time deposits	14,383,484			105,381		1.48		12,628,569			79,145		1.26
Total interest bearing deposits	48,148,923			213,670		0.89		45,614,252			136,218		0.60
FHLB and other borrowings	3,644,363			56,668		3.14		3,638,825			41,518		2.30
Federal funds purchased and securities sold under agreement to repurchase [b]	63,330			1,935		6.16		71,102			11,839		33.58
Other short-term borrowings	65,088			911		2.82		2,673,046			20,592		1.55
Total interest bearing liabilities	51,921,704			273,184		1.06		51,997,225			210,167		0.82
Noninterest bearing deposits	21,430,981							20,845,583
Other noninterest bearing liabilities	1,897,803							1,803,140
Total liabilities	75,250,488							74,645,948
Shareholder's equity	13,154,476							12,929,108
Total liabilities and shareholder's equity	$	88,404,964						$	87,575,056

Net interest income/ net interest spread				1,291,278		2.92	%				1,178,395		2.75	%
Net yield on earning assets						3.28	%						3.03	%

Total taxable equivalent adjustment				25,174							41,134

Net interest income				$	1,266,104						$	1,137,261
[a] Excludes adjustment for market valuation.
[b] Yield/rate reflects impact of balance sheet offsetting.

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

	Six Months						Three Months Ended
	Ended June 30,				%		2018				2017
	2018		2017		Change		June 30		March 31		December 31		September 30		June 30
NONINTEREST INCOME
Service charges on deposit accounts	$	114,742	$	110,087	4		$	58,581	$	56,161	$	56,070	$	55,953	$	54,919
Card and merchant processing fees	83,726		62,452		34		44,048		39,678		33,380		32,297		32,460
Retail investment sales	59,890		56,059		7		29,782		30,108		26,338		26,817		28,588
Investment banking and advisory fees	48,442		48,244		0		24,546		23,896		24,957		30,500		19,943
Money transfer income	44,608		52,527		(15	)	23,920		20,688		24,101		24,881		27,330
Corporate and correspondent investment sales	28,411		21,104		35		16,355		12,056		11,803		5,145		12,189
Asset management fees	21,759		19,826		10		10,989		10,770		10,303		10,336		10,055
Mortgage banking	16,361		6,186		164		7,964		8,397		4,720		3,450		3,316
Bank owned life insurance	8,590		8,389		2		4,375		4,215		4,397		4,322		4,220
Other	101,315		106,138		(5	)	49,459		51,856		101,100		61,060		53,305
	527,844		491,012		8		270,019		257,825		297,169		254,761		246,325
Investment securities gains, net	—		—		—		—		—		—		3,033		—
Total noninterest income	$	527,844	$	491,012	8		$	270,019	$	257,825	$	297,169	$	257,794	$	246,325

NONINTEREST EXPENSE
Salaries, benefits and commissions	$	576,292	$	556,441	4		$	286,852	$	289,440	$	296,146	$	279,384	$	288,426
Equipment	127,020		124,035		2		63,660		63,360		63,200		60,656		62,405
Professional services	129,222		122,647		5		68,577		60,645		76,068		64,775		64,840
Net occupancy	83,093		83,341		0		42,671		40,422		41,125		42,227		41,240
Money transfer expense	30,023		34,131		(12	)	16,302		13,721		15,721		15,938		17,807
Marketing	20,601		29,274		(30	)	11,814		8,787		7,950		14,996		15,729
Communications	10,514		10,500		—		5,251		5,263		4,970		5,084		5,281
Other	165,693		161,428		3		84,418		81,275		110,648		90,902		76,757
Total noninterest expense	$	1,142,458	$	1,121,797	2		$	579,545	$	562,913	$	615,828	$	573,962	$	572,485

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
NON-GAAP RECONCILIATION

Computation of Operating Income:
Net interest income (GAAP)	$	643,499		$	585,828		$	1,266,104		$	1,137,261
Plus: noninterest income (GAAP)	270,019			246,325			527,844			491,012
Less: noninterest expense (GAAP)	579,545			572,485			1,142,458			1,121,797
Operating income (non-GAAP)	$	333,973		$	259,668		$	651,490		$	506,476


Computation of Average Tangible Equity:
Total stockholder's equity (average) (GAAP)	$	13,217,831		$	13,004,717		$	13,154,476		12,929,108
Less: Goodwill and other intangibles (average) (GAAP)	5,040,777			5,045,470			5,040,016			5,047,470
Average tangible equity (non-GAAP) [B]	$	8,177,054		$	7,959,247		$	8,114,460		7,881,638
Net income (GAAP) [A]	$	184,398		$	157,440		$	393,088		$	278,263
Return on average tangible equity (non-GAAP) ([A]/[B], annualized)	9.05		%	7.93		%	9.77		%	7.12		%

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

	At or Quarter Ended June 30, 2018
	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	$	55,116	$	12,405	$	3,597	$	323,287	$	5,722	$	26,248,260	$	26,648,387	$	10,567
Real estate – construction	579		163		540		13,289		125		2,115,565		2,130,261		287
Commercial real estate – mortgage	20,450		2,826		3,211		105,409		3,945		11,659,635		11,795,476		(5,505		)
Residential real estate – mortgage	76,693		27,972		5,026		162,892		59,940		13,017,967		13,350,490		1,558
Equity lines of credit	10,661		4,384		2,191		34,269		237		2,627,974		2,679,716		453
Equity loans	3,519		882		306		10,153		29,303		281,302		325,465		(443		)
Credit card	6,353		4,733		11,931		—		—		681,617		704,634		11,299
Consumer – direct	24,060		9,577		6,313		1,073		470		2,098,439		2,139,932		29,876
Consumer – indirect	79,600		22,616		6,028		12,619		—		3,395,753		3,516,616		15,259
Total loans	$	277,031	$	85,558	$	39,143	$	662,991	$	99,742	$	62,126,512	$	63,290,977	$	63,351
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	52,041	$	52,041	$	—



	At or Quarter Ended March 31, 2018
	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	$	15,427	$	12,230	$	5,420	$	284,699	$	5,231	$	26,036,120	$	26,359,127	$	8,395
Real estate – construction	450		240		1,918		14,183		129		2,139,936		2,156,856		(89		)
Commercial real estate – mortgage	8,552		3,220		2,229		115,285		4,182		11,394,819		11,528,287		114
Residential real estate – mortgage	73,335		33,993		5,975		169,778		62,171		12,961,735		13,306,987		1,380
Equity lines of credit	12,063		4,611		2,371		36,350		236		2,602,229		2,657,860		160
Equity loans	4,495		983		379		11,429		29,546		297,705		344,537		(69		)
Credit card	6,438		5,089		11,845		—		—		633,658		657,030		9,874
Consumer – direct	16,919		8,569		7,929		4,211		490		1,818,325		1,856,443		25,412
Consumer – indirect	77,153		21,092		7,838		11,275		—		3,223,376		3,340,734		22,541
Total loans	$	214,832	$	90,027	$	45,904	$	647,210	$	101,985	$	61,107,903	$	62,207,861	$	67,718
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	76,401	$	76,401	$	—



	At or Quarter Ended December 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	$	14,804	$	3,753	$	18,136	$	310,059	$	1,213	$	25,401,984	$	25,749,949	$	13,320
Real estate – construction	12,293		70		1,560		5,381		101		2,254,134		2,273,539		(115		)
Commercial real estate – mortgage	10,473		3,270		927		111,982		4,155		11,593,351		11,724,158		417
Residential real estate – mortgage	69,474		34,440		8,572		173,843		64,898		13,014,520		13,365,747		290
Equity lines of credit	10,956		7,556		2,259		34,021		237		2,598,076		2,653,105		871
Equity loans	4,170		657		995		11,559		30,105		315,778		363,264		87
Credit card	6,710		4,804		11,929		—		—		616,074		639,517		9,048
Consumer – direct	19,766		7,020		6,712		2,425		534		1,653,926		1,690,383		19,551
Consumer – indirect	92,017		26,460		7,288		9,595		—		3,028,746		3,164,106		21,725
Total loans	$	240,663	$	88,030	$	58,378	$	658,865	$	101,243	$	60,476,589	$	61,623,768	$	65,194
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	67,110	$	67,110	$	—



	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	$	—

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

	2018						2017
	June 30			March 31			December 31			September 30			June 30
Assets:
Cash and due from banks	$	1,138,034		$	1,098,345		$	1,313,022		$	1,145,745		$	1,073,646
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits	2,438,585			2,424,987			2,769,804			2,588,913			2,302,500
Cash and cash equivalents	3,576,619			3,523,332			4,082,826			3,734,658			3,376,146
Trading account assets	277,694			216,465			220,496			572,104			2,651,083
Debt securities available for sale	11,293,724			11,434,152			12,219,632			11,820,442			11,666,908
Debt securities held to maturity	2,198,186			1,975,729			1,046,093			1,077,372			1,143,171
Loans held for sale	52,041			76,401			67,110			77,783			74,558
Loans	63,290,977			62,207,861			61,623,768			60,315,204			59,881,160
Allowance for loan losses	(860,000		)	(832,071		)	(842,760		)	(849,119		)	(816,952		)
Net loans	62,430,977			61,375,790			60,781,008			59,466,085			59,064,208
Premises and equipment, net	1,170,798			1,189,253			1,214,874			1,226,747			1,253,516
Bank owned life insurance	728,703			724,600			722,596			720,693			718,938
Goodwill	4,983,296			4,983,296			4,983,296			4,983,296			4,983,296
Other assets	2,042,624			2,109,484			1,982,648			2,004,480			2,072,095
Total assets	$	88,754,662		$	87,608,502		$	87,320,579		$	85,683,660		$	87,003,919
Liabilities:
Deposits:
Noninterest bearing	$	21,433,218		$	21,792,498		$	21,630,694		$	21,094,235		$	21,000,630
Interest bearing	48,714,490			48,147,914			47,625,619			46,119,332			44,616,750
Total deposits	70,147,708			69,940,412			69,256,313			67,213,567			65,617,380
FHLB and other borrowings	4,157,284			3,322,940			3,959,930			3,956,041			4,789,494
Federal funds purchased and securities sold under agreements to repurchase	185,511			5,933			19,591			44,761			31,619
Other short-term borrowings	81,547			29,999			17,996			327,539			2,435,260
Accrued expenses and other liabilities	991,968			1,165,079			1,053,439			1,025,849			1,140,536
Total liabilities	75,564,018			74,464,363			74,307,269			72,567,757			74,014,289
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	14,699,773			14,814,744			14,818,608			14,912,412			14,916,198
Retained deficit	(1,476,614		)	(1,660,417		)	(1,868,659		)	(1,920,184		)	(2,050,051		)
Accumulated other comprehensive loss	(293,323		)	(271,431		)	(197,405		)	(137,583		)	(137,131		)
Total BBVA Compass Bancshares, Inc. shareholder’s equity	13,161,541			13,114,601			12,984,249			13,086,350			12,960,721
Noncontrolling interests	29,103			29,538			29,061			29,553			28,909
Total shareholder’s equity	13,190,644			13,144,139			13,013,310			13,115,903			12,989,630
Total liabilities and shareholder’s equity	$	88,754,662		$	87,608,502		$	87,320,579		$	85,683,660		$	87,003,919

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

	Three Months Ended
	2018				2017
	June 30		March 31		December 31		September 30		June 30
Interest income:
Interest and fees on loans	$	711,006	$	663,935	$	641,322	$	623,884	$	607,375
Interest on debt securities available for sale	53,792		56,602		56,883		50,599		53,159
Interest on debt securities held to maturity	13,062		12,426		6,555		6,994		6,821
Interest on trading account assets	924		750		1,005		6,247		9,805
Interest on other earning assets	14,916		11,875		10,843		14,888		14,480
Total interest income	793,700		745,588		716,608		702,612		691,640
Interest expense:
Interest on deposits	116,323		97,347		88,016		75,083		65,914
Interest on FHLB and other borrowings	31,912		24,756		22,392		29,904		22,450
Interest on federal funds purchased and securities sold under agreements to repurchase	1,399		536		464		4,623		6,942
Interest on other short-term borrowings	567		344		2,191		3,641		10,506
Total interest expense	150,201		122,983		113,063		113,251		105,812
Net interest income	643,499		622,605		603,545		589,361		585,828
Provision for loan losses	91,280		57,029		58,835		103,434		45,285
Net interest income after provision for loan losses	552,219		565,576		544,710		485,927		540,543
Noninterest income:
Service charges on deposit accounts	58,581		56,161		56,070		55,953		54,919
Card and merchant processing fees	44,048		39,678		33,380		32,297		32,460
Retail investment sales	29,782		30,108		26,338		26,817		28,588
Investment banking and advisory fees	24,546		23,896		24,957		30,500		19,943
Money transfer income	23,920		20,688		24,101		24,881		27,330
Corporate and correspondent investment sales	16,355		12,056		11,803		5,145		12,189
Asset management fees	10,989		10,770		10,303		10,336		10,055
Mortgage banking	7,964		8,397		4,720		3,450		3,316
Bank owned life insurance	4,375		4,215		4,397		4,322		4,220
Investment securities gains, net	—		—		—		3,033		—
Other	49,459		51,856		101,100		61,060		53,305
Total noninterest income	270,019		257,825		297,169		257,794		246,325
Noninterest expense:
Salaries, benefits and commissions	286,852		289,440		296,146		279,384		288,426
Equipment	63,660		63,360		63,200		60,656		62,405
Professional services	68,577		60,645		76,068		64,775		64,840
Net occupancy	42,671		40,422		41,125		42,227		41,240
Money transfer expense	16,302		13,721		15,721		15,938		17,807
Marketing	11,814		8,787		7,950		14,996		15,729
Communications	5,251		5,263		4,970		5,084		5,281
Other	84,418		81,275		110,648		90,902		76,757
Total noninterest expense	579,545		562,913		615,828		573,962		572,485
Net income before income tax expense	242,693		260,488		226,051		169,759		214,383
Income tax expense	58,295		51,798		173,979		39,308		56,943
Net income	184,398		208,690		52,072		130,451		157,440
Less: net income attributable to noncontrolling interests	595		461		547		584		431
Net income attributable to BBVA Compass Bancshares, Inc.	$	183,803	$	208,229	$	51,525	$	129,867	$	157,009

BBVA USA Bancshares, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 27, 2018

Attached files

BBVA USA Bancshares, Inc. Reports