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BBVA USA reports third quarter results

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- Net income up 5 percent - Revenue: Total revenue increased 3 percent from a year ago as 16 percent increase in noninterest income more than offsets 3 percent decline in net interest income - Efficiency: Strong cost controls result in 1 percent decline in noninterest expenses; positive operating leverage in the quarter results in 17 percent increase in operating income[1] and a 233 basis point improvement in the efficiency ratio[1] - Credit quality: Nonperforming loan ratio drops from second quarter 2019 levels to 1.14 percent while the coverage ratio rises to 131 percent. Net charge-offs total 110 basis points in the quarter primarily due to continued seasoning in consumer-direct portfolio and an isolated commercial credit. Allowance to loans ratio remains healthy at 1.49 percent - Capital and liquidity: The CET1 ratio rose 83 basis points to 12.90 percent[2] while the Liquidity Coverage Ratio (LCR) ended the quarter at 144 percent

October 31, 2019 9:41 AM EDT

HOUSTON, Oct. 31, 2019 /PRNewswire/ -- BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today net income of $183 million for the third quarter of 2019 compared to earnings of $160 million in the second quarter of 2019 and $175 million earned in the third quarter of 2018. Return on average assets and return on average tangible equity1 for the third quarter of 2019 were 0.76 percent and 8.03 percent, respectively.

BBVA's new logo (PRNewsfoto/BBVA)

Net income for the first nine months of 2019 totaled $484 million compared to earnings of $568 million for the first nine months of 2018. Return on average assets and return on average tangible equity1 for the first nine months of 2019 were 0.69 percent and 7.36 percent, respectively.

"Strong fee income growth and good expense management enabled us to achieve record quarterly operating income and post a solid increase in earnings," said Javier Rodríguez Soler, president and CEO of BBVA USA. "As we continue to navigate the challenging interest rate environment, generating fee income growth while maintaining a focus on expense discipline will be key components to offsetting the pressure on our net interest margin. Operating during this environment also places further emphasis on our digital transformation strategy. Digitization allows us to enhance and expand our product offerings, utilize technology to improve efficiency both for us and our customers and, most importantly, deliver an amazing customer experience."    

Total revenue (excluding securities gains) for the quarter was $941 million, an increase of $25 million or 3 percent from third quarter 2018 levels and down $3 million or 1 percent (annualized) compared to the second quarter of 2019. Net interest income totaled $641 million, down $17 million or 3 percent from $658 million recorded in the third quarter of 2018 and down $19 million on a linked quarter basis. The percent net interest margin in the third quarter of 2019 was 3.07 percent, a decline of 20 basis points from the third quarter of 2018 and 17 basis points on a linked quarter basis.

Noninterest income (excluding securities gains) for the quarter totaled $300 million, up $42 million or 16 percent from the third quarter of 2018 and up $16 million compared to the second quarter of 2019. Growth was fueled by increases in investment banking and advisory fees (+103 percent), mortgage banking (+22 percent), card and merchant processing fees (+14 percent), money transfer income (+11 percent), and service charges on deposit accounts (+8 percent). On a linked quarter basis, each of these fee-based businesses experienced positive growth led by investment banking and advisory fees, mortgage banking and increased activity related to corporate and correspondence investment sales. Gains on the sales of investment securities totaled $21 million during the third quarter of 2019. 

Expense containment continued during the quarter with noninterest expenses decreasing 1 percent compared to a year ago and flat linked quarter. On a year-to-date basis, total noninterest expense has increased a modest 2 percent. Revenue growth coupled with expense control resulted in record operating income1 totaling $363 million, a 17 percent increase compared to the third quarter a year ago and a 21 percent (annualized) increase compared to the second quarter of 2019. During the first nine months of 2019, operating income1 totaled $1.1 billion, up 11 percent compared to the same period a year ago. The efficiency ratio1 at 62.76 improved 233 basis points compared to a year ago and on a year-to-date basis has improved 128 basis points.

Total loans for the third quarter of 2019 were $63.5 billion, down 2 percent from $64.5 billion at the end of the third quarter of 2018 and up slightly on a linked quarter basis. During the second quarter of 2019, approximately $1.2 billion commercial loans held for sale were sold. Adjusting for the sale of these loans, the year-over-year increase in total loans was less than 1 percent.

Total deposits at the end of the third quarter of 2019 were $73.6 billion, a 5 percent increase from the $70.4 billion at the end of the third quarter of 2018. Growth in interest bearing transaction accounts (savings, money market and interest bearing checking accounts) outpaced overall growth at 11 percent compared to a year ago. While noninterest bearing deposits were relatively unchanged from a year ago, on a linked quarter basis noninterest bearing deposits increased 7 percent (annualized). The loan to deposit ratio ended the quarter at 86.25 percent and the Liquidity Coverage Ratio (LCR) at 144 percent was unchanged from second quarter 2019 levels.

Nonperforming loans as a percentage of total loans ended the quarter at 1.14 percent compared to 1.26 percent at the end of the second quarter of 2019 and 1.04 percent at the end of the third quarter of 2018. The decrease in nonperforming loans during the quarter included the charge-off of a single commercial credit in the healthcare industry, which accounted for a significant portion of the decline. Net charge-offs as a percentage of average total loans were 110 basis points in the quarter compared to 90 basis points in the second quarter of 2019 and 49 basis points in the third quarter of 2018. The previously mentioned healthcare credit coupled with continued charge-offs in the consumer-direct portfolio, as expected, accounted for the increase.

Provision expense in the quarter was $141 million compared to $155 million in the second quarter of 2019 and $95 million in the third quarter a year ago. The allowance for loan losses as a percentage of total loans ended the quarter at 1.49 percent compared to 1.54 percent at the end of the second quarter of 2019 and 1.36 percent at the end of the third quarter of 2018. The coverage ratio of nonperforming loans was 131 percent at the end of the quarter compared to 123 percent at the end of the second quarter of 2019 and 130 percent at the end of the third quarter a year ago.

Total shareholder's equity at the end of the third quarter of 2019 totaled $14.1 billion, a 6 percent increase from the $13.3 billion at the end of the third quarter of 2018. The CET1 ratio stood at 12.90 percent2 at the end of the third quarter of 2019, up 33 basis points from the end of the second quarter of 2019 and 83 basis points from the end of the third quarter of 2018. All of BBVA's regulatory capital ratios2 continue to significantly exceed the requirements under "well capitalized" guidelines.

During the third quarter, BBVA Net Cash USA Mobile was named a winner in the 2019 Bank Customer Experience Awards, taking first place in the Best Mobile/Online Experience (financial institutions) category. The Best in Bank Customer Experience Awards recognize the most unique, innovative, and pioneering financial institutions and technology providers whose branches and technologies are having the most impact on customers. The app also gives users access to the first-of-their-kind BBVA Real Time Positive Pay and Real Time ARP services – functionality that is not available through any other treasury management platform or mobile application on the market.

BBVA USA was recognized by Kiplinger as its runner-up in the Best Banks for High-Net-Worth Families category for 2019. The Washington, D.C.-based publisher of business forecasts and personal finance advice cited BBVA's expansive wealth services, including its attractive relationship program and well-regarded private bank, and specifically noted its Premier Personal Banking program. While the program is designed for high-net-worth families, BBVA USA offers a lower qualifying balance that opens the Premier Personal Banking program as an option for many more customers.

1 Return on average tangible equity, operating income and efficiency ratio are Non-GAAP financial measures 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 September 30, 2019, are estimated.

For more BBVA news visit, www.bbva.com and the U.S. Newsroom.

Additional news updates can be found via Twitter and Instagram.

For more financial information about BBVA in the U.S., visit bbvausa.investorroom.com.

About BBVA

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 and is the largest financial institution in Mexico. It has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's BBVA Garanti. BBVA's purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. BBVA's responsible banking model aspires to achieve a more inclusive and sustainable society.

On March 28, 2019, BBVA filed its annual report on Form 20-F for the year ended December 31, 2018, 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, 2018, including complete audited financial statements, free of charge. To request a copy, contact Ed Bilek at [email protected].

BBVA USA In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank 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). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.

Forward-Looking Statements Certain statements in this press release may contain forward-looking statements about BBVA USA 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, 2019, as updated by our subsequent SEC filings.

 

BBVA USA BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)

Three Months Ended September30,

%

Nine Months Ended September30,

%

2019

2018

Change

2019

2018

Change

EARNINGS SUMMARY

Net interest income

$       641,041

$       658,286

(3)

$    1,983,879

$    1,924,390

3

Noninterest income [a]

300,316

258,459

16

833,399

786,303

6

Total revenue [a]

941,357

916,745

3

2,817,278

2,710,693

4

Investment securities gain, net

21,003

—

 NM 

29,961

—

 NM 

Provision for loan losses

140,629

94,964

48

477,939

243,273

96

Noninterest expense

598,887

605,510

(1)

1,779,174

1,747,968

2

Pretax income

222,844

216,271

3

590,126

719,452

(18)

Income tax expense

39,899

41,756

(4)

106,014

151,849

(30)

Net income

182,945

174,515

5

484,112

567,603

(15)

Net income attributable to noncontrolling interests

514

426

21

1,669

1,482

13

Net income attributable to BBVA USA Bancshares, Inc.

$       182,431

$       174,089

5

$       482,443

$       566,121

(15)

SELECTED RATIOS

Return on average assets

0.76 %

0.77 %

0.69 %

0.85 %

Return on average tangible equity [b]

8.03

8.35

7.36

9.28

Efficiency ratio [b]

62.76

65.09

62.28

63.56

Average common equity to average assets

14.53

14.51

14.47

14.56

Average loans to average total deposits

87.17

91.41

88.64

90.56

Common equity tier I capital (CET1) [c]

12.90

12.07

12.90

12.07

Tier I capital ratio [c]

13.24

12.41

13.24

12.41

Total capital ratio [c]

15.39

14.58

15.39

14.58

Leverage ratio [c]

10.03

10.12

10.03

10.12

Average for Three Months

Average for Nine Months

Ending Balance

Ended September 30,

%

Ended September 30,

%

September 30,

%

2019

2018

 Change 

2019

2018

 Change 

2019

2018

Change

BALANCE SHEET HIGHLIGHTS

Total loans

$  63,629,992

$  64,316,342

(1)

$  64,382,982

$  63,247,623

2

$  63,454,885

$  64,530,848

(2)

Total debt securities

13,715,979

13,480,726

2

13,703,073

13,336,448

3

13,947,224

13,625,428

2

Earning assets

84,528,727

81,095,701

4

83,402,162

79,758,194

5

83,447,829

81,212,434

3

Total assets

94,942,456

90,118,668

5

93,800,891

88,982,476

5

92,914,087

90,047,656

3

Noninterest bearing demand deposits

20,754,143

20,990,763

(1)

20,409,910

21,282,629

(4)

21,019,303

20,968,391

—

Interest bearing transaction accounts

37,711,142

34,463,223

9

36,861,148

34,000,590

8

38,614,048

34,732,504

11

Total transaction accounts

58,465,285

55,453,986

5

57,271,058

55,283,219

4

59,633,351

55,700,895

7

Total deposits

72,994,321

70,363,598

4

72,631,301

69,844,006

4

73,569,442

70,378,057

5

Total shareholder's equity

14,056,939

13,334,169

5

13,828,060

13,215,032

5

14,101,618

13,342,487

6

[a]  Excludes net gain on sales of investment securities.

[b]  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.

[c]  Current period regulatory capital ratios are estimated.

NM = Not meaningful

 

BBVA USA BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

2019

2018

September 30

June 30

March 31

December 31

September 30

NONPERFORMING ASSETS

Nonaccrual loans [a]

$       653,242

$   732,696

$   806,644

$      751,486

$       628,159

Loans 90 days or more past due [b]

67,869

64,337

63,880

59,549

44,765

TDRs 90 days or more past due

588

304

370

411

444

Total nonperforming loans [a]

721,699

797,337

870,894

811,446

673,368

Foreclosed real estate

17,381

13,752

14,983

16,869

18,706

Other repossessed assets

17,584

13,040

11,225

12,031

9,875

Total nonperforming assets

$       756,664

$   824,129

$   897,102

$      840,346

$       701,949

TDRs accruing and past due less than 90 days

$         97,218

$   112,383

$   111,671

$      109,190

$         92,606

Total nonperforming loans as a % of loans

1.14 %

1.26 %

1.34 %

1.24 %

1.04 %

Total nonperforming assets as a % of total loans, foreclosed real estate, and other repossessed assets

1.19

1.30

1.38

1.29

1.09

Three Months Ended

2019

2018

September 30

June 30

March 31

December 31

September 30

ALLOWANCE FOR LOAN LOSSES

Balance at beginning of period

$       977,660

$   966,022

$   885,242

$      875,393

$       860,000

Net charge-offs (NCO)

176,098

143,380

101,512

112,298

79,571

Provision for loan losses

140,629

155,018

182,292

122,147

94,964

Balance at end of period

$       942,191

$   977,660

$   966,022

$      885,242

$       875,393

Allowance for loan losses as a % of total loans

1.49 %

1.54 %

1.52 %

1.36 %

1.36 %

Allowance for loan losses as a % of nonperforming loans [c]

130.55

122.62

110.92

109.09

130.00

Allowance for loan losses as a % of nonperforming assets [c]

124.52

118.63

107.68

105.34

124.71

Annualized as a % of average loans:

NCO - QTD

1.10

0.90

0.63

0.68

0.49

NCO - YTD

0.88

0.77

0.63

0.51

0.45

[a]  Includes loans held for sale.

[b]  Excludes loans classified as troubled debt restructuring (TDRs).

[c]  Includes loans held for sale that are on nonaccrual status.

 

BBVA USA BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Three Months Ended September 30,

2019

2018

Average Balance

Income/ Expense

Yield/ Rate

Average Balance

Income/ Expense

Yield/ Rate

YIELD/RATE ANALYSIS

(Taxable Equivalent Basis)

Assets

Earning assets:

Loans

$63,629,992

$782,948

4.88 %

$64,316,342

$763,165

4.71 %

Debt securities available for sale [a]

7,987,642

36,051

1.79

11,416,609

53,201

1.85

Debt securities held to maturity

5,737,726

40,075

2.77

2,360,654

17,548

2.95

Other earning assets [b]

7,182,756

47,015

2.60

3,298,633

18,282

2.20

Total earning assets [a]

84,538,116

906,089

4.25

81,392,238

852,196

4.15

Allowance for loan losses

(971,396)

(866,131)

Unrealized loss on debt securities available for sale

(9,389)

(296,537)

Other assets

11,385,125

9,889,098

Total assets

$94,942,456

$90,118,668

Liabilities and Shareholder's Equity

Interest bearing liabilities:

Interest bearing demand deposits

$  8,870,753

$  25,179

1.13

$  7,703,562

$  12,644

0.65

Savings and money market accounts

28,840,389

96,060

1.32

26,759,661

63,796

0.95

Certificates and other time deposits

14,529,036

82,740

2.26

14,909,612

63,458

1.69

Total interest bearing deposits

52,240,178

203,979

1.55

49,372,835

139,898

1.12

FHLB and other borrowings

3,860,727

32,975

3.39

4,412,717

37,131

3.34

Federal funds purchased and securities sold under agreement to repurchase [b]

1,401,320

15,137

4.29

172,277

3,169

7.30

Other short-term borrowings

13,348

72

2.14

77,413

579

2.97

Total interest bearing liabilities

57,515,573

252,163

1.74

54,035,242

180,777

1.33

Noninterest bearing deposits

20,754,143

20,990,763

Other noninterest bearing liabilities

2,615,801

1,758,494

Total liabilities

80,885,517

76,784,499

Shareholder's equity

14,056,939

13,334,169

Total liabilities and shareholder's equity

$94,942,456

$90,118,668

Net interest income/ net interest spread

653,926

2.51 %

671,419

2.82 %

Net yield on earning assets

3.07 %

3.27 %

Total taxable equivalent adjustment

12,885

13,133

Net interest income

$641,041

$658,286

[a] Excludes adjustment for market valuation.

[b] Yield/rate reflects impact of balance sheet offsetting.

 

BBVA USA BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Nine Months Ended September 30,

2019

2018

Average Balance

Income/ Expense

Yield/ Rate

Average Balance

Income/ Expense

Yield/ Rate

YIELD/RATE ANALYSIS

(Taxable Equivalent Basis)

Assets

Earning assets:

Loans

$64,382,982

$2,395,043

4.97 %

$63,247,623

$  2,160,341

4.57 %

Debt securities available for sale [a]

8,957,354

134,698

2.01

11,458,832

163,598

1.91

Debt securities held to maturity

4,845,107

105,298

2.91

2,149,928

45,971

2.86

Other earning assets [b]

5,316,107

106,946

2.69

3,174,123

46,748

1.97

Total earning assets [a]

83,501,550

2,741,985

4.39

80,030,506

2,416,658

4.04

Allowance for loan losses

(952,170)

(850,392)

Unrealized loss on debt securities available for sale

(99,388)

(272,312)

Other assets

11,350,899

10,074,674

Total assets

$93,800,891

$88,982,476

Liabilities and Shareholder's Equity

Interest bearing liabilities:

Interest bearing demand deposits

$  8,954,456

72,061

1.08

$  7,946,242

33,250

0.56

Savings and money market accounts

27,906,692

261,172

1.25

26,054,348

151,479

0.78

Certificates and other time deposits

15,360,243

255,578

2.22

14,560,787

168,839

1.55

Total interest bearing deposits

52,221,391

588,811

1.51

48,561,377

353,568

0.97

FHLB and other borrowings

4,057,769

104,901

3.46

3,903,295

93,799

3.21

Federal funds purchased and securities sold under agreement to repurchase [b]

763,681

24,886

4.36

100,045

5,104

6.82

Other short-term borrowings

16,235

368

3.03

69,242

1,490

2.88

Total interest bearing liabilities

57,059,076

718,966

1.68

52,633,959

453,961

1.15

Noninterest bearing deposits

20,409,910

21,282,629

Other noninterest bearing liabilities

2,503,845

1,850,856

Total liabilities

79,972,831

75,767,444

Shareholder's equity

13,828,060

13,215,032

Total liabilities and shareholder's equity

$93,800,891

$88,982,476

Net interest income/ net interest spread

2,023,019

2.71 %

1,962,697

2.89 %

Net yield on earning assets

3.24 %

3.28 %

Total taxable equivalent adjustment

39,140

38,307

Net interest income

$1,983,879

$  1,924,390

[a] Excludes adjustment for market valuation.

[b] Yield/rate reflects impact of balance sheet offsetting.

 

BBVA USA BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Nine Months

Three Months Ended

Ended September 30,

%

2019

2018

2019

2018

Change

September 30

June 30

March 31

December 31

September 30

NONINTEREST INCOME

Service charges on deposit accounts

$        185,782

$        175,067

6

$         65,143

$       61,731

$       58,908

$        61,606

$         60,325

Card and merchant processing fees

146,742

127,945

15

50,385

50,355

46,002

46,982

44,219

Investment services sales fees

87,316

88,176

(1)

29,287

31,333

26,696

24,476

28,286

Investment banking and advisory fees

67,939

62,398

9

28,324

20,758

18,857

15,286

13,956

Money transfer income

73,273

68,049

8

26,020

25,272

21,981

23,632

23,441

Corporate and correspondent investment sales

24,298

40,901

(41)

11,799

5,607

6,892

10,774

12,490

Asset management fees

34,039

32,902

3

11,405

11,867

10,767

10,909

11,143

Mortgage banking

19,011

23,078

(18)

8,204

5,870

4,937

3,755

6,717

Bank owned life insurance

12,895

13,187

(2)

3,508

4,803

4,584

4,635

4,597

Other

182,104

154,600

18

66,241

66,685

49,178

68,551

53,285

833,399

786,303

6

300,316

284,281

248,802

270,606

258,459

Investment securities gains, net

29,961

—

 NM 

21,003

—

8,958

—

—

Total noninterest income

$        863,360

$        786,303

10

$       321,319

$     284,281

$     257,760

$      270,606

$       258,459

NONINTEREST EXPENSE

Salaries, benefits and commissions

$        884,111

$        868,971

2

$       295,092

$     296,303

$     292,716

$      285,820

$       292,679

Equipment

191,940

190,759

1

63,908

62,638

65,394

66,806

63,739

Professional services

210,583

197,625

7

72,903

73,784

63,896

79,529

68,403

Net occupancy

123,298

125,607

(2)

42,241

40,116

40,941

41,161

42,514

Money transfer expense

50,273

46,143

9

18,005

17,290

14,978

15,995

16,120

Marketing

42,276

32,982

28

15,471

16,412

10,393

15,884

12,381

Communications

16,603

21,341

(22)

5,469

5,733

5,401

9,241

10,827

Other

260,090

264,540

(2)

85,798

86,038

88,254

87,556

98,847

Total noninterest expense

$     1,779,174

$     1,747,968

2

$       598,887

$     598,314

$     581,973

$      601,992

$       605,510

NM = Not meaningful

 

BBVA USA BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Nine Months

Three Months Ended

Ended September 30,

2019

2018

2019

2018

September 30

June 30

March 31

December 31

September 30

NON-GAAP RECONCILIATION

Computation of Operating Income:

Net interest income (GAAP)

$       1,983,879

$       1,924,390

$          641,041

$          659,749

$          683,089

$          682,188

$          658,286

Plus: noninterest income (GAAP)

863,360

786,303

321,319

284,281

257,760

270,606

258,459

Less: noninterest expense (GAAP)

1,779,174

1,747,968

598,887

598,314

581,973

601,992

605,510

Operating income (non-GAAP)

$       1,068,065

$          962,725

$          363,473

$          345,716

$          358,876

$          350,802

$          311,235

Computation of Average Tangible Equity:

Total stockholder's equity (average) (GAAP)

$     13,828,060

$     13,215,032

$     14,056,939

$     13,782,011

$     13,640,655

$     13,420,931

$     13,334,169

Less: Goodwill and other intangibles (average) (GAAP)

5,030,022

5,040,016

5,023,480

5,031,129

5,035,591

5,039,847

5,040,018

Average tangible equity (non-GAAP) [B]

$       8,798,038

$       8,175,016

$       9,033,459

$       8,750,882

$       8,605,064

$       8,381,084

$       8,294,151

Net income (GAAP) [A]

$          484,112

$          567,603

$          182,945

$          160,186

$          140,981

$          195,826

$          174,515

Return on average tangible equity (non-GAAP) ([A]/[B], annualized)

7.36 %

9.28 %

8.03 %

7.34 %

6.64 %

9.27 %

8.35 %

Computation of Efficiency Ratio:

Noninterest expense (GAAP)

$       1,779,174

$       1,747,968

$          598,887

$          598,314

$          581,973

$          601,992

$          605,510

Less: securities impairment (GAAP)

113

592

—

113

—

—

283

Total expense [A]

$       1,779,061

$       1,747,376

$          598,887

$          598,201

$          581,973

$          601,992

$          605,227

Net interest income, taxable equivalent basis

$       2,023,019

$       1,962,697

$          653,926

$          672,807

$          696,286

$          695,543

$          671,419

Plus: noninterest income (GAAP)

863,360

786,303

321,319

284,281

257,760

270,606

258,459

Less: investment securities gains, net (GAAP)

29,961

—

21,003

—

8,958

—

—

Total revenue [B]

$       2,856,418

$       2,749,000

$          954,242

$          957,088

$          945,088

$          966,149

$          929,878

Efficiency ratio (non-GAAP) ([A]/[B])

62.28 %

63.56 %

62.76 %

62.50 %

61.58 %

62.31 %

65.09 %

BBVA USA BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

At or Quarter Ended September 30, 2019

30-59 Days Past Due

60-89 Days Past Due

90 Days or MorePast Due

Nonaccrual

Accruing TDRs

Not Past Due orImpaired

Total

Net Charge Offs(Recoveries)

Commercial, financial and agricultural

$                       30,779

$                       24,036

$              11,179

$   301,021

$              1,552

$     24,314,563

$ 24,683,130

$              69,942

Real estate – construction

3,831

185

532

1,616

76

1,999,107

2,005,347

(59)

Commercial real estate –  mortgage

13,939

41

2,375

110,632

3,492

12,943,694

13,074,173

2,250

Residential real estate – mortgage

74,796

22,329

4,778

153,078

60,537

13,187,809

13,503,327

1,280

Equity lines of credit

11,088

4,616

2,072

36,879

—

2,563,457

2,618,112

431

Equity loans

2,452

978

524

8,728

24,789

225,973

263,444

(59)

Credit card

10,372

8,092

20,037

—

—

897,646

936,147

16,398

Consumer – direct

35,762

23,075

17,773

7,348

7,360

2,297,040

2,388,358

63,992

Consumer – indirect

81,075

26,294

8,599

33,940

—

3,698,625

3,848,533

21,923

Total loans

$                     264,094

$                     109,646

$              67,869

$   653,242

$            97,806

$     62,127,914

$ 63,320,571

$           176,098

Loans held for sale

$                                —

$                                —

$                       —

$              —

$                    —

$           134,314

$       134,314

$                      —

At or Quarter Ended June 30, 2019

30-59 Days Past Due

60-89 Days Past Due

90 Days or MorePast Due

Nonaccrual

Accruing TDRs

Not Past Due orImpaired

Total

Net Charge Offs(Recoveries)

Commercial, financial and agricultural

$                       49,037

$                         8,246

$              12,785

$   389,779

$            19,150

$     24,373,659

$ 24,852,656

$              45,916

Real estate – construction

3,159

114

532

2,097

107

1,976,637

1,982,646

(477)

Commercial real estate –  mortgage

4,716

3,283

360

107,137

3,687

12,850,522

12,969,705

61

Residential real estate – mortgage

74,767

25,226

6,681

154,247

59,130

13,084,079

13,404,130

1,523

Equity lines of credit

12,604

7,972

3,394

35,356

—

2,613,504

2,672,830

371

Equity loans

2,549

788

224

9,361

25,361

237,495

275,778

194

Credit card

11,119

7,007

18,762

—

—

841,213

878,101

16,436

Consumer – direct

36,657

22,986

14,786

6,926

5,252

2,390,021

2,476,628

57,142

Consumer – indirect

77,523

21,908

6,813

27,793

—

3,665,042

3,799,079

22,214

Total loans

$                     272,131

$                       97,530

$              64,337

$   732,696

$         112,687

$     62,032,172

$ 63,311,553

$           143,380

Loans held for sale

$                                —

$                                —

$                       —

$              —

$                    —

$             90,537

$         90,537

$                      —

BBVA USA BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

At or Quarter Ended March 31, 2019

30-59 Days Past Due

60-89 Days Past Due

90 Days or MorePast Due

Nonaccrual

Accruing TDRs

Not Past Dueor Impaired

Total

Net Charge Offs(Recoveries)

Commercial, financial and agricultural

$                       54,216

$                       17,813

$                 8,144

$   461,029

$            18,910

$     24,721,818

$ 25,281,930

$                4,743

Real estate – construction

13,582

1,707

533

1,298

111

1,928,116

1,945,347

(1,410)

Commercial real estate –  mortgage

4,679

322

1,160

109,447

3,811

12,835,777

12,955,196

(27)

Residential real estate – mortgage

78,538

22,384

9,007

163,463

59,167

13,063,837

13,396,396

929

Equity lines of credit

15,355

4,035

1,471

34,999

—

2,660,447

2,716,307

575

Equity loans

2,920

1,050

34

9,840

26,188

248,137

288,169

(81)

Credit card

9,394

7,465

18,499

—

—

797,474

832,832

15,243

Consumer – direct

35,620

20,432

17,251

4,725

3,854

2,452,034

2,533,916

53,874

Consumer – indirect

78,610

24,600

7,781

21,843

—

3,674,618

3,807,452

27,666

Total loans

$                     292,914

$                       99,808

$              63,880

$   806,644

$        112,041

$     62,382,258

$ 63,757,545

$           101,512

Loans held for sale

$                                —

$                                —

$                       —

$              —

$                    —

$       1,273,821

$    1,273,821

$                      —

At or Quarter Ended December 31, 2018

30-59 Days Past Due

60-89 Days Past Due

90 Days or MorePast Due

Nonaccrual

Accruing TDRs

Not Past Dueor Impaired

Total

Net Charge Offs(Recoveries)

Commercial, financial and agricultural

$                       17,257

$                       11,784

$                 8,114

$   400,389

$            18,926

$     26,105,849

$ 26,562,319

$              38,786

Real estate – construction

218

8,849

544

2,851

116

1,984,959

1,997,537

(24)

Commercial real estate –  mortgage

11,678

3,375

2,420

110,144

3,661

12,885,518

13,016,796

470

Residential real estate – mortgage

80,366

29,852

5,927

167,099

57,446

13,081,466

13,422,156

247

Equity lines of credit

14,007

5,109

2,226

37,702

—

2,688,173

2,747,217

(656)

Equity loans

3,471

843

180

10,939

26,768

256,413

298,614

(35)

Credit card

9,516

7,323

17,011

—

—

784,458

818,308

11,231

Consumer – direct

37,336

19,543

13,336

4,528

2,684

2,476,161

2,553,588

38,508

Consumer – indirect

100,434

32,172

9,791

17,834

—

3,609,788

3,770,019

23,771

Total loans

$                     274,283

$                     118,850

$              59,549

$   751,486

$         109,601

$     63,872,785

$ 65,186,554

$           112,298

Loans held for sale

$                                —

$                                —

$                       —

$              —

$                    —

$             68,766

$         68,766

$                      —

BBVA USA BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

At or Quarter Ended September 30, 2018

30-59 Days Past Due

60-89 Days Past Due

90 Days or MorePast Due

Nonaccrual

Accruing TDRs

Not Past Dueor Impaired

Total

Net Charge Offs(Recoveries)

Commercial, financial and agricultural

$                       38,512

$                       16,416

$                 9,609

$   290,239

$                 522

$     26,300,781

$ 26,656,079

$              13,975

Real estate – construction

3,252

5,278

532

12,882

121

2,096,427

2,118,492

(23)

Commercial real estate –  mortgage

31,792

18,349

502

104,976

3,753

12,237,632

12,397,004

2,035

Residential real estate – mortgage

87,426

30,373

3,697

159,721

59,082

13,062,173

13,402,472

2,090

Equity lines of credit

13,556

4,298

1,186

35,125

—

2,655,566

2,709,731

(19)

Equity loans

2,082

1,042

241

10,378

28,383

266,712

308,838

45

Credit card

8,601

6,449

13,157

—

—

735,479

763,686

9,686

Consumer – direct

30,153

14,455

8,988

3,184

1,189

2,364,239

2,422,208

28,765

Consumer – indirect

86,310

23,587

6,853

11,654

—

3,550,365

3,678,769

23,017

Total loans

$                     301,684

$                     120,247

$              44,765

$   628,159

$            93,050

$     63,269,374

$ 64,457,279

$              79,571

Loans held for sale

$                                —

$                                —

$                       —

$              —

$                    —

$             73,569

$         73,569

$                      —

 

BBVA USA BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)

2019

2018

September 30

June 30

March 31

December 31

September 30

Assets:

Cash and due from banks

$       1,117,458

$    1,027,400

$    1,143,541

$      1,217,319

$       1,122,747

Federal funds sold, securities purchased under agreements to resell and interest bearing deposits

5,356,141

4,773,761

4,864,920

2,115,307

2,404,164

Cash and cash equivalents

6,473,599

5,801,161

6,008,461

3,332,626

3,526,911

Trading account assets

564,000

440,098

306,123

237,656

216,749

Debt securities available for sale

7,612,590

9,010,950

9,297,018

10,981,216

11,134,860

Debt securities held to maturity 

6,334,634

4,912,483

4,575,041

2,885,613

2,490,568

Loans held for sale

134,314

90,537

1,273,821

68,766

73,569

Loans

63,320,571

63,311,553

63,757,545

65,186,554

64,457,279

Allowance for loan losses

(942,191)

(977,660)

(966,022)

(885,242)

(875,393)

Net loans

62,378,380

62,333,893

62,791,523

64,301,312

63,581,886

Premises and equipment, net

1,085,635

1,105,819

1,125,676

1,152,958

1,155,795

Bank owned life insurance

746,819

745,130

740,764

736,171

731,527

Goodwill

4,983,296

4,983,296

4,983,296

4,983,296

4,983,296

Other assets

2,600,820

2,760,678

2,740,863

2,267,560

2,152,495

Total assets

$     92,914,087

$ 92,184,045

$ 93,842,586

$   90,947,174

$     90,047,656

Liabilities:

Deposits:

Noninterest bearing

$     21,019,303

$ 20,646,209

$ 20,403,716

$   20,183,876

$     20,968,391

Interest bearing

52,550,139

51,942,601

53,976,592

51,984,111

49,409,666

Total deposits

73,569,442

72,588,810

74,380,308

72,167,987

70,378,057

FHLB and other borrowings

3,709,949

4,052,969

4,011,160

3,987,590

5,045,302

Federal funds purchased and securities sold under agreements to repurchase

117,421

191,739

188,024

102,275

78,004

Other short-term borrowings

45

2,067

30,975

—

68,714

Accrued expenses and other liabilities

1,415,612

1,477,737

1,504,582

1,176,793

1,135,092

Total liabilities

78,812,469

78,313,322

80,115,049

77,434,645

76,705,169

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

14,359,966

14,364,527

14,542,166

14,545,849

14,695,197

Retained deficit

(585,859)

(768,290)

(927,877)

(1,107,198)

(1,302,525)

Accumulated other comprehensive income (loss)

66,009

13,508

(148,135)

(186,848)

(311,422)

Total BBVA USA Bancshares, Inc. shareholder's equity

14,071,821

13,841,450

13,697,859

13,483,508

13,312,955

Noncontrolling interests

29,797

29,273

29,678

29,021

29,532

Total shareholder's equity

14,101,618

13,870,723

13,727,537

13,512,529

13,342,487

Total liabilities and shareholder's equity

$     92,914,087

$ 92,184,045

$ 93,842,586

$   90,947,174

$     90,047,656

 

BBVA USA BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)

Three Months Ended

2019

2018

September 30

June 30

March 31

December 31

September 30

Interest income:

Interest and fees on loans

$          771,245

$    787,767

$    800,488

$        787,858

$          751,470

Interest on debt securities available for sale

36,051

45,125

53,522

59,028

53,201

Interest on debt securities held to maturity

38,893

33,313

29,495

19,993

16,110

Interest on trading account assets

487

601

539

704

833

Interest and dividends on other earning assets

46,528

35,823

22,968

19,340

17,449

Total interest income

893,204

902,629

907,012

886,923

839,063

Interest expense:

Interest on deposits

203,979

202,478

182,354

163,722

139,898

Interest on FHLB and other borrowings

32,975

34,300

37,626

36,573

37,131

Interest on federal funds purchased and securities sold under agreements to repurchase

15,137

6,002

3,747

3,849

3,169

Interest on other short-term borrowings

72

100

196

591

579

Total interest expense

252,163

242,880

223,923

204,735

180,777

Net interest income

641,041

659,749

683,089

682,188

658,286

Provision for loan losses

140,629

155,018

182,292

122,147

94,964

Net interest income after provision for loan losses

500,412

504,731

500,797

560,041

563,322

Noninterest income:

Service charges on deposit accounts

65,143

61,731

58,908

61,606

60,325

Card and merchant processing fees

50,385

50,355

46,002

46,982

44,219

Investment services sales fees

29,287

31,333

26,696

24,476

28,286

Investment banking and advisory fees

28,324

20,758

18,857

15,286

13,956

Money transfer income

26,020

25,272

21,981

23,632

23,441

Asset management fees

11,405

11,867

10,767

10,909

11,143

Corporate and correspondent investment sales

11,799

5,607

6,892

10,774

12,490

Mortgage banking

8,204

5,870

4,937

3,755

6,717

Bank owned life insurance

3,508

4,803

4,584

4,635

4,597

Investment securities gains, net

21,003

—

8,958

—

—

Other

66,241

66,685

49,178

68,551

53,285

Total noninterest income

321,319

284,281

257,760

270,606

258,459

Noninterest expense:

Salaries, benefits and commissions

295,092

296,303

292,716

285,820

292,679

Equipment

63,908

62,638

65,394

66,806

63,739

Professional services

72,903

73,784

63,896

79,529

68,403

Net occupancy

42,241

40,116

40,941

41,161

42,514

Money transfer expense

18,005

17,290

14,978

15,995

16,120

Marketing

15,471

16,412

10,393

15,884

12,381

Communications

5,469

5,733

5,401

9,241

10,827

Other

85,798

86,038

88,254

87,556

98,847

Total noninterest expense

598,887

598,314

581,973

601,992

605,510

Net income before income tax expense

222,844

190,698

176,584

228,655

216,271

Income tax expense

39,899

30,512

35,603

32,829

41,756

Net income

182,945

160,186

140,981

195,826

174,515

Less: net income attributable to noncontrolling interests

514

599

556

499

426

Net income attributable to BBVA USA Bancshares, Inc.

$          182,431

$    159,587

$    140,425

$        195,327

$          174,089

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/bbva-usa-reports-third-quarter-results-300949170.html

SOURCE BBVA USA


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