Texas (State or other jurisdiction of incorporation) | 000-55106 (Commission File Number) | 20-8948381 (IRS Employer Identification No.) | |||
2200 Post Oak Blvd. Houston, Texas (Address of principal executive offices) | 77056 (Zip Code) | ||||
(205) 297-3000 (Registrant's telephone number, including area code) Not applicable (Former name or former address, if changed since last report) |
BBVA Compass Bancshares, Inc. | |
By: | /s/ Jonathan W. Pennington |
Name: | Jonathan W. Pennington |
Title: | Executive Vice President and Controller |
• | Fourth quarter net income of $196 million brings full-year total to a record $763 million |
◦ | Net income up 13 percent1 from a year ago and 31 percent1 on a year-to-date basis after adjusting for a $121 million non-cash charge in the fourth quarter of 2017 related to the revaluation of net deferred tax assets mandated by the Tax Cuts and Jobs Act. |
◦ | Return on average assets and return on average tangible equity2 for the quarter were 0.85 percent and 9.27 percent, respectively |
• | Total revenue reaches all-time high; up 6 percent from prior year levels and 9 percent on a year-to-date basis |
◦ | Net interest income increases $79 million or 13 percent from year ago levels and $276 million or 12 percent on a year-to-date basis |
◦ | Percent net interest margin (FTE) up 15 basis points from year ago quarter, 10 basis points from third quarter 2018 levels and 20 basis points for the full-year of 2018 |
• | Noninterest expense growth well contained at 2 percent in 2018, including a 2 percent decrease in the fourth quarter of 2018 |
• | Revenue growth coupled with strong focus on expense management results in record operating income2 of $351 million in the quarter and $1.3 billion for the year, both represent a 23 percent increase |
• | Balance sheet activity supported by solid loan and deposit generation |
◦ | Total loans rise to $65.3 billion, up 6 percent year-over-year |
◦ | Newly funded customer loans of $5.6 billion in the quarter bring full-year total to a record $21.7 billion in 2018, up 18 percent from the prior year |
◦ | Total deposits of $72.2 billion, up 4 percent from a year ago levels |
• | Credit quality metrics remain sound; allowance to loan ratio steady at 1.36 percent |
◦ | Nonperforming loan ratio ended the year at 1.24 percent |
◦ | Net charge-off ratio for 2018 at 51 basis points compared to 47 basis points in 2017 |
◦ | Provision expense for the year exceeded net charge-offs by more than $42 million |
Impact of Tax Cuts and Jobs Act | |||||||||||||||||||||
Dollars in thousands (unaudited) | |||||||||||||||||||||
Full Year | |||||||||||||||||||||
4Q18 | 4Q17 | % Change | 2018 | 2017 | % Change | ||||||||||||||||
Net Income: | |||||||||||||||||||||
As reported | $ | 195,826 | $ | 52,072 | 276 | % | $ | 763,429 | $ | 460,786 | 66 | % | |||||||||
Adjusted1 | 195,826 | 173,315 | 13 | 763,429 | 582,029 | 31 | |||||||||||||||
ROA: | |||||||||||||||||||||
As reported | 0.85 | % | 0.24 | % | 0.85 | % | 0.53 | % | |||||||||||||
Adjusted1 | 0.85 | 0.79 | 0.85 | 0.67 | |||||||||||||||||
ROTE:1 | |||||||||||||||||||||
As reported | 9.27 | % | 2.55 | % | 9.28 | % | 5.77 | % | |||||||||||||
Adjusted | 9.27 | 8.48 | 9.28 | 7.28 |
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 |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||
Three Months Ended December 31, | % | Years Ended December 31, | % | |||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||
EARNINGS SUMMARY | ||||||||||||||||||||||
Net interest income | $ | 682,188 | $ | 603,545 | 13 | $ | 2,606,578 | $ | 2,330,167 | 12 | ||||||||||||
Noninterest income [a] | 270,606 | 297,169 | (9 | ) | 1,056,909 | 1,042,942 | 1 | |||||||||||||||
Total revenue [a] | 952,794 | 900,714 | 6 | 3,663,487 | 3,373,109 | 9 | ||||||||||||||||
Investment securities gain, net | — | — | — | — | 3,033 | (100 | ) | |||||||||||||||
Provision for loan losses | 122,147 | 58,835 | 108 | 365,420 | 287,693 | 27 | ||||||||||||||||
Noninterest expense | 601,992 | 615,828 | (2 | ) | 2,349,960 | 2,311,587 | 2 | |||||||||||||||
Pretax income | 228,655 | 226,051 | 1 | 948,107 | 776,862 | 22 | ||||||||||||||||
Income tax expense | 32,829 | 173,979 | (81 | ) | 184,678 | 316,076 | (42 | ) | ||||||||||||||
Net income | $ | 195,826 | $ | 52,072 | 276 | $ | 763,429 | $ | 460,786 | 66 | ||||||||||||
Adjusted net income [b] | $ | 195,826 | $ | 173,315 | 13 | $ | 763,429 | $ | 582,029 | 31 | ||||||||||||
SELECTED RATIOS | ||||||||||||||||||||||
Return on average assets | 0.85 | % | 0.24 | % | 0.85 | % | 0.53 | % | ||||||||||||||
Return on average assets- adjusted [b] | 0.85 | 0.79 | 0.85 | 0.67 | ||||||||||||||||||
Return on average tangible equity [b] | 9.27 | 2.55 | 9.28 | 5.77 | ||||||||||||||||||
Return on average tangible equity- adjusted [b] | 9.27 | 8.48 | 9.28 | 7.28 | ||||||||||||||||||
Average common equity to average assets | 14.41 | 14.82 | 14.52 | 14.63 | ||||||||||||||||||
Average loans to average total deposits | 91.88 | 89.96 | 90.89 | 90.68 | ||||||||||||||||||
Common equity tier 1 capital (CET1) [c] | 12.00 | 11.80 | 12.00 | 11.80 | ||||||||||||||||||
Tier I capital ratio [c] | 12.33 | 12.15 | 12.33 | 12.15 | ||||||||||||||||||
Total capital ratio [c] | 14.49 | 14.36 | 14.49 | 14.36 | ||||||||||||||||||
Leverage ratio [c] | 10.03 | 9.98 | 10.03 | 9.98 | ||||||||||||||||||
[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. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||||||||
Average for Three Months | Average for Year | Ending Balance | |||||||||||||||||||||||||||||||
Ended December 31, | % | Ended December 31, | % | December 31, | % | ||||||||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||||||||
BALANCE SHEET HIGHLIGHTS | |||||||||||||||||||||||||||||||||
Total loans | $ | 65,287,838 | $ | 61,170,130 | 7 | $ | 63,761,869 | $ | 60,419,711 | 6 | $ | 65,255,320 | $ | 61,690,878 | 6 | ||||||||||||||||||
Total debt securities | 13,614,503 | 13,104,177 | 4 | 13,406,533 | 12,776,615 | 5 | 13,866,829 | 13,265,725 | 5 | ||||||||||||||||||||||||
Earning assets | 81,661,049 | 77,204,217 | 6 | 80,237,817 | 77,745,063 | 3 | 81,831,522 | 78,359,040 | 4 | ||||||||||||||||||||||||
Total assets | 91,337,365 | 86,990,170 | 5 | 89,576,037 | 87,358,298 | 3 | 90,947,174 | 87,320,579 | 4 | ||||||||||||||||||||||||
Noninterest bearing demand deposits | 20,825,633 | 21,389,000 | (3 | ) | 21,167,441 | 21,039,822 | 1 | 20,183,876 | 21,630,694 | (7 | ) | ||||||||||||||||||||||
Interest bearing transaction accounts | 34,783,054 | 33,059,701 | 5 | 34,197,814 | 32,783,151 | 4 | 36,277,316 | 33,743,887 | 8 | ||||||||||||||||||||||||
Total transaction accounts | 55,608,687 | 54,448,701 | 2 | 55,365,255 | 53,822,973 | 3 | 56,461,192 | 55,374,581 | 2 | ||||||||||||||||||||||||
Total deposits | 71,057,556 | 67,994,615 | 5 | 70,149,887 | 66,627,368 | 5 | 72,167,987 | 69,256,313 | 4 | ||||||||||||||||||||||||
Shareholder's equity | 13,420,931 | 13,150,577 | 2 | 13,266,930 | 13,035,797 | 2 | 13,512,529 | 13,013,310 | 4 |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||
Nonaccrual loans [a] | $ | 751,486 | $ | 628,159 | $ | 662,991 | $ | 647,210 | $ | 658,865 | ||||||||||
Loans 90 days or more past due [b] | 59,549 | 44,765 | 39,143 | 45,904 | 58,378 | |||||||||||||||
TDRs 90 days or more past due | 411 | 444 | 491 | 700 | 751 | |||||||||||||||
Total nonperforming loans [a] | 811,446 | 673,368 | 702,625 | 693,814 | 717,994 | |||||||||||||||
Other real estate owned, net (OREO) | 16,869 | 18,706 | 16,499 | 16,147 | 17,278 | |||||||||||||||
Other repossessed assets | 12,031 | 9,875 | 13,117 | 11,278 | 13,473 | |||||||||||||||
Total nonperforming assets | $ | 840,346 | $ | 701,949 | $ | 732,241 | $ | 721,239 | $ | 748,745 | ||||||||||
TDRs accruing and past due less than 90 days | $ | 109,190 | $ | 92,606 | $ | 99,251 | $ | 101,285 | $ | 100,492 | ||||||||||
Total nonperforming loans as a % of loans | 1.24 | % | 1.04 | % | 1.11 | % | 1.11 | % | 1.16 | % | ||||||||||
Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets | 1.29 | 1.09 | 1.16 | 1.16 | 1.21 | |||||||||||||||
[a] Includes loans held for sale. | ||||||||||||||||||||
[b] Excludes loans classified as troubled debt restructurings (TDRs). |
Three Months Ended | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 875,393 | $ | 860,000 | $ | 832,071 | $ | 842,760 | $ | 849,119 | ||||||||||
Net charge-offs (NCO) | 112,298 | 79,571 | 63,351 | 67,718 | 65,194 | |||||||||||||||
Provision for loan losses | 122,147 | 94,964 | 91,280 | 57,029 | 58,835 | |||||||||||||||
Balance at end of period | $ | 885,242 | $ | 875,393 | $ | 860,000 | $ | 832,071 | $ | 842,760 | ||||||||||
Allowance for loan losses as a % of total loans | 1.36 | % | 1.36 | % | 1.36 | % | 1.34 | % | 1.37 | % | ||||||||||
Allowance for loan losses as a % of nonperforming loans [c] | 109.09 | 130.00 | 122.40 | 119.93 | 117.38 | |||||||||||||||
Allowance for loan losses as a % of nonperforming assets [c] | 105.34 | 124.71 | 117.45 | 115.37 | 112.56 | |||||||||||||||
Annualized as a % of average loans: | ||||||||||||||||||||
NCO - QTD | 0.68 | 0.49 | 0.40 | 0.44 | 0.42 | |||||||||||||||
NCO - YTD | 0.51 | 0.45 | 0.42 | 0.44 | 0.47 | |||||||||||||||
[c] Includes loans held for sale that are on nonaccrual status. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||
Average Balance | Income/Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/Rate | |||||||||||||||||
YIELD/RATE ANALYSIS | ||||||||||||||||||||||
(Taxable Equivalent Basis) | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||
Earning assets: | ||||||||||||||||||||||
Loans | $ | 65,287,838 | $ | 799,829 | 4.86 | % | $ | 61,170,130 | $ | 661,873 | 4.29 | % | ||||||||||
Debt securities available for sale [a] | 11,186,986 | 59,029 | 2.09 | 12,192,516 | 56,890 | 1.85 | ||||||||||||||||
Debt securities held to maturity | 2,740,315 | 21,376 | 3.09 | 1,056,906 | 9,508 | 3.57 | ||||||||||||||||
Other earning assets [b] | 2,758,708 | 20,044 | 2.88 | 2,929,910 | 11,849 | 1.60 | ||||||||||||||||
Total earning assets [a] | 81,973,847 | 900,278 | 4.36 | 77,349,462 | 740,120 | 3.80 | ||||||||||||||||
Allowance for loan losses | (886,426 | ) | (853,546 | ) | ||||||||||||||||||
Unrealized loss on debt securities available for sale | (312,798 | ) | (145,245 | ) | ||||||||||||||||||
Other assets | 10,562,742 | 10,639,499 | ||||||||||||||||||||
Total assets | $ | 91,337,365 | $ | 86,990,170 | ||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||
Interest bearing demand deposits | $ | 7,963,379 | $ | 15,349 | 0.76 | $ | 7,843,974 | $ | 7,995 | 0.40 | ||||||||||||
Savings and money market accounts | 26,819,675 | 72,530 | 1.07 | 25,215,727 | 34,463 | 0.54 | ||||||||||||||||
Certificates and other time deposits | 15,448,869 | 75,843 | 1.95 | 13,545,914 | 45,558 | 1.33 | ||||||||||||||||
Total interest bearing deposits | 50,231,923 | 163,722 | 1.29 | 46,605,615 | 88,016 | 0.75 | ||||||||||||||||
FHLB and other borrowings | 4,664,076 | 36,573 | 3.11 | 3,551,958 | 22,392 | 2.50 | ||||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase [b] | 138,953 | 3,849 | 10.99 | 40,666 | 464 | 4.53 | ||||||||||||||||
Other short-term borrowings | 65,994 | 591 | 3.55 | 114,140 | 2,191 | 7.62 | ||||||||||||||||
Total interest bearing liabilities | 55,100,946 | 204,735 | 1.47 | 50,312,379 | 113,063 | 0.89 | ||||||||||||||||
Noninterest bearing deposits | 20,825,633 | 21,389,000 | ||||||||||||||||||||
Other noninterest bearing liabilities | 1,989,855 | 2,138,214 | ||||||||||||||||||||
Total liabilities | 77,916,434 | 73,839,593 | ||||||||||||||||||||
Shareholder's equity | 13,420,931 | 13,150,577 | ||||||||||||||||||||
Total liabilities and shareholder's equity | $ | 91,337,365 | $ | 86,990,170 | ||||||||||||||||||
Net interest income/ net interest spread | 695,543 | 2.89 | % | 627,057 | 2.91 | % | ||||||||||||||||
Net yield on earning assets | 3.37 | % | 3.22 | % | ||||||||||||||||||
Total taxable equivalent adjustment | 13,355 | 23,512 | ||||||||||||||||||||
Net interest income | $ | 682,188 | $ | 603,545 | ||||||||||||||||||
[a] Excludes adjustment for market valuation. | ||||||||||||||||||||||
[b] Yield/rate reflects impact of balance sheet offsetting. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||
Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |||||||||||||||||
YIELD/RATE ANALYSIS | ||||||||||||||||||||||
(Taxable Equivalent Basis) | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||
Earning assets: | ||||||||||||||||||||||
Loans | $ | 63,761,869 | $ | 2,960,170 | 4.64 | % | $ | 60,419,711 | $ | 2,521,613 | 4.17 | % | ||||||||||
Debt securities available for sale [a] | 11,390,313 | 222,627 | 1.95 | 11,769,440 | 212,730 | 1.81 | ||||||||||||||||
Debt securities held to maturity | 2,298,737 | 67,347 | 2.93 | 1,120,472 | 39,128 | 3.49 | ||||||||||||||||
Other earning assets [b] | 3,069,415 | 66,792 | 2.18 | 4,548,737 | 79,712 | 1.75 | ||||||||||||||||
Total earning assets [a] | 80,520,334 | 3,316,936 | 4.12 | 77,858,360 | 2,853,183 | 3.66 | ||||||||||||||||
Allowance for loan losses | (859,475 | ) | (840,359 | ) | ||||||||||||||||||
Unrealized loss on debt securities available for sale | (282,517 | ) | (113,297 | ) | ||||||||||||||||||
Other assets | 10,197,695 | 10,453,594 | ||||||||||||||||||||
Total assets | $ | 89,576,037 | $ | 87,358,298 | ||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||
Interest bearing demand deposits | $ | 7,950,561 | 48,599 | 0.61 | $ | 7,858,504 | 27,206 | 0.35 | ||||||||||||||
Savings and money market accounts | 26,247,253 | 224,009 | 0.85 | 24,924,647 | 107,106 | 0.43 | ||||||||||||||||
Certificates and other time deposits | 14,784,632 | 244,682 | 1.65 | 12,804,395 | 165,005 | 1.29 | ||||||||||||||||
Total interest bearing deposits | 48,982,446 | 517,290 | 1.06 | 45,587,546 | 299,317 | 0.66 | ||||||||||||||||
FHLB and other borrowings | 4,095,054 | 130,372 | 3.18 | 3,973,465 | 93,814 | 2.36 | ||||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase [b] | 109,852 | 8,953 | 8.15 | 58,624 | 16,926 | 28.87 | ||||||||||||||||
Other short-term borrowings | 68,423 | 2,081 | 3.04 | 1,703,738 | 26,424 | 1.55 | ||||||||||||||||
Total interest bearing liabilities | 53,255,775 | 658,696 | 1.24 | 51,323,373 | 436,481 | 0.85 | ||||||||||||||||
Noninterest bearing deposits | 21,167,441 | 21,039,822 | ||||||||||||||||||||
Other noninterest bearing liabilities | 1,885,891 | 1,959,306 | ||||||||||||||||||||
Total liabilities | 76,309,107 | 74,322,501 | ||||||||||||||||||||
Shareholder's equity | 13,266,930 | 13,035,797 | ||||||||||||||||||||
Total liabilities and shareholder's equity | $ | 89,576,037 | $ | 87,358,298 | ||||||||||||||||||
Net interest income/ net interest spread | 2,658,240 | 2.88 | % | 2,416,702 | 2.81 | % | ||||||||||||||||
Net yield on earning assets | 3.30 | % | 3.10 | % | ||||||||||||||||||
Total taxable equivalent adjustment | 51,662 | 86,535 | ||||||||||||||||||||
Net interest income | $ | 2,606,578 | $ | 2,330,167 | ||||||||||||||||||
[a] Excludes adjustment for market valuation. | ||||||||||||||||||||||
[b] Yield/rate reflects impact of balance sheet offsetting. |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||||||
Year Ended | Three Months Ended | ||||||||||||||||||||||||||||||
December 31, | % | 2018 | 2017 | ||||||||||||||||||||||||||||
2018 | 2017 | Change | December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 236,673 | $ | 222,110 | 7 | $ | 61,606 | $ | 60,325 | $ | 58,581 | $ | 56,161 | $ | 56,070 | ||||||||||||||||
Card and merchant processing fees | 174,927 | 128,129 | 37 | 46,982 | 44,219 | 44,048 | 39,678 | 33,380 | |||||||||||||||||||||||
Retail investment sales | 112,652 | 109,214 | 3 | 24,476 | 28,286 | 29,782 | 30,108 | 26,338 | |||||||||||||||||||||||
Investment banking and advisory fees | 77,684 | 103,701 | (25 | ) | 15,286 | 13,956 | 24,546 | 23,896 | 24,957 | ||||||||||||||||||||||
Money transfer income | 91,681 | 101,509 | (10 | ) | 23,632 | 23,441 | 23,920 | 20,688 | 24,101 | ||||||||||||||||||||||
Asset management fees | 43,811 | 40,465 | 8 | 10,909 | 11,143 | 10,989 | 10,770 | 10,303 | |||||||||||||||||||||||
Corporate and correspondent investment sales | 51,675 | 38,052 | 36 | 10,774 | 12,490 | 16,355 | 12,056 | 11,803 | |||||||||||||||||||||||
Mortgage banking income | 26,833 | 14,356 | 87 | 3,755 | 6,717 | 7,964 | 8,397 | 4,720 | |||||||||||||||||||||||
Bank owned life insurance | 17,822 | 17,108 | 4 | 4,635 | 4,597 | 4,375 | 4,215 | 4,397 | |||||||||||||||||||||||
Other | 223,151 | 268,298 | (17 | ) | 68,551 | 53,285 | 49,459 | 51,856 | 101,100 | ||||||||||||||||||||||
1,056,909 | 1,042,942 | 1 | 270,606 | 258,459 | 270,019 | 257,825 | 297,169 | ||||||||||||||||||||||||
Investment securities gains, net | — | 3,033 | (100 | ) | — | — | — | — | — | ||||||||||||||||||||||
Total noninterest income | $ | 1,056,909 | $ | 1,045,975 | 1 | $ | 270,606 | $ | 258,459 | $ | 270,019 | $ | 257,825 | $ | 297,169 | ||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||||||
Salaries, benefits and commissions | $ | 1,154,791 | $ | 1,131,971 | 2 | $ | 285,820 | $ | 292,679 | $ | 286,852 | $ | 289,440 | $ | 296,146 | ||||||||||||||||
Professional services | 277,154 | 263,490 | 5 | 79,529 | 68,403 | 68,577 | 60,645 | 76,068 | |||||||||||||||||||||||
Equipment | 257,565 | 247,891 | 4 | 66,806 | 63,739 | 63,660 | 63,360 | 63,200 | |||||||||||||||||||||||
Net occupancy | 166,768 | 166,693 | — | 41,161 | 42,514 | 42,671 | 40,422 | 41,125 | |||||||||||||||||||||||
Money transfer expense | 62,138 | 65,790 | (6 | ) | 15,995 | 16,120 | 16,302 | 13,721 | 15,721 | ||||||||||||||||||||||
Marketing | 48,866 | 52,220 | (6 | ) | 15,884 | 12,381 | 11,814 | 8,787 | 7,950 | ||||||||||||||||||||||
Communications | 30,582 | 20,554 | 49 | 9,241 | 10,827 | 5,251 | 5,263 | 4,970 | |||||||||||||||||||||||
Other | 352,096 | 362,978 | (3 | ) | 87,556 | 98,847 | 84,418 | 81,275 | 110,648 | ||||||||||||||||||||||
Total noninterest expense | $ | 2,349,960 | $ | 2,311,587 | 2 | $ | 601,992 | $ | 605,510 | $ | 579,545 | $ | 562,913 | $ | 615,828 |
BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
NON-GAAP RECONCILIATION | ||||||||||||||||
Computation of Operating Income: | ||||||||||||||||
Net interest income (GAAP) | $ | 682,188 | $ | 603,545 | $ | 2,606,578 | $ | 2,330,167 | ||||||||
Plus: noninterest income (GAAP) | 270,606 | 297,169 | 1,056,909 | 1,045,975 | ||||||||||||
Less: noninterest expense (GAAP) | 601,992 | 615,828 | 2,349,960 | 2,311,587 | ||||||||||||
Plus: goodwill impairment (GAAP) | — | — | — | — | ||||||||||||
Operating income (non-GAAP) | $ | 350,802 | $ | 284,886 | $ | 1,313,527 | $ | 1,064,555 | ||||||||
Computation of Average Tangible Equity: | ||||||||||||||||
Total stockholder's equity (average) (GAAP) | $ | 13,420,931 | 13,150,577 | $ | 13,266,930 | 13,035,797 | ||||||||||
Less: Goodwill and other intangibles (average) (GAAP) | 5,039,847 | 5,039,014 | 5,039,974 | 5,043,805 | ||||||||||||
Average tangible equity (non-GAAP) [B] | $ | 8,381,084 | 8,111,563 | $ | 8,226,956 | 7,991,992 | ||||||||||
Net income (GAAP) [A] | $ | 195,826 | 52,072 | $ | 763,429 | 460,786 | ||||||||||
Return on average tangible equity (non-GAAP) ([A]/[B], annualized) | 9.27 | % | 2.55 | % | 9.28 | % | 5.77 | % | ||||||||
Computation of Adjusted Net Income, Return on Average Assets and Return on Average Tangible Equity: | ||||||||||||||||
Net income (GAAP) | $ | 195,826 | $ | 52,072 | $ | 763,429 | $ | 460,786 | ||||||||
Plus: Revaluation of net deferred tax assets (GAAP) | — | 121,243 | — | 121,243 | ||||||||||||
Adjusted net income (non-GAAP) [C] | $ | 195,826 | 173,315 | 763,429 | 582,029 | |||||||||||
Average assets (GAAP) [D] | 91,337,365 | 86,990,170 | 89,576,037 | 87,358,298 | ||||||||||||
Return on average assets - adjusted (non-GAAP) ([C]/[D], annualized) | 0.85 | % | 0.79 | % | 0.85 | % | 0.67 | % | ||||||||
Return on average tangible equity - adjusted (non-GAAP) ([C]/[B], annualized) | 9.27 | 8.48 | 9.28 | 7.28 |
BBVA COMPASS BANCSHARES, INC SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||||||
At or Quarter Ended December 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 | $ | 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 | $ | — |
At or Quarter Ended September 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 | $ | 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 | $ | — |
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 | $ | — |
BBVA COMPASS BANCSHARES, INC. BALANCE SHEET (Unaudited) (In Thousands) | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||
Assets: | |||||||||||||||||||
Cash and due from banks | $ | 1,217,319 | $ | 1,122,747 | $ | 1,138,034 | $ | 1,098,345 | $ | 1,313,022 | |||||||||
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 2,115,307 | 2,404,164 | 2,438,585 | 2,424,987 | 2,769,804 | ||||||||||||||
Cash and cash equivalents | 3,332,626 | 3,526,911 | 3,576,619 | 3,523,332 | 4,082,826 | ||||||||||||||
Trading account assets | 237,656 | 216,749 | 277,694 | 216,465 | 220,496 | ||||||||||||||
Debt securities available for sale | 10,981,216 | 11,134,860 | 11,293,724 | 11,434,152 | 12,219,632 | ||||||||||||||
Debt securities held to maturity | 2,885,613 | 2,490,568 | 2,198,186 | 1,975,729 | 1,046,093 | ||||||||||||||
Loans held for sale | 68,766 | 73,569 | 52,041 | 76,401 | 67,110 | ||||||||||||||
Loans | 65,186,554 | 64,457,279 | 63,290,977 | 62,207,861 | 61,623,768 | ||||||||||||||
Allowance for loan losses | (885,242 | ) | (875,393 | ) | (860,000 | ) | (832,071 | ) | (842,760 | ) | |||||||||
Net loans | 64,301,312 | 63,581,886 | 62,430,977 | 61,375,790 | 60,781,008 | ||||||||||||||
Premises and equipment, net | 1,152,958 | 1,155,795 | 1,170,798 | 1,189,253 | 1,214,874 | ||||||||||||||
Bank owned life insurance | 736,171 | 731,527 | 728,703 | 724,600 | 722,596 | ||||||||||||||
Goodwill | 4,983,296 | 4,983,296 | 4,983,296 | 4,983,296 | 4,983,296 | ||||||||||||||
Other assets | 2,267,560 | 2,152,495 | 2,042,624 | 2,109,484 | 1,982,648 | ||||||||||||||
Total assets | $ | 90,947,174 | $ | 90,047,656 | $ | 88,754,662 | $ | 87,608,502 | $ | 87,320,579 | |||||||||
Liabilities: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest bearing | $ | 20,183,876 | $ | 20,968,391 | $ | 21,433,218 | $ | 21,792,498 | $ | 21,630,694 | |||||||||
Interest bearing | 51,984,111 | 49,409,666 | 48,714,490 | 48,147,914 | 47,625,619 | ||||||||||||||
Total deposits | 72,167,987 | 70,378,057 | 70,147,708 | 69,940,412 | 69,256,313 | ||||||||||||||
FHLB and other borrowings | 3,987,590 | 5,045,302 | 4,157,284 | 3,322,940 | 3,959,930 | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 102,275 | 78,004 | 185,511 | 5,933 | 19,591 | ||||||||||||||
Other short-term borrowings | — | 68,714 | 81,547 | 29,999 | 17,996 | ||||||||||||||
Accrued expenses and other liabilities | 1,176,793 | 1,135,092 | 991,968 | 1,165,079 | 1,053,439 | ||||||||||||||
Total liabilities | 77,434,645 | 76,705,169 | 75,564,018 | 74,464,363 | 74,307,269 | ||||||||||||||
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 | 14,545,849 | 14,695,197 | 14,699,773 | 14,814,744 | 14,818,608 | ||||||||||||||
Retained deficit | (1,107,198 | ) | (1,302,525 | ) | (1,476,614 | ) | (1,660,417 | ) | (1,868,659 | ) | |||||||||
Accumulated other comprehensive loss | (186,848 | ) | (311,422 | ) | (293,323 | ) | (271,431 | ) | (197,405 | ) | |||||||||
Total BBVA Compass Bancshares, Inc. shareholder’s equity | 13,483,508 | 13,312,955 | 13,161,541 | 13,114,601 | 12,984,249 | ||||||||||||||
Noncontrolling interests | 29,021 | 29,532 | 29,103 | 29,538 | 29,061 | ||||||||||||||
Total shareholder’s equity | 13,512,529 | 13,342,487 | 13,190,644 | 13,144,139 | 13,013,310 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 90,947,174 | $ | 90,047,656 | $ | 88,754,662 | $ | 87,608,502 | $ | 87,320,579 |
BBVA COMPASS BANCSHARES INCOME STATEMENTS (Unaudited) (In Thousands) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||
Interest income: | |||||||||||||||||||
Interest and fees on loans | $ | 787,858 | $ | 751,470 | $ | 711,006 | $ | 663,935 | $ | 641,322 | |||||||||
Interest on debt securities available for sale | 59,028 | 53,201 | 53,792 | 56,602 | 56,883 | ||||||||||||||
Interest on debt securities held to maturity | 19,993 | 16,110 | 13,062 | 12,426 | 6,555 | ||||||||||||||
Interest on trading account assets | 704 | 833 | 924 | 750 | 1,005 | ||||||||||||||
Interest and dividends on other earning assets | 19,340 | 17,449 | 14,916 | 11,875 | 10,843 | ||||||||||||||
Total interest income | 886,923 | 839,063 | 793,700 | 745,588 | 716,608 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Interest on deposits | 163,722 | 139,898 | 116,323 | 97,347 | 88,016 | ||||||||||||||
Interest on FHLB and other borrowings | 36,573 | 37,131 | 31,912 | 24,756 | 22,392 | ||||||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 3,849 | 3,169 | 1,399 | 536 | 464 | ||||||||||||||
Interest on other short-term borrowings | 591 | 579 | 567 | 344 | 2,191 | ||||||||||||||
Total interest expense | 204,735 | 180,777 | 150,201 | 122,983 | 113,063 | ||||||||||||||
Net interest income | 682,188 | 658,286 | 643,499 | 622,605 | 603,545 | ||||||||||||||
Provision for loan losses | 122,147 | 94,964 | 91,280 | 57,029 | 58,835 | ||||||||||||||
Net interest income after provision for loan losses | 560,041 | 563,322 | 552,219 | 565,576 | 544,710 | ||||||||||||||
Noninterest income: | |||||||||||||||||||
Service charges on deposit accounts | 61,606 | 60,325 | 58,581 | 56,161 | 56,070 | ||||||||||||||
Card and merchant processing fees | 46,982 | 44,219 | 44,048 | 39,678 | 33,380 | ||||||||||||||
Retail investment sales | 24,476 | 28,286 | 29,782 | 30,108 | 26,338 | ||||||||||||||
Investment banking and advisory fees | 15,286 | 13,956 | 24,546 | 23,896 | 24,957 | ||||||||||||||
Money transfer income | 23,632 | 23,441 | 23,920 | 20,688 | 24,101 | ||||||||||||||
Asset management fees | 10,909 | 11,143 | 10,989 | 10,770 | 10,303 | ||||||||||||||
Corporate and correspondent investment sales | 10,774 | 12,490 | 16,355 | 12,056 | 11,803 | ||||||||||||||
Mortgage banking income | 3,755 | 6,717 | 7,964 | 8,397 | 4,720 | ||||||||||||||
Bank owned life insurance | 4,635 | 4,597 | 4,375 | 4,215 | 4,397 | ||||||||||||||
Other | 68,551 | 53,285 | 49,459 | 51,856 | 101,100 | ||||||||||||||
Total noninterest income | 270,606 | 258,459 | 270,019 | 257,825 | 297,169 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||
Salaries, benefits and commissions | 285,820 | 292,679 | 286,852 | 289,440 | 296,146 | ||||||||||||||
Professional services | 79,529 | 68,403 | 68,577 | 60,645 | 76,068 | ||||||||||||||
Equipment | 66,806 | 63,739 | 63,660 | 63,360 | 63,200 | ||||||||||||||
Net occupancy | 41,161 | 42,514 | 42,671 | 40,422 | 41,125 | ||||||||||||||
Money transfer expense | 15,995 | 16,120 | 16,302 | 13,721 | 15,721 | ||||||||||||||
Marketing | 15,884 | 12,381 | 11,814 | 8,787 | 7,950 | ||||||||||||||
Communications | 9,241 | 10,827 | 5,251 | 5,263 | 4,970 | ||||||||||||||
Other | 87,556 | 98,847 | 84,418 | 81,275 | 110,648 | ||||||||||||||
Total noninterest expense | 601,992 | 605,510 | 579,545 | 562,913 | 615,828 | ||||||||||||||
Net income before income tax expense | 228,655 | 216,271 | 242,693 | 260,488 | 226,051 | ||||||||||||||
Income tax expense | 32,829 | 41,756 | 58,295 | 51,798 | 173,979 | ||||||||||||||
Net income | 195,826 | 174,515 | 184,398 | 208,690 | 52,072 | ||||||||||||||
Less: net income attributable to noncontrolling interests | 499 | 426 | 595 | 461 | 547 | ||||||||||||||
Net income attributable to BBVA Compass Bancshares, Inc. | $ | 195,327 | $ | 174,089 | $ | 183,803 | $ | 208,229 | $ | 51,525 |