02:06:45 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



BBVA Compass reports earnings of $364 million for the first nine months of 2014

2014-10-29 09:30 ET - News Release

- Total loans end the quarter at $55.2 billion, up 12 percent from prior year levels
- Total deposits increase 15 percent to $60.3 billion, driven by an 18 percent increase in interest bearing transaction accounts
- Key credit quality metrics show continued improvement; nonperforming asset ratio drops to 0.80 percent from 1.39 percent and net charge-off ratio declines to 0.23 percent
- Bank successfully completes offering of $1 billion of senior notes during the quarter, marks first debt issuance in seven years
- Third quarter earnings increase 29% from prior year

HOUSTON, Oct. 29, 2014 /PRNewswire/ -- BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income attributable to shareholder of $364 million for the first nine months of 2014, a 4 percent increase compared to $349 million for the first nine months of 2013. Return on average assets and return on average tangible equity1 for the first nine months of 2014 were 0.65 percent and 7.41 percent, respectively.

BBVA Compass corporate logo

Net income attributable to shareholder for the third quarter of 2014 was $143 million, a 29 percent increase from the $111 million earned during the third quarter of 2013. Return on average assets and return on average tangible equity1 for the third quarter of 2014 were 0.73 percent and 8.48 percent, respectively.

"BBVA Compass' strong financial performance this quarter is tied to our focus on our customers and our ability to quickly adapt to meet their rapidly changing needs," said Manolo Sanchez, chairman and CEO of BBVA Compass. "Loan and deposit growth was diversified across both commercial and consumer portfolios, with total loans increasing 12 percent and total deposits increasing 15 percent. Low interest rates are still impeding revenue growth throughout our industry, but we're well-positioned to benefit when they increase. Our efforts to diversify and expand our fee-based businesses are evident as well, with noninterest income rising 4 percent."

Sanchez said improving operational efficiencies, disciplined expense management and maintaining sound risk standards are essential during this challenging interest rate environment. Accordingly, total noninterest expenses declined 2 percent year-over-year. Credit quality metrics experienced further improvement as nonperforming assets as a percentage of loans, other real estate and other repossessed assets dropped to 0.80 percent and net charge-offs as a percentage of average loans dipped to 23 basis points compared to 47 basis points for the first nine months of 2013.

Total shareholder's equity ended the third quarter of 2014 at $11.9 billion, a 4 percent increase from third quarter 2013 levels.

"Each of our regulatory capital ratios remains significantly above 'well-capitalized' levels," Sanchez said. "The results of our mid-cycle stress test required under the Dodd-Frank Act provide further evidence of our commitment to maintaining a strong capital position."

During the quarter, BBVA Compass also further enhanced its liquidity position and diversified its funding base by issuing $1 billion of senior bank notes. The offerings included $400 million of 3-year, 1.8750% unsecured senior notes and $600 million of 5-year, 2.750% unsecured senior notes. This marked the bank's first debt offering in seven years, with orders peaking at $2.5 billion during the offering period.

1 Average tangible equity is a non-GAAP financial measure that we believe aids in understanding certain areas of our performance. The calculation of this measure is included on the page titled Non-GAAP Reconciliation.

About BBVA Compass

BBVA Compass Bancshares, Inc. is a Sunbelt-based bank holding company whose lead subsidiary, BBVA Compass, operates 673 branches, including 342 in Texas, 89 in Alabama, 77 in Arizona, 62 in California, 45 in Florida, 38 in Colorado and 20 in New Mexico. BBVA Compass ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (5th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration and recently earned the top ranking with customers in American Banker's 2014 annual reputation survey of the top 25 largest U.S. retail banks. Additional information about BBVA Compass can be found under the Investor Relations tab at www.bbvacompass.com, by following @BBVACompassNews on Twitter or visiting newsroom.bbvacompass.com

About BBVA Group

BBVA Compass Bancshares, Inc. is a wholly owned subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a customer-centric global financial services group founded in 1857. The Group has a solid position in Spain, is the largest financial institution in Mexico and has leading franchises in South America and the Sunbelt region of the United States. Its diversified business is geared toward high-growth markets and relies on technology as a key sustainable competitive advantage. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies the best practices. The Group is present in the main sustainability indexes. More information about the BBVA Group can be found at www.bbva.com.

Forward-Looking Statements
Certain statements in this press release may contain forward-looking statements about the Company and its industry that involve substantial risks and uncertainties. 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. For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Risk Factors" section of the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 28, 2014, as updated by our subsequent SEC filings.

 


BBVA COMPASS BANCSHARES, INC.







(Unaudited)







(Dollars in thousands)




























Three Months Ended 
 September 30,


%


Nine Months Ended 
 September 30,


%









2014


2013


Change


2014


2013


Change







EARNINGS SUMMARY



















Net interest income


$       481,968


$       501,911


(4)


$    1,476,041


$    1,535,172


(4)







Noninterest income [a]


216,578


210,985


3


633,911


610,570


4







Total revenue [a]


698,546


712,896


(2)


2,109,952


2,145,742


(2)







Investment securities gain, net


9,710



 NM 


47,608


33,030


44







Gain (loss) on prepayment of FHLB advances


143



 NM 


(315)


21,775


 NM 







Provision for loan losses


3,869


37,534


(90)


86,387


81,386


6







Noninterest expense


533,142


522,139


2


1,597,271


1,622,504


(2)







Pretax income


171,388


153,223


12


473,587


496,657


(5)







Income tax expense


27,770


41,930


(34)


107,467


146,033


(26)







Net income


143,618


111,293


29


366,120


350,624


4







Net income attributable to noncontrolling interests


815


647


26


1,772


1,608


10







Net income attributable to shareholder


$       142,803


$       110,646


29


$       364,348


$       349,016


4


























SELECTED RATIOS



















Return on average assets


0.73 %


0.64 %




0.65 %


0.67 %









Return on average tangible equity [b]


8.48


7.08




7.41


7.63









Average common equity to average assets


15.30


16.39




15.56


16.19









Average loans to average total deposits


92.75


94.04




93.49


90.32









Tier I capital ratio [c]


11.25


11.83




11.25


11.83









Total capital ratio [c]


13.31


14.10




13.31


14.10









Leverage ratio [c]


9.58


10.16




9.58


10.16




































































Average for Three Months




Average for Nine Months




Ending Balance





Ended September 30,


%


Ended September 30,


%


September 30,


%



2014


2013


Change


2014


2013


Change


2014


2013


Change

BALANCE SHEET HIGHLIGHTS















Total loans


$  55,349,649


$  48,822,516


13


$  53,751,488


$  47,101,663


14


$  55,200,115


$  49,458,966


12

Total investment securities


10,593,570


9,837,170


8


10,378,884


10,160,790


2


10,744,398


9,813,436


9

Earning assets


66,142,913


58,815,172


12


64,268,874


57,411,046


12


66,503,180


59,384,525


12

Total assets


77,909,087


69,325,343


12


75,774,391


69,706,435


9


79,192,189


70,087,078


13

Noninterest bearing demand deposits


17,039,477


14,731,694


16


16,349,912


14,281,481


14


16,979,235


15,068,999


13

Interest bearing transaction accounts


29,558,841


25,709,134


15


28,290,142


25,848,641


9


30,283,451


25,657,859


18

Total transaction accounts


46,598,318


40,440,828


15


44,640,054


40,130,122


11


47,262,686


40,726,858


16

Total deposits


59,675,681


51,916,791


15


57,494,671


52,148,609


10


60,270,958


52,242,409


15

Shareholder's equity


11,917,267


11,361,991


5


11,786,754


11,285,368


4


11,927,053


11,421,396


4


[a]  Excludes net gain on sales of investment securities and gain (loss) on prepayment of FHLB advances.

[b]  Non-GAAP measure that we believe aids in understanding certain areas of our performance.  The calculation of this measure is included on the page titled Non-GAAP Reconciliation.

[c]  Current period regulatory capital ratios are estimated.

NM = Not meaningful

 


BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)








2014


2013



September 30


June 30


March 31


December 31


September 30

NONPERFORMING ASSETS











Nonaccrual loans


$      344,937


$  341,807


$  388,597


$     441,718


$       543,902

Loans 90 days or more past due [a]


76,196


76,219


83,490


82,814


98,035

TDRs 90 days or more past due


991


629


204


1,317


739

Total nonperforming loans [b]


422,124


418,655


472,291


525,849


642,676

Other real estate owned, net (OREO)


17,058


21,113


25,817


23,228


41,493

Other repossessed assets


3,618


2,796


3,313


3,360


3,896

Total nonperforming assets


$      442,800


$  442,564


$  501,421


$     552,437


$       688,065












TDRs accruing and past due less than 90 days


$      170,789


$  177,630


$  202,075


$     208,391


$       225,961












Covered loans [c]


580,756


613,152


701,158


734,190


832,884

Covered nonperforming loans [c]


56,221


59,331


63,664


62,038


76,301

Covered nonperforming assets [c]


59,609


62,824


67,500


66,151


89,620












Total nonperforming loans as a % of loans


0.76 %


0.77 %


0.89 %


1.03 %


1.30 %

Total nonperforming loans as a % of loans, excluding covered loans


0.67


0.67


0.78


0.93


1.16

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


0.80


0.81


0.95


1.09


1.39

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


0.70


0.71


0.83


0.97


1.23














Three Months Ended





2014




2013



September 30


June 30


March 31


December 31


September 30

ALLOWANCE FOR LOAN LOSSES











Balance at beginning of period


$      714,760


$  707,665


$  700,719


$     717,937


$       723,511

Net charge-offs (NCO)


22,751


38,157


30,320


43,378


43,108

Provision for loan losses


3,869


45,252


37,266


26,160


37,534

Balance at end of period


$      695,878


$  714,760


$  707,665


$     700,719


$       717,937












Allowance for loan losses as a % of total loans


1.27 %


1.32 %


1.34 %


1.38 %


1.45 %

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


164.85


170.73


149.84


133.25


111.71

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


157.15


161.50


141.13


126.84


104.34












Annualized as a % of average loans:











NCO - QTD


0.16


0.28


0.24


0.34


0.35

NCO - YTD


0.23


0.26


0.24


0.44


0.47

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

[b]  Includes loans held for sale.

[c]  Covered assets includes loans and OREO acquired from the FDIC subject to loss sharing agreements.

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

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)
















Three Months Ended September 30,



2014


2013



Average Balance


Income/ Expense


Yield/ Rate


Average Balance


Income/ Expense


Yield/ Rate

YIELD/RATE ANALYSIS













(Taxable Equivalent Basis)













Assets













Earning assets:













Loans


$  55,349,649


$  523,843


3.75 %


$  48,822,516


$  528,926


4.30 %

Investment securities available for sale [a]


9,128,401


50,150


2.18


8,249,468


43,797


2.11

Investment securities held to maturity


1,428,009


9,871


2.74


1,582,196


11,051


2.77

Other earning assets


199,694


984


1.95


155,486


937


2.39

Total earning assets [a]


66,105,753


584,848


3.51


58,809,666


584,711


3.94

Allowance for loan losses


(712,811)






(723,496)





Unrealized gain (loss) on securities available for sale


37,160






5,506





Other assets


12,478,985






11,233,667





Total assets


$  77,909,087






$  69,325,343


















Liabilities and Shareholders' Equity













Interest bearing liabilities:













Interest bearing demand deposits


$    7,079,309


$      2,971


0.17


$    6,575,743


$      2,735


0.17

Savings and money market accounts


22,479,532


24,256


0.43


19,133,391


15,596


0.32

Certificates and other time deposits


12,956,374


39,478


1.21


11,372,640


31,647


1.10

Foreign office deposits


120,989


58


0.19


103,323


53


0.20

   Total interest bearing deposits


42,636,204


66,763


0.62


37,185,097


50,031


0.53

FHLB and other borrowings


3,827,684


16,399


1.70


4,304,941


17,129


1.58

Federal funds purchased and securities sold under agreement to repurchase


838,802


447


0.21


831,754


446


0.21

Other short-term borrowings


51,290


394


3.05


11,519


39


1.34

Total interest bearing liabilities


47,353,980


84,003


0.70


42,333,311


67,645


0.63

Noninterest bearing deposits


17,039,477






14,731,694





Other noninterest bearing liabilities


1,598,363






898,347





Total liabilities


65,991,820






57,963,352





Shareholder's equity


11,917,267






11,361,991





Total liabilities and shareholder's equity


$  77,909,087






$  69,325,343


















Net interest income/ net interest spread




500,845


2.81 %




517,066


3.31 %

Net yield on earning assets






3.01 %






3.49 %














Total taxable equivalent adjustment




18,877






15,155
















Net interest income




$  481,968






$  501,911



[a] Excludes adjustment for market valuation.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)
















Nine Months Ended September 30,



2014


2013



Average Balance


Income/ Expense


Yield/ Rate


Average Balance


Income/ Expense


Yield/ Rate

YIELD/RATE ANALYSIS













(Taxable Equivalent Basis)













Assets













Earning assets:













Loans


$  53,751,488


$  1,578,007


3.93 %


$  47,101,663


$  1,614,343


4.58 %

Investment securities available for sale [a]


8,873,269


151,229


2.28


8,499,157


138,884


2.18

Investment securities held to maturity


1,465,399


30,310


2.77


1,541,575


32,747


2.84

Other earning assets


138,502


2,172


2.10


148,593


2,556


2.30

Total earning assets [a]


64,228,658


1,761,718


3.67


57,290,988


1,788,530


4.17

Allowance for loan losses


(707,630)






(764,558)





Unrealized gain (loss) on securities available for sale


40,216






120,058





Other assets


12,213,147






13,059,947





Total assets


$  75,774,391






$  69,706,435


















Liabilities and Shareholders' Equity













Interest bearing liabilities:













Interest bearing demand deposits


$    7,269,983


9,066


0.17


$    6,684,384


8,437


0.17

Savings and money market accounts


21,020,159


59,922


0.38


19,164,257


56,081


0.39

Certificates and other time deposits


12,733,405


111,717


1.17


11,899,480


95,501


1.07

Foreign office deposits


121,212


175


0.19


119,007


202


0.23

   Total interest bearing deposits


41,144,759


180,880


0.59


37,867,128


160,221


0.57

FHLB and other borrowings


4,070,692


48,947


1.61


4,188,876


49,070


1.57

Federal funds purchased and securities sold under agreement to repurchase


885,147


1,384


0.21


984,940


1,577


0.21

Other short-term borrowings


27,183


516


2.54


12,679


87


0.92

Total interest bearing liabilities


46,127,781


231,727


0.67


43,053,623


210,955


0.66

Noninterest bearing deposits


16,349,912






14,281,481





Other noninterest bearing liabilities


1,509,944






1,085,963





Total liabilities


63,987,637






58,421,067





Shareholder's equity


11,786,754






11,285,368





Total liabilities and shareholder's equity


$  75,774,391






$  69,706,435


















Net interest income/ net interest spread




1,529,991


3.00 %




1,577,575


3.51 %

Net yield on earning assets






3.18 %






3.68 %














Total taxable equivalent adjustment




53,950






42,403
















Net interest income




$  1,476,041






$  1,535,172



[a] Excludes adjustment for market valuation.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)




















Nine Months




Three Months Ended



Ended September 30


%





2014




2013



2014


2013


Change


September 30


June 30


March 31


December 31


September 30

NONINTEREST INCOME

















Service charges on deposit accounts


$     165,886


$     164,601


1


$        57,537


$    54,958


$    53,391


$       56,812


$        54,229

Card and merchant processing fees


81,459


76,869


6


28,682


28,473


24,304


25,320


26,132

Retail investment sales


83,053


71,724


16


27,645


28,844


26,564


25,552


22,034

Investment banking and advisory fees


63,226


33,646


88


18,750


22,280


22,196


13,958


21,382

Asset management fees


31,959


31,143


3


10,666


10,535


10,758


9,796


10,438

Corporate and correspondent investment sales


22,016


26,954


(18)


5,388


7,972


8,656


8,720


8,011

Mortgage banking income


18,924


32,221


(41)


8,498


6,150


4,276


3,178


7,610

Bank owned life insurance


12,807


12,901


(1)


4,603


4,237


3,967


4,846


4,222

Other


154,581


160,511


(4)


54,809


50,532


49,240


42,892


56,927



633,911


610,570


4


216,578


213,981


203,352


191,074


210,985

Investment securities gains, net


47,608


33,030


44


9,710


21,464


16,434


(1,659)


Gain (loss) on prepayment of FHLB and other borrowings


(315)


21,775


 NM 


143



(458)



Total noninterest income


$     681,204


$     665,375


2


$      226,431


$  235,445


$  219,328


$     189,415


$      210,985


















NONINTEREST EXPENSE

















Salaries, benefits and commissions


$     791,204


$     743,601


6


$      265,334


$  263,301


$  262,569


$     261,643


$      244,373

FDIC indemnification expense


80,736


211,706


(62)


18,748


30,370


31,618


55,453


55,064

Professional services


148,652


133,198


12


52,463


49,790


46,399


58,204


44,195

Equipment


165,562


148,989


11


56,355


55,469


53,738


59,070


50,483

Net occupancy


118,514


117,622


1


39,357


40,200


38,957


40,115


39,257

Marketing


30,097


28,140


7


11,587


9,986


8,524


9,212


9,146

Communications


18,605


18,573


-


5,964


6,294


6,347


7,392


7,080

Amortization of intangibles


38,800


46,386


(16)


12,635


13,631


12,534


14,305


14,884

Other


205,101


174,289


18


70,699


76,221


58,181


71,277


57,657

Total noninterest expense


$  1,597,271


$  1,622,504


(2)


$      533,142


$  545,262


$  518,867


$     576,671


$      522,139


















NM = Not meaningful





 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)












Three Months Ended September 30,


Nine Months Ended September 30,



2014


2013


2014


2013

NON-GAAP RECONCILIATION


















Computation of Average Tangible Equity:









Total stockholder's equity


$  11,917,267


$  11,361,991


$  11,786,754


$  11,285,368

Less: Goodwill and other intangibles


5,198,332


5,127,981


5,176,840


5,138,095

Tangible common equity


$    6,718,935


$    6,234,010


$    6,609,914


$    6,147,273










Logo - http://photos.prnewswire.com/prnh/20140825/139263

SOURCE BBVA Compass

© 2024 Canjex Publishing Ltd. All rights reserved.