HOUSTON, April 30, 2020 /PRNewswire/ -- BBVA
USA Bancshares, Inc., a
Sunbelt-based bank holding company (BBVA USA), reported today a net loss of
$2.2 billion for the first quarter of
2020. Included in first quarter 2020 results is goodwill impairment
(non-cash charge) totaling $2.2
billion reflecting the drastic change in macroeconomic
conditions and forecasts brought about by the COVID-19 pandemic.
Excluding the impact of this non-cash charge, the adjusted net
loss1 for the quarter was $52
million, further reflecting the abrupt decline in interest
rates and higher provision expense necessary to reflect the
economic and business disruption caused by the pandemic.
"Momentum from last quarter accelerated during the first quarter
in terms of customer activity as we posted very strong loan and
deposit growth, and a substantial pick-up in market driven
fee-based businesses which enabled us to deliver an increase in
operating income from fourth quarter levels," said Javier Rodríguez
Soler, president and CEO of BBVA USA.
"Despite these positive results, the severity of the COVID-19
pandemic on macroeconomic economic conditions and forecasts,
including the drastic drop in interest rates and subsequent decline
in oil prices, required us to reevaluate the carrying amount of
goodwill on our balance sheet. The resulting analysis resulted in a
goodwill impairment charge during the quarter that is reflected in
our results but has no impact on our liquidity position, regulatory
capital ratios, and the operations of our company or our ability to
meet our customers' needs."
At March 31, 2020, BBVA
USA had approximately $2.3 billion of goodwill remaining on its balance
sheet. An impairment test on the intangible asset is conducted on
an annual basis or, in this case, as necessary given a significant
change in economic conditions, forecasts and other
factors.
"I have been particularly proud of our team of employees and
their response to the COVID-19 pandemic," noted Rodríguez Soler.
"At BBVA our culture is built on three core values: Customer Comes
First, We Think Big, and We Are One Team. Our employees have
embodied these values throughout the crisis, from building an
online app in just three days to expedite PPP applications, to the
countless employees in other areas of the bank who volunteered to
assist in processing the applications. These are just two examples
of how our team is making sure we are there to help our customers
during this difficult time."
As one of the leading small business lenders as recognized by
the SBA, BBVA USA has to date
received almost 24,000 applications related to the PPP and was
approved by the SBA to provide approximately $2.2 billion in
loans under the program, nearly all of which has been disbursed to
customers. In addition, BBVA USA
is providing other relief efforts to assist customers during
this challenging time. Through April 17,
2020, BBVA USA has
processed nearly 32,000 retail customer requests for extensions
effecting $1.9 billion of loans
including mortgages, credit cards, small businesses, auto and other
consumer loans. Similar requests have been received and processed
for commercial customers. BBVA USA
has also launched special offers related to credit cards, mortgages
and deposits, while also keeping open the drive-thru lanes at its
branches (approximately 88 percent of its total branch network) to
assist customer transactions. Earlier this month, BBVA USA also announced a more than $3.7 million commitment to support
organizations that are providing community support in response to
the COVID-19 pandemic, as well as programs to support its employees
impacted by the pandemic.
Total revenue for the first quarter of 2020 was $905 million, up 4 percent (annualized) from
fourth quarter 2019 levels as noninterest income growth more than
offset a decline in net interest income. Compared to the first
quarter of 2019, total revenue was down 3 percent as the decline in
net interest income more than offset double-digit growth in
noninterest income. Net interest income for the quarter totaled
$589 million compared to $623 million in the fourth quarter of 2019 and
$683 million in the first quarter of
2019. The percent net interest margin in the first quarter of 2020
was 2.80 percent compared to 2.96 percent in the fourth quarter of
2019 and 3.41 percent in the first quarter of 2019. The decline in
net interest income and the percent net interest margin reflects
the impact from the drastic and sudden drop in interest rates that
immediately impacted yields, particularly with respect to the
repricing of variable rate loans.
Noninterest income (excluding securities gains) for the quarter
totaled $315 million, up $43 million compared to the fourth quarter of
2019 and up $66 million compared to
the first quarter of 2019. The double-digit percentage increase on
a linked quarter basis was driven by increases in investment
banking and advisory fees (+$11 million), mortgage banking (+$8
million) and investment services sales fees (+$6 million). Compared
to the first quarter of 2019, noninterest income was up 27 percent
and growth was broad-based as all of our fee-based businesses
reported positive increases, led by the aforementioned areas. The
increase in other income reflected gains on investments held by our
small business investment company arm. During the first quarter of
2020, investment securities gains totaled $19 million compared to $9
million in the first quarter of 2019 and no gains or losses
were recorded in the fourth quarter of 2019.
Total noninterest expense (excluding the non-cash charge)
totaled $624 million, an increase of
5 percent (annualized) from fourth quarter 2019 levels and 7
percent from the first quarter of 2019. The rise in noninterest
expense was driven by an increase in salaries, benefits and
commissions and an increase in other expense associated with higher
provisions for unfunded commitments, offset in part by a decrease
in net occupancy and on a linked quarter basis professional
services. Operating income1 in the quarter totaled
$300 million, up 30 percent
(annualized) from the fourth quarter of 2019 and down 17 percent
from first quarter 2019 levels.
Total loans at the end of the first quarter of 2020 were
$67.7 billion, up 22 percent
(annualized) from $64.1 billion at
the end of fourth quarter of 2019 and up 4 percent from
$65.0 billion at the end of the first
quarter of 2019. Growth both on a linked quarter and year-over-year
basis was primarily driven by an increase in the commercial loan
portfolio (includes commercial and industrial loans and small
business lending), of which a substantial portion was related to
customer draws. During the first quarter of 2019, approximately
$1.1 billion of commercial loans were
transferred to loans held for sale and were subsequently sold in
the second quarter of 2019.
Total deposits were $77.2 billion
at the end of the quarter, up $2.2
billion or 12 percent (annualized) from the fourth quarter
of 2019, and up $2.9 billion or 4
percent compared to the first quarter of 2019. While noninterest
bearing deposits declined on a linked quarter basis and were
relatively flat compared to a year ago, growth in interest bearing
transaction accounts (savings, money market and interest bearing
demand deposits) was robust. Interest bearing transaction accounts
totaled $46.3 billion, up
$5.2 billion or 51 percent
(annualized) on a linked quarter basis, and up $8.3 billion or 22 percent compared to the first
quarter of 2019. The loan to deposit ratio ended the quarter at
87.6 percent compared to 85.43 percent at the end of the fourth
quarter of 2019 and 87.4 percent at the end of the first quarter of
2019. BBVA USA continues to
maintain a very strong liquidity position with the LCR at 144
percent compared to 145 percent at the end of the fourth quarter of
2019.
Nonperforming loans as a percentage of total loans ended the
first quarter of 2020 at 1.09 percent, up slightly from 1.06
percent at the end of 2019 and down from 1.34 percent at the end of
the first quarter a year ago. Net charge-offs as a percentage of
average total loans were 69 basis points compared to 87 basis
points during the fourth quarter of 2019 and 63 basis points for
the first quarter of 2019.
On January 1, 2020, BBVA
USA adopted ASC 326 – Current
Expected Credit Loss (CECL) accounting standard which estimates
credit losses over the life of the loans whereas the previous
standard relied on incurred losses. As a result, approximately
$185 million was added to the
allowance for loan losses with the offset recorded in shareholder's
equity and deferred tax assets.
Provision expense for the quarter was $357 million compared to $120 million in the fourth quarter of 2019 and
$182 million in the first quarter of
2019. The substantial increase in provision expense was warranted
given the drastic slowdown in economic activity and expected future
losses in the loan portfolio that could result from our customers
being unable to conduct business as normal during the pandemic
shutdown. In addition, the subsequent steep drop in oil prices
resulted in a higher level of reserves related to our energy
portfolio, which totaled approximately $3.4
billion at the end of the quarter compared to $2.9 billion at the end of the fourth quarter of
2019.
As a result of the increase in provision expense, the allowance
for loan losses as a percentage of total loans at the end of the
quarter rose to 2.00 percent compared to 1.44 percent at the end of
2019 and 1.52 percent at the end of the quarter a year ago. The
coverage ratio of nonperforming loans at the end of the quarter was
183 percent compared to 136 percent at the end of the fourth
quarter of 2019 and 111 percent at the end of the first quarter of
2019.
Total shareholder's equity at the end of the first quarter of
2020 totaled $11.4 billion compared
to $13.4 billion at the end of 2019
and $13.7 billion at the end of the
first quarter of 2019. The CET12 ratio ended the first
quarter of 2020 at 11.97 percent compared to 12.49 percent at the
end of 2019 and 12.34 percent at the end of the first quarter a
year ago. While the goodwill impairment non-cash charge resulted in
a decrease in total shareholder's equity, it did not impact
tangible capital levels and therefore had no impact on regulatory
capital and regulatory capital ratios. All of BBVA USA's regulatory capital ratios2
continue to exceed the requirements under "well-capitalized"
guidelines.
1 Operating income, adjusted net
income (loss), return on average tangible equity, adjusted return
on average assets and adjusted return on average tangible equity
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 March
31, 2020, 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 February 28, 2020, BBVA filed
its annual report on Form 20-F for the year ended December 31, 2019, 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, 2019, including complete audited
financial statements, free of charge. To request a copy, contact
Ed Bilek at ed.bilek@bbva.com.
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 14th nationally in terms of dollar
volume of SBA loans originated in fiscal year 2019.
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, 2020, as updated by our subsequent
SEC filings.
BBVA USA
BANCSHARES, INC.
|
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
%
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
|
|
|
|
|
EARNINGS
SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
589,455
|
|
$
683,089
|
|
(14)
|
|
|
|
|
|
|
Noninterest income
[a]
|
315,103
|
|
248,802
|
|
27
|
|
|
|
|
|
|
Total revenue
[a]
|
904,558
|
|
931,891
|
|
(3)
|
|
|
|
|
|
|
Investment securities
gain, net
|
19,139
|
|
8,958
|
|
114
|
|
|
|
|
|
|
Provision for credit
losses
|
356,991
|
|
182,292
|
|
96
|
|
|
|
|
|
|
Goodwill
impairment
|
2,185,000
|
|
—
|
|
NM
|
|
|
|
|
|
|
Noninterest
expense
|
624,060
|
|
581,973
|
|
7
|
|
|
|
|
|
|
Pretax (loss)
income
|
(2,242,354)
|
|
176,584
|
|
(1,370)
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
(5,069)
|
|
35,603
|
|
(114)
|
|
|
|
|
|
|
Net (loss)
income
|
$
(2,237,285)
|
|
$
140,981
|
|
(1,687)
|
|
|
|
|
|
|
Adjusted net (loss)
income [b]
|
$
|
(52,285)
|
|
$
140,981
|
|
(137)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
(9.34)%
|
|
0.61 %
|
|
|
|
|
|
|
|
|
Return on average
assets- adjusted [b]
|
(0.22)
|
|
0.61
|
|
|
|
|
|
|
|
|
Return on average
tangible equity [b]
|
(100.27)
|
|
6.64
|
|
|
|
|
|
|
|
|
Return on average
tangible equity- adjusted [b]
|
(2.34)
|
|
6.64
|
|
|
|
|
|
|
|
|
Efficiency ratio
[b]
|
68.08
|
|
61.58
|
|
|
|
|
|
|
|
|
Average common equity
to average assets
|
13.74
|
|
14.39
|
|
|
|
|
|
|
|
|
Average loans to
average total deposits
|
86.64
|
|
90.69
|
|
|
|
|
|
|
|
|
Common equity tier I
capital (CET1) [c]
|
11.97
|
|
12.34
|
|
|
|
|
|
|
|
|
Tier I capital ratio
[c]
|
12.29
|
|
12.67
|
|
|
|
|
|
|
|
|
Total capital ratio
[c]
|
14.62
|
|
14.87
|
|
|
|
|
|
|
|
|
Leverage ratio
[c]
|
9.40
|
|
10.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average for Three
Months
|
|
|
|
Ending
Balance
|
|
|
|
Ended March
31,
|
|
%
|
|
March
31,
|
|
%
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
BALANCE SHEET
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
Total
loans
|
$
64,875,095
|
|
$65,482,395
|
|
(1)
|
|
$67,657,166
|
|
$65,031,366
|
|
4
|
Total debt
securities
|
13,893,355
|
|
13,768,787
|
|
1
|
|
14,222,974
|
|
13,872,059
|
|
3
|
Earning
assets
|
86,504,508
|
|
82,503,041
|
|
5
|
|
87,388,951
|
|
84,356,100
|
|
4
|
Total
assets
|
96,356,113
|
|
92,985,876
|
|
4
|
|
94,325,559
|
|
93,842,586
|
|
1
|
Noninterest bearing
demand deposits
|
20,293,503
|
|
20,183,069
|
|
1
|
|
20,418,504
|
|
20,403,716
|
|
—
|
Interest bearing
transaction accounts
|
43,676,781
|
|
35,904,264
|
|
22
|
|
46,318,129
|
|
38,018,421
|
|
22
|
Total transaction
accounts
|
63,970,284
|
|
56,087,333
|
|
14
|
|
66,736,633
|
|
58,422,137
|
|
14
|
Total
deposits
|
74,881,825
|
|
72,203,842
|
|
4
|
|
77,234,507
|
|
74,380,308
|
|
4
|
Total shareholder's
equity
|
13,500,615
|
|
13,640,655
|
|
(1)
|
|
11,358,354
|
|
13,727,537
|
|
(17)
|
|
[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)
|
|
|
|
|
|
2020
|
|
2019
|
|
March
31
|
|
December
31
|
|
September
30
|
|
June
30
|
|
March
31
|
NONPERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
[a]
|
$
676,716
|
|
$
606,843
|
|
$
653,242
|
|
$732,696
|
|
$806,644
|
Loans 90 days or more
past due [b]
|
61,774
|
|
71,126
|
|
67,869
|
|
64,337
|
|
63,880
|
TDRs 90 days or more
past due
|
335
|
|
414
|
|
588
|
|
304
|
|
370
|
Total nonperforming
loans [a]
|
738,825
|
|
678,383
|
|
721,699
|
|
797,337
|
|
870,894
|
Foreclosed real
estate
|
20,642
|
|
20,833
|
|
17,381
|
|
13,752
|
|
14,983
|
Other repossessed
assets
|
13,338
|
|
10,930
|
|
17,584
|
|
13,040
|
|
11,225
|
Total nonperforming
assets
|
$
772,805
|
|
$
710,146
|
|
$
756,664
|
|
$824,129
|
|
$897,102
|
|
|
|
|
|
|
|
|
|
|
TDRs accruing and
past due less than 90 days
|
$
97,404
|
|
$
97,901
|
|
$
97,218
|
|
$112,383
|
|
$111,671
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
loans as a % of loans
|
1.09 %
|
|
1.06 %
|
|
1.14 %
|
|
1.26 %
|
|
1.34 %
|
Total nonperforming
assets as a % of total loans, foreclosed real estate, and other
repossessed assets
|
1.14
|
|
1.11
|
|
1.19
|
|
1.30
|
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
2020
|
|
2019
|
|
March
31
|
|
December
31
|
|
September
30
|
|
June
30
|
|
March
31
|
ALLOWANCE FOR LOAN
LOSSES
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
920,993
|
|
$
942,191
|
|
$
977,660
|
|
$966,022
|
|
$885,242
|
Adoption of ASC
326
|
184,931
|
|
—
|
|
—
|
|
—
|
|
—
|
Net charge-offs
(NCO)
|
111,798
|
|
140,703
|
|
176,098
|
|
143,380
|
|
101,512
|
Provision for loan
losses
|
356,946
|
|
119,505
|
|
140,629
|
|
155,018
|
|
182,292
|
Balance at end of
period
|
$1,351,072
|
|
$
920,993
|
|
$
942,191
|
|
$977,660
|
|
$966,022
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a % of total loans
|
2.00 %
|
|
1.44 %
|
|
1.49 %
|
|
1.54 %
|
|
1.52 %
|
Allowance for loan
losses as a % of nonperforming loans [c]
|
182.87
|
|
135.76
|
|
130.55
|
|
122.62
|
|
110.92
|
Allowance for loan
losses as a % of nonperforming assets [c]
|
174.83
|
|
129.69
|
|
124.52
|
|
118.63
|
|
107.68
|
|
|
|
|
|
|
|
|
|
|
Annualized as a % of
average loans:
|
|
|
|
|
|
|
|
|
|
NCO - QTD
|
0.69
|
|
0.87
|
|
1.10
|
|
0.90
|
|
0.63
|
NCO - YTD
|
0.69
|
|
0.88
|
|
0.88
|
|
0.77
|
|
0.63
|
|
[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
March 31,
|
|
2020
|
|
2019
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate
|
YIELD/RATE
ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
(Taxable Equivalent
Basis)
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$64,875,095
|
|
$726,532
|
|
4.50 %
|
|
$65,482,395
|
|
$812,415
|
|
5.03 %
|
Debt securities
available for sale [a]
|
6,669,560
|
|
(1,492)
|
|
(0.09)
|
|
9,922,400
|
|
53,522
|
|
2.19
|
Debt securities held
to maturity
|
7,192,165
|
|
42,080
|
|
2.35
|
|
4,034,292
|
|
30,765
|
|
3.09
|
Other earning assets
[b]
|
7,736,058
|
|
43,297
|
|
2.25
|
|
3,251,859
|
|
23,507
|
|
2.93
|
Total earning assets
[a]
|
86,472,878
|
|
810,417
|
|
3.77
|
|
82,690,946
|
|
920,209
|
|
4.51
|
Allowance for credit
losses
|
(1,064,750)
|
|
|
|
|
|
(909,663)
|
|
|
|
|
Unrealized loss on
debt securities available for sale
|
31,630
|
|
|
|
|
|
(187,905)
|
|
|
|
|
Other
assets
|
10,916,355
|
|
|
|
|
|
11,392,498
|
|
|
|
|
Total
assets
|
$96,356,113
|
|
|
|
|
|
$92,985,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's Equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand deposits
|
$11,698,488
|
|
$
24,551
|
|
0.84
|
|
$
8,685,693
|
|
$
20,346
|
|
0.95
|
Savings and money
market accounts
|
31,978,293
|
|
84,792
|
|
1.07
|
|
27,218,571
|
|
76,909
|
|
1.15
|
Certificates and
other time deposits
|
10,911,541
|
|
55,399
|
|
2.04
|
|
16,116,509
|
|
85,099
|
|
2.14
|
Total interest
bearing deposits
|
54,588,322
|
|
164,742
|
|
1.21
|
|
52,020,773
|
|
182,354
|
|
1.42
|
FHLB and other
borrowings
|
3,736,201
|
|
21,176
|
|
2.28
|
|
4,290,724
|
|
37,626
|
|
3.56
|
Federal funds
purchased and securities sold under agreement to repurchase
[b]
|
1,451,501
|
|
22,658
|
|
6.28
|
|
411,925
|
|
3,747
|
|
3.69
|
Other short-term
borrowings
|
20,037
|
|
352
|
|
7.07
|
|
28,117
|
|
196
|
|
2.83
|
Total interest
bearing liabilities
|
59,796,061
|
|
208,928
|
|
1.41
|
|
56,751,539
|
|
223,923
|
|
1.60
|
Noninterest bearing
deposits
|
20,293,503
|
|
|
|
|
|
20,183,069
|
|
|
|
|
Other noninterest
bearing liabilities
|
2,765,934
|
|
|
|
|
|
2,410,613
|
|
|
|
|
Total
liabilities
|
82,855,498
|
|
|
|
|
|
79,345,221
|
|
|
|
|
Shareholder's
equity
|
13,500,615
|
|
|
|
|
|
13,640,655
|
|
|
|
|
Total liabilities and
shareholder's equity
|
$96,356,113
|
|
|
|
|
|
$92,985,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/
net interest spread
|
|
|
601,489
|
|
2.36 %
|
|
|
|
696,286
|
|
2.91 %
|
Net yield on earning
assets
|
|
|
|
|
2.80 %
|
|
|
|
|
|
3.41 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Total taxable
equivalent adjustment
|
|
|
12,034
|
|
|
|
|
|
13,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
$589,455
|
|
|
|
|
|
$683,089
|
|
|
|
[a] Excludes
adjustment for market valuation.
|
[b] Yield/rate
reflects impact of balance sheet offsetting.
|
BBVA USA
BANCSHARES, INC.
|
(Unaudited)
|
(Dollars in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
|
Three Months
Ended
|
|
Ended March
31,
|
|
%
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Change
|
|
March
31
|
|
December
31
|
|
September
30
|
|
June
30
|
|
March
31
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
$
61,531
|
|
$
58,908
|
|
4
|
|
$
61,531
|
|
$
64,585
|
|
$
65,143
|
|
$
61,731
|
|
$
58,908
|
Card and merchant
processing fees
|
50,091
|
|
46,002
|
|
9
|
|
50,091
|
|
50,805
|
|
50,385
|
|
50,355
|
|
46,002
|
Investment services
sales fees
|
34,407
|
|
26,696
|
|
29
|
|
34,407
|
|
28,130
|
|
29,287
|
|
31,333
|
|
26,696
|
Investment banking
and advisory fees
|
26,731
|
|
18,857
|
|
42
|
|
26,731
|
|
15,720
|
|
28,324
|
|
20,758
|
|
18,857
|
Money transfer
income
|
24,548
|
|
21,981
|
|
12
|
|
24,548
|
|
25,871
|
|
26,020
|
|
25,272
|
|
21,981
|
Corporate and
correspondent investment sales
|
10,717
|
|
6,892
|
|
55
|
|
10,717
|
|
14,263
|
|
11,799
|
|
5,607
|
|
6,892
|
Asset management
fees
|
11,904
|
|
10,767
|
|
11
|
|
11,904
|
|
11,532
|
|
11,405
|
|
11,867
|
|
10,767
|
Mortgage
banking
|
17,451
|
|
4,937
|
|
253
|
|
17,451
|
|
9,048
|
|
8,204
|
|
5,870
|
|
4,937
|
Bank owned life
insurance
|
4,625
|
|
4,584
|
|
1
|
|
4,625
|
|
4,584
|
|
3,508
|
|
4,803
|
|
4,584
|
Other
|
73,098
|
|
49,178
|
|
49
|
|
73,098
|
|
48,046
|
|
66,241
|
|
66,685
|
|
49,178
|
|
315,103
|
|
248,802
|
|
27
|
|
315,103
|
|
272,584
|
|
300,316
|
|
284,281
|
|
248,802
|
Investment securities
gains, net
|
19,139
|
|
8,958
|
|
114
|
|
19,139
|
|
—
|
|
21,003
|
|
—
|
|
8,958
|
Total noninterest
income
|
$
334,242
|
|
$257,760
|
|
30
|
|
$
334,242
|
|
$
272,584
|
|
$
321,319
|
|
$284,281
|
|
$257,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, benefits
and commissions
|
$
310,136
|
|
$292,716
|
|
6
|
|
$
310,136
|
|
$
297,823
|
|
$
295,092
|
|
$296,303
|
|
$292,716
|
Equipment
|
64,681
|
|
65,394
|
|
(1)
|
|
64,681
|
|
64,826
|
|
63,908
|
|
62,638
|
|
65,394
|
Professional
services
|
70,220
|
|
63,896
|
|
10
|
|
70,220
|
|
82,343
|
|
72,903
|
|
73,784
|
|
63,896
|
Net
occupancy
|
39,843
|
|
40,941
|
|
(3)
|
|
39,843
|
|
43,302
|
|
42,241
|
|
40,116
|
|
40,941
|
Money transfer
expense
|
17,136
|
|
14,978
|
|
14
|
|
17,136
|
|
17,951
|
|
18,005
|
|
17,290
|
|
14,978
|
Marketing
|
11,899
|
|
10,393
|
|
14
|
|
11,899
|
|
12,888
|
|
15,471
|
|
16,412
|
|
10,393
|
Communications
|
5,371
|
|
5,401
|
|
(1)
|
|
5,371
|
|
5,179
|
|
5,469
|
|
5,733
|
|
5,401
|
Goodwill
impairment
|
2,185,000
|
|
—
|
|
—
|
|
2,185,000
|
|
470,000
|
|
—
|
|
—
|
|
—
|
Other
|
104,774
|
|
88,254
|
|
19
|
|
104,774
|
|
92,594
|
|
85,798
|
|
86,038
|
|
88,254
|
Total noninterest
expense
|
$2,809,060
|
|
$581,973
|
|
383
|
|
$
2,809,060
|
|
$
1,086,906
|
|
$
598,887
|
|
$598,314
|
|
$581,973
|
BBVA USA
BANCSHARES, INC.
|
(Unaudited)
|
(Dollars in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Three Months
Ended
|
|
Ended March
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
March
31
|
|
December
31
|
|
September
30
|
|
June
30
|
|
March
31
|
NON-GAAP
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
589,455
|
|
$
683,089
|
|
$
589,455
|
|
$
623,154
|
|
$
641,041
|
|
$
659,749
|
|
$
683,089
|
Plus: noninterest
income (GAAP)
|
334,242
|
|
257,760
|
|
334,242
|
|
272,584
|
|
321,319
|
|
284,281
|
|
257,760
|
Less: noninterest
expense (GAAP)
|
2,809,060
|
|
581,973
|
|
2,809,060
|
|
1,086,906
|
|
598,887
|
|
598,314
|
|
581,973
|
Plus: goodwill
impairment (GAAP)
|
2,185,000
|
|
—
|
|
2,185,000
|
|
470,000
|
|
—
|
|
—
|
|
—
|
Operating income
(non-GAAP)
|
$
299,637
|
|
$
358,876
|
|
$
299,637
|
|
$
278,832
|
|
$
363,473
|
|
$
345,716
|
|
$
358,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
Average Tangible Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholder's
equity (average) (GAAP)
|
$13,500,615
|
|
$13,640,655
|
|
$13,500,615
|
|
$
14,090,315
|
|
$
14,056,939
|
|
$13,782,011
|
|
$13,640,655
|
Less: goodwill and
other intangibles (average) (GAAP)
|
4,526,744
|
|
5,035,591
|
|
4,526,744
|
|
5,016,935
|
|
5,023,480
|
|
5,031,129
|
|
5,035,591
|
Average tangible
equity (non-GAAP) [B]
|
$
8,973,871
|
|
$
8,605,064
|
|
$
8,973,871
|
|
$
9,073,380
|
|
$
9,033,459
|
|
$
8,750,882
|
|
$
8,605,064
|
Net income (loss)
(GAAP) [A]
|
$
(2,237,285)
|
|
$
140,981
|
|
$
(2,237,285)
|
|
$
(330,705)
|
|
$
182,945
|
|
$
160,186
|
|
$
140,981
|
Return on average
tangible equity (non-GAAP) ([A]/[B], annualized)
|
(100.27)%
|
|
6.64 %
|
|
(100.27)%
|
|
(14.46)%
|
|
8.03 %
|
|
7.34 %
|
|
6.64 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
Adjusted Net Income, Return on Average Assets and Return on Average
Tangible Equity:
|
Net income (loss)
(GAAP)
|
$
(2,237,285)
|
|
$
140,981
|
|
$
(2,237,285)
|
|
$
(330,705)
|
|
$
182,945
|
|
$
160,186
|
|
$
140,981
|
Plus: goodwill
impairment (GAAP)
|
2,185,000
|
|
—
|
|
2,185,000
|
|
470,000
|
|
—
|
|
—
|
|
—
|
Adjusted net income
(non-GAAP) [C]
|
$
(52,285)
|
|
$
140,981
|
|
$
(52,285)
|
|
$
139,295
|
|
$
182,945
|
|
$
160,186
|
|
$
140,981
|
Average assets (GAAP)
[D]
|
$96,356,113
|
|
$92,985,876
|
|
$96,356,113
|
|
$
95,754,954
|
|
$
94,942,456
|
|
$93,452,839
|
|
$92,985,876
|
Return on average
assets - adjusted (non-GAAP) ([C]/[D], annualized)
|
(0.22)%
|
|
0.61 %
|
|
(0.22)%
|
|
0.58 %
|
|
0.76 %
|
|
0.69 %
|
|
0.61 %
|
Return on average
tangible equity - adjusted (non-GAAP) ([C]/[B],
annualized)
|
(2.34)
|
|
6.64
|
|
(2.34)
|
|
6.09
|
|
8.03
|
|
7.34
|
|
6.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
Efficiency Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
$
2,809,060
|
|
$
581,973
|
|
$
2,809,060
|
|
$
1,086,906
|
|
$
598,887
|
|
$
598,314
|
|
$
581,973
|
Less: securities and
goodwill impairment (GAAP)
|
2,185,000
|
|
—
|
|
2,185,000
|
|
470,102
|
|
—
|
|
113
|
|
—
|
Total expense (GAAP)
[E]
|
$
624,060
|
|
$
581,973
|
|
$
624,060
|
|
$
616,804
|
|
$
598,887
|
|
$
598,201
|
|
$
581,973
|
Net interest income,
taxable equivalent basis
|
$
601,489
|
|
$
696,286
|
|
$
601,489
|
|
$
635,552
|
|
$
653,926
|
|
$
672,807
|
|
$
696,286
|
Plus: noninterest
income (GAAP)
|
334,242
|
|
257,760
|
|
334,242
|
|
272,584
|
|
321,319
|
|
284,281
|
|
257,760
|
Less: investment
securities gains, net (GAAP)
|
19,139
|
|
8,958
|
|
19,139
|
|
—
|
|
21,003
|
|
—
|
|
8,958
|
Total revenue
[F]
|
$
916,592
|
|
$
945,088
|
|
$
916,592
|
|
$
908,136
|
|
$
954,242
|
|
$
957,088
|
|
$
945,088
|
Efficiency ratio
(non-GAAP) ([E]/[F])
|
68.08 %
|
|
61.58 %
|
|
68.08 %
|
|
67.92 %
|
|
62.76 %
|
|
62.50 %
|
|
61.58 %
|
BBVA USA
BANCSHARES, INC.
|
SUPPLEMENTAL LOAN
PORTFOLIO INFORMATION (Unaudited)
|
(Dollars in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or Quarter
Ended March 31, 2020
|
|
30-59 Days Past
Due
|
|
60-89 Days Past
Due
|
|
90 Days or
More
Past Due
|
|
Nonaccrual
|
|
Accruing
TDRs
|
|
Not Past Due,
Nonaccrual, or TDR
|
|
Total
|
|
Net Charge
Offs
(Recoveries)
|
|
|
|
|
|
|
Commercial, financial
and agricultural
|
$
31,493
|
|
$
7,588
|
|
$
3,013
|
|
$
323,881
|
|
$
1,931
|
|
$
27,464,207
|
|
$
27,832,113
|
|
$
19,014
|
Real estate –
construction
|
9,356
|
|
66
|
|
574
|
|
13,676
|
|
69
|
|
2,147,973
|
|
2,171,714
|
|
(13)
|
Commercial real
estate – mortgage
|
13,439
|
|
5,241
|
|
912
|
|
114,839
|
|
3,333
|
|
13,715,641
|
|
13,853,405
|
|
(73)
|
Residential real
estate – mortgage
|
67,938
|
|
25,187
|
|
5,744
|
|
147,058
|
|
55,116
|
|
13,144,975
|
|
13,446,018
|
|
(172)
|
Equity lines of
credit
|
16,382
|
|
6,244
|
|
3,295
|
|
33,354
|
|
—
|
|
2,552,075
|
|
2,611,350
|
|
536
|
Equity
loans
|
2,636
|
|
1,147
|
|
293
|
|
8,027
|
|
22,392
|
|
194,874
|
|
229,369
|
|
212
|
Credit
card
|
13,230
|
|
8,932
|
|
23,707
|
|
—
|
|
—
|
|
977,503
|
|
1,023,372
|
|
19,517
|
Consumer –
direct
|
34,553
|
|
19,738
|
|
15,196
|
|
7,160
|
|
14,898
|
|
2,184,500
|
|
2,276,045
|
|
51,726
|
Consumer –
indirect
|
76,547
|
|
24,249
|
|
9,040
|
|
28,721
|
|
—
|
|
3,957,471
|
|
4,096,028
|
|
21,051
|
Total
loans
|
$
265,574
|
|
$
98,392
|
|
$
61,774
|
|
$
676,716
|
|
$
97,739
|
|
$
66,339,219
|
|
$
67,539,414
|
|
$
111,798
|
Loans held for
sale
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
117,752
|
|
$
117,752
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or Quarter
Ended December 31, 2019
|
|
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
|
$
29,273
|
|
$
16,462
|
|
$
6,692
|
|
$
268,288
|
|
$
1,456
|
|
$
24,110,067
|
|
$
24,432,238
|
|
$
37,788
|
Real estate –
construction
|
7,603
|
|
2
|
|
571
|
|
8,041
|
|
72
|
|
2,012,393
|
|
2,028,682
|
|
(126)
|
Commercial real
estate – mortgage
|
5,325
|
|
5,458
|
|
6,576
|
|
98,077
|
|
3,414
|
|
13,742,628
|
|
13,861,478
|
|
(285)
|
Residential real
estate – mortgage
|
72,571
|
|
21,909
|
|
4,641
|
|
147,337
|
|
57,165
|
|
13,230,331
|
|
13,533,954
|
|
107
|
Equity lines of
credit
|
15,766
|
|
6,581
|
|
1,567
|
|
38,113
|
|
—
|
|
2,530,653
|
|
2,592,680
|
|
857
|
Equity
loans
|
2,856
|
|
1,028
|
|
195
|
|
8,651
|
|
23,770
|
|
208,468
|
|
244,968
|
|
137
|
Credit
card
|
11,275
|
|
9,214
|
|
22,796
|
|
—
|
|
—
|
|
959,080
|
|
1,002,365
|
|
16,760
|
Consumer –
direct
|
33,658
|
|
20,703
|
|
18,358
|
|
6,555
|
|
12,438
|
|
2,246,430
|
|
2,338,142
|
|
58,190
|
Consumer –
indirect
|
83,966
|
|
28,430
|
|
9,730
|
|
31,781
|
|
—
|
|
3,758,443
|
|
3,912,350
|
|
27,275
|
Total
loans
|
$
262,293
|
|
$
109,787
|
|
$
71,126
|
|
$
606,843
|
|
$
98,315
|
|
$
62,798,493
|
|
$
63,946,857
|
|
$
140,703
|
Loans held for
sale
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
112,058
|
|
$
112,058
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
More
Past Due
|
|
Nonaccrual
|
|
Accruing
TDRs
|
|
Not Past Due
or
Impaired
|
|
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
More
Past Due
|
|
Nonaccrual
|
|
Accruing
TDRs
|
|
Not Past Due
or
Impaired
|
|
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
More
Past Due
|
|
Nonaccrual
|
|
Accruing
TDRs
|
|
Not Past Due
or
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
|
|
$
—
|
BBVA USA
BANCSHARES, INC.
|
BALANCE SHEET
(Unaudited)
|
(Dollars in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
March
31
|
|
December
31
|
|
September
30
|
|
June
30
|
|
March
31
|
Assets:
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
1,033,733
|
|
$
1,149,734
|
|
$
1,117,458
|
|
$
1,027,400
|
|
$
1,143,541
|
Federal funds sold,
securities purchased under agreements to resell and interest
bearing deposits
|
4,479,535
|
|
5,788,964
|
|
5,356,141
|
|
4,773,761
|
|
4,864,920
|
Cash and cash
equivalents
|
5,513,268
|
|
6,938,698
|
|
6,473,599
|
|
5,801,161
|
|
6,008,461
|
Trading account
assets
|
1,009,130
|
|
473,976
|
|
564,000
|
|
440,098
|
|
306,123
|
Debt securities
available for sale
|
6,344,816
|
|
7,235,305
|
|
7,612,590
|
|
9,010,950
|
|
9,297,018
|
Debt securities held
to maturity, net
|
7,876,266
|
|
6,797,046
|
|
6,334,634
|
|
4,912,483
|
|
4,575,041
|
Loans held for
sale
|
117,752
|
|
112,058
|
|
134,314
|
|
90,537
|
|
1,273,821
|
Loans
|
67,539,414
|
|
63,946,857
|
|
63,320,571
|
|
63,311,553
|
|
63,757,545
|
Allowance for loan
losses
|
(1,351,072)
|
|
(920,993)
|
|
(942,191)
|
|
(977,660)
|
|
(966,022)
|
Net loans
|
66,188,342
|
|
63,025,864
|
|
62,378,380
|
|
62,333,893
|
|
62,791,523
|
Premises and
equipment, net
|
1,068,741
|
|
1,087,698
|
|
1,085,635
|
|
1,105,819
|
|
1,125,676
|
Bank owned life
insurance
|
754,409
|
|
750,224
|
|
746,819
|
|
745,130
|
|
740,764
|
Goodwill
|
2,328,296
|
|
4,513,296
|
|
4,983,296
|
|
4,983,296
|
|
4,983,296
|
Other
assets
|
3,124,539
|
|
2,669,182
|
|
2,600,820
|
|
2,760,678
|
|
2,740,863
|
Total
assets
|
$
94,325,559
|
|
$
93,603,347
|
|
$
92,914,087
|
|
$
92,184,045
|
|
$
93,842,586
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
20,418,504
|
|
$
21,850,216
|
|
$
21,019,303
|
|
$
20,646,209
|
|
$
20,403,716
|
Interest
bearing
|
56,816,003
|
|
53,135,067
|
|
52,550,139
|
|
51,942,601
|
|
53,976,592
|
Total
deposits
|
77,234,507
|
|
74,985,283
|
|
73,569,442
|
|
72,588,810
|
|
74,380,308
|
FHLB and other
borrowings
|
3,790,137
|
|
3,690,044
|
|
3,709,949
|
|
4,052,969
|
|
4,011,160
|
Federal funds
purchased and securities sold under agreements to
repurchase
|
409,784
|
|
173,028
|
|
117,421
|
|
191,739
|
|
188,024
|
Other short-term
borrowings
|
—
|
|
—
|
|
45
|
|
2,067
|
|
30,975
|
Accrued expenses and
other liabilities
|
1,532,777
|
|
1,368,403
|
|
1,415,612
|
|
1,477,737
|
|
1,504,582
|
Total
liabilities
|
82,967,205
|
|
80,216,758
|
|
78,812,469
|
|
78,313,322
|
|
80,115,049
|
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
|
14,039,572
|
|
14,043,727
|
|
14,359,966
|
|
14,364,527
|
|
14,542,166
|
Retained
deficit
|
(3,305,226)
|
|
(917,227)
|
|
(585,859)
|
|
(768,290)
|
|
(927,877)
|
Accumulated other
comprehensive income (loss)
|
362,339
|
|
(1,072)
|
|
66,009
|
|
13,508
|
|
(148,135)
|
Total BBVA USA
Bancshares, Inc. shareholder's equity
|
11,328,390
|
|
13,357,133
|
|
14,071,821
|
|
13,841,450
|
|
13,697,859
|
Noncontrolling
interests
|
29,964
|
|
29,456
|
|
29,797
|
|
29,273
|
|
29,678
|
Total
shareholder's equity
|
11,358,354
|
|
13,386,589
|
|
14,101,618
|
|
13,870,723
|
|
13,727,537
|
Total liabilities
and shareholder's equity
|
$
94,325,559
|
|
$
93,603,347
|
|
$
92,914,087
|
|
$
92,184,045
|
|
$
93,842,586
|
BBVA USA
BANCSHARES, INC.
|
INCOME STATEMENT
(Unaudited)
|
(Dollars in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
2020
|
|
2019
|
|
March
31
|
|
December
31
|
|
September
30
|
|
June
30
|
|
March
31
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
715,476
|
|
$
738,140
|
|
$
771,245
|
|
$ 787,767
|
|
$ 800,488
|
Interest on debt
securities available for sale
|
(1,492)
|
|
33,333
|
|
36,051
|
|
45,125
|
|
53,522
|
Interest on debt
securities held to maturity
|
41,102
|
|
43,097
|
|
38,893
|
|
33,313
|
|
29,495
|
Interest on trading
account assets
|
1,122
|
|
1,326
|
|
487
|
|
601
|
|
539
|
Interest and
dividends on other earning assets
|
42,175
|
|
39,915
|
|
46,528
|
|
35,823
|
|
22,968
|
Total interest
income
|
798,383
|
|
855,811
|
|
893,204
|
|
902,629
|
|
907,012
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
164,742
|
|
189,345
|
|
203,979
|
|
202,478
|
|
182,354
|
Interest on FHLB and
other borrowings
|
21,176
|
|
31,263
|
|
32,975
|
|
34,300
|
|
37,626
|
Interest on federal
funds purchased and securities sold under agreements to
repurchase
|
22,658
|
|
11,850
|
|
15,137
|
|
6,002
|
|
3,747
|
Interest on other
short-term borrowings
|
352
|
|
199
|
|
72
|
|
100
|
|
196
|
Total interest
expense
|
208,928
|
|
232,657
|
|
252,163
|
|
242,880
|
|
223,923
|
Net interest
income
|
589,455
|
|
623,154
|
|
641,041
|
|
659,749
|
|
683,089
|
Provision for credit
losses
|
356,991
|
|
119,505
|
|
140,629
|
|
155,018
|
|
182,292
|
Net interest
income after provision for credit losses
|
232,464
|
|
503,649
|
|
500,412
|
|
504,731
|
|
500,797
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
61,531
|
|
64,585
|
|
65,143
|
|
61,731
|
|
58,908
|
Card and merchant
processing fees
|
50,091
|
|
50,805
|
|
50,385
|
|
50,355
|
|
46,002
|
Investment services
sales fees
|
34,407
|
|
28,130
|
|
29,287
|
|
31,333
|
|
26,696
|
Investment banking
and advisory fees
|
26,731
|
|
15,720
|
|
28,324
|
|
20,758
|
|
18,857
|
Money transfer
income
|
24,548
|
|
25,871
|
|
26,020
|
|
25,272
|
|
21,981
|
Asset management
fees
|
11,904
|
|
11,532
|
|
11,405
|
|
11,867
|
|
10,767
|
Corporate and
correspondent investment sales
|
10,717
|
|
14,263
|
|
11,799
|
|
5,607
|
|
6,892
|
Mortgage
banking
|
17,451
|
|
9,048
|
|
8,204
|
|
5,870
|
|
4,937
|
Bank owned life
insurance
|
4,625
|
|
4,584
|
|
3,508
|
|
4,803
|
|
4,584
|
Investment securities
gains, net
|
19,139
|
|
—
|
|
21,003
|
|
—
|
|
8,958
|
Other
|
73,098
|
|
48,046
|
|
66,241
|
|
66,685
|
|
49,178
|
Total noninterest
income
|
334,242
|
|
272,584
|
|
321,319
|
|
284,281
|
|
257,760
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries, benefits
and commissions
|
310,136
|
|
297,823
|
|
295,092
|
|
296,303
|
|
292,716
|
Equipment
|
64,681
|
|
64,826
|
|
63,908
|
|
62,638
|
|
65,394
|
Professional
services
|
70,220
|
|
82,343
|
|
72,903
|
|
73,784
|
|
63,896
|
Net
occupancy
|
39,843
|
|
43,302
|
|
42,241
|
|
40,116
|
|
40,941
|
Money transfer
expense
|
17,136
|
|
17,951
|
|
18,005
|
|
17,290
|
|
14,978
|
Marketing
|
11,899
|
|
12,888
|
|
15,471
|
|
16,412
|
|
10,393
|
Communications
|
5,371
|
|
5,179
|
|
5,469
|
|
5,733
|
|
5,401
|
Goodwill
impairment
|
2,185,000
|
|
470,000
|
|
—
|
|
—
|
|
—
|
Other
|
104,774
|
|
92,594
|
|
85,798
|
|
86,038
|
|
88,254
|
Total noninterest
expense
|
2,809,060
|
|
1,086,906
|
|
598,887
|
|
598,314
|
|
581,973
|
Net (loss) income
before income tax expense
|
(2,242,354)
|
|
(310,673)
|
|
222,844
|
|
190,698
|
|
176,584
|
Income tax (benefit)
expense
|
(5,069)
|
|
20,032
|
|
39,899
|
|
30,512
|
|
35,603
|
Net (loss)
income
|
(2,237,285)
|
|
(330,705)
|
|
182,945
|
|
160,186
|
|
140,981
|
Less: net income
attributable to noncontrolling interests
|
501
|
|
663
|
|
514
|
|
599
|
|
556
|
Net (loss) income
attributable to BBVA USA Bancshares, Inc.
|
$
(2,237,786)
|
|
$
(331,368)
|
|
$
182,431
|
|
$ 159,587
|
|
$ 140,425
|
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SOURCE BBVA USA