Attached files
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| 8-K - 8-K - BBVA USA Bancshares, Inc. | bbvausabancinc033120208k.htm |
Exhibit 99.1
April 30, 2020
BBVA USA reports first quarter 2020 results
• | COVID-19 pandemic relief efforts: Approved by the Small Business Administration (SBA) for $2.2 billion in Paycheck Protection Program (PPP) loans under Phase 1, nearly all of which has been disbursed to customers. Proactively providing other products and offers to assist customers during this crisis |
• | Revenue: Total revenue up 4 percent (annualized) from fourth quarter 2019 levels as strong growth in noninterest income more than offset a decline in net interest income |
• | Goodwill impairment: Drastic change in macroeconomic conditions and forecasts brought about by the COVID-19 pandemic results in $2.2 billion non-cash write-down of goodwill; no impact to liquidity, regulatory capital ratios or the operations of the bank and ability to service and meet the needs of our customers |
• | Operating income: Operating income1 for the quarter totals $300 million, up 30 percent (annualized) from fourth quarter 2019 levels |
• | Loans and Deposits: Momentum from fourth quarter 2019 continues as total loans increase 22 percent (annualized) on a linked quarter basis. Total deposits rise 12 percent (annualized) driven by a 51 percent increase (annualized) in interest bearing transaction accounts |
• | Credit quality: Nonperforming loan ratio at 1.09 percent, up 3 basis points from year-end 2019 while net charge-offs as a percentage of average loans at 69 basis points, down 18 basis points from fourth quarter 2019 levels. Provision expense of $357 million in the quarter due to the drastic slowdown in economic activity from COVID-19 and steep drop in oil prices |
• | Capital and liquidity: Regulatory and liquidity positions remain strong. CET12 ends quarter at 11.97 percent while Liquidity Coverage Ratio (LCR) remains stout at 144 percent |
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
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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.
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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.
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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.
Contact Details: | ||
Christina Anderson | Ed Bilek | |
External Communications | Investor Relations | |
Tel. 205.903.3706 | Tel. 205.297.3331 | |
christina.anderson@bbva.com | ed.bilek@bbva.com | |
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
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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.
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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 | |||||||||
[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 | |||||||||||
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BBVA USA BANCSHARES, INC. (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||
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 | ) | ||||||||||||||
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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 | |||||||||||||||
[a] Includes loans held for sale. | ||||||||||||||||||||
[b] Excludes loans classified as troubled debt restructuring (TDRs). | ||||||||||||||||||||
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 | |||||||||||||||
[c] Includes loans held for sale that are on nonaccrual status. | ||||||||||||||||||||
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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. | ||||||||||||||||||||||
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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 | ||||||||||||||||
NM = Not meaningful | |||||||||||||||||||||||||||||||
9
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 | % | ||||||||||||||
10
BBVA USA BANCSHARES, INC SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) (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 | $ | — | |||||||||||||||
11
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 | $ | — | |||||||||||||||
12
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 | $ | — | |||||||||||||||
13
BBVA USA BANCSHARES, INC. BALANCE SHEET (Unaudited) (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 | |||||||||
14
BBVA USA BANCSHARES, INC. INCOME STATEMENTS (Unaudited) (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 | ||||||||||||||
Corporate and correspondent investment sales | 10,717 | 14,263 | 11,799 | 5,607 | 6,892 | ||||||||||||||
Asset management fees | 11,904 | 11,532 | 11,405 | 11,867 | 10,767 | ||||||||||||||
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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