Attached files
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| 8-K - 8-K - BBVA USA Bancshares, Inc. | bbvausabancinc123120208k.htm |
Exhibit 99.1
January 29, 2021
BBVA USA reports fourth quarter 2020 results
•Revenue: Total revenue of $969 million, up 18 percent (annualized) from third quarter 2020 levels as both net interest income (+16 percent annualized) and noninterest income (+24 percent annualized) post double digit gains
•Expenses: Noninterest expense totals $578 million, down 12 percent (annualized) on a linked quarter basis and down 6 percent from the year ago quarter, excluding goodwill impairment. Efficiency ratio ends the quarter at 58.98 percent compared to 63.55 percent on a linked quarter basis and 67.92 percent in the year ago quarter
•Operating income: Operating income1 in the quarter totals a record $391 million compared to $331 million recorded in the third quarter of 2020 and $279 million recorded in the fourth quarter of 2019
•Loans and Deposits: Newly funded loans in the quarter of $4.4 billion brings the total for the full-year of 2020 to more than $20.2 billion, a 21 percent increase compared to the same time period a year ago. Total deposits end the quarter at $85.9 billion, down 2 percent (annualized) from the third quarter of 2020 and up 15 percent from the year ago quarter
•Provision for credit losses: Provision recapture of credit losses of $81 million in the quarter primarily reflects improvement in macroeconomic factors and forecasts
•Credit quality: Net charge-offs as a percentage of average loans of 34 basis points compared to 59 basis points for the third quarter of 2020. Nonperforming loan ratio at 2.21 percent and coverage ratio at 116 percent
•Capital and Liquidity: CET12 ratio ends the quarter at 13.28 percent, up 49 basis points from third quarter 2020 levels. Liquidity Coverage Ratio (LCR) at 144 percent, unchanged on a sequential quarter basis
BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today net income of $334 million for the fourth quarter of 2020 compared to net income of $166 million in the third quarter of 2020 and a net loss of $331 million in the fourth quarter of 2019. Included in the fourth quarter of 2019 was a non-cash, goodwill impairment charge of $470 million. Excluding the impact of this non-cash charge, adjusted net income1 for the fourth quarter of 2019 was $139 million. Return on average assets and return on average tangible equity1 for the fourth quarter of 2020 were 1.27 percent and 14.38 percent, respectively.
For the full-year of 2020, the company reported a net loss of $1.9 billion. Included in the first quarter of 2020 was a non-cash, goodwill impairment charge of $2.2 billion that reflected the drastic change in macroeconomic conditions and forecasts brought about by the COVID-19 pandemic and subsequent decline in interest rates and oil prices. Excluding the impact of this non-cash charge and a $470 million goodwill impairment charge in the fourth quarter of 2019, adjusted net income1 for the full-year of 2020 was $323 million compared to adjusted net income1 of $623 million for the full-year of 2019.
“While we continue to navigate the challenges amid the pandemic, our results for the fourth quarter are a testament to the strength and resiliency of the team we have at BBVA USA and their focus on serving our customers and the communities where we live and work,” said Javier Rodríguez Soler, president and CEO of BBVA USA.
“Momentum continued in the quarter highlighted by strong revenue growth and well-contained expenses which allowed us to deliver record operating income. At the same time, we continue to maintain strong liquidity and capital positions. We enter the new year focused on continuing to meet the challenges ahead, and subject to regulatory approval and closing, successfully integrating our operations with PNC and the opportunities that this combination will bring to our customers, our communities and to our employees.”
Total revenue for the fourth quarter of 2020 was $969 million, up 18 percent (annualized) from third quarter 2020 levels and up 8 percent from fourth quarter 2019 levels. Net interest income in the quarter totaled $667 million, up 16 percent (annualized) from the $642 million recorded in the third quarter of 2020, and up 7 percent from the $623 million recorded in the fourth quarter of 2019. The percent net interest margin for the fourth quarter of 2020 was 2.78 percent compared to 2.68 percent in the third quarter of 2020 and 2.96 percent in the fourth quarter of 2019.
1
Noninterest income for the fourth quarter of 2020 totaled $301 million, up 24 percent (annualized) from the $285 million reported in the third quarter of 2020, and up 11 percent from the $273 million reported in the fourth quarter of 2019. The increase in noninterest income on a linked quarter basis was driven by an increase in corporate and correspondent investment sales (+$13 million), mortgage banking (+$6 million), service charges on deposit accounts (+$5 million) and money transfer income (+$2 million). Following two consecutive strong quarters, investment banking and advisory fees slowed on a linked quarter basis (-$14 million) but showed solid growth (+$11 million) compared to fourth quarter 2019 levels. For the full-year of 2020, noninterest income (excluding securities gains) totaled $1.2 billion, up 6 percent compared to full-year 2019 results.
No gains or losses were recorded on the sale of investment securities in the fourth quarter of 2020, in the third quarter of 2020 and in the fourth quarter of 2019. For the full-year of 2020, investment securities gains totaled $23 million compared to $30 million for the full-year of 2019.
Total noninterest expense for the fourth quarter of 2020 was $578 million, down 12 percent (annualized) from the $596 million reported in the third quarter of 2020 and down 6 percent compared to adjusted noninterest expense (excluding goodwill impairment) for the fourth quarter of 2019. On a linked quarter basis, the decline in noninterest expense was due to a decrease in other noninterest expense (-$27 million) offset, in part, by increases in salaries, benefits and commissions (+$4 million) and professional services (+$3 million). The decrease in other noninterest expense was primarily driven by a decline in provision for unfunded commitments.
The increase in revenue coupled with the decline in noninterest expense resulted in positive operating leverage both on a linked quarter basis and compared to the year ago quarter. Operating income1 for the fourth quarter of 2020 was a record $391 million compared to $331 million in the third quarter of 2020 and $279 million in the fourth quarter of 2019. The efficiency ratio1 for the fourth quarter of 2020 was 58.98 percent compared to 63.55 percent for the third quarter of 2020 and 67.92 percent for the fourth quarter of 2019.
Total loans at the end of the fourth quarter of 2020 were $65.8 billion, down 4 percent (annualized) from $66.4 billion at the end of the third quarter of 2020 and up 3 percent from the $64.1 billion at the end of the fourth quarter of 2019. Commercial loans associated with the energy sector were $2.4 billion compared to $2.5 billion at the end of the third quarter of 2020 and $2.9 billion at the fourth quarter of 2019. During the quarter, newly funded loans totaled $4.4 billion bringing the total to more than $20.2 billion for the full year of 2020, a 21 percent increase compared to the full-year of 2019. Included in 2020 results is approximately $3.3 billion of newly funded loans under the Payroll Protection Program.
Total deposits at the end of the fourth quarter of 2020 were $85.9 billion, down 2 percent (annualized) from the third quarter of 2020 and up $10.9 billion or 15 percent compared to the fourth quarter of 2019. Noninterest bearing demand deposits totaled $27.8 billion, up 15 percent (annualized) on a linked quarter basis and up $5.9 billion or 27 percent compared to the fourth quarter of 2019. Interest bearing transaction accounts (checking, savings and money market accounts) totaled $53.4 billion at the end of the fourth quarter of 2020, relatively unchanged on a linked quarter basis and up $12.3 billion or 30 percent compared to the fourth quarter a year ago.
The loan to deposit ratio at the end of the fourth quarter of 2020 was 76.6 percent compared to 76.9 percent at the end of the third quarter of 2020 and 85.4 percent at the end of the fourth quarter of 2019. The LCR ratio was unchanged from third quarter 2020 levels at 144 percent and consistent with the 145 percent reported at the end of fourth quarter of 2019.
During the fourth quarter of 2020, the company recorded provision recapture of credit losses totaling $81 million compared to provision for credit losses of $151 million in the third quarter of 2020 and $120 million in the fourth quarter of 2019. The recapture of provision expense primarily reflected improvements in macroeconomic factors and forecasts. Net charge-offs as a percentage of average total loans were 34 basis points in the quarter compared to 59 basis points in the third quarter of 2020 and 87 basis points in the fourth quarter of 2019. The allowance for loans losses as a percentage of total loans at the end of the 2020 was 2.56 percent compared to 2.73 percent at the end of the third quarter of 2020 and 1.44 percent at the end of the prior year.
Nonperforming loans as a percentage of total loans ended the fourth quarter at 2.21 percent, up from the 2.00 percent at the end of the third quarter of 2020 and 1.06 percent at the end of the fourth quarter of 2019. The increase in nonperforming loans on a linked quarter basis was primarily attributable to an increase in nonaccrual loans associated with commercial real estate – mortgage (+$166 million), residential real estate – mortgage (+$31 million) and real estate – construction (+$13 million), offset in part by a decrease in nonaccrual loans associated with the commercial loan portfolio (-$120 million). Also contributing to the rise in nonperforming loans was an increase in loans 90 days or more past due which totaled $122 million at the end of the fourth quarter of 2020 compared to $94 million at the end of the third quarter of 2020. The coverage ratio of nonperforming loans ended the quarter at 116 percent compared to 136 percent at the end of the third quarter of 2020 and 136 percent at the end of the fourth quarter of 2019.
2
Total shareholder’s equity at the end of the fourth quarter of 2020 totaled $11.7 billion compared to $11.4 billion at the end of the third quarter of 2020 and $13.4 billion at the end of the fourth quarter of 2019. Total tangible shareholder’s equity1 totaled $9.3 billion at the end of the fourth quarter of 2020 compared to $9.0 billion at the end of the third quarter of 2020 and $8.8 billion at the end of the fourth quarter of 2019. The CET12 ratio ended the quarter at 13.28 percent compared to 12.79 percent at the end of the third quarter of 2020 and 12.49 percent at the end of the fourth quarter of 2019. All of BBVA USA’s regulatory capital ratios2 continue to exceed the requirements under “well-capitalized” guidelines.
On November 16, 2020, BBVA announced that it had signed a definitive agreement to sell BBVA USA Bancshares, Inc., including its U.S. banking subsidiary, BBVA USA, to PNC Financial Services Group, Inc. Pending regulatory and other customary approvals, the transaction is expected to close in mid-2021.
1 Operating income, adjusted net income, efficiency ratio and tangible shareholder’s 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 December 31, 2020, are estimated.
| Contact Details: | ||||||||
| Christina Anderson | Ed Bilek | |||||||
| External Communications | Investor Relations | |||||||
| Tel. 205.903.3706 | Tel. 205.612.3378 | |||||||
| 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 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 637 branches, including 328 in Texas, 88 in Alabama, 63 in Arizona, 61 in California, 43 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
3
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.
4
BBVA USA BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
| Three Months Ended December 31, | % | Years Ended December 31, | % | |||||||||||||||||||||||||||||||||||
| 2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||||||||||||||||||
EARNINGS SUMMARY | ||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 667,202 | $ | 623,154 | 7 | $ | 2,510,524 | $ | 2,607,033 | (4) | ||||||||||||||||||||||||||||
Noninterest income [a] | 301,416 | 272,584 | 11 | 1,170,056 | 1,105,983 | 6 | ||||||||||||||||||||||||||||||||
Total revenue [a] | 968,618 | 895,738 | 8 | 3,680,580 | 3,713,016 | (1) | ||||||||||||||||||||||||||||||||
Investment securities gain, net | — | — | — | 22,616 | 29,961 | (25) | ||||||||||||||||||||||||||||||||
| Provision for credit losses | (81,298) | 119,505 | (168) | 966,129 | 597,444 | 62 | ||||||||||||||||||||||||||||||||
Goodwill impairment | — | 470,000 | NM | 2,185,000 | 470,000 | 365 | ||||||||||||||||||||||||||||||||
Noninterest expense | 577,580 | 616,906 | (6) | 2,376,718 | 2,396,080 | (1) | ||||||||||||||||||||||||||||||||
Pretax (loss) income | 472,336 | (310,673) | NM | (1,824,651) | 279,453 | (753) | ||||||||||||||||||||||||||||||||
Income tax expense | 138,519 | 20,032 | 591 | 37,013 | 126,046 | (71) | ||||||||||||||||||||||||||||||||
Net (loss) income | $ | 333,817 | $ | (330,705) | NM | $ | (1,861,664) | $ | 153,407 | (1,314) | ||||||||||||||||||||||||||||
Adjusted net income [b] | $ | 333,817 | $ | 139,295 | 140 | $ | 323,336 | $ | 623,407 | (48) | ||||||||||||||||||||||||||||
SELECTED RATIOS | ||||||||||||||||||||||||||||||||||||||
Return on average assets | 1.27 | % | (1.37) | % | (1.83) | % | 0.16 | % | ||||||||||||||||||||||||||||||
Return on average assets- adjusted [b] | 1.27 | 0.58 | 0.32 | 0.66 | ||||||||||||||||||||||||||||||||||
Return on average tangible equity [b] | 14.38 | (14.46) | (20.44) | 1.73 | ||||||||||||||||||||||||||||||||||
Return on average tangible equity- adjusted [b] | 14.38 | 6.09 | 3.55 | 7.03 | ||||||||||||||||||||||||||||||||||
Efficiency ratio [b] | 58.98 | 67.92 | 63.80 | 63.64 | ||||||||||||||||||||||||||||||||||
Average common equity to average assets | 10.81 | 14.44 | 11.51 | 14.46 | ||||||||||||||||||||||||||||||||||
Average loans to average total deposits | 77.07 | 86.29 | 81.34 | 88.04 | ||||||||||||||||||||||||||||||||||
Common equity tier 1 capital (CET1) [c] | 13.28 | 12.49 | 13.28 | 12.49 | ||||||||||||||||||||||||||||||||||
Tier I capital ratio [c] | 13.61 | 12.83 | 13.61 | 12.83 | ||||||||||||||||||||||||||||||||||
Total capital ratio [c] | 15.78 | 14.98 | 15.78 | 14.98 | ||||||||||||||||||||||||||||||||||
Leverage ratio [c] | 9.07 | 9.70 | 9.07 | 9.70 | ||||||||||||||||||||||||||||||||||
| [a] Excludes net gain on sales of investment securities. | ||||||||||||||||||||||||||||||||||||||
| [b] Non-GAAP measure that we believe aids in understanding certain areas of our performance. The calculation of this measure is included on the page titled Non-GAAP Reconciliation. | ||||||||||||||||||||||||||||||||||||||
| [c] Current period regulatory capital ratios are estimated. | ||||||||||||||||||||||||||||||||||||||
| NM = Not meaningful | ||||||||||||||||||||||||||||||||||||||
5
BBVA USA BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
| Average for Three Months | Average for Year | Ending Balance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ended December 31, | % | Ended December 31, | % | December 31, | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||
| BALANCE SHEET HIGHLIGHTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | 66,212,070 | $ | 63,956,453 | 4 | $ | 67,045,078 | $ | 64,275,473 | 4 | $ | 65,796,353 | $ | 64,058,915 | 3 | |||||||||||||||||||||||||||||||||||||||||
Total debt securities | 15,639,628 | 13,792,727 | 13 | 14,519,143 | 13,725,672 | 6 | 16,297,042 | 14,032,351 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||
Earning assets | 97,057,560 | 85,135,405 | 14 | 93,694,488 | 83,839,035 | 12 | 96,139,619 | 84,712,261 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 104,835,589 | 95,754,954 | 9 | 102,008,134 | 94,293,422 | 8 | 102,756,203 | 93,603,347 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing demand deposits | 27,425,253 | 21,288,781 | 29 | 24,506,957 | 20,631,434 | 19 | 27,791,421 | 21,850,216 | 27 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest bearing transaction accounts | 53,074,596 | 39,773,454 | 33 | 49,723,165 | 37,595,208 | 32 | 53,381,931 | 41,081,638 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||
Total transaction accounts | 80,499,849 | 61,062,235 | 32 | 74,230,122 | 58,226,642 | 27 | 81,173,352 | 62,931,854 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | 85,906,838 | 74,122,266 | 16 | 82,426,860 | 73,007,106 | 13 | 85,858,381 | 74,985,283 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||
Total shareholder's equity | 11,595,287 | 14,090,315 | (18) | 12,003,167 | 13,894,163 | (14) | 11,691,362 | 13,386,589 | (13) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total shareholder's equity-tangible [a] | 9,236,590 | 9,073,380 | 2 | 9,105,998 | 8,867,440 | 3 | 9,332,389 | 8,831,259 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
| [a] Non-GAAP measure that we believe aids in understanding certain areas of our performance. The calculation of this measure is included on the page titled Non-GAAP Reconciliation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6
BBVA USA BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
| 2020 | 2019 | |||||||||||||||||||||||||||||||
| December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||||||||||||||
Nonaccrual loans [a] | $ | 1,331,230 | $ | 1,233,040 | $ | 764,744 | $ | 676,716 | $ | 606,843 | ||||||||||||||||||||||
Loans 90 days or more past due [b] | 121,570 | 94,072 | 66,163 | 61,774 | 71,126 | |||||||||||||||||||||||||||
TDRs 90 days or more past due | 556 | 830 | 423 | 335 | 414 | |||||||||||||||||||||||||||
Total nonperforming loans [a] | 1,453,356 | 1,327,942 | 831,330 | 738,825 | 678,383 | |||||||||||||||||||||||||||
Foreclosed real estate | 11,448 | 15,051 | 14,871 | 20,642 | 20,833 | |||||||||||||||||||||||||||
Other repossessed assets | 5,846 | 8,527 | 8,599 | 13,338 | 10,930 | |||||||||||||||||||||||||||
Total nonperforming assets | $ | 1,470,650 | $ | 1,351,520 | $ | 854,800 | $ | 772,805 | $ | 710,146 | ||||||||||||||||||||||
TDRs accruing and past due less than 90 days | $ | 114,334 | $ | 114,583 | $ | 95,788 | $ | 97,404 | $ | 97,901 | ||||||||||||||||||||||
Total nonperforming loans as a % of loans | 2.21 | % | 2.00 | % | 1.21 | % | 1.09 | % | 1.06 | % | ||||||||||||||||||||||
Total nonperforming assets as a % of total loans, foreclosed real estate, and other repossessed assets | 2.23 | 2.03 | 1.25 | 1.14 | 1.11 | |||||||||||||||||||||||||||
[a] Includes loans held for sale. | ||||||||||||||||||||||||||||||||
| [b] Excludes loans classified as troubled debt restructurings (TDRs). | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| 2020 | 2019 | |||||||||||||||||||||||||||||||
| December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 1,804,423 | $ | 1,754,352 | $ | 1,351,072 | $ | 920,993 | $ | 942,191 | ||||||||||||||||||||||
| Adoption of ASC 326 | — | — | — | 184,931 | — | |||||||||||||||||||||||||||
| Net charge-offs (NCO) | 56,578 | 100,818 | 123,054 | 111,798 | 140,703 | |||||||||||||||||||||||||||
| Provision for loan losses | (68,371) | 150,889 | 526,334 | 356,946 | 119,505 | |||||||||||||||||||||||||||
| Balance at end of period | $ | 1,679,474 | $ | 1,804,423 | $ | 1,754,352 | $ | 1,351,072 | $ | 920,993 | ||||||||||||||||||||||
| Allowance for loan losses as a % of total loans | 2.56 | % | 2.73 | % | 2.57 | % | 2.00 | % | 1.44 | % | ||||||||||||||||||||||
| Allowance for loan losses as a % of nonperforming loans [c] | 115.56 | 135.88 | 211.03 | 182.87 | 135.76 | |||||||||||||||||||||||||||
| Allowance for loan losses as a % of nonperforming assets [c] | 114.20 | 133.51 | 205.24 | 174.83 | 129.69 | |||||||||||||||||||||||||||
| Annualized as a % of average loans: | ||||||||||||||||||||||||||||||||
| NCO - QTD | 0.34 | 0.59 | 0.72 | 0.69 | 0.87 | |||||||||||||||||||||||||||
| NCO - YTD | 0.59 | 0.67 | 0.71 | 0.69 | 0.88 | |||||||||||||||||||||||||||
| [c] Includes loans held for sale that are on nonaccrual status. | ||||||||||||||||||||||||||||||||
7
BBVA USA BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
| Three Months Ended December 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 | $ | 66,212,070 | $ | 636,738 | 3.83 | % | $ | 63,956,453 | $ | 749,428 | 4.65 | % | ||||||||||||||||||||||||||
| Debt securities available for sale [a] | 5,533,487 | 22,089 | 1.59 | 7,223,333 | 33,333 | 1.83 | ||||||||||||||||||||||||||||||||
| Debt securities held to maturity | 9,988,959 | 61,570 | 2.45 | 6,576,786 | 44,207 | 2.67 | ||||||||||||||||||||||||||||||||
| Other earning assets [b] | 15,205,862 | 7,873 | 0.21 | 7,386,225 | 41,241 | 2.22 | ||||||||||||||||||||||||||||||||
Total earning assets [a] | 96,940,378 | 728,270 | 2.99 | 85,142,797 | 868,209 | 4.05 | ||||||||||||||||||||||||||||||||
| Allowance for credit losses | (1,776,160) | (944,773) | ||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on debt securities available for sale | 117,182 | (7,392) | ||||||||||||||||||||||||||||||||||||
Other assets | 9,554,189 | 11,564,322 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 104,835,589 | $ | 95,754,954 | ||||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest bearing demand deposits | $ | 14,540,342 | $ | 6,812 | 0.19 | $ | 9,329,342 | $ | 23,648 | 1.01 | ||||||||||||||||||||||||||||
Savings and money market accounts | 38,534,254 | 13,526 | 0.14 | 30,444,112 | 93,114 | 1.21 | ||||||||||||||||||||||||||||||||
Certificates and other time deposits | 5,406,989 | 13,607 | 1.00 | 13,060,031 | 72,583 | 2.20 | ||||||||||||||||||||||||||||||||
Total interest bearing deposits | 58,481,585 | 33,945 | 0.23 | 52,833,485 | 189,345 | 1.42 | ||||||||||||||||||||||||||||||||
FHLB and other borrowings | 3,552,199 | 14,092 | 1.58 | 3,701,993 | 31,263 | 3.35 | ||||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase [b] | 864,177 | 2,350 | 1.08 | 1,137,573 | 11,850 | 4.13 | ||||||||||||||||||||||||||||||||
Other short-term borrowings | 10,113 | 85 | 3.34 | 11,189 | 199 | 7.06 | ||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 62,908,074 | 50,472 | 0.32 | 57,684,240 | 232,657 | 1.60 | ||||||||||||||||||||||||||||||||
Noninterest bearing deposits | 27,425,253 | 21,288,781 | ||||||||||||||||||||||||||||||||||||
Other noninterest bearing liabilities | 2,906,975 | 2,691,618 | ||||||||||||||||||||||||||||||||||||
Total liabilities | 93,240,302 | 81,664,639 | ||||||||||||||||||||||||||||||||||||
Shareholder's equity | 11,595,287 | 14,090,315 | ||||||||||||||||||||||||||||||||||||
Total liabilities and shareholder's equity | $ | 104,835,589 | $ | 95,754,954 | ||||||||||||||||||||||||||||||||||
Net interest income/ net interest spread | 677,798 | 2.67 | % | 635,552 | 2.45 | % | ||||||||||||||||||||||||||||||||
Net yield on earning assets | 2.78 | % | 2.96 | % | ||||||||||||||||||||||||||||||||||
Total taxable equivalent adjustment | 10,596 | 12,398 | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | 667,202 | $ | 623,154 | ||||||||||||||||||||||||||||||||||
| [a] Excludes adjustment for market valuation. | ||||||||||||||||||||||||||||||||||||||
| [b] Yield/rate reflects impact of balance sheet offsetting. | ||||||||||||||||||||||||||||||||||||||
8
BBVA USA BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
| Years Ended December 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 | $ | 67,045,078 | $ | 2,698,114 | 4.02 | % | $ | 64,275,473 | $ | 3,144,471 | 4.89 | % | ||||||||||||||||||||||||||
| Debt securities available for sale [a] | 5,825,301 | 58,876 | 1.01 | 8,520,287 | 168,031 | 1.97 | ||||||||||||||||||||||||||||||||
| Debt securities held to maturity | 8,593,882 | 195,032 | 2.27 | 5,281,585 | 149,505 | 2.83 | ||||||||||||||||||||||||||||||||
| Other earning assets [b] | 12,130,267 | 73,671 | 0.61 | 5,837,890 | 148,187 | 2.54 | ||||||||||||||||||||||||||||||||
Total earning assets [a] | 93,594,528 | 3,025,693 | 3.23 | 83,915,235 | 3,610,194 | 4.30 | ||||||||||||||||||||||||||||||||
| Allowance for credit losses | (1,497,922) | (950,306) | ||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on debt securities available for sale | 99,960 | (76,200) | ||||||||||||||||||||||||||||||||||||
Other assets | 9,811,568 | 11,404,693 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 102,008,134 | $ | 94,293,422 | ||||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest bearing demand deposits | $ | 13,649,238 | 54,570 | 0.40 | $ | 9,048,948 | 95,709 | 1.06 | ||||||||||||||||||||||||||||||
Savings and money market accounts | 36,073,927 | 168,737 | 0.47 | 28,546,260 | 354,286 | 1.24 | ||||||||||||||||||||||||||||||||
Certificates and other time deposits | 8,196,738 | 133,806 | 1.63 | 14,780,464 | 328,161 | 2.22 | ||||||||||||||||||||||||||||||||
Total interest bearing deposits | 57,919,903 | 357,113 | 0.62 | 52,375,672 | 778,156 | 1.49 | ||||||||||||||||||||||||||||||||
FHLB and other borrowings | 3,605,422 | 71,848 | 1.99 | 3,968,094 | 136,164 | 3.43 | ||||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase [b] | 1,249,629 | 41,018 | 3.28 | 857,922 | 36,736 | 4.28 | ||||||||||||||||||||||||||||||||
Other short-term borrowings | 12,158 | 525 | 4.32 | 14,963 | 567 | 3.79 | ||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 62,787,112 | 470,504 | 0.75 | 57,216,651 | 951,623 | 1.66 | ||||||||||||||||||||||||||||||||
Noninterest bearing deposits | 24,506,957 | 20,631,434 | ||||||||||||||||||||||||||||||||||||
Other noninterest bearing liabilities | 2,710,898 | 2,551,174 | ||||||||||||||||||||||||||||||||||||
Total liabilities | 90,004,967 | 80,399,259 | ||||||||||||||||||||||||||||||||||||
Shareholder's equity | 12,003,167 | 13,894,163 | ||||||||||||||||||||||||||||||||||||
Total liabilities and shareholder's equity | $ | 102,008,134 | $ | 94,293,422 | ||||||||||||||||||||||||||||||||||
Net interest income/ net interest spread | 2,555,189 | 2.48 | % | 2,658,571 | 2.64 | % | ||||||||||||||||||||||||||||||||
Net yield on earning assets | 2.73 | % | 3.17 | % | ||||||||||||||||||||||||||||||||||
Total taxable equivalent adjustment | 44,665 | 51,538 | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | 2,510,524 | $ | 2,607,033 | ||||||||||||||||||||||||||||||||||
| [a] Excludes adjustment for market valuation. | ||||||||||||||||||||||||||||||||||||||
| [b] Yield/rate reflects impact of balance sheet offsetting. | ||||||||||||||||||||||||||||||||||||||
9
BBVA USA BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
| Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, | % | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | Change | December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||||||||||||||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 219,783 | $ | 250,367 | (12) | $ | 59,309 | $ | 54,710 | $ | 44,233 | $ | 61,531 | $ | 64,585 | |||||||||||||||||||||||||||||||||||
Card and merchant processing fees | 192,096 | 197,547 | (3) | 49,961 | 48,628 | 43,416 | 50,091 | 50,805 | ||||||||||||||||||||||||||||||||||||||||||
Investment services sales fees | 112,243 | 115,446 | (3) | 26,647 | 26,218 | 24,971 | 34,407 | 28,130 | ||||||||||||||||||||||||||||||||||||||||||
Investment banking and advisory fees | 138,096 | 83,659 | 65 | 26,291 | 40,013 | 45,061 | 26,731 | 15,720 | ||||||||||||||||||||||||||||||||||||||||||
Money transfer income | 106,564 | 99,144 | 7 | 29,446 | 27,109 | 25,461 | 24,548 | 25,871 | ||||||||||||||||||||||||||||||||||||||||||
Asset management fees | 48,101 | 45,571 | 6 | 12,613 | 12,024 | 11,560 | 11,904 | 11,532 | ||||||||||||||||||||||||||||||||||||||||||
Corporate and correspondent investment sales | 49,318 | 38,561 | 28 | 16,268 | 3,478 | 18,855 | 10,717 | 14,263 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage banking income | 74,813 | 28,059 | 167 | 19,753 | 13,741 | 23,868 | 17,451 | 9,048 | ||||||||||||||||||||||||||||||||||||||||||
Bank owned life insurance | 20,149 | 17,479 | 15 | 5,458 | 4,972 | 5,094 | 4,625 | 4,584 | ||||||||||||||||||||||||||||||||||||||||||
Other | 208,893 | 230,150 | (9) | 55,670 | 53,767 | 26,358 | 73,098 | 48,046 | ||||||||||||||||||||||||||||||||||||||||||
| 1,170,056 | 1,105,983 | 6 | 301,416 | 284,660 | 268,877 | 315,103 | 272,584 | |||||||||||||||||||||||||||||||||||||||||||
Investment securities gains, net | 22,616 | 29,961 | (25) | — | — | 3,477 | 19,139 | — | ||||||||||||||||||||||||||||||||||||||||||
Total noninterest income | $ | 1,192,672 | $ | 1,135,944 | 5 | $ | 301,416 | $ | 284,660 | $ | 272,354 | $ | 334,242 | $ | 272,584 | |||||||||||||||||||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries, benefits and commissions | $ | 1,159,561 | $ | 1,181,934 | (2) | $ | 301,020 | $ | 296,708 | $ | 251,697 | $ | 310,136 | $ | 297,823 | |||||||||||||||||||||||||||||||||||
Professional services | 306,873 | 292,926 | 5 | 80,535 | 78,018 | 78,100 | 70,220 | 82,343 | ||||||||||||||||||||||||||||||||||||||||||
Equipment | 267,547 | 256,766 | 4 | 69,321 | 68,793 | 64,752 | 64,681 | 64,826 | ||||||||||||||||||||||||||||||||||||||||||
Net occupancy | 163,125 | 166,600 | (2) | 40,552 | 41,145 | 41,585 | 39,843 | 43,302 | ||||||||||||||||||||||||||||||||||||||||||
Money transfer expense | 74,755 | 68,224 | 10 | 20,764 | 18,897 | 17,958 | 17,136 | 17,951 | ||||||||||||||||||||||||||||||||||||||||||
Marketing | 40,130 | 55,164 | (27) | 10,170 | 9,283 | 8,778 | 11,899 | 12,888 | ||||||||||||||||||||||||||||||||||||||||||
Communications | 21,759 | 21,782 | — | 5,038 | 5,542 | 5,808 | 5,371 | 5,179 | ||||||||||||||||||||||||||||||||||||||||||
Other | 342,968 | 352,684 | (3) | 50,180 | 77,242 | 110,772 | 104,774 | 92,594 | ||||||||||||||||||||||||||||||||||||||||||
| 2,376,718 | 2,396,080 | (1) | 577,580 | 595,628 | 579,450 | 624,060 | 616,906 | |||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | 2,185,000 | 470,000 | 365 | — | — | — | 2,185,000 | 470,000 | ||||||||||||||||||||||||||||||||||||||||||
Total noninterest expense | $ | 4,561,718 | $ | 2,866,080 | 59 | $ | 577,580 | $ | 595,628 | $ | 579,450 | $ | 2,809,060 | $ | 1,086,906 | |||||||||||||||||||||||||||||||||||
10
BBVA USA BANCSHARES, INC.
(Unaudited)
(Dollars in thousands)
| Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| December 31, | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | December 31 | September 30 | June 30 | March 31 | December 31 | ||||||||||||||||||||||||||||||||||||||
NON-GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||||||||||||||
Computation of Operating Income: | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 2,510,524 | $ | 2,607,033 | $ | 667,202 | $ | 641,850 | $ | 612,017 | $ | 589,455 | $ | 623,154 | ||||||||||||||||||||||||||||||
Plus: noninterest income (GAAP) | 1,192,672 | 1,135,944 | 301,416 | 284,660 | 272,354 | 334,242 | 272,584 | |||||||||||||||||||||||||||||||||||||
| Less: noninterest expense (GAAP) | 4,561,718 | 2,866,080 | 577,580 | 595,628 | 579,450 | 2,809,060 | 1,086,906 | |||||||||||||||||||||||||||||||||||||
| Plus: goodwill impairment (GAAP) | 2,185,000 | 470,000 | — | — | — | 2,185,000 | 470,000 | |||||||||||||||||||||||||||||||||||||
| Operating income (non-GAAP) | $ | 1,326,478 | $ | 1,346,897 | $ | 391,038 | $ | 330,882 | $ | 304,921 | $ | 299,637 | $ | 278,832 | ||||||||||||||||||||||||||||||
| Computation of Tangible Shareholder's Equity: | ||||||||||||||||||||||||||||||||||||||||||||
Total shareholder's equity | $ | 11,691,362 | $ | 13,386,589 | $ | 11,691,362 | $ | 11,394,964 | $ | 11,270,789 | $ | 11,358,354 | $ | 13,386,589 | ||||||||||||||||||||||||||||||
Less: goodwill and other intangibles (GAAP) | 2,358,973 | 4,555,330 | 2,358,973 | 2,357,039 | 2,357,343 | 2,359,540 | 4,555,330 | |||||||||||||||||||||||||||||||||||||
| Tangible shareholder's equity (non-GAAP) | $ | 9,332,389 | $ | 8,831,259 | $ | 9,332,389 | $ | 9,037,925 | $ | 8,913,446 | $ | 8,998,814 | $ | 8,831,259 | ||||||||||||||||||||||||||||||
Computation of Average Tangible Equity: | ||||||||||||||||||||||||||||||||||||||||||||
Total stockholder's equity (average) (GAAP) | $ | 12,003,167 | $ | 13,894,163 | $ | 11,595,287 | $ | 11,394,928 | $ | 11,533,007 | $ | 13,500,615 | $ | 14,090,315 | ||||||||||||||||||||||||||||||
| Less: goodwill and other intangibles (average) (GAAP) | 2,897,169 | 5,026,723 | 2,358,697 | 2,357,944 | 2,357,132 | 4,526,744 | 5,016,935 | |||||||||||||||||||||||||||||||||||||
Average tangible equity (non-GAAP) [B] | $ | 9,105,998 | $ | 8,867,440 | $ | 9,236,590 | $ | 9,036,984 | $ | 9,175,875 | $ | 8,973,871 | $ | 9,073,380 | ||||||||||||||||||||||||||||||
Net income (loss) (GAAP) [A] | $ | (1,861,664) | $ | 153,407 | $ | 333,817 | $ | 166,241 | $ | (124,437) | $ | (2,237,285) | $ | (330,705) | ||||||||||||||||||||||||||||||
Return on average tangible equity (non-GAAP) ([A]/[B], annualized) | (20.44) | % | 1.73 | % | 14.38 | % | 7.32 | % | (5.45) | % | (100.27) | % | (14.46) | % | ||||||||||||||||||||||||||||||
Computation of Adjusted Net Income, Return on Average Assets and Return on Average Tangible Equity: | ||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) (GAAP) | $ | (1,861,664) | $ | 153,407 | $ | 333,817 | $ | 166,241 | $ | (124,437) | $ | (2,237,285) | $ | (330,705) | ||||||||||||||||||||||||||||||
| Plus: goodwill impairment (GAAP) | 2,185,000 | 470,000 | — | — | — | 2,185,000 | 470,000 | |||||||||||||||||||||||||||||||||||||
| Adjusted net income (non-GAAP) [C] | $ | 323,336 | $ | 623,407 | $ | 333,817 | $ | 166,241 | $ | (124,437) | $ | (52,285) | $ | 139,295 | ||||||||||||||||||||||||||||||
| Average assets (GAAP) [D] | $ | 102,008,134 | $ | 94,293,422 | $ | 104,835,589 | $ | 104,282,898 | $ | 104,204,062 | $ | 96,356,113 | $ | 95,754,954 | ||||||||||||||||||||||||||||||
| Return on average assets - adjusted (non-GAAP) ([C]/[D], annualized) | 0.32 | % | 0.66 | % | 1.27 | % | 0.63 | % | (0.48) | % | (0.22) | % | 0.58 | % | ||||||||||||||||||||||||||||||
| Return on average tangible equity - adjusted (non-GAAP) ([C]/[B], annualized) | 3.55 | 7.03 | 14.38 | 7.32 | (5.45) | (2.34) | 6.09 | |||||||||||||||||||||||||||||||||||||
Computation of Efficiency Ratio: | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense (GAAP) | $ | 4,561,718 | $ | 2,866,080 | $ | 577,580 | $ | 595,628 | $ | 579,450 | $ | 2,809,060 | $ | 1,086,906 | ||||||||||||||||||||||||||||||
| Less: securities and goodwill impairment (GAAP) | 2,185,000 | 470,215 | — | — | — | 2,185,000 | 470,102 | |||||||||||||||||||||||||||||||||||||
| Total expense (GAAP) [E] | $ | 2,376,718 | $ | 2,395,865 | $ | 577,580 | $ | 595,628 | $ | 579,450 | $ | 624,060 | $ | 616,804 | ||||||||||||||||||||||||||||||
| Net interest income, taxable equivalent basis | $ | 2,555,189 | $ | 2,658,571 | $ | 677,798 | $ | 652,660 | $ | 623,242 | 601,489 | $ | 635,552 | |||||||||||||||||||||||||||||||
Plus: noninterest income (GAAP) | 1,192,672 | 1,135,944 | 301,416 | 284,660 | 272,354 | 334,242 | 272,584 | |||||||||||||||||||||||||||||||||||||
Less: investment securities gains, net (GAAP) | 22,616 | 29,961 | — | — | 3,477 | 19,139 | — | |||||||||||||||||||||||||||||||||||||
| Total revenue [F] | $ | 3,725,245 | $ | 3,764,554 | $ | 979,214 | $ | 937,320 | $ | 892,119 | $ | 916,592 | $ | 908,136 | ||||||||||||||||||||||||||||||
Efficiency ratio (non-GAAP) ([E/[F]) | 63.80 | % | 63.64 | % | 58.98 | % | 63.55 | % | 64.95 | % | 68.08 | % | 67.92 | % | ||||||||||||||||||||||||||||||
11
BBVA USA BANCSHARES, INC.
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)
(In Thousands)
| At or Quarter Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
| 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Nonaccrual | Accruing TDRs | Not Past Due or Impaired | Total | Net Charge Offs (Recoveries) | ||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 15,862 | $ | 22,569 | $ | 35,472 | $ | 540,741 | $ | 17,686 | $ | 25,972,812 | $ | 26,605,142 | $ | 5,019 | |||||||||||||||||||||||||||||||
| Real estate – construction | 3,595 | 174 | 532 | 25,316 | 145 | 2,468,569 | 2,498,331 | (2) | |||||||||||||||||||||||||||||||||||||||
Commercial real estate – mortgage | 2,113 | 2,004 | 1,104 | 442,137 | 910 | 13,117,046 | 13,565,314 | 203 | |||||||||||||||||||||||||||||||||||||||
Residential real estate – mortgage | 49,445 | 20,694 | 45,761 | 235,463 | 53,380 | 12,923,031 | 13,327,774 | 1,029 | |||||||||||||||||||||||||||||||||||||||
| Equity lines of credit | 11,108 | 4,305 | 2,624 | 42,606 | — | 2,334,251 | 2,394,894 | (795) | |||||||||||||||||||||||||||||||||||||||
| Equity loans | 1,417 | 243 | 317 | 10,167 | 19,606 | 148,012 | 179,762 | 135 | |||||||||||||||||||||||||||||||||||||||
| Credit card | 12,147 | 10,191 | 21,953 | — | — | 837,411 | 881,702 | 14,714 | |||||||||||||||||||||||||||||||||||||||
| Consumer – direct | 24,076 | 17,550 | 8,741 | 10,087 | 23,163 | 1,846,106 | 1,929,723 | 28,206 | |||||||||||||||||||||||||||||||||||||||
| Consumer – indirect | 47,174 | 14,951 | 5,066 | 24,713 | — | 4,085,221 | 4,177,125 | 8,069 | |||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 166,937 | $ | 92,681 | $ | 121,570 | $ | 1,331,230 | $ | 114,890 | $ | 63,732,459 | $ | 65,559,767 | $ | 56,578 | |||||||||||||||||||||||||||||||
| Loans held for sale | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 236,586 | $ | 236,586 | $ | — | |||||||||||||||||||||||||||||||
| At or Quarter Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | 22,632 | $ | 12,890 | $ | 21,261 | $ | 660,254 | $ | 19,713 | $ | 26,203,423 | $ | 26,940,173 | $ | 50,789 | |||||||||||||||||||||||||||||||
| Real estate – construction | 2,861 | 303 | 532 | 12,614 | 61 | 2,387,303 | 2,403,674 | 153 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate – mortgage | 19,280 | 3,968 | 1,816 | 275,668 | 1,831 | 13,393,237 | 13,695,800 | 98 | |||||||||||||||||||||||||||||||||||||||
Residential real estate – mortgage | 88,035 | 49,344 | 39,728 | 204,442 | 55,132 | 13,027,076 | 13,463,757 | (117) | |||||||||||||||||||||||||||||||||||||||
| Equity lines of credit | 13,418 | 6,300 | 3,445 | 37,216 | — | 2,381,344 | 2,441,723 | 233 | |||||||||||||||||||||||||||||||||||||||
| Equity loans | 1,847 | 1,158 | 271 | 8,758 | 20,750 | 161,583 | 194,367 | (195) | |||||||||||||||||||||||||||||||||||||||
| Credit card | 9,776 | 7,526 | 16,542 | — | — | 873,949 | 907,793 | 18,527 | |||||||||||||||||||||||||||||||||||||||
| Consumer – direct | 25,762 | 11,730 | 6,643 | 9,134 | 17,926 | 1,952,501 | 2,023,696 | 24,559 | |||||||||||||||||||||||||||||||||||||||
| Consumer – indirect | 34,116 | 9,744 | 3,834 | 24,954 | — | 4,036,981 | 4,109,629 | 6,771 | |||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 217,727 | $ | 102,963 | $ | 94,072 | $ | 1,233,040 | $ | 115,413 | $ | 64,417,397 | $ | 66,180,612 | $ | 100,818 | |||||||||||||||||||||||||||||||
| Loans held for sale | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 253,454 | $ | 253,454 | $ | — | |||||||||||||||||||||||||||||||
12
| At or Quarter Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | 51,207 | $ | 5,130 | $ | 8,450 | $ | 389,615 | $ | 1,866 | $ | 28,325,856 | $ | 28,782,124 | $ | 29,038 | |||||||||||||||||||||||||||||||
| Real estate – construction | 12,907 | — | 532 | 13,317 | 64 | 2,271,650 | 2,298,470 | (36) | |||||||||||||||||||||||||||||||||||||||
Commercial real estate – mortgage | 8,592 | 2,190 | 415 | 117,213 | 1,876 | 13,670,383 | 13,800,669 | 8,670 | |||||||||||||||||||||||||||||||||||||||
Residential real estate – mortgage | 70,252 | 22,495 | 13,140 | 169,387 | 54,289 | 13,099,576 | 13,429,139 | 182 | |||||||||||||||||||||||||||||||||||||||
| Equity lines of credit | 8,461 | 8,162 | 3,555 | 34,915 | — | 2,461,741 | 2,516,834 | (476) | |||||||||||||||||||||||||||||||||||||||
| Equity loans | 1,311 | 692 | 148 | 8,457 | 21,280 | 178,092 | 209,980 | (120) | |||||||||||||||||||||||||||||||||||||||
| Credit card | 6,668 | 7,286 | 22,134 | — | — | 929,484 | 965,572 | 20,107 | |||||||||||||||||||||||||||||||||||||||
| Consumer – direct | 19,927 | 10,923 | 11,623 | 7,624 | 16,836 | 2,067,175 | 2,134,108 | 42,271 | |||||||||||||||||||||||||||||||||||||||
| Consumer – indirect | 32,519 | 11,162 | 6,166 | 24,216 | — | 4,030,541 | 4,104,604 | 23,418 | |||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 211,844 | $ | 68,040 | $ | 66,163 | $ | 764,744 | $ | 96,211 | $ | 67,034,498 | $ | 68,241,500 | $ | 123,054 | |||||||||||||||||||||||||||||||
| Loans held for sale | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 245,851 | $ | 245,851 | $ | — | |||||||||||||||||||||||||||||||
| 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 or Impaired | 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 | $ | — | |||||||||||||||||||||||||||||||
13
| 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 | $ | — | |||||||||||||||||||||||||||||||
14
BBVA USA BANCSHARES, INC.
BALANCE SHEET (Unaudited)
(In Thousands)
| 2020 | 2019 | ||||||||||||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | 1,249,954 | $ | 1,035,307 | $ | 1,019,127 | $ | 1,033,733 | $ | 1,149,734 | |||||||||||||||||||
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 13,357,954 | 14,041,538 | 11,738,063 | 4,479,535 | 5,788,964 | ||||||||||||||||||||||||
Cash and cash equivalents | 14,607,908 | 15,076,845 | 12,757,190 | 5,513,268 | 6,938,698 | ||||||||||||||||||||||||
Trading account assets | 762,449 | 926,497 | 1,016,966 | 1,009,130 | 473,976 | ||||||||||||||||||||||||
Debt securities available for sale | 5,744,919 | 6,028,072 | 5,765,192 | 6,344,816 | 7,235,305 | ||||||||||||||||||||||||
| Debt securities held to maturity, net | 10,549,945 | 9,428,931 | 8,693,437 | 7,876,266 | 6,797,046 | ||||||||||||||||||||||||
Loans held for sale | 236,586 | 253,454 | 245,851 | 117,752 | 112,058 | ||||||||||||||||||||||||
Loans | 65,559,767 | 66,180,612 | 68,241,500 | 67,539,414 | 63,946,857 | ||||||||||||||||||||||||
Allowance for loan losses | (1,679,474) | (1,804,423) | (1,754,352) | (1,351,072) | (920,993) | ||||||||||||||||||||||||
Net loans | 63,880,293 | 64,376,189 | 66,487,148 | 66,188,342 | 63,025,864 | ||||||||||||||||||||||||
Premises and equipment, net | 1,055,525 | 1,063,923 | 1,070,358 | 1,068,741 | 1,087,698 | ||||||||||||||||||||||||
Bank owned life insurance | 757,943 | 758,391 | 754,908 | 754,409 | 750,224 | ||||||||||||||||||||||||
Goodwill | 2,328,296 | 2,328,296 | 2,328,296 | 2,328,296 | 4,513,296 | ||||||||||||||||||||||||
Other assets | 2,832,339 | 3,412,324 | 3,148,270 | 3,124,539 | 2,669,182 | ||||||||||||||||||||||||
Total assets | $ | 102,756,203 | $ | 103,652,922 | $ | 102,267,616 | $ | 94,325,559 | $ | 93,603,347 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Noninterest bearing | $ | 27,791,421 | $ | 26,803,670 | $ | 25,978,354 | $ | 20,418,504 | $ | 21,850,216 | |||||||||||||||||||
Interest bearing | 58,066,960 | 59,567,362 | 59,448,060 | 56,816,003 | 53,135,067 | ||||||||||||||||||||||||
Total deposits | 85,858,381 | 86,371,032 | 85,426,414 | 77,234,507 | 74,985,283 | ||||||||||||||||||||||||
FHLB and other borrowings | 3,548,492 | 3,560,973 | 3,571,933 | 3,790,137 | 3,690,044 | ||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 184,478 | 189,474 | 249,481 | 409,784 | 173,028 | ||||||||||||||||||||||||
Other short-term borrowings | — | — | 1,619 | — | — | ||||||||||||||||||||||||
Accrued expenses and other liabilities | 1,473,490 | 2,136,479 | 1,747,380 | 1,532,777 | 1,368,403 | ||||||||||||||||||||||||
Total liabilities | 91,064,841 | 92,257,958 | 90,996,827 | 82,967,205 | 80,216,758 | ||||||||||||||||||||||||
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 | 14,032,205 | 14,032,321 | 14,035,607 | 14,039,572 | 14,043,727 | ||||||||||||||||||||||||
Retained deficit | (2,931,151) | (3,264,295) | (3,430,135) | (3,305,226) | (917,227) | ||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 329,105 | 365,374 | 404,165 | 362,339 | (1,072) | ||||||||||||||||||||||||
Total BBVA USA Bancshares, Inc. shareholder’s equity | 11,661,864 | 11,365,105 | 11,241,342 | 11,328,390 | 13,357,133 | ||||||||||||||||||||||||
Noncontrolling interests | 29,498 | 29,859 | 29,447 | 29,964 | 29,456 | ||||||||||||||||||||||||
Total shareholder’s equity | 11,691,362 | 11,394,964 | 11,270,789 | 11,358,354 | 13,386,589 | ||||||||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 102,756,203 | $ | 103,652,922 | $ | 102,267,616 | $ | 94,325,559 | $ | 93,603,347 | |||||||||||||||||||
15
BBVA USA BANCSHARES, INC.
INCOME STATEMENTS (Unaudited)
(In Thousands)
| Three Months Ended | |||||||||||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||||||||
| December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||
Interest and fees on loans | $ | 626,900 | $ | 644,643 | $ | 669,767 | $ | 715,476 | $ | 738,140 | |||||||||||||||||||
Interest on debt securities available for sale | 22,089 | 19,474 | 18,805 | (1,492) | 33,333 | ||||||||||||||||||||||||
Interest on debt securities held to maturity | 60,812 | 49,981 | 39,800 | 41,102 | 43,097 | ||||||||||||||||||||||||
Interest on trading account assets | 793 | 892 | 1,157 | 1,122 | 1,326 | ||||||||||||||||||||||||
Interest and dividends on other earning assets | 7,080 | 6,436 | 14,016 | 42,175 | 39,915 | ||||||||||||||||||||||||
Total interest income | 717,674 | 721,426 | 743,545 | 798,383 | 855,811 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Interest on deposits | 33,945 | 61,147 | 97,279 | 164,742 | 189,345 | ||||||||||||||||||||||||
Interest on FHLB and other borrowings | 14,092 | 14,644 | 21,936 | 21,176 | 31,263 | ||||||||||||||||||||||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 2,350 | 3,736 | 12,274 | 22,658 | 11,850 | ||||||||||||||||||||||||
Interest on other short-term borrowings | 85 | 49 | 39 | 352 | 199 | ||||||||||||||||||||||||
Total interest expense | 50,472 | 79,576 | 131,528 | 208,928 | 232,657 | ||||||||||||||||||||||||
Net interest income | 667,202 | 641,850 | 612,017 | 589,455 | 623,154 | ||||||||||||||||||||||||
Provision for credit losses | (81,298) | 150,977 | 539,459 | 356,991 | 119,505 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 748,500 | 490,873 | 72,558 | 232,464 | 503,649 | ||||||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
| Service charges on deposit accounts | 59,309 | 54,710 | 44,233 | 61,531 | 64,585 | ||||||||||||||||||||||||
Card and merchant processing fees | 49,961 | 48,628 | 43,416 | 50,091 | 50,805 | ||||||||||||||||||||||||
Investment services sales fees | 26,647 | 26,218 | 24,971 | 34,407 | 28,130 | ||||||||||||||||||||||||
Investment banking and advisory fees | 26,291 | 40,013 | 45,061 | 26,731 | 15,720 | ||||||||||||||||||||||||
Money transfer income | 29,446 | 27,109 | 25,461 | 24,548 | 25,871 | ||||||||||||||||||||||||
Asset management fees | 12,613 | 12,024 | 11,560 | 11,904 | 11,532 | ||||||||||||||||||||||||
Corporate and correspondent investment sales | 16,268 | 3,478 | 18,855 | 10,717 | 14,263 | ||||||||||||||||||||||||
Mortgage banking income | 19,753 | 13,741 | 23,868 | 17,451 | 9,048 | ||||||||||||||||||||||||
Bank owned life insurance | 5,458 | 4,972 | 5,094 | 4,625 | 4,584 | ||||||||||||||||||||||||
Investment securities gains, net | — | — | 3,477 | 19,139 | — | ||||||||||||||||||||||||
Other | 55,670 | 53,767 | 26,358 | 73,098 | 48,046 | ||||||||||||||||||||||||
Total noninterest income | 301,416 | 284,660 | 272,354 | 334,242 | 272,584 | ||||||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||||
Salaries, benefits and commissions | 301,020 | 296,708 | 251,697 | 310,136 | 297,823 | ||||||||||||||||||||||||
Professional services | 80,535 | 78,018 | 78,100 | 70,220 | 82,343 | ||||||||||||||||||||||||
Equipment | 69,321 | 68,793 | 64,752 | 64,681 | 64,826 | ||||||||||||||||||||||||
Net occupancy | 40,552 | 41,145 | 41,585 | 39,843 | 43,302 | ||||||||||||||||||||||||
Money transfer expense | 20,764 | 18,897 | 17,958 | 17,136 | 17,951 | ||||||||||||||||||||||||
Marketing | 10,170 | 9,283 | 8,778 | 11,899 | 12,888 | ||||||||||||||||||||||||
Communications | 5,038 | 5,542 | 5,808 | 5,371 | 5,179 | ||||||||||||||||||||||||
Goodwill impairment | — | — | — | 2,185,000 | 470,000 | ||||||||||||||||||||||||
Other | 50,180 | 77,242 | 110,772 | 104,774 | 92,594 | ||||||||||||||||||||||||
Total noninterest expense | 577,580 | 595,628 | 579,450 | 2,809,060 | 1,086,906 | ||||||||||||||||||||||||
Net (loss) income before income tax expense | 472,336 | 179,905 | (234,538) | (2,242,354) | (310,673) | ||||||||||||||||||||||||
| Income tax (benefit) expense | 138,519 | 13,664 | (110,101) | (5,069) | 20,032 | ||||||||||||||||||||||||
Net (loss) income | 333,817 | 166,241 | (124,437) | (2,237,285) | (330,705) | ||||||||||||||||||||||||
Less: net income attributable to noncontrolling interests | 673 | 401 | 472 | 501 | 663 | ||||||||||||||||||||||||
Net (loss) income attributable to BBVA USA Bancshares, Inc. | $ | 333,144 | $ | 165,840 | $ | (124,909) | $ | (2,237,786) | $ | (331,368) | |||||||||||||||||||
16