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HOUSTON, July 30, 2020 /PRNewswire/ -- BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today a net loss of $124 million for the second quarter of 2020 compared to earnings of $160 million in the second quarter of 2019. Included in the second quarter 2020 results is a substantial increase in provision for credit losses, well in excess of net-charge-offs, that reflects the ongoing adverse macroeconomic environment and corresponding forecasts given the COVID-19 pandemic and subsequent impact to certain segments of the loan portfolio.
For the first six months of 2020, the company reported a net loss of $2.4 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, the adjusted net loss1 for the first six months of 2020 was $177 million, further reflecting the decline in interest rates and higher provision expense necessary to reflect the economic and business disruption caused by the pandemic.
"The COVID-19 pandemic certainly represents an unprecedented time in global history but it has not deterred our team at BBVA USA from continuing to meet our customers' needs while also providing support to the communities in which we operate," said Javier Rodríguez Soler, president and CEO of BBVA USA.
"Despite the challenging economic environment, our second quarter results continued to build on the momentum over the past two quarters in terms of customer activity, driven by solid loan growth and robust deposit generation at significantly lower rates. While we continue to navigate the challenges ahead, and work to systematically reopen our branch lobbies while protecting the safety of our employees and customers, we firmly believe this increased activity, coupled with our solid capital and strong liquidity positions, will enable us to continue aiding our customers' during this time while also building long-term value."
Total loans at the end of the second quarter of 2020 were $68.5 billion, up 5 percent (annualized) from $67.7 billion at the end of the first quarter of 2020 and up 8 percent from the $63.4 billion at the end of the second quarter of 2019. The increase in total loans was fueled by an increase in the commercial loan portfolio, primarily as a result of customer draws and small business loans originated under the SBA's PPP. Under the PPP, a key small business component of the CARES Act, BBVA USA funded approximately $3.3 billion in small business loans, processing more than 22,000 applications, providing loans to nearly 3,100 borrowers who did not previously have a relationship with BBVA USA and impacting an estimated 360,000 jobs.
To support and expedite the demand for this program, BBVA USA utilized its digital capabilities to build an on-line app in just three days. As a result, the bank was able to begin funding loans just three days after the program opened.
During the second quarter, approximately $7.7 billion of customer loans were funded, a 121 percent increase from the second quarter a year ago. Excluding the impact of the PPP, newly funded customer loans were 26 percent ahead of the pace set last year. For the first six months of 2020, newly funded loans totaled more than $12.3 billion, up 84 percent compared to the first six months of 2019, and up 35 percent excluding the impact of the PPP.
Deposit generation in the quarter was robust and reflected customers, both commercial and consumer, maintaining higher levels of liquidity given the uncertainty related to the COVID-19 pandemic, reduced spending, and aided somewhat by government stimulus programs/payments. Total deposits ended the quarter at $85.4 billion, up $8.2 billion or 42 percent (annualized) from the first quarter of 2020, and up $12.8 billion or 18 percent compared to the second quarter of 2019. Noninterest bearing deposits totaled $26.0 billion, up $5.6 billion or 109 percent (annualized) on a linked quarter basis, and up $5.3 billion or 26 percent compared to the second quarter of 2019. Growth in interest bearing transaction accounts was similarly robust, ending the quarter at $51.3 billion, up $5.0 billion or 43 percent (annualized) on a linked quarter basis, and up $14.3 billion or 39 percent compared to the second quarter of 2019.
With deposit growth outpacing loan growth, the loan to deposit ratio ended the quarter at 80.2 percent compared to 87.6 percent at the end of the first quarter of 2020 and 87.3 percent at the end of the second quarter of 2019. At the same time, BBVA USA continues to maintain a very strong liquidity position with the LCR at 144 percent, unchanged from first quarter 2020 levels.
Total shareholder's equity at the end of the second quarter of 2020 totaled $11.3 billion compared to $11.4 billion at the end of the first quarter of 2020 and $13.9 billion at the end of the second quarter of 2019. The CET12 ratio ended the second quarter of 2020 at 12.18 percent compared to 11.97 percent at the end of the first quarter of 2020 and 12.57 percent at the end of the second quarter of 2019. The decrease in shareholder's equity from the prior year reflects the non-cash goodwill impairment charge recorded in the first quarter of 2020, which does not impact tangible capital levels and therefore has 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.
While increased business activity in terms of loans and deposits was positive during the quarter, revenue growth was challenged by the impact of the drastic decrease in interest rates, decreased other business activity due to the lockdown and higher provision for credit losses necessary given the ongoing adverse macroeconomic environment and corresponding forecasts as a result of the COVID-19 pandemic.
Total revenue for the second quarter of 2020 was $881 million, down 10 percent (annualized) from first quarter 2020 levels and down 7 percent from second quarter 2019 levels. Net interest income in the quarter totaled $612 million compared to $589 million in the first quarter of 2020 and $660 million in the second quarter of 2019. The percent net interest margin in the second quarter of 2020 was 2.66 percent compared to 2.80 percent in the first quarter of 2020 and 3.24 percent in the second quarter of 2019. The decline in the percent net interest margin reflects the sudden decline in interest rates and subsequent repricing of variable rate loans.
Noninterest income (excluding securities gains) for the quarter totaled $269 million compared to $315 million in the first quarter of 2020 and $284 million in the second quarter of 2019. The decrease in noninterest income was primarily the result of decrease in service charges on deposit accounts driven by a decline in consumer spending activity, which also impacted card and merchant processing fees, as well fee waivers implemented by the bank to offer relief to those customers impacted by the COVID-19 pandemic. The decrease in other income was primarily the result of valuation adjustment to investments held by our small business investment company. At the same time, investment banking and advisory fees, corporate and correspondent investment sales and mortgage banking recorded positive growth both on a linked quarter basis and compared to the year ago quarter.
During the second quarter of 2020, investment securities gains totaled $3 million compared to $19 million in the first quarter of 2020. No investment securities gains were recorded in the second quarter of 2019.
Overall, expenses were well contained in the quarter as total noninterest expense totaled $579 million. On a linked quarter basis (excluding goodwill impairment) noninterest expense declined 29 percent (annualized) and represented a decrease of 3 percent compared to the second quarter of 2019. The decline in noninterest expense was primarily due to a decrease in salaries, benefits and commissions, marketing expenses and lower travel expenses, offset in part by an increase in provisions for unfunded commitments recorded in other noninterest expense. Operating income1 in the quarter totaled $305 million, up 7 percent (annualized) from the first quarter of 2020 and down 12 percent from second quarter 2019 levels.
Provision for credit losses for the quarter was $539 million compared to $357 million in the first quarter of 2020 and $155 million in the second quarter of 2019. The increase in provision expense reflects the decline in forecasted economic conditions and the expected future losses that could result as a result of the ongoing COVID-19 pandemic. While oil prices have recovered from the drastic drop in the first quarter of 2020, demand continues to lag supply during the COVID-19 pandemic. At the end of the second quarter, our energy portfolio totaled $3.0 billion compared to $3.4 billion at the end of the first quarter of 2020.
Nonperforming loans as a percentage of total loans ended the second quarter of 2020 at 1.21 percent, up from the 1.09 percent at the end of the first quarter of 2020 and down from 1.26 percent at the end of the second quarter of 2019. The increase in nonperforming loans on a linked quarter basis was attributable to the commercial loan portfolio, primarily in the energy sector. Provision for loan losses in the quarter totaled $526 million, exceeding net charge-offs by $403 million. Net charge-offs as a percentage of average total loans were 72 basis points in the quarter compared to 69 basis points in the first quarter of 2020 and 90 basis points in the second quarter of 2019.
With the increase in provision for loan losses, the allowance for loan losses as a percentage of total loans at the end of the quarter rose to 2.57 percent compared to 2.00 percent at the end of the first quarter of 2020 and 1.54 percent at the end of the second quarter of 2019. The coverage ratio of nonperforming loans also increased to 211 percent at the end of the quarter compared to 183 percent at the end of the first quarter of 2020 and 123 percent at the end of the second quarter of 2019.
During the quarter, BBVA USA announced that it had received approval to open 15 new branches across Texas, the bank's largest market in its U.S. footprint. The branches, set to open in 2021, underscore the bank's 5-year strategic plan launched in early 2020, which aims to help clients improve their financial health. Adding branches at a time when digital transactions are increasing demonstrates the bank's belief that the branch format naturally facilitates face-to-face relationships between bankers and their customers, building a deep understanding of their financial needs.
The announcement came within a week of BBVA USA launching its new mobile banking app, Mobile 9.0, and expanded transaction detail screen in mobile and online banking, both aimed at leveraging the bank's technology expertise to provide a better experience and more transparency and control for customers.
1 Operating income and adjusted net loss 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 June 30, 2020, are estimated.
For more BBVA news visit, www.bbva.com and the U.S. Newsroom. Additional news updates can be found via Twitter and Instagram.For more financial information about BBVA in the U.S., visit bbvausa.investorroom.com.
About BBVA
BBVA GroupBBVA (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 USAIn 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 StatementsCertain statements in this press release may contain forward-looking statements about BBVA USA Bancshares, Inc. (the "Company") and its industry that involve substantial risks and uncertainties. The use of "we," "our" and similar terms refer to the Company. Statements other than statements of current or historical fact, including statements regarding our future financial condition, results of operations, business plans, liquidity, cash flows, projected costs, and the impact of any laws or regulations applicable to the Company, constitute forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions are intended to identify these forward-looking statements. These forward-looking statements reflect the Company's views regarding future events and financial performance. Such statements are subject to risks, uncertainties, assumptions and other important factors, many of which may be beyond the Company's control, that could cause actual results to differ materially from anticipated results. If the Company's assumptions and estimates are incorrect, or if the Company becomes subject to significant limitations as the result of litigation or regulatory action, then the Company's actual results could vary materially from those expressed or implied in these forward-looking statements. The forward-looking statements are and will be based on the Company's then current views and assumptions regarding future events and speak only as of their dates made. The Company assumes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by securities law or regulation. For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Risk Factors" section of the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on February 28, 2020, as updated by our subsequent SEC filings.
BBVA USA BANCSHARES, INC. | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||
EARNINGS SUMMARY | ||||||||||||||||||
Net interest income | $ 612,017 | $ 659,749 | (7) | $ 1,201,472 | $ 1,342,838 | (11) | ||||||||||||
Noninterest income [a] | 268,877 | 284,281 | (5) | 583,980 | 533,083 | 10 | ||||||||||||
Total revenue [a] | 880,894 | 944,030 | (7) | 1,785,452 | 1,875,921 | (5) | ||||||||||||
Investment securities gain, net | 3,477 | — | NM | 22,616 | 8,958 | 152 | ||||||||||||
Provision for credit losses | 539,459 | 155,018 | 248 | 896,450 | 337,310 | 166 | ||||||||||||
Goodwill impairment | — | — | — | 2,185,000 | — | NM | ||||||||||||
Noninterest expense | 579,450 | 598,314 | (3) | 1,203,510 | 1,180,287 | 2 | ||||||||||||
Pretax (loss) income | (234,538) | 190,698 | (223) | (2,476,892) | 367,282 | (774) | ||||||||||||
Income tax (benefit) expense | (110,101) | 30,512 | (461) | (115,170) | 66,115 | (274) | ||||||||||||
Net (loss) income | $ (124,437) | $ 160,186 | (178) | $ (2,361,722) | $ 301,167 | (884) | ||||||||||||
Adjusted net (loss) income [b] | $ (124,437) | $ 160,186 | (178) | $ (176,722) | $ 301,167 | (159) | ||||||||||||
SELECTED RATIOS | ||||||||||||||||||
Return on average assets | (0.48)% | 0.69 % | (4.74)% | 0.65 % | ||||||||||||||
Return on average assets- adjusted [b] | (0.48) | 0.69 | (0.35) | 0.65 | ||||||||||||||
Return on average tangible equity [b] | (5.45) | 7.34 | (52.34) | 7.00 | ||||||||||||||
Return on average tangible equity- adjusted [b] | (5.45) | 7.34 | (3.92) | 7.00 | ||||||||||||||
Efficiency ratio [b] | 64.95 | 62.50 | 66.54 | 62.04 | ||||||||||||||
Average common equity to average assets | 10.82 | 14.47 | 12.22 | 14.43 | ||||||||||||||
Average loans to average total deposits | 82.89 | 88.13 | 84.66 | 89.40 | ||||||||||||||
Common equity tier I capital (CET1) [c] | 12.18 | 12.57 | 12.18 | 12.57 | ||||||||||||||
Tier I capital ratio [c] | 12.51 | 12.91 | 12.51 | 12.91 | ||||||||||||||
Total capital ratio [c] | 14.66 | 15.08 | 14.66 | 15.08 | ||||||||||||||
Leverage ratio [c] | 8.66 | 9.99 | 8.66 | 9.99 | ||||||||||||||
Average for Three Months | Average for Six Months | Ending Balance | ||||||||||||||||
Ended June 30, | % | Ended June 30, | % | June 30, | % | |||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||
BALANCE SHEET HIGHLIGHTS | ||||||||||||||||||
Total loans | $ 69,256,412 | $ 64,056,915 | 8 | $ 67,065,753 | $ 64,765,717 | 4 | $ 68,487,351 | $ 63,402,090 | 8 | |||||||||
Total debt securities | 14,110,021 | 13,625,034 | 4 | 14,001,688 | 13,696,513 | 2 | 14,473,646 | 13,923,433 | 4 | |||||||||
Earning assets | 94,247,127 | 83,152,459 | 13 | 90,375,817 | 82,829,544 | 9 | 95,504,447 | 82,741,439 | 15 | |||||||||
Total assets | 104,204,062 | 93,452,839 | 12 | 100,280,087 | 93,220,648 | 8 | 102,267,616 | 92,184,045 | 11 | |||||||||
Noninterest bearing demand deposits | 24,225,740 | 20,286,244 | 19 | 22,259,622 | 20,234,941 | 10 | 25,978,354 | 20,646,209 | 26 | |||||||||
Interest bearing transaction accounts | 49,896,129 | 36,948,180 | 35 | 46,786,454 | 36,429,106 | 28 | 51,304,239 | 36,967,442 | 39 | |||||||||
Total transaction accounts | 74,121,869 | 57,234,424 | 30 | 69,046,076 | 56,664,047 | 22 | 77,282,593 | 57,613,651 | 34 | |||||||||
Total deposits | 83,547,718 | 72,687,054 | 15 | 79,214,772 | 72,446,783 | 9 | 85,426,414 | 72,588,810 | 18 | |||||||||
Total shareholder's equity | 11,533,007 | 13,782,011 | (16) | 12,516,811 | 13,711,724 | (9) | 11,270,789 | 13,870,723 | (19) | |||||||||
Total shareholder's equity - tangible [b] | 9,175,875 | 8,750,882 | 5 | 9,074,873 | 8,678,376 | 5 | 8,913,446 | 8,845,449 | 1 | |||||||||
[a] Excludes net gain on sales of investment securities. | ||||||||||||||||||
[b] Non-GAAP financial measure that we believe aids in understanding certain areas of our performance. The calculation of this measure is included on the page titled Non-GAAP Reconciliation. | ||||||||||||||||||
[c] Current period regulatory capital ratios are estimated. | ||||||||||||||||||
NM = Not meaningful | ||||||||||||||||||
BBVA USA BANCSHARES, INC. | ||||||||||
(Unaudited) | ||||||||||
(Dollars in Thousands) | ||||||||||
2020 | 2019 | |||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||
NONPERFORMING ASSETS | ||||||||||
Nonaccrual loans [a] | $ 764,744 | $ 676,716 | $ 606,843 | $ 653,242 | $ 732,696 | |||||
Loans 90 days or more past due [b] | 66,163 | 61,774 | 71,126 | 67,869 | 64,337 | |||||
TDRs 90 days or more past due | 423 | 335 | 414 | 588 | 304 | |||||
Total nonperforming loans [a] | 831,330 | 738,825 | 678,383 | 721,699 | 797,337 | |||||
Foreclosed real estate | 14,871 | 20,642 | 20,833 | 17,381 | 13,752 | |||||
Other repossessed assets | 8,599 | 13,338 | 10,930 | 17,584 | 13,040 | |||||
Total nonperforming assets | $ 854,800 | $ 772,805 | $ 710,146 | $ 756,664 | $ 824,129 | |||||
TDRs accruing and past due less than 90 days | $ 95,788 | $ 97,404 | $ 97,901 | $ 97,218 | $ 112,383 | |||||
Total nonperforming loans as a % of loans | 1.21 % | 1.09 % | 1.06 % | 1.14 % | 1.26 % | |||||
Total nonperforming assets as a % of total loans, foreclosed real estate, and other repossessed assets | 1.25 | 1.14 | 1.11 | 1.19 | 1.30 | |||||
Three Months Ended | ||||||||||
2020 | 2019 | |||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | ||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||
Balance at beginning of period | $ 1,351,072 | $ 920,993 | $ 942,191 | $ 977,660 | $ 966,022 | |||||
Adoption of ASC 326 | — | 184,931 | — | — | — | |||||
Net charge-offs (NCO) | 123,054 | 111,798 | 140,703 | 176,098 | 143,380 | |||||
Provision for loan losses | 526,334 | 356,946 | 119,505 | 140,629 | 155,018 | |||||
Balance at end of period | $ 1,754,352 | $ 1,351,072 | $ 920,993 | $ 942,191 | $ 977,660 | |||||
Allowance for loan losses as a % of total loans | 2.57 % | 2.00 % | 1.44 % | 1.49 % | 1.54 % | |||||
Allowance for loan losses as a % of nonperforming loans [c] | 211.03 | 182.87 | 135.76 | 130.55 | 122.62 | |||||
Allowance for loan losses as a % of nonperforming assets [c] | 205.24 | 174.83 | 129.69 | 124.52 | 118.63 | |||||
Annualized as a % of average loans: | ||||||||||
NCO - QTD | 0.72 | 0.69 | 0.87 | 1.10 | 0.90 | |||||
NCO - YTD | 0.71 | 0.69 | 0.88 | 0.88 | 0.77 | |||||
[a] Includes loans held for sale. | ||||||||||
[b] Excludes loans classified as troubled debt restructuring (TDRs). | ||||||||||
[c] Includes loans held for sale that are on nonaccrual status. | ||||||||||
BBVA USA BANCSHARES, INC. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in Thousands) | |||||||||||
Three Months Ended June 30, | |||||||||||
2020 | 2019 | ||||||||||
Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | ||||||
YIELD/RATE ANALYSIS | |||||||||||
(Taxable Equivalent Basis) | |||||||||||
Assets | |||||||||||
Earning assets: | |||||||||||
Loans | $ 69,256,412 | $ 680,157 | 3.95 % | $ 64,056,915 | $ 799,680 | 5.01 % | |||||
Debt securities available for sale [a] | 5,780,912 | 18,805 | 1.31 | 8,983,280 | 45,125 | 2.01 | |||||
Debt securities held to maturity | 8,207,298 | 40,635 | 1.99 | 4,744,584 | 34,458 | 2.91 | |||||
Other earning assets [b] | 10,880,694 | 15,173 | 0.56 | 5,470,510 | 36,424 | 2.67 | |||||
Total earning assets [a] | 94,125,316 | 754,770 | 3.23 | 83,255,289 | 915,687 | 4.41 | |||||
Allowance for credit losses | (1,375,912) | (974,772) | |||||||||
Unrealized gain (loss) on debt securities available for sale | 121,811 | (102,830) | |||||||||
Other assets | 11,332,847 | 11,275,152 | |||||||||
Total assets | $ 104,204,062 | $ 93,452,839 | |||||||||
Liabilities and Shareholder's Equity | |||||||||||
Interest bearing liabilities: | |||||||||||
Interest bearing demand deposits | $ 14,153,639 | $ 13,430 | 0.38 | $ 9,304,889 | $ 26,536 | 1.14 | |||||
Savings and money market accounts | 35,742,490 | 43,943 | 0.49 | 27,643,291 | 88,203 | 1.28 | |||||
Certificates and other time deposits | 9,425,849 | 39,906 | 1.70 | 15,452,630 | 87,739 | 2.28 | |||||
Total interest bearing deposits | 59,321,978 | 97,279 | 0.66 | 52,400,810 | 202,478 | 1.55 | |||||
FHLB and other borrowings | 3,567,010 | 21,936 | 2.47 | 4,026,581 | 34,300 | 3.42 | |||||
Federal funds purchased and securities sold under agreement to repurchase [b] | 1,192,030 | 12,274 | 4.14 | 466,926 | 6,002 | 5.16 | |||||
Other short-term borrowings | 12,588 | 39 | 1.25 | 7,402 | 100 | 5.42 | |||||
Total interest bearing liabilities | 64,093,606 | 131,528 | 0.83 | 56,901,719 | 242,880 | 1.71 | |||||
Noninterest bearing deposits | 24,225,740 | 20,286,244 | |||||||||
Other noninterest bearing liabilities | 4,351,709 | 2,482,865 | |||||||||
Total liabilities | 92,671,055 | 79,670,828 | |||||||||
Shareholder's equity | 11,533,007 | 13,782,011 | |||||||||
Total liabilities and shareholder's equity | $ 104,204,062 | $ 93,452,839 | |||||||||
Net interest income/ net interest spread | 623,242 | 2.40 % | 672,807 | 2.70 % | |||||||
Net yield on earning assets | 2.66 % | 3.24 % | |||||||||
Total taxable equivalent adjustment | 11,225 | 13,058 | |||||||||
Net interest income | $ 612,017 | $ 659,749 | |||||||||
[a] Excludes adjustment for market valuation. | |||||||||||
[b] Yield/rate reflects impact of balance sheet offsetting. |
BBVA USA BANCSHARES, INC. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in Thousands) | ||||||||||||
Six Months Ended June 30, | ||||||||||||
2020 | 2019 | |||||||||||
Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |||||||
YIELD/RATE ANALYSIS | ||||||||||||
(Taxable Equivalent Basis) | ||||||||||||
Assets | ||||||||||||
Earning assets: | ||||||||||||
Loans | $ 67,065,753 | $ 1,406,689 | 4.22 % | $ 64,765,717 | $ 1,612,095 | 5.02 % | ||||||
Debt securities available for sale [a] | 6,225,236 | 17,313 | 0.56 | 9,450,246 | 98,647 | 2.11 | ||||||
Debt securities held to maturity | 7,699,732 | 82,715 | 2.16 | 4,391,400 | 65,223 | 3.00 | ||||||
Other earning assets [b] | 9,308,376 | 58,470 | 1.26 | 4,367,314 | 59,931 | 2.77 | ||||||
Total earning assets [a] | 90,299,097 | 1,565,187 | 3.49 | 82,974,677 | 1,835,896 | 4.46 | ||||||
Allowance for credit losses | (1,220,331) | (942,398) | ||||||||||
Unrealized gain (loss) on debt securities available for sale | 76,720 | (145,133) | ||||||||||
Other assets | 11,124,601 | 11,333,502 | ||||||||||
Total assets | $ 100,280,087 | $ 93,220,648 | ||||||||||
Liabilities and Shareholder's Equity | ||||||||||||
Interest bearing liabilities: | ||||||||||||
Interest bearing demand deposits | $ 12,926,063 | 37,981 | 0.59 | $ 8,997,002 | 46,882 | 1.05 | ||||||
Savings and money market accounts | 33,860,391 | 128,735 | 0.76 | 27,432,104 | 165,112 | 1.21 | ||||||
Certificates and other time deposits | 10,168,696 | 95,305 | 1.88 | 15,782,736 | 172,838 | 2.21 | ||||||
Total interest bearing deposits | 56,955,150 | 262,021 | 0.93 | 52,211,842 | 384,832 | 1.49 | ||||||
FHLB and other borrowings | 3,651,605 | 43,112 | 2.37 | 4,157,923 | 71,926 | 3.49 | ||||||
Federal funds purchased and securities sold under agreement to repurchase [b] | 1,321,766 | 34,932 | 5.31 | 439,577 | 9,749 | 4.47 | ||||||
Other short-term borrowings | 16,312 | 391 | 4.82 | 17,702 | 296 | 3.37 | ||||||
Total interest bearing liabilities | 61,944,833 | 340,456 | 1.11 | 56,827,044 | 466,803 | 1.66 | ||||||
Noninterest bearing deposits | 22,259,622 | 20,234,941 | ||||||||||
Other noninterest bearing liabilities | 3,558,821 | 2,446,939 | ||||||||||
Total liabilities | 87,763,276 | 79,508,924 | ||||||||||
Shareholder's equity | 12,516,811 | 13,711,724 | ||||||||||
Total liabilities and shareholder's equity | $ 100,280,087 | $ 93,220,648 | ||||||||||
Net interest income/ net interest spread | 1,224,731 | 2.38 % | 1,369,093 | 2.80 % | ||||||||
Net yield on earning assets | 2.73 % | 3.33 % | ||||||||||
Total taxable equivalent adjustment | 23,259 | 26,255 | ||||||||||
Net interest income | $ 1,201,472 | $ 1,342,838 | ||||||||||
[a] Excludes adjustment for market valuation. | ||||||||||||
[b] Yield/rate reflects impact of balance sheet offsetting. |
BBVA USA BANCSHARES, INC. | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Six Months | Three Months Ended | |||||||||||||||
Ended June 30, | % | 2020 | 2019 | |||||||||||||
2020 | 2019 | Change | June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||
NONINTEREST INCOME | ||||||||||||||||
Service charges on deposit accounts | $ 105,764 | $ 120,639 | (12) | $ 44,233 | $ 61,531 | $ 64,585 | $ 65,143 | $ 61,731 | ||||||||
Card and merchant processing fees | 93,507 | 96,357 | (3) | 43,416 | 50,091 | 50,805 | 50,385 | 50,355 | ||||||||
Investment services sales fees | 59,378 | 58,029 | 2 | 24,971 | 34,407 | 28,130 | 29,287 | 31,333 | ||||||||
Investment banking and advisory fees | 71,792 | 39,615 | 81 | 45,061 | 26,731 | 15,720 | 28,324 | 20,758 | ||||||||
Money transfer income | 50,009 | 47,253 | 6 | 25,461 | 24,548 | 25,871 | 26,020 | 25,272 | ||||||||
Corporate and correspondent investment sales | 29,572 | 12,499 | 137 | 18,855 | 10,717 | 14,263 | 11,799 | 5,607 | ||||||||
Asset management fees | 23,464 | 22,634 | 4 | 11,560 | 11,904 | 11,532 | 11,405 | 11,867 | ||||||||
Mortgage banking | 41,319 | 10,807 | 282 | 23,868 | 17,451 | 9,048 | 8,204 | 5,870 | ||||||||
Bank owned life insurance | 9,719 | 9,387 | 4 | 5,094 | 4,625 | 4,584 | 3,508 | 4,803 | ||||||||
Other | 99,456 | 115,863 | (14) | 26,358 | 73,098 | 48,046 | 66,241 | 66,685 | ||||||||
583,980 | 533,083 | 10 | 268,877 | 315,103 | 272,584 | 300,316 | 284,281 | |||||||||
Investment securities gains, net | 22,616 | 8,958 | 152 | 3,477 | 19,139 | — | 21,003 | — | ||||||||
Total noninterest income | $ 606,596 | $ 542,041 | 12 | $ 272,354 | $ 334,242 | $ 272,584 | $ 321,319 | $ 284,281 | ||||||||
NONINTEREST EXPENSE | ||||||||||||||||
Salaries, benefits and commissions | $ 561,833 | $ 589,019 | (5) | $ 251,697 | $ 310,136 | $ 297,823 | $ 295,092 | $ 296,303 | ||||||||
Equipment | 129,433 | 128,032 | 1 | 64,752 | 64,681 | 64,826 | 63,908 | 62,638 | ||||||||
Professional services | 148,320 | 137,680 | 8 | 78,100 | 70,220 | 82,343 | 72,903 | 73,784 | ||||||||
Net occupancy | 81,428 | 81,057 | — | 41,585 | 39,843 | 43,302 | 42,241 | 40,116 | ||||||||
Money transfer expense | 35,094 | 32,268 | 9 | 17,958 | 17,136 | 17,951 | 18,005 | 17,290 | ||||||||
Marketing | 20,677 | 26,805 | (23) | 8,778 | 11,899 | 12,888 | 15,471 | 16,412 | ||||||||
Communications | 11,179 | 11,134 | — | 5,808 | 5,371 | 5,179 | 5,469 | 5,733 | ||||||||
Goodwill impairment | 2,185,000 | — | NM | — | 2,185,000 | 470,000 | — | — | ||||||||
Other | 215,546 | 174,292 | 24 | 110,772 | 104,774 | 92,594 | 85,798 | 86,038 | ||||||||
Total noninterest expense | $3,388,510 | $1,180,287 | 187 | $ 579,450 | $ 2,809,060 | $ 1,086,906 | $ 598,887 | $ 598,314 | ||||||||
NM = Not meaningful | ||||||||||||||||
BBVA USA BANCSHARES, INC. | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||
Six Months | Three Months Ended | ||||||||||||||
Ended June 30, | 2020 | 2019 | |||||||||||||
2020 | 2019 | June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
Computation of Operating Income: | |||||||||||||||
Net interest income (GAAP) | $ 1,201,472 | $ 1,342,838 | $ 612,017 | $ 589,455 | $ 623,154 | $ 641,041 | $ 659,749 | ||||||||
Plus: noninterest income (GAAP) | 606,596 | 542,041 | 272,354 | 334,242 | 272,584 | 321,319 | 284,281 | ||||||||
Less: noninterest expense (GAAP) | 3,388,510 | 1,180,287 | 579,450 | 2,809,060 | 1,086,906 | 598,887 | 598,314 | ||||||||
Plus: goodwill impairment (GAAP) | 2,185,000 | — | — | 2,185,000 | 470,000 | — | — | ||||||||
Operating income (non-GAAP) | $ 604,558 | $ 704,592 | $ 304,921 | $ 299,637 | $ 278,832 | $ 363,473 | $ 345,716 | ||||||||
Computation of Tangible Shareholder's Equity: | |||||||||||||||
Total shareholder's equity | $ 11,270,789 | $ 13,870,723 | $ 11,270,789 | $11,358,354 | $ 13,386,589 | $ 14,101,618 | $ 13,870,723 | ||||||||
Less: goodwill and other intangibles (GAAP) | 2,357,343 | 5,025,274 | 2,357,343 | 2,359,540 | 4,555,330 | 5,020,573 | 5,025,274 | ||||||||
Tangible shareholder's equity (non-GAAP) | $ 8,913,446 | $ 8,845,449 | $ 8,913,446 | $ 8,998,814 | $ 8,831,259 | $ 9,081,045 | $ 8,845,449 | ||||||||
Computation of Average Tangible Equity: | |||||||||||||||
Total stockholder's equity (average) (GAAP) | $ 12,516,811 | $ 13,711,724 | $ 11,533,007 | $13,500,615 | $ 14,090,315 | $ 14,056,939 | $ 13,782,011 | ||||||||
Less: goodwill and other intangibles (average) (GAAP) | 3,441,938 | 5,033,348 | 2,357,132 | 4,526,744 | 5,016,935 | 5,023,480 | 5,031,129 | ||||||||
Average tangible equity (non-GAAP) [B] | $ 9,074,873 | $ 8,678,376 | $ 9,175,875 | $ 8,973,871 | $ 9,073,380 | $ 9,033,459 | $ 8,750,882 | ||||||||
Net income (loss) (GAAP) [A] | $ (2,361,722) | $ 301,167 | $ (124,437) | $ (2,237,285) | $ (330,705) | $ 182,945 | $ 160,186 | ||||||||
Return on average tangible equity (non-GAAP) ([A]/[B], annualized) | (52.34)% | 7.00 % | (5.45)% | (100.27)% | (14.46)% | 8.03 % | 7.34 % | ||||||||
Computation of Adjusted Net Income, Return on Average Assets and Return on Average Tangible Equity: | |||||||||||||||
Net income (loss) (GAAP) | $ (2,361,722) | $ 301,167 | $ (124,437) | $ (2,237,285) | $ (330,705) | $ 182,945 | $ 160,186 | ||||||||
Plus: goodwill impairment (GAAP) | 2,185,000 | — | — | 2,185,000 | 470,000 | — | — | ||||||||
Adjusted net income (non-GAAP) [C] | $ (176,722) | $ 301,167 | $ (124,437) | $ (52,285) | $ 139,295 | $ 182,945 | $ 160,186 | ||||||||
Average assets (GAAP) [D] | $ 100,280,087 | $ 93,220,648 | $ 104,204,062 | $96,356,113 | $ 95,754,954 | $ 94,942,456 | $ 93,452,839 | ||||||||
Return on average assets - adjusted (non-GAAP) ([C]/[D], annualized) | (0.35)% | 0.65 % | (0.48)% | (0.22)% | 0.58 % | 0.76 % | 0.69 % | ||||||||
Return on average tangible equity - adjusted (non-GAAP) ([C]/[B], annualized) | (3.92) | 7.00 | (5.45) | (2.34) | 6.09 | 8.03 | 7.34 | ||||||||
Computation of Efficiency Ratio: | |||||||||||||||
Noninterest expense (GAAP) | $ 3,388,510 | $ 1,180,287 | $ 579,450 | $ 2,809,060 | $ 1,086,906 | $ 598,887 | $ 598,314 | ||||||||
Less: securities and goodwill impairment (GAAP) | 2,185,000 | 113 | — | 2,185,000 | 470,102 | — | 113 | ||||||||
Total expense (GAAP) [E] | $ 1,203,510 | $ 1,180,174 | $ 579,450 | $ 624,060 | $ 616,804 | $ 598,887 | $ 598,201 | ||||||||
Net interest income, taxable equivalent basis | $ 1,224,731 | $ 1,369,093 | $ 623,242 | $ 601,489 | $ 635,552 | $ 653,926 | $ 672,807 | ||||||||
Plus: noninterest income (GAAP) | 606,596 | 542,041 | 272,354 | 334,242 | 272,584 | 321,319 | 284,281 | ||||||||
Less: investment securities gains, net (GAAP) | 22,616 | 8,958 | 3,477 | 19,139 | — | 21,003 | — | ||||||||
Total revenue [F] | $ 1,808,711 | $ 1,902,176 | $ 892,119 | $ 916,592 | $ 908,136 | $ 954,242 | $ 957,088 | ||||||||
Efficiency ratio (non-GAAP) ([E]/[F]) | 66.54 % | 62.04 % | 64.95 % | 68.08 % | 67.92 % | 62.76 % | 62.50 % | ||||||||
BBVA USA BANCSHARES, INC. | |||||||||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||
At or Quarter Ended June 30, 2020 | |||||||||||||||
30-59 Days PastDue | 60-89 Days PastDue | 90 Days orMore Past Due | Nonaccrual | AccruingTDRs | Not Past Due,Nonaccrual, or TDR | 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 PastDue | 60-89 Days PastDue | 90 Days orMore Past Due | Nonaccrual | Accruing TDRs | Not Past Due orImpaired | 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 | $ — | |||||||
BBVA USA BANCSHARES, INC. | |||||||||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||
At or Quarter Ended December 31, 2019 | |||||||||||||||
30-59 Days Past Due | 60-89 Days PastDue | 90 Days orMore Past Due | Nonaccrual | AccruingTDRs | Not Past Due orImpaired | 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 | $ — | |||||||
At or Quarter Ended September 30, 2019 | |||||||||||||||
30-59 Days PastDue | 60-89 Days PastDue | 90 Days orMore Past Due | Nonaccrual | Accruing TDRs | Not Past Due orImpaired | 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 | $ — | |||||||
BBVA USA BANCSHARES, INC. | |||||||||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited) | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||
At or Quarter Ended June 30, 2019 | |||||||||||||||
30-59 Days PastDue | 60-89 Days PastDue | 90 Days orMore Past Due | Nonaccrual | AccruingTDRs | Not Past Due orImpaired | Total | Net Charge Offs(Recoveries) | ||||||||
Commercial, financial and agricultural | $ 49,037 | $ 8,246 | $ 12,785 | $ 389,779 | $ 19,150 | $ 24,373,659 | $ 24,852,656 | $ 45,916 | |||||||
Real estate – construction | 3,159 | 114 | 532 | 2,097 | 107 | 1,976,637 | 1,982,646 | (477) | |||||||
Commercial real estate – mortgage | 4,716 | 3,283 | 360 | 107,137 | 3,687 | 12,850,522 | 12,969,705 | 61 | |||||||
Residential real estate – mortgage | 74,767 | 25,226 | 6,681 | 154,247 | 59,130 | 13,084,079 | 13,404,130 | 1,523 | |||||||
Equity lines of credit | 12,604 | 7,972 | 3,394 | 35,356 | — | 2,613,504 | 2,672,830 | 371 | |||||||
Equity loans | 2,549 | 788 | 224 | 9,361 | 25,361 | 237,495 | 275,778 | 194 | |||||||
Credit card | 11,119 | 7,007 | 18,762 | — | — | 841,213 | 878,101 | 16,436 | |||||||
Consumer – direct | 36,657 | 22,986 | 14,786 | 6,926 | 5,252 | 2,390,021 | 2,476,628 | 57,142 | |||||||
Consumer – indirect | 77,523 | 21,908 | 6,813 | 27,793 | — | 3,665,042 | 3,799,079 | 22,214 | |||||||
Total loans | $ 272,131 | $ 97,530 | $ 64,337 | $ 732,696 | $ 112,687 | $ 62,032,172 | $ 63,311,553 | $ 143,380 | |||||||
Loans held for sale | $ — | $ — | $ — | $ — | $ — | $ 90,537 | $ 90,537 | $ — | |||||||
BBVA USA BANCSHARES, INC. | |||||||||
BALANCE SHEET (Unaudited) | |||||||||
(Dollars in Thousands) | |||||||||
2020 | 2019 | ||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||
Assets: | |||||||||
Cash and due from banks | $ 1,019,127 | $ 1,033,733 | $ 1,149,734 | $ 1,117,458 | $ 1,027,400 | ||||
Federal funds sold, securities purchased under agreements to resell and interest bearing deposits | 11,738,063 | 4,479,535 | 5,788,964 | 5,356,141 | 4,773,761 | ||||
Cash and cash equivalents | 12,757,190 | 5,513,268 | 6,938,698 | 6,473,599 | 5,801,161 | ||||
Trading account assets | 1,016,966 | 1,009,130 | 473,976 | 564,000 | 440,098 | ||||
Debt securities available for sale | 5,765,192 | 6,344,816 | 7,235,305 | 7,612,590 | 9,010,950 | ||||
Debt securities held to maturity, net | 8,693,437 | 7,876,266 | 6,797,046 | 6,334,634 | 4,912,483 | ||||
Loans held for sale | 245,851 | 117,752 | 112,058 | 134,314 | 90,537 | ||||
Loans | 68,241,500 | 67,539,414 | 63,946,857 | 63,320,571 | 63,311,553 | ||||
Allowance for loan losses | (1,754,352) | (1,351,072) | (920,993) | (942,191) | (977,660) | ||||
Net loans | 66,487,148 | 66,188,342 | 63,025,864 | 62,378,380 | 62,333,893 | ||||
Premises and equipment, net | 1,070,358 | 1,068,741 | 1,087,698 | 1,085,635 | 1,105,819 | ||||
Bank owned life insurance | 754,908 | 754,409 | 750,224 | 746,819 | 745,130 | ||||
Goodwill | 2,328,296 | 2,328,296 | 4,513,296 | 4,983,296 | 4,983,296 | ||||
Other assets | 3,148,270 | 3,124,539 | 2,669,182 | 2,600,820 | 2,760,678 | ||||
Total assets | $ 102,267,616 | $ 94,325,559 | $ 93,603,347 | $ 92,914,087 | $ 92,184,045 | ||||
Liabilities: | |||||||||
Deposits: | |||||||||
Noninterest bearing | $ 25,978,354 | $ 20,418,504 | $ 21,850,216 | $ 21,019,303 | $ 20,646,209 | ||||
Interest bearing | 59,448,060 | 56,816,003 | 53,135,067 | 52,550,139 | 51,942,601 | ||||
Total deposits | 85,426,414 | 77,234,507 | 74,985,283 | 73,569,442 | 72,588,810 | ||||
FHLB and other borrowings | 3,571,933 | 3,790,137 | 3,690,044 | 3,709,949 | 4,052,969 | ||||
Federal funds purchased and securities sold under agreements to repurchase | 249,481 | 409,784 | 173,028 | 117,421 | 191,739 | ||||
Other short-term borrowings | 1,619 | — | — | 45 | 2,067 | ||||
Accrued expenses and other liabilities | 1,747,380 | 1,532,777 | 1,368,403 | 1,415,612 | 1,477,737 | ||||
Total liabilities | 90,996,827 | 82,967,205 | 80,216,758 | 78,812,469 | 78,313,322 | ||||
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 | 14,035,607 | 14,039,572 | 14,043,727 | 14,359,966 | 14,364,527 | ||||
Retained deficit | (3,430,135) | (3,305,226) | (917,227) | (585,859) | (768,290) | ||||
Accumulated other comprehensive income (loss) | 404,165 | 362,339 | (1,072) | 66,009 | 13,508 | ||||
Total BBVA USA Bancshares, Inc. shareholder's equity | 11,241,342 | 11,328,390 | 13,357,133 | 14,071,821 | 13,841,450 | ||||
Noncontrolling interests | 29,447 | 29,964 | 29,456 | 29,797 | 29,273 | ||||
Total shareholder's equity | 11,270,789 | 11,358,354 | 13,386,589 | 14,101,618 | 13,870,723 | ||||
Total liabilities and shareholder's equity | $ 102,267,616 | $ 94,325,559 | $ 93,603,347 | $ 92,914,087 | $ 92,184,045 | ||||
BBVA USA BANCSHARES, INC. | |||||||||
INCOME STATEMENT (Unaudited) | |||||||||
(Dollars in Thousands) | |||||||||
Three Months Ended | |||||||||
2020 | 2019 | ||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||
Interest income: | |||||||||
Interest and fees on loans | $ 669,767 | $ 715,476 | $ 738,140 | $ 771,245 | $ 787,767 | ||||
Interest on debt securities available for sale | 18,805 | (1,492) | 33,333 | 36,051 | 45,125 | ||||
Interest on debt securities held to maturity | 39,800 | 41,102 | 43,097 | 38,893 | 33,313 | ||||
Interest on trading account assets | 1,157 | 1,122 | 1,326 | 487 | 601 | ||||
Interest and dividends on other earning assets | 14,016 | 42,175 | 39,915 | 46,528 | 35,823 | ||||
Total interest income | 743,545 | 798,383 | 855,811 | 893,204 | 902,629 | ||||
Interest expense: | |||||||||
Interest on deposits | 97,279 | 164,742 | 189,345 | 203,979 | 202,478 | ||||
Interest on FHLB and other borrowings | 21,936 | 21,176 | 31,263 | 32,975 | 34,300 | ||||
Interest on federal funds purchased and securities sold under agreements to repurchase | 12,274 | 22,658 | 11,850 | 15,137 | 6,002 | ||||
Interest on other short-term borrowings | 39 | 352 | 199 | 72 | 100 | ||||
Total interest expense | 131,528 | 208,928 | 232,657 | 252,163 | 242,880 | ||||
Net interest income | 612,017 | 589,455 | 623,154 | 641,041 | 659,749 | ||||
Provision for credit losses | 539,459 | 356,991 | 119,505 | 140,629 | 155,018 | ||||
Net interest income after provision for credit losses | 72,558 | 232,464 | 503,649 | 500,412 | 504,731 | ||||
Noninterest income: | |||||||||
Service charges on deposit accounts | 44,233 | 61,531 | 64,585 | 65,143 | 61,731 | ||||
Card and merchant processing fees | 43,416 | 50,091 | 50,805 | 50,385 | 50,355 | ||||
Investment services sales fees | 24,971 | 34,407 | 28,130 | 29,287 | 31,333 | ||||
Investment banking and advisory fees | 45,061 | 26,731 | 15,720 | 28,324 | 20,758 | ||||
Money transfer income | 25,461 | 24,548 | 25,871 | 26,020 | 25,272 | ||||
Asset management fees | 11,560 | 11,904 | 11,532 | 11,405 | 11,867 | ||||
Corporate and correspondent investment sales | 18,855 | 10,717 | 14,263 | 11,799 | 5,607 | ||||
Mortgage banking | 23,868 | 17,451 | 9,048 | 8,204 | 5,870 | ||||
Bank owned life insurance | 5,094 | 4,625 | 4,584 | 3,508 | 4,803 | ||||
Investment securities gains, net | 3,477 | 19,139 | — | 21,003 | — | ||||
Other | 26,358 | 73,098 | 48,046 | 66,241 | 66,685 | ||||
Total noninterest income | 272,354 | 334,242 | 272,584 | 321,319 | 284,281 | ||||
Noninterest expense: | |||||||||
Salaries, benefits and commissions | 251,697 | 310,136 | 297,823 | 295,092 | 296,303 | ||||
Equipment | 64,752 | 64,681 | 64,826 | 63,908 | 62,638 | ||||
Professional services | 78,100 | 70,220 | 82,343 | 72,903 | 73,784 | ||||
Net occupancy | 41,585 | 39,843 | 43,302 | 42,241 | 40,116 | ||||
Money transfer expense | 17,958 | 17,136 | 17,951 | 18,005 | 17,290 | ||||
Marketing | 8,778 | 11,899 | 12,888 | 15,471 | 16,412 | ||||
Communications | 5,808 | 5,371 | 5,179 | 5,469 | 5,733 | ||||
Goodwill impairment | — | 2,185,000 | 470,000 | — | — | ||||
Other | 110,772 | 104,774 | 92,594 | 85,798 | 86,038 | ||||
Total noninterest expense | 579,450 | 2,809,060 | 1,086,906 | 598,887 | 598,314 | ||||
Net (loss) income before income tax expense | (234,538) | (2,242,354) | (310,673) | 222,844 | 190,698 | ||||
Income tax (benefit) expense | (110,101) | (5,069) | 20,032 | 39,899 | 30,512 | ||||
Net (loss) income | (124,437) | (2,237,285) | (330,705) | 182,945 | 160,186 | ||||
Less: net income attributable to noncontrolling interests | 472 | 501 | 663 | 514 | 599 | ||||
Net (loss) income attributable to BBVA USA Bancshares, Inc. | $ (124,909) | $ (2,237,786) | $ (331,368) | $ 182,431 | $ 159,587 | ||||
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SOURCE BBVA USA
