BBVA USA reports fourth quarter 2020 results

HOUSTON, Jan. 29, 2021 /PRNewswire/ -- 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.

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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.

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.  

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.

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 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 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 (benefit) 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 (loss) 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 I 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




































































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 [b]


9,236,590


9,073,380


2


$   9,105,998


$   8,867,440


3


9,332,389


8,831,259


6




















[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



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














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












[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 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 Shareholder's 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.

 

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 Shareholder's 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.

 

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


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

 

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 %

 

BBVA USA BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars 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


$                        -


















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


$                        -


















At or Quarter Ended December 31, 2019


30-59 Days Past
Due


60-89 Days Past
Due


90 Days or More Past
Due


Nonaccrual


Accruing
TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)





Commercial, financial and agricultural

$                        29,273


$                        16,462


$                  6,692


$     268,288


$               1,456


$      24,110,067


$ 24,432,238


$               37,788

Real estate – construction

7,603


2


571


8,041


72


2,012,393


2,028,682


(126)

Commercial real estate –  mortgage

5,325


5,458


6,576


98,077


3,414


13,742,628


13,861,478


(285)

Residential real estate – mortgage

72,571


21,909


4,641


147,337


57,165


13,230,331


13,533,954


107

Equity lines of credit

15,766


6,581


1,567


38,113


-


2,530,653


2,592,680


857

Equity loans

2,856


1,028


195


8,651


23,770


208,468


244,968


137

Credit card

11,275


9,214


22,796


-


-


959,080


1,002,365


16,760

Consumer – direct

33,658


20,703


18,358


6,555


12,438


2,246,430


2,338,142


58,190

Consumer – indirect

83,966


28,430


9,730


31,781


-


3,758,443


3,912,350


27,275

Total loans

$                      262,293


$                      109,787


$               71,126


$     606,843


$             98,315


$      62,798,493


$ 63,946,857


$            140,703

Loans held for sale

$                                  -


$                                  -


$                          -


$                  -


$                       -


$           112,058


$      112,058


$                        -

 

BBVA USA BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars 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

 

BBVA USA BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars 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

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)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/bbva-usa-reports-fourth-quarter-2020-results-301218144.html

SOURCE BBVA USA

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