BBVA Compass Bancshares Inc. reports earnings for full-year 2013 of $418 million

- Total loans end year at $50.8 billion, up 12 percent from prior year levels

- Total deposits increase to $54.4 billion; led by a 7 percent increase in noninterest bearing deposits

- Sound risk profile further strengthened; nonperforming asset ratio drops to 1.09 percent from 2.07 percent, net charge-off ratio declines to 0.44 percent

- Capital position remains strong; regulatory capital ratios continue to significantly exceed "well-capitalized" guidelines

News provided by

BBVA Compass

Feb 04, 2014, 11:03 ET

HOUSTON, Feb. 4, 2014 /PRNewswire/ -- BBVA Compass Bancshares Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income attributable to shareholder for full-year 2013 of $418 million compared to $477 million for 2012. Return on average assets and return on average tangible equity for full-year 2013 were 0.60 percent and 6.77 percent, respectively.

"Despite the headwinds caused by the prolonged low interest-rate environment, BBVA Compass delivered robust balance sheet growth," said Manolo Sánchez, chairman and CEO of BBVA Compass. "Total loans increased 12 percent as we originated more than $16.4 billion of new loans for our customers. Deposit growth was also solid, led by a 7 percent increase in noninterest bearing deposits."

Sánchez said the growth did not come at the expense of maintaining a sound risk profile, as key credit quality metrics showed marked improvement. The nonperforming asset ratio dropped to 1.09 percent from 2.07 percent at year-end 2012. At the same time, net charge-offs as a percentage of average loans decreased to 0.44 percent compared to 0.63 percent in 2012.

"Equally important, BBVA Compass achieved these results while significantly upgrading our technology platform and digital distribution channels," Sánchez said. "As economic conditions continue to improve, we believe BBVA Compass is well-positioned given our ability to provide our customers with real-time banking, our capacity to quickly respond with products designed to meet the evolving needs of our customers and our complete line of mobile banking apps."

On November 22, 2013, BBVA Compass filed a Registration Statement on Form 10 with the United States Securities and Exchange Commission (SEC). An amended Form 10 was subsequently filed with the SEC on January 21, 2014. The Registration Statement on Form 10, as amended, is available through the public website of the SEC at www.sec.gov. Additional financial information on BBVA Compass can be found on our website at www.bbvacompass.com, under the About BBVA Compass tab, by clicking on Investor Relations.

About BBVA Group
BBVA Compass Bancshares Inc., is a wholly owned subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a customer-centric global financial services group founded in 1857. The Group has a solid position in Spain, is the largest financial institution in Mexico and has leading franchises in South America and the Sunbelt region of the United States. Its diversified business is geared toward high-growth markets and relies on technology as a key sustainable competitive advantage. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies the best practices. The Group is present in the main sustainability indexes. More information about the BBVA Group can be found at www.bbva.com.

About BBVA Compass
BBVA Compass Bancshares Inc. is a Sunbelt-based bank holding company whose lead subsidiary, BBVA Compass, operates 685 branches, including 350 in Texas, 90 in Alabama, 78 in Arizona, 64 in California, 45 in Florida, 38 in Colorado and 20 in New Mexico. BBVA Compass 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 (5th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration and was recently awarded the 2013 Celent Model Bank Award for its new core banking platform. Additional information about BBVA Compass can be found at www.bbvacompass.com.

Forward-Looking Statements
Certain statements in this press release may contain forward-looking statements about the Company and its industry that involve substantial risks and uncertainties. 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. For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Risk Factors" section of the Company's Registration Statement on Form 10.

BBVA COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)


	Three Months					Year
	Ended December 31				%	Ended December 31				%
	2013		2012		Change	2013		2012		Change
EARNINGS SUMMARY
Net interest income	$	507,509	$	588,429	(14)	$	2,042,681	$	2,229,982	(8)
Noninterest income [a]		191,074		198,717	(4)		801,644		798,857	-
Total revenue [a]		698,583		787,146	(11)		2,844,325		3,028,839	(6)
Investment securities gain/(losses), net		(1,659)		4,915	(134)		31,371		12,832	144
Gain on prepayment of FHLB advances		-		(141)	(100)		21,775		38,359	(43)
Provision for loan losses		26,160		2,761	NM		107,546		29,471	265
Noninterest expense		576,671		645,314	(11)		2,199,175		2,351,847	(6)
Pretax income		94,093		143,845	(35)		590,750		698,712	(15)
Income tax expense		24,787		47,276	(48)		170,820		219,701	(22)

Net income		69,306		96,569	(28)		419,930		479,011	(12)

Net income attributable to noncontrolling interests		486		588	(17)		2,094		2,138	(2)

Net income attributable to shareholder	$	68,820	$	95,981	(28)	$	417,836	$	476,873	(12)



SELECTED RATIOS
Return on average assets		0.38		0.56			0.60		0.72
Return on average tangible equity [b]		6.77		8.40			6.77		8.40
Average common equity to average assets		15.94		16.10			16.12		16.41
Average loans to average total deposits		93.96		89.11			91.26		90.87
Tier I capital ratio		11.62		11.68			11.62		11.68
Total capital ratio		13.74		14.28			13.74		14.28
Leverage ratio		9.87		9.43			9.87		9.43

	Average for Three Months			Average for Year			Ending Balance
	Ended December 31		%	Ended December 31		%	December 31		%
	2013	2012	Change	2013	2012	Change	2013	2012	Change
BALANCE SHEET HIGHLIGHTS
Total loans	$ 50,506,422	$ 45,188,234	12	$ 47,959,849	$ 44,118,556	9	$ 50,814,125	$ 45,333,608	12
Total investment securities	9,921,999	9,577,602	4	10,100,601	9,792,547	3	9,832,281	9,496,359	4
Earning assets	60,532,456	54,877,571	10	58,197,813	54,008,583	8	60,726,001	54,956,584	10
Total assets	72,099,576	68,848,414	5	70,309,637	66,468,815	6	71,965,476	69,236,695	4
Noninterest bearing demand deposits	15,492,506	14,635,913	6	14,586,725	13,854,155	5	15,377,844	14,436,539	7
Interest bearing transaction accounts	26,298,335	23,965,650	10	25,961,989	23,243,133	12	26,969,845	24,990,104	8
Total transaction accounts	41,790,841	38,601,563	8	40,548,714	37,097,288	9	42,347,689	39,426,643	7
Total deposits	53,755,937	50,708,703	6	52,553,744	48,549,780	8	54,437,490	51,642,778	5
Shareholders' equity	11,491,753	11,082,098	4	11,337,388	10,906,123	4	11,487,759	11,083,573	4

[a] Excludes net loss on sales of investment securities and gain on prepayment of FHLB advances.

[b] Excludes amortization of intangibles, net of tax, and intangible assets.

BBVA COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)

	Year to Date
	2013								2012
	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
NONPERFORMING ASSETS
Nonaccrual loans	$ 441,718		$ 543,902		$ 589,468		$ 683,684		$ 727,776
Loans 90 days or more past due, including TDRs	84,131		98,774		121,578		127,646		141,867
Total nonperforming loans	525,849		642,676		711,046		811,330		869,643
Other real estate, net	23,228		41,493		52,798		69,543		68,568
Other repossessed assets	3,360		3,896		3,224		4,511		3,890

Total nonperforming assets	$ 552,437		$ 688,065		$ 767,068		$ 885,384		$ 942,101


Renegotiated loans	208,391		225,961		243,009		246,712		243,082
Total nonperforming loans as a % of loans	1.03	%	1.30	%	1.49	%	1.77	%	1.92
Total nonperforming assets as a % of loans and ORE	1.09	%	1.39	%	1.61	%	1.93	%	2.07


	Three Months Ended
	2013								2012
	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$ 717,937		$ 723,511		$ 786,018		$ 802,853		$ 903,833

Net charge-offs (NCO)	43,378		43,108		86,744		36,450		103,741
Allowance transferred	-		-		-		-		-
Provision for loan losses	26,160		37,534		24,237		19,615		2,761

Balance at end of period	$ 700,719		$ 717,937		$ 723,511		$ 786,018		$ 802,853

Allowance for loan losses as a % of total loans	1.38	%	1.45	%	1.52	%	1.72	%	1.77

Allowance for loan losses as a % of
nonperforming loans [a]	133.25		111.71		101.75		96.88		92.32

Allowance for loan losses as a % of
nonperforming assets	126.84		104.34		94.32		88.78		85.22

Annualized as a % of average loans:
NCO - QTD	0.34		0.35		0.74		0.32		0.91
NCO - YTD	0.44		0.47		0.54		0.32		0.63


[a] Includes loans held for sale that are on nonaccrual status.

BBVA COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)


	Three Months Ended December 31
	2013				2012
YIELD/RATE ANALYSIS (Taxable Equivalent Basis)	Average Balance	Income/ Expense	Yield/ Rate		Average Balance	Income/ Expense	Yield/ Rate
Assets
Earning assets:
Loans	$ 50,506,422	$ 535,388	4.21	%	$ 45,188,234	$ 611,602	5.37	%
Investment securities held to maturity	1,535,107	10,720	2.77		1,506,190	10,432	2.75
Investment securities available for sale [a]	8,352,632	46,739	2.22		7,826,835	49,744	2.52
Other earning assets	104,035	615	2.35		111,735	674	2.39

Total earning assets [a]	60,498,196	593,462	3.89		54,632,994	672,452	4.88
Allowance for loan losses	(717,913)				(878,045)
Unrealized gain (loss) on securities
available for sale	34,260				244,577
Other assets	12,285,033				14,848,888

	$ 72,099,576				$ 68,848,414

Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts	$ 26,298,335	18,719	0.28		$ 23,965,650	23,334	0.39
Time deposits	4,023,853	10,931	1.08		3,979,043	10,239	1.02
Certificates of deposit of $100M or more [a]	7,941,243	22,229	1.11		8,128,097	20,801	1.02
Federal funds purchased and securities	964,386	505	0.21		1,125,632	638	0.22
sold under agreement to repurchase
Other short-term borrowings	12,916	31	0.95		8,353	39	1.85
FHLB and other borrowings [a]	4,416,532	17,205	1.55		4,438,947	16,586	1.48

Total interest bearing liabilities [a]	43,657,265	69,620	0.63		41,645,722	71,637	0.68

Net interest spread		523,842	3.26	%		600,815	4.20	%

Noninterest bearing demand deposits	15,492,506				14,635,913
Other liabilities	1,458,052				1,484,681
Shareholders' equity	11,491,753				11,082,098

	$ 72,099,576				$ 68,848,414

Net yield on earning assets			3.44	%			4.36	%

Taxable equivalent adjustment:
Loans		11,114				7,920
Investment securities held to maturity		3,220				3,117
Investment securities available for sale		1,997				1,346
Other earning assets		2				4
Total taxable equivalent adjustment		16,333				12,387

Net interest income		$ 507,509				$ 588,428

[a] Excludes adjustment for market valuation.

BBVA COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)


	Year Ended December 31
	2013				2012
YIELD/RATE ANALYSIS (Taxable Equivalent Basis)	Average Balance	Income/ Expense	Yield/ Rate		Average Balance	Income/ Expense	Yield/ Rate
Assets
Earning assets:
Loans	$ 47,959,849	$ 2,149,731	4.48	%	$ 44,118,556	$ 2,268,077	5.14	%
Investment securities held to maturity	1,539,945	43,467	2.82		1,416,202	40,828	2.88
Investment securities available for sale [a]	8,462,224	185,624	2.19		8,134,694	225,839	2.78
Other earning assets	137,363	3,171	2.31		97,480	2,629	2.70

Total earning assets [a]	58,099,381	2,381,993	4.10		53,766,932	2,537,373	4.72
Allowance for loan losses	(752,801)				(964,101)
Unrealized gain (loss) on securities
available for sale	98,432				241,651
Other assets	12,864,625				13,424,333

	$ 70,309,637				$ 66,468,815

Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts	$ 25,961,989	83,237	0.32		$ 23,243,133	78,183	0.34
Time deposits	4,072,550	43,902	1.08		3,890,096	40,022	1.03
Certificates of deposit of $100M or more [a]	7,932,480	84,961	1.07		7,562,396	74,439	0.98
Federal funds purchased and securities	979,759	2,082	0.21		1,226,301	2,783	0.23
sold under agreement to repurchase
Other short-term borrowings	12,739	118	0.93		15,618	113	0.72
FHLB and other borrowings [a]	4,156,172	66,275	1.59		4,304,107	66,014	1.53

Total interest bearing liabilities [a]	43,115,689	280,575	0.65		40,241,651	261,554	0.65

Net interest spread		2,101,418	3.45	%		2,275,819	4.07	%

Noninterest bearing demand deposits	14,586,725				13,854,155
Other liabilities	1,269,835				1,466,886
Shareholders' equity	11,337,388				10,906,123

	$ 70,309,637				$ 66,468,815

Net yield on earning assets			3.62	%			4.23	%

Taxable equivalent adjustment:
Loans		38,571				28,916
Investment securities held to maturity		12,835				11,422
Investment securities available for sale		7,323				5,486
Other earning assets		8				13
Total taxable equivalent adjustment		58,737				45,837

Net interest income		$ 2,042,681				$ 2,229,982


[a] Excludes adjustment for market valuation.

BBVA COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)


	Year			Three Months Ended
	Ended December 31		%	2013				2012
	2013	2012	Change	Dec 31	Sep 30	Jun 30	Mar 31	Dec 31
NONINTEREST INCOME

Service charges on deposit accounts	$ 221,413	$ 254,675	(13)	$ 56,812	$ 54,229	$ 54,884	$ 55,488	$ 61,507
Card and merchant processing fees	102,189	101,540	1	25,320	26,132	26,113	24,624	25,311
Insurance commissions	753	9,469	(92)	192	210	183	168	201
Retail investment sales	97,276	97,504	-	25,552	22,034	25,311	24,379	23,547
Asset management fees	40,939	37,848	8	9,796	10,438	10,636	10,069	9,384
Corporate and correspondent investment sales	35,674	38,014	(6)	8,720	8,011	9,547	9,396	13,487
Bank owned life insurance	17,747	20,335	(13)	4,846	4,222	4,274	4,405	4,877
Other income	285,653	239,472	19	59,836	85,709	77,108	63,000	60,403

	801,644	798,857	-	191,074	210,985	208,056	191,529	198,717
Investment securities gain/(losses), net	31,371	12,832	144	(1,659)	-	18,075	14,955	4,915
Gain on prepayment of FHLB advances	21,775	38,359	(43)	-	-	22,882	(1,107)	(141)
Total noninterest income	$ 854,790	$ 850,048	1	$ 189,415	$ 210,985	$ 249,013	$ 205,377	$ 203,491


NONINTEREST EXPENSE

Salaries and benefits	$ 1,005,244	$ 1,003,010	-	$ 261,643	$ 244,373	$ 247,905	$ 251,323	$ 247,318
FDIC indemnification expense	267,159	372,496	(28)	55,453	55,064	70,335	86,307	141,499
Equipment expense	208,059	173,459	20	59,070	50,483	50,891	47,615	51,536
Net occupancy expense	157,737	153,429	3	40,115	39,257	40,471	37,894	40,271
Professional services	191,402	176,266	9	58,204	44,195	49,729	39,274	54,997
Marketing expense	37,352	28,233	32	9,212	9,146	9,926	9,068	6,407
Communications expense	25,965	30,349	(14)	7,392	7,080	4,682	6,811	7,629
Amortization of intangibles	60,691	91,746	(34)	14,305	14,884	15,462	16,040	23,740
Other expense	245,566	322,859	(24)	71,277	57,657	65,299	51,333	71,917


Total noninterest expense	$ 2,199,175	$ 2,351,847	(6)	$ 576,671	$ 522,139	$ 554,700	$ 545,665	$ 645,314