BBVA USA reports fourth quarter 2020 results

Rhea-AI Summary

BBVA USA Bancshares reported a net income of $334 million for Q4 2020, a significant recovery from a net loss of $331 million in Q4 2019. Excluding goodwill impairments, adjusted net income was $139 million in Q4 2019. Total revenue rose to $969 million, an 18% increase from Q3 2020, while net interest income reached $667 million. However, the company recorded a full-year net loss of $1.9 billion due to previous goodwill impairment charges. Total loans decreased by 4% from Q3 2020, though total deposits rose by 15% from Q4 2019, highlighting strong liquidity despite challenges.

Positive

• Net income for Q4 2020 was $334 million, a significant rise from Q3 2020's $166 million.
• Total revenue increased to $969 million in Q4 2020, an 18% rise from the previous quarter.
• Operating income for Q4 2020 reached a record $391 million, indicating effective cost management.
• Total deposits rose by 15% year-over-year, improving liquidity.

Negative

• The company reported a full-year net loss of $1.9 billion, impacted by substantial goodwill impairments.
• Total loans decreased by 4% from Q3 2020, indicating potential lending challenges.
• Nonperforming loans as a percentage of total loans increased to 2.21%, signaling credit quality concerns.

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.

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)

 

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SOURCE BBVA USA

FAQ

What was BBVA's net income for Q4 2020?

BBVA reported a net income of $334 million for Q4 2020.

How did BBVA's total revenue change in Q4 2020 compared to Q3 2020?

Total revenue for Q4 2020 was $969 million, an 18% increase from Q3 2020.

What was the full-year net loss reported by BBVA for 2020?

BBVA reported a net loss of $1.9 billion for the full-year 2020.

How much did BBVA's total deposits increase compared to Q4 2019?

Total deposits increased by 15% compared to Q4 2019.

What was the efficiency ratio for BBVA in Q4 2020?

The efficiency ratio for Q4 2020 was 58.98 percent.