HOUSTON, April 29, 2015 /MILITARY-TECHNOLOGIES.NET/ -- BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income attributable to shareholder of $141 million for the first quarter of 2015, a 23 percent increase compared to $114 million earned during the first quarter of 2014. Return on average assets and return on average tangible equity1 for the first three months of 2015 were 0.68 percent and 8.25 percent, respectively.
"Despite the challenging interest rate environment, BBVA Compass delivered strong results highlighted by robust balance sheet growth and balanced revenue growth," said Manolo Sanchez, chairman and CEO of BBVA Compass. "Continued demand for commercial loans and residential mortgages were the primary drivers behind the 11 percent increase in total loans. While total deposits increased 10 percent, growth of low-cost deposits was even more pronounced with savings and money market deposits growing 17 percent and noninterest bearing demand deposits increasing 14 percent."
"The continued growth of our loan and deposit portfolios reflect the complement of investment banking capabilities we have added, coupled with the addition of commercial loan offices in targeted markets," Sanchez said. "Clearly these efforts, by design, have aided our ability to expand our client base while further enhancing our relationships with existing commercial customers."
Sanchez noted that total revenue increased four percent as both net interest income and noninterest income posted solid gains. Net interest income increased three percent from prior year levels and was driven by strong loan and low-cost deposit growth. Noninterest income, excluding a net gain from securities transactions and the extinguishment of FHLB advances, increased eight percent. At the same time, expenses were well contained as disciplined expense management resulted in a one percent increase in noninterest expenses.
Credit quality metrics continued to reflect a strong risk profile. Net charge-offs as a percentage of average loans dipped to 17 basis points compared to 24 basis points in the year ago quarter. Nonperforming assets as a percentage of loans, other real estate and other repossessed assets were 77 basis points compared to 95 basis points a year ago.
Total shareholder's equity ended the first quarter of 2015 at $12.2 billion, a four percent increase from $11.7 billion at the end of the first quarter of 2014. Additionally, each of the company's regulatory capital ratios remained significantly above 'well-capitalized' guidelines.
"BBVA Compass is committed to maintaining a strong capital position and the recently completed stress tests demonstrate our ability to generate retained earnings and our capacity to absorb significant stress under various severely adverse economic scenarios," Sanchez said.
During the first quarter, BBVA Compass announced a new card-issuing partnership that brings together three global brands – BBVA, American Express and the NBA – through the BBVA Compass NBA American Express® Card. The new card represents a unique offering and better reflects customers' expectations in today's digital age as the paper application and lengthy approval time has been replaced by an exclusively on-line application, instant approvals for qualified customers and around-the-clock customer service.
BBVA Compass also announced that its customers will be able to send and receive funds instantly through Dwolla, an all-digital payments network. The collaboration makes BBVA Compass the largest financial institution to use the Dwolla platform for real-time transfers, thus eliminating the wait associated with Automated Clearing House (ACH) transfers that typically can take two-to-five business days to clear.
1 Average tangible equity is a 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.
About BBVA Compass
BBVA Compass Bancshares, Inc. is a Sunbelt-based bank holding company whose principal subsidiary, BBVA Compass, operates 672 branches, including 341 in Texas, 89 in Alabama, 77 in Arizona, 62 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' mobile app recently earned the Mobile Banking Leader in Functionality Award for the second consecutive year in the Javelin Strategy & Research's Mobile Banking Financial Institution Scorecard. Additional information about BBVA Compass can be found under the Investor Relations tab at www.bbvacompass.com, by following @BBVACompassNews on Twitter or visiting newsroom.bbvacompass.com.
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.
On April 15, 2015, BBVA filed its annual report Form 20-F for the year ended December 31, 2014, with the Securities and Exchange Commission. A copy can be accessed on the BBVA website at http://shareholdersandinvestors.bbva.com/TLBB/tlbb/bbvair/ing/share/adrs/index.jsp. Holders of BBVA's American Depositary Receipts (ADRs) may request a hard copy of the Form 20-F for the year ended December 31, 2014, including its complete audited financial statements, free of charge. To request a copy, contact Ed Bilek at ed.bilek@bbva.com.
Forward-Looking Statements
Certain statements in this press release may contain forward-looking statements about BBVA Compass 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 March 11, 2015, as updated by our subsequent SEC filings.
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BBVA Compass Bancshares, Inc. reports first quarter 2015 earnings of 1 million