BBVA Compass Bancshares, Inc. reports earnings of $222 million for first half of 2014

BBVA Compass Bancshares, Inc. reports earnings of $222 million for first half                                    of 2014  Balance sheet growth fueled by robust loan and deposit demand  - Total loans end the quarter at $54.3 billion, up 14 percent from prior year levels  - Total deposits increase 11 percent to $58.1 billion, driven by a 13 percent increase in noninterest bearing deposits  - Key credit quality indicators continue to strengthen; nonperforming asset ratio drops to 0.81 percent from 1.61 percent, net charge-off ratio falls to 0.26 percent  - Bank is No.1 with customers in American Banker's annual reputation survey  PR Newswire  HOUSTON, July 30, 2014  HOUSTON, July 30, 2014 /PRNewswire/ --BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income attributable to shareholder of $222 million for the first six months of 2014 compared to $238 million for the first six months of 2013. These results include a $0.5 million loss and a $22 million gain on the prepayment of FHLB and other borrowings for the first six months of 2014 and 2013, respectively. Return on average assets and return on average tangible equity for the first half of 2014 were 0.60 percent and 6.85 percent, respectively.  Net income attributable to shareholder for the second quarter of 2014 was $107 million compared to $128 million for the second quarter of 2013. Included in the results for the second quarter of 2013 was a $23 million gain on the prepayment of FHLB and other borrowings.  "The strong balance sheet growth BBVA Compass delivered during the first half of 2014 is a direct reflection of the benefit of our customer-centric business model, improving markets and our focus on utilizing technology as a competitive advantage to quickly adapt our products and services to meet the changing needs of our customers," said Manolo Sanchez, chairman and CEO of BBVA Compass. "Our focus on serving our customers resulted in a 14 percent increase in total loans, driven by healthy growth in both our commercial and consumer portfolios. Deposit growth was also solid, increasing 11 percent in total while noninterest bearing deposit growth was more pronounced at 13 percent."  Sanchez noted that strong balance sheet growth did not come at the expense of maintaining sound and disciplined risk standards as key credit quality metrics showed further improvement. Total nonperforming assets as a percentage of loans, other real estate and other repossessed assets dropped to 0.81 percent at the end of the second quarter and net charge-offs as a percentage of average loans were 26 basis points compared to 54 basis points for the first half of 2013.  Total shareholder's equity ended the second quarter of 2014 at $11.8 billion, a 5 percent increase from second quarter 2013 levels. Sanchez said, "BBVA Compass is committed to maintaining a strong capital position and at the end of the second quarter each of our regulatory capital ratios remain significantly above 'well-capitalized' guidelines."  Also in the quarter, BBVA Compass earned the top ranking with customers in American Banker's annual reputation survey of the top 25 largest U.S. retail banks. BBVA Compass' score jumped more than 12 points and came within two points of achieving a "top-tier" score of 80 or higher, territory no bank has seen since the survey started in 2010. BBVA Compass was the only bank to rank in the top five across all seven dimensions of reputation among customers and earned the top spot in governance, products, performance and innovation.  About BBVA Compass  BBVA Compass Bancshares, Inc. is a Sunbelt-based bank holding company whose lead subsidiary, BBVA Compass, operates 673 branches, including 342 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 has been recognized as one of the leading small business lenders by the Small Business Administration and recently earned the top ranking with customers in American Banker's 2014 annual reputation survey of the top 25 largest U.S. retail banks. 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.  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 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 28, 2014, as updated by our subsequent SEC filings.  BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in thousands)                 Three Months Ended June   %       Six Months Ended June     %                 30,                               30,                 2014         2013         Change  2014         2013         Change EARNINGS SUMMARY Net interest    $         $         (2)     $         $           (4) income          498,774      510,315              994,073      1,033,261 Noninterest     213,981      208,056      3       417,333      399,585      4 income [a] Total revenue   712,755      718,371      (1)     1,411,406    1,432,846    (1) [a] Investment securities      21,464       18,075       19      37,898       33,030       15 gain, net Gain (loss) on prepayment of   -            22,882       NM    (458)        21,775       NM FHLB advances Provision for   45,252       24,237       87      82,518       43,852       88 loan losses Noninterest     545,262      554,700      (2)     1,064,129    1,100,365    (3) expense Pretax income   143,705      180,391      (20)    302,199      343,434      (12) Income tax      36,130       51,596       (30)    79,697       104,103      (23) expense Net income      107,575      128,795      (16)    222,502      239,331      (7) Net income attributable to              504          568          (11)    957          961          - noncontrolling interests Net income      $         $                 $         $    attributable    107,071      128,227      (16)    221,545      238,370      (7) to shareholder SELECTED RATIOS Return on       0.57 %       0.74 %               0.60 %       0.69 % average assets Return on average         6.52         8.32                 6.85         7.91 tangible equity [b] Average common equity to       15.56        16.22                15.69        16.09 average assets Average loans to average      93.70        89.17                93.89        88.44 total deposits Tier I capital  11.27        12.00                11.27        12.00 ratio [c] Total capital   13.34        14.32                13.34        14.32 ratio [c] Leverage ratio  9.68         9.90                 9.68         9.90 [c]                 Average for Three Months          Average for Six Months            Ending Balance                 Ended June 30,            %       Ended June 30,            %       June 30,                  %                 2014         2013         Change  2014         2013         Change  2014         2013         Change BALANCE SHEET HIGHLIGHTS Total loans     $            $            15      $            $            15      $            $            14                 53,924,258  46,791,135          52,939,163  46,226,975          54,297,672  47,591,933 Total investment      10,342,192   10,442,926   (1)     10,269,762   10,325,282   (1)     10,420,429   9,918,520    5 securities Earning assets  64,375,186   57,392,898   12      63,316,324   56,697,347   12      64,864,449   57,648,938   13 Total assets    76,004,941   69,944,558   9       74,689,351   69,900,139   7       75,747,100   69,674,976   9 Noninterest bearing demand  16,342,035   14,348,060   14      15,999,415   14,052,643   14      16,321,003   14,498,028   13 deposits Interest bearing         28,211,266   25,948,163   9       27,645,278   25,919,550   7       28,629,221   25,926,567   10 transaction accounts Total transaction     44,553,301   40,296,223   11      43,644,693   39,972,193   9       44,950,224   40,424,595   11 accounts Total deposits  57,549,565   52,473,024   10      56,386,091   52,266,440   8       58,118,406   52,260,682   11 Shareholder's   11,823,834   11,342,874   4       11,720,415   11,246,421   4       11,849,538   11,315,076   5 equity  [a] Excludes net gain on sales of investment securities and gain (loss) on prepayment of FHLB advances. [b] Excludes amortization of intangibles, net of tax, and intangible assets. [c] Current period regulatory capital ratios are estimated. NM = Not meaningful    BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in Thousands)                                2014               2013                                June 30  March 31  December  September  June 30                                                   31        30 NONPERFORMING ASSETS Nonaccrual loans               $      $       $       $        $                                  341,807  388,597   441,718   543,902   589,468 Loans 90 days or more past     76,219   83,490    82,814    98,035     121,215 due [a] TDRs 90 days or more past due  629      204       1,317     739        363  Total nonperforming       418,655  472,291   525,849   642,676    711,046 loans [b] Other real estate owned, net   21,113   25,817    23,228    41,493     52,798 (OREO) Other repossessed assets       2,796    3,313     3,360     3,896      3,224 Total nonperforming assets     $      $       $       $        $                                  442,564  501,421   552,437   688,065   767,068 TDRs accruing and past due     $      $       $       $        $   less than 90 days              177,630  202,075   208,391   225,961   243,009 Covered loans [c]              613,152  701,158   734,190   832,884    915,755 Covered nonperforming loans    59,331   63,664    62,038    76,301     99,480 [c] Covered nonperforming assets   62,824   67,500    66,151    89,620     118,902 [c] Total nonperforming loans as   0.77 %   0.89 %    1.03 %    1.30 %     1.49 % a % of loans Total nonperforming loans as a % of loans, excluding        0.67     0.78      0.93      1.16       1.31 covered loans Total nonperforming assets as a % of total loans, other      0.81     0.95      1.09      1.39       1.61 real estate, and other repossessed assets Total nonperforming assets as a % of total loans, other real estate, and other         0.71     0.83      0.97      1.23       1.39 repossessed assets, excluding covered assets                                Three Months Ended                                2014               2013                                June 30  March 31  December  September  June 30                                                   31        30 ALLOWANCE FOR LOAN LOSSES Balance at beginning of        $      $       $       $        $   period                         707,665  700,719   717,937   723,511   786,018 Net charge-offs (NCO)          38,157   30,320    43,378    43,108     86,744 Provision for loan losses      45,252   37,266    26,160    37,534     24,237 Balance at end of period       $      $       $       $        $                                  714,760  707,665   700,719   717,937   723,511 Allowance for loan losses as   1.32 %   1.34 %    1.38 %    1.45 %     1.52 % a % of total loans Allowance for loan losses as a % of nonperforming loans     170.73   149.84    133.25    111.71     101.75 [d] Allowance for loan losses as a % of nonperforming assets    161.50   141.13    126.84    104.34     94.32 [d] Annualized as a % of average loans: NCO - QTD                      0.28     0.24      0.34      0.35       0.74 NCO - YTD                      0.26     0.24      0.44      0.47       0.54  [a] Excludes loans classified as troubled debt restructuring (TDRs). [b] Includes loans held for sale. [c] Covered assets includes loans and OREO acquired from the FDIC subject to loss sharing agreements. [d] Includes loans held for sale that are on nonaccrual status.    BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in Thousands)                   Three Months Ended June 30,                   2014                           2013                   Average      Income/   Yield/  Average      Income/   Yield/                   Balance      Expense   Rate    Balance      Expense   Rate YIELD/RATE ANALYSIS (Taxable Equivalent Basis) Assets Earning assets: Loans             $           $        3.97 %  $           $        4.61 %                   53,924,258  533,572          46,791,135  537,394 Investment securities        8,833,591    50,085    2.27    8,729,716    45,939    2.11 available for sale [a] Investment securities held   1,463,642    10,066    2.76    1,550,056    10,843    2.81 to maturity Other earning     108,736      622       2.29    158,837      839       2.12 assets Total earning     64,330,227   594,345   3.71    57,229,744   595,015   4.17 assets [a] Allowance for     (707,222)                      (770,742) loan losses Unrealized gain (loss) on securities        44,959                         163,154 available for sale Other assets      12,336,977                     13,322,402 Total assets      $                             $                    76,004,941                    69,944,558 Liabilities and Shareholder's Equity Interest bearing liabilities: Interest bearing  $          $      0.17    $          $      0.17 demand deposits   7,244,052   3,098             6,647,469   2,868 Savings and money market      20,967,214   20,000    0.38    19,300,694   19,143    0.40 accounts Certificates and other time        12,876,734   37,748    1.18    12,052,084   31,699    1.05 deposits Foreign office    119,530      55        0.18    124,717      69        0.22 deposits  Total interest bearing  41,207,530   60,901    0.59    38,124,964   53,779    0.57 deposits FHLB and other    4,100,456    16,184    1.58    4,039,732    16,149    1.60 borrowings Federal funds purchased and securities sold   876,593      437       0.20    1,016,816    551       0.22 under agreement to repurchase Other short-term  17,282       96        2.23    15,629       (24)      (0.62) borrowings Total interest bearing           46,201,861   77,618    0.67    43,197,141   70,455    0.65 liabilities Noninterest       16,342,035                     14,348,060 bearing deposits Other noninterest       1,637,211                      1,056,483 bearing liabilities Total             64,181,107                     58,601,684 liabilities Shareholder's     11,823,834                     11,342,874 equity Total liabilities and   $                             $  shareholder's     76,004,941                    69,944,558 equity Net interest income/ net                    516,727   3.04 %               524,560   3.52 % interest spread Net yield on                             3.22 %                         3.68 % earning assets Total taxable equivalent                     17,953                         14,245 adjustment Net interest                   $                             $  income                         498,774                       510,315  [a] Excludes adjustment for market valuation.    BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in Thousands)                  Six Months Ended June 30,                  2014                           2013                  Average     Income/    Yield/  Average      Income/    Yield/                  Balance     Expense    Rate    Balance      Expense    Rate YIELD/RATE ANALYSIS (Taxable Equivalent Basis) Assets Earning assets: Loans            $          $         4.02 %  $           $         4.73 %                  52,939,163  1,054,164          46,226,975  1,085,417 Investment securities       8,743,587   101,079    2.33    8,626,071    95,088     2.22 available for sale [a] Investment securities held  1,484,405   20,439     2.78    1,520,928    21,696     2.88 to maturity Other earning    107,399     1,188      2.23    145,090      1,619      2.25 assets Total earning    63,274,554  1,176,870  3.75    56,519,064   1,203,820  4.30 assets [a] Allowance for    (704,997)                      (785,430) loan losses Unrealized gain (loss) on securities       41,770                         178,283 available for sale Other assets     12,078,024                     13,988,222 Total assets     $                             $                   74,689,351                     69,900,139 Liabilities and Shareholder's Equity Interest bearing liabilities: Interest         $                            $   bearing demand   7,366,899   6,095      0.17    6,739,604   5,702      0.17 deposits Savings and money market     20,278,379  35,666     0.35    19,179,946   40,485     0.43 accounts Certificates and other time   12,620,073  72,239     1.15    12,167,267   63,854     1.06 deposits Foreign office   121,325     117        0.19    126,980      149        0.24 deposits  Total interest         40,386,676  114,117    0.57    38,213,797   110,190    0.58 bearing deposits FHLB and other   4,194,210   32,548     1.57    4,129,882    31,941     1.56 borrowings Federal funds purchased and securities sold  908,703     937        0.21    1,062,802    1,131      0.21 under agreement to repurchase Other short-term       14,931      122        1.65    13,268       48         0.73 borrowings Total interest bearing          45,504,520  147,724    0.66    43,419,749   143,310    0.67 liabilities Noninterest bearing          15,999,415                     14,052,643 deposits Other noninterest      1,465,001                      1,181,326 bearing liabilities Total            62,968,936                     58,653,718 liabilities Shareholder's    11,720,415                     11,246,421 equity Total liabilities and  $                             $  shareholder's    74,689,351                     69,900,139 equity Net interest income/ net                  1,029,146  3.09 %               1,060,510  3.63 % interest spread Net yield on                            3.28 %                          3.78 % earning assets Total taxable equivalent                   35,073                          27,249 adjustment Net interest                 $                             $  income                       994,073                         1,033,261  [a] Excludes adjustment for market valuation.    BBVA COMPASS BANCSHARES, INC. (Unaudited) (Dollars in Thousands)                  Six Months                      Three Months Ended                  Ended June 30           %       2014              2013                  2014        2013        Change  June 30  March    December  September  June 30                                                           31       31        30 NONINTEREST INCOME Service charges  $         $                 $     $     $      $       $    on deposit       108,349     110,372     (2)     54,958   53,391   56,812    54,229    54,884 accounts Card and merchant         52,777      50,737      4       28,473   24,304   25,320    26,132     26,113 processing fees Retail investment       55,408      49,690      12      28,844   26,564   25,552    22,034     25,311 sales Asset            21,293      20,705      3       10,535   10,758   9,796     10,438     10,636 management fees Corporate and correspondent    16,628      18,943      (12)    7,972    8,656    8,720     8,011      9,547 investment sales Mortgage         10,426      24,611      (58)    6,150    4,276    3,178     7,610      13,141 banking income Bank owned life  8,204       8,679       (5)     4,237    3,967    4,846     4,222      4,274 insurance Other            144,248     115,848     25      72,812   71,436   56,850    78,309     64,150                  417,333     399,585     4       213,981  203,352  191,074   210,985    208,056 Investment securities       37,898      33,030      15      21,464   16,434   (1,659)   -          18,075 gains, net Gain (loss) on prepayment of    (458)       21,775      NM    -        (458)    -         -          22,882 FHLB and other borrowings Total            $         $                 $      $      $       $        $   noninterest      454,773     454,390     -       235,445  219,328  189,415   210,985   249,013 income NONINTEREST EXPENSE Salaries,        $         $                 $      $      $       $        $   benefits and     525,870     499,228     5       263,301  262,569  261,643   244,373   247,905 commissions FDIC indemnification  61,988      156,642     (60)    30,370   31,618   55,453    55,064     70,335 expense Professional     96,189      89,003      8       49,790   46,399   58,204    44,195     49,729 services Equipment        109,207     98,506      11      55,469   53,738   59,070    50,483     50,891 Net occupancy    79,157      78,365      1       40,200   38,957   40,115    39,257     40,471 Marketing        18,510      18,994      (3)     9,986    8,524    9,212     9,146      9,926 Communications   12,641      11,493      10      6,294    6,347    7,392     7,080      4,682 Amortization of  26,165      31,502      (17)    13,631   12,534   14,305    14,884     15,462 intangibles Other            134,402     116,632     15      76,221   58,181   71,277    57,657     65,299 Total            $           $                   $      $      $       $        $   noninterest      1,064,129  1,100,365  (3)     545,262  518,867  576,671   522,139   554,700 expense  NM = Not meaningful  SOURCE BBVA Compass Bancshares, Inc.  Website: http://www.bbvacompass.com Contact: Jena Moreno, Corporate Communications, 713.831.5867, jena.morenogandy@bbva.com, or Ed Bilek, Investor Relations, 205.297.3331, ed.bilek@bbva.com  
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