PR Newswire | Jan 29, 2021 09:30AM EST

01/29 08:30 CST

BBVA USA reports fourth quarter 2020 results4Q20 net income of $334 million- Revenue: Total revenue of $969 million, up 18 percent (annualized) from third quarter 2020 levels as both net interest income (+16 percent annualized) and noninterest income (+24 percent annualized) post double digit gains- Expenses: Noninterest expense totals $578 million, down 12 percent (annualized) on a linked quarter basis and down 6 percent from the year ago quarter, excluding goodwill impairment. Efficiency ratio ends the quarter at 58.98 percent compared to 63.55 percent on a linked quarter basis and 67.92 percent in the year ago quarter- Operating income: Operating income(1) in the quarter totals a record $391 million compared to $331 million recorded in the third quarter of 2020 and $279 million recorded in the fourth quarter of 2019- Loans and Deposits: Newly funded loans in the quarter of $4.4 billion brings the total for the full-year of 2020 to more than $20.2 billion, a 21 percent increase compared to the same time period a year ago. Total deposits end the quarter at $85.9 billion, down 2 percent (annualized) from the third quarter of 2020 and up 15 percent from the year ago quarter- Provision for credit losses: Provision recapture of credit losses of $81 million in the quarter primarily reflects improvement in macroeconomic factors and forecasts- Credit quality: Net charge-offs as a percentage of average loans of 34 basis points compared to 59 basis points for the third quarter of 2020. Nonperforming loan ratio at 2.21 percent and coverage ratio at 116 percent- Capital and Liquidity: CET1(2) ratio ends the quarter at 13.28 percent, up 49 basis points from third quarter 2020 levels. Liquidity Coverage Ratio (LCR) at 144 percent, unchanged on a sequential quarter basis HOUSTON, Jan. 29, 2021

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 Rodrguez 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 GroupBBVA (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 USAIn 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 StatementsCertain 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

EARNINGSSUMMARY

Net interest $ 667,202 $ 623,154 7 $ 2,510,524 $ 2,607,033 (4)income

Noninterest 301,416 272,584 11 1,170,056 1,105,983 6income [a]

Total revenue 968,618 895,738 8 3,680,580 3,713,016 (1)[a]

Investmentsecurities - - - 22,616 29,961 (25)gain, net

Provision for (81,298) 119,505 (168) 966,129 597,444 62credit losses

Goodwill - 470,000 NM 2,185,000 470,000 365impairment

Noninterest 577,580 616,906 (6) 2,376,718 2,396,080 (1)expense

Pretax (loss) 472,336 (310,673) NM (1,824,651) 279,453 (753)income

Income tax(benefit) 138,519 20,032 591 37,013 126,046 (71)expense

Net (loss) $ 333,817 $ (330,705) NM $ (1,861,664) $ 153,407 (1,314)income

Adjusted net(loss) income $ 333,817 $ 139,295 140 $ 323,336 $ 623,407 (48)[b]

SELECTEDRATIOS

Return onaverage 1.27 % (1.37)% (1.83)% 0.16 %assets

Return onaverage 1.27 0.58 0.32 0.66assets-adjusted [b]

Return onaverage 14.38 (14.46) (20.44) 1.73tangibleequity [b]

Return onaveragetangible 14.38 6.09 3.55 7.03equity-adjusted [b]

Efficiency 58.98 67.92 63.80 63.64ratio [b]

Averagecommon equity 10.81 14.44 11.51 14.46to averageassets

Average loansto average 77.07 86.29 81.34 88.04totaldeposits

Common equitytier I 13.28 12.49 13.28 12.49capital(CET1) [c]

Tier Icapital ratio 13.61 12.83 13.61 12.83[c]

Total capital 15.78 14.98 15.78 14.98ratio [c]

Leverage 9.07 9.70 9.07 9.70ratio [c]

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 15,639,628 13,792,727 13 14,519,143 13,725,672 6 16,297,042 14,032,351 16securities

Earning 97,057,560 85,135,405 14 93,694,488 83,839,035 12 96,139,619 84,712,261 13assets

Total assets 104,835,589 95,754,954 9 102,008,134 94,293,422 8 102,756,203 93,603,347 10

Noninterestbearing 27,425,253 21,288,781 29 24,506,957 20,631,434 19 27,791,421 21,850,216 27demanddeposits

Interestbearing 53,074,596 39,773,454 33 49,723,165 37,595,208 32 53,381,931 41,081,638 30transactionaccounts

Totaltransaction 80,499,849 61,062,235 32 74,230,122 58,226,642 27 81,173,352 62,931,854 29accounts

Total 85,906,838 74,122,266 16 82,426,860 73,007,106 13 85,858,381 74,985,283 15deposits

Totalshareholder's 11,595,287 14,090,315 (18) 12,003,167 13,894,163 (14) 11,691,362 13,386,589 (13)equity

Totalshareholder's 9,236,590 9,073,380 2 $ 9,105,998 $ 8,867,440 3 9,332,389 8,831,259 6equity -tangible [b]

[a] Excludes net gain on sales of investment securities.

[b] Non-GAAP financial measure that we believe aids in understanding certainareas of our performance. The calculation of this measure is included on thepage 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

NONPERFORMINGASSETS

Nonaccrual $ 1,331,230 $ 1,233,040 $ 764,744 $ 676,716 $ 606,843loans [a]

Loans 90 daysor more past 121,570 94,072 66,163 61,774 71,126due [b]

TDRs 90 daysor more past 556 830 423 335 414due

Totalnonperforming 1,453,356 1,327,942 831,330 738,825 678,383loans [a]

Foreclosed 11,448 15,051 14,871 20,642 20,833real estate

Otherrepossessed 5,846 8,527 8,599 13,338 10,930assets

Totalnonperforming $ 1,470,650 $ 1,351,520 $ 854,800 $ 772,805 $ 710,146assets

TDRs accruingand past due $ 114,334 $ 114,583 $ 95,788 $ 97,404 $ 97,901less than 90days

Totalnonperforming 2.21 % 2.00 % 1.21 % 1.09 % 1.06 %loans as a %of loans

Totalnonperformingassets as a %of totalloans, 2.23 2.03 1.25 1.14 1.11foreclosedreal estate,and otherrepossessedassets

Three Months Ended

2020 2019

December 31 September 30 June 30 March 31 December 31

ALLOWANCE FORLOAN LOSSES

Balance atbeginning of $ 1,804,423 $ 1,754,352 $1,351,072 $ 920,993 $ 942,191period

Adoption of - - - 184,931 -ASC 326

Netcharge-offs 56,578 100,818 123,054 111,798 140,703(NCO)

Provision for (68,371) 150,889 526,334 356,946 119,505loan losses

Balance at $ 1,679,474 $ 1,804,423 $1,754,352 $1,351,072 $ 920,993end of period

Allowance forloan losses 2.56 % 2.73 % 2.57 % 2.00 % 1.44 %as a % oftotal loans

Allowance forloan lossesas a % of 115.56 135.88 211.03 182.87 135.76nonperformingloans [c]

Allowance forloan lossesas a % of 114.20 133.51 205.24 174.83 129.69nonperformingassets [c]

Annualized asa % ofaverageloans:

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 Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate

YIELD/RATEANALYSIS

(TaxableEquivalentBasis)

Assets

Earningassets:

Loans $ 66,212,070 $ 636,738 3.83 % $ 63,956,453 $ 749,428 4.65 %

Debtsecurities 5,533,487 22,089 1.59 7,223,333 33,333 1.83available forsale [a]

Debtsecurities 9,988,959 61,570 2.45 6,576,786 44,207 2.67held tomaturity

Other earning 15,205,862 7,873 0.21 7,386,225 41,241 2.22assets [b]

Total earning 96,940,378 728,270 2.99 85,142,797 868,209 4.05assets [a]

Allowance for (1,776,160) (944,773)credit losses

Unrealizedgain (loss)on debt 117,182 (7,392)securitiesavailable forsale

Other assets 9,554,189 11,564,322

Total assets $ 104,835,589 $ 95,754,954

LiabilitiesandShareholder'sEquity

Interestbearingliabilities:

Interestbearing $ 14,540,342 6,812 0.19 $ 9,329,342 23,648 1.01demanddeposits

Savings andmoney market 38,534,254 13,526 0.14 30,444,112 93,114 1.21accounts

Certificatesand other 5,406,989 13,607 1.00 13,060,031 72,583 2.20time deposits

Totalinterest 58,481,585 33,945 0.23 52,833,485 189,345 1.42bearingdeposits

FHLB andother 3,552,199 14,092 1.58 3,701,993 31,263 3.35borrowings

Federal fundspurchased andsecuritiessold under 864,177 2,350 1.08 1,137,573 11,850 4.13agreement torepurchase[b]

Othershort-term 10,113 85 3.34 11,189 199 7.06borrowings

Totalinterest 62,908,074 50,472 0.32 57,684,240 232,657 1.60bearingliabilities

Noninterestbearing 27,425,253 21,288,781deposits

Othernoninterest 2,906,975 2,691,618bearingliabilities

Total 93,240,302 81,664,639liabilities

Shareholder's 11,595,287 14,090,315equity

Totalliabilitiesand $ 104,835,589 $ 95,754,954shareholder'sequity

Net interestincome/ net 677,798 2.67 % 635,552 2.45 %interestspread

Net yield onearning 2.78 % 2.96 %assets

Total taxableequivalent 10,596 12,398adjustment

Net interest $ 667,202 $ 623,154income

[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 Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate

YIELD/RATEANALYSIS

(TaxableEquivalentBasis)

Assets

Earningassets:

Loans $ 67,045,078 $ 2,698,114 4.02 % $ 64,275,473 $ 3,144,471 4.89 %

Debtsecurities 5,825,301 58,876 1.01 8,520,287 168,031 1.97available forsale [a]

Debtsecurities 8,593,882 195,032 2.27 5,281,585 149,505 2.83held tomaturity

Other earning 12,130,267 73,671 0.61 5,837,890 148,187 2.54assets [b]

Total earning 93,594,528 3,025,693 3.23 83,915,235 3,610,194 4.30assets [a]

Allowance for (1,497,922) (950,306)credit losses

Unrealizedgain (loss)on debt 99,960 (76,200)securitiesavailable forsale

Other assets 9,811,568 11,404,693

Total assets $ 102,008,134 $ 94,293,422

LiabilitiesandShareholder'sEquity

Interestbearingliabilities:

Interestbearing $ 13,649,238 54,570 0.40 $ 9,048,948 95,709 1.06demanddeposits

Savings andmoney market 36,073,927 168,737 0.47 28,546,260 354,286 1.24accounts

Certificatesand other 8,196,738 133,806 1.63 14,780,464 328,161 2.22time deposits

Totalinterest 57,919,903 357,113 0.62 52,375,672 778,156 1.49bearingdeposits

FHLB andother 3,605,422 71,848 1.99 3,968,094 136,164 3.43borrowings

Federal fundspurchased andsecuritiessold under 1,249,629 41,018 3.28 857,922 36,736 4.28agreement torepurchase[b]

Othershort-term 12,158 525 4.32 14,963 567 3.79borrowings

Totalinterest 62,787,112 470,504 0.75 57,216,651 951,623 1.66bearingliabilities

Noninterestbearing 24,506,957 20,631,434deposits

Othernoninterest 2,710,898 2,551,174bearingliabilities

Total 90,004,967 80,399,259liabilities

Shareholder's 12,003,167 13,894,163equity

Totalliabilitiesand $ 102,008,134 $ 94,293,422shareholder'sequity

Net interestincome/ net 2,555,189 2.48 % 2,658,571 2.64 %interestspread

Net yield onearning 2.73 % 3.17 %assets

Total taxableequivalent 44,665 51,538adjustment

Net interest $ 2,510,524 $ 2,607,033income

[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

NONINTERESTINCOME

Servicecharges on $ 219,783 $ 250,367 (12) $ 59,309 $ 54,710 $ 44,233 $ 61,531 $ 64,585depositaccounts

Card andmerchant 192,096 197,547 (3) 49,961 48,628 43,416 50,091 50,805processingfees

Investmentservices sales 112,243 115,446 (3) 26,647 26,218 24,971 34,407 28,130fees

Investmentbanking and 138,096 83,659 65 26,291 40,013 45,061 26,731 15,720advisory fees

Money transfer 106,564 99,144 7 29,446 27,109 25,461 24,548 25,871income

Assetmanagement 48,101 45,571 6 12,613 12,024 11,560 11,904 11,532fees

Corporate andcorrespondent 49,318 38,561 28 16,268 3,478 18,855 10,717 14,263investmentsales

Mortgage 74,813 28,059 167 19,753 13,741 23,868 17,451 9,048banking

Bank owned 20,149 17,479 15 5,458 4,972 5,094 4,625 4,584life insurance

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

Investmentsecurities 22,616 29,961 (25) - - 3,477 19,139 -gains, net

Totalnoninterest $ 1,192,672 $ 1,135,944 5 $ 301,416 $ 284,660 $ 272,354 $ 334,242 $ 272,584income

NONINTERESTEXPENSE

Salaries,benefits and $ 1,159,561 $ 1,181,934 (2) $ 301,020 $ 296,708 $ 251,697 $ 310,136 $ 297,823commissions

Professional 306,873 292,926 5 80,535 78,018 78,100 70,220 82,343services

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 74,755 68,224 10 20,764 18,897 17,958 17,136 17,951expense

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 2,185,000 470,000 365 - - - 2,185,000 470,000impairment

Totalnoninterest $4,561,718 $2,866,080 59 $ 577,580 $ 595,628 $579,450 $2,809,060 $ 1,086,906expense

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-GAAPRECONCILIATION

Computation ofOperatingIncome:

Net interest $ 2,510,524 $ 2,607,033 $ 667,202 $ 641,850 $ 612,017 $ 589,455 $ 623,154income (GAAP)

Plus:noninterest 1,192,672 1,135,944 301,416 284,660 272,354 334,242 272,584income (GAAP)

Less:noninterest 4,561,718 2,866,080 577,580 595,628 579,450 2,809,060 1,086,906expense (GAAP)

Plus: goodwillimpairment 2,185,000 470,000 - - - 2,185,000 470,000(GAAP)

Operatingincome $ 1,326,478 $ 1,346,897 $ 391,038 $ 330,882 $ 304,921 $ 299,637 $ 278,832(non-GAAP)

Computation ofTangibleShareholder'sEquity:

Totalshareholder's $ 11,691,362 $ 13,386,589 $ 11,691,362 $ 11,394,964 $ 11,270,789 $ 11,358,354 $ 13,386,589equity

Less: goodwilland other 2,358,973 4,555,330 2,358,973 2,357,039 2,357,343 2,359,540 4,555,330intangibles(GAAP)

Tangibleshareholder's $ 9,332,389 $ 8,831,259 $ 9,332,389 $ 9,037,925 $ 8,913,446 $ 8,998,814 $ 8,831,259equity(non-GAAP)

Computation ofAverageTangibleEquity:

Totalstockholder'sequity $ 12,003,167 $ 13,894,163 $ 11,595,287 $ 11,394,928 $ 11,533,007 $ 13,500,615 $ 14,090,315(average)(GAAP)

Less: goodwilland otherintangibles 2,897,169 5,026,723 2,358,697 2,357,944 2,357,132 4,526,744 5,016,935(average)(GAAP)

Averagetangible $ 9,105,998 $ 8,867,440 $ 9,236,590 $ 9,036,984 $ 9,175,875 $ 8,973,871 $ 9,073,380equity(non-GAAP) [B]

Net income(loss) (GAAP) $ (1,861,664) $ 153,407 $ 333,817 $ 166,241 $ (124,437) $ (2,237,285) $ (330,705)[A]

Return onaveragetangibleequity (20.44)% 1.73 % 14.38 % 7.32 % (5.45)% (100.27)% (14.46)%(non-GAAP)([A]/[B],annualized)

Computation of Adjusted Net Income, Return on Average Assets and Return onAverage Tangible Equity:

Net income $ (1,861,664) $ 153,407 $ 333,817 $ 166,241 $ (124,437) $ (2,237,285) $ (330,705)(loss) (GAAP)

Plus: goodwillimpairment 2,185,000 470,000 - - - 2,185,000 470,000(GAAP)

Adjusted netincome $ 323,336 $ 623,407 $ 333,817 $ 166,241 $ (124,437) $ (52,285) $ 139,295(non-GAAP) [C]

Average assets $ 102,008,134 $ 94,293,422 $ 104,835,589 $ 104,282,898 $ 104,204,062 $ 96,356,113 $ 95,754,954(GAAP) [D]

Return onaverage assets- adjusted 0.32 % 0.66 % 1.27 % 0.63 % (0.48)% (0.22)% 0.58 %(non-GAAP)([C]/[D],annualized)

Return onaveragetangibleequity - 3.55 7.03 14.38 7.32 (5.45) (2.34) 6.09adjusted(non-GAAP)([C]/[B],annualized)

Computation ofEfficiencyRatio:

Noninterest $ 4,561,718 $ 2,866,080 $ 577,580 $ 595,628 $ 579,450 $ 2,809,060 $ 1,086,906expense (GAAP)

Less:securities andgoodwill 2,185,000 470,215 - - - 2,185,000 470,102impairment(GAAP)

Total expense $ 2,376,718 $ 2,395,865 $ 577,580 $ 595,628 $ 579,450 $ 624,060 $ 616,804(GAAP) [E]

Net interestincome,taxable 2,555,189 2,658,571 $ 677,798 $ 652,660 $ 623,242 601,489 635,552equivalentbasis

Plus:noninterest 1,192,672 1,135,944 301,416 284,660 272,354 334,242 272,584income (GAAP)

Less:investmentsecurities 22,616 29,961 - - 3,477 19,139 -gains, net(GAAP)

Total revenue $ 3,725,245 $ 3,764,554 $ 979,214 $ 937,320 $ 892,119 $ 916,592 $ 908,136[F]

Efficiencyratio 63.80 % 63.64 % 58.98 % 63.55 % 64.95 % 68.08 % 67.92 %(non-GAAP)([E]/[F])

BBVA USA BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

At or Quarter Ended December 31, 2020

30-59 Days Past 60-89 Days Past 90 Days or More Past Nonaccrual Accruing Not Past Due or Total Net Charge Offs Due Due Due TDRs Impaired (Recoveries)

Commercial,financial $ 15,862 $ 22,569 $ 35,472 $ 540,741 $ 17,686 $ 25,972,812 $ 26,605,142 $ 5,019andagricultural

Real estate- 3,595 174 532 25,316 145 2,468,569 2,498,331 (2)construction

Commercialreal estate 2,113 2,004 1,104 442,137 910 13,117,046 13,565,314 203- mortgage

Residentialreal estate 49,445 20,694 45,761 235,463 53,380 12,923,031 13,327,774 1,029- mortgage

Equity lines 11,108 4,305 2,624 42,606 - 2,334,251 2,394,894 (795)of credit

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 - 24,076 17,550 8,741 10,087 23,163 1,846,106 1,929,723 28,206direct

Consumer - 47,174 14,951 5,066 24,713 - 4,085,221 4,177,125 8,069indirect

Total loans $ 166,937 $ 92,681 $ 121,570 $ 1,331,230 $ 114,890 $ 63,732,459 $ 65,559,767 $ 56,578

Loans held $ - $ - $ - $ - $ - $ 236,586 $ 236,586 $ -for sale

At or Quarter Ended September 30, 2020

30-59 Days Past 60-89 Days Past 90 Days or More Past Nonaccrual Accruing Not Past Due or Total Net Charge Offs Due Due Due TDRs Impaired (Recoveries)

Commercial,financial $ 22,632 $ 12,890 $ 21,261 $ 660,254 $ 19,713 $ 26,203,423 $ 26,940,173 $ 50,789andagricultural

Real estate- 2,861 303 532 12,614 61 2,387,303 2,403,674 153construction

Commercialreal estate 19,280 3,968 1,816 275,668 1,831 13,393,237 13,695,800 98- mortgage

Residentialreal estate 88,035 49,344 39,728 204,442 55,132 13,027,076 13,463,757 (117)- mortgage

Equity lines 13,418 6,300 3,445 37,216 - 2,381,344 2,441,723 233of credit

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 - 25,762 11,730 6,643 9,134 17,926 1,952,501 2,023,696 24,559direct

Consumer - 34,116 9,744 3,834 24,954 - 4,036,981 4,109,629 6,771indirect

Total loans $ 217,727 $ 102,963 $ 94,072 $ 1,233,040 $ 115,413 $ 64,417,397 $ 66,180,612 $ 100,818

Loans held $ - $ - $ - $ - $ - $ 253,454 $ 253,454 $ -for sale

At or Quarter Ended June 30, 2020

30-59 Days Past 60-89 Days Past 90 Days or More Past Nonaccrual Accruing Not Past Due or Total Net Charge Offs Due Due Due TDRs Impaired (Recoveries)

Commercial,financial $ 51,207 $ 5,130 $ 8,450 $ 389,615 $ 1,866 $ 28,325,856 $ 28,782,124 $ 29,038andagricultural

Real estate- 12,907 - 532 13,317 64 2,271,650 2,298,470 (36)construction

Commercialreal estate 8,592 2,190 415 117,213 1,876 13,670,383 13,800,669 8,670- mortgage

Residentialreal estate 70,252 22,495 13,140 169,387 54,289 13,099,576 13,429,139 182- mortgage

Equity lines 8,461 8,162 3,555 34,915 - 2,461,741 2,516,834 (476)of credit

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 - 19,927 10,923 11,623 7,624 16,836 2,067,175 2,134,108 42,271direct

Consumer - 32,519 11,162 6,166 24,216 - 4,030,541 4,104,604 23,418indirect

Total loans $ 211,844 $ 68,040 $ 66,163 $ 764,744 $ 96,211 $ 67,034,498 $ 68,241,500 $ 123,054

Loans held $ - $ - $ - $ - $ - $ 245,851 $ 245,851 $ -for sale

At or Quarter Ended March 31, 2020

30-59 Days Past 60-89 Days Past 90 Days or More Past Nonaccrual Accruing Not Past Due or Total Net Charge Offs Due Due Due TDRs Impaired (Recoveries)

Commercial,financial $ 31,493 $ 7,588 $ 3,013 $ 323,881 $ 1,931 $ 27,464,207 $ 27,832,113 $ 19,014andagricultural

Real estate- 9,356 66 574 13,676 69 2,147,973 2,171,714 (13)construction

Commercialreal estate 13,439 5,241 912 114,839 3,333 13,715,641 13,853,405 (73)- mortgage

Residentialreal estate 67,938 25,187 5,744 147,058 55,116 13,144,975 13,446,018 (172)- mortgage

Equity lines 16,382 6,244 3,295 33,354 - 2,552,075 2,611,350 536of credit

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 - 34,553 19,738 15,196 7,160 14,898 2,184,500 2,276,045 51,726direct

Consumer - 76,547 24,249 9,040 28,721 - 3,957,471 4,096,028 21,051indirect

Total loans $ 265,574 $ 98,392 $ 61,774 $ 676,716 $ 97,739 $ 66,339,219 $ 67,539,414 $ 111,798

Loans held $ - $ - $ - $ - $ - $ 117,752 $ 117,752 $ -for sale

At or Quarter Ended December 31, 2019

30-59 Days Past 60-89 Days Past 90 Days or More Past Nonaccrual Accruing Not Past Due or Total Net Charge Offs Due Due Due TDRs Impaired (Recoveries)

Commercial,financial $ 29,273 $ 16,462 $ 6,692 $ 268,288 $ 1,456 $ 24,110,067 $ 24,432,238 $ 37,788andagricultural

Real estate- 7,603 2 571 8,041 72 2,012,393 2,028,682 (126)construction

Commercialreal estate 5,325 5,458 6,576 98,077 3,414 13,742,628 13,861,478 (285)- mortgage

Residentialreal estate 72,571 21,909 4,641 147,337 57,165 13,230,331 13,533,954 107- mortgage

Equity lines 15,766 6,581 1,567 38,113 - 2,530,653 2,592,680 857of credit

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 - 33,658 20,703 18,358 6,555 12,438 2,246,430 2,338,142 58,190direct

Consumer - 83,966 28,430 9,730 31,781 - 3,758,443 3,912,350 27,275indirect

Total loans $ 262,293 $ 109,787 $ 71,126 $ 606,843 $ 98,315 $ 62,798,493 $ 63,946,857 $ 140,703

Loans held $ - $ - $ - $ - $ - $ 112,058 $ 112,058 $ -for sale

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 $ 1,249,954 $ 1,035,307 $ 1,019,127 $ 1,033,733 $ 1,149,734from banks

Federal fundssold,securitiespurchasedunder 13,357,954 14,041,538 11,738,063 4,479,535 5,788,964agreements toresell andinterestbearingdeposits

Cash and cash 14,607,908 15,076,845 12,757,190 5,513,268 6,938,698equivalents

Trading 762,449 926,497 1,016,966 1,009,130 473,976account assets

Debtsecurities 5,744,919 6,028,072 5,765,192 6,344,816 7,235,305available forsale

Debtsecurities 10,549,945 9,428,931 8,693,437 7,876,266 6,797,046held tomaturity, net

Loans held for 236,586 253,454 245,851 117,752 112,058sale

Loans 65,559,767 66,180,612 68,241,500 67,539,414 63,946,857

Allowance for (1,679,474) (1,804,423) (1,754,352) (1,351,072) (920,993)loan losses

Net loans 63,880,293 64,376,189 66,487,148 66,188,342 63,025,864

Premises and 1,055,525 1,063,923 1,070,358 1,068,741 1,087,698equipment, net

Bank owned 757,943 758,391 754,908 754,409 750,224life insurance

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 $ 27,791,421 $ 26,803,670 $ 25,978,354 $ 20,418,504 $ 21,850,216bearing

Interest 58,066,960 59,567,362 59,448,060 56,816,003 53,135,067bearing

Total deposits 85,858,381 86,371,032 85,426,414 77,234,507 74,985,283

FHLB and other 3,548,492 3,560,973 3,571,933 3,790,137 3,690,044borrowings

Federal fundspurchased andsecurities 184,478 189,474 249,481 409,784 173,028sold underagreements torepurchase

Othershort-term - - 1,619 - -borrowings

Accruedexpenses and 1,473,490 2,136,479 1,747,380 1,532,777 1,368,403otherliabilities

Total 91,064,841 92,257,958 90,996,827 82,967,205 80,216,758liabilities

Shareholder'sEquity:

Preferred 229,475 229,475 229,475 229,475 229,475stock

Common stock -$0.01 par 2,230 2,230 2,230 2,230 2,230value

Surplus 14,032,205 14,032,321 14,035,607 14,039,572 14,043,727

Retained (2,931,151) (3,264,295) (3,430,135) (3,305,226) (917,227)deficit

Accumulatedother 329,105 365,374 404,165 362,339 (1,072)comprehensiveincome (loss)

Total BBVA USABancshares,Inc. 11,661,864 11,365,105 11,241,342 11,328,390 13,357,133shareholder'sequity

Noncontrolling 29,498 29,859 29,447 29,964 29,456interests

Totalshareholder's 11,691,362 11,394,964 11,270,789 11,358,354 13,386,589equity

Totalliabilitiesand $ 102,756,203 $ 103,652,922 $ 102,267,616 $ 94,325,559 $ 93,603,347shareholder'sequity

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

Interestincome:

Interest and $ 626,900 $ 644,643 $ 669,767 $ 715,476 $ 738,140fees on loans

Interest ondebtsecurities 22,089 19,474 18,805 (1,492) 33,333available forsale

Interest ondebtsecurities 60,812 49,981 39,800 41,102 43,097held tomaturity

Interest ontrading 793 892 1,157 1,122 1,326account assets

Interest anddividends on 7,080 6,436 14,016 42,175 39,915other earningassets

Total interest 717,674 721,426 743,545 798,383 855,811income

Interestexpense:

Interest on 33,945 61,147 97,279 164,742 189,345deposits

Interest onFHLB and other 14,092 14,644 21,936 21,176 31,263borrowings

Interest onfederal fundspurchased andsecurities 2,350 3,736 12,274 22,658 11,850sold underagreements torepurchase

Interest onother 85 49 39 352 199short-termborrowings

Total interest 50,472 79,576 131,528 208,928 232,657expense

Net interest 667,202 641,850 612,017 589,455 623,154income

Provision for (81,298) 150,977 539,459 356,991 119,505credit losses

Net interestincome after 748,500 490,873 72,558 232,464 503,649provision forcredit losses

Noninterestincome:

Servicecharges on 59,309 54,710 44,233 61,531 64,585depositaccounts

Card andmerchant 49,961 48,628 43,416 50,091 50,805processingfees

Investmentservices sales 26,647 26,218 24,971 34,407 28,130fees

Investmentbanking and 26,291 40,013 45,061 26,731 15,720advisory fees

Money transfer 29,446 27,109 25,461 24,548 25,871income

Assetmanagement 12,613 12,024 11,560 11,904 11,532fees

Corporate andcorrespondent 16,268 3,478 18,855 10,717 14,263investmentsales

Mortgage 19,753 13,741 23,868 17,451 9,048banking

Bank owned 5,458 4,972 5,094 4,625 4,584life insurance

Investmentsecurities - - 3,477 19,139 -gains, net

Other 55,670 53,767 26,358 73,098 48,046

Totalnoninterest 301,416 284,660 272,354 334,242 272,584income

Noninterestexpense:

Salaries,benefits and 301,020 296,708 251,697 310,136 297,823commissions

Professional 80,535 78,018 78,100 70,220 82,343services

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 20,764 18,897 17,958 17,136 17,951expense

Marketing 10,170 9,283 8,778 11,899 12,888

Communications 5,038 5,542 5,808 5,371 5,179

Goodwill - - - 2,185,000 470,000impairment

Other 50,180 77,242 110,772 104,774 92,594

Totalnoninterest 577,580 595,628 579,450 2,809,060 1,086,906expense

Net (loss)income before 472,336 179,905 (234,538) (2,242,354) (310,673)income taxexpense

Income tax(benefit) 138,519 13,664 (110,101) (5,069) 20,032expense

Net (loss) 333,817 166,241 (124,437) (2,237,285) (330,705)income

Less: netincomeattributable 673 401 472 501 663tononcontrollinginterests

Net (loss)incomeattributable $ 333,144 $ 165,840 $(124,909) $(2,237,786) $ (331,368)to BBVA USABancshares,Inc.

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SOURCE BBVA USA