PR Newswire | Apr 30, 2021 09:31AM EDT

04/30 08:30 CDT

BBVA USA Reports First Quarter 2021 Results HOUSTON, April 30, 2021

HOUSTON, April 30, 2021 /PRNewswire/ -- BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today net income of $385 million for the first quarter of 2021 compared to net income of $334 million in the fourth quarter of 2020 and net loss of $2.2 billion in the first quarter of 2020. Return on average assets and return on average tangible equity1 for the first quarter of 2021 were 1.49 percent and 16.57 percent, respectively.

"During the first quarter we delivered solid results while continuing to successfully navigate the challenges to our customers, communities and our employees brought about by the COVID-19 pandemic," said Javier Rodrguez Soler, president and CEO of BBVA USA. "Momentum continued in the quarter highlighted by stable revenue and well-contained expenses. At the same time, we continue to maintain strong liquidity and capital positions. We are 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 our employees."

Total revenue for the first quarter was $968 million, down slightly from fourth quarter 2020 levels and up 7 percent from first quarter 2020 levels. Net interest income in the quarter totaled $664 million compared to $667 million in the fourth quarter of 2020 and $589 million in the first quarter of 2020. The percent net interest margin for the first quarter of 2021 was 2.83 percent compared to 2.78 percent in the fourth quarter of 2020 and 2.80 percent in the first quarter of 2020. The increase in net interest margin reflects the efforts to reduce deposit costs and manage the lower interest rate environment.

Noninterest income (excluding securities gains) for the quarter totaled $304 million compared to $301 million in the fourth quarter of 2020 and $315 million for the first quarter of 2020. The increase in noninterest income on a linked quarter basis was driven by an increase in investment services sales fees (+$3 million) and money transfer income (+$3 million). Other noninterest income increased on a linked quarter basis (+$10 million), primarily as a result of a valuation adjustment to investments held by the company's small business investment company that negatively impacted fourth quarter 2020 levels. Following a strong fourth quarter, mortgage banking slowed on a linked quarter basis (-$5 million).

During the first quarter of 2021 and the fourth quarter of 2020 no gains or losses were recorded on investment securities while $19 million of gains on investment securities was recorded in the first quarter of 2020.

Total noninterest expense was $619 million in the first quarter of 2021 compared to $578 million in the fourth quarter of 2020 and $624 million, excluding goodwill impairment, in the first quarter of 2020. The rise in noninterest expense was driven by an increase in salaries, benefits and commissions on a linked quarter basis.

Operating income1 in the quarter totaled $349 million, down 43 percent annualized from the fourth quarter of 2020 and up 16 percent from the first quarter 2020 levels.

Total loans at the end of the first quarter of 2021 were $64.3 billion, down 9 percent (annualized) from $65.8 billion at the end of the fourth quarter of 2020 and down 5 percent from the $67.7 billion at the end of the first quarter of 2020. During the quarter, newly funded loans totaled $4.6 billion, which was flat compared to the same time period a year ago.

Deposit growth continued in the quarter with total deposits ending the quarter at $86.0 billion, up slightly from fourth quarter of 2020 and up $8.7 billion or 11 percent compared to the first quarter of 2020. Low-cost deposits were a key driver of deposit growth as noninterest bearing deposits ended the quarter at $29.5 billion, up 26 percent (annualized) on a linked quarter basis and up $9.1 billion or 45 percent compared to the first quarter of 2020.

As a result of deposit growth outpacing loan growth, the loan to deposit ratio ended the first quarter of 2021 at 76.4 percent compared to 77.1 percent at the end of the fourth quarter of 2020 and 86.6 percent at the end of the first quarter of 2020.

During the first quarter of 2021, the company recorded provision recapture of credit losses totaling $120 million compared to provision recapture of credit losses of $81 million in the fourth quarter of 2020 and provision for credit losses of $357 million in the first quarter of 2020. The recapture of provision expense primarily reflected improvements in macroeconomic factors and forecasts. Net charge-offs as a percentage of average total loans were 38 basis points in the quarter compared to 34 basis points in the fourth quarter of 2020 and 69 basis points in the first quarter of 2020. The allowance for loan losses as a percentage of total loans at the end of the quarter was 2.34 percent compared to 2.56 percent at the end of the fourth quarter of 2020 and 2.00 percent in the year ago quarter.

Nonperforming loans as a percentage of total loans ended the first quarter of 2021 at 2.18 percent, down from the 2.21 percent at the end of the fourth quarter of 2020 and up from the 1.09 percent at the end of the first quarter of 2020. The coverage ratio of nonperforming loans ended the quarter at 107 percent compared to 116 percent at the end of the fourth quarter of 2020 and 183 percent at the end of the first quarter of 2020.

The CET12 ratio ended the quarter at 14.23 percent compared to 13.28 percent at the end of the fourth quarter of 2020 and 11.97 percent at the end of the first quarter of 2020. All of BBVA USA's regulatory capital ratios2 continue to exceed the requirements under "well-capitalized" guidelines.

Return on average tangible equity and operating income are Non-GAAP financial^ measures we believe aid in understanding certain areas of our performance.1 The calculation of these measures is included on the page titled Non-GAAP Reconciliation.

^ Regulatory capital ratios at March 31, 2021, are estimated.2

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 BBVABBVA is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, 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 Garanti BBVA. Its 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. Its responsible banking model aspires to achieve a more inclusive and sustainable society.

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 25, 2021, as updated by our subsequent SEC filings.

BBVA USA BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)

Three Months Ended March 31, %

2021 2020 Change

EARNINGSSUMMARY

Net interest $ 664,268 $ 589,455 13income

Noninterest 303,701 315,103 (4)income [a]

Total revenue 967,969 904,558 7[a]

Investmentsecurities - 19,139 NM gain, net

(Credit)provision for (120,142) 356,991 (134)credit losses

Goodwill - 2,185,000 NM impairment

Noninterest 618,990 624,060 (1)expense

Pretax income 469,121 (2,242,354) (121)(loss)

Income taxexpense 83,660 (5,069) (1,750)(benefit)

Net income $ 385,461 $ (2,237,285) (117)(loss)

Adjusted netincome (loss) $ 385,461 $ (52,285) (837)[b]

SELECTEDRATIOS

Return onaverage 1.49 % (9.34)%assets

Return onaverage 1.49 (0.22)assets-adjusted [b]

Return onaverage 16.57 (100.27)tangibleequity [b]

Return onaveragetangible 16.57 (2.34)equity-adjusted [b]

Efficiency 63.26 68.08ratio [b]

Averagecommon equity 10.97 13.74to averageassets

Average loansto average 76.42 86.64totaldeposits

Common equitytier I 14.23 11.97capital(CET1) [c]

Tier Icapital ratio 14.58 12.29[c]

Total capital 16.79 14.62ratio [c]

Leverage 9.38 9.40ratio [c]

Average for Three Months Ending Balance

Ended March 31, % March 31, %

2021 2020 Change 2021 2020 Change

BALANCE SHEET HIGHLIGHTS

Total loans $65,153,535 $64,875,095 - $64,255,812 $67,657,166 (5)

Total debt 16,746,569 13,893,355 21 17,750,050 14,222,974 25securities

Earning 96,941,424 86,504,508 12 97,469,717 87,388,951 12assets

Total assets 105,140,201 96,356,113 9 103,983,398 94,325,559 10

Noninterestbearing 28,497,062 20,293,503 40 29,543,118 20,418,504 45demanddeposits

Interestbearing 52,587,472 43,676,781 20 52,659,858 46,318,129 14transactionaccounts

Totaltransaction 81,084,534 63,970,284 27 82,202,976 66,736,633 23accounts

Total 85,253,105 74,881,825 14 85,970,954 77,234,507 11deposits

Totalshareholder's 11,798,389 13,500,615 (13) 12,019,055 11,358,354 6equity

Totalshareholder's 9,435,176 8,973,871 5 9,649,315 8,998,814 7equity -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)

2021 2020

March 31 December 31 September 30 June 30 March 31

NONPERFORMINGASSETS

Nonaccrual $1,300,882 $ 1,331,230 $ 1,233,040 $ 764,744 $ 676,716loans [a]

Loans 90 daysor more past 100,405 121,570 94,072 66,163 61,774due [b]

TDRs 90 daysor more past 636 556 830 423 335due

Totalnonperforming 1,401,923 1,453,356 1,327,942 831,330 738,825loans [a]

Foreclosed 10,965 11,448 15,051 14,871 20,642real estate

Otherrepossessed 4,712 5,846 8,527 8,599 13,338assets

Totalnonperforming $1,417,600 $ 1,470,650 $ 1,351,520 $ 854,800 $ 772,805assets

TDRs accruingand past due $ 199,653 $ 114,334 $ 114,583 $ 95,788 $ 97,404less than 90days

Totalnonperforming 2.18 % 2.21 % 2.00 % 1.21 % 1.09 %loans as a %of loans

Totalnonperformingassets as a %of totalloans, 2.21 2.23 2.03 1.25 1.14foreclosedreal estate,and otherrepossessedassets

Three Months Ended

2021 2020

March 31 December 31 September 30 June 30 March 31

ALLOWANCE FORLOAN LOSSES

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

Adoption of - - - - 184,931ASC 326

Netcharge-offs 60,632 56,578 100,818 123,054 111,798(NCO)

(Credit)provision for (119,933) (68,371) 150,889 526,334 356,946loan losses

Balance at $1,498,909 $ 1,679,474 $ 1,804,423 $1,754,352 $1,351,072end of period

Allowance forloan losses 2.34 % 2.56 % 2.73 % 2.57 % 2.00 %as a % oftotal loans

Allowance forloan lossesas a % of 106.92 115.56 135.88 211.03 182.87nonperformingloans [c]

Allowance forloan lossesas a % of 105.74 114.20 133.51 205.24 174.83nonperformingassets [c]

Annualized asa % ofaverageloans:

NCO - QTD 0.38 0.34 0.59 0.72 0.69

NCO - YTD 0.38 0.59 0.67 0.71 0.69

[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 March 31,

2021 2020

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

YIELD/RATEANALYSIS

(TaxableEquivalentBasis)

Assets

Earningassets:

Loans $ 65,153,535 $ 616,137 3.84 $ 64,875,095 $ 726,532 4.50 % %

Debtsecurities 5,232,378 24,437 1.89 6,669,560 (1,492) (0.09)available forsale [a]

Debtsecurities 11,410,498 63,779 2.27 7,192,165 42,080 2.35held tomaturity

Otherearning 15,041,320 6,190 0.17 7,736,058 43,297 2.25assets [b]

Totalearning 96,837,731 710,543 2.98 86,472,878 810,417 3.77assets [a]

Allowance for (1,666,293) (1,064,750)credit losses

Unrealizedgain on debtsecurities 103,693 31,630available forsale

Other assets 9,865,070 10,916,355

Total assets $ 105,140,201 $ 96,356,113

LiabilitiesandShareholder'sEquity

Interestbearingliabilities:

Interestbearing $ 15,392,159 $ 6,173 0.16 $ 11,698,488 $ 24,551 0.84demanddeposits

Savings andmoney market 37,195,313 8,095 0.09 31,978,293 84,792 1.07accounts

Certificatesand other 4,168,571 6,077 0.59 10,911,541 55,399 2.04time deposits

Totalinterest 56,756,043 20,345 0.15 54,588,322 164,742 1.21bearingdeposits

FHLB andother 3,534,609 14,516 1.67 3,736,201 21,176 2.28borrowings

Federal fundspurchased andsecuritiessold under 1,358,857 576 0.17 1,451,501 22,658 6.28agreement torepurchase[b]

Othershort-term 4,413 389 35.75 20,037 352 7.07borrowings

Totalinterest 61,653,922 35,826 0.24 59,796,061 208,928 1.41bearingliabilities

Noninterestbearing 28,497,062 20,293,503deposits

Othernoninterest 3,190,828 2,765,934bearingliabilities

Total 93,341,812 82,855,498liabilities

Shareholder's 11,798,389 13,500,615equity

Totalliabilitiesand $ 105,140,201 $ 96,356,113shareholder'sequity

Net interestincome/ net 674,717 2.74 601,489 2.36 %interest %spread

Net yield on 2.83earning % 2.80 %assets

Totaltaxable 10,449 12,034equivalentadjustment

Netinterest $ 664,268 $ 589,455income

[a] Excludes adjustment for market valuation.

[b] Yield/rate reflects impact of balance sheet offsetting.

BBVA USA BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Three Months Three Months Ended

Ended March 31, % 2021 2020

2021 2020 Change March 31 December 31 September 30 June 30 March 31

NONINTERESTINCOME

Servicecharges on $ 54,874 $ 61,531 (11) $ 54,874 $ 59,309 $ 54,710 $ 44,233 $ 61,531depositaccounts

Card andmerchant 49,245 50,091 (2) 49,245 49,961 48,628 43,416 50,091processingfees

Investmentservices sales 29,446 34,407 (14) 29,446 26,647 26,218 24,971 34,407fees

Investmentbanking and 26,783 26,731 - 26,783 26,291 40,013 45,061 26,731advisory fees

Money transfer 32,040 24,548 31 32,040 29,446 27,109 25,461 24,548income

Corporate andcorrespondent 13,683 10,717 28 13,683 16,268 3,478 18,855 10,717investmentsales

Assetmanagement 12,587 11,904 6 12,587 12,613 12,024 11,560 11,904fees

Mortgage 14,692 17,451 (16) 14,692 19,753 13,741 23,868 17,451banking

Bank owned 4,691 4,625 1 4,691 5,458 4,972 5,094 4,625life insurance

Other 65,660 73,098 (10) 65,660 55,670 53,767 26,358 73,098

303,701 315,103 (4) 303,701 301,416 284,660 268,877 315,103

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

Totalnoninterest $303,701 $ 334,242 (9) $303,701 $ 301,416 $ 284,660 $272,354 $ 334,242income

NONINTERESTEXPENSE

Salaries,benefits and $338,695 $ 310,136 9 $338,695 $ 301,020 $ 296,708 $251,697 $ 310,136commissions

Equipment 67,334 64,681 4 67,334 69,321 68,793 64,752 64,681

Professional 82,002 70,220 17 82,002 80,535 78,018 78,100 70,220services

Net occupancy 40,903 39,843 3 40,903 40,552 41,145 41,585 39,843

Money transfer 23,332 17,136 36 23,332 20,764 18,897 17,958 17,136expense

Marketing 5,471 11,899 (54) 5,471 10,170 9,283 8,778 11,899

Communications 4,730 5,371 (12) 4,730 5,038 5,542 5,808 5,371

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

Other 56,523 104,774 (46) 56,523 50,180 77,242 110,772 104,774

Totalnoninterest $618,990 $2,809,060 (78) $618,990 $ 577,580 $ 595,628 $579,450 $2,809,060expense

NM = Not meaningful

BBVA USA BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)

Three Months Three Months Ended

Ended March 31, 2021 2020

2021 2020 March 31 December 31 September 30 June 30 March 31

NON-GAAPRECONCILIATION

Computation ofOperatingIncome:

Net interest $ 664,268 $ 589,455 $ 664,268 $ 667,202 $ 641,850 $ 612,017 $ 589,455income (GAAP)

Plus:noninterest 303,701 334,242 303,701 301,416 284,660 272,354 334,242income (GAAP)

Less:noninterest 618,990 2,809,060 618,990 577,580 595,628 579,450 2,809,060expense (GAAP)

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

Operatingincome $ 348,979 $ 299,637 $ 348,979 $ 391,038 $ 330,882 $ 304,921 $ 299,637(non-GAAP)

Computation ofTangibleShareholder'sEquity:

Totalshareholder's $ 12,019,055 $11,358,354 $ 12,019,055 $ 11,691,362 $ 11,394,964 $ 11,270,789 $11,358,354equity

Less: goodwilland other 2,369,740 2,359,540 2,369,740 2,358,973 2,357,039 2,357,343 2,359,540intangibles(GAAP)

Tangibleshareholder's $ 9,649,315 $ 8,998,814 $ 9,649,315 $ 9,332,389 $ 9,037,925 $ 8,913,446 $ 8,998,814equity(non-GAAP)

Computation ofAverageTangibleEquity:

Totalstockholder'sequity $ 11,798,389 $13,500,615 $ 11,798,389 $ 11,595,287 $ 11,394,928 $ 11,533,007 $13,500,615(average)(GAAP)

Less: goodwilland otherintangibles 2,363,213 4,526,744 2,363,213 2,358,697 2,357,944 2,357,132 4,526,744(average)(GAAP)

Averagetangible $ 9,435,176 $ 8,973,871 $ 9,435,176 $ 9,236,590 $ 9,036,984 $ 9,175,875 $ 8,973,871equity(non-GAAP) [B]

Net income(loss) (GAAP) $ 385,461 $ (2,237,285) $ 385,461 $ 333,817 $ 166,241 $ (124,437) $ (2,237,285)[A]

Return onaveragetangibleequity 16.57 % (100.27)% 16.57 % 14.38 % 7.32 % (5.45)% (100.27)%(non-GAAP)([A]/[B],annualized)

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

Net income $ 385,461 $ (2,237,285) $ 385,461 $ 333,817 $ 166,241 $ (124,437) $ (2,237,285)(loss) (GAAP)

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

Adjusted netincome $ 385,461 $ (52,285) $ 385,461 $ 333,817 $ 166,241 $ (124,437) $ (52,285)(non-GAAP) [C]

Average assets $ 105,140,201 $96,356,113 $105,140,201 $104,835,589 $ 104,282,898 $104,204,062 $96,356,113(GAAP) [D]

Return onaverage assets- adjusted 1.49 % (0.22)% 1.49 % 1.27 % 0.63 % (0.48)% (0.22)%(non-GAAP)([C]/[D],annualized)

Return onaveragetangibleequity - 16.57 (2.34) 16.57 14.38 7.32 (5.45) (2.34)adjusted(non-GAAP)([C]/[B],annualized)

Computation ofEfficiencyRatio:

Noninterest $ 618,990 $ 2,809,060 $ 618,990 $ 577,580 $ 595,628 $ 579,450 $ 2,809,060expense (GAAP)

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

Total expense $ 618,990 $ 624,060 $ 618,990 $ 577,580 $ 595,628 $ 579,450 $ 624,060(GAAP) [E]

Net interestincome,taxable $ 674,717 $ 601,489 $ 674,717 $ 677,798 $ 652,660 $ 623,242 $ 601,489equivalentbasis

Plus:noninterest 303,701 334,242 303,701 301,416 284,660 272,354 334,242income (GAAP)

Less:investmentsecurities - 19,139 - - - 3,477 19,139gains, net(GAAP)

Total revenue $ 978,418 $ 916,592 $ 978,418 $ 979,214 $ 937,320 $ 892,119 $ 916,592[F]

Efficiencyratio 63.26 % 68.08 % 63.26 % 58.98 % 63.55 % 64.95 % 68.08 %(non-GAAP)([E]/[F])

BBVA USA BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

At or Quarter Ended March 31, 2021

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

Commercial,financial $ 17,433 $ 19,078 $ 12,609 $ 529,703 $ 77,466 $ 25,312,956 $25,969,245 $ 1,207andagricultural

Real estate- 2,538 - 532 25,265 142 2,367,527 2,396,004 (151)construction

Commercialreal estate 703 253 7,790 418,935 26,746 12,957,845 13,412,272 18- mortgage

Residentialreal estate 40,315 19,696 41,590 235,441 53,568 12,433,031 12,823,641 423- mortgage

Equity lines 8,325 2,642 1,972 45,744 - 2,259,525 2,318,208 (228)of credit

Equity loans 665 223 134 8,844 19,326 136,017 165,209 459

Credit card 8,378 6,442 22,847 - - 774,575 812,242 17,932

Consumer - 17,028 9,438 8,339 13,098 23,041 1,726,141 1,797,085 30,159direct

Consumer - 30,024 8,513 4,592 23,852 - 4,199,355 4,266,336 10,813indirect

Total loans $ 125,409 $ 66,285 $ 100,405 $1,300,882 $ 200,289 $ 62,166,972 $63,960,242 $ 60,632

Loans held $ - $ - $ - $ - $ - $ 295,570 $ 295,570 $ -for sale

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 $ 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

BBVA USA BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

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 $ 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 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 $ 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

BBVA USA BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)

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 $ 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

BBVA USA BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)

2021 2020

March 31 December 31 September 30 June 30 March 31

Assets:

Cash and due $ 1,044,788 $ 1,249,954 $ 1,035,307 $ 1,019,127 $ 1,033,733from banks

Federal fundssold,securitiespurchasedunder 14,097,936 13,357,954 14,041,538 11,738,063 4,479,535agreements toresell andinterestbearingdeposits

Cash and cash 15,142,724 14,607,908 15,076,845 12,757,190 5,513,268equivalents

Trading 561,187 762,449 926,497 1,016,966 1,009,130account assets

Debtsecurities 5,408,087 5,744,919 6,028,072 5,765,192 6,344,816available forsale

Debtsecurities 12,339,994 10,549,945 9,428,931 8,693,437 7,876,266held tomaturity, net

Loans held for 295,570 236,586 253,454 245,851 117,752sale

Loans 63,960,242 65,559,767 66,180,612 68,241,500 67,539,414

Allowance for (1,498,909) (1,679,474) (1,804,423) (1,754,352) (1,351,072)loan losses

Net loans 62,461,333 63,880,293 64,376,189 66,487,148 66,188,342

Premises and 1,028,385 1,055,525 1,063,923 1,070,358 1,068,741equipment, net

Bank owned 759,219 757,943 758,391 754,908 754,409life insurance

Goodwill 2,328,296 2,328,296 2,328,296 2,328,296 2,328,296

Other assets 3,658,603 2,832,339 3,412,324 3,148,270 3,124,539

Total assets $103,983,398 $ 102,756,203 $ 103,652,922 $102,267,616 $ 94,325,559

Liabilities:

Deposits:

Noninterest $ 29,543,118 $ 27,791,421 $ 26,803,670 $ 25,978,354 $ 20,418,504bearing

Interest 56,427,836 58,066,960 59,567,362 59,448,060 56,816,003bearing

Total deposits 85,970,954 85,858,381 86,371,032 85,426,414 77,234,507

FHLB and other 3,517,567 3,548,492 3,560,973 3,571,933 3,790,137borrowings

Federal fundspurchased andsecurities 966,336 184,478 189,474 249,481 409,784sold underagreements torepurchase

Othershort-term - - - 1,619 -borrowings

Accruedexpenses and 1,509,486 1,473,490 2,136,479 1,747,380 1,532,777otherliabilities

Total 91,964,343 91,064,841 92,257,958 90,996,827 82,967,205liabilities

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 14,039,261 14,032,205 14,032,321 14,035,607 14,039,572

Retained (2,546,271) (2,931,151) (3,264,295) (3,430,135) (3,305,226)deficit

Accumulatedother 264,206 329,105 365,374 404,165 362,339comprehensiveincome

Total BBVA USABancshares,Inc. 11,988,901 11,661,864 11,365,105 11,241,342 11,328,390shareholder'sequity

Noncontrolling 30,154 29,498 29,859 29,447 29,964interests

Totalshareholder's 12,019,055 11,691,362 11,394,964 11,270,789 11,358,354equity

Totalliabilitiesand $103,983,398 $ 102,756,203 $ 103,652,922 $102,267,616 $ 94,325,559shareholder'sequity

BBVA USA BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)

Three Months Ended

2021 2020

March 31 December 31 September 30 June 30 March 31

Interestincome:

Interest and $606,407 $ 626,900 $ 644,643 $ 669,767 $ 715,476fees on loans

Interest ondebtsecurities 24,437 22,089 19,474 18,805 (1,492)available forsale

Interest ondebtsecurities 63,060 60,812 49,981 39,800 41,102held tomaturity

Interest ontrading 1,021 793 892 1,157 1,122account assets

Interest anddividends on 5,169 7,080 6,436 14,016 42,175other earningassets

Total interest 700,094 717,674 721,426 743,545 798,383income

Interestexpense:

Interest on 20,345 33,945 61,147 97,279 164,742deposits

Interest onFHLB and other 14,516 14,092 14,644 21,936 21,176borrowings

Interest onfederal fundspurchased andsecurities 576 2,350 3,736 12,274 22,658sold underagreements torepurchase

Interest onother 389 85 49 39 352short-termborrowings

Total interest 35,826 50,472 79,576 131,528 208,928expense

Net interest 664,268 667,202 641,850 612,017 589,455income

(Credit)provision for (120,142) (81,298) 150,977 539,459 356,991credit losses

Net interestincome after(credit) 784,410 748,500 490,873 72,558 232,464provision forcredit losses

Noninterestincome:

Servicecharges on 54,874 59,309 54,710 44,233 61,531depositaccounts

Card andmerchant 49,245 49,961 48,628 43,416 50,091processingfees

Investmentservices sales 29,446 26,647 26,218 24,971 34,407fees

Investmentbanking and 26,783 26,291 40,013 45,061 26,731advisory fees

Money transfer 32,040 29,446 27,109 25,461 24,548income

Assetmanagement 12,587 12,613 12,024 11,560 11,904fees

Corporate andcorrespondent 13,683 16,268 3,478 18,855 10,717investmentsales

Mortgage 14,692 19,753 13,741 23,868 17,451banking

Bank owned 4,691 5,458 4,972 5,094 4,625life insurance

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

Other 65,660 55,670 53,767 26,358 73,098

Totalnoninterest 303,701 301,416 284,660 272,354 334,242income

Noninterestexpense:

Salaries,benefits and 338,695 301,020 296,708 251,697 310,136commissions

Equipment 67,334 69,321 68,793 64,752 64,681

Professional 82,002 80,535 78,018 78,100 70,220services

Net occupancy 40,903 40,552 41,145 41,585 39,843

Money transfer 23,332 20,764 18,897 17,958 17,136expense

Marketing 5,471 10,170 9,283 8,778 11,899

Communications 4,730 5,038 5,542 5,808 5,371

Goodwill - - - - 2,185,000impairment

Other 56,523 50,180 77,242 110,772 104,774

Totalnoninterest 618,990 577,580 595,628 579,450 2,809,060expense

Net income(loss) before 469,121 472,336 179,905 (234,538) (2,242,354)income taxexpense

Income taxexpense 83,660 138,519 13,664 (110,101) (5,069)(benefit)

Net income 385,461 333,817 166,241 (124,437) (2,237,285)(loss)

Less: netincomeattributable 581 673 401 472 501tononcontrollinginterests

Net income(loss)attributable $384,880 $ 333,144 $ 165,840 $(124,909) $(2,237,786)to BBVA USABancshares,Inc.

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SOURCE BBVA USA