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Energy weighs on BBVA Compass

Houston-based BBVA Compass Bancshares Inc. on April 28 reported first-quarter netincome attributable to shareholders of $34.0million.

Incomparison, the company reported net income attributable to shareholders of$141.1 million in the year-ago period.

BBVA CompassChairman and CEO ManoloSánchez said in an earnings release that the first-quarter resultswere "clearly impacted" by prolonged low prices in energy andcontinued stress in the industry.

The bank's energy portfolio had $470.4 million innonaccruals out of a total of $4.15 billion as of March 31. All but about$475,000 of the nonaccruals were in the exploration and production sector. Asof Dec. 31, 2015, BBVA Compass had $3.84 billion outstanding in its energyportfolio with $92.5 million in nonaccruals — again with E&P-relatedlending making up the vast majority of those nonaccruals at $91.9 million.

The Banco Bilbao VizcayaArgentaria SA subsidiary recorded total nonperforming assets for the quarter at $906.5million, or 1.41% of loans, compared to $506.1 million, or 0.78%, in theprevious quarter and $450.7 million, or 0.73%, in the year-ago period.

Thenet interest margin ended the quarter at 2.73%, up 7 basis points from thefourth quarter of 2015. Net charge-offs in the period were $53.5 million compared to $35.8 million for theprior quarter, and $25.2 million in the same quarter a year ago. BBVA's provision for loan losses was$113.2 million compared to a provision of $76.3 million in the previous period,and $42.0 million in the year-ago period.