Profits at BBVA Compass Bancshares dipped in the third quarter as the Houston company continued to slash its energy portfolio.

The $90.9 billion-asset lender reported net income of $120 million, down 7.7% from the same period last year. Revenue increased 2% to $778.6 million.

Its provision for loan losses was $65.1 million, up 123% from the third quarter of last year but down 25% from the second quarter of 2016, an indication that the worst effects of the downturn in oil and gas this year now may be in the past.

Net chargeoffs displayed a similar trend. They were $46 million, an increase of 61.4% from the prior-year quarter but down 30.3% from the second quarter of 2016.

BBVA Compass' energy portfolio was cut to $3.3 billion at Sept. 30 from $3.7 billion three months earlier. It made up only 5.5% of the company's total outstanding loans in the latest report, compared with 6% of the total portfolio as of June 30 and 6.7% at the end of the first quarter.

"Our asset quality metrics continue to reflect our commitment to maintaining sound underwriting standards and a strong risk profile," Manolo Sánchez, the company's chairman and chief executive, said in a news release Thursday. "This commitment is reflected in the actions we have taken to address the stress on our energy portfolio as a result of a prolonged period of low oil prices."

Still, BBVA Compass has had a punishing 2016, with net income for the first nine months having fallen 32.2% to $282 million.

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