Count BBVA Compass as another bank that has suffered this year from bad energy loans.
BBVA Compass Bancshares, the holding company of BBVA Compass, on Friday reported net income of $122.5 million for the second quarter, a 13% decrease from the same period last year. Revenue for the bank was $760.8 million for the period ending June 30, up 1% over the prior-year quarter.
The $92.4 billion-asset company's provision for loan losses rose 88%, to $87 million, from the second quarter of 2015. Net chargeoffs were $66 million, up 149% from the year before.
BBVA Compass has pulled back from the energy sector following a recent spike in problem loans. Its total energy loans, most of which are in exploration and production, have shrunk by $419 million since March 31.
"[They] now represent 6% of our total loan portfolio, down from 6.7% at the end of the first quarter," Manolo Sánchez, the chairman and chief executive of BBVA Compass, said in a release. "At the same time, all of our other loan portfolios continue to perform within our expectations."
Indeed, even as the energy portion of its portfolio has suffered, the bank's total loan book has grown. Its average total loans were $62.4 billion at quarter's end, up about 5% from the second quarter of 2015.
The loan growth was fueled entirely by deposits, which increased 9%, to $68 billion, from the second quarter of 2015.
While BBVA Compass' ratio of nonperforming loans was 1.76% for the quarter, Sánchez pointed out that, excluding energy loans, the ratio was 0.77%.