BBVA Compass in Houston reported a drop in second-quarter earnings, partly because of a larger loan-loss provision.
The $76 billion-asset bank, a unit of the Spanish company Banco Bilbao Vizcaya Argentaria, reported Wednesday that income totaled $107.6 million, or 16% lower than a year ago.
A sharp jump in the bank's set-aside for problem loans drove the decline. The provision for loan losses increased 87%, to $45.3 million. Net charge-offs fell 56%, to $32.8 million.
Lower loan yields also dragged down profits. Net interest income declined 2%, to $498.8 million. At the same time, total loans increased 15%, to $53.9 billion.
Noninterest income increased slightly, but not enough to offset the higher provision. Revenue from fees and service charges increased 3%, to $214 million.
Operating expenses declined 2%, to $545.3 million.