Compass Bancshares Announces Record Second Quarter Operating Earnings.BIRMINGHAM Birmingham, cities, United States Birmingham (bûr`mĭnghăm') 1 City (1990 pop. 265,968), seat of Jefferson co., N central Ala., in the Jones Valley near the southern end of the Appalachian system; founded and inc. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--July 16, 1997--Compass Bancshares, Inc. (NASDAQ/NMS:CBSS CBSS Council of Baltic Sea States CBSS Craft and Boat Support System CBSS Coastal Border Surveillance System (MSSC) CBSS Closed-Breach Scavenging System (compressed air system for removing smoke from tank gun tubes) ) today reported net income of $37.6 million for the quarter ended June June: see month. 30, 1997, an increase of 16 percent over the second quarter of 1996. Net income per share for the second quarter of 1997 increased 14 percent to $0.58 as compared to $0.51 for the second quarter of the previous year. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before , which exclude nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items, increased 15 percent to a record $37.0 million in the second quarter of 1997. Operating earnings per share for the second quarter increased 12 percent to $0.57 as compared to $0.51 for the same quarter one year ago. Return on average assets was 1.23 percent and return on average equity was 17.49 percent for the quarter ended June 30, 1997. Net income for the six months ended June 30, 1997 increased to $73.7 million from $70.6 million a year ago, and net income per share for the same period increased to $1.13 from $1.11. However, nonoperating gains of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5.8 million net of taxes were realized in the first half of 1996. Operating earnings, which exclude such nonoperating items, increased 13 percent to $73.2 million in the first half of 1997. Operating earnings per share for the most recent six-month period increased 11 percent to $1.13 as compared to $1.02 for the first six months of 1996. D. Paul Jones Paul Jones can refer to:
"Our record results can be attributed to the combination of balanced revenue growth and continued superior credit quality. Given the momentum provided by our geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. expansion efforts and increased focus resulting from last year's realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. along business lines, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the second half of 1997," Jones said. The balance sheet reflects solid growth as period-end total assets increased 10 percent to $12.4 billion at June 30, 1997 from $11.3 billion at June 30, 1996. Period-end earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin increased 11 percent from June 30, 1996 levels due primarily to a 14 percent increase in period-end loans. Specifically, earning assets grew to $11.5 billion from $10.4 billion and loans grew to $8.2 billion from $7.2 billion. Period-end deposits increased to $9.4 billion at June 30, 1997 versus $9.2 billion one year ago, and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. for the same time periods increased 19 percent to $886.2 million from $744.0 million. Acquisition activity continued during the first half of 1997 as Compass completed four acquisitions and announced one new acquisition. In Texas, Compass completed the acquisitions of Horizon Bancorp, Inc. of Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum with assets of $154 million; a banking office in Crosby, Texas Crosby is a census-designated place (CDP) in Harris County, Texas, United States. The population was 1,714 at the 2000 census. But what is widely considered Crosby (area code 77532) was approx. 20,000 people. with assets of $28 million; and Greater Brazos Valley The Brazos Valley is a region in the U.S. state of Texas (Central Texas) consisting of Brazos County, Robertson County, Grimes County, Washington County, Burleson County, Madison County, and Leon County, with Brazos County and the cities of College Station and Bryan at its center. Bancorp, Inc. of Bryan/College Station with assets of $58 million. Additionally, Compass announced the acquisition of Central Texas Bancorp, Inc. of Waco with assets of $206 million. This acquisition was completed on July July: see month. 15th. As a result of its ongoing geographic expansion program, Compass has established strong core franchises in the Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , Dallas-Ft. Worth, San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. and Austin metropolitan markets as well as a growing presence in several other rapidly growing markets along the I-35 corridor The I-35 Corridor is a megalopolis in the southern plains region of the United States. It runs from San Antonio, Texas to Kansas City, Missouri along Interstate 35. The corridor includes the cities of Austin, Dallas-Fort Worth, Oklahoma City, Tulsa, and Wichita. and east Texas. In Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , Compass completed the acquisition of Enterprise National Bank of Jacksonville Jacksonville. 1 City (1990 pop. 29,101), Pulaski co., central Ark., inc. 1941. The city has varied industries, including printing and publishing and the manufacture of electronic equipment, ordnance, and plastic and metal products. with assets of $171 million. As a result, Compass is now the third largest bank in Jacksonville with 21 full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. offices. Once all new offices under construction are completed, Compass will operate 105 banking offices in Texas with assets of $4.9 billion, 88 banking offices in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). with assets of $6.5 billion, and 34 banking offices in Florida with assets of $1.2 billion. Shares of Compass Bancshares Compass Bancshares, Inc. is a privately held company based in Birmingham, Alabama. Its subsidiary, Compass Bank, is a Southwestern financial holding company with $47 billion in assets and 417 full-service banking offices in Alabama, Arizona, Colorado, Florida, New Mexico, and Texas. , Inc.'s common stock are traded in the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on national market system under the symbol CBSS. -0-
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months
Ended June 30 %
1997 1996 Change
FINANCIAL HIGHLIGHTS
Net income $ 37,597 $ 32,347
Nonoperating items, net of tax(b) 561 72
Operating earnings $ 37,036 $ 32,275 15
Operating earnings per share $ 0.57 $ 0.51 12
Six Months
Ended June 30 %
1997 1996 Change
FINANCIAL HIGHLIGHTS
Net income $ 73,673 $ 70,557
Nonoperating items, net of tax(b) 511 5,752
Operating earnings $ 73,162 $ 64,805 13
Operating earnings per share $ 1.13 $ 1.02 11
Three Months
Ended June 30 %
1997 1996 Change
EARNINGS SUMMARY
Net interest income $118,502 $103,463 15
Provision for loan losses 4,449 5,245 (15)
Net interest income after provision 114,053 98,218 16
Noninterest income 42,583 35,673 19
Noninterest expense 97,859 83,867 17
Pretax income 58,777 50,024 17
Income tax expense 21,180 17,677 20
Net income $ 37,597 $ 32,347 16
Earnings per common share $ 0.58 $ 0.51 14
Primary weighted average common
shares outstanding 65,039 63,112 3
Six Months
Ended June 30 %
1997 1996 Change
EARNINGS SUMMARY
Net interest income $232,711 $203,802 14
Provision for loan losses 9,803 8,852 11
Net interest income after provision 222,908 194,950 14
Noninterest income 82,937 80,157 3
Noninterest expense 190,226 165,029 15
Pretax income 115,619 110,078 5
Income tax expense 41,946 39,521 6
Net income $ 73,673 $ 70,557 4
Earnings per common share $ 1.13 $ 1.11 2
Primary weighted average common
shares outstanding 64,926 63,704 2
Average for
Three Months
Ended June 30 %
BALANCE SHEET SUMMARY 1997 1996 Change
Total loans net of
unearned income $8,124,885 $7,078,268 15
Total investment securities 3,091,897(a) 2,986,864(a) 4
Earning assets 11,403,562(a) 10,292,540(a) 11
Total assets 12,276,983 11,099,622 11
Noninterest bearing deposits 1,690,344 1,560,491 8
Interest bearing deposits 7,572,393 7,252,888 4
Total deposits 9,262,737 8,813,379 5
Shareholders' equity 862,234 750,298 15
Average for
Six Months
Ended June 30 %
BALANCE SHEET SUMMARY 1997 1996 Change
Total loans net of
unearned income $7,940,887 $6,934,524 15
Total investment securities 3,122,100(a) 2,952,047(a) 6
Earning assets 11,240,505(a) 10,118,892(a) 11
Total assets 12,105,250 10,898,520 11
Noninterest bearing deposits 1,657,877 1,508,992 10
Interest bearing deposits 7,606,227 7,037,831 8
Total deposits 9,264,104 8,546,823 8
Shareholders' equity 853,269 762,685 12
Ending Balance
June 30 %
BALANCE SHEET SUMMARY 1997 1996 Change
Total loans net of
unearned income $8,249,794 $7,206,919 14
Total investment securities 3,053,842(a) 3,019,866(a) 1
Earning assets 11,546,056(a) 10,407,638(a) 11
Total assets 12,449,291 11,310,287 10
Noninterest bearing deposits 1,800,638 1,636,467 10
Interest bearing deposits 7,610,528 7,555,499 1
Total deposits 9,411,166 9,191,966 2
Shareholders' equity 886,158 743,981 19
1997
SELECTED RATIOS 2nd Qtr 1st Qtr
Average equity to
average assets 7.02 % 7.08 %
Average net loans to average
total deposits 87.72 83.70
Return on average assets 1.23 1.23
Return on average total equity 17.49 17.33
Book value per common share $ 13.79 $ 13.27
1996
SELECTED RATIOS 4th Qtr 3rd Qtr 2nd Qtr
Average equity to
average assets 6.89 % 6.75 % 6.76 %
Average net loans to average
total deposits 80.59 78.77 80.31
Return on average assets 1.13 0.92 1.17
Return on average total equity 16.33 13.60 17.34
Book value per common share $ 12.98 $ 12.58 $ 12.00
(a) Includes adjustment for market valuation on available-for-sale
securities of $(15,052), $(10,117), $(9,162), $3,705, $(1,452)
and $(14,180), respectively.
(b) 1997 includes securities transactions, litigation reserves and a
gain on sale of corporate trust; 1996 includes securities
transactions and a gain on sale of nonstrategic bank offices.
Prior periods have been restated to reflect poolings-of-interests.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
1997
NONPERFORMING ASSETS June 30 Mar 31
Nonaccrual loans $ 21,442 $ 18,431
Renegotiated loans 2,178 2,272
Other real estate, net 7,825 8,800
Total nonperforming assets $ 31,445 $ 29,503
Loans ninety days or more
past due $ 5,196 $ 6,868
Other repossessed assets $ 825 $ 1,201
Total nonperforming assets as
a percentage of loans and ORE 0.38 % 0.37 %
1996
NONPERFORMING ASSETS Dec 31 Sept 30 June 30
Nonaccrual loans $ 19,771 $ 23,121 $ 20,221
Renegotiated loans 2,591 2,622 929
Other real estate, net 7,883 6,579 10,468
Total nonperforming assets $ 30,245 $ 32,322 $ 31,618
Loans ninety days or more
past due $ 8,675 $ 6,272 $ 5,402
Other repossessed assets $ 850 $ 503 $ 446
Total nonperforming assets as
a percentage of loans and ORE 0.39 % 0.43 % 0.44 %
1997
2nd Qtr 1st Qtr
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $121,008 $120,868
Loans charged off 5,979 6,782
Loan recoveries 1,530 1,568
Net charge-offs 4,449 5,214
Balance due to acquisitions - -
Provision for loan losses 4,449 5,354
Balance at end of period $121,008 $121,008
Allowance for loan losses as
a percentage of total loans 1.47 % 1.52 %
Allowance for loan losses as
a percentage of nonperforming
assets 384.82 % 410.15 %
Annualized net charge-offs as
a percentage of average total
loans - QTD 0.22 % 0.27 %
Annualized net charge-offs as
a percentage of average total
loans - YTD 0.25 % 0.27 %
1996
4th Qtr 3rd Qtr 2nd Qtr
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $120,446 $118,239 $113,113
Loans charged off 6,585 6,121 6,726
Loan recoveries 1,421 1,507 1,583
Net charge-offs 5,164 4,614 5,143
Balance due to acquisitions 200 2,056 5,024
Provision for loan losses 5,386 4,765 5,245
Balance at end of period $120,868 $120,446 $118,239
Allowance for loan losses as
a percentage of total loans 1.56 % 1.60 % 1.64 %
Allowance for loan losses as
a percentage of nonperforming
assets 399.63 % 372.64 % 373.96 %
Annualized net charge-offs as
a percentage of average total
loans - QTD 0.27 % 0.25 % 0.29 %
Annualized net charge-offs as
a percentage of average total
loans - YTD 0.26 % 0.25 % 0.25 %
Prior periods have been restated to reflect poolings-of-interests.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months Ended June 30
1997
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
Assets
Earning assets:
Loans, net of unearned income $ 8,112,878 $178,388 8.82 %
Loans available for sale 12,007 219 7.32
Investment securities:
Taxable 1,052,130 19,151 7.30
Tax-exempt 87,436 1,838 8.43
---------- ---------
1,139,566 20,989 7.39
Investment securities available
for sale 1,967,383 32,433 6.61
Other earning assets 186,780 2,851 6.12
Total earning assets 11,418,614 234,880 8.25
Allowance for loan losses (121,008)
Unrealized gain (loss) on
securities available for sale (15,052)
Cash and other assets 994,429
----------
$12,276,983
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 455,121 2,706 2.38
Savings deposits 3,583,985 32,412 3.63
Time deposits 2,598,925 36,462 5.63
Certificates of deposit of
$100,000 or more 934,362 13,627 5.85
Federal funds purchased and
securities sold under agreement
to repurchase 921,268 12,458 5.42
Other short-term borrowings 210,541 2,965 5.65
FHLB and other borrowings 941,733 14,799 6.30
Total interest bearing liabilities 9,645,935 115,429 4.80
Net interest spread 119,451 3.45 %
Noninterest bearing demand deposits 1,690,344
Accrued expenses and other
liabilities 78,470
Shareholders' equity 862,234
----------
$12,276,983
Net yield on earning assets 4.20 %
Taxable equivalent adjustment:
Loans 198
Investment securities 674
Investment securities available
for sale 39
Other earning assets 38
Total taxable equivalent adjustment 949
Net interest income $118,502
Three Months Ended June 30
1996
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
Assets
Earning assets:
Loans, net of unearned income $ 7,061,203 $155,045 8.83 %
Loans available for sale 17,065 276 6.50
Investment securities:
Taxable 652,167 11,911 7.35
Tax-exempt 84,833 1,925 9.13
---------- ---------
737,000 13,836 7.55
Investment securities available
for sale 2,259,981 36,218 6.45
Other earning assets 227,408 3,508 6.20
Total earning assets 10,302,657 208,883 8.15
Allowance for loan losses (115,776)
Unrealized gain (loss) on
securities available for sale (10,117)
Cash and other assets 922,858
----------
$ 11,099,622
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 990,239 5,797 2.35
Savings deposits 2,626,724 26,115 4.00
Time deposits 2,658,594 37,626 5.69
Certificates of deposit of
$100,000 or more 977,331 13,679 5.63
Federal funds purchased and
securities sold under agreement
to repurchase 669,413 8,310 4.99
Other short-term borrowings 193,513 2,613 5.43
FHLB and other borrowings 613,117 10,277 6.74
Total interest bearing liabilities 8,728,931 104,417 4.81
Net interest spread 104,466 3.34 %
Noninterest bearing demand deposits 1,560,491
Accrued expenses and other
liabilities 59,902
Shareholders' equity 750,298
----------
$ 11,099,622
Net yield on earning assets 4.08 %
Taxable equivalent adjustment:
Loans 222
Investment securities 722
Investment securities available
for sale 33
Other earning assets 26
Total taxable equivalent adjustment 1,003
Net interest income $103,463
Prior periods have been restated to reflect poolings-of-interests.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Six Months Ended June 30
1997
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
Assets
Earning assets:
Loans, net of unearned income $ 7,928,471 $346,286 8.81 %
Loans available for sale 12,416 424 6.89
Investment securities:
Taxable 1,067,915 38,739 7.32
Tax-exempt 88,881 3,784 8.59
---------- ---------
1,156,796 42,523 7.41
Investment securities available
for sale 1,974,466 64,630 6.60
Other earning assets 177,518 5,387 6.12
Total earning assets 11,249,667 459,250 8.23
Allowance for loan losses (120,974)
Unrealized gain (loss) on
securities available for sale (9,162)
Cash and other assets 985,719
----------
$12,105,250
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 454,731 5,466 2.42
Savings deposits 3,601,280 64,498 3.61
Time deposits 2,630,528 72,952 5.59
Certificates of deposit of
$100,000 or more 919,688 26,403 5.79
Federal funds purchased and
securities sold under agreement
to repurchase 845,181 22,273 5.31
Other short-term borrowings 186,885 5,137 5.54
FHLB and other borrowings 872,057 27,876 6.45
Total interest bearing liabilities 9,510,350 224,605 4.76
Net interest spread 234,645 3.47 %
Noninterest bearing demand deposits 1,657,877
Accrued expenses and other
liabilities 83,754
Shareholders' equity 853,269
----------
$12,105,250
Net yield on earning assets 4.21 %
Taxable equivalent adjustment:
Loans 401
Investment securities 1,389
Investment securities available
for sale 83
Other earning assets 61
Total taxable equivalent adjustment 1,934
Net interest income $232,711
Six Months Ended June 30
1996
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
Assets
Earning assets:
Loans, net of unearned income $ 6,917,243 $304,569 8.85 %
Loans available for sale 17,281 556 6.47
Investment securities:
Taxable 642,388 23,376 7.32
Tax-exempt 81,844 3,795 9.32
---------- ---------
724,232 27,171 7.54
Investment securities available
for sale 2,224,110 73,043 6.60
Other earning assets 232,321 7,243 6.27
Total earning assets 10,115,187 412,582 8.20
Allowance for loan losses (113,965)
Unrealized gain (loss) on
securities available for sale 3,705
Cash and other assets 893,593
----------
$10,898,520
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 968,643 11,743 2.44
Savings deposits 2,533,094 50,521 4.01
Time deposits 2,613,036 74,507 5.73
Certificates of deposit of
$100,000 or more 923,058 26,358 5.74
Federal funds purchased and
securities sold under agreement
to repurchase 750,388 18,943 5.08
Other short-term borrowings 156,866 4,126 5.29
FHLB and other borrowings 614,024 20,591 6.74
Total interest bearing liabilities 8,559,109 206,789 4.86
Net interest spread 205,793 3.34 %
Noninterest bearing demand deposits 1,508,992
Accrued expenses and other
liabilities 67,734
Shareholders' equity 762,685
----------
$10,898,520
Net yield on earning assets 4.09 %
Taxable equivalent adjustment:
Loans 439
Investment securities 1,436
Investment securities available
for sale 75
Other earning assets 41
Total taxable equivalent adjustment 1,991
Net interest income $203,802
Prior periods have been restated to reflect poolings-of-interests.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months
Ended June 30 %
1997 1996 Change
NONINTEREST INCOME
Service charges on deposit accounts $ 17,429 $ 15,522 12
Trust fees 3,654 3,871 (6)
Trading account profits
and commissions 3,167 2,878 10
Investment securities losses, net (84) (28) NM
Retail investment sales 4,251 3,429 24
Other income 14,166 10,001 42
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