Compass Bancshares Completes Acquisition of Arizona Bank; Marks Entry Into Nation's Second Fastest Growing State With Purchase of Largest Independent Bank.BIRMINGHAM, Ala.--(BUSINESS WIRE)--Dec. 15, 1998--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 completed the acquisition of Arizona Bank, the state's largest independent bank with $805 million in assets, $667 million in deposits and 29 full-service banking offices. The move marks Compass' strategic entry into the nation's second fastest growing state. Arizona Bank will retain its name and senior management team led by president David T.C. Wright, and will operate as a subsidiary 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. Under terms of the definitive agreement signed last July, Compass will exchange 4,350,000 shares of its common stock for all of the outstanding common stock of Arizona Bank and will issue preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to replace existing preferred stock of Arizona Bank. Headquartered in Tucson with a population of 800,000, Arizona Bank currently operates 17 banking offices in greater Tucson and Green Valley; four in Phoenix and one each in eight other Arizona cities. Compass will add another 15 full-service banking offices to Arizona Bank next April, including nine in the attractive Phoenix market which has a population of more than 2.5 million and ranks as the nation's sixth largest city. When this transaction is completed, Compass will have more than $1.4 billion in Arizona assets and rank fourth in statewide deposit market share. "This is an important day for Compass. We are entering a key expansion market with a strong presence and a well-managed, profitable franchise," Compass chairman and chief executive officer D. Paul Jones Paul Jones can refer to:
"We are very pleased to welcome Arizona Bank, its customers, employees and shareholders to the Compass family," Jones stated. "Compass shares Arizona Bank's strong commitment to outstanding customer service and dedication to the communities where we do business." Arizona Bank president Wright said, "This is a great day for Arizona Bank as well. By uniting with Compass, we can bring our customers a wide range of innovative products combined with the same level of personal service that they have come to expect from Arizona Bank for more than three decades. "As we move forward, we will be able to offer our customers retail investment services, asset management and an entire line of business banking products including treasury management services and those tailored for small businesses," Wright added. The Arizona Bank acquisition is expected to be $0.22 per share dilutive in 1998 including merger and integration charges. With the purchase of the 15 additional Arizona banking offices, the two transactions are expected to be $0.08 per share dilutive in 1999 including merger and integration charges. The transactions are expected to be breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations and accretive thereafter. Based in Birmingham, Alabama Birmingham (pronounced [ˈbɝmɪŋˌhæm]) is the largest city in the U.S. state of Alabama and is the county seat of Jefferson County. , Compass Bancshares operates 250 full-service Compass Bank offices in Alabama, Florida, and Texas as well as the 29 Arizona Bank offices and has more than 5,900 employees in the four states. On December 9th, Compass acquired Houston-based Albrecht & Associates, a firm providing specialized divestment divestment to strip one's investment from an entity. and advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to the oil and gas production industry. The company will operate as a wholly-owned subsidiary of Compass Bank and brings a new source of revenue to its energy banking group. Compass is among the top 50 U.S. bank holding companies by asset size and ranks among the top earners of its size based on return on equity. The company's earnings per share have increased for 10 consecutive years and dividends per share Dividends per share Dividend paid for the past 12 months divided by the number of common shares outstanding, as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term. have increased for 17 consecutive years. Compass reported record earnings of $136.4 million for the first nine months of 1998, and has a capital base of $1.1 billion. Shares of Compass' common stock are traded through 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. |
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