Compass Bancshares Reports Record Earnings for 2006 up 15%.

* Earnings reach all-time high of $460.4 million

* Record earnings per share of $3.53, up 11% from year ago

* Total revenue up 12%; net interest income up 15% from prior year levels

* Focused earning asset growth; average loans increase 18% from year ago

* Average deposits increase 20%; transaction account deposits increase 14% from year ago

* NCO ratio decreases to 0.32% from 0.48% for prior year; NPA ratio stable at 0.30%

BIRMINGHAM, Ala. -- Compass Bancshares, Inc. (Nasdaq: CBSS) today reported record earnings of $460.4 million for 2006, a 15 percent increase over the $401.8 million earned during 2005. For the same time period, earnings per share increased 11 percent to $3.53 from $3.18 in 2005. Return on average assets and return on average shareholders' equity for the full-year of 2006 were 1.39 percent and 17.68 percent, respectively.

Earnings for the fourth quarter of 2006 increased 16 percent to $118.3 million compared to $102.1 million earned during the fourth quarter of 2005. Earnings per share for the fourth quarter of 2006 increased 11 percent to $0.90 from $0.81 in the prior year. Return on average assets and return on average shareholders' equity for the fourth quarter of 2006 were 1.38 percent and 16.73 percent, respectively.

D. Paul Jones, Jr., Compass chairman and chief executive officer, stated, "2006 was another outstanding year for Compass as we delivered double-digit growth to our shareholders despite a less than favorable interest rate environment. Balance was the key to our success as we achieved solid, top-line revenue growth, robust loan production, steady deposit generation and healthy credit quality metrics. This brings our compound annual growth rate in earnings per share to 11 percent over both five- and 10-year time horizons. Consistent earnings growth is a distinguishing hallmark of our company and, we believe, the best way to create long-term value for our shareholders. It also provides further evidence of our ability to manage during both good and tough economic cycles. While we enter 2007 against a backdrop of considerable economic uncertainty, we continue to believe that Compass' diversified business mix, expanding distribution network, sales and service culture and market share upside position us well to meet these challenges."

Jones added, "Compass' record financial performance was fueled by a 12 percent increase in revenue, driven by a 15 percent increase in net interest income. Noninterest income increased eight percent from prior year levels as most of our major fee-based businesses generated solid growth. While noninterest expense increased from prior year levels, a large part of this increase can be attributed to the expansion of our distribution network through the acquisition and integration of TexasBank and its 22 banking centers as well as the 14 new banking centers opened throughout our footprint."

"Compass experienced solid balance sheet growth with average earning assets increasing 12 percent over prior year levels. More importantly, the growth in earning assets was driven by an 18 percent increase in average loans, offset in part by a seven percent decrease in our investment securities portfolio. Average deposits increased 20 percent, led by double-digit increases in interest bearing transaction accounts and time deposits," Jones stated.

"Solid balance sheet growth, coupled with a higher base of low-cost transaction accounts resulted in our percent net interest margin increasing to 3.69 percent from 3.58 percent a year ago. However, the impact of a protracted inverted yield curve and continued pressure from rising funding costs resulted in a fourth quarter net interest margin more consistent with the fourth quarter 2005 levels. Given the uncertainty over interest rates, our focus has remained on generating high-quality loans and growing our base of low-cost transaction account deposits, which resulted in a $146.2 million increase in net interest income."

"Importantly, loan growth did not come at the expense of maintaining sound credit quality standards as both net charge-offs and nonperforming asset ratios continue to perform at historically low-levels. Net charge-offs as a percentage of average loans decreased to 0.32 percent compared to 0.48 percent in 2005. Nonperforming assets as a percentage of loans and other real estate increased slightly to 0.30 percent compared to 0.28 percent at year-end 2005. At the same time, loan loss provision expense exceeded net charge-offs by $12.7 million during the year and our allowance for loan losses as a percentage of loans ended the year at 1.18 percent," Jones said.

Compass operates 415 full-service banking centers including 164 in Texas, 89 in Alabama, 75 in Arizona, 44 in Florida, 33 in Colorado, and 10 in New Mexico. Compass will host a live conference call and webcast at 1:00 p.m. Central Time on January 22. Additional material information, including forward-looking information such as considerations regarding future results, may be discussed during the presentation. To participate by telephone dial 1-888-543-2107, passcode Compass, or by webcast at www.compassbank.com. A copy of the presentation will be made available on our web site prior to the call. A replay of the conference call and webcast will be made available until midnight on January 29, 2007. To access a replay of the conference call dial 1-800-642-1687, conference ID 5634753. Additional information about Compass, a member of the S&P 500 Index and Dow Jones Select Dividend Index, can be found at www.compassbank.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Compass Bancshares, Inc. notes that any statements in this press release, and elsewhere, that are not historical facts are "forward-looking statements" that involve risks and uncertainties that may cause the Company's actual results of operations to differ materially from expected results. For a discussion of such risks and uncertainties, see the Company's Annual Report on Form 10-K for the most recently ended fiscal year as well as its other filings with the U.S. Securities and Exchange Commission.

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