Compass Bancshares Reports Record Second Quarter EPS Up 13%.Business Editors 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, 2003 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. (Nasdaq: 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) ): -- Record EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.68, up 13% from prior year levels -- Quarterly earnings reach all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high of $87 million -- Strong fee income growth; noninterest income up 22% from year ago -- Credit quality remains stable; average managed loans up 6% from year ago -- Transaction accounts up 12%, led by a 28% increase in noninterest bearing deposits Compass Bancshares, Inc. today reported record earnings of $87 million for the second quarter of 2003, an 11 percent increase over the $78.5 million earned during the second quarter of 2002. For the same time period, earnings per share increased 13 percent to $0.68 from $0.60 in the prior year. Return on average assets and return on average 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 second quarter of 2003 were 1.42 percent and 17.64 percent, respectively. For the first six months of 2003, earnings increased nine percent to $169.1 million compared to $154.7 million for the same period last year. Earnings per share for the first six months of 2003 increased 11 percent to $1.32 from $1.19 in the first six months of 2002. Return on average assets and return on average shareholders' equity for the first six months of 2003 were 1.41 percent and 17.32 percent, respectively. D. Paul Jones Paul Jones can refer to:
n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in economic activity, the low level of interest rates and resulting impact on investment opportunities continue to create significant challenges to the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry. However, given the geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge diversity of our franchise, our market share upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside and the flexibility provided by a strong balance sheet we are cautiously cau·tious adj. 1. Showing or practicing caution; careful. 2. Tentative or restrained; guarded: felt a cautious optimism that the offer would be accepted. optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the remainder of 2003." Jones added, "Compass' record financial performance was fueled by a five percent increase in revenue, driven by continued strong fee income growth. Each of our major fee-based businesses generated solid results as noninterest income, excluding securities and non-strategic branch sale gains, increased 22 percent from the prior year. Noninterest income now represents 37 percent of total revenue compared to 32 percent a year ago. At the same time, noninterest expense growth was well maintained at five percent given the impact of our de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. branch expansion initiative and insurance agency acquisitions. "In addition, Compass continued to generate earning asset Earning asset An asset that generates income, e.g., income from rental property. growth with average managed loans increasing six percent over prior year levels. Equally important was our ability to continue to grow low-cost deposits. Transaction accounts increased 12 percent over prior year levels, driven by a 28 percent increase in noninterest bearing deposits. Transaction accounts now represent more than 79 percent of total deposits and noninterest bearing deposits represent 30 percent of total deposits." Jones stated. "While we continue to experience solid loan and low-cost deposit growth, the steady decline in interest rates resulted in a modest decrease in net interest income. Given the low level of interest rates and corresponding impact on investment opportunities, our net interest margin decreased to 4.02 percent compared to 4.29 percent in the first quarter of 2003. Even though continued low interest rates presents a challenge to revenue growth, the momentum and diversity of our fee businesses is an advantage," Jones said. "The overall quality of our loan portfolio remains solid. Net charge-offs as a percentage of average loans were 0.65 percent compared to 0.61 percent for the first half of 2002. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. as a percentage of loans and other real estate were 0.63 percent compared with 0.62 percent in the first quarter of 2003. In addition, our allowance for loan losses as a percentage of loans increased to 1.43 percent compared to 1.41 percent in the first quarter of 2003," Jones said. Compass operates 358 full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. banking offices including 126 in Texas, 89 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). , 66 in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , 42 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 , 26 in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , and nine in New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). . Compass will host a live conference call and webcast at 2:00 p.m. Central Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time today. Additional material information, including forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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.compassweb.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 July July: see month. 23, 2003. To access a replay of the conference call dial 1-800-642-1687, conference ID 1282185. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the most recently ended fiscal year as well as its other filings with the U.S. Securities and Exchange Commission.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months
Ended June 30
--------------------------
%
2003 2002 Change
--------- --------- ------
EARNINGS SUMMARY
Net interest income $223,329 $228,556 (2)
Noninterest income 131,973 109,913 20
--------- ---------
Total revenue 355,302 338,469 5
Provision for loan losses 27,909 34,779 (20)
Noninterest expense 195,497 185,324 5
--------- ---------
Pretax income 131,896 118,366 11
Income tax expense 44,848 39,913 12
--------- ---------
Net income $87,048 $78,453 11
--------- ---------
Diluted earnings per share $0.68 $0.60 13
Diluted weighted average
shares outstanding 128,602 130,210 (1)
Six Months
Ended June 30
--------------------------
%
2003 2002 Change
--------- --------- ------
EARNINGS SUMMARY
Net interest income $450,574 $462,328 (3)
Noninterest income 255,080 204,883 25
--------- ---------
Total revenue 705,654 667,211 6
Provision for loan losses 57,688 65,099 (11)
Noninterest expense 391,630 368,248 6
--------- ---------
Pretax income 256,336 233,864 10
Income tax expense 87,203 79,203 10
--------- ---------
Net income $169,133 $154,661 9
--------- ---------
Diluted earnings per share $1.32 $1.19 11
Diluted weighted average
shares outstanding 128,288 129,598 (1)
Three Months
Ended June 30
----------------
2003 2002
------- -------
SELECTED RATIOS
Average common equity to
average assets 8.05 % 7.97 %
Average loans to average
total deposits 111.00 104.89
Return on average assets 1.42 1.36
Return on average equity 17.64 17.07
Efficiency ratio (a) 55.08 54.91
Return on average tangible equity (b) 21.61 20.53
Book value per common share $15.69 $14.87
Allowance for loan losses as
a % of total loans 1.43 % 1.40 %
Allowance for loan losses as
a % of nonperforming loans 298.89 282.23
Six Months
Ended June 30
----------------
2003 2002
------- -------
SELECTED RATIOS
Average common equity to
average assets 8.15 % 7.84 %
Average loans to average
total deposits 111.55 103.94
Return on average assets 1.41 1.35
Return on average equity 17.32 17.21
Efficiency ratio (a) 55.39 55.11
Return on average tangible equity (b) 21.17 20.76
Book value per common share $15.69 $14.87
Allowance for loan losses as
a % of total loans 1.43 % 1.40 %
Allowance for loan losses as
a % of nonperforming loans 298.89 282.23
Average for Three Months
Ended June 30
--------------------------------
%
2003 2002 Change
------------ ------------ ------
BALANCE SHEET HIGHLIGHTS
Total loans $16,569,323 $14,785,474 12
Total loans - managed 17,664,062 16,733,590 6
Total investment securities (c) 5,928,358 6,397,550 (7)
Earning assets (c) 22,553,264 21,235,363 6
Total assets 24,567,531 23,113,783 6
Noninterest bearing deposits 4,085,604 3,449,405 18
Interest bearing transaction
accounts 7,511,602 7,048,859 7
Total transaction accounts 11,597,206 10,498,264 10
Total deposits (c) 14,927,888 14,096,445 6
Shareholders' equity 1,978,782 1,843,049 7
Average for Six Months
Ended June 30
--------------------------------
%
2003 2002 Change
------------ ------------ ------
BALANCE SHEET HIGHLIGHTS
Total loans $16,587,604 $14,400,774 15
Total loans - managed 17,639,611 16,435,952 7
Total investment securities (c) 5,518,230 6,789,797 (19)
Earning assets (c) 22,162,514 21,238,337 4
Total assets 24,168,742 23,122,146 5
Noninterest bearing deposits 3,932,287 3,411,986 15
Interest bearing transaction
accounts 7,438,594 6,938,747 7
Total transaction accounts 11,370,881 10,350,733 10
Total deposits (c) 14,869,557 13,855,215 7
Shareholders' equity 1,969,630 1,812,310 9
Ending Balance
June 30
--------------------------------
%
2003 2002 Change
------------ ------------ ------
BALANCE SHEET HIGHLIGHTS
Total loans $16,329,359 $15,178,669 8
Total loans - managed 17,802,196 17,006,315 5
Total investment securities (c) 7,122,628 6,204,508 15
Earning assets (c) 23,500,373 21,477,075 9
Total assets 25,623,226 23,516,355 9
Noninterest bearing deposits 4,560,143 3,555,870 28
Interest bearing transaction
accounts 7,452,955 7,157,543 4
Total transaction accounts 12,013,098 10,713,413 12
Total deposits (c) 15,136,833 14,401,355 5
Shareholders' equity 1,974,416 1,907,805 3
Period-end shares outstanding 125,846 128,336 (2)
(a) Ratio is calculated by dividing noninterest expense less merger
and integration expense by taxable equivalent net interest income
plus noninterest income less securities gains and gain on sale of
branches.
(b) Excludes after-tax intangible amortization.
(c) Includes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months Ended
-----------------------------
2003 2002
------------------- ---------
Jun 30 Mar 31 Dec 31
--------- --------- ---------
EARNINGS SUMMARY
Net interest income $223,329 $227,245 $231,722
Noninterest income - operating 129,845 123,107 120,614
--------- --------- ---------
Total revenue - operating 353,174 350,352 352,336
Investment securities
gains (losses), net - - 342
Gain on sale of branches 2,128 - -
Provision for loan losses 27,909 29,779 36,626
Noninterest expense 195,497 196,133 194,632
--------- --------- ---------
Pretax income 131,896 124,440 121,420
Income tax expense 44,848 42,355 41,691
--------- --------- ---------
Net income $87,048 $82,085 $79,729
--------- --------- ---------
Diluted earnings per share $0.68 $0.64 $0.62
Diluted weighted average
shares outstanding 128,602 128,083 129,601
Three Months Ended
-------------------
2002
-------------------
Sep 30 Jun 30
--------- ---------
EARNINGS SUMMARY
Net interest income $230,805 $228,556
Noninterest income - operating 115,305 106,461
--------- ---------
Total revenue - operating 346,110 335,017
Investment securities
gains (losses), net (81) 3,452
Gain on sale of branches - -
Provision for loan losses 34,606 34,779
Noninterest expense 189,549 185,324
--------- ---------
Pretax income 121,874 118,366
Income tax expense 41,865 39,913
--------- ---------
Net income $80,009 $78,453
--------- ---------
Diluted earnings per share $0.61 $0.60
Diluted weighted average
shares outstanding 130,872 130,210
Three Months Ended
------------------------
2003 2002
--------------- --------
Jun 30 Mar 31 Dec 31
------- ------- -------
SELECTED RATIOS
Average common equity to
average assets 8.05 % 8.25 % 8.36 %
Average loans to average
total deposits 111.00 112.12 110.67
Return on average assets 1.42 1.40 1.34
Return on average equity 17.64 16.98 16.01
Efficiency ratio (a) 55.08 55.69 54.91
Return on average tangible equity (b) 21.61 20.73 19.53
Book value per common share $15.69 $15.58 $15.32
Three Months
Ended
---------------
2002
---------------
Sep 30 Jun 30
------- -------
SELECTED RATIOS
Average common equity to
average assets 8.38 % 7.97 %
Average loans to average
total deposits 108.21 104.89
Return on average assets 1.35 1.36
Return on average equity 16.10 17.07
Efficiency ratio (a) 54.38 54.91
Return on average tangible equity (b) 19.65 20.53
Book value per common share $15.39 $14.87
(a) Ratio is calculated by dividing noninterest expense less merger
and integration expense by taxable equivalent net interest income
plus noninterest income less securities gains and gain on sale of
branches.
(b) Excludes after-tax intangible amortization.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
2003 2002
------------------- ---------
Jun 30 Mar 31 Dec 31
--------- --------- ---------
NONPERFORMING ASSETS
Nonaccrual loans $77,854 $77,918 $81,671
Renegotiated loans 489 153 38
Other real estate, net 24,412 26,708 17,300
--------- --------- ---------
Total nonperforming assets $102,755 $104,779 $99,009
--------- --------- ---------
Loans ninety days or more
past due $18,262 $18,064 $16,907
Other repossessed assets 306 406 187
Total nonperforming assets as
a percentage of loans and ORE 0.63 % 0.62 % 0.60 %
2002
-------------------
Sep 30 Jun 30
--------- ---------
NONPERFORMING ASSETS
Nonaccrual loans $76,235 $75,085
Renegotiated loans 319 324
Other real estate, net 19,755 16,224
--------- ---------
Total nonperforming assets $96,309 $91,633
--------- ---------
Loans ninety days or more
past due $20,271 $23,680
Other repossessed assets 177 558
Total nonperforming assets as
a percentage of loans and ORE 0.61 % 0.60 %
Three Months Ended
-----------------------------
2003 2002
------------------- ---------
Jun 30 Mar 31 Dec 31
--------- --------- ---------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $237,100 $232,830 $221,947
Net charge-offs (NCO) 27,909 25,509 25,743
Allowance for loans sold (2,942) - -
Provision for loan losses 27,909 29,779 36,626
--------- --------- ---------
Balance at end of period $234,158 $237,100 $232,830
--------- --------- ---------
Allowance for loan losses as
a % of total loans 1.43 % 1.41 % 1.41 %
Allowance for loan losses as
a % of nonperforming loans 298.89 303.70 284.95
Allowance for loan losses as
a % of nonperforming assets 227.88 226.29 235.16
Annualized as a % of average loans:
NCO - QTD 0.68 0.62 0.64
NCO - YTD 0.65 0.62 0.63
Three Months Ended
-------------------
2002
-------------------
Sep 30 Jun 30
--------- ---------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $212,828 $200,655
Net charge-offs (NCO) 25,487 22,606
Allowance for loans sold - -
Provision for loan losses 34,606 34,779
--------- ---------
Balance at end of period $221,947 $212,828
--------- ---------
Allowance for loan losses as
a % of total loans 1.41 % 1.40 %
Allowance for loan losses as
a % of nonperforming loans 289.92 282.23
Allowance for loan losses as
a % of nonperforming assets 230.45 232.26
Annualized as a % of average loans:
NCO - QTD 0.65 0.61
NCO - YTD 0.63 0.61
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months Ended June 30
------------------------------
2003
------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $16,569,323 $248,490 6.02 %
Investment securities held
to maturity 327,653 4,462 5.46
Investment securities available
for sale (a) 5,457,879 65,430 4.81
Other earning assets 37,859 232 2.46
------------ ---------
Total earning assets 22,392,714 318,614 5.71
Allowance for loan losses (235,937)
Unrealized gain (loss) on
securities available for sale 142,826
Other assets 2,267,928
------------
$24,567,531
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $111,774 312 1.12
Savings deposits 7,399,828 16,793 0.91
Time deposits 1,959,671 17,814 3.65
Certificates of deposit of
$100,000 or more (a) 1,366,326 9,103 2.67
Federal funds purchased and
securities sold under agreement
to repurchase 2,413,597 7,012 1.17
Other short-term borrowings 126,991 274 0.87
FHLB and other borrowings (a) 4,734,953 43,037 3.65
------------ ---------
Total interest bearing liabilities 18,113,140 94,345 2.09
--------- ------
Net interest spread 224,269 3.62 %
------
Noninterest bearing demand deposits 4,085,604
Other liabilities 390,005
Shareholders' equity 1,978,782
------------
$24,567,531
------------
Net yield on earning assets 4.02 %
------
Taxable equivalent adjustment:
Loans 125
Investment securities held to maturity 299
Investment securities available
for sale 510
Other earning assets 6
---------
Total taxable equivalent adjustment 940
---------
Net interest income $223,329
---------
(a) Excludes adjustment for market valuation.
Three Months Ended June 30
------------------------------
2002
------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $14,785,474 $258,016 7.00 %
Investment securities held
to maturity 774,914 11,821 6.12
Investment securities available
for sale (a) 5,507,207 79,195 5.77
Other earning assets 42,069 362 3.45
------------ ---------
Total earning assets 21,109,664 349,394 6.64
Allowance for loan losses (204,942)
Unrealized gain (loss) on
securities available for sale 115,429
Other assets 2,093,632
------------
$23,113,783
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $79,374 324 1.64
Savings deposits 6,969,485 25,764 1.48
Time deposits 2,325,067 26,031 4.49
Certificates of deposit of
$100,000 or more (a) 1,273,814 11,398 3.59
Federal funds purchased and
securities sold under agreement
to repurchase 2,239,374 9,467 1.70
Other short-term borrowings 112,101 424 1.52
FHLB and other borrowings (a) 4,539,124 46,207 4.08
------------ ---------
Total interest bearing liabilities 17,538,339 119,615 2.74
--------- ------
Net interest spread 229,779 3.90 %
------
Noninterest bearing demand deposits 3,449,405
Other liabilities 282,990
Shareholders' equity 1,843,049
------------
$23,113,783
------------
Net yield on earning assets 4.37 %
------
Taxable equivalent adjustment:
Loans 130
Investment securities held to maturity 554
Investment securities available
for sale 527
Other earning assets 12
---------
Total taxable equivalent adjustment 1,223
---------
Net interest income $228,556
---------
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Six Months Ended June 30
------------------------------
2003
------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $16,587,604 $507,408 6.17 %
Investment securities held
to maturity 380,622 10,457 5.54
Investment securities available
for sale (a) 4,986,797 127,492 5.16
Other earning assets 39,894 477 2.41
------------ ---------
Total earning assets 21,994,917 645,834 5.92
Allowance for loan losses (234,897)
Unrealized gain (loss) on
securities available for sale 150,811
Other assets 2,257,911
------------
$24,168,742
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $101,843 508 1.01
Savings deposits 7,336,751 35,088 0.96
Time deposits 2,003,362 36,958 3.72
Certificates of deposit of
$100,000 or more (a) 1,489,719 19,614 2.66
Federal funds purchased and
securities sold under agreement
to repurchase 2,054,508 11,773 1.16
Other short-term borrowings 115,443 511 0.89
FHLB and other borrowings (a) 4,766,754 88,894 3.76
------------ ---------
Total interest bearing liabilities 17,868,380 193,346 2.18
--------- ------
Net interest spread 452,488 3.74 %
------
Noninterest bearing demand deposits 3,932,287
Other liabilities 398,445
Shareholders' equity 1,969,630
------------
$24,168,742
------------
Net yield on earning assets 4.15 %
------
Taxable equivalent adjustment:
Loans 265
Investment securities held to maturity 617
Investment securities available
for sale 1,020
Other earning assets 12
---------
Total taxable equivalent adjustment 1,914
---------
Net interest income $450,574
---------
(a) Excludes adjustment for market valuation.
Six Months Ended June 30
------------------------------
2002
------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $14,400,774 $508,580 7.12 %
Investment securities held
to maturity 792,310 25,026 6.37
Investment securities available
for sale (a) 5,897,693 168,434 5.76
Other earning assets 40,917 725 3.57
------------ ---------
Total earning assets 21,131,694 702,765 6.71
Allowance for loan losses (199,898)
Unrealized gain (loss) on
securities available for sale 99,794
Other assets 2,090,556
------------
$23,122,146
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $75,067 602 1.62
Savings deposits 6,863,680 50,810 1.49
Time deposits 2,294,754 52,518 4.62
Certificates of deposit of
$100,000 or more (a) 1,210,184 22,157 3.69
Federal funds purchased and
securities sold under agreement
to repurchase 2,741,358 23,111 1.70
Other short-term borrowings 176,481 1,656 1.89
FHLB and other borrowings (a) 4,237,396 87,195 4.15
------------ ---------
Total interest bearing liabilities 17,598,920 238,049 2.73
--------- ------
Net interest spread 464,716 3.98 %
------
Noninterest bearing demand deposits 3,411,986
Other liabilities 298,930
Shareholders' equity 1,812,310
------------
$23,122,146
------------
Net yield on earning assets 4.43 %
------
Taxable equivalent adjustment:
Loans 242
Investment securities held to maturity 1,038
Investment securities available
for sale 1,079
Other earning assets 29
---------
Total taxable equivalent adjustment 2,388
---------
Net interest income $462,328
---------
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Six Months
Ended June 30
-----------------------------
%
2003 2002 Change
--------- --------- ---------
NONINTEREST INCOME
Service charges on deposit accounts $111,511 $89,687 24
Credit card service charges and fees 26,586 20,946 27
Insurance commissions 20,855 5,184 302
Corporate and correspondent
investment sales 15,480 9,688 60
Retail investment sales 14,484 13,330 9
Asset management fees 10,798 10,329 5
Bank owned life insurance 8,918 9,540 (7)
Other income 44,320 42,207 5
--------- ---------
Total noninterest income -
operating 252,952 200,911 26
Gain on sale of branches 2,128 - -
Investment securities
gains (losses), net - 3,972 (100)
--------- ---------
Total $255,080 $204,883 25
--------- ---------
NONINTEREST EXPENSE
Salaries and benefits $214,677 $187,931 14
Equipment expense 36,199 32,486 11
Net occupancy expense 29,819 27,763 7
Professional services 27,000 23,915 13
Marketing expense 16,150 15,280 6
Communications expense 12,302 10,709 15
Amortization of intangibles 3,626 4,455 (19)
Merger and integration
expenses 921 1,447 (36)
Other expense 50,936 64,262 (21)
--------- ---------
Total $391,630 $368,248 6
--------- ---------
Three Months Ended
-----------------------------
2003 2002
------------------- ---------
Jun 30 Mar 31 Dec 31
--------- --------- ---------
NONINTEREST INCOME
Service charges on deposit accounts $60,232 $51,279 $52,254
Credit card service charges and fees 14,067 12,519 12,205
Insurance commissions 10,051 10,804 8,162
Corporate and correspondent
investment sales 7,057 8,423 7,964
Retail investment sales 7,323 7,161 6,401
Asset management fees 5,452 5,346 4,912
Bank owned life insurance 4,460 4,458 4,621
Other income 21,203 23,117 24,095
--------- --------- ---------
Total noninterest income -
operating 129,845 123,107 120,614
Gain on sale of branches 2,128 - -
Investment securities
gains (losses), net - - 342
--------- --------- ---------
Total $131,973 $123,107 $120,956
--------- --------- ---------
NONINTEREST EXPENSE
Salaries and benefits $106,948 $107,729 $104,460
Equipment expense 18,413 17,786 16,629
Net occupancy expense 15,259 14,560 14,282
Professional services 14,515 12,485 15,679
Marketing expense 6,923 9,227 6,831
Communications expense 6,285 6,017 5,361
Amortization of intangibles 1,827 1,799 2,361
Merger and integration
expenses 455 466 596
Other expense 24,872 26,064 28,433
--------- --------- ---------
Total $195,497 $196,133 $194,632
--------- --------- ---------
Three Months Ended
-------------------
2002
-------------------
Sep 30 Jun 30
--------- ---------
NONINTEREST INCOME
Service charges on deposit accounts $49,701 $48,810
Credit card service charges and fees 11,741 11,206
Insurance commissions 8,106 2,497
Corporate and correspondent
investment sales 8,345 4,892
Retail investment sales 6,374 7,051
Asset management fees 4,908 5,127
Bank owned life insurance 4,678 4,957
Other income 21,452 21,921
--------- ---------
Total noninterest income -
operating 115,305 106,461
Gain on sale of branches - -
Investment securities
gains (losses), net (81) 3,452
--------- ---------
Total $115,224 $109,913
--------- ---------
NONINTEREST EXPENSE
Salaries and benefits $98,665 $93,306
Equipment expense 16,314 16,847
Net occupancy expense 15,092 13,914
Professional services 13,552 12,272
Marketing expense 6,179 7,881
Communications expense 6,070 5,548
Amortization of intangibles 2,359 2,221
Merger and integration
expenses 799 679
Other expense 30,519 32,656
--------- ---------
Total $189,549 $185,324
--------- ---------
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