Compass Bancshares Reports Record Second Quarter EPS of $0.52.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 19, 2001 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) ) -- Quarterly earnings reach all-time high of $67 million -- Record EPS of $0.52, up 21% from prior year operating levels -- Total revenue increases 16%; noninterest income up 29% from year ago -- Cash basis efficiency ratio improves 215 basis points from first quarter 2001 -- Strong internal loan growth continues, managed loans up 10% from year ago Compass Bancshares, Inc. (Nasdaq:CBSS) today reported record earnings of $67 million for the second quarter of 2001, a 21 percent increase over 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 of $55.3 million in the second quarter of 2000. For the same time period, operating earnings per share increased 21 percent to $0.52 from $0.43 in the prior year. Operating results exclude a gain on sale of branches recorded in 2000. 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 2001 were 1.22 percent and 16.65 percent, respectively. On a cash basis, operating earnings for the second quarter of 2001 increased 21 percent to $72.1 million compared to $59.7 million in the second quarter of 2000, and operating earnings per share increased 19 percent to $0.56 compared to $0.47 in the prior year. Cash basis return on average assets and return on average shareholders' equity for the second quarter of 2001 were 1.33 percent and 17.92 percent, respectively. For the first six months of 2001, operating earnings increased 14 percent to $129.5 million compared to $113.6 million for the same period last year. Operating earnings per share for the first six months of 2001 increased 13 percent to $1.02 from $0.90 in the first six months of 2000. On a cash basis, operating earnings increased 14 percent to $139.8 million and earnings per share were $1.10, an increase of 13 percent from prior year levels. D. Paul Jones Paul Jones can refer to:
See also: Spite a slowing national economy. Given the strength of our revenue growth, our confidence in our ability to manage expenses and the underlying fundamentals of our core businesses, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the remainder of 2001." Jones added, "Compass' record financial performance was fueled by a 16 percent increase in revenue as both net interest income and noninterest income posted double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. gains. Net interest income increased 11 percent from prior year levels as focused loan and deposit growth expanded our net interest margin to 4.04 percent compared to 3.97 percent in the first quarter of 2001. At the same time, all of our major fee-based businesses generated solid results as noninterest income, excluding a gain on the sale of non-strategic branches in the prior year, increased 29 percent. The resulting revenue momentum, coupled with tighter expense management, improved our cash basis efficiency ratio to 55.35 percent. This was a 215 basis point reduction over the first quarter level and the second consecutive quarter of improvement in this measure." "In addition, Compass continued to experience robust balance sheet growth. Through organic growth in our markets, average managed loans increased 10 percent over prior year levels. Equally important was our ability to continue to grow low-cost deposits. Average noninterest bearing deposits increased six percent over prior year levels and 11 percent annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. over first quarter 2001 levels. We continue to emphasize the growth of noninterest bearing deposits which now represent more than 23 percent of Compass' total deposits," Jones stated. "The overall quality of our loan portfolio remains strong. 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 relatively unchanged from first quarter 2001 levels, and net charge-offs as a percent of average loans for the second quarter of 2001 declined to 0.47 percent compared with 0.59 percent for the second quarter of 2000. In response to the strong loan growth we have experienced, provision expense exceeded net charge-offs by $6.5 million," Jones said. Compass operates 341 full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. banking offices including 117 in Texas, 87 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). , 62 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). , 40 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 , 24 in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , 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). and two in Nebraska Nebraska (nəbrăs`kə), Great Plains state of the central United States. It is bordered by Iowa and Missouri, across the Missouri R. (E), Kansas (S), Colorado (SW), Wyoming (NW), and South Dakota (N). . 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 1-888-769-8711, 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. 27, 2001. To access a replay of the conference call dial 1-800-756-1547. "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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995 Statements in this press release regarding Compass Bancshares, Inc.'s business which 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. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the Company's Annual Report or 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.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months
Ended June 30
---------------------- %
2001 2000 Change
-------- -------- ------
FINANCIAL HIGHLIGHTS
Net income $ 66,972 $ 62,961 6
Nonoperating items, net of tax (a) -- 7,670 (100)
-------- --------
Operating earnings $ 66,972 $ 55,291 21
======== ========
Operating diluted earnings per share $ 0.52 $ 0.43 21
Operating diluted earnings
per share - cash basis (b) 0.56 0.47 19
EARNINGS SUMMARY
Net interest income $201,134 $181,597 11
Noninterest income - operating 91,132 70,626 29
-------- --------
Total revenue - operating 292,266 252,223 16
Provision for loan losses 21,951 19,362 13
Noninterest expense 167,843 148,532 13
Gain on branch sales -- 11,800 (100)
-------- --------
Pretax income 102,472 96,129 7
Income tax expense 35,500 33,168 7
-------- --------
Net income $ 66,972 $ 62,961 6
======== ========
Net income available to
common shareholders $ 66,972 $ 62,961 6
======== ========
Net income - cash basis (b) $ 72,084 $ 67,361 7
======== ========
Diluted earnings per share $ 0.52 $ 0.49 6
Diluted earnings per share - cash
basis (b) 0.56 0.53 6
Diluted weighted average
shares outstanding 129,323 128,238 1
Six Months
Ended June 30
---------------------- %
2001 2000 Change
-------- -------- ------
FINANCIAL HIGHLIGHTS
Net income $129,535 $121,300 7
Nonoperating items, net of tax (a) -- 7,670 (100)
-------- --------
Operating earnings $129,535 $113,630 14
======== ========
Operating diluted earnings per share $ 1.02 $ 0.90 13
Operating diluted earnings
per share - cash basis (b) 1.10 0.97 13
EARNINGS SUMMARY
Net interest income $389,029 $354,190 10
Noninterest income - operating 179,851 137,645 31
-------- --------
Total revenue - operating 568,880 491,835 16
Provision for loan losses 34,832 29,750 17
Noninterest expense 335,764 288,715 16
Gain on branch sales -- 11,800 (100)
-------- --------
Pretax income 198,284 185,170 7
Income tax expense 68,749 63,870 8
-------- --------
Net income $129,535 $121,300 7
======== ========
Net income available to
common shareholders $131,301 $121,300 8
======== ========
Net income - cash basis (b) $139,772 $130,067 7
======== ========
Diluted earnings per share $ 1.02 $ 0.96 6
Diluted earnings per share - cash
basis (b) 1.10 1.03 7
Diluted weighted average
shares outstanding 129,101 126,326 2
Three Months
Ended June 30
----------------------
2001 2000
-------- --------
SELECTED RATIOS
Average common equity to
average assets 7.34% 6.63%
Average loans to average
total deposits 94.07 82.59
Return on average assets 1.22 1.29
Return on average equity 16.65 19.51
Efficiency ratio (c) 57.48 57.69
Cash basis ratios (b):
Return on average assets 1.33 1.40
Return on average equity 17.92 20.88
Return on average tangible equity 21.87 25.72
Efficiency ratio (c) 55.35 55.55
Book value per common share $12.81 $10.62
Six Months
Ended June 30
----------------------
2001 2000
-------- --------
SELECTED RATIOS
Average common equity to
average assets 7.32% 6.60%
Average loans to average
total deposits 90.42 83.79
Return on average assets 1.21 1.26
Return on average equity 16.52 19.09
Efficiency ratio (c) 58.59 57.40
Cash basis ratios (b):
Return on average assets 1.32 1.37
Return on average equity 17.83 20.47
Return on average tangible equity 21.91 25.33
Efficiency ratio (c) 56.39 55.22
Book value per common share $12.81 $10.62
Average for Three Months
Ended June 30
------------------------- %
2001 2000 Change
----------- ----------- ------
BALANCE SHEET HIGHLIGHTS
Total loans $13,023,044 $11,917,489 9
Total loans - managed 14,923,999 13,587,820 10
Total investment securities (d) 7,047,063 5,951,765 18
Earning assets (d) 20,102,788 17,991,504 12
Total assets 21,975,453 19,569,196 12
Noninterest bearing deposits 3,079,202 2,895,284 6
Interest bearing transaction
accounts 6,269,000 6,255,190 --
Total transaction accounts 9,348,202 9,150,474 2
Total deposits 13,843,906 14,429,062 (4)
Shareholders' equity 1,613,488 1,297,741 24
Average for Six Months
Ended June 30
------------------------- %
2001 2000 Change
----------- ----------- ------
BALANCE SHEET HIGHLIGHTS
Total loans $12,729,677 $11,760,756 8
Total loans - managed 14,708,052 13,326,693 10
Total investment securities (d) 6,956,363 5,909,252 18
Earning assets (d) 19,727,285 17,793,135 11
Total assets 21,601,132 19,360,347 12
Noninterest bearing deposits 3,036,984 2,814,020 8
Interest bearing transaction
accounts 6,257,424 6,190,654 1
Total transaction accounts 9,294,408 9,004,674 3
Total deposits 14,078,299 14,036,340 --
Shareholders' equity 1,581,087 1,277,801 24
Ending Balance
June 30
------------------------- %
2001 2000 Change
----------- ----------- ------
BALANCE SHEET HIGHLIGHTS
Total loans $12,838,776 $12,065,399 6
Total loans - managed 15,135,188 13,667,981 11
Total investment securities (d) 6,925,653 5,845,691 18
Earning assets (d) 19,801,942 18,057,260 10
Total assets 21,710,944 19,817,900 10
Noninterest bearing deposits 3,206,912 3,016,860 6
Interest bearing transaction
accounts 6,202,896 6,162,894 1
Total transaction accounts 9,409,808 9,179,754 3
Total deposits 13,700,794 14,491,814 (5)
Shareholders' equity 1,640,930 1,356,459 21
Period-end shares outstanding 128,143 127,700 --
(a) Includes gains on sale of nonstrategic branches.
(b) Excludes after-tax intangible amortization.
(c) Excludes merger and integration expenses and gains on sale of
investment securities and branches.
(d) Includes adjustment for market valuation on available-for-sale
securities.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months Ended
---------------------- --------
2001 2000
---------------------- --------
Jun 30 Mar 31 Dec 31
-------- -------- --------
EARNINGS SUMMARY
Net interest income $201,134 $187,895 $183,166
Noninterest income - operating 91,132 88,719 78,574
-------- -------- --------
Total revenue - operating 292,266 276,614 261,740
Provision for loan losses 21,951 12,881 24,956
Noninterest expense 167,843 167,921 163,212
Gain on branch sales -- -- --
-------- -------- --------
Pretax income 102,472 95,812 73,572
Income tax expense 35,500 33,249 19,157
-------- -------- --------
Net income $ 66,972 $ 62,563 $ 54,415
======== ======== ========
Net income available to
common shareholders $ 66,972 $ 64,329 $ 54,415
======== ======== ========
Net income - cash basis (a) $ 72,084 $ 67,690 $ 59,959
======== ======== ========
Diluted earnings per share $ 0.52 $ 0.50 $ 0.43
Diluted earnings per share - cash
basis (a) 0.56 0.54 0.47
Diluted weighted average
shares outstanding 129,323 128,901 128,281
Three Months Ended
-----------------------
2000
-----------------------
Sept 30 Jun 30
--------- ---------
EARNINGS SUMMARY
Net interest income $ 181,156 $ 181,597
Noninterest income - operating 72,277 70,626
--------- ---------
Total revenue - operating 253,433 252,223
Provision for loan losses 10,872 19,362
Noninterest expense 147,358 148,532
Gain on branch sales 4,900 11,800
--------- ---------
Pretax income 100,103 96,129
Income tax expense 34,195 33,168
--------- ---------
Net income $65,908 $62,961
========= =========
Net income available to
common shareholders $65,908 $62,961
========= =========
Net income - cash basis (a) $70,689 $67,361
========= =========
Diluted earnings per share $ 0.51 $ 0.49
Diluted earnings per share - cash
basis (a) 0.55 0.53
Diluted weighted average
shares outstanding 128,205 128,238
Three Months Ended
---------------------- --------
2001 2000
---------------------- --------
Jun 30 Mar 31 Dec 31
-------- -------- --------
SELECTED RATIOS
Average common equity to
average assets 7.34% 7.30% 7.16%
Average loans to average
total deposits 94.07 86.85 86.42
Return on average assets 1.22 1.20 1.06
Return on average equity 16.65 16.39 14.85
Efficiency ratio (b) 57.48 59.78 61.59
Cash basis ratios (a):
Return on average assets 1.33 1.31 1.19
Return on average equity 17.92 17.73 16.36
Return on average tangible equity 21.87 21.95 20.60
Efficiency ratio (b) 55.35 57.50 58.96
Book value per common share $ 12.81 $ 12.55 $ 11.82
Three Months Ended
-----------------------
2000
-----------------------
Sept 30 Jun 30
--------- ---------
SELECTED RATIOS
Average common equity to
average assets 6.96% 6.63%
Average loans to average
total deposits 84.63 82.59
Return on average assets 1.30 1.29
Return on average equity 18.75 19.51
Efficiency ratio (b) 56.81 57.69
Cash basis ratios (a):
Return on average assets 1.42 1.40
Return on average equity 20.11 20.88
Return on average tangible equity 25.44 25.72
Efficiency ratio (b) 54.41 55.55
Book value per common share $ 11.16 $ 10.62
(a) Excludes after-tax intangible amortization.
(b) Excludes merger and integration expenses and gains
on sale of investment securities and branches.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
2001 2000
---------------------- --------
Jun 30 Mar 31 Dec 31
-------- -------- --------
NONPERFORMING ASSETS
Nonaccrual loans $ 95,283 $ 94,859 $ 86,168
Renegotiated loans 2,036 78 84
Other real estate, net 18,746 17,550 15,476
-------- -------- --------
Total nonperforming assets $116,065 $112,487 $101,728
======== ======== ========
Loans ninety days or more past due $ 17,547 $ 20,840 $ 19,884
Other repossessed assets 641 1,217 1,706
Total nonperforming assets as
a percentage of loans and ORE 0.90% 0.89% 0.83%
2000
----------------------
Sept 30 Jun 30
-------- --------
NONPERFORMING ASSETS
Nonaccrual loans $ 79,795 $ 64,753
Renegotiated loans 91 97
Other real estate, net 13,712 10,570
-------- --------
Total nonperforming assets $ 93,598 $ 75,420
======== ========
Loans ninety days or more past due $ 23,525 $ 19,488
Other repossessed assets 1,129 851
Total nonperforming assets as
a percentage of loans and ORE 0.74% 0.62%
Three Months Ended
---------------------------------
2001 2000
---------------------- --------
Jun 30 Mar 31 Dec 31
-------- -------- --------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $167,501 $167,288 $162,067
Net charge-offs - excluding
credit card 8,813 8,072 14,989
Net charge-offs - credit card 6,603 4,596 4,746
-------- -------- --------
Net charge-offs (NCO) 15,416 12,668 19,735
Allowance for loans acquired (sold) (1,050) -- --
Provision for loan losses 21,951 12,881 24,956
-------- -------- --------
Balance at end of period $172,986 $167,501 $167,288
======== ======== ========
Allowance for loan losses as
a % of total loans 1.35% 1.32% 1.36%
Allowance for loan losses as
a % of nonperforming assets 149.04 148.91 164.45
Annualized as a % of net loans:
NCO - QTD 0.47 0.41 0.63
NCO, excluding credit card - QTD 0.28 0.27 0.49
NCO - YTD 0.44 0.41 0.47
NCO, excluding credit card - YTD 0.28 0.27 0.35
Three Months Ended
----------------------
2000
----------------------
Sept 30 Jun 30
-------- --------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $157,908 $152,114
Net charge-offs - excluding
credit card 6,601 13,562
Net charge-offs - credit card 3,678 4,000
-------- --------
Net charge-offs (NCO) 10,279 17,562
Allowance for loans acquired (sold) 3,566 3,994
Provision for loan losses 10,872 19,362
-------- --------
Balance at end of period $162,067 $157,908
======== ========
Allowance for loan losses as
a % of total loans 1.29% 1.31%
Allowance for loan losses as
a % of nonperforming assets 173.15 209.37
Annualized as a % of net loans:
NCO - QTD 0.33 0.59
NCO, excluding credit card - QTD 0.22 0.47
NCO - YTD 0.42 0.46
NCO, excluding credit card - YTD 0.30 0.34
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months Ended June 30
------------------------------------
2001
------------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
----------- ----------- ------
Assets
Earning assets:
Loans $13,023,044 $271,548 8.36%
Investment securities 908,252 16,137 7.13
Investment securities available
for sale (a) 6,114,259 98,372 6.45
Other earning assets 32,681 853 10.47
----------- -----------
Total earning assets 20,078,236 386,910 7.73
Allowance for loan losses (167,642)
Unrealized gain (loss) on
securities available for sale 24,552
Cash and other assets 2,040,307
-----------
$21,975,453
===========
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 123,936 605 1.96
Savings deposits 6,145,064 43,973 2.87
Time deposits 3,145,442 47,262 6.03
Certificates of deposit of
$100,000 or more 1,350,262 19,454 5.78
Federal funds purchased and
securities sold under agreement
to repurchase 2,870,664 30,337 4.24
Other short-term borrowings 167,441 1,653 3.96
FHLB and other borrowings (a) 3,202,370 41,226 5.16
----------- -----------
Total interest bearing
liabilities 17,005,179 184,510 4.35
----------- ------
Net interest spread 202,400 3.38%
======
Noninterest bearing demand
deposits 3,079,202
Accrued expenses and other
liabilities 277,584
Shareholders' equity 1,613,488
-----------
$21,975,453
===========
Net yield on earning assets 4.04%
======
Taxable equivalent adjustment:
Loans 119
Investment securities 576
Investment securities available
for sale 556
Other earning assets 15
-----------
Total taxable equivalent adjustment 1,266
-----------
Net interest income $201,134
===========
(a) Excludes adjustment for market valuation.
Three Months Ended June 30
------------------------------------
2000
------------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
----------- ----------- ------
Assets
Earning assets:
Loans $11,917,489 $270,479 9.13%
Investment securities 1,530,593 26,526 6.97
Investment securities available
for sale (a) 4,615,980 76,080 6.63
Other earning assets 122,250 2,092 6.88
----------- -----------
Total earning assets 18,186,312 375,177 8.30
Allowance for loan losses (156,640)
Unrealized gain (loss) on
securities available for sale (194,808)
Cash and other assets 1,734,332
-----------
$19,569,196
===========
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 206,159 786 1.53
Savings deposits 6,049,031 57,294 3.81
Time deposits 3,533,515 50,728 5.77
Certificates of deposit of
$100,000 or more 1,745,073 25,938 5.98
Federal funds purchased and
securities sold under agreement
to repurchase 1,091,758 16,949 6.24
Other short-term borrowings 186,044 2,694 5.82
FHLB and other borrowings (a) 2,434,774 37,900 6.26
----------- -----------
Total interest bearing
liabilities 15,246,354 192,289 5.07
----------- ------
Net interest spread 182,888 3.23%
======
Noninterest bearing demand
deposits 2,895,284
Accrued expenses and other
liabilities 129,817
Shareholders' equity 1,297,741
-----------
$19,569,196
===========
Net yield on earning assets 4.04%
======
Taxable equivalent adjustment:
Loans 45
Investment securities 614
Investment securities available
for sale 613
Other earning assets 19
-----------
Total taxable equivalent adjustment 1,291
-----------
Net interest income $181,597
===========
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Six Months Ended June 30
------------------------------------
2001
------------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
----------- ----------- ------
Assets
Earning assets:
Loans $12,729,677 $547,821 8.68%
Investment securities 929,049 32,536 7.06
Investment securities available
for sale (a) 6,017,418 199,106 6.67
Other earning assets 41,245 1,720 8.41
----------- -----------
Total earning assets 19,717,389 781,183 7.99
Allowance for loan losses (167,516)
Unrealized gain (loss) on
securities available for sale 9,896
Cash and other assets 2,041,363
-----------
$21,601,132
===========
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 134,185 1,429 2.15
Savings deposits 6,123,239 98,137 3.23
Time deposits 3,248,725 98,453 6.11
Certificates of deposit of
$100,000 or more 1,535,166 45,964 6.04
Federal funds purchased and
securities sold under agreement
to repurchase 2,425,239 57,269 4.76
Other short-term borrowings 183,547 4,457 4.90
FHLB and other borrowings (a) 3,065,622 83,828 5.51
----------- -----------
Total interest bearing
liabilities 16,715,723 389,537 4.70
----------- ------
Net interest spread 391,646 3.29%
======
Noninterest bearing demand
deposits 3,036,984
Accrued expenses and other
liabilities 267,338
Shareholders' equity 1,581,087
-----------
$21,601,132
===========
Net yield on earning assets 4.01%
======
Taxable equivalent adjustment:
Loans 301
Investment securities 1,187
Investment securities available
for sale 1,097
Other earning assets 32
-----------
Total taxable equivalent adjustment 2,617
-----------
Net interest income $389,029
===========
(a) Excludes adjustment for market valuation.
Six Months Ended June 30
------------------------------------
2000
------------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
----------- ----------- ------
Assets
Earning assets:
Loans $11,760,756 $ 523,219 8.95%
Investment securities 1,540,232 53,226 6.95
Investment securities available
for sale (a) 4,545,367 148,540 6.57
Other earning assets 123,127 3,956 6.46
----------- -----------
Total earning assets 17,969,482 728,941 8.16
Allowance for loan losses (154,091)
Unrealized gain (loss) on
securities available for sale (176,347)
Cash and other assets 1,721,303
-----------
$19,360,347
===========
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 209,185 1,548 1.49
Savings deposits 5,981,469 111,459 3.75
Time deposits 3,342,740 93,288 5.61
Certificates of deposit of
$100,000 or more 1,688,926 49,074 5.84
Federal funds purchased and
securities sold under agreement
to repurchase 1,146,110 33,634 5.90
Other short-term borrowings 262,245 6,824 5.23
FHLB and other borrowings (a) 2,512,347 76,444 6.12
----------- -----------
Total interest bearing
liabilities 15,143,022 372,271 4.94
----------- ------
Net interest spread 356,670 3.22%
======
Noninterest bearing demand
deposits 2,814,020
Accrued expenses and other
liabilities 125,504
Shareholders' equity 1,277,801
-----------
$19,360,347
===========
Net yield on earning assets 3.99%
======
Taxable equivalent adjustment:
Loans 95
Investment securities 1,128
Investment securities available
for sale 1,223
Other earning assets 34
-----------
Total taxable equivalent adjustment 2,480
-----------
Net interest income $ 354,190
===========
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Six Months
Ended June 30
---------------------- %
2001 2000 Change
-------- -------- ------
NONINTEREST INCOME
Service charges on deposit accounts $ 73,235 $ 60,735 21
Asset management fees 10,258 9,488 8
Credit card service charges and fees 14,882 12,855 16
Retail investment sales 9,737 9,739 --
Trading account profits
and commissions 10,903 3,609 202
Investment securities gains, net 7,591 4 NM
Other income 53,245 41,215 29
-------- --------
Total - excluding gain on
sale of branches 179,851 137,645 31
Gain on sale of branches -- 11,800 (100)
-------- --------
Total $ 179,851 $ 149,445 20
======== ========
NONINTEREST EXPENSE
Salaries and benefits $ 168,243 $ 148,718 13
Net occupancy expense 26,139 22,319 17
Equipment expense 29,526 24,186 22
Professional services 22,182 17,066 30
Marketing expense 9,958 7,460 33
Amortization of intangibles 12,425 10,787 15
Merger and integration
expenses 5,348 4,990 7
Other expense 61,943 53,189 16
-------- --------
Total $ 335,764 $ 288,715 16
======== ========
Three Months Ended
---------------------------------
2001 2000
---------------------- --------
Jun 30 Mar 31 Dec 31
-------- -------- --------
NONINTEREST INCOME
Service charges on deposit accounts $ 38,708 $ 34,527 $ 33,905
Asset management fees 5,165 5,093 5,383
Credit card service charges and fees 8,276 6,606 8,515
Retail investment sales 4,792 4,945 4,296
Trading account profits
and commissions 5,587 5,316 2,525
Investment securities gains, net 2,605 4,986 --
Other income 25,999 27,246 23,950
-------- -------- --------
Total - excluding gain on
sale of branches 91,132 88,719 78,574
Gain on sale of branches -- -- --
-------- -------- --------
Total $ 91,132 $ 88,719 $ 78,574
======== ======== ========
NONINTEREST EXPENSE
Salaries and benefits $ 84,430 $ 83,813 $ 81,571
Net occupancy expense 13,360 12,779 12,061
Equipment expense 14,786 14,740 15,409
Professional services 11,721 10,461 11,858
Marketing expense 6,018 3,940 3,619
Amortization of intangibles 6,205 6,220 6,917
Merger and integration expenses 604 4,744 1,219
Other expense 30,719 31,224 30,558
-------- -------- --------
Total $ 167,843 $ 167,921 $ 163,212
======== ======== ========
Three Months Ended
----------------------
2000
----------------------
Sept 30 Jun 30
-------- --------
NONINTEREST INCOME
Service charges on deposit accounts $ 32,836 $ 31,573
Asset management fees 5,246 4,755
Credit card service charges and fees 7,872 6,884
Retail investment sales 4,439 4,452
Trading account profits
and commissions 1,963 1,269
Investment securities gains, net -- 1
Other income 19,921 21,692
-------- --------
Total - excluding gain on
sale of branches 72,277 70,626
Gain on sale of branches 4,900 11,800
-------- --------
Total $ 77,177 $ 82,426
======== ========
NONINTEREST EXPENSE
Salaries and benefits $ 74,632 $ 75,201
Net occupancy expense 11,819 11,404
Equipment expense 13,217 12,307
Professional services 8,875 8,828
Marketing expense 2,151 4,023
Amortization of intangibles 6,098 5,408
Merger and integration
expenses 2,687 2,287
Other expense 27,879 29,074
-------- --------
Total $147,358 $148,532
======== ========
NM - Not meaningful
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