Compass Bancshares Reports Record Second Quarter EPS of $0.88.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. . -- 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) ): --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 $115.4 million --Total revenue up 16%; net interest income up 22% --Focused earning asset Earning asset An asset that generates income, e.g., income from rental property. growth continues; average loans increase 22% from year ago --Average deposits increase 23%; transaction account deposits increase 19% from year ago --NCO ratio decreases to 0.28% from 0.40% in prior year; NPA (1) (Numbering Plan Area) The Bellcore/Telcordia telephone area code system in use in the U.S., Canada, Alaska, Hawaii and islands in the Caribbean. See NPA code. (2) (Network Professional Association, San Diego, CA, www.npanet. ratio declines to 0.28% Compass Bancshares, Inc. (Nasdaq: CBSS) today reported record earnings of $223.3 million for the first six months of 2006, a 12 percent increase over the $199 million earned during the first six months of 2005. For the same time period, earnings per share increased 10 percent to $1.73 from $1.57 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 first six months of 2006 were 1.41 percent and 18.34 percent, respectively. Earnings for the second quarter of 2006 increased nine percent to $115.4 million compared to $106 million earned during the second quarter of 2005. Earnings per share for the second quarter of 2006 increased six percent to $0.88 from $0.83 in the prior year. Return on average assets and return on average shareholders' equity for the second quarter of 2006 were 1.40 percent and 17.75 percent, respectively. D. Paul Jones Paul Jones can refer to:
Fort Worth-based TexasBank, which was acquired at the end of the first quarter. While we are encouraged by our ability to deliver strong growth to our shareholders in a difficult operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. , we recognize the challenges facing 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 given the uncertainty over economic conditions. We continue to believe that Compass' diversified diversified (di·verˑ·s business mix, low-cost funding base, expanding distribution network and sales and service culture position us well to meet the challenges facing us. Given these strengths, combined with the momentum of our core businesses and 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 , 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 2006." Jones added, "Compass' record financial performance was fueled by a 16 percent increase in revenue as both net interest income and noninterest income posted solid gains. Net interest income increased 22 percent from year ago levels driven by solid loan growth and continued low-cost deposit generation. Most of our major fee-based businesses generated solid results as noninterest income increased seven percent from prior year levels. While noninterest expense levels were elevated by the full-quarter impact of the TexasBank acquisition, our ability to continue to grow top-line revenue enabled us to record positive operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. as our efficiency ratio showed improvement from first quarter levels." "Compass continued to experience solid balance sheet growth with average 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 increasing 13 percent over prior year levels. More importantly, the growth in earning assets was driven by a 22 percent increase in average loans, offset in part by a nine percent decrease in our investment securities portfolio. At the same time, our ability to fund loan demand primarily through internal deposit generation met with continued success. Average deposits increased 23 percent, including a 19 percent increase in transaction account deposits," Jones stated. "While our percent net interest margin increased to 3.80 percent from 3.55 percent a year ago, we recognize the challenges of a flat yield curve Flat Yield Curve A chart that shows that the yields of bonds with short maturities are equal to the yields of bonds with longer maturities. and the obstacles the financial services industry faces given the pressure of rising funding costs and uncertainty over interest rates. Our focus, however, remains on generating high-quality loans and continued growth of lower-cost transaction account deposits. Accordingly, during the second quarter we registered a $51.2 million increase in net interest income compared to a year ago." "Importantly, loan growth did not come at the expense of maintaining sound credit quality standards as both net charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. and nonperforming asset Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. ratios improved from historically low-levels. Net charge-offs as a percentage of average loans decreased to 0.28 percent compared to 0.40 percent in the second quarter of 2005. Nonperforming assets as a percentage of loans and other real estate decreased to 0.28 percent compared to 0.34 percent at the end of the second quarter of 2005. At the same time, loan loss provision expense exceeded net charge-offs by $10.8 million during the quarter and our allowance for loan losses as a percentage ended the quarter at 1.19 percent," Jones said. Compass operates 409 full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. banking centers including 162 in Texas, 90 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). , 73 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 , 32 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 10 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 1:00 p.m. Central Time on July July: see month. 19. 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.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 July 26, 2006. To access a replay of the conference call dial 1-800-642-1687, conference ID 2655489. Additional information about Compass, a member of the S&P 500 Index and Dow Jones Dow Jones the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance Select Dividend Index, can be found at www.compassbank.com. "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
--------------------------
%
2006 2005 Change
--------- --------- ------
EARNINGS SUMMARY
Net interest income $287,682 $236,470 22
Noninterest income (a) 181,417 169,654 7
--------- ---------
Total revenue (a) 469,099 406,124 16
Trading gains (losses) on
economic hedge swaps - 5,698 (100)
Investment securities gains
(losses), net (51) 79 (165)
Gain on prepayment of FHLB advances - - -
Provision for loan losses 27,322 27,800 (2)
Noninterest expense 265,850 222,595 19
--------- ---------
Pretax income 175,876 161,506 9
Income tax expense 60,505 55,518 9
--------- ---------
Net income $115,371 $105,988 9
--------- ---------
Diluted earnings per share $ 0.88 $ 0.83 6
Diluted weighted average
shares outstanding 131,395 126,212 4
Six Months
Ended June 30
--------------------------
%
2006 2005 Change
--------- --------- ------
EARNINGS SUMMARY
Net interest income $547,943 $468,043 17
Noninterest income (a) 346,706 328,918 5
--------- ---------
Total revenue (a) 894,649 796,961 12
Trading gains (losses) on
economic hedge swaps - (3,601) (100)
Investment securities gains
(losses), net (14,889) 79 NM
Gain on prepayment of FHLB advances 14,893 - -
Provision for loan losses 44,434 48,073 (8)
Noninterest expense 510,220 444,467 15
--------- ---------
Pretax income 339,999 300,899 13
Income tax expense 116,719 101,927 15
--------- ---------
Net income $223,280 $198,972 12
--------- ---------
Diluted earnings per share $ 1.73 $ 1.57 10
Diluted weighted average
shares outstanding 128,923 126,407 2
Three Months
Ended June 30
-----------------
2006 2005
-------- --------
SELECTED RATIOS
Average common equity to
average assets 7.86% 7.37%
Average loans to average
total deposits 105.80 107.17
Return on average assets 1.40 1.46
Return on average equity 17.75 19.82
Efficiency ratio (b) 55.39 53.88
Return on average tangible equity (c) 25.30 24.05
Book value per common share $ 20.15 $ 17.61
Allowance for loan losses as
a % of total loans 1.19% 1.27%
Allowance for loan losses as
a % of nonperforming loans 512.28 490.65
Six Months
Ended June 30
-----------------
2006 2005
-------- --------
SELECTED RATIOS
Average common equity to
average assets 7.66% 7.36%
Average loans to average
total deposits 106.25 107.76
Return on average assets 1.41 1.39
Return on average equity 18.34 18.93
Efficiency ratio (b) 55.99 56.18
Return on average tangible equity (c) 24.21 23.00
Book value per common share $ 20.15 $ 17.61
Allowance for loan losses as
a % of total loans 1.19% 1.27%
Allowance for loan losses as
a % of nonperforming loans 512.28 490.65
Average for Three Months
Ended June 30
--------------------------------
%
2006 2005 Change
------------ ------------ ------
BALANCE SHEET HIGHLIGHTS
Total loans $23,825,717 $19,592,145 22
Total loans - managed 24,957,379 21,047,735 19
Total investment securities (d) 6,481,514 7,138,544 (9)
Earning assets (d) 30,389,626 26,800,057 13
Total assets 33,161,966 29,112,830 14
Noninterest bearing demand deposits 6,383,257 5,666,012 13
Interest bearing transaction
accounts 8,974,393 7,250,979 24
Total transaction accounts 15,357,650 12,916,991 19
Total deposits (d) 22,518,573 18,281,534 23
Shareholders' equity 2,607,705 2,144,373 22
Average for Six Months
Ended June 30
--------------------------------
%
2006 2005 Change
------------ ------------ ------
BALANCE SHEET HIGHLIGHTS
Total loans $22,794,141 $19,304,555 18
Total loans - managed 23,957,534 20,801,635 15
Total investment securities (d) 6,616,323 7,155,908 (8)
Earning assets (d) 29,487,323 26,519,131 11
Total assets 32,045,193 28,818,093 11
Noninterest bearing demand deposits 6,147,916 5,551,727 11
Interest bearing transaction
accounts 8,521,101 7,344,685 16
Total transaction accounts 14,669,017 12,896,412 14
Total deposits (d) 21,453,840 17,913,829 20
Shareholders' equity 2,454,641 2,119,742 16
Ending Balance
June 30
--------------------------------
%
2006 2005 Change
------------ ------------ ------
BALANCE SHEET HIGHLIGHTS
Total loans $24,232,115 $20,050,122 21
Total loans - managed 25,330,180 21,453,653 18
Total investment securities (d) 6,414,790 7,103,748 (10)
Earning assets (d) 30,783,692 27,223,842 13
Total assets 33,613,492 29,501,424 14
Noninterest bearing demand deposits 6,663,451 5,858,976 14
Interest bearing transaction
accounts 9,052,680 7,150,123 27
Total transaction accounts 15,716,131 13,009,099 21
Total deposits (d) 22,837,259 18,217,066 25
Shareholders' equity 2,605,512 2,187,213 19
Period-end shares outstanding 129,320 124,205 4
(a) Excludes trading settlements on economic hedge swaps, net gains
(losses) on sales of investment securities and gain on prepayment
of FHLB advances.
(b) Ratio is calculated by dividing noninterest expense less merger
and integration expense by taxable equivalent net interest income
plus noninterest income less net gains (losses) on sales of
investment securities, gains on sales of business / branches and
gain on prepayments of FHLB advances.
(c) Excludes amortization of intangibles, net of tax, and intangible
assets.
(d) Includes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months Ended
-----------------------------
2006 2005
------------------- ---------
Jun 30 Mar 31 Dec 31
--------- --------- ---------
EARNINGS SUMMARY
Net interest income $287,682 $260,261 $253,825
Noninterest income (a) 181,417 165,289 172,840
--------- --------- ---------
Total revenue (a) 469,099 425,550 426,665
Trading gains (losses)on
economic hedge swaps - - (6,054)
Investment securities gains
(losses), net (51) (14,838) -
Gain on prepayment of FHLB advances - 14,893 -
Provision for loan losses 27,322 17,112 35,550
Noninterest expense 265,850 244,370 229,940
--------- --------- ---------
Pretax income 175,876 164,123 155,121
Income tax expense 60,505 56,214 52,983
--------- --------- ---------
Net income $115,371 $107,909 $102,138
--------- --------- ---------
Diluted earnings per share $ 0.88 $ 0.85 $ 0.81
Diluted weighted average
shares outstanding 131,395 126,793 126,188
Three Months Ended
-------------------
2005
-------------------
Sep 30 Jun 30
--------- ---------
EARNINGS SUMMARY
Net interest income $247,111 $236,470
Noninterest income (a) 173,474 169,654
--------- ---------
Total revenue (a) 420,585 406,124
Trading gains (losses) on
economic hedge swaps (6,978) 5,698
Investment securities gains
(losses), net - 79
Gain on prepayment of FHLB advances - -
Provision for loan losses 34,195 27,800
Noninterest expense 227,396 222,595
--------- ---------
Pretax income 152,016 161,506
Income tax expense 51,296 55,518
--------- ---------
Net income $100,720 $105,988
--------- ---------
Diluted earnings per share $ 0.80 $ 0.83
Diluted weighted average
shares outstanding 126,877 126,212
Three Months Ended
-----------------------------
2006 2005
------------------ ----------
Jun 30 Mar 31 Dec 31
-------- --------- ----------
SELECTED RATIOS
Average common equity to
average assets 7.86% 7.44% 7.32%
Average loans to average
total deposits 105.80 106.74 109.05
Return on average assets 1.40 1.42 1.34
Return on average equity 17.75 19.03 18.24
Efficiency ratio (b) 55.39 56.66 54.57
Return on average tangible equity (c) 25.30 23.13 21.94
Book value per common share $20.15 $19.82 $18.10
Three Months Ended
------------------
2005
------------------
Sep 30 Jun 30
-------- ---------
SELECTED RATIOS
Average common equity to
average assets 7.45% 7.37%
Average loans to average
total deposits 109.58 107.17
Return on average assets 1.34 1.46
Return on average equity 18.02 19.82
Efficiency ratio (b) 54.71 53.88
Return on average tangible equity (c) 21.70 24.05
Book value per common share $17.95 $17.61
Jun 30, Mar 31, Annualized
2006 2006 % Change
------------ ------------ ----------
ENDING BALANCE SHEET
Total loans $24,232,115 $23,308,114 16
Total loans - managed 25,330,180 24,476,005 14
Total investment securities (d) 6,414,790 6,546,014 (8)
Earning assets (d) 30,783,692 29,983,288 11
Total assets 33,613,492 32,782,179 10
Noninterest bearing demand
deposits 6,663,451 6,765,908 (6)
Interest bearing transaction
accounts 9,052,680 9,048,992 -
Total transaction accounts 15,716,131 15,814,900 (2)
Total deposits (d) 22,837,259 22,128,509 13
Shareholders' equity 2,605,512 2,557,940 7
Jun 30, Mar 31, Annualized
2006 2006 % Change
------------ ------------ ----------
QUARTER AVERAGE BALANCE SHEET
Total loans $23,825,717 $21,751,103 38
Total loans - managed 24,957,379 22,946,579 35
Total investment securities (d) 6,481,514 6,752,631 (16)
Earning assets (d) 30,389,626 28,574,996 25
Total assets 33,161,966 30,916,012 29
Noninterest bearing demand
deposits 6,383,257 5,909,960 32
Interest bearing transaction
accounts 8,974,393 8,062,772 45
Total transaction accounts 15,357,650 13,972,732 40
Total deposits (d) 22,518,573 20,377,276 42
Shareholders' equity 2,607,705 2,299,876 54
(a) Excludes trading settlements on economic hedge swaps, net gains
(losses) on sales of investment securities and gain on prepayment
of FHLB advances.
(b) Ratio is calculated by dividing noninterest expense less merger
and integration expense by taxable equivalent net interest income
plus noninterest income less net gains (losses) on sales of
investment securities, gains on sales of business / branches and
gain on prepayments of FHLB advances.
(c) Excludes amortization of intangibles, net of tax, and intangible
assets.
(d) Includes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
2006 2005
------------------- ---------
Jun 30 Mar 31 Dec 31
--------- --------- ---------
NONPERFORMING ASSETS
Nonaccrual loans $ 53,166 $ 55,716 $ 47,578
Renegotiated loans 3,276 3,286 698
Other real estate, net 11,803 11,155 11,510
--------- --------- ---------
Total nonperforming assets $ 68,245 $ 70,157 $ 59,786
--------- --------- ---------
Accruing loans ninety days or more
past due $ 14,862 $ 16,080 $ 14,539
Other repossessed assets 565 599 763
Total nonperforming assets as
a % of loans and ORE 0.28% 0.30% 0.28%
2005
-------------------
Sep 30 Jun 30
--------- ---------
NONPERFORMING ASSETS
Nonaccrual loans $ 50,261 $ 51,196
Renegotiated loans 707 716
Other real estate, net 12,796 15,832
--------- ---------
Total nonperforming assets $ 63,764 $ 67,744
--------- ---------
Accruing loans ninety days or more
past due $ 14,510 $ 13,725
Other repossessed assets 685 705
Total nonperforming assets as
a % of loans and ORE 0.31% 0.34%
Three Months Ended
-----------------------------
2006 2005
------------------- ---------
Jun 30 Mar 31 Dec 31
--------- --------- ---------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $282,457 $267,173 $260,512
Net charge-offs (NCO) 16,557 17,086 28,889
Allowance acquired (transferred) (4,079) 15,258 -
Provision for loan losses 27,322 17,112 35,550
--------- --------- ---------
Balance at end of period $289,143 $282,457 $267,173
--------- --------- ---------
Allowance for loan losses as
a % of total loans 1.19% 1.21% 1.25%
Allowance for loan losses as
a % of nonperforming loans 512.28 478.72 553.43
Allowance for loan losses as
a % of nonperforming assets 423.68 402.61 446.88
Annualized as a % of average loans:
NCO - QTD 0.28 0.32 0.54
NCO - YTD 0.30 0.32 0.48
Three Months Ended
-------------------
2005
-------------------
Sep 30 Jun 30
--------- ---------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $254,708 $246,565
Net charge-offs (NCO) 28,391 19,657
Allowance acquired (transferred) - -
Provision for loan losses 34,195 27,800
--------- ---------
Balance at end of period $260,512 $254,708
--------- ---------
Allowance for loan losses as
a % of total loans 1.25% 1.27%
Allowance for loan losses as
a % of nonperforming loans 511.13 490.65
Allowance for loan losses as
a % of nonperforming assets 408.56 375.99
Annualized as a % of average loans:
NCO - QTD 0.55 0.40
NCO - YTD 0.46 0.41
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months Ended June 30
------------------------------
2006
------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $23,825,717 $433,606 7.30%
Investment securities held
to maturity 2,186,628 26,588 4.88
Investment securities available
for sale (a) 4,392,836 51,628 4.71
Other earning assets 82,395 1,047 5.10
------------ ---------
Total earning assets (a) 30,487,576 512,869 6.75
Allowance for loan losses (286,419)
Unrealized loss on
securities available for sale (97,950)
Other assets 3,058,759
-----------
$33,161,966
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts $ 8,974,393 46,337 2.07
Time deposits 3,421,489 37,837 4.44
Certificates of deposit of
$100,000 or more (a) 3,740,929 42,244 4.53
Federal funds purchased and
securities sold under agreement
to repurchase 2,917,273 35,588 4.89
Other short-term borrowings 878,471 10,757 4.91
FHLB and other borrowings (a) 3,883,337 51,018 5.27
------------ ---------
Total interest bearing liabilities (a) 23,815,892 223,781 3.77
--------- -------
Net interest spread 289,088 2.98%
-------
Noninterest bearing demand deposits 6,383,257
Other liabilities 355,112
Shareholders' equity 2,607,705
------------
$33,161,966
------------
Net yield on earning assets 3.80%
-------
Taxable equivalent adjustment:
Loans 354
Investment securities held to maturity 615
Investment securities available
for sale 429
Other earning assets 8
---------
Total taxable equivalent adjustment 1,406
--------
Net interest income $287,682
---------
(a) Excludes adjustment for market valuation.
Three Months Ended June 30
------------------------------
2005
------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $19,592,145 $294,036 6.02%
Investment securities held
to maturity 2,582,186 30,687 4.77
Investment securities available
for sale (a) 4,604,631 45,730 3.98
Other earning assets 69,368 613 3.54
------------ ---------
Total earning assets (a) 26,848,330 371,066 5.54
Allowance for loan losses (250,667)
Unrealized loss on
securities available for sale (48,273)
Other assets 2,563,440
------------
$29,112,830
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts $ 7,250,979 14,999 0.83
Time deposits 2,727,305 22,643 3.33
Certificates of deposit of
$100,000 or more (a) 2,637,238 21,455 3.26
Federal funds purchased and
securities sold under agreement
to repurchase 4,033,195 29,500 2.93
Other short-term borrowings 174,155 972 2.24
FHLB and other borrowings (a) 4,161,860 44,133 4.25
------------ ---------
Total interest bearing liabilities (a) 20,984,732 133,702 2.56
--------- -------
Net interest spread 237,364 2.98%
-------
Noninterest bearing demand deposits 5,666,012
Other liabilities 317,713
Shareholders' equity 2,144,373
------------
$29,112,830
------------
Net yield on earning assets 3.55%
-------
Taxable equivalent adjustment:
Loans 296
Investment securities held to maturity 555
Investment securities available
for sale 29
Other earning assets 14
---------
Total taxable equivalent adjustment 894
--------
Net interest income $236,470
---------
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Six Months Ended June 30
------------------------------
2006
------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $22,794,141 $806,366 7.13%
Investment securities held
to maturity 2,200,542 52,988 4.86
Investment securities available
for sale (a) 4,510,595 103,026 4.61
Other earning assets 76,859 1,829 4.80
------------ ---------
Total earning assets (a) 29,582,137 964,209 6.57
Allowance for loan losses (278,540)
Unrealized loss on
securities available for sale (94,814)
Other assets 2,836,410
------------
$32,045,193
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts $ 8,521,101 79,784 1.89
Time deposits 3,200,259 67,778 4.27
Certificates of deposit of
$100,000 or more (a) 3,585,441 78,157 4.40
Federal funds purchased and
securities sold under agreement
to repurchase 3,161,534 72,865 4.65
Other short-term borrowings 653,025 15,258 4.71
FHLB and other borrowings (a) 3,960,748 99,876 5.09
------------ ---------
Total interest bearing liabilities (a) 23,082,108 413,718 3.61
-------- -------
Net interest spread 550,491 2.96%
-------
Noninterest bearing demand deposits 6,147,916
Other liabilities 360,528
Shareholders' equity 2,454,641
------------
$32,045,193
------------
Net yield on earning assets 3.75%
-------
Taxable equivalent adjustment:
Loans 734
Investment securities held to maturity 1,134
Investment securities available
for sale 662
Other earning assets 18
---------
Total taxable equivalent adjustment 2,548
---------
Net interest income $547,943
---------
(a) Excludes adjustment for market valuation.
Six Months Ended June 30
------------------------------
2005
------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $19,304,555 $563,610 5.89%
Investment securities held
to maturity 2,644,520 63,379 4.83
Investment securities available
for sale (a) 4,547,101 91,923 4.08
Other earning assets 58,668 1,008 3.46
------------ ---------
Total earning assets (a) 26,554,844 719,920 5.47
Allowance for loan losses (255,155)
Unrealized loss on
securities available for sale (35,713)
Other assets 2,554,117
------------
$28,818,093
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts $ 7,344,685 28,703 0.79
Time deposits 2,542,336 41,374 3.28
Certificates of deposit of
$100,000 or more (a) 2,475,081 38,482 3.14
Federal funds purchased and
securities sold under agreement
to repurchase 4,183,645 55,692 2.68
Other short-term borrowings 155,060 1,504 1.96
FHLB and other borrowings (a) 4,142,572 84,326 4.10
------------ ---------
Total interest bearing liabilities (a) 20,843,379 250,081 2.42
--------- -------
Net interest spread 469,839 3.05%
-------
Noninterest bearing demand deposits 5,551,727
Other liabilities 303,245
Shareholders' equity 2,119,742
------------
$28,818,093
------------
Net yield on earning assets 3.57%
-------
Taxable equivalent adjustment:
Loans 587
Investment securities held to maturity 1,124
Investment securities available
for sale 61
Other earning assets 24
---------
Total taxable equivalent adjustment 1,796
---------
Net interest income $468,043
---------
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Six Months
Ended June 30
-----------------------------
%
2006 2005 Change
--------- --------- ---------
NONINTEREST INCOME
Service charges on deposit accounts $154,485 $141,576 9
Card and merchant processing fees 54,380 45,604 19
Insurance commissions 33,081 31,294 6
Retail investment sales 20,324 17,229 18
Asset management fees 16,156 13,707 18
Corporate and correspondent
investment sales 10,836 9,354 16
Bank owned life insurance 10,094 8,456 19
Other income 47,350 48,488 (2)
--------- ---------
346,706 315,708 10
Trading settlements on economic
hedge swaps - 8,419 (100)
Trading gains (losses) on economic
hedge swaps - (3,601) (100)
Investment securities
gains (losses), net (14,889) 79 NM
Gain on prepayment of FHLB advances 14,893 - -
Gain on sale of business / branches - 4,791 (100)
--------- ---------
Total noninterest income $346,710 $325,396 7
--------- ---------
NONINTEREST EXPENSE
Salaries and benefits $280,319 $240,106 17
Equipment expense 44,133 40,229 10
Net occupancy expense 35,833 33,485 7
Professional services 30,800 29,234 5
Marketing expense 26,499 23,361 13
Communications expense 11,773 10,923 8
Amortization of intangibles 5,038 3,115 62
Merger and integration
expense 7,849 469 NM
Other expense 67,976 63,545 7
--------- ---------
Total noninterest expense $510,220 $444,467 15
--------- ---------
Three Months Ended
-----------------------------
2006 2005
------------------- ---------
Jun 30 Mar 31 Dec 31
--------- --------- ---------
NONINTEREST INCOME
Service charges on deposit accounts $ 82,317 $ 72,168 $ 77,056
Card and merchant processing fees 28,673 25,707 25,491
Insurance commissions 15,477 17,604 14,180
Retail investment sales 10,904 9,420 7,913
Asset management fees 8,408 7,748 7,596
Corporate and correspondent
investment sales 5,607 5,229 7,096
Bank owned life insurance 5,191 4,903 4,615
Other income 24,840 22,510 25,143
--------- --------- ---------
181,417 165,289 169,090
Trading settlements on economic
hedge swaps - - 2,150
Trading gains (losses) on economic
hedge swaps - - (6,054)
Investment securities
gains (losses), net (51) (14,838) -
Gain on prepayment of FHLB advances - 14,893 -
Gain on sale of business / branches - - 1,600
--------- --------- ---------
Total noninterest income $181,366 $165,344 $166,786
--------- --------- ---------
NONINTEREST EXPENSE
Salaries and benefits $144,309 $136,010 $124,734
Equipment expense 22,586 21,547 20,702
Net occupancy expense 18,616 17,217 16,416
Professional services 15,896 14,904 17,252
Marketing expense 14,235 12,264 9,936
Communications expense 6,151 5,622 5,470
Amortization of intangibles 3,548 1,490 1,495
Merger and integration
expense 5,223 2,626 718
Other expense 35,286 32,690 33,217
--------- --------- ---------
Total noninterest expense $265,850 $244,370 $229,940
--------- --------- ---------
Three Months Ended
-------------------
2005
-------------------
Sep 30 Jun 30
--------- ---------
NONINTEREST INCOME
Service charges on deposit accounts $ 78,448 $ 78,927
Card and merchant processing fees 24,496 24,274
Insurance commissions 13,888 15,570
Retail investment sales 8,748 8,448
Asset management fees 7,386 6,646
Corporate and correspondent
investment sales 7,037 5,234
Bank owned life insurance 4,396 4,216
Other income 26,246 22,623
--------- ---------
170,645 165,938
Trading settlements on economic
hedge swaps 2,829 3,716
Trading gains (losses) on economic
hedge swaps (6,978) 5,698
Investment securities
gains (losses), net - 79
Gain on prepayment of FHLB advances - -
Gain on sale of business / branches - -
--------- ---------
Total noninterest income $166,496 $175,431
--------- ---------
NONINTEREST EXPENSE
Salaries and benefits $122,979 $118,762
Equipment expense 21,048 20,170
Net occupancy expense 17,036 16,833
Professional services 15,154 15,154
Marketing expense 10,505 11,476
Communications expense 5,400 5,447
Amortization of intangibles 1,541 1,588
Merger and integration
expense 454 235
Other expense 33,279 32,930
--------- ---------
Total noninterest expense $227,396 $222,595
--------- ---------
NM - Not meaningful
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