Compass Bancshares Reports Record Third Quarter EPS of $0.83.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) ): --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 $105.1 million --Balanced top-line revenue growth; total revenue up 13% --Net interest income up 10%; noninterest income increases 16% --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. drives improved efficiency ratio to 53.80% --Focused earning asset Earning asset An asset that generates income, e.g., income from rental property. growth continues; total loans increase 13% from year ago --Total deposits increase 14%; led by a 14% increase in noninterest bearing deposits Compass Bancshares, Inc. (Nasdaq:CBSS) today reported record earnings of $306.3 million for the first nine months of 2005, a 13 percent increase over the $271.6 million earned during the first nine months of 2004. For the same time period, earnings per share increased 12 percent to $2.42 from $2.17 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 nine months of 2005 were 1.41 percent and 19.09 percent, respectively. Earnings for the third quarter of 2005 increased 12 percent to $105.1 million compared to $93.6 million earned during the third quarter of 2004. Earnings per share for the third quarter of 2005 increased 11 percent to $0.83 from $0.75 in the prior year. Return on average assets and return on average shareholders' equity for the third quarter of 2005 were 1.40 percent and 18.85 percent, respectively. D. Paul Jones Paul Jones can refer to:
adj. Being between 10 and 99 percent: double-digit inflation. low-cost deposit generation, solid loan production and continued fee income growth. Our ability to deliver strong growth to our shareholders in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of a challenging interest rate environment provides further evidence that our growth strategies are working. We believe Compass' diversified diversified (di·verˑ·s business mix, low-cost deposit funding base, investment in our distribution network and sales and service culture position us well to meet the challenges facing us. These strengths, combined with the momentum of our core businesses and our ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. 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 give us reason to expect that this will be our 18th consecutive year of record earnings." Jones added, "Compass' record financial performance was fueled by a 13 percent increase in revenue as both net interest income and noninterest income posted double-digit gains. Net interest income increased 10 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 16 percent from prior year levels and now represents almost 41 percent of total revenue. Additionally, the momentum of our revenue growth enabled us to generate positive operating leverage resulting in a 149 basis point improvement in our efficiency ratio to 53.80 percent." "Focused earning asset growth, particularly high-quality loans, continued with total loans increasing 13 percent over prior year levels. Equally important, our ability to fund loan demand primarily through internal deposit generation continued during the quarter. Total deposits increased 14 percent, led by a 14 percent increase in noninterest bearing deposits. Noninterest bearing deposits now represent more than 32 percent of Compass' total deposits," Jones stated. "While our percent net interest margin increased slightly from second quarter levels, we recognize the challenges throughout 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 flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. yield curve and expectations that interest rates will continue to rise. Our focus, however, remains on generating sufficient volumes of high-quality loans and continued growth of low-cost deposits. Accordingly, during the third quarter we registered a $23.4 million increase in net interest income compared to a year ago." "At the same time, loan growth did not come at the expense of maintaining sound credit quality standards. 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 decreased to 0.31 percent compared to 0.40 percent in the third quarter of 2004. This marked the sixth consecutive quarter of improvement in this measure. Net charge-offs as a percentage of average loans were 0.55 percent compared to 0.44 percent in the third quarter of 2004. In response to the strong loan growth we experienced, loan loss provision expense exceeded net charge-offs by $5.8 million during the quarter and our allowance for loan losses as a percentage of loans ended the quarter at 1.25 percent," Jones said. During the quarter, Compass announced plans to expand its presence in the Dallas-Fort Worth-Arlington market with the signing of a definitive agreement to acquire Fort Worth-based TexasBanc Holding Co., the parent company of TexasBank. The largest independent commercial bank headquartered in Fort Worth, TexasBank has total assets of $1.6 billion and 24 banking centers. The combination creates a Southwestern south·west n. 1. Abbr. SW The direction or point on the mariner's compass halfway between due south and due west, or 135° west of due north. 2. An area or region lying in the southwest. 3. powerhouse A fourth-generation language from Cognos that was introduced in the late 1970s for midrange computers. It supports both character-oriented, terminal-based applications as well as Windows clients. Applications developed under PowerHouse can be imported into Cognos' Axiant client/server environment. that will rank as the fifth largest bank in Texas and will rank fourth in the Dallas-Fort Worth-Arlington metropolitan area based on deposit market share. The transaction is subject to all required regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals, approval by TexasBanc shareholders and other customary conditions. The combination is expected to be accretive on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis to shareholders of the combined company in 2006 and thereafter. The complementary strengths of the two companies are expected to generate significant revenue opportunities, although these opportunities are not included in the financial assumptions for the transaction. Including the pending acquisition, 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 163 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). , 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 11:00 a.m. Central Time on October October: see month. 18. 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 October 25, 2005. To access a replay of the conference call dial 1-800-642-1687, conference ID 1102272. 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.compassweb.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 September 30
-------------------------------
%
2005 2004 Change
----------- ----------- ------
EARNINGS SUMMARY
Net interest income $ 249,940 $ 226,531 10
Noninterest income (a) 170,645 147,185 16
----------- -----------
Total revenue (a) 420,585 373,716 13
Investment securities gains, net - 25,129 (100)
Provision for loan losses 34,195 25,617 33
Loss on prepayment of FHLB advances - 25,136 (100)
Noninterest expense 227,396 207,365 10
----------- -----------
Pretax income 158,994 140,727 13
Income tax expense 53,943 47,125 14
----------- -----------
Net income $ 105,051 $ 93,602 12
----------- -----------
Diluted earnings per share $ 0.83 $ 0.75 11
Diluted weighted average
shares outstanding 126,877 125,557 1
Nine Months
Ended September 30
------------------------------
%
2005 2004 Change
----------- ----------- ------
EARNINGS SUMMARY
Net interest income $ 726,402 $ 676,131 7
Noninterest income (a) 491,144 436,908 12
----------- -----------
Total revenue (a) 1,217,546 1,113,039 9
Investment securities gains, net 79 27,336 (100)
Provision for loan losses 82,268 78,140 5
Loss on prepayment of FHLB advances - 25,136 (100)
Noninterest expense 671,863 628,693 7
----------- -----------
Pretax income 463,494 408,406 13
Income tax expense 157,236 136,812 15
----------- -----------
Net income $ 306,258 $ 271,594 13
----------- -----------
Diluted earnings per share $ 2.42 $ 2.17 12
Diluted weighted average
shares outstanding 126,487 125,218 1
Three Months
Ended September 30
-------------------
2005 2004
------- -------
SELECTED RATIOS
Average common equity to
average assets 7.43 % 7.04 %
Average loans to average
total deposits 109.61 109.61
Return on average assets 1.40 1.34
Return on average equity 18.85 19.06
Efficiency ratio (b) 53.80 55.29
Return on average tangible equity (c) 22.70 23.39
Book value per common share $ 17.91 $ 16.17
Allowance for loan losses as
a % of total loans 1.25 % 1.39 %
Allowance for loan losses as
a % of nonperforming loans 511.13 527.94
Nine Months
Ended September 30
-------------------
2005 2004
------- -------
SELECTED RATIOS
Average common equity to
average assets 7.36 % 7.01 %
Average loans to average
total deposits 108.42 109.71
Return on average assets 1.41 1.32
Return on average equity 19.09 18.82
Efficiency ratio (b) 55.19 56.28
Return on average tangible equity (c) 23.14 23.17
Book value per common share $ 17.91 $ 16.17
Allowance for loan losses as
a % of total loans 1.25 % 1.39 %
Allowance for loan losses as
a % of nonperforming loans 511.13 527.94
Average for Three Months
Ended September 30
--------------------------------
%
2005 2004 Change
------------ ------------ ------
BALANCE SHEET HIGHLIGHTS
Total loans $20,419,873 $18,073,689 13
Total loans - managed 21,769,459 19,836,009 10
Total investment securities (d) 6,969,700 7,404,438 (6)
Earning assets (d) 27,451,411 25,557,240 7
Total assets 29,768,290 27,726,046 7
Noninterest bearing demand deposits 5,790,205 5,087,728 14
Interest bearing transaction
accounts 7,244,970 7,623,261 (5)
Total transaction accounts 13,035,175 12,710,989 3
Total deposits (d) 18,630,074 16,489,459 13
Shareholders' equity 2,211,500 1,953,286 13
Average for Nine Months
Ended September 30
--------------------------------
%
2005 2004 Change
------------ ------------ ------
BALANCE SHEET HIGHLIGHTS
Total loans $19,680,413 $17,763,080 11
Total loans - managed 21,127,788 19,470,015 9
Total investment securities (d) 7,093,157 7,501,556 (5)
Earning assets (d) 26,833,306 25,330,605 6
Total assets 29,138,452 27,490,796 6
Noninterest bearing demand deposits 5,632,093 4,861,393 16
Interest bearing transaction
accounts 7,311,081 7,687,399 (5)
Total transaction accounts 12,943,174 12,548,792 3
Total deposits (d) 18,152,323 16,190,226 12
Shareholders' equity 2,144,576 1,927,947 11
Ending Balance
September 30
--------------------------------
%
2005 2004 Change
------------ ------------ ------
BALANCE SHEET HIGHLIGHTS
Total loans $20,841,790 $18,419,986 13
Total loans - managed 22,142,422 20,125,545 10
Total investment securities (d) 6,874,317 7,163,568 (4)
Earning assets (d) 27,776,619 25,639,403 8
Total assets 30,131,280 27,781,158 8
Noninterest bearing demand deposits 6,085,377 5,319,272 14
Interest bearing transaction
accounts 7,513,815 7,501,115 -
Total transaction accounts 13,599,192 12,820,387 6
Total deposits (d) 18,829,156 16,492,147 14
Shareholders' equity 2,230,051 1,985,738 12
Period-end shares outstanding 124,510 122,774 1
(a) Excludes gains on sales of investment securities.
(b) Ratio is calculated by dividing noninterest expense less merger
and integration expense and loss on prepayment of FHLB advances
by taxable equivalent net interest income plus noninterest income
less gains on sales of investment securities and business.
(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
-----------------------------
2005
----------------------------
Sep 30 Jun 30 Mar 31
--------- --------- ---------
EARNINGS SUMMARY
Net interest income $249,940 $240,186 $236,276
Noninterest income (a) 170,645 165,938 154,561
--------- --------- ---------
Total revenue (a) 420,585 406,124 390,837
Investment securities
gains, net - 79 -
Provision for loan losses 34,195 27,800 20,273
Loss on prepayment of
FHLB advances - - -
Noninterest expense (b) 227,396 222,595 221,872
--------- --------- ---------
Pretax income 158,994 155,808 148,692
Income tax expense 53,943 53,357 49,936
--------- --------- ---------
Net income $105,051 $102,451 $ 98,756
--------- --------- ---------
Diluted earnings per share $ 0.83 $ 0.81 $ 0.78
Diluted weighted average
shares outstanding 126,877 126,212 126,388
Three Months Ended
-------------------
2004
------------------
Dec 31 Sep 30
--------- ---------
EARNINGS SUMMARY
Net interest income $235,697 $226,531
Noninterest income (a) 153,346 147,185
--------- ---------
Total revenue (a) 389,043 373,716
Investment securities
gains, net - 25,129
Provision for loan losses 27,518 25,617
Loss on prepayment of
FHLB advances - 25,136
Noninterest expense (b) 214,649 207,365
--------- ---------
Pretax income 146,876 140,727
Income tax expense 48,686 47,125
--------- ---------
Net income $ 98,190 $ 93,602
--------- ---------
Diluted earnings per share $ 0.78 $ 0.75
Diluted weighted average
shares outstanding 126,008 125,557
Three Months Ended
-----------------------------
2005
-----------------------------
Sep 30 Jun 30 Mar 31
-------- -------- --------
SELECTED RATIOS
Average common equity to
average assets 7.43 % 7.34 % 7.31 %
Average loans to average
total deposits 109.61 107.20 108.41
Return on average assets 1.40 1.41 1.40
Return on average equity 18.85 19.23 19.22
Efficiency ratio (c) 53.80 54.63 57.28
Return on average tangible equity (d) 22.70 23.35 23.40
Book value per common share $ 17.91 $ 17.54 $ 16.82
Three Months Ended
--------------------
2004
-------------------
Dec 31 Sep 30
-------- --------
SELECTED RATIOS
Average common equity to
average assets 7.19 % 7.04 %
Average loans to average
total deposits 109.56 109.61
Return on average assets 1.39 1.34
Return on average equity 19.29 19.06
Efficiency ratio (c) 54.92 55.29
Return on average tangible equity (d) 23.50 23.39
Book value per common share $ 16.59 $ 16.17
Sep 30, Jun 30, Annualized
2005 2005 % Change
----------- ----------- ----------
ENDING BALANCE SHEET
Total loans $20,841,790 $20,050,122 16
Total loans - managed 22,142,422 21,453,653 13
Total investment securities (e) 6,874,317 7,103,748 (13)
Earning assets (e) 27,776,619 27,223,842 8
Total assets 30,131,280 29,502,927 9
Noninterest bearing demand
deposits 6,085,377 5,858,976 15
Interest bearing transaction
accounts 7,513,815 7,150,123 20
Total transaction accounts 13,599,192 13,009,099 18
Total deposits (e) 18,829,156 18,213,381 14
Shareholders' equity 2,230,051 2,178,356 9
Sep 30, Jun 30, Annualized
2005 2005 % Change
----------- ----------- ----------
QUARTER AVERAGE BALANCE SHEET
Total loans $20,419,873 $19,592,145 17
Total loans - managed 21,769,459 21,047,735 14
Total investment securities (e) 6,969,700 7,138,544 (9)
Earning assets (e) 27,451,411 26,800,057 10
Total assets 29,768,290 29,110,789 9
Noninterest bearing demand
deposits 5,790,205 5,666,012 9
Interest bearing transaction
accounts 7,244,970 7,250,979 -
Total transaction accounts 13,035,175 12,916,991 4
Total deposits (e) 18,630,074 18,276,613 8
Shareholders' equity 2,211,500 2,136,798 14
(a) Excludes gains on sales of investment securities.
(b) Excludes loss on prepayment of FHLB advances.
(c) Ratio is calculated by dividing noninterest expense less merger
and integration expense and loss on prepayment of FHLB advances
by taxable equivalent net interest income plus noninterest
income less gains on sales of investment securities and
business.
(d) Excludes amortization of intangibles, net of tax, and intangible
assets.
(e) Includes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
2005
-----------------------------
Sep 30 Jun 30 Mar 31
--------- --------- ---------
NONPERFORMING ASSETS
Nonaccrual loans $ 50,261 $ 51,196 $ 49,908
Renegotiated loans 707 716 722
Other real estate, net 12,796 15,832 18,452
--------- --------- ---------
Total nonperforming assets $ 63,764 $ 67,744 $ 69,082
--------- --------- ---------
Accruing loans ninety days or more
past due $ 14,510 $ 13,725 $ 14,257
Other repossessed assets 685 705 740
Total nonperforming assets as
a % of loans and ORE 0.31 % 0.34 % 0.36 %
2004
-------------------
Dec 31 Sep 30
--------- ---------
NONPERFORMING ASSETS
Nonaccrual loans $ 49,947 $ 47,774
Renegotiated loans 734 724
Other real estate, net 19,998 25,778
--------- ---------
Total nonperforming assets $ 70,679 $ 74,276
--------- ---------
Accruing loans ninety days or more
past due $ 15,509 $ 15,595
Other repossessed assets 656 1,559
Total nonperforming assets as
a % of loans and ORE 0.37 % 0.40 %
Three Months Ended
-----------------------------
2005
-----------------------------
Sep 30 Jun 30 Mar 31
--------- --------- ---------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $254,708 $246,565 $258,339
Net charge-offs (NCO) 28,391 19,657 19,858
Allowance transferred to
other liabilities - - (12,189)
Provision for loan losses 34,195 27,800 20,273
--------- --------- ---------
Balance at end of period $260,512 $254,708 $246,565
--------- --------- ---------
Allowance for loan losses as
a % of total loans 1.25 % 1.27 % 1.29 %
Allowance for loan losses as
a % of nonperforming loans 511.13 490.65 486.99
Allowance for loan losses as
a % of nonperforming assets 408.56 375.99 356.92
Annualized as a % of average loans:
NCO - QTD 0.55 0.40 0.42
NCO - YTD 0.46 0.41 0.42
Three Months Ended
-------------------
2004
-------------------
Dec 31 Sep 30
--------- ---------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $256,038 $250,573
Net charge-offs (NCO) 25,217 20,152
Allowance transferred to
other liabilities - -
Provision for loan losses 27,518 25,617
--------- ---------
Balance at end of period $258,339 $256,038
--------- ---------
Allowance for loan losses as
a % of total loans 1.37 % 1.39 %
Allowance for loan losses as
a % of nonperforming loans 509.74 527.94
Allowance for loan losses as
a % of nonperforming assets 365.51 344.71
Annualized as a % of average loans:
NCO - QTD 0.54 0.44
NCO - YTD 0.51 0.50
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months Ended September 30
-------------------------------
2005
-------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $20,419,873 $321,406 6.24 %
Investment securities held
to maturity 2,442,377 30,151 4.90
Investment securities available
for sale (a) 4,573,722 48,333 4.19
Other earning assets 61,838 621 3.98
------------ ---------
Total earning assets (a) 27,497,810 400,511 5.78
Allowance for loan losses (257,946)
Unrealized loss on
securities available for sale (46,399)
Other assets 2,574,825
------------
$29,768,290
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts $ 7,244,970 18,807 1.03
Time deposits 2,626,289 23,545 3.56
Certificates of deposit of
$100,000 or more (a) 2,973,231 26,496 3.54
Federal funds purchased and
securities sold under agreement
to repurchase 4,271,034 37,194 3.45
Other short-term borrowings 194,706 1,418 2.89
FHLB and other borrowings (a) 4,088,608 41,899 4.07
------------ ---------
Total interest bearing liabilities (a) 21,398,838 149,359 2.77
--------- ------
Net interest spread 251,152 3.01 %
------
Noninterest bearing demand deposits 5,790,205
Other liabilities 367,747
Shareholders' equity 2,211,500
------------
$29,768,290
------------
Net yield on earning assets 3.62 %
------
Taxable equivalent adjustment:
Loans 319
Investment securities held to maturity 601
Investment securities available
for sale 284
Other earning assets 8
---------
Total taxable equivalent adjustment 1,212
---------
Net interest income $249,940
---------
(a) Excludes adjustment for market valuation.
Three Months Ended September 30
-------------------------------
2004
-------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ --------- -------
Assets
Earning assets:
Loans $18,073,689 $238,605 5.25 %
Investment securities held
to maturity 3,021,139 35,334 4.65
Investment securities available
for sale (a) 4,390,268 42,949 3.89
Other earning assets 79,113 403 2.03
------------ ---------
Total earning assets (a) 25,564,209 317,291 4.94
Allowance for loan losses (252,860)
Unrealized loss on
securities available for sale (6,969)
Other assets 2,421,666
------------
$27,726,046
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction accounts $ 7,623,261 11,741 0.61
Time deposits 1,966,445 15,657 3.17
Certificates of deposit of
$100,000 or more (a) 1,816,250 10,463 2.29
Federal funds purchased and
securities sold under agreement
to repurchase 4,328,872 15,438 1.42
Other short-term borrowings 129,356 395 1.21
FHLB and other borrowings (a) 4,511,451 36,184 3.19
------------ ---------
Total interest bearing liabilities (a) 20,375,635 89,878 1.75
--------- ------
Net interest spread 227,413 3.19 %
------
Noninterest bearing demand deposits 5,087,728
Other liabilities 309,397
Shareholders' equity 1,953,286
------------
$27,726,046
------------
Net yield on earning assets 3.54 %
------
Taxable equivalent adjustment:
Loans 213
Investment securities held to maturity 625
Investment securities available
for sale 35
Other earning assets 9
---------
Total taxable equivalent adjustment 882
---------
Net interest income $226,531
---------
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Nine Months Ended September 30
--------------------------------
2005
-------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ ----------- -------
Assets
Earning assets:
Loans $19,680,413 $ 885,016 6.01 %
Investment securities held
to maturity 2,576,399 93,530 4.85
Investment securities available
for sale (a) 4,556,072 140,256 4.12
Other earning assets 59,736 1,629 3.65
------------ -----------
Total earning assets (a) 26,872,620 1,120,431 5.57
Allowance for loan losses (256,095)
Unrealized gain (loss) on
securities available for sale (39,314)
Other assets 2,561,241
------------
$29,138,452
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction
accounts $ 7,311,081 47,510 0.87
Time deposits 2,570,628 64,919 3.38
Certificates of deposit of
$100,000 or more (a) 2,643,032 63,880 3.23
Federal funds purchased and
securities sold under agreement
to repurchase 4,213,095 92,886 2.95
Other short-term borrowings 168,421 2,922 2.32
FHLB and other borrowings (a) 4,126,514 118,904 3.85
------------ -----------
Total interest bearing
liabilities (a) 21,032,771 391,021 2.49
----------- ------
Net interest spread 729,410 3.08 %
------
Noninterest bearing demand deposits 5,632,093
Other liabilities 329,012
Shareholders' equity 2,144,576
------------
$29,138,452
------------
Net yield on earning assets 3.63 %
------
Taxable equivalent adjustment:
Loans 906
Investment securities held to
maturity 1,725
Investment securities available
for sale 345
Other earning assets 32
-----------
Total taxable equivalent adjustment 3,008
-----------
Net interest income $ 726,402
-----------
(a) Excludes adjustment for market valuation.
Nine Months Ended September 30
--------------------------------
2004
--------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ ----------- -------
Assets
Earning assets:
Loans $17,763,080 $ 694,070 5.22 %
Investment securities held
to maturity 3,043,246 109,742 4.82
Investment securities available
for sale (a) 4,424,810 137,944 4.16
Other earning assets 65,969 995 2.01
------------ -----------
Total earning assets (a) 25,297,105 942,751 4.98
Allowance for loan losses (249,226)
Unrealized gain (loss) on
securities available for sale 33,500
Other assets 2,409,417
------------
$27,490,796
------------
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing transaction
accounts $ 7,687,399 35,571 0.62
Time deposits 1,950,216 46,091 3.16
Certificates of deposit of
$100,000 or more (a) 1,693,654 28,159 2.22
Federal funds purchased and
securities sold under agreement
to repurchase 4,184,785 35,458 1.13
Other short-term borrowings 114,983 788 0.92
FHLB and other borrowings (a) 4,756,827 117,898 3.31
------------ -----------
Total interest bearing
liabilities (a) 20,387,864 263,965 1.73
----------- ------
Net interest spread 678,786 3.25 %
------
Noninterest bearing demand deposits 4,861,393
Other liabilities 313,592
Shareholders' equity 1,927,947
------------
$27,490,796
------------
Net yield on earning assets 3.58 %
------
Taxable equivalent adjustment:
Loans 540
Investment securities held to
maturity 1,962
Investment securities available
for sale 124
Other earning assets 29
-----------
Total taxable equivalent adjustment 2,655
-----------
Net interest income $ 676,131
-----------
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Nine Months
Ended September 30
-----------------------------
%
2005 2004 Change
--------- --------- ---------
NONINTEREST INCOME
Service charges on deposit accounts $220,024 $210,723 4
Card and merchant processing fees 70,100 55,139 27
Insurance commissions 45,182 39,180 15
Retail investment sales 25,977 24,151 8
Asset management fees 21,093 16,898 25
Corporate and correspondent
investment sales 16,391 15,220 8
Bank owned life insurance 12,852 12,427 3
Other income 74,734 63,170 18
--------- ---------
486,353 436,908 11
Investment securities
gains, net 79 27,336 (100)
Gain on sale of business 4,791 - -
--------- ---------
Total noninterest income $491,223 $464,244 6
--------- ---------
NONINTEREST EXPENSE
Salaries and benefits $363,085 $340,528 7
Equipment expense 61,277 56,602 8
Net occupancy expense 50,521 49,623 2
Professional services 44,388 40,154 11
Marketing expense 33,866 28,885 17
Communications expense 16,323 16,607 (2)
Amortization of intangibles 4,656 4,871 (4)
Merger and integration
expense 923 778 19
Other expense 96,824 90,645 7
--------- ---------
671,863 628,693 7
Loss on prepayment of FHLB advances - 25,136 (100)
--------- ---------
Total noninterest expense $671,863 $653,829 3
--------- ---------
Three Months Ended
-----------------------------
2005
-----------------------------
Sep 30 Jun 30 Mar 31
--------- --------- ---------
NONINTEREST INCOME
Service charges on deposit accounts $ 78,448 $ 78,927 $ 62,649
Card and merchant processing fees 24,496 24,274 21,330
Insurance commissions 13,888 15,570 15,724
Retail investment sales 8,748 8,448 8,781
Asset management fees 7,386 6,646 7,061
Corporate and correspondent
investment sales 7,037 5,234 4,120
Bank owned life insurance 4,396 4,216 4,240
Other income 26,246 22,623 25,865
--------- --------- ---------
170,645 165,938 149,770
Investment securities
gains, net - 79 -
Gain on sale of business - - 4,791
--------- --------- ---------
Total noninterest income $170,645 $166,017 $154,561
--------- --------- ---------
NONINTEREST EXPENSE
Salaries and benefits $122,979 $118,762 $121,344
Equipment expense 21,048 20,170 20,059
Net occupancy expense 17,036 16,833 16,652
Professional services 15,154 15,154 14,080
Marketing expense 10,505 11,476 11,885
Communications expense 5,400 5,447 5,476
Amortization of intangibles 1,541 1,588 1,527
Merger and integration
expense 454 235 234
Other expense 33,279 32,930 30,615
--------- --------- ---------
227,396 222,595 221,872
Loss on prepayment of FHLB advances - - -
--------- --------- ---------
Total noninterest expense $227,396 $222,595 $221,872
--------- --------- ---------
Three Months Ended
-------------------
2004
-------------------
Dec 31 Sep 30
--------- ---------
NONINTEREST INCOME
Service charges on deposit accounts $ 72,085 $ 73,401
Card and merchant processing fees 20,409 19,554
Insurance commissions 12,257 11,787
Retail investment sales 7,165 8,501
Asset management fees 5,768 5,479
Corporate and correspondent
investment sales 5,237 4,347
Bank owned life insurance 4,742 4,224
Other income 25,683 19,892
--------- ---------
153,346 147,185
Investment securities
gains, net - 25,129
Gain on sale of business - -
--------- ---------
Total noninterest income $153,346 $172,314
--------- ---------
NONINTEREST EXPENSE
Salaries and benefits $117,828 $111,061
Equipment expense 19,567 19,301
Net occupancy expense 16,168 16,377
Professional services 17,226 13,407
Marketing expense 4,364 9,749
Communications expense 5,252 5,246
Amortization of intangibles 1,672 1,621
Merger and integration
expense 497 233
Other expense 32,075 30,370
--------- ---------
214,649 207,365
Loss on prepayment of FHLB advances - 25,136
--------- ---------
Total noninterest expense $214,649 $232,501
--------- ---------
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