Compass Bancshares announces record operating earnings for first quarter 1997.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)--April 16, 1997-- 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/NMS: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) ) today reported record 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 $36.0 million for the quarter ending March 31, 1997, an 11 percent increase over the first quarter of 1996. Operating earnings per share for the first quarter of 1997 increased 10 percent to $0.56 as compared to $0.51 for the first quarter of the previous year. Operating earnings for both periods exclude gains or losses on securities transactions, and operating earnings for the first quarter of 1996 exclude a nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. gain on the sale of a nonstrategic bank office. Including such items, net income for the first quarter was $36.0 million versus $38.1 million for the first quarter of 1996 and earnings per share were $0.56 versus $0.60. Return on average assets was 1.23 percent 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. was 17.34 percent for the quarter ended March 31, 1997. D. Paul Jones Paul Jones can refer to:
adj. Being between 10 and 99 percent: double-digit inflation. increase in operating earnings is evidence of the strength and momentum of Compass' underlying businesses. Compass continues to generate solid fundamentals. Loans grew 16 percent and operating noninterest income increased 14 percent while credit quality remained superior. Also, we are pleased with the positive impact our internal initiatives have had on our net interest margin, which expanded to 4.21 percent. "Given these trends and Compass' position in attractive, dynamic markets, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our ability to continue delivering value to our shareholders as we move forward," Jones stated. Net interest income and operating noninterest income each increased 14 percent when compared to the first quarter of 1996. With respect to the balance sheet, both period-end total assets and 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 for the first quarter of 1997 increased 12 percent over first quarter 1996 levels. Specifically, total assets grew to $12.1 billion from $10.8 billion and earning assets grew to $11.2 billion from $10.0 billion. Period-end loans increased 16 percent to $7.9 billion at March 31, 1997 from $6.8 billion at March 31, 1996. Period-end deposits for the first quarter of 1997 increased 10 percent to $9.3 billion versus $8.4 billion one year ago, and shareholders' equity for the same time periods increased 10 percent to $849 million from $772 million. Also in the first quarter, the board of directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: an 11 percent increase in the cash dividend and a three-for-two stock split. The increase in the cash dividend represented the 16th consecutive annual increase in cash dividends which have grown at a compound annual rate in excess of 16 percent over the last five years. The stock split was accomplished through a 50 percent stock dividend distributed April 2, 1997. Acquisition activity continued in the first quarter of 1997 as well. During the first three months of 1997, Compass completed three acquisitions and announced one new acquisition. At the end of the first quarter, Compass had two acquisitions pending. Two of the completed acquisitions were in Texas: Horizon Bancorp, Inc. and its subsidiary, Horizon Bank & Trust of Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum with assets of $154 million and a Banc One banking office in Crosby, Texas Crosby is a census-designated place (CDP) in Harris County, Texas, United States. The population was 1,714 at the 2000 census. But what is widely considered Crosby (area code 77532) was approx. 20,000 people. with assets of $28 million. In January January: see month. , Compass announced its intention to acquire Central Texas Bancorp, Inc. and its subsidiary, Texas National Bank of Waco with assets of $213 million. This acquisition and the previously announced acquisition of Greater Brazos Brazos (brăz`əs), river, 870 mi (1,410 km) long (1,210 mi/1,947 km long with its main tributary), rising in E N.Mex. From its source it flows SE across Texas to enter the Gulf of Mexico at Freeport. Bancorp, Inc. and its subsidiary Commerce National Bank of Bryan/College Station with assets of $61 million are expected to be completed in the second quarter. As a result of its ongoing acquisition program, Compass has established strong core franchises in each of the four largest Texas metropolitan markets as well as a growing presence in several other rapidly growing markets along the I-35 corridor The I-35 Corridor is a megalopolis in the southern plains region of the United States. It runs from San Antonio, Texas to Kansas City, Missouri along Interstate 35. The corridor includes the cities of Austin, Dallas-Fort Worth, Oklahoma City, Tulsa, and Wichita. and east Texas. 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 , Compass completed its acquisition of Enterprise National Bank of Jacksonville Jacksonville. 1 City (1990 pop. 29,101), Pulaski co., central Ark., inc. 1941. The city has varied industries, including printing and publishing and the manufacture of electronic equipment, ordnance, and plastic and metal products. with assets of $171 million. As a result, Compass is now the third largest bank in Jacksonville with 21 full service banking offices serving this market. Once all pending acquisitions and new offices currently under construction are completed, Compass will operate 106 offices in Texas with assets of $4.9 billion, 88 banking offices with assets of $6.3 billion 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). , and 34 banking offices with assets of $1.2 billion in Florida. Shares of Compass Bancshares, Inc.'s common stock are traded in the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on national market system under the symbol CBSS. -0-
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months
Ended March 31 %
1997 1996 Change
FINANCIAL HIGHLIGHTS
Net income $ 35,961 $ 38,124
Nonoperating items, net of tax
Securities gains (losses), net (50) 4,255
Gain on sale of nonstrategic bank
office - 1,375
Operating earnings $ 36,011 $ 32,494 11
Operating earnings per share (b) $ 0.56 $ 0.51 10
Three Months
Ended March 31 %
1997 1996 Change
EARNINGS SUMMARY
Net interest income $ 113,548 $ 99,762 14
Provision for loan losses 5,324 3,584 49
Net interest income after provision 108,224 96,178 13
Noninterest income 40,121 44,255 (9)
Noninterest expense 91,698 80,512 14
Pretax income 56,647 59,921 (5)
Income tax expense 20,686 21,797 (5)
Net income $ 35,961 $ 38,124 (6)
Earnings per common share (b) $ 0.56 $ 0.60 (7)
Primary weighted average common
shares outstanding (b) 64,564 63,995 1
Average for
Three Months
Ended March 31 %
BALANCE SHEET SUMMARY 1997 1996 Change
Total loans net of unearned
income $ 7,718,731 $ 6,757,621 14
Total investment securities 3,140,386(a) 2,901,425(a) 8
Earning assets 11,020,168(a) 9,893,439(a) 11
Total assets 11,872,054 10,641,137 12
Noninterest bearing deposits 1,614,406 1,447,764 12
Interest bearing deposits 7,594,975 6,779,703 12
Total deposits 9,209,381 8,227,467 12
Shareholders' equity 840,892 771,933 9
Ending
Balance
March 31 %
BALANCE SHEET SUMMARY 1997 1996 Change
Total loans net of unearned
income $7,922,442 $6,815,357 16
Total investment securities 3,117,613(a) 2,834,844(a) 10
Earning assets 11,225,059(a) 10,019,045(a) 12
Total assets 12,121,178 10,814,553 12
Noninterest bearing deposits 1,691,609 1,515,382 12
Interest bearing deposits 7,575,421 6,907,882 10
Total deposits 9,267,030 8,423,264 10
Shareholders' equity 849,003 771,801 10
1997 1996
SELECTED RATIOS 1st Qtr 4th Qtr 3rd Qtr
Average equity to
average assets 7.08 % 6.90 % 6.76 %
Average net loans to average
total deposits 83.81 80.70 78.87
Return on average assets 1.23 1.13 0.92
Return on average total equity 17.34 16.40 13.67
Book value per common share (b) $ 13.29 $ 12.99 $ 12.59
1996
SELECTED RATIOS 2nd Qtr 1st Qtr
Average equity to
average assets 6.77 % 7.25 %
Average net loans to average
total deposits 80.43 82.13
Return on average assets 1.17 1.44
Return on average total equity 17.36 19.86
Book value per common share (b) $ 12.00 $ 12.12
(a) Includes adjustment for market valuation on available-for-sale
securities of $(3,078), $17,647, $(17,140), and $(4,979),
respectively.
(b) Reflects three-for-two stock split effective April 1, 1997.
Prior periods have been restated to reflect poolings-of-interests.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
1997 1996
NONPERFORMING ASSETS Mar 31 Dec 31 Sept 30
Nonaccrual loans $ 18,270 $ 19,404 $ 22,471
Renegotiated loans 2,204 2,517 2,546
Other real estate, net 8,202 7,487 6,301
Total nonperforming assets $ 28,676 $ 29,408 $ 31,318
Loans ninety days or more
past due $ 6,776 $ 8,670 $ 6,235
Other repossessed assets $ 1,199 $ 846 $ 484
Total nonperforming assets as
a percentage of loans and ORE 0.36 % 0.38 % 0.42 %
1996
NONPERFORMING ASSETS June 30 Mar 31
Nonaccrual loans $ 20,023 $ 23,062
Renegotiated loans 861 894
Other real estate, net 10,190 9,917
Total nonperforming assets $ 31,074 $ 33,873
Loans ninety days or more
past due $ 5,165 $ 4,894
Other repossessed assets $ 434 $ 443
Total nonperforming assets as
a percentage of loans and ORE 0.43 % 0.50 %
1997 1996
1st Qtr 4th Qtr 3rd Qtr
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $120,655 $120,167 $118,102
Loans charged off 6,767 6,499 6,080
Loan recoveries 1,561 1,419 1,493
Net charge-offs 5,206 5,080 4,587
Acquisitions/(divestitures) - 200 2,056
Provision for loan losses 5,324 5,368 4,596
Balance at end of period $120,773 $120,655 $120,167
Allowance for loan losses as
a percentage of total loans 1.52 % 1.57 % 1.60 %
Allowance for loan losses as
a percentage of nonperforming
assets 421.16 % 410.28 % 383.70 %
Annualized net charge-offs as
a percentage of average total
loans - QTD 0.27 % 0.27 % 0.25 %
Annualized net charge-offs as
a percentage of average total
loans - YTD 0.27 % 0.26 % 0.25 %
1996
2nd Qtr 1st Qtr
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $112,999 $113,061
Loans charged off 6,708 4,661
Loan recoveries 1,562 1,122
Net charge-offs 5,146 3,539
Acquisitions/(divestitures) 5,024 (107)
Provision for loan losses 5,225 3,584
Balance at end of period $118,102 $112,999
Allowance for loan losses as
a percentage of total loans 1.65 % 1.66 %
Allowance for loan losses as
a percentage of nonperforming
assets 380.07 % 333.60 %
Annualized net charge-offs as
a percentage of average total
loans - QTD 0.29 % 0.21 %
Annualized net charge-offs as
a percentage of average total
loans - YTD 0.25 % 0.21 %
Prior periods have been restated to reflect poolings-of-interests.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months
Ended March 31
1997
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
Assets
Earning assets:
Loans, net of unearned income $ 7,705,901 $ 167,063 8.79 %
Loans available for sale 12,830 205 6.47
Investment securities:
Taxable 1,083,875 19,588 7.33
Tax-exempt 90,342 1,946 8.74
---------- ---------
1,174,217 21,534 7.44
Investment securities available
for sale 1,969,247 32,014 6.59
Other earning assets 161,051 2,443 6.15
Total earning assets 11,023,246 223,259 8.21
Allowance for loan losses (120,723)
Unrealized gain (loss) on
securities available for sale (3,078)
Cash and other assets 972,609
----------
$11,872,054
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 447,362 2,727 2.47
Savings deposits 3,606,346 32,009 3.60
Time deposits 2,644,539 36,261 5.56
Certificates of deposit of
$100,000 or more 896,728 12,665 5.73
Federal funds purchased and
securities sold under agreement
to repurchase 768,249 9,815 5.18
Other short-term borrowings 162,966 2,172 5.40
FHLB and other borrowings 801,607 13,077 6.62
Total interest bearing liabilities 9,327,797 108,726 4.73
Net interest spread 114,533 3.48 %
Noninterest bearing demand deposits 1,614,406
Accrued expenses and other liabilities 88,959
Shareholders' equity 840,892
----------
$11,872,054
Net yield on earning assets 4.21 %
Taxable equivalent adjustment:
Loans 203
Investment securities 715
Investment securities available
for sale 45
Other earning assets 22
Total taxable equivalent adjustment 985
Net interest income $ 113,548
Three Months
Ended March 31
1996
YIELD/RATE ANALYSIS Average Income/ Yield
(Taxable Equivalent Basis) Balance Expense Rate
Assets
Earning assets:
Loans, net of unearned income $ 6,740,125 $148,761 8.88 %
Loans available for sale 17,496 280 6.44
Investment securities:
Taxable 632,607 11,465 7.29
Tax-exempt 78,857 1,870 9.54
---------- ---------
711,464 13,335 7.54
Investment securities available
for sale 2,172,314 36,604 6.78
Other earning assets 234,393 3,698 6.35
Total earning assets 9,875,792 202,678 8.25
Allowance for loan losses (112,023)
Unrealized gain (loss) on
securities available for sale 17,647
Cash and other assets 859,721
----------
$10,641,137
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 939,798 5,911 2.53
Savings deposits 2,428,671 24,340 4.03
Time deposits 2,549,323 36,637 5.78
Certificates of deposit of
$100,000 or more 861,911 12,580 5.87
Federal funds purchased and
securities sold under agreement
to repurchase 831,364 10,633 5.14
Other short-term borrowings 120,221 1,513 5.06
FHLB and other borrowings 614,929 10,314 6.75
Total interest bearing liabilities 8,346,217 101,928 4.91
Net interest spread 100,750 3.34 %
Noninterest bearing demand deposits 1,447,764
Accrued expenses and other liabilities 75,223
Shareholders' equity 771,933
----------
$10,641,137
Net yield on earning assets 4.10 %
Taxable equivalent adjustment:
Loans 217
Investment securities 714
Investment securities available
for sale 42
Other earning assets 15
Total taxable equivalent adjustment 988
Net interest income $ 99,762
Prior periods have been restated to reflect poolings-of-interests.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months
Ended March 31 %
1997 1996 Change
NONINTEREST INCOME
Service charges on deposit accounts $ 17,038 $ 14,536 17
Trust fees 3,844 4,400 (13)
Trading account profits
and commissions 4,227 4,127 2
Investment securities gains
(losses), net (79) 6,688 (101)
Retail investment sales 4,045 3,103 30
Other income 11,046 11,401 (3)
Total $ 40,121 $ 44,255 (9)
NONINTEREST EXPENSE
Salaries and benefits $ 51,249 $ 43,219 19
Net occupancy expense 7,269 6,399 14
Equipment expense 6,255 5,865 7
FDIC insurance 267 722 (63)
Amortization of intangibles 2,692 1,396 93
Other expense 23,966 22,911 5
Total $ 91,698 $ 80,512 14
Prior periods have been restated to reflect poolings-of-interests.
CONTACT: Compass Bancshares, Inc., Birmingham Terrell Terrell (tĕr`əl), city (1990 pop. 12,490), Kaufman co., N Tex.; inc. 1883. In a farm area, cattle and horses are raised and there are nurseries; peaches, cotton, and wheat are grown. Graves Graves A region of southwest France in the Garonne River valley. The area is known for its fine table wines. Noun 1. Graves - English writer known for his interest in mythology and in the classics (1895-1985) , Investor Relations Investor relations The process by which the corporation communicates with its investors. , 205/933-3331 Ellen El·len , Mount A peak, 3,514.2 m (11,522 ft) high, of southern Utah. Laden, Media & Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most , 205/933-3554 |
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