Compass Completes Acquisition of Denver-based Megabank Financial Corporation; Marks Entry Into Nation's Seventh Fastest-Growing State and Fourth Western Expansion Market.Business Editors BIRMINGHAM, Ala.--(BUSINESS WIRE)--April 5, 2000 Sunbelt-based 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) ) today announced it completed the acquisition of MegaBank Financial Corporation (Nasdaq:MBFC MBFC Marina Bay Financial Centre (Singapore) ) in Denver with more than $300 million in assets and nine well-located full-service banking offices. In addition, Empire Title & Escrow Corporation, a subsidiary of MegaBank, operates six offices in the Denver area and Fort Collins. Under terms of the definitive agreement, Compass will exchange approximately 3,600,000 shares of its common stock for all of the outstanding common stock of MegaBank and related companies. With successful operations firmly established in Texas and Arizona, and Compass' entry into 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). earlier this year, the acquisition marks Compass' strategic move into the nation's seventh fastest-growing state and fourth Western expansion market. Denver, with a population of more than two million, is growing at twice the national average while Colorado is projected by the U.S. Census Bureau Noun 1. Census Bureau - the bureau of the Commerce Department responsible for taking the census; provides demographic information and analyses about the population of the United States Bureau of the Census to be among the seven fastest-growing states over the next five years. Its diverse economy is based on biomedical research, computer hardware, telecommunications software and communications hardware. Denver is headquarters to four Fortune 500 companies and four major mutual fund companies and boasts the highest percentage of high school and college graduates. Forbes magazine recently named the Denver metropolitan area seventh in the nation in creation of new jobs, population and economic output. Three of Compass' other Western expansion markets -- Austin, Dallas and Houston -- were among the top ten. "Compass enters Denver with the acquisition of a high-performing, well-managed bank strategically located adjacent to our key markets in the Southwest," D. Paul Jones, Jr., chairman and chief executive officer said today. "In addition, MegaBank has been one of the most profitable banks of its size with returns on average assets and equity over the last five years averaging 2.14 percent and 26.68 percent, respectively," Jones said. "We are pleased to welcome MegaBank, its customers, employees and shareholders to the Compass family." MegaBank Chairman Thomas R. Kowalski added, "We are impressed with Compass' strategy. Compass is operating in some of the best markets in the nation. By uniting with Compass, we have the opportunity to better serve our customers through a broader array of financial products and services. We are delighted to be joining an outstanding organization that shares our philosophy of personal customer service." Compass Bancshares Inc. is an $18.2 billion Sunbelt-based financial services company which operates 319 full-service banking offices in Alabama, Arizona, Colorado, Florida, New Mexico and Texas. Compass is among the top 40 U.S. bank holding companies by asset size and ranks among the top earners of its size based on return on equity. The company's earnings per share have increased for 12 consecutive years and dividends per share Dividends per share Dividend paid for the past 12 months divided by the number of common shares outstanding, as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term. have increased for 19 consecutive years. Shares of Compass' common stock are traded through the Nasdaq stock market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol CBSS. "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 Statements in this press release regarding Compass Bancshares Inc.'s business which are not historical facts are "forward-looking statements" 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion