Compass Reports Record Earnings for 1999 and Fourth Quarter.Business Editors BIRMINGHAM Birmingham, cities, United States Birmingham (bûr`mĭnghăm') 1 City (1990 pop. 265,968), seat of Jefferson co., N central Ala., in the Jones Valley near the southern end of the Appalachian system; founded and inc. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Jan. 18, 2000 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) ) -- Net income of $217 million marks 12th consecutive year of record earnings -- Record EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $1.88, up 20% from the prior year -- Strong internal loan growth, up 19% from year ago -- Robust deposit growth, up 11% from prior year levels Compass Bancshares, Inc. (Nasdaq:CBSS) today reported record net income and net income per share for both the full year and fourth quarter of 1999. Net income for 1999 increased 20 percent to $217 million compared to $180.9 million in 1998. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for 1999 increased 20 percent to $1.88 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 full year 1999 were 1.24 percent and 18.13 percent, respectively. On a cash basis, Compass' return on average assets was 1.32 percent and return on average shareholders' equity was 19.20 percent. Net income for the fourth quarter of 1999 was $55.3 million, a 41 percent increase over the $39.4 million earned during the fourth quarter of 1998. For the same time period, diluted earnings per share increased 41 percent to $0.48 compared to $0.34 in the prior year. Return on average assets and return on average shareholders' equity for the fourth quarter of 1999 were 1.22 percent and 18.15 percent, respectively. On a cash basis, Compass' return on average assets was 1.33 percent and return on average shareholders' equity was 19.54 percent. Included in prior year results are merger and integration expenses related to Compass' acquisition of 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). Bank in the fourth quarter of 1998. Adjusted for the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impact of these expenses, the increase in net income for the full year 1999 and fourth quarter of 1999 was 14 percent and 17 percent, respectively. Similarly, net income per share for 1999 and the fourth quarter of 1999 increased 14 percent and 17 percent, respectively. D. Paul Jones Paul Jones can refer to:
Region, south and southwestern U.S. It is characterized by a warm climate, rapid population growth since 1970, and relatively conservative voting patterns. Comprising 15 states, it extends from Virginia and Florida in the southeast through Nevada in the southwest, franchise is well-positioned in markets that are among the fastest growing in the nation. Our ability to deliver innovative products and services by dedicated employees into these dynamic markets has been the key to our success." Jones added, "Compass' record financial performance was driven by balanced double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth as both net interest income and noninterest income posted solid gains. Net interest income increased 11 percent over year ago levels and noninterest income, excluding securities gains and a securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. gain in 1998, increased 12 percent from the prior year. Strong revenue growth, coupled with expense management and leveraging of technology investments, improved our cash basis efficiency ratio to 56.26 for the year." "At the same time, we continued to experience healthy loan growth throughout all our lines of business as average loans, adjusted for the impact of purchase acquisitions and securitizations, rose 19 percent from a year ago. Equally important, the strength of our Sunbelt markets enabled us to fund loan demand through strong deposit generation as reflected by the 11 percent increase in average deposits," Jones stated. "Although 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. increased from the prior year, primarily as a result of one large credit, the overall quality of our loan portfolio is strong. Net charge-offs as a percent of average loans were 0.28 percent for 1999 compared to 0.35 percent in the prior year," Jones said. Average total assets for 1999 increased 14 percent to $17.6 billion from $15.4 billion for 1998. Average deposits for 1999 increased 11 percent over year ago levels to $12.5 billion, fueled by a 14 percent increase in average transaction accounts. Compass' strategic geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. expansion into attractive high-growth markets in Sunbelt states continued in 1999. During the year, Compass completed two acquisitions and at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. had two pending transactions, one of which was completed earlier this month. In Arizona, Compass expanded its presence with the purchase of 15 full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. banking offices from Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Bank, N.A. Nine of these offices were located in Phoenix, the nation's fastest growing city. In Texas, Compass complemented its existing presence in the rapidly growing 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 market through the acquisition of Hartland Hartland is the name of several places in the world: Canada
In the fourth quarter, Compass announced plans to enter Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. with the signing of a definitive agreement to acquire Denver-based MegaBank Financial Corporation with $300 million in assets. Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , 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. The transaction, pending shareholder and 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. approval, is expected to close in the second quarter of 2000. Shortly after the end of the year, Compass entered 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). with its completion of the acquisition of Western Bancshares, Inc., the largest locally-owned bank in Albuquerque Albuquerque (ăl`bəkûr'kē), city (1990 pop. 384,736), seat of Bernalillo co., W central N.Mex., on the upper Rio Grande; inc. 1890. with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $305 million in assets. Including the pending acquisition, Compass will operate 316 bank offices including 122 in Texas, 88 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). , 47 in Arizona, 41 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 , nine in New Mexico and nine in Colorado. "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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the Company's Annual Report or Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the most recently ended fiscal year.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months
Ended December 31 %
-------------------
1999 1998 Change
-------- -------- ------
EARNINGS SUMMARY
Net interest income $164,579 $150,844 9
Noninterest income 66,425 56,326 18
-------- --------
Total revenue 231,004 207,170 12
Provision for loan losses 8,314 13,318 (38)
Noninterest expense 137,499 135,027 2
-------- --------
Pretax income 85,191 58,825 45
Income tax expense 29,862 19,471 53
-------- --------
Net income $ 55,329 $ 39,354 41
======== ========
Net income available to
common shareholders $ 55,102 $ 38,659 43
======== ========
Basic earnings per share $ 0.49 $ 0.34 44
Diluted earnings per share 0.48 0.34 41
Basic earnings per share - cash
basis 0.52 0.36 44
Diluted earnings per share -
cash basis 0.52 0.36 44
Basic weighted average
shares outstanding 113,427 112,796 1
Diluted weighted average
shares outstanding 114,427 113,786 1
Year
Ended December 31 %
-------------------
1999 1998 Change
-------- -------- ------
EARNINGS SUMMARY
Net interest income $639,168 $576,924 11
Noninterest income 241,109 222,500 8
-------- --------
Total revenue 880,277 799,424 10
Provision for loan losses 31,122 38,445 (19)
Noninterest expense 517,916 488,554 6
-------- --------
Pretax income 331,239 272,425 22
Income tax expense 114,194 91,545 25
-------- --------
Net income $217,045 $180,880 20
======== ========
Net income available to
common shareholders $214,926 $178,098 21
======== ========
Basic earnings per share $ 1.90 $ 1.60 19
Diluted earnings per share 1.88 1.57 20
Basic earnings per share - cash
basis 2.01 1.68 20
Diluted earnings per share -
cash basis 1.99 1.64 21
Basic weighted average
shares outstanding 113,342 111,295 2
Diluted weighted average
shares outstanding 114,441 113,746 1
Three Months
Ended December 31
-------------------
1999 1998
-------- --------
SELECTED RATIOS
Average common equity to
average assets 6.67 % 7.03 %
Average loans to average
total deposits 82.72 85.20
Return on average assets 1.22 0.95
Return on average common
equity 18.16 13.21
Return on average equity 18.15 13.12
Efficiency ratio (b) 58.88 58.04
Cash basis ratios:
Return on average assets 1.33 1.01
Return on average equity 19.54 13.85
Return on average tangible equity 24.01 15.32
Efficiency ratio (b) 56.57 56.74
Book value per common share $ 10.52 $ 10.30
Year
Ended December 31
-------------------
1999 1998
-------- --------
SELECTED RATIOS
Average common equity to
average assets 6.75 % 7.16 %
Average loans to average
total deposits 81.98 86.40
Return on average assets 1.24 1.17
Return on average common
equity 18.14 16.12
Return on average equity 18.13 15.93
Efficiency ratio (b) 58.09 60.18
Cash basis ratios:
Return on average assets 1.32 1.24
Return on average equity 19.20 16.70
Return on average tangible equity 22.39 18.63
Efficiency ratio (b) 56.26 57.05
Book value per common share $ 10.52 $ 10.30
Average for
Three Months Ended
December 31
------------------------- %
BALANCE SHEET HIGHLIGHTS 1999 1998 Change
----------- ----------
Total loans $10,614,722 $9,804,912 8
Total loans - managed 12,031,097 10,577,039 14
Total investment
securities 5,853,566(a) 5,242,631(a) 12
Earning assets 16,583,198(a) 15,188,337(a) 9
Total assets 18,055,075 16,505,424 9
Noninterest bearing
deposits 2,620,282 2,369,920 11
Interest bearing
transaction accounts 5,933,782 5,269,993 13
Total transaction
accounts 8,554,064 7,639,913 12
Total deposits 12,832,251 11,507,964 12
Shareholders' equity 1,209,474 1,189,866 2
Average for
Year
Ended December 31 %
-------------------------
BALANCE SHEET HIGHLIGHTS 1999 1998 Change
----------- ----------
Total loans $10,260,481 $9,716,640 6
Total loans - managed 11,447,369 10,042,580 14
Total investment
securities 5,791,375(a) 4,235,812(a) 37
Earning assets 16,176,842(a) 14,138,448(a) 14
Total assets 17,565,011 15,423,162 14
Noninterest bearing
deposits 2,522,597 2,263,473 11
Interest bearing
transaction accounts 5,853,951 5,086,558 15
Total transaction
accounts 8,376,548 7,350,031 14
Total deposits 12,516,585 11,246,435 11
Shareholders' equity 1,196,988 1,135,556 5
Ending
Balance
December 31 %
-------------------------
BALANCE SHEET HIGHLIGHTS 1999 1998 Change
----------- ----------
Total loans $10,788,931 $10,106,003 7
Total loans - managed 12,142,376 10,825,255 12
Total investment
securities 5,694,151(a) 5,541,800(a) 3
Earning assets 16,616,936(a) 15,803,270(a) 5
Total assets 18,150,752 17,288,908 5
Noninterest bearing
deposits 2,655,732 2,551,958 4
Interest bearing
transaction accounts 5,898,828 5,407,954 9
Total transaction
accounts 8,554,560 7,959,912 7
Total deposits 12,808,918 12,013,446 7
Shareholders' equity 1,196,204 1,196,141 -
(a) Includes adjustment for market valuation on available-for-sale
securities.
(b) Excludes merger and integration charges.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months Ended
-----------------------------
1999
-----------------------------
Dec 31 Sep 30 Jun 30
-------- -------- --------
EARNINGS SUMMARY
Net interest income $164,579 $162,746 $158,424
Noninterest income 66,425 59,120 58,284
-------- -------- --------
Total revenue 231,004 221,866 216,708
Provision for loan losses 8,314 7,984 8,389
Noninterest expense 137,499 130,843 126,154
-------- -------- --------
Pretax income 85,191 83,039 82,165
Income tax expense 29,862 28,018 28,469
-------- -------- --------
Net income $ 55,329 $ 55,021 $ 53,696
======== ======== ========
Net income available to
common shareholders $ 55,102 $ 54,681 $ 53,357
======== ======== ========
Basic earnings per share $ 0.49 $ 0.48 $ 0.47
Diluted earnings per share 0.48 0.48 0.47
Basic earnings per share -
cash basis 0.52 0.52 0.49
Diluted earnings per share -
cash basis 0.52 0.51 0.49
Basic weighted average
shares outstanding 113,427 113,388 113,309
Diluted weighted average
shares outstanding 114,427 114,586 114,583
Three Months Ended
------------------
1999 1998
-------- --------
Mar 31 Dec 31
-------- --------
EARNINGS SUMMARY
Net interest income $153,419 $150,844
Noninterest income 57,280 56,326
-------- --------
Total revenue 210,699 207,170
Provision for loan losses 6,435 13,318
Noninterest expense 123,420 135,027
-------- --------
Pretax income 80,844 58,825
Income tax expense 27,845 19,471
-------- --------
Net income $ 52,999 $ 39,354
======== ========
Net income available to
common shareholders $ 51,786 $ 38,659
======== ========
Basic earnings per share $ 0.46 $ 0.34
Diluted earnings per share 0.45 0.34
Basic earnings per share -
cash basis 0.48 0.36
Diluted earnings per share -
cash basis 0.47 0.36
Basic weighted average
shares outstanding 113,229 112,796
Diluted weighted average
shares outstanding 114,173 113,786
Three Months Ended
-----------------------------
1999
-----------------------------
Dec 31 Sep 30 Jun 30
-------- -------- --------
SELECTED RATIOS
Average common equity to
average assets 6.67% 6.64% 6.80%
Average loans to average
total deposits 82.72 81.24 81.96
Return on average assets 1.22 1.24 1.23
Return on average common
equity 18.16 18.49 17.96
Return on average equity 18.15 18.42 17.90
Efficiency ratio (b) 58.88 58.05 57.18
Cash basis ratios:
Return on average assets 1.33 1.33 1.31
Return on average equity 19.54 19.58 18.90
Return on average
tangible equity 24.01 23.01 21.96
Efficiency ratio (b) 56.57 56.09 55.44
Book value per common share $ 10.52 $ 10.48 $ 10.28
Three Months Ended
------------------
1999 1998
-------- --------
Mar 31 Dec 31
-------- --------
SELECTED RATIOS
Average common equity to
average assets 6.89% 7.03%
Average loans to average
total deposits 81.98 85.20
Return on average assets 1.27 0.95
Return on average common
equity 17.95 13.21
Return on average equity 18.06 13.12
Efficiency ratio (b) 58.19 58.04
Cash basis ratios:
Return on average assets 1.33 1.01
Return on average equity 18.79 13.85
Return on average
tangible equity 20.72 15.32
Efficiency ratio (b) 56.95 56.74
Book value per common share $ 10.47 $ 10.30
(b) Excludes merger and integration charges.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
1999
-----------------------------
Dec 31 Sep 30 Jun 30
-------- -------- --------
NONPERFORMING ASSETS
Nonaccrual loans $ 74,358 $ 49,836 $ 55,371
Renegotiated loans 239 297 518
Other real estate, net 7,099 5,997 6,454
-------- -------- --------
Total nonperforming assets $ 81,696 $ 56,130 $ 62,343
======== ======== ========
Loans ninety days or more
past due $ 13,177 $ 11,956 $ 10,634
Other repossessed assets $ 1,664 $ 1,342 $ 1,242
Total nonperforming assets as
a percentage of loans and
ORE 0.76% 0.55% 0.60%
1999 1998
-------- --------
Mar 31 Dec 31
-------- --------
NONPERFORMING ASSETS
Nonaccrual loans $ 48,246 $ 48,250
Renegotiated loans 523 665
Other real estate, net 7,304 6,657
-------- --------
Total nonperforming assets $ 56,073 $ 55,572
======== ========
Loans ninety days or more
past due $ 10,171 $ 8,699
Other repossessed assets $ 1,170 $ 1,779
Total nonperforming assets as
a percentage of loans and
ORE 0.57% 0.55%
Three Months Ended
-----------------------------
1999
-----------------------------
Dec 31 Sep 30 Jun 30
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $139,878 $139,728 $136,826
Loans charged off 10,215 11,091 9,049
Loan recoveries 2,618 3,257 2,266
-------- -------- --------
Net charge-offs 7,597 7,834 6,783
Allowance for loans acquired
(sold) 2,487 - 1,296
Provision for loan losses 8,314 7,984 8,389
-------- -------- --------
Balance at end of period $143,082 $139,878 $139,728
======== ======== ========
Allowance for loan losses as
a percentage of total loans 1.33% 1.36% 1.34%
Allowance for loan losses as
a percentage of nonperforming
assets 175.14% 249.20% 224.13%
Annualized net charge-offs as
a percentage of average total
loans - QTD 0.28% 0.30% 0.27%
Annualized net charge-offs as
a percentage of average total
loans - YTD 0.28% 0.28% 0.26%
Three Months Ended
------------------
1999 1998
-------- --------
Mar 31 Dec 31
-------- --------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $136,677 $132,220
Loans charged off 9,096 11,333
Loan recoveries 2,810 2,472
-------- --------
Net charge-offs 6,286 8,861
Allowance for loans acquired
(sold) - -
Provision for loan losses 6,435 13,318
-------- --------
Balance at end of period $136,826 $136,677
======== ========
Allowance for loan losses as
a percentage of total loans 1.40% 1.35%
Allowance for loan losses as
a percentage of nonperforming
assets 244.01% 245.95%
Annualized net charge-offs as
a percentage of average total
loans - QTD 0.26% 0.36%
Annualized net charge-offs as
a percentage of average total
loans - YTD 0.26% 0.35%
Year
Ended December 31
------------------
1999 1998
-------- --------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $136,677 $135,225
Loans charged off 39,451 42,852
Loan recoveries 10,951 9,071
-------- --------
Net charge-offs 28,500 33,781
Allowance for loans acquired
(sold) 3,783 (3,212)
Provision for loan losses 31,122 38,445
-------- --------
Balance at end of period $143,082 $136,677
======== ========
Allowance for loan losses as
a percentage of total loans 1.33% 1.35%
Allowance for loan losses as
a percentage of nonperforming
assets 175.14% 245.95%
Annualized net charge-offs as
a percentage of average total
loans - QTD NA NA
Annualized net charge-offs as
a percentage of average total
loans - YTD 0.28% 0.35 %
NA Not Applicable
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months Ended December 31
-----------------------------
1999
-----------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
Assets
Earning assets:
Loans $10,614,722 $229,346 8.57 %
Investment securities 1,521,897 26,267 6.85
Investment securities available
for sale 4,444,403 71,666 6.40
Other earning assets 114,910 1,697 5.86
----------- --------
Total earning assets 16,695,932 328,976 7.82
Allowance for loan losses (141,964)
Unrealized gain (loss) on
securities available for sale (112,734)
Cash and other assets 1,613,841
-----------
$18,055,075
===========
Liabilities and Shareholders'
Equity
Interest bearing liabilities:
Interest bearing demand
deposits $ 174,598 746 1.70
Savings deposits 5,759,184 50,781 3.50
Time deposits 2,723,832 36,292 5.29
Certificates of deposit of
$100,000 or more 1,554,355 21,524 5.49
Federal funds purchased and
securities sold under
agreement to repurchase 1,157,793 15,094 5.17
Other short-term borrowings
215,670 2,974 5.47
FHLB and other borrowings 2,497,675 35,823 5.69
----------- --------
Total interest bearing
liabilities 14,083,107 163,234 4.60
-------- ------
Net interest spread 165,742 3.22 %
======
Noninterest bearing demand
deposits 2,620,282
Accrued expenses and other
liabilities 142,212
Shareholders' equity
1,209,474
-----------
$18,055,075
===========
Net yield on earning assets 3.94 %
======
Taxable equivalent adjustment:
Loans 73
Investment securities 509
Investment securities available
for sale 563
Other earning assets 18
--------
Total taxable equivalent
adjustment 1,163
--------
Net interest income
$164,579
========
Three Months Ended December 31
-----------------------------
1998
-----------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
Assets
Earning assets:
Loans $ 9,804,912 $207,536 8.40 %
Investment securities 1,973,478 33,976 6.83
Investment securities available
for sale 3,246,534 53,350 6.52
Other earning assets 140,794 1,949 5.49
----------- --------
Total earning assets 15,165,718 296,811 7.76
Allowance for loan losses (132,425)
Unrealized gain (loss) on
securities available for sale 22,619
Cash and other assets 1,449,512
-----------
$16,505,424
===========
Liabilities and Shareholders'
Equity
Interest bearing liabilities:
Interest bearing demand
deposits $ 300,915 1,321 1.74
Savings deposits 4,969,078 43,818 3.50
Time deposits 2,609,920 35,096 5.34
Certificates of deposit of
$100,000 or more 1,258,131 17,396 5.49
Federal funds purchased and
securities sold under
agreement to repurchase 1,645,322 20,060 4.84
Other short-term borrowings 168,463 2,137 5.03
FHLB and other borrowings 1,831,870 25,157 5.45
----------- --------
Total interest bearing
liabilities 12,783,699 144,985 4.50
-------- ------
Net interest spread 151,826 3.26 %
======
Noninterest bearing demand
deposits 2,369,920
Accrued expenses and other
liabilities 161,939
Shareholders' equity 1,189,866
-----------
$16,505,424
===========
Net yield on earning assets 3.97 %
======
Taxable equivalent adjustment:
Loans 143
Investment securities 617
Investment securities available
for sale 207
Other earning assets 15
--------
Total taxable equivalent
adjustment 982
--------
Net interest income $150,844
========
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Year Ended December 31, 1999
--------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
--------------------------------
Assets
Earning assets:
Loans $10,260,481 $859,043 8.37 %
Investment securities 1,651,038 113,534 6.88
Investment securities
available for sale 4,195,056 272,542 6.50
Other earning assets 124,986 7,158 5.73
---------- ----------
Total earning assets 16,231,561 1,252,277 7.72
Allowance for loan losses (139,127)
Unrealized gain (loss) on
securities available for sale (54,719)
Cash and other assets 1,527,296
----------
$17,565,011
==========
Liabilities and Shareholders'
Equity
Interest bearing liabilities:
Interest bearing demand $ 245,597 3,765 1.53
deposits
Savings deposits 5,608,354 193,574 3.45
Time deposits 2,628,871 136,923 5.21
Certificates of deposit of
$100,000 or more 1,511,166 80,532 5.33
Federal funds purchased and
securities sold under
agreement to repurchase 1,314,161 63,560 4.84
Other short-term borrowings 177,127 8,887 5.02
FHLB and other borrowings 2,214,843 121,162 5.47
---------- ----------
Total interest bearing 13,700,119 608,403 4.44
liabilities ---------- ----
Net interest spread 643,874 3.28 %
====
Noninterest bearing demand
deposits 2,522,597
Accrued expenses and other
liabilities 145,307
Shareholders' equity
1,196,988
----------
$17,565,011
==========
Net yield on earning assets 3.97 %
====
Taxable equivalent adjustment:
Loans 385
Investment securities 2,192
Investment securities
available for sale 2,057
Other earning assets 72
----------
Total taxable equivalent
adjustment 4,706
----------
Net interest income $639,168
==========
Year Ended December 31, 1998
---------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
---------------------------------
Assets
Earning assets:
Loans $ 9,716,640 $841,827 8.66 %
Investment securities 1,387,218 97,977 7.06
Investment securities available
for sale 2,836,701 185,563 6.54
Other earning assets 185,996 10,837 5.83
---------- ----------
Total earning assets 14,126,555 1,136,204 8.04
Allowance for loan losses (133,677)
Unrealized gain (loss) on
securities available for sale 11,893
Cash and other assets 1,418,391
----------
$15,423,162
==========
Liabilities and Shareholders'
Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 551,944 12,608 2.28
Savings deposits 4,534,614 165,981 3.66
Time deposits 2,738,738 152,404 5.56
Certificates of deposit of
$100,000 or more 1,157,666 65,714 5.68
Federal funds purchased and
securities sold under agreement
to repurchase 1,195,772 62,161 5.20
Other short-term borrowings 170,468 9,113 5.35
FHLB and other borrowings 1,534,761 87,176 5.68
---------- ----------
Total interest bearing
liabilities 11,883,963 555,157 4.67
---------- ----
Net interest spread 581,047 3.37 %
====
Noninterest bearing demand
deposits 2,263,473
Accrued expenses and other
liabilities 140,170
Shareholders' equity 1,135,556
----------
$15,423,162
==========
Net yield on earning assets 4.11 %
====
Taxable equivalent adjustment:
Loans 508
Investment securities 2,662
Investment securities available
for sale 868
Other earning assets 85
----------
Total taxable equivalent
adjustment 4,123
----------
Net interest income $576,924
==========
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Year
Ended December 31 %
------------------
1999 1998 Change
-------- -------- --------
NONINTEREST INCOME
Service charges on deposit
accounts $101,684 $ 87,819 16
Asset management fees 18,586 16,769 11
Credit card service
charges and fees 19,528 14,583 34
Retail investment sales 21,076 19,130 10
Trading account profits
and commissions 9,756 14,685 (34)
Investment securities
gains, net 2,103 4,255 (51)
Gain on sale of
securitized loans - 4,264 NM
Other income 68,376 60,995 12
-------- --------
Total $241,109 $222,500 8
======== ========
NONINTEREST EXPENSE
Salaries and benefits $267,443 $249,778 7
Net occupancy expense 39,030 35,622 10
Equipment expense 43,384 38,175 14
Professional services 38,330 36,219 6
Amortization of
intangibles 16,111 10,813 49
Merger and integration
expenses 5,083 21,738 (77)
Other expense 108,535 96,209 13
-------- --------
Total $517,916 $488,554 6
======== ========
Three Months Ended
-----------------------------
1999
-----------------------------
Dec 31 Sep 30 Jun 30
-------- -------- --------
NONINTEREST INCOME
Service charges on deposit
accounts $ 27,699 $ 26,662 $ 25,372
Asset management fees 4,766 4,480 4,645
Credit card service
charges and fees 6,055 4,960 4,617
Retail investment sales 4,397 5,674 5,818
Trading account profits
and commissions 1,702 2,157 2,287
Investment securities
gains, net 5 - 35
Gain on sale of
securitized loans - - -
Other income
21,801 15,187 15,510
-------- -------- --------
Total $ 66,425 $ 59,120 $ 58,284
======== ======== ========
NONINTEREST EXPENSE
Salaries and benefits $ 70,033 $ 67,585 $ 63,084
Net occupancy expense 10,231 9,989 9,356
Equipment expense 12,041 10,783 10,537
Professional services 10,520 9,496 10,186
Amortization of intangibles 5,360 4,370 3,780
Merger and integration
expenses 811 1,342 1,548
Other expense 28,503 27,278 27,663
-------- -------- --------
Total $137,499 $130,843 $126,154
======== ======== ========
Three Months Ended
------------------
1999 1998
-------- --------
Mar 31 Dec 31
-------- --------
NONINTEREST INCOME
Service charges on deposit
accounts $ 21,951 $ 23,131
Asset management fees 4,695 4,513
Credit card service charges
and fees 3,896 3,956
Retail investment sales 5,187 4,427
Trading account profits
and commissions 3,610 4,315
Investment securities
gains, net 2,063 21
Gain on sale of
securitized loans - -
Other income 15,878 15,963
-------- --------
Total $ 57,280 $ 56,326
======== ========
NONINTEREST EXPENSE
Salaries and benefits $ 66,741 $ 64,625
Net occupancy expense 9,454 8,936
Equipment expense 10,023 10,142
Professional services 8,128 9,474
Amortization of intangibles 2,601 2,696
Merger and integration
expenses 1,382 14,236
Other expense 25,091 24,918
-------- --------
Total $123,420 $135,027
======== ========
NM Not meaningful
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