Compass Reports Record Earnings for 2001 and Fourth Quarter; Marks 14th Consecutive Year of Record Earnings and Earnings Per Share.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. 16, 2002 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 reaches all-time high of $270.4 million; record EPS of $2.11 up 16% -- Quarterly EPS reaches record $0.56, up 30% from prior year levels -- Total revenue increases 19%; noninterest income up 30% from year ago -- Cash basis efficiency ratio improves to record 52.57%; fourth consecutive quarter of improvement -- Noninterest bearing deposits increase 12% from prior year levels -- Strong internal loan growth continues, managed loans up 11% from year ago Compass Bancshares, Inc. (Nasdaq:CBSS) today reported record earnings and earnings per share for both the full year and fourth quarter of 2001. Earnings for 2001 were $270.4 million, a 17 percent increase over 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 $230.8 million in 2000. Earnings per share increased 16 percent to $2.11 from operating earnings per share of $1.82 in the prior year. Operating results exclude a gain on sale of non-strategic branches in 2000. 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 2001 were 1.23 percent and 16.32 percent, respectively. On a cash basis, return on average assets and return on average shareholders' equity for the full-year 2001 were 1.34 percent and 17.55 percent, respectively. Earnings for the fourth quarter of 2001 were $72.2 million, a 33 percent increase over the $54.4 million earned during the fourth quarter of 2000. For the same time period, earnings per share increased 30 percent to $0.56 compared to $0.43 in the prior year. On a cash basis, return on average assets and return on average shareholders' equity for the fourth quarter of 2001 were 1.36 percent and 17.32 percent, respectively. D. Paul Jones Paul Jones can refer to:
tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: the value of our newer markets in Sunbelt Sunbelt 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, states, we are cautiously cau·tious adj. 1. Showing or practicing caution; careful. 2. Tentative or restrained; guarded: felt a cautious optimism that the offer would be accepted. optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that 2002 will be another successful year." Jones added, "Compass' record financial performance was fueled by a 19 percent increase in revenue as both net interest income and noninterest income posted double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. gains. Net interest income increased 15 percent from year ago levels as continued growth in loans and noninterest bearing deposits, as well as a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rate environment, expanded our net interest margin to 4.15 percent compared to 3.95 percent in 2000. At the same time, all of our major fee-based businesses generated solid results as noninterest income, excluding a gain on the sale of non-strategic branches in the prior year, increased 30 percent. Our ability to continue to grow top-line revenue, coupled with tighter expense management, resulted in improved 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. throughout the year. During the fourth quarter, our cash basis efficiency ratio improved for the fourth consecutive quarter to a record 52.57 percent." "In addition, Compass continued to experience solid balance sheet growth. Through growth in our markets, managed loans increased 11 percent over prior year levels. Equally important was our ability to continue to grow low-cost deposits. Transaction accounts increased 10 percent over prior year levels, primarily as a result of a 12 percent increase in noninterest bearing deposits. We continue to focus on growing noninterest bearing deposits which now represent 26 percent of Compass' total deposits," Jones stated. "At the same time, loan growth did not come at the expense of maintaining sound credit quality standards as our key credit quality ratios continued to show improvement. 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 for the second consecutive quarter and from a year ago to 0.67 percent. Although net charge-offs increased from prior year levels, we remain comfortable with the overall quality of our loan portfolio. In response to the strong loan growth we have experienced and in light of current economic conditions, the allowance for loan losses as a percent of loans increased to 1.40 percent as provision expense exceeded net charge-offs by $25.2 million during the year. This increased our allowance for loan losses as a percent of nonperforming loans to 291 percent, placing us in the upper tier of our peers in this measure." Jones said. Compass operates 341 full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. banking offices including 118 in Texas, 87 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). , 60 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). , 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 , 24 in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , nine 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). and two in Nebraska Nebraska (nəbrăs`kə), Great Plains state of the central United States. It is bordered by Iowa and Missouri, across the Missouri R. (E), Kansas (S), Colorado (SW), Wyoming (NW), and South Dakota (N). . Compass will host a live conference call and webcast at 2:00 p.m. Central Standard Time today. 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 1-888-395-6878, 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 January January: see month. 25, 2002. To access a replay of the conference call dial 1-888-566-0678. "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
------------------------------
%
2001 2000 Change
---------- ---------- --------
FINANCIAL HIGHLIGHTS
Net income $72,152 $54,415 33
Nonoperating items, net of tax (a) - - -
Operating earnings $72,152 $54,415 33
Operating diluted earnings per share $ 0.56 $ 0.43 30
Operating diluted earnings
per share - cash basis (b) 0.60 0.47 28
EARNINGS SUMMARY
Net interest income $ 227,679 $ 183,166 24
Noninterest income - operating 99,213 78,574 26
Total revenue - operating 326,892 261,740 25
Provision for loan losses 39,092 24,956 57
Noninterest expense 179,500 163,212 10
Gain on branch sales - - -
Pretax income 108,300 73,572 47
Income tax expense 36,148 19,157 89
Net income $72,152 $54,415 33
Net income available to
common shareholders $72,152 $54,415 33
Net income - cash basis (b) $77,221 $59,959 29
Diluted earnings per share $ 0.56 $ 0.43 30
Diluted earnings per share - cash
basis (b) 0.60 0.47 28
Diluted weighted average
shares outstanding 128,895 128,281 -
Year
Ended December 31
------------------------------
%
2001 2000 Change
--------- ---------- --------
FINANCIAL HIGHLIGHTS
Net income $ 270,397 $ 241,623 12
Nonoperating items, net of tax (a) - 10,855 (100)
Operating earnings $ 270,397 $ 230,768 17
Operating diluted earnings per share $ 2.11 $ 1.82 16
Operating diluted earnings
per share - cash basis (b) 2.27 1.97 15
EARNINGS SUMMARY
Net interest income $ 825,859 $ 718,512 15
Noninterest income - operating 376,378 288,496 30
Total revenue - operating 1,202,237 1,007,008 19
Provision for loan losses 106,241 65,578 62
Noninterest expense 685,770 599,285 14
Gain on branch sales - 16,700 (100)
Pretax income 410,226 358,845 14
Income tax expense 139,829 117,222 19
Net income $ 270,397 $ 241,623 12
Net income available to
common shareholders $ 272,163 $ 241,623 13
Net income - cash basis (b) $ 290,787 $ 260,715 12
Diluted earnings per share $ 2.11 $ 1.90 11
Diluted earnings per share - cash
basis (b) 2.27 2.05 11
Diluted weighted average
shares outstanding 129,138 127,261 1
Three Months
Ended December 31
--------------------------
2001 2000
----------- ----------
SELECTED RATIOS
Average common equity to
average assets 7.77% 7.16%
Average loans to average
total deposits 100.19 86.42
Return on average assets 1.26 1.06
Return on average equity 16.18 14.85
Efficiency ratio (c) 54.44 61.59
Cash basis ratios (b):
Return on average assets 1.36 1.19
Return on average equity 17.32 16.36
Return on average tangible equity 20.57 20.60
Efficiency ratio (c) 52.57 58.96
Book value per common share $13.53 $11.82
Year
Ended December 31
--------------------------
2001 2000
----------- ----------
SELECTED RATIOS
Average common equity to
average assets 7.53% 6.84%
Average loans to average
total deposits 94.53 84.68
Return on average assets 1.23 1.22
Return on average equity 16.32 17.85
Efficiency ratio (c) 56.57 58.34
Cash basis ratios (b):
Return on average assets 1.34 1.33
Return on average equity 17.55 19.26
Return on average tangible equity 21.26 24.09
Efficiency ratio (c) 54.51 55.99
Book value per common share $13.53 $11.82
Average for Three Months
Ended December 31
------------------------------------
%
2001 2000 Change
--------------- ---------- -------
BALANCE SHEET HIGHLIGHTS
Total loans $13,508,137 $12,556,952 8
Total loans - managed 15,663,992 14,234,084 10
Total investment securities (d) 7,233,824 6,044,735 20
Earning assets (d) 20,773,845 18,714,647 11
Total assets 22,773,201 20,370,357 12
Noninterest bearing deposits 3,370,832 2,982,493 13
Interest bearing transaction
accounts 6,535,650 6,169,500 6
Total transaction accounts 9,906,482 9,151,993 8
Total deposits 13,482,621 14,530,332 (7)
Shareholders' equity 1,769,236 1,458,159 21
Average for Year
Ended December 31
------------------------------------
%
2001 2000 Change
--------------- ----------- -------
BALANCE SHEET HIGHLIGHTS
Total loans $13,008,761 $12,112,471 7
Total loans - managed 15,092,770 13,700,227 10
Total investment securities (d) 7,044,645 5,954,816 18
Earning assets (d) 20,089,964 18,189,409 10
Total assets 21,992,587 19,800,819 11
Noninterest bearing deposits 3,142,164 2,889,724 9
Interest bearing transaction
accounts 6,323,453 6,206,125 2
Total transaction accounts 9,465,617 9,095,849 4
Total deposits 13,761,167 14,304,600 (4)
Shareholders' equity 1,656,544 1,353,387 22
Ending Balance
December 31
------------------------------------
%
2001 2000 Change
--------------- ----------- -------
BALANCE SHEET HIGHLIGHTS
Total loans $13,707,286 $12,258,754 12
Total loans - managed 15,926,420 14,392,790 11
Total investment securities (d) 7,271,229 6,509,508 12
Earning assets (d) 21,019,047 18,949,369 11
Total assets 23,015,000 20,877,160 10
Noninterest bearing deposits 3,576,289 3,188,969 12
Interest bearing transaction
accounts 6,771,490 6,213,463 9
Total transaction accounts 10,347,779 9,402,432 10
Total deposits 13,735,245 14,825,377 (7)
Shareholders' equity 1,715,641 1,510,004 14
Period-end shares outstanding 126,801 127,779 (1)
(a) Includes gains on sale of nonstrategic branches.
(b) Excludes after-tax intangible amortization.
(c) Excludes merger and integration expenses and gains
on sale of investment securities and branches.
(d) Includes adjustment for market valuation on
available-for-sale securities.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands except per share data)
Three Months Ended
--------------------------------
2001
--------------------------------
Dec 31 Sep 30 Jun 30
----------- ----------- --------
EARNINGS SUMMARY
Net interest income $ 227,679 $ 209,151 $201,134
Noninterest income - operating 99,213 97,314 91,132
Total revenue - operating 326,892 306,465 292,266
Provision for loan losses 39,092 32,317 21,951
Noninterest expense 179,500 170,506 167,843
Gain on branch sales - - -
Pretax income 108,300 103,642 102,472
Income tax expense 36,148 34,932 35,500
Net income $72,152 $68,710 $66,972
Net income available to
common shareholders $72,152 $68,710 $66,972
Net income - cash basis (a) $77,221 $73,792 $72,084
Diluted earnings per share $ 0.56 $ 0.53 $ 0.52
Diluted earnings per share - cash
basis (a) 0.60 0.57 0.56
Diluted weighted average
shares outstanding 128,895 129,962 129,323
Three Months Ended
-----------------------
2001 2000
-----------------------
Mar 31 Dec 31
----------- --------
EARNINGS SUMMARY
Net interest income $ 187,895 $183,166
Noninterest income - operating 88,719 78,574
Total revenue - operating 276,614 261,740
Provision for loan losses 12,881 24,956
Noninterest expense 167,921 163,212
Gain on branch sales - -
Pretax income 95,812 73,572
Income tax expense 33,249 19,157
Net income $62,563 $54,415
Net income available to
common shareholders $64,329 $54,415
Net income - cash basis (a) $67,690 $59,959
Diluted earnings per share $ 0.50 $ 0.43
Diluted earnings per share - cash
basis (a) 0.54 0.47
Diluted weighted average
shares outstanding 128,901 128,281
Three Months Ended
--------------------------------
2001
--------------------------------
Dec 31 Sep 30 Jun 30
----------- ---------- --------
SELECTED RATIOS
Average common equity to
average assets 7.77% 7.70% 7.34%
Average loans to average
total deposits 100.19 97.34 94.07
Return on average assets 1.26 1.24 1.22
Return on average equity 16.18 16.11 16.65
Efficiency ratio (b) 54.44 55.12 57.48
Cash basis ratios (a):
Return on average assets 1.36 1.35 1.33
Return on average equity 17.32 17.30 17.92
Return on average tangible equity 20.57 20.81 21.87
Efficiency ratio (b) 52.57 53.12 55.35
Book value per common share $ 13.53 $ 13.74 $ 12.81
Three Months Ended
------------------------
2001 2000
-----------------------
Mar 31 Dec 31
----------- ----------
SELECTED RATIOS
Average common equity to
average assets 7.30% 7.16%
Average loans to average
total deposits 86.85 86.42
Return on average assets 1.20 1.06
Return on average equity 16.39 14.85
Efficiency ratio (b) 59.78 61.59
Cash basis ratios (a):
Return on average assets 1.31 1.19
Return on average equity 17.73 16.36
Return on average tangible
equity 21.95 20.60
Efficiency ratio (b) 57.50 58.96
Book value per common share $ 12.55 $ 11.82
(a) Excludes after-tax intangible amortization.
(b) Excludes merger and integration expenses and gains
on sale of investment securities and branches.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
2001
----------------------------
Dec 31 Sep 30 Jun 30
------- ----------- --------
NONPERFORMING ASSETS
Nonaccrual loans $ 65,470 $ 63,284 $ 95,283
Renegotiated loans 327 2,008 2,036
Other real estate, net 26,478 31,061 18,746
Total nonperforming assets $ 92,275 $ 96,353 $116,065
Loans ninety days or more
past due $ 17,577 $ 18,484 $ 17,547
Other repossessed assets 806 727 641
Total nonperforming assets as
a percentage of loans and ORE 0.67% 0.72% 0.90%
2001 2000
-------------------
Mar 31 Dec 31
------- -----------
NONPERFORMING ASSETS
Nonaccrual loans $ 94,859 $ 86,168
Renegotiated loans 78 84
Other real estate, net 17,550 15,476
Total nonperforming assets $112,487 $101,728
Loans ninety days or more
past due $ 20,840 $ 19,884
Other repossessed assets 1,217 1,706
Total nonperforming assets as
a percentage of loans and ORE 0.89% 0.83%
Three Months Ended
----------------------------
2001
----------------------------
Dec 31 Sep 30 Jun 30
------- ------- -------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $174,809 $172,986 $167,501
Net charge-offs - excluding
credit cards 17,503 25,409 8,813
Net charge-offs - credit cards 5,005 5,085 6,603
Net charge-offs (NCO) 22,508 30,494 15,416
Allowance for loans sold - - (1,050)
Provision for loan losses 39,092 32,317 21,951
Balance at end of period $191,393 $174,809 $172,986
Allowance for loan losses as
a % of total loans 1.40% 1.32% 1.35%
Allowance for loan losses as
a % of nonperforming loans 290.88 267.73 177.75
Allowance for loan losses as
a % of nonperforming assets 207.42 181.43 149.04
Annualized as a % of average loans:
NCO - QTD 0.66 0.93 0.47
NCO, excluding credit cards - QTD 0.53 0.80 0.28
NCO - YTD 0.62 0.61 0.44
NCO, excluding credit cards - YTD 0.48 0.46 0.28
Three Months Ended
---------------------
2001 2000
---------------------
Mar 31 Dec 31
----------- --------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $167,288 $162,067
Net charge-offs - excluding
credit cards 8,072 14,989
Net charge-offs - credit cards 4,596 4,746
Net charge-offs (NCO) 12,668 19,735
Allowance for loans sold - -
Provision for loan losses 12,881 24,956
Balance at end of period $167,501 $167,288
Allowance for loan losses as
a % of total loans 1.32% 1.36%
Allowance for loan losses as
a % of nonperforming loans 176.43 193.95
Allowance for loan losses as
a % of nonperforming assets 148.91 164.45
Annualized as a % of average loans:
NCO - QTD 0.41 0.63
NCO, excluding credit cards - QTD 0.27 0.49
NCO - YTD 0.41 0.47
NCO, excluding credit cards - YTD 0.27 0.35
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Three Months Ended December 31
--------------------------------
2001
--------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
----------- ---------- --------
Assets
Earning assets:
Loans $13,508,137 $256,534 7.53%
Investment securities 761,038 13,038 6.80
Investment securities available
for sale (a) 6,357,542 95,438 5.96
Other earning assets 31,884 348 4.33
Total earning assets 20,658,601 365,358 7.02
Allowance for loan losses (177,502)
Unrealized gain (loss) on
securities available for sale 115,244
Cash and other assets 2,176,858
----------
$22,773,201
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 97,656 354 1.44
Savings deposits 6,437,994 30,398 1.87
Time deposits 2,500,658 32,856 5.21
Certificates of deposit of
$100,000 or more (a) 1,075,457 12,572 4.64
Federal funds purchased and
securities sold under agreement
to repurchase 3,226,703 17,207 2.12
Other short-term borrowings 339,896 1,572 1.83
FHLB and other borrowings (a) 3,599,081 41,516 4.58
Total interest bearing
liabilities 17,277,445 136,475 3.13
Net interest spread 228,883 3.89%
Noninterest bearing demand
deposits 3,370,832
Accrued expenses and other
liabilities 355,688
Shareholders' equity 1,769,236
-----------
$22,773,201
Net yield on earning assets 4.40%
Taxable equivalent adjustment:
Loans 104
Investment securities 527
Investment securities available
for sale 558
Other earning assets 15
Total taxable equivalent adjustment 1,204
Net interest income $227,679
(a) Excludes adjustment for market valuation.
Three Months Ended December 31
---------------------------------
2000
---------------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ ----------- --------
Assets
Earning assets:
Loans $12,556,952 $290,968 9.22%
Investment securities 1,450,959 28,563 7.83
Investment securities available
for sale (a) 4,689,095 78,755 6.68
Other earning assets 112,960 2,074 7.30
Total earning assets 18,809,966 400,360 8.47
Allowance for loan losses (162,412)
Unrealized gain (loss) on
securities available for sale (95,319)
Cash and other assets 1,818,122
-----------
$20,370,357
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 145,990 836 2.28
Savings deposits 6,023,510 59,227 3.91
Time deposits 3,452,001 53,614 6.18
Certificates of deposit of
$100,000 or more (a) 1,926,338 31,405 6.49
Federal funds purchased and
securities sold under agreement
to repurchase 1,817,500 29,842 6.53
Other short-term borrowings 143,747 2,236 6.19
FHLB and other borrowings (a) 2,251,307 38,773 6.85
Total interest bearing
liabilities 15,760,393 215,933 5.45
Net interest spread 184,427 3.02%
Noninterest bearing demand
deposits 2,982,493
Accrued expenses and other
liabilities 169,312
Shareholders' equity 1,458,159
----------
$20,370,357
Net yield on earning assets 3.90%
Taxable equivalent adjustment:
Loans 81
Investment securities 556
Investment securities available
for sale 614
Other earning assets 10
Total taxable equivalent adjustment 1,261
Net interest income $183,166
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Year Ended December 31
----------------------------
2001
----------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ ----------- --------
Assets
Earning assets:
Loans $13,008,761 $1,068,017 8.21%
Investment securities 865,445 60,027 6.94
Investment securities available
for sale (a) 6,130,691 392,239 6.40
Other earning assets 36,558 2,487 6.80
Total earning assets 20,041,455 1,522,770 7.60
Allowance for loan losses (171,431)
Unrealized gain (loss) on
securities available for sale 48,509
Cash and other assets 2,074,054
----------
$21,992,587
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 117,945 2,288 1.94
Savings deposits 6,205,508 166,856 2.69
Time deposits 2,970,117 172,979 5.82
Certificates of deposit of
$100,000 or more (a) 1,325,403 74,372 5.61
Federal funds purchased and
securities sold under agreement
to repurchase 2,743,187 99,637 3.63
Other short-term borrowings 219,994 7,475 3.40
FHLB and other borrowings (a) 3,307,695 168,255 5.09
Total interest bearing
liabilities 16,889,849 691,862 4.10
Net interest spread 830,908 3.50%
Noninterest bearing demand
deposits 3,142,164
Accrued expenses and other
liabilities 304,030
Shareholders' equity 1,656,544
----------
$21,992,587
Net yield on earning assets 4.15%
Taxable equivalent adjustment:
Loans 533
Investment securities 2,243
Investment securities available
for sale 2,209
Other earning assets 64
Total taxable equivalent adjustment 5,049
Net interest income $825,859
(a) Excludes adjustment for market valuation.
Year Ended December 31
--------------------------
2000
--------------------------
YIELD/RATE ANALYSIS Average Income/ Yield/
(Taxable Equivalent Basis) Balance Expense Rate
------------ ----------- --------
Assets
Earning assets:
Loans $12,112,471 $1,101,110 9.09%
Investment securities 1,505,047 107,573 7.15
Investment securities available
for sale (a) 4,598,223 303,590 6.60
Other earning assets 122,122 8,267 6.77
Total earning assets 18,337,863 1,520,540 8.29
Allowance for loan losses (157,924)
Unrealized gain (loss) on
securities available for sale (148,454)
Cash and other assets 1,769,334
-----------
$19,800,819
Liabilities and Shareholders' Equity
Interest bearing liabilities:
Interest bearing demand deposits $ 182,111 3,298 1.81
Savings deposits 6,024,014 229,854 3.82
Time deposits 3,424,563 200,543 5.86
Certificates of deposit of
$100,000 or more (a) 1,784,188 109,647 6.15
Federal funds purchased and
securities sold under agreement
to repurchase 1,412,803 88,896 6.29
Other short-term borrowings 207,854 11,609 5.59
FHLB and other borrowings (a) 2,375,523 153,210 6.45
Total interest bearing
liabilities 15,411,056 797,057 5.17
Net interest spread 723,483 3.12%
Noninterest bearing demand
deposits 2,889,724
Accrued expenses and other
liabilities 146,652
Shareholders' equity 1,353,387
-----------
$19,800,819
Net yield on earning assets 3.95%
Taxable equivalent adjustment:
Loans 201
Investment securities 2,259
Investment securities available
for sale 2,457
Other earning assets 54
Total taxable equivalent adjustment 4,971
Net interest income $718,512
(a) Excludes adjustment for market valuation.
COMPASS BANCSHARES, INC.
(Unaudited)
(In thousands)
Year
Ended December 31
------------------------------
%
2001 2000 Change
--------- ----------- --------
NONINTEREST INCOME
Service charges on deposit
accounts $ 155,008 $ 127,476 22
Asset management fees 20,614 20,117 2
Credit card service charges and
fees 33,495 29,242 15
Retail investment sales 23,397 18,474 27
Trading account profits
and commissions 22,263 8,097 175
Investment securities gains (losses),
net 7,583 4 NM
Other income 114,018 85,086 34
Total - excluding gain on
sale of branches 376,378 288,496 30
Gain on sale of branches - 16,700 (100)
Total $ 376,378 $ 305,196 23
NONINTEREST EXPENSE
Salaries and benefits $ 346,275 $ 304,921 14
Net occupancy expense 53,294 46,199 15
Equipment expense 60,137 52,812 14
Professional services 46,095 37,799 22
Marketing expense 19,634 13,231 48
Amortization of intangibles 24,709 23,802 4
Merger and integration
expenses 7,131 8,896 (20)
Other expense 128,495 111,625 15
Total $ 685,770 $ 599,285 14
Three Months Ended
------------------------------
2001
------------------------------
Dec 31 Sep 30 Jun 30
--------- ----------- --------
NONINTEREST INCOME
Service charges on deposit accounts $ 42,593 $ 39,180 $ 38,708
Asset management fees 5,220 5,136 5,165
Credit card service charges and fees 9,228 9,385 8,276
Retail investment sales 5,897 7,763 4,792
Trading account profits
and commissions 5,963 5,397 5,587
Investment securities gains (losses),
net 5 (13) 2,605
Other income 30,307 30,466 25,999
Total - excluding gain on
sale of branches 99,213 97,314 91,132
Gain on sale of branches - - -
Total $ 99,213 $ 97,314 $ 91,132
NONINTEREST EXPENSE
Salaries and benefits $ 89,959 $ 88,073 $ 84,430
Net occupancy expense 14,067 13,088 13,360
Equipment expense 15,203 15,408 14,786
Professional services 12,761 11,152 11,721
Marketing expense 4,583 5,093 6,018
Amortization of intangibles 6,133 6,151 6,205
Merger and integration
expenses 882 901 604
Other expense 35,912 30,640 30,719
Total $ 179,500 $ 170,506 $167,843
Three Months Ended
---------------------
2001 2000
---------------------
Mar 31 Dec 31
----------- --------
NONINTEREST INCOME
Service charges on deposit accounts $ 34,527 $ 33,905
Asset management fees 5,093 5,383
Credit card service charges and fees 6,606 8,515
Retail investment sales 4,945 4,296
Trading account profits
and commissions 5,316 2,525
Investment securities gains (losses), net 4,986 -
Other income 27,246 23,950
Total - excluding gain on
sale of branches 88,719 78,574
Gain on sale of branches - -
Total $ 88,719 $ 78,574
NONINTEREST EXPENSE
Salaries and benefits $ 83,813 $ 81,571
Net occupancy expense 12,779 12,061
Equipment expense 14,740 15,409
Professional services 10,461 11,858
Marketing expense 3,940 3,619
Amortization of intangibles 6,220 6,917
Merger and integration
expenses 4,744 1,219
Other expense 31,224 30,558
Total $167,921 $163,212
NM - Not meaningful
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