Compass Bancshares, Inc. (NASDAQ: CBSS) today reported earnings of $222.4 million for the first six months of 2007 compared to $223.3 million earned during the first six months of 2006. On a per share basis earnings were $1.67, including additional costs and an increase in diluted shares outstanding incurred in connection with the signing of a definitive agreement under which Banco Bilbao Vizcaya Argentaria, S.A. (“BBVA”) will acquire Compass. Return on average assets and return on average shareholders’ equity for the first six months of 2007 were 1.30 percent and 15.28 percent, respectively.
Earnings for the second quarter of 2007 were $109.3 million compared to $115.4 million earned during the second quarter of 2006. Earnings per share for the second quarter of 2007 were $0.82. Return on average assets and return on average shareholders’ equity for the second quarter of 2007 were 1.27 percent and 14.69 percent.
The transaction, subject to customary closing conditions, has received the necessary bank regulatory approvals in the U.S. and Spain, and approval of BBVA stockholders for an increase in capital to fund the acquisition. A special meeting of Compass stockholders is scheduled for Wednesday, August 8, 2007, at 10:00 a.m. (Birmingham, Alabama time) at which time Compass stockholders will be asked to approve and adopt the transaction agreement.
D. Paul Jones, Jr., Compass chairman and chief executive officer, stated, “Our pending partnership with BBVA is on plan. All necessary bank regulatory approvals have been received, BBVA stockholders have approved the capital increase for the transaction and we are preparing for Compass’ stockholder meeting on August 8. We are confident that the integration of Compass and BBVA will be seamless and we look forward to continuing our longstanding service commitment to our customers and communities. We continue to be impressed with the level of cooperation and teamwork from employees of both organizations. We firmly believe that this compelling combination offers significant upside potential for our shareholders, customers and employees and we are confident about the realization of the synergies from this combination.”
Total revenue for the second quarter of 2007 was $466.3 million compared to $469.1 million in the second quarter of 2006. Net interest income was $278.1 million for the second quarter of 2007 compared to $287.7 million earned in the year ago quarter. Noninterest income increased to $188.2 million compared to $181.4 million in the second quarter of 2006. Shortly after the end of the quarter, Compass announced the acquisition of Capital Investment Counsel, Inc. (CIC), one of the largest registered investment advisors in the Denver, Colorado and Phoenix, Arizona areas. The addition of CIC marks the third acquisition of an investment advisory firm by Compass since 2002 and is consistent with Compass’ business plan aimed at increasing fee-based revenues.
With respect to the balance sheet, average total assets increased to $34.6 billion compared to $33.2 billion in the second quarter a year ago. Average total loans increased six percent to $25.3 billion compared to $23.8 billion in the second quarter of 2006. Average total deposits of $23.4 billion represented a four percent increase compared to the $22.5 billion in the year ago quarter. Average shareholders’ equity increased 14 percent to $3.0 billion compared to $2.6 billion in the second quarter of 2006.
Net charge-offs as a percentage of average loans were 0.39 percent in the second quarter of 2007 compared to 0.28 percent during the second quarter of 2006. Nonperforming assets as a percentage of loans and other real estate increased to 0.58 percent primarily as a result of increased nonperforming assets in a specific, isolated real estate construction portfolio in a Southeastern market. At the same time, loan loss provision expense exceeded net charge-offs by $13.5 million and the allowance for loan losses as a percentage of loans ended the quarter at 1.19 percent.
A presentation containing additional information will be available later today on our web site at www.compassbank.com under the link labeled Compass Bancshares 2Q07 Financial Results. The presentation will remain available until midnight, August 1, 2007.
Compass operates 415 full-service banking centers including 164 in Texas, 89 in Alabama, 75 in Arizona, 44 in Florida, 33 in Colorado, and 10 in New Mexico. In February, Compass announced the signing of a definitive agreement under which Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBV“BBVA”) will acquire Compass for a combination of cash and stock. BBVA, which operates in 35 countries, is based in Spain and has substantial banking interests in the Americas. The transaction will facilitate BBVA’s continued growth in Texas and will create the largest regional bank across the Sunbelt. Upon completion of the transaction, the combined entity will rank among the top 25 banks in the United States with approximately $47 billion in total assets, $32 billion in total loans and $33 billion in total deposits. In addition, the combined company will rank fourth in deposit market share in Texas with $19.6 billion in total deposits and 326 full-service banking centers. Additional information about the transaction can be found at www.compassbank.com under the link labeled Compass-BBVA Proxy Voting and Transaction News.
Shares of Compass' common stock are traded through the NASDAQ Global Select MarketSM exchange under the symbol CBSS. Additional information about Compass, a member of the S&P 500 Index and Dow Jones Select Dividend Index, can be found at www.compassbank.com.
Cautionary Statement Regarding Forward-Looking Information
Information set forth in this release contains forward-looking statements, which involve a number of risks and uncertainties. Compass cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, statements about the benefits of the business combination transaction involving Compass and BBVA, including future financial and operating results, the new company’s plans, objectives, expectations and intentions and other statements that are not historical facts.
The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to obtain regulatory approvals of the transaction on the proposed terms and schedule; the failure of Compass stockholders or BBVA shareholders to approve the transaction; the risk that the businesses will not be integrated successfully; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; competition and its effect on pricing, spending, third-party relationships and revenues. Additional factors that may affect future results are contained in Compass’ and BBVA’s filings with the SEC, which are available at the SEC’s web site http://www.sec.gov. Compass disclaims any obligation to update and revise statements contained in these materials based on new information or otherwise.
Additional Information About the BBVA Transaction
In connection with the proposed transaction, BBVA has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form F-4 that includes a proxy statement of Compass that also constitutes a prospectus of BBVA. Compass has begun mailing the proxy statement/prospectus to its stockholders. Investors and security holders are urged to read the proxy statement/prospectus regarding the proposed transaction because it contains important information. You may obtain a free copy of the proxy statement/prospectus and other related documents filed by Compass and BBVA with the SEC at the SEC’s website at www.sec.gov. The proxy statement/prospectus and the other documents may also be obtained for free by accessing Compass’ website at www.compassbank.com under the tab “Investor Relations” and then under the heading “SEC Filings”.
Participants in the BBVA/Compass Transaction
Compass, BBVA and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from stockholders in favor of the transaction. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the stockholders in connection with the proposed transaction will be set forth in the proxy statement/prospectus filed with the SEC. You can find information about Compass’ executive officers and directors in Compass’ definitive proxy statement filed with the SEC on March 17, 2006. You can find information about BBVA’s executive officers and directors in BBVA’s Form 20-F filed with the SEC on July 7, 2006. You can obtain free copies of these documents from Compass or BBVA using the contact information above.
COMPASS BANCSHARES, INC. (Unaudited) (In thousands except per share data) | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
% | % | ||||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | ||||||||||||||||||
| EARNINGS SUMMARY | |||||||||||||||||||||||
| Net interest income | $ | 278,104 | $ | 287,682 | (3 | ) | $ | 556,505 | $ | 547,943 | 2 | ||||||||||||
| Noninterest income [a] | 188,224 | 181,417 | 4 | 367,028 | 346,706 | 6 | |||||||||||||||||
| Total revenue [a] | 466,328 | 469,099 | (1 | ) | 923,533 | 894,649 | 3 | ||||||||||||||||
| Investment securities losses, net | - | (51 | ) | (100 | ) | - | (14,889 | ) | (100 | ) | |||||||||||||
| Gain on prepayment of FHLB advances | - | - | - | - | 14,893 | (100 | ) | ||||||||||||||||
| Provision for loan losses | 38,288 | 27,322 | 40 | 58,333 | 44,434 | 31 | |||||||||||||||||
| Noninterest expense | 263,402 | 265,850 | (1 | ) | 528,837 | 510,220 | 4 | ||||||||||||||||
| Pretax income | 164,638 | 175,876 | (6 | ) | 336,363 | 339,999 | (1 | ) | |||||||||||||||
| Income tax expense | 55,331 | 60,505 | (9 | ) | 113,920 | 116,719 | (2 | ) | |||||||||||||||
| Net income | $ | 109,307 | $ | 115,371 | (5 | ) | $ | 222,443 | $ | 223,280 | - | ||||||||||||
| Diluted earnings per share | $ | 0.82 | $ | 0.88 | (7 | ) | $ | 1.67 | $ | 1.73 | (3 | ) | |||||||||||
Diluted weighted average shares outstanding | 133,827 | 131,395 | 2 | 133,313 | 128,923 | 3 | |||||||||||||||||
| SELECTED RATIOS | |||||||||||||||||||||||
Average common equity to average assets | 8.64 | % | 7.86 | % | 8.53 | % | 7.66 | % | |||||||||||||||
Average loans to average total deposits | 107.82 | 105.80 | 107.76 | 106.25 | |||||||||||||||||||
| Return on average assets | 1.27 | 1.40 | 1.30 | 1.41 | |||||||||||||||||||
| Return on average equity | 14.69 | 17.75 | 15.28 | 18.34 | |||||||||||||||||||
| Efficiency ratio [b] | 55.38 | 55.39 | 56.29 | 55.99 | |||||||||||||||||||
| Return on average tangible equity [c] | 19.86 | 25.30 | 20.75 | 24.21 | |||||||||||||||||||
| Book value per common share | $ | 22.48 | $ | 20.15 | $ | 22.48 | $ | 20.15 | |||||||||||||||
Allowance for loan losses as a % of total loans | 1.19 | % | 1.19 | % | 1.19 | % | 1.19 | % | |||||||||||||||
Allowance for loan losses as a % of nonperforming loans | 225.42 | 512.28 | 225.42 | 512.28 | |||||||||||||||||||
Average for Three Months Ended June 30 | Average for Six Months Ended June 30 | Ending Balance June 30 | ||||||||||||||||||||||||||
% | % | % | ||||||||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | 2007 | 2006 | Change | ||||||||||||||||||||
| BALANCE SHEET HIGHLIGHTS | ||||||||||||||||||||||||||||
| Total loans | $ | 25,283,944 | $ | 23,825,717 | 6 | $ | 25,145,425 | $ | 22,794,141 | 10 | $ | 25,480,626 | $ | 24,232,115 | 5 | |||||||||||||
| Total loans - managed | 26,192,431 | 24,957,379 | 5 | 26,083,054 | 23,957,534 | 9 | 26,367,659 | 25,330,180 | 4 | |||||||||||||||||||
| Total investment securities [d] | 6,510,523 | 6,481,514 | - | 6,496,467 | 6,616,323 | (2 | ) | 6,505,933 | 6,414,790 | 1 | ||||||||||||||||||
| Earning assets [d] | 31,867,164 | 30,389,626 | 5 | 31,714,063 | 29,487,323 | 8 | 32,063,340 | 30,783,692 | 4 | |||||||||||||||||||
| Total assets | 34,560,556 | 33,161,966 | 4 | 34,422,199 | 32,045,193 | 7 | 34,882,457 | 33,613,492 | 4 | |||||||||||||||||||
| Noninterest bearing demand deposits | 6,010,909 | 6,383,257 | (6 | ) | 6,011,720 | 6,147,916 | (2 | ) | 6,102,496 | 6,663,451 | (8 | ) | ||||||||||||||||
Interest bearing transaction accounts | 9,695,721 | 8,974,393 | 8 | 9,493,233 | 8,521,101 | 11 | 9,839,892 | 9,052,680 | 9 | |||||||||||||||||||
| Total transaction accounts | 15,706,630 | 15,357,650 | 2 | 15,504,953 | 14,669,017 | 6 | 15,942,388 | 15,716,131 | 1 | |||||||||||||||||||
| Total deposits [d] | 23,449,375 | 22,518,573 | 4 | 23,335,285 | 21,453,840 | 9 | 23,658,970 | 22,837,259 | 4 | |||||||||||||||||||
| Shareholders' equity | 2,984,804 | 2,607,705 | 14 | 2,935,247 | 2,454,641 | 20 | 2,990,603 | 2,605,512 | 15 | |||||||||||||||||||
Period-end shares outstanding | 133,006 | 129,320 | 3 | |||||||||||||||||||||||||
[a] Excludes net loss on sales of investment securities and gain on prepayment of FHLB advances. | ||||||||||||||||||||||||||||
[b] Ratio is calculated by dividing noninterest expense less merger and integration and operating lease write-down expense by taxable equivalent net interest income plus noninterest income less net loss on sales of investment securities and gain on prepayment of FHLB advances. | ||||||||||||||||||||||||||||
| [c] Excludes amortization of intangibles, net of tax, and intangible assets. | ||||||||||||||||||||||||||||
| [d] Includes adjustment for market valuation. | ||||||||||||||||||||||||||||
Note: Includes the results of operations of TexasBanc Holding Co. which was acquired on March 24, 2006. | ||||||||||||||||||||||||||||
Note: Includes balance sheet data of TexasBanc Holding Co. which was acquired on March 24, 2006. | ||||||||||||||||||||||||||||
COMPASS BANCSHARES, INC. (Unaudited) (In thousands except per share data) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
2007 | 2006 | |||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||
| EARNINGS SUMMARY | ||||||||||||||||
| Net interest income | $ | 278,104 | $ | 278,401 | $ | 280,615 | $ | 286,576 | $ | 287,682 | ||||||
| Noninterest income [a] | 188,224 | 178,804 | 179,509 | 178,850 | 181,417 | |||||||||||
| Total revenue [a] | 466,328 | 457,205 | 460,124 | 465,426 | 469,099 | |||||||||||
| Investment securities losses, net | - | - | - | - | (51 | ) | ||||||||||
| Gain on prepayment of FHLB advances | - | - | 6,191 | - | - | |||||||||||
| Provision for loan losses | 38,288 | 20,045 | 21,042 | 24,226 | 27,322 | |||||||||||
| Noninterest expense | 263,402 | 265,435 | 273,497 | 265,558 | 265,850 | |||||||||||
| Pretax income | 164,638 | 171,725 | 171,776 | 175,642 | 175,876 | |||||||||||
| Income tax expense | 55,331 | 58,589 | 53,460 | 56,875 | 60,505 | |||||||||||
| Net income | $ | 109,307 | $ | 113,136 | $ | 118,316 | $ | 118,767 | $ | 115,371 | ||||||
| Diluted earnings per share | $ | 0.82 | $ | 0.85 | $ | 0.90 | $ | 0.90 | $ | 0.88 | ||||||
Diluted weighted average shares outstanding | 133,827 | 132,781 | 132,050 | 131,799 | 131,395 | |||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||
| Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||
| SELECTED RATIOS | ||||||||||||||||||||
Average common equity to average assets | 8.64 | % | 8.42 | % | 8.22 | % | 7.97 | % | 7.86 | % | ||||||||||
Average loans to average total deposits | 107.82 | 107.69 | 108.19 | 107.85 | 105.80 | |||||||||||||||
| Return on average assets | 1.27 | 1.34 | 1.38 | 1.39 | 1.40 | |||||||||||||||
| Return on average equity | 14.69 | 15.90 | 16.73 | 17.49 | 17.75 | |||||||||||||||
| Efficiency ratio [b] | 55.38 | 57.21 | 56.58 | 56.38 | 55.39 | |||||||||||||||
| Return on average tangible equity [c] | 19.86 | 21.71 | 23.15 | 24.54 | 25.30 | |||||||||||||||
| Book value per common share | $ | 22.48 | $ | 22.32 | $ | 21.71 | $ | 21.19 | $ | 20.15 | ||||||||||
Jun 30, 2007 | Mar 31, 2007 | Annualized % Change | |||||||
| ENDING BALANCE SHEET | |||||||||
| Total loans | $ | 25,480,626 | $ | 24,981,351 | 8 | ||||
| Total loans - managed | 26,367,659 | 25,921,684 | 7 | ||||||
| Total investment securities [d] | 6,505,933 | 6,567,372 | (4 | ) | |||||
| Earning assets [d] | 32,063,340 | 31,617,343 | 6 | ||||||
| Total assets | 34,882,457 | 34,391,693 | 6 | ||||||
| Noninterest bearing demand deposits | 6,102,496 | 6,454,508 | (22 | ) | |||||
Interest bearing transaction accounts | 9,839,892 | 9,695,710 | 6 | ||||||
| Total transaction accounts | 15,942,388 | 16,150,218 | (5 | ) | |||||
| Total deposits [d] | 23,658,970 | 24,031,039 | (6 | ) | |||||
| Shareholders' equity | 2,990,603 | 2,931,774 | 8 | ||||||
Jun 30, 2007 | Mar 31, 2007 | Annualized % Change | |||||||
| QUARTER AVERAGE BALANCE SHEET | |||||||||
| Total loans | $ | 25,283,944 | $ | 25,005,367 | 4 | ||||
| Total loans - managed | 26,192,431 | 25,972,462 | 3 | ||||||
| Total investment securities [d] | 6,510,523 | 6,482,256 | 2 | ||||||
| Earning assets [d] | 31,867,164 | 31,559,262 | 4 | ||||||
| Total assets | 34,560,556 | 34,282,304 | 3 | ||||||
| Noninterest bearing demand deposits | 6,010,909 | 6,012,541 | - | ||||||
Interest bearing transaction accounts | 9,695,721 | 9,288,493 | 18 | ||||||
| Total transaction accounts | 15,706,630 | 15,301,034 | 11 | ||||||
| Total deposits [d] | 23,449,375 | 23,219,927 | 4 | ||||||
| Shareholders' equity | 2,984,804 | 2,885,138 | 14 | ||||||
[a] Excludes net loss on sales of investment securities and gain on prepayment of FHLB advances. | |||||||||
[b] Ratio is calculated by dividing noninterest expense less merger and integration and operating lease write-down expense by taxable equivalent net interest income plus noninterest income less net loss on sales of investment securities and gain on prepayment of FHLB advances. | |||||||||
| [c] Excludes amortization of intangibles, net of tax, and intangible assets. | |||||||||
| [d] Includes adjustment for market valuation. | |||||||||
Note: Includes the results of operations of TexasBanc Holding Co. which was acquired on March 24, 2006. | |||||||||
Note: Includes balance sheet data of TexasBanc Holding Co. which was acquired on March 24, 2006. | |||||||||
COMPASS BANCSHARES, INC. (Unaudited) (In thousands) | ||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||
| NONPERFORMING ASSETS | ||||||||||||||||||||
| Nonaccrual loans | $ | 130,939 | $ | 73,786 | $ | 53,014 | $ | 49,340 | $ | 53,166 | ||||||||||
| Renegotiated loans | 3,985 | 8,988 | 3,258 | 3,267 | 3,276 | |||||||||||||||
| Other real estate, net | 14,165 | 17,079 | 17,105 | 15,886 | 11,803 | |||||||||||||||
| Total nonperforming assets | $ | 149,089 | $ | 99,853 | $ | 73,377 | $ | 68,493 | $ | 68,245 | ||||||||||
Accruing loans ninety days or more past due | $ | 21,318 | $ | 19,451 | $ | 18,023 | $ | 18,190 | $ | 14,862 | ||||||||||
| Other repossessed assets | 659 | 722 | 856 | 494 | 565 | |||||||||||||||
Total nonperforming assets as a % of loans and ORE | 0.58 | % | 0.40 | % | 0.30 | % | 0.28 | % | 0.28 | % | ||||||||||
Three Months Ended | ||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
| Balance at beginning of period | $ | 292,282 | $ | 291,050 | $ | 292,012 | $ | 289,143 | $ | 282,457 | ||||||||||
| Net charge-offs (NCO) | 24,794 | 18,813 | 22,004 | 21,357 | 16,557 | |||||||||||||||
| Allowance transferred | (1,633 | ) | - | - | - | (4,079 | ) | |||||||||||||
| Provision for loan losses | 38,288 | 20,045 | 21,042 | 24,226 | 27,322 | |||||||||||||||
| Balance at end of period | $ | 304,143 | $ | 292,282 | $ | 291,050 | $ | 292,012 | $ | 289,143 | ||||||||||
Allowance for loan losses as a % of total loans | 1.19 | % | 1.17 | % | 1.18 | % | 1.19 | % | 1.19 | % | ||||||||||
Allowance for loan losses as a % of nonperforming loans | 225.42 | 353.11 | 517.22 | 555.08 | 512.28 | |||||||||||||||
Allowance for loan losses as a % of nonperforming assets | 204.00 | 292.71 | 396.65 | 426.34 | 423.68 | |||||||||||||||
| Annualized as a % of average loans: | ||||||||||||||||||||
| NCO - QTD | 0.39 | 0.31 | 0.35 | 0.35 | 0.28 | |||||||||||||||
| NCO - YTD | 0.35 | 0.31 | 0.32 | 0.31 | 0.30 | |||||||||||||||
COMPASS BANCSHARES, INC. (Unaudited) (In thousands) | |||||||||||||||||||||
Three Months Ended June 30 | |||||||||||||||||||||
2007 | 2006 | ||||||||||||||||||||
| YIELD/RATE ANALYSIS | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||
| (Taxable Equivalent Basis) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||
| Assets | |||||||||||||||||||||
| Earning assets: | |||||||||||||||||||||
| Loans | $ | 25,283,944 | $ | 472,329 | 7.49 | % | $ | 23,825,717 | $ | 433,606 | 7.30 | % | |||||||||
Investment securities held to maturity | 1,846,253 | 22,207 | 4.82 | 2,186,628 | 26,588 | 4.88 | |||||||||||||||
Investment securities available for sale [a] | 4,705,326 | 58,645 | 5.00 | 4,392,836 | 51,628 | 4.71 | |||||||||||||||
| Other earning assets | 72,697 | 954 | 5.26 | 82,395 | 1,047 | 5.10 | |||||||||||||||
| Total earning assets [a] | 31,908,220 | 554,135 | 6.97 | 30,487,576 | 512,869 | 6.75 | |||||||||||||||
| Allowance for loan losses | (294,476 | ) | (286,419 | ) | |||||||||||||||||
Unrealized loss on securities available for sale | (41,056 | ) | (97,950 | ) | |||||||||||||||||
| Other assets | 2,987,868 | 3,058,759 | |||||||||||||||||||
| $ | 34,560,556 | $ | 33,161,966 | ||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||
| Interest bearing transaction accounts | $ | 9,695,721 | 70,556 | 2.92 | $ | 8,974,393 | 46,337 | 2.07 | |||||||||||||
| Time deposits | 3,772,298 | 45,758 | 4.87 | 3,421,489 | 37,837 | 4.44 | |||||||||||||||
Certificates of deposit of $100,000 or more [a] | 3,970,300 | 50,491 | 5.10 | 3,740,929 | 42,244 | 4.53 | |||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase | 3,560,966 | 46,466 | 5.23 | 2,917,273 | 35,588 | 4.89 | |||||||||||||||
| Other short-term borrowings | 660,652 | 8,714 | 5.29 | 878,471 | 10,757 | 4.91 | |||||||||||||||
| FHLB and other borrowings [a] | 3,491,602 | 50,744 | 5.83 | 3,883,337 | 51,018 | 5.27 | |||||||||||||||
Total interest bearing liabilities [a] | 25,151,539 | 272,729 | 4.35 | 23,815,892 | 223,781 | 3.77 | |||||||||||||||
| Net interest spread | 281,406 | 2.62 | % | 289,088 | 2.98 | % | |||||||||||||||
| Noninterest bearing demand deposits | 6,010,909 | 6,383,257 | |||||||||||||||||||
| Other liabilities | 413,304 | 355,112 | |||||||||||||||||||
| Shareholders' equity | 2,984,804 | 2,607,705 | |||||||||||||||||||
| $ | 34,560,556 | $ | 33,161,966 | ||||||||||||||||||
| Net yield on earning assets | 3.54 | % | 3.80 | % | |||||||||||||||||
| Taxable equivalent adjustment: | |||||||||||||||||||||
| Loans | 1,135 | 354 | |||||||||||||||||||
| Investment securities held to maturity | 641 | 615 | |||||||||||||||||||
Investment securities available for sale | 1,516 | 429 | |||||||||||||||||||
| Other earning assets | 10 | 8 | |||||||||||||||||||
| Total taxable equivalent adjustment | 3,302 | 1,406 | |||||||||||||||||||
| Net interest income | $ | 278,104 | $ | 287,682 | |||||||||||||||||
| [a] Excludes adjustment for market valuation. | |||||||||||||||||||||
Note: Includes the results of operations of TexasBanc Holding Co. which was acquired on March 24, 2006. | |||||||||||||||||||||
Note: Includes balance sheet data of TexasBanc Holding Co. which was acquired on March 24, 2006. | |||||||||||||||||||||
COMPASS BANCSHARES, INC. (Unaudited) (In thousands) | |||||||||||||||||||||
Six Months Ended June 30 | |||||||||||||||||||||
2007 | 2006 | ||||||||||||||||||||
| YIELD/RATE ANALYSIS | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||
(Taxable Equivalent Basis) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||
| Assets | |||||||||||||||||||||
| Earning assets: | |||||||||||||||||||||
| Loans | $ | 25,145,425 | $ | 939,588 | 7.54 | % | $ | 22,794,141 | $ | 806,366 | 7.13 | % | |||||||||
Investment securities held to maturity | 1,884,346 | 44,882 | 4.80 | 2,200,542 | 52,988 | 4.86 | |||||||||||||||
Investment securities available for sale [a] | 4,655,040 | 114,627 | 4.97 | 4,510,595 | 103,026 | 4.61 | |||||||||||||||
| Other earning assets | 72,171 | 1,864 | 5.21 | 76,859 | 1,829 | 4.80 | |||||||||||||||
| Total earning assets [a] | 31,756,982 | 1,100,961 | 6.99 | 29,582,137 | 964,209 | 6.57 | |||||||||||||||
| Allowance for loan losses | (293,944 | ) | (278,540 | ) | |||||||||||||||||
Unrealized loss on securities available for sale | (42,919 | ) | (94,814 | ) | |||||||||||||||||
| Other assets | 3,002,080 | 2,836,410 | |||||||||||||||||||
| $ | 34,422,199 | $ | 32,045,193 | ||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||
| Interest bearing transaction accounts | $ | 9,493,233 | 132,575 | 2.82 | $ | 8,521,101 | 79,784 | 1.89 | |||||||||||||
| Time deposits | 3,846,985 | 92,871 | 4.87 | 3,200,259 | 67,778 | 4.27 | |||||||||||||||
Certificates of deposit of $100,000 or more [a] | 3,983,248 | 100,782 | 5.10 | 3,585,441 | 78,157 | 4.40 | |||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase | 3,522,193 | 91,432 | 5.23 | 3,161,534 | 72,865 | 4.65 | |||||||||||||||
| Other short-term borrowings | 716,180 | 18,861 | 5.31 | 653,025 | 15,258 | 4.71 | |||||||||||||||
| FHLB and other borrowings [a] | 3,494,864 | 101,463 | 5.85 | 3,960,748 | 99,876 | 5.09 | |||||||||||||||
Total interest bearing liabilities [a] | 25,056,703 | 537,984 | 4.33 | 23,082,108 | 413,718 | 3.61 | |||||||||||||||
| Net interest spread | 562,977 | 2.66 | % | 550,491 | 2.96 | % | |||||||||||||||
| Noninterest bearing demand deposits | 6,011,720 | 6,147,916 | |||||||||||||||||||
| Other liabilities | 418,529 | 360,528 | |||||||||||||||||||
| Shareholders' equity | 2,935,247 | 2,454,641 | |||||||||||||||||||
| $ | 34,422,199 | $ | 32,045,193 | ||||||||||||||||||
| Net yield on earning assets | 3.57 | % | 3.75 | % | |||||||||||||||||
| Taxable equivalent adjustment: | |||||||||||||||||||||
| Loans | 2,117 | 734 | |||||||||||||||||||
| Investment securities held to maturity | 1,300 | 1,134 | |||||||||||||||||||
Investment securities available for sale | 3,034 | 662 | |||||||||||||||||||
| Other earning assets | 21 | 18 | |||||||||||||||||||
| Total taxable equivalent adjustment | 6,472 | 2,548 | |||||||||||||||||||
| Net interest income | $ | 556,505 | $ | 547,943 | |||||||||||||||||
[a] Excludes adjustment for market valuation. |
| Note: Includes the results of operations of TexasBanc Holding Co. which was acquired on March 24, 2006. |
| Note: Includes balance sheet data of TexasBanc Holding Co. which was acquired on March 24, 2006. |
COMPASS BANCSHARES, INC. (Unaudited) (In thousands) | ||||||||||
Six Months | ||||||||||
Ended June 30 | ||||||||||
% | ||||||||||
2007 | 2006 | Change | ||||||||
| NONINTEREST INCOME | ||||||||||
| Service charges on deposit accounts | $ | 152,692 | $ | 154,485 | (1 | ) | ||||
| Card and merchant processing fees | 58,672 | 54,380 | 8 | |||||||
| Insurance commissions | 31,134 | 33,081 | (6 | ) | ||||||
| Retail investment sales | 24,781 | 20,324 | 22 | |||||||
| Asset management fees | 19,082 | 16,156 | 18 | |||||||
Corporate and correspondent investment sales | 12,601 | 10,836 | 16 | |||||||
| Bank owned life insurance | 10,809 | 10,094 | 7 | |||||||
| Other income | 57,257 | 47,350 | 21 | |||||||
| 367,028 | 346,706 | 6 | ||||||||
| Investment securities losses, net | - | (14,889 | ) | (100 | ) | |||||
| Gain on prepayment of FHLB advances | - | 14,893 | (100 | ) | ||||||
| Total noninterest income | $ | 367,028 | $ | 346,710 | 6 | |||||
| NONINTEREST EXPENSE | ||||||||||
| Salaries and benefits | $ | 297,443 | $ | 280,319 | 6 | |||||
| Equipment expense | 46,429 | 44,133 | 5 | |||||||
| Net occupancy expense | 39,133 | 35,833 | 9 | |||||||
| Professional services | 31,107 | 30,800 | 1 | |||||||
| Marketing expense | 24,662 | 26,499 | (7 | ) | ||||||
| Communications expense | 10,343 | 11,773 | (12 | ) | ||||||
| Amortization of intangibles | 5,595 | 5,038 | 11 | |||||||
Merger and integration expense | 3,064 | 7,849 | (61 | ) | ||||||
| Other expense | 68,763 | 67,976 | 1 | |||||||
| 526,539 | 510,220 | 3 | ||||||||
| Operating lease write-down | 2,298 | - | - | |||||||
| Total noninterest expense | $ | 528,837 | $ | 510,220 | 4 | |||||
Three Months Ended | ||||||||||||||||
2007 | 2006 | |||||||||||||||
Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||
| NONINTEREST INCOME | ||||||||||||||||
| Service charges on deposit accounts | $ | 76,762 | $ | 75,930 | $ | 75,880 | $ | 81,155 | $ | 82,317 | ||||||
| Card and merchant processing fees | 30,484 | 28,188 | 27,857 | 29,065 | 28,673 | |||||||||||
| Insurance commissions | 14,555 | 16,579 | 13,698 | 14,855 | 15,477 | |||||||||||
| Retail investment sales | 12,936 | 11,845 | 9,826 | 11,188 | 10,904 | |||||||||||
| Asset management fees | 9,558 | 9,524 | 9,425 | 8,301 | 8,408 | |||||||||||
Corporate and correspondent investment sales | 5,555 | 7,046 | 5,979 | 5,984 | 5,607 | |||||||||||
| Bank owned life insurance | 5,476 | 5,333 | 5,298 | 5,246 | 5,191 | |||||||||||
| Other income | 32,898 | 24,359 | 31,546 | 23,056 | 24,840 | |||||||||||
| 188,224 | 178,804 | 179,509 | 178,850 | 181,417 | ||||||||||||
| Investment securities losses, net | - | - | - | - | (51 | ) | ||||||||||
| Gain on prepayment of FHLB advances | - | - | 6,191 | - | - | |||||||||||
| Total noninterest income | $ | 188,224 | $ | 178,804 | $ | 185,700 | $ | 178,850 | $ | 181,366 | ||||||
| NONINTEREST EXPENSE | ||||||||||||||||
| Salaries and benefits | $ | 144,716 | $ | 152,727 | $ | 144,102 | $ | 145,340 | $ | 144,309 | ||||||
| Equipment expense | 23,392 | 23,037 | 23,755 | 23,437 | 22,586 | |||||||||||
| Net occupancy expense | 19,856 | 19,277 | 18,982 | 19,457 | 18,616 | |||||||||||
| Professional services | 16,492 | 14,615 | 16,958 | 15,851 | 15,896 | |||||||||||
| Marketing expense | 12,567 | 12,095 | 11,564 | 12,816 | 14,235 | |||||||||||
| Communications expense | 5,238 | 5,105 | 5,984 | 6,752 | 6,151 | |||||||||||
| Amortization of intangibles | 2,798 | 2,797 | 3,883 | 3,456 | 3,548 | |||||||||||
Merger and integration expense | 1,029 | 2,035 | 970 | 1,840 | 5,223 | |||||||||||
| Other expense | 35,016 | 33,747 | 36,758 | 36,609 | 35,286 | |||||||||||
| 261,104 | 265,435 | 262,956 | 265,558 | 265,850 | ||||||||||||
| Operating lease write-down | 2,298 | - | 10,541 | - | - | |||||||||||
| Total noninterest expense | $ | 263,402 | $ | 265,435 | $ | 273,497 | $ | 265,558 | $ | 265,850 | ||||||
Note: Includes the results of operations of TexasBanc Holding Co. which was acquired on March 24, 2006. | ||||||||||||||||
Contacts:
Ed Bilek, Investor Relations, 205-297-3331
www.compassbank.com
