Compass Bancshares Reports Record Earnings for 2005 up 12%.

Extract

---

Compass Bancshares Reports Record Earnings for 2005 up 12%.

BIRMINGHAM, Ala. -- Compass Bancshares, Inc. (Nasdaq: CBSS):

--Earnings reach all-time high of $401.8 million

--Balanced top-line revenue growth; total revenue up 9%

--Net interest income up 9%; noninterest income increases 10%

--Focused earning asset growth continues; total loans increase 13% from year ago

--Total deposits increase 20%; noninterest bearing deposits increase 11% from year ago

--NPA ratio declines to 0.28%; NCO ratio decreases to 0.48% from 0.51% for prior year

Compass Bancshares, Inc. (Nasdaq: CBSS) today reported record earnings of $401.8 million for 2005, a 12 percent increase over the $360.2 million earned during 2004. For the same time period, earnings per share increased 11 percent to $3.18 from $2.87 in 2004. Return on average assets and return on average shareholders' equity for 2005 were 1.36 percent and 18.52 percent, respectively.

Earnings for the fourth quarter of 2005 increased 11 percent to $102.1 million compared to $92.2 million earned during the fourth quarter of 2004. Earnings per share for the fourth quarter of 2005 increased 11 percent to $0.81 from $0.73 in the prior year. Return on average assets and return on average shareholders' equity for the fourth quarter of 2005 were 1.34 percent and 18.24 percent, respectively.

On January 11, 2006, Compass restated its historical financial statements due to a technical clarification of accounting for interest rate swaps entered into in connection with certain brokered certificates of deposit and trust preferred debt transactions. The Company has re-designated the interest rate swaps associated with these transactions as fair value hedges under the "long-haul" accounting method in order to qualify them going forward for fair v...

See the full content of this document

---