##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q/ A


(Amendment No. 1)


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|          
|           |  | For the quarterly period ended
    September 30, 2005                                       
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to                                             

Commission File
No. 1-31272





(Exact name of registrant as specified in its charter)


|                         |  |                                     
|------------------------ |  | ------------------------------------
|Delaware                 |  | 63-0593897                          
|(State of Incorporation) |  | (I.R.S. Employer Identification No.)

15 South 20th Street


Birmingham, Alabama 35233


(Address of principal executive offices)


(205) 297-3000


(Registrants telephone number)


þ o


Rule 12b-2 þ o


Rule 12b-2 o þ




|                           |  |                                
|-------------------------- |  | -------------------------------
|Class                      |  | Outstanding at October 31, 2005
|                           |  |                                
|Common Stock, $2 Par Value |  | 124,541,209                    









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##### Table of Contents



COMPASS BANCSHARES, INC. AND SUBSIDIARIES


INDEX


Explanatory Note


Form 10-Q Form 10-K Form 10-Q Form 10-K Forms 10-Q Accounting for
Derivative Instruments and Hedging Activities


Form 10-K Form 10-Q.


mark-to




|                           |  |                |         |               |      |   |              |      |  |              |        |   |              |      |         |              |      |   |        |  |  |   |       | 
|-------------------------- |  | -------------- | ------- | ------------- | ---- | - | ------------ | ---- |  | ------------ | ------ | - | ------------ | ---- | ------- | ------------ | ---- | - | ------ |  |  | - | ----- | 
|                           |  |                |         | Nine Months   |      |   |              |      |  |              |        |   |             
|                           |  |                |         | Ended         |      |   | Year Ended   |      |  | Year Ended   |        |   | Year Ended   |      |         | Year Ended   |     
|                           |  |                |         | September 30, |      |   | December 31, |      |  | December 31, |        |   | December 31, |      |         | December 31, |     
|                           |  | Total          |         |               | 2005 |   |              | 2004 |  |              | 2003   |   |              | 2002 |         |              | 2001 |  
|                           |  |                |         |               |      |   |              |      |  |              |        |   |              |      |         |              |      |  
|                           |  | (In thousands) |        
|Interest expense           |  | $              | 94,665  |               |      | $ | 11,248       |      |  | $            | 26,503 |   |              | $    | 30,400  |              |      | $ | 23,146 |  |  | $ | 3,368 | 
|Noninterest income         |  |                | 101,705 |               |      |   | 669          |      |  |              | 11,053 |   |              |      | 9,320   |              |      |   | 71,006 |  |  |   | 9,657 | 
|Provision for income taxes |  |                | 2,514   |               |      |   | (4,013       | )    |  |              | (5,851 | ) |              |      | (7,890  | )            |      |   | 17,914 |  |  |   | 2,354 | 
|                           |  |                |         |               |      |   |              |      |  |              |        |   |              |      |         |              |      |  
|Net income                 |  | $              | 4,526   |               |      | $ | (6,566       | )    |  | $            | (9,599 | ) |              | $    | (13,190 | )            |      | $ | 29,946 |  |  | $ | 3,935 | 
|                           |  |                |         |               |      |   |              |      |  |              |        |   |              |      |         |              |      |  
|Diluted earnings per share |  | $              | 0.02    |               |      | $ | (0.05        | )    |  | $            | (0.08  | ) |              | $    | (0.11   | )            |      | $ | 0.23   |  |  | $ | 0.03  | 

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|                           |  |                |        |                       |      |   |          |      |  |               |       |  |  |   |        |  
|-------------------------- |  | -------------- | ------ | --------------------- | ---- | - | -------- | ---- |  | ------------- | ----- |  |  | - | ------ | -
|                           |  |                |        | For the Quarter Ended |     
|                           |  |                |        |                       |     
|                           |  |                |        | March 31,             |      |   | June 30, |      |  | September 30, |      
|                           |  | Total          |        |                       | 2005 |   |          | 2005 |  |               | 2005  | 
|                           |  |                |        |                       |      |   |          |      |  |               |       | 
|                           |  | (In thousands) |       
|Interest expense           |  | $              | 11,248 |                       |      | $ | 4,703    |      |  | $             | 3,716 |  |  | $ | 2,829  |  
|Noninterest income         |  |                | 669    |                       |      |   | (4,596   | )    |  |               | 9,414 |  |  |   | (4,149 | )
|Provision for income taxes |  |                | (4,013 | )                     |      |   | (3,527   | )    |  |               | 2,161 |  |  |   | (2,647 | )
|                           |  |                |        |                       |      |   |          |      |  |               |       | 
|Net income                 |  | $              | (6,566 | )                     |      | $ | (5,772   | )    |  | $             | 3,537 |  |  | $ | (4,331 | )
|                           |  |                |        |                       |      |   |          |      |  |               |       | 
|Diluted earnings per share |  | $              | (0.05  | )                     |      | $ | (0.04    | )    |  | $             | 0.02  |  |  | $ | (0.03  | )

|                           |  |                |        |                       |      |   |          |      |  |               |         |   |              |      |        |  |  |   |        |  
|-------------------------- |  | -------------- | ------ | --------------------- | ---- | - | -------- | ---- |  | ------------- | ------- | - | ------------ | ---- | ------ |  |  | - | ------ | -
|                           |  |                |        | For the Quarter Ended |     
|                           |  |                |        |                       |     
|                           |  |                |        | March 31,             |      |   | June 30, |      |  | September 30, |         |   | December 31, |     
|                           |  | Total          |        |                       | 2004 |   |          | 2004 |  |               | 2004    |   |              | 2004 |       
|                           |  |                |        |                       |      |   |          |      |  |               |         |   |              |      |       
|                           |  | (In thousands) |       
|Interest expense           |  | $              | 26,503 |                       |      | $ | 7,115    |      |  | $             | 7,161   |   |              | $    | 6,646  |  |  | $ | 5,581  |  
|Noninterest income         |  |                | 11,053 |                       |      |   | 12,554   |      |  |               | (12,360 | ) |              |      | 14,873 |  |  |   | (4,014 | )
|Provision for income taxes |  |                | (5,851 | )                     |      |   | 2,060    |      |  |               | (7,393  | ) |              |      | 3,116  |  |  |   | (3,634 | )
|                           |  |                |        |                       |      |   |          |      |  |               |         |   |              |      |       
|Net income                 |  | $              | (9,599 | )                     |      | $ | 3,379    |      |  | $             | (12,128 | ) |              | $    | 5,111  |  |  | $ | (5,961 | )
|                           |  |                |        |                       |      |   |          |      |  |               |         |   |              |      |       
|Diluted earnings per share |  | $              | (0.08  | )                     |      | $ | 0.03     |      |  | $             | (0.10   | ) |              | $    | 0.04   |  |  | $ | (0.05  | )

|                           |  |                |         |                       |      |   |          |      |  |               |        |  |              |      |        |   |  |   |        |  
|-------------------------- |  | -------------- | ------- | --------------------- | ---- | - | -------- | ---- |  | ------------- | ------ |  | ------------ | ---- | ------ | - |  | - | ------ | -
|                           |  |                |         | For the Quarter Ended |     
|                           |  |                |         |                       |     
|                           |  |                |         | March 31,             |      |   | June 30, |      |  | September 30, |        |  | December 31, |     
|                           |  | Total          |         |                       | 2003 |   |          | 2003 |  |               | 2003   |  |              | 2003 |       
|                           |  |                |         |                       |      |   |          |      |  |               |        |  |              |      |       
|                           |  | (In thousands) |        
|Interest expense           |  | $              | 30,400  |                       |      | $ | 7,868    |      |  | $             | 8,202  |  |              | $    | 7,288  |   |  | $ | 7,042  |  
|Noninterest income         |  |                | 9,320   |                       |      |   | 1,924    |      |  |               | 13,978 |  |              |      | (5,326 | ) |  |   | (1,256 | )
|Provision for income taxes |  |                | (7,890  | )                     |      |   | (2,225   | )    |  |               | 2,162  |  |              |      | (4,721 | ) |  |   | (3,106 | )
|                           |  |                |         |                       |      |   |          |      |  |               |        |  |              |      |       
|Net income                 |  | $              | (13,190 | )                     |      | $ | (3,719   | )    |  | $             | 3,614  |  |              | $    | (7,893 | ) |  | $ | (5,192 | )
|                           |  |                |         |                       |      |   |          |      |  |               |        |  |              |      |       
|Diluted earnings per share |  | $              | (0.11   | )                     |      | $ | (0.03    | )    |  | $             | 0.03   |  |              | $    | (0.06  | ) |  | $ | (0.05  | )



|                                                    |  |                                       |         |  |                |   |         |               |  |   |          |    |  |            |         |  |          |   |         |  |  |   |         |  
|--------------------------------------------------- |  | ------------------------------------- | ------- |  | -------------- | - | ------- | ------------- |  | - | -------- | -- |  | ---------- | ------- |  | -------- | - | ------- |  |  | - | ------- | -
|                                                    |  | 2005                                  |        
|                                                    |  |                                       |        
|                                                    |  | First Quarter                         |         |  | Second Quarter |   |         | Third Quarter | 
|                                                    |  |                                       |         |  |                |   |         |               | 
|                                                    |  | As                                    |         |  |                |   | As      |               |  |   |          | As |  |            |        
|                                                    |  | Previously                            |         |  | As             |   |         | Previously    |  |   | As       |    |  | Previously |         |  | As       |  
|                                                    |  | Reported                              |         |  | Restated       |   |         | Reported      |  |   | Restated |    |  | Reported   |         |  | Restated |  
|                                                    |  |                                       |         |  |                |   |         |               |  |   |          |    |  |            |         |  |          |  
|                                                    |  | (In thousands, except per share data) |        
|Interest on deposits                                |  | $                                     | 48,651  |  |                | $ | 49,462  |               |  | $ | 58,810   |    |  | $          | 59,097  |  |          | $ | 68,848  |  |  | $ | 68,634  |  
|Interest on FHLB and other borrowings               |  |                                       | 36,301  |  |                |   | 40,193  |               |  |   | 40,704   |    |  |            | 44,133  |  |          |   | 41,899  |  |  |   | 44,942  |  
|Total interest expense                              |  |                                       | 111,676 |  |                |   | 116,379 |               |  |   | 129,986  |    |  |            | 133,702 |  |          |   | 149,359 |  |  |   | 152,188 |  
|Net interest income                                 |  |                                       | 236,276 |  |                |   | 231,573 |               |  |   | 240,186  |    |  |            | 236,470 |  |          |   | 249,940 |  |  |   | 247,111 |  
|Net interest income after provision for loan losses |  |                                       | 216,003 |  |                |   | 211,300 |               |  |   | 212,386  |    |  |            | 208,670 |  |          |   | 215,745 |  |  |   | 212,916 |  
|Trading gains (losses) on economic hedges           |  |                                       |        |  |                |   | (4,596  | )             |  |   |         |    |  |            | 9,414   |  |          |   |        |  |  |   | (4,149  | )
|Total noninterest income                            |  |                                       | 154,561 |  |                |   | 149,965 |               |  |   | 166,017  |    |  |            | 175,431 |  |          |   | 170,645 |  |  |   | 166,496 |  
|Net income before income tax expense                |  |                                       | 148,692 |  |                |   | 139,393 |               |  |   | 155,808  |    |  |            | 161,506 |  |          |   | 158,994 |  |  |   | 152,016 |  

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|                   |                  |                                       |        |      |                |  |        |               |  |  |          |      |  |            |         |      |          |  |         |      |  |  |         |      | 
|------------------ | ---------------- | ------------------------------------- | ------ | ---- | -------------- |  | ------ | ------------- |  |  | -------- | ---- |  | ---------- | ------- | ---- | -------- |  | ------- | ---- |  |  | ------- | ---- | 
|                   |                  | 2005                                  |       
|                   |                  |                                       |       
|                   |                  | First Quarter                         |        |      | Second Quarter |  |        | Third Quarter | 
|                   |                  |                                       |        |      |                |  |        |               | 
|                   |                  | As                                    |        |      |                |  | As     |               |  |  |          | As   |  |            |        
|                   |                  | Previously                            |        |      | As             |  |        | Previously    |  |  | As       |      |  | Previously |         |      | As       | 
|                   |                  | Reported                              |        |      | Restated       |  |        | Reported      |  |  | Restated |      |  | Reported   |         |      | Restated | 
|                   |                  |                                       |        |      |                |  |        |               |  |  |          |      |  |            |         |      |          | 
|                   |                  | (In thousands, except per share data) |       
|Income tax expense |                  |                                       | 49,936 |      |                |  | 46,409 |               |  |  | 53,357   |      |  |            | 55,518  |      |          |  | 53,943  |      |  |  | 51,296  |     
|Net income         |                  |                                       | 98,756 |      |                |  | 92,984 |               |  |  | 102,451  |      |  |            | 105,988 |      |          |  | 105,051 |      |  |  | 100,720 |     
|Per common share:  |                  |                                       |        |      |                |  |        |               |  |  |          |      |  |            |         |      |          |  |         |      |  |  |         |     
|                   | Basic earnings   |                                       | $      | 0.80 |                |  | $      | 0.75          |  |  | $        | 0.83 |  |            | $       | 0.86 |          |  | $       | 0.85 |  |  | $       | 0.81 | 
|                   | Diluted earnings |                                       | $      | 0.78 |                |  | $      | 0.74          |  |  | $        | 0.81 |  |            | $       | 0.83 |          |  | $       | 0.83 |  |  | $       | 0.80 | 

|                                                    |                  |                                       |         |      |                |   |         |               |  |   |                |      |  |            |         |      |          |   |         |            |  |   |          |      |  |   |         |      |  |   |         |      | 
|--------------------------------------------------- | ---------------- | ------------------------------------- | ------- | ---- | -------------- | - | ------- | ------------- |  | - | -------------- | ---- |  | ---------- | ------- | ---- | -------- | - | ------- | ---------- |  | - | -------- | ---- |  | - | ------- | ---- |  | - | ------- | ---- | 
|                                                    |                  | 2004                                  |        
|                                                    |                  |                                       |        
|                                                    |                  | First Quarter                         |         |      | Second Quarter |   |         | Third Quarter |  |   | Fourth Quarter |     
|                                                    |                  |                                       |         |      |                |   |         |               |  |   |                |     
|                                                    |                  | As                                    |         |      |                |   | As      |               |  |   |                | As   |  |            |         |      | As       |   |         |           
|                                                    |                  | Previously                            |         |      | As             |   |         | Previously    |  |   | As             |      |  | Previously |         |      | As       |   |         | Previously |  |   | As       |     
|                                                    |                  | Reported                              |         |      | Restated       |   |         | Reported      |  |   | Restated       |      |  | Reported   |         |      | Restated |   |         | Reported   |  |   | Restated |     
|                                                    |                  |                                       |         |      |                |   |         |               |  |   |                |      |  |            |         |      |          |   |         |            |  |   |          |     
|                                                    |                  | (In thousands, except per share data) |        
|Interest on deposits                                |                  | $                                     | 36,035  |      |                | $ | 38,138  |               |  | $ | 35,925         |      |  | $          | 38,047  |      |          | $ | 37,861  |            |  | $ | 39,873   |      |  | $ | 42,429  |      |  | $ | 43,720  |     
|Interest on FHLB and other borrowings               |                  |                                       | 41,469  |      |                |   | 46,481  |               |  |   | 40,245         |      |  |            | 45,284  |      |          |   | 36,184  |            |  |   | 40,818   |      |  |   | 32,620  |      |  |   | 36,910  |     
|Total interest expense                              |                  |                                       | 87,818  |      |                |   | 94,933  |               |  |   | 86,269         |      |  |            | 93,430  |      |          |   | 89,878  |            |  |   | 96,524   |      |  |   | 97,733  |      |  |   | 103,314 |     
|Net interest income                                 |                  |                                       | 222,861 |      |                |   | 215,746 |               |  |   | 226,739        |      |  |            | 219,578 |      |          |   | 226,531 |            |  |   | 219,885  |      |  |   | 235,697 |      |  |   | 230,116 |     
|Net interest income after provision for loan losses |                  |                                       | 198,516 |      |                |   | 191,401 |               |  |   | 198,561        |      |  |            | 191,400 |      |          |   | 200,914 |            |  |   | 194,268  |      |  |   | 208,179 |      |  |   | 202,598 |     
|Trading gain (losses) on economic hedges            |                  |                                       |        |      |                |   | 12,554  |               |  |   |               |      |  |            | (12,360 | )    |          |   |        |            |  |   | 14,873   |      |  |   |        |      |  |   | (4,014  | )   
|Total noninterest income                            |                  |                                       | 141,911 |      |                |   | 154,465 |               |  |   | 150,019        |      |  |            | 137,659 |      |          |   | 172,314 |            |  |   | 187,187  |      |  |   | 153,346 |      |  |   | 149,332 |     
|Net income before income tax expense                |                  |                                       | 130,280 |      |                |   | 135,719 |               |  |   | 137,399        |      |  |            | 117,878 |      |          |   | 140,727 |            |  |   | 148,954  |      |  |   | 146,876 |      |  |   | 137,281 |     
|Income tax expense                                  |                  |                                       | 44,033  |      |                |   | 46,093  |               |  |   | 45,654         |      |  |            | 38,261  |      |          |   | 47,125  |            |  |   | 50,241   |      |  |   | 48,686  |      |  |   | 45,052  |     
|Net income                                          |                  |                                       | 86,247  |      |                |   | 89,626  |               |  |   | 91,745         |      |  |            | 79,617  |      |          |   | 93,602  |            |  |   | 98,713   |      |  |   | 98,190  |      |  |   | 92,229  |     
|Per common share:                                   |                  |                                       |         |      |                |   |         |               |  |   |                |      |  |            |         |      |          |   |         |            |  |   |          |      |  |   |         |      |  |   |         |     
|                                                    | Basic earnings   |                                       |         | 0.71 |                |   |         | 0.73          |  |   |                | 0.75 |  |            |         | 0.66 |          |   |         | 0.76       |  |   |          | 0.80 |  |   |         | 0.80 |  |   |         | 0.76 | 
|                                                    | Diluted earnings |                                       |         | 0.69 |                |   |         | 0.72          |  |   |                | 0.73 |  |            |         | 0.63 |          |   |         | 0.75       |  |   |          | 0.79 |  |   |         | 0.78 |  |   |         | 0.73 | 



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##### 










|                                             |  |                                                                                                                          |  |      |    | 
|-------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------ |  | ---- | -- | 
|                                             |  |                                                                                                                          |  | Page
|                                             |  |                                                                                                                          |  |     
|PART I. FINANCIAL INFORMATION               
|Item 1                                       |  | Financial Statements (Unaudited)                                                                                         |  |      |    | 
|                                             |  | Consolidated Balance Sheets as of September
    30, 2005 and December 31, 2004                                           |  |      | 5  | 
|                                             |  | Consolidated Statements of Income for the
    Three and Nine Months Ended September 30, 2005 and 2004                    |  |      | 6  | 
|                                             |  | Consolidated Statements of Changes In
    Shareholders Equity for the Nine Months Ended September
    30, 2005 and 2004 |  |      | 7  | 
|                                             |  | Consolidated Statements of Cash Flows for
    the Nine Months Ended September 30, 2005 and 2004                          |  |      | 8  | 
|                                             |  | Notes to Consolidated Financial Statements
    (Unaudited)                                                               |  |      | 10 | 
|Item 2                                       |  | Managements Discussion and Analysis
    of Results of Operations and Financial Condition                                |  |      | 31 | 
|Item 4                                       |  | Controls and Procedures                                                                                                  |  |      | 42 | 
|                                            
|PART II. OTHER INFORMATION                  
|Item 1                                       |  | Legal Proceedings                                                                                                        |  |      | 44 | 
|Item 2                                       |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                                          |  |      | 44 | 
|Item 6                                       |  | Exhibits                                                                                                                 |  |      | 44 | 
|EX-31.A SECTION 302 CERTIFICATION OF THE CEO
|EX-31.B SECTION 302 CERTIFICATION OF THE CFO
|EX-32.A SECTION 906 CERTIFICATION OF THE CEO
|EX-32.B SECTION 906 CERTIFICATION OF THE CFO



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PART I. FINANCIAL INFORMATION





Item 1  Financial Statements


COMPASS BANCSHARES, INC. AND SUBSIDIARIES





Consolidated Balance Sheets


(in Thousands, Restated)


(Unaudited)


|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |            |            |            |            |            | 
|-------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------------------ | ---------- | ------------ | ---------- | ---------- | ---------- | ---------- | ---------- | 
|                                                                                                                     |                                                                                     | September 30,                                                          |                                            |            | December 31, |           
|                                                                                                                     |                                                                                     | 2005                                                                   |                                            |            | 2004         |           
|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |           
|ASSETS                                                                                                              
|Cash and due from banks                                                                                              |                                                                                     | $                                                                      | 774,812                                    |            |              | $          | 585,679    |           
|Federal funds sold and securities purchased under agreements to
    resell                                           |                                                                                     |                                                                        | 36,225                                     |            |              |            | 46,948     |           
|Trading account assets                                                                                               |                                                                                     |                                                                        | 76,070                                     |            |              |            | 77,817     |           
|Investment securities available for sale                                                                             |                                                                                     |                                                                        | 4,514,493                                  |            |              |            | 4,398,184  |           
|Investment securities held to maturity (fair value of $2,341,796
    and $2,768,334 for 2005 and 2004, respectively) |                                                                                     |                                                                        | 2,359,824                                  |            |              |            | 2,767,099  |           
|Loans                                                                                                                |                                                                                     |                                                                        | 20,841,790                                 |            |              |            | 18,856,922 |           
|Allowance for loan losses                                                                                            |                                                                                     |                                                                        | (260,512                                   | )          |              |            | (258,339   | )         
|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |           
|                                                                                                                     | Net loans                                                                           |                                                                        |                                            | 20,581,278 |              |            |            | 18,598,583 |           
|Premises and equipment, net                                                                                          |                                                                                     |                                                                        | 542,613                                    |            |              |            | 537,466    |           
|Bank owned life insurance                                                                                            |                                                                                     |                                                                        | 436,611                                    |            |              |            | 423,942    |           
|Goodwill                                                                                                             |                                                                                     |                                                                        | 316,240                                    |            |              |            | 302,619    |           
|Other assets                                                                                                         |                                                                                     |                                                                        | 495,669                                    |            |              |            | 443,579    |           
|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |           
|                                                                                                                     |                                                                                     |                                                                        | Total assets                               |            | $            | 30,133,835 |            |            | $          | 28,181,916 | 
|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |           
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                
|Deposits:                                                                                                            |                                                                                     |                                                                        |                                            |            |              |            |            |           
|                                                                                                                     | Noninterest bearing                                                                 |                                                                        | $                                          | 6,085,377  |              |            | $          | 5,476,140  |           
|                                                                                                                     | Interest bearing                                                                    |                                                                        |                                            | 12,748,849 |              |            |            | 11,566,592 |           
|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |           
|                                                                                                                     |                                                                                     | Total deposits                                                         |                                            |            | 18,834,226   |            |            |            | 17,042,732 |           
|Federal funds purchased and securities sold under agreements to
    repurchase                                       |                                                                                     |                                                                        | 4,405,198                                  |            |              |            | 4,532,004  |           
|Other short-term borrowings                                                                                          |                                                                                     |                                                                        | 195,076                                    |            |              |            | 175,771    |           
|FHLB and other borrowings                                                                                            |                                                                                     |                                                                        | 4,119,969                                  |            |              |            | 4,119,771  |           
|Accrued expenses and other liabilities                                                                               |                                                                                     |                                                                        | 344,789                                    |            |              |            | 255,293    |           
|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |           
|                                                                                                                     |                                                                                     |                                                                        | Total liabilities                          |            |              | 27,899,258 |            |            |            | 26,125,571 | 
|Shareholders equity:                                                                                                |                                                                                     |                                                                        |                                            |            |              |            |            |           
|                                                                                                                     | Preferred stock (25,000,000 shares authorized;
    issued  none)                   |                                                                        |                                            |           |              |            |            |           |           
|                                                                                                                     | Common stock of $2 par value:                                                       |                                                                        |                                            |            |              |            |            |            |           
|                                                                                                                     |                                                                                     | Authorized  300,000,000 shares;                                       |                                            |            |              |            |            |            |            |           
|                                                                                                                     |                                                                                     | Issued  133,783,248 shares in 2005 and 132,903,225
    shares in 2004 |                                            |            | 267,566      |            |            |            | 265,806    |           
|                                                                                                                     | Treasury stock, at cost (9,273,328 shares in 2005 and 9,639,194
    shares in 2004) |                                                                        |                                            | (320,698   | )            |            |            | (333,351   | )         
|                                                                                                                     | Surplus                                                                             |                                                                        |                                            | 290,934    |              |            |            | 264,400    |           
|                                                                                                                     | Loans to finance stock purchases                                                    |                                                                        |                                            | (1,249     | )            |            |            | (1,056     | )         
|                                                                                                                     | Unearned restricted stock                                                           |                                                                        |                                            | (12,327    | )            |            |            | (10,624    | )         
|                                                                                                                     | Accumulated other comprehensive loss                                                |                                                                        |                                            | (52,445    | )            |            |            | (23,376    | )         
|                                                                                                                     | Retained earnings                                                                   |                                                                        |                                            | 2,062,796  |              |            |            | 1,894,546  |           
|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |           
|                                                                                                                     |                                                                                     |                                                                        | Total shareholders equity                 |            |              | 2,234,577  |            |            |            | 2,056,345  | 
|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |           
|                                                                                                                     |                                                                                     |                                                                        | Total liabilities and shareholders equity |            | $            | 30,133,835 |            |            | $          | 28,181,916 | 
|                                                                                                                     |                                                                                     |                                                                        |                                            |            |              |           



5



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##### Table of Contents






Consolidated Statements of Income


(In Thousands, Except Per Share Data, Restated)


(Unaudited)


|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |         |           |         |         |         |         |         | 
|------------------------------------------- | ------------------------------------------------------------------------------------------ | --------------------------------------------------- | ------------------------------------ | ------- | ----------------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | --------- | ------- | ------- | ------- | ------- | ------- | 
|                                            |                                                                                            | Three Months Ended                                  |                                      |         | Nine Months Ended |        
|                                            |                                                                                            | September 30,                                       |                                      |         | September 30,     |        
|                                            |                                                                                            |                                                     |                                      |         |                   |        
|                                            |                                                                                            | 2005                                                |                                      |         | 2004              |         |         | 2005    |         |         | 2004    |        
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|Interest income:                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |         |           |         |         |        
|                                            | Interest and fees on loans                                                                 |                                                     | $                                    | 321,087 |                   |         | $       | 238,392 |         |         | $       | 884,110 |           |         | $       | 693,530 |        
|                                            | Interest on investment securities available for sale                                       |                                                     |                                      | 48,049  |                   |         |         | 42,914  |         |         |         | 139,911 |           |         |         | 137,820 |        
|                                            | Interest on investment securities held to maturity                                         |                                                     |                                      | 29,550  |                   |         |         | 34,709  |         |         |         | 91,805  |           |         |         | 107,780 |        
|                                            | Interest on federal funds sold and securities purchased under
    agreements to resell     |                                                     |                                      | 391     |                   |         |         | 283     |         |         |         | 1,020   |           |         |         | 599     |        
|                                            | Interest on trading account assets                                                         |                                                     |                                      | 222     |                   |         |         | 111     |         |         |         | 577     |           |         |         | 367     |        
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|                                            |                                                                                            | Total interest income                               |                                      |         | 399,299           |         |         |         | 316,409 |         |         |         | 1,117,423 |         |         |         | 940,096 |        
|Interest expense:                           |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |         |           |         |         |        
|                                            | Interest on deposits                                                                       |                                                     |                                      | 68,634  |                   |         |         | 39,873  |         |         |         | 177,193 |           |         |         | 116,058 |        
|                                            | Interest on federal funds purchased and securities sold under
    agreements to repurchase |                                                     |                                      | 37,194  |                   |         |         | 15,438  |         |         |         | 92,886  |           |         |         | 35,458  |        
|                                            | Interest on other short-term borrowings                                                    |                                                     |                                      | 1,418   |                   |         |         | 395     |         |         |         | 2,922   |           |         |         | 788     |        
|                                            | Interest on FHLB and other borrowings                                                      |                                                     |                                      | 44,942  |                   |         |         | 40,818  |         |         |         | 129,268 |           |         |         | 132,583 |        
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|                                            |                                                                                            | Total interest expense                              |                                      |         | 152,188           |         |         |         | 96,524  |         |         |         | 402,269   |         |         |         | 284,887 |        
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|                                            |                                                                                            | Net interest income                                 |                                      |         | 247,111           |         |         |         | 219,885 |         |         |         | 715,154   |         |         |         | 655,209 |        
|Provision for loan losses                   |                                                                                            |                                                     | 34,195                               |         |                   |         | 25,617  |         |         |         | 82,268  |         |           |         | 78,140  |        
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|                                            |                                                                                            | Net interest income after provision for loan losses |                                      |         | 212,916           |         |         |         | 194,268 |         |         |         | 632,886   |         |         |         | 577,069 |        
|Noninterest income:                         |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |         |           |         |         |        
|                                            | Service charges on deposit accounts                                                        |                                                     |                                      | 78,448  |                   |         |         | 73,401  |         |         |         | 220,024 |           |         |         | 210,723 |        
|                                            | Card and merchant processing fees                                                          |                                                     |                                      | 24,496  |                   |         |         | 19,554  |         |         |         | 70,100  |           |         |         | 55,139  |        
|                                            | Insurance commissions                                                                      |                                                     |                                      | 13,888  |                   |         |         | 11,787  |         |         |         | 45,182  |           |         |         | 39,180  |        
|                                            | Retail investment sales                                                                    |                                                     |                                      | 8,748   |                   |         |         | 8,501   |         |         |         | 25,977  |           |         |         | 24,151  |        
|                                            | Asset management fees                                                                      |                                                     |                                      | 7,386   |                   |         |         | 5,479   |         |         |         | 21,093  |           |         |         | 16,898  |        
|                                            | Corporate and correspondent investment sales                                               |                                                     |                                      | 7,037   |                   |         |         | 4,347   |         |         |         | 16,391  |           |         |         | 15,220  |        
|                                            | Bank owned life insurance                                                                  |                                                     |                                      | 4,396   |                   |         |         | 4,224   |         |         |         | 12,852  |           |         |         | 12,427  |        
|                                            | Investment securities gains, net                                                           |                                                     |                                      |        |                   |         |         | 25,129  |         |         |         | 79      |           |         |         | 27,336  |        
|                                            | Gain on sale of business                                                                   |                                                     |                                      |        |                   |         |         |        |         |         |         | 4,791   |           |         |         |        |        
|                                            | Trading gains (losses) on economic hedges                                                  |                                                     |                                      | (4,149  | )                 |         |         | 14,873  |         |         |         | 669     |           |         |         | 15,067  |        
|                                            | Other                                                                                      |                                                     |                                      | 26,246  |                   |         |         | 19,892  |         |         |         | 74,734  |           |         |         | 63,170  |        
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|                                            |                                                                                            |                                                     | Total noninterest income             |         |                   | 166,496 |         |         |         | 187,187 |         |         |           | 491,892 |         |         |         | 479,311 | 
|Noninterest expense:                        |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |         |           |         |         |        
|                                            | Salaries, benefits and commissions                                                         |                                                     |                                      | 122,979 |                   |         |         | 111,061 |         |         |         | 363,085 |           |         |         | 340,528 |        
|                                            | Equipment                                                                                  |                                                     |                                      | 21,048  |                   |         |         | 19,301  |         |         |         | 61,277  |           |         |         | 56,602  |        
|                                            | Net occupancy                                                                              |                                                     |                                      | 17,036  |                   |         |         | 16,377  |         |         |         | 50,521  |           |         |         | 49,623  |        
|                                            | Professional services                                                                      |                                                     |                                      | 15,154  |                   |         |         | 13,407  |         |         |         | 44,388  |           |         |         | 40,154  |        
|                                            | Marketing                                                                                  |                                                     |                                      | 10,505  |                   |         |         | 9,749   |         |         |         | 33,866  |           |         |         | 28,885  |        
|                                            | Communications                                                                             |                                                     |                                      | 5,400   |                   |         |         | 5,246   |         |         |         | 16,323  |           |         |         | 16,607  |        
|                                            | Amortization of intangibles                                                                |                                                     |                                      | 1,541   |                   |         |         | 1,621   |         |         |         | 4,656   |           |         |         | 4,871   |        
|                                            | Merger and integration                                                                     |                                                     |                                      | 454     |                   |         |         | 233     |         |         |         | 923     |           |         |         | 778     |        
|                                            | Loss on prepayment of FHLB advances                                                        |                                                     |                                      |        |                   |         |         | 25,136  |         |         |         |        |           |         |         | 25,136  |        
|                                            | Other                                                                                      |                                                     |                                      | 33,279  |                   |         |         | 30,370  |         |         |         | 96,824  |           |         |         | 90,645  |        
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|                                            |                                                                                            |                                                     | Total noninterest expense            |         |                   | 227,396 |         |         |         | 232,501 |         |         |           | 671,863 |         |         |         | 653,829 | 
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|                                            |                                                                                            |                                                     | Net income before income tax expense |         |                   | 152,016 |         |         |         | 148,954 |         |         |           | 452,915 |         |         |         | 402,551 | 
|Income tax expense                          |                                                                                            |                                                     | 51,296                               |         |                   |         | 50,241  |         |         |         | 153,223 |         |           |         | 134,595 |        
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|                                            |                                                                                            |                                                     | Net income                           |         | $                 | 100,720 |         |         | $       | 98,713  |         |         | $         | 299,692 |         |         | $       | 267,956 | 
|                                            |                                                                                            |                                                     |                                      |         |                   |         |         |         |         |         |         |        
|Basic earnings per share                    |                                                                                            | $                                                   | 0.81                                 |         |                   | $       | 0.80    |         |         | $       | 2.42    |         |           | $       | 2.19    |        
|Basic weighted average shares outstanding   |                                                                                            |                                                     | 123,947                              |         |                   |         | 122,320 |         |         |         | 123,619 |         |           |         | 122,153 |        
|Diluted earnings per share                  |                                                                                            | $                                                   | 0.80                                 |         |                   | $       | 0.79    |         |         | $       | 2.37    |         |           | $       | 2.14    |        
|Diluted weighted average shares outstanding |                                                                                            |                                                     | 126,877                              |         |                   |         | 125,557 |         |         |         | 126,487 |         |           |         | 125,218 |        
|Dividends per share                         |                                                                                            | $                                                   | 0.3500                               |         |                   | $       | 0.3125  |         |         | $       | 1.0500  |         |           | $       | 0.9375  |        



6



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##### Table of Contents



COMPASS BANCSHARES, INC. AND SUBSIDIARIES





Consolidated Statements of Changes In Shareholders
Equity


For the Nine Months Ended September 30, 2005 and 2004


(In Thousands, Restated)


(Unaudited)


|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |        |   |   |           |          |   |  |   |         |  
|--------------------------- | ----------------------------------------------------------------------------------------- | ------ | ------- | ----- | -------- | - | -------- | ------- | - | ------------- | -------- | ------ | ------ | ------ | --------- | -------- | ----- | ------------- | ------- | ------- | ------------- | - | ------- | ------ | - | - | --------- | -------- | - |  | - | ------- | -
|                            |                                                                                           |        |         |       |          |   |          |         |   | Accumulated   |          |        |        |        |           |          |      
|                            |                                                                                           |        |         |       |          |   |          |         |   | Comprehensive |          |        |        |        | Total     |          |       |              
|                            |                                                                                           | Common |         |       | Treasury |   |          |         |   | Retained      |          |        | Income |        |           |          |       | Shareholders |         |         | Comprehensive |  
|                            |                                                                                           | Stock  |         |       | Stock    |   |          | Surplus |   |               | Earnings |        |        | (Loss) |           |          | Other |               |         | Equity  |               |   | Income  |       
|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |       
|Balance, December 31, 2003  |                                                                                           | $      | 263,138 |       |          | $ | (317,669 | )       |   | $             | 227,404  |        |        | $      | 1,689,689 |          |       | $             | 37,306  |         |               | $ | (7,294  | )      |   | $ | 1,892,574 |          |   |  |   |        
|                            | Net income                                                                                |        |         |      |          |   |          |        |   |               |          |       |        |        |           | 267,956  |       |               |         |        |               |   |         |       |   |   |           | 267,956  |   |  | $ | 267,956 |  
|                            | Change in unrealized net losses on securities available for
    sale, net of tax          |        |         |      |          |   |          |        |   |               |          |       |        |        |           |         |       |               |         | (37,056 | )             |   |         |       |   |   |           | (37,056  | ) |  |   | (37,056 | )
|                            | Change in accumulated net gains/losses on cash-flow hedging
    instruments, net of tax   |        |         |      |          |   |          |        |   |               |          |       |        |        |           |         |       |               |         | (4,281  | )             |   |         |       |   |   |           | (4,281   | ) |  |   | (4,281  | )
|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |       
|                            | Comprehensive income                                                                      |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |        |   |   |           |          |   |  | $ | 226,619 |  
|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |       
|                            | Common dividends declared ($0.9375 per share)                                             |        |         |      |          |   |          |        |   |               |          |       |        |        |           | (115,528 | )     |               |         |        |               |   |         |       |   |   |           | (115,528 | ) |  |   |         |  
|                            | Exercise of stock options and other issuances                                             |        |         | 2,060 |          |   |          |        |   |               |          | 21,968 |        |        |           | (1,312   | )     |               |         |        |               |   |         |       |   |   |           | 22,716   |   |  |   |         |  
|                            | Issuance of restricted stock, net of cancellations                                        |        |         | 262   |          |   |          |        |   |               |          | 6,720  |        |        |           |         |       |               |         |        |               |   |         | (7,651 | ) |   |           | (669     | ) |  |   |         |  
|                            | Advances on loans to finance stock purchases, net of repayments                           |        |         |      |          |   |          |        |   |               |          |       |        |        |           |         |       |               |         |        |               |   |         | (250   | ) |   |           | (250     | ) |  |   |         |  
|                            | Issuance of treasury stock for acquisitions, stock options and
    employee benefit plans |        |         |      |          |   |          | 7,100   |   |               |          | 913    |        |        |           |         |       |               |         |        |               |   |         |       |   |   |           | 8,013    |   |  |   |         |  
|                            | Amortization of restricted stock                                                          |        |         |      |          |   |          |        |   |               |          |       |        |        |           |         |       |               |         |        |               |   |         | 3,059  |   |   |           | 3,059    |   |  |   |         |  
|                            | Purchase of treasury stock                                                                |        |         |      |          |   |          | (33,743 | ) |               |          |       |        |        |           |         |       |               |         |        |               |   |         |       |   |   |           | (33,743  | ) |  |   |         |  
|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |       
|Balance, September 30, 2004 |                                                                                           | $      | 265,460 |       |          | $ | (344,312 | )       |   | $             | 257,005  |        |        | $      | 1,840,805 |          |       | $             | (4,031  | )       |               | $ | (12,136 | )      |   | $ | 2,002,791 |          |   |  |   |        
|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |       
|Balance, December 31, 2004  |                                                                                           | $      | 265,806 |       |          | $ | (333,351 | )       |   | $             | 264,400  |        |        | $      | 1,894,546 |          |       | $             | (23,376 | )       |               | $ | (11,680 | )      |   | $ | 2,056,345 |          |   |  |   |        
|                            | Net Income                                                                                |        |         |      |          |   |          |        |   |               |          |       |        |        |           | 299,692  |       |               |         |        |               |   |         |       |   |   |           | 299,692  |   |  | $ | 299,692 |  
|                            | Change in unrealized net losses on securities available for
    sale, net of tax          |        |         |      |          |   |          |        |   |               |          |       |        |        |           |         |       |               |         | (31,429 | )             |   |         |       |   |   |           | (31,429  | ) |  |   | (31,429 | )
|                            | Change in accumulated net losses on cash-flow hedging
    instruments, net of tax         |        |         |      |          |   |          |        |   |               |          |       |        |        |           |         |       |               |         | 2,360   |               |   |         |       |   |   |           | 2,360    |   |  |   | 2,360   |  
|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |       
|                            | Comprehensive income                                                                      |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |        |   |   |           |          |   |  | $ | 270,623 |  
|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |       
|                            | Common dividends declared ($1.0500 per share)                                             |        |         |      |          |   |          |        |   |               |          |       |        |        |           | (130,330 | )     |               |         |        |               |   |         |       |   |   |           | (130,330 | ) |  |   |         |  
|                            | Exercise of stock options and other issuances                                             |        |         | 1,510 |          |   |          |        |   |               |          | 17,957 |        |        |           | (1,112   | )     |               |         |        |               |   |         |       |   |   |           | 18,355   |   |  |   |         |  
|                            | Issuances of restricted stock, net of cancellations                                       |        |         | 250   |          |   |          |        |   |               |          | 4,932  |        |        |           |         |       |               |         |        |               |   |         | (5,182 | ) |   |           |         |   |  |   |         |  
|                            | Advances on loans to finance stock purchases, net of
    repayments                       |        |         |      |          |   |          |        |   |               |          |       |        |        |           |         |       |               |         |        |               |   |         | (193   | ) |   |           | (193     | ) |  |   |         |  
|                            | Issuance of treasury stock for acquisitions, stock options
    and employee benefit plans |        |         |      |          |   |          | 14,557  |   |               |          | 3,645  |        |        |           |         |       |               |         |        |               |   |         |       |   |   |           | 18,202   |   |  |   |         |  
|                            | Amortization of restricted stock                                                          |        |         |      |          |   |          |        |   |               |          |       |        |        |           |         |       |               |         |        |               |   |         | 3,479  |   |   |           | 3,479    |   |  |   |         |  
|                            | Purchase of treasury stock                                                                |        |         |      |          |   |          | (1,904  | ) |               |          |       |        |        |           |         |       |               |         |        |               |   |         |       |   |   |           | (1,904   | ) |  |   |         |  
|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |       
|Balance, September 30, 2005 |                                                                                           | $      | 267,566 |       |          | $ | (320,698 | )       |   | $             | 290,934  |        |        | $      | 2,062,796 |          |       | $             | (52,445 | )       |               | $ | (13,576 | )      |   | $ | 2,234,577 |          |   |  |   |        
|                            |                                                                                           |        |         |       |          |   |          |         |   |               |          |        |        |        |           |          |       |               |         |         |               |   |         |       



7



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##### Table of Contents



COMPASS BANCSHARES, INC. AND SUBSIDIARIES





Consolidated Statements of Cash Flows


(In Thousands, Restated)


(Unaudited)


|                      |                                                                                                 |                                           |   |            |            |   |   |            |            |  
|--------------------- | ----------------------------------------------------------------------------------------------- | ----------------------------------------- | - | ---------- | ---------- | - | - | ---------- | ---------- | -
|                      |                                                                                                 | Nine Months Ended                         |  
|                      |                                                                                                 | September 30,                             |  
|                      |                                                                                                 |                                           |  
|                      |                                                                                                 | 2005                                      |   |            | 2004       |  
|                      |                                                                                                 |                                           |   |            |            |  
|Operating Activities: |                                                                                                 |                                           |   |            |            |   |   |           
|                      | Net income                                                                                      |                                           | $ | 299,692    |            |   | $ | 267,956    |           
|                      | Adjustments to reconcile net income to cash provided by
    operations:                         |                                           |   |            |            |   |   |            |           
|                      | Depreciation and amortization                                                                   |                                           |   | 79,012     |            |   |   | 81,481     |           
|                      | Accretion of discount and loan fees                                                             |                                           |   | (6,479     | )          |   |   | (15,868    | )         
|                      | Provision for loan losses                                                                       |                                           |   | 82,268     |            |   |   | 78,140     |           
|                      | Net change in trading account assets                                                            |                                           |   | 4,140      |            |   |   | 8,237      |           
|                      | Net gain on sale of investment securities available for sale                                    |                                           |   | (79        | )          |   |   | (27,336    | )         
|                      | Net loss on prepayment of FHLB advances                                                         |                                           |   |           |            |   |   | 25,136     |           
|                      | Net gain on sale of business                                                                    |                                           |   | (4,791     | )          |   |   |           |           
|                      | Increase in other assets                                                                        |                                           |   | (63,713    | )          |   |   | (75,162    | )         
|                      | Increase in other liabilities                                                                   |                                           |   | 114,405    |            |   |   | 58,614     |           
|                      |                                                                                                 |                                           |   |            |            |  
|                      |                                                                                                 | Net cash provided by operating activities |   |            | 504,455    |   |   |            | 401,198    |  
|Investing Activities: |                                                                                                 |                                           |   |            |            |   |   |           
|                      | Proceeds from prepayments, maturities and calls of investment
    securities held to maturity   |                                           |   | 413,086    |            |   |   | 585,879    |           
|                      | Purchases of investment securities held to maturity                                             |                                           |   | (5,000     | )          |   |   |           |           
|                      | Proceeds from sales of investment securities available for sale                                 |                                           |   | 50,870     |            |   |   | 812,248    |           
|                      | Proceeds from prepayments, maturities and calls of investment
    securities available for sale |                                           |   | 520,399    |            |   |   | 684,966    |           
|                      | Purchases of investment securities available for sale                                           |                                           |   | (744,377   | )          |   |   | (1,392,921 | )         
|                      | Net decrease in federal funds sold and securities purchased
    under agreements to resell      |                                           |   | 10,723     |            |   |   | 35,662     |           
|                      | Net increase in loan portfolio                                                                  |                                           |   | (2,066,949 | )          |   |   | (1,724,255 | )         
|                      | Net cash paid in acquisitions                                                                   |                                           |   | (202       | )          |   |   |           |           
|                      | Net cash received in sale of business                                                           |                                           |   | 4,726      |            |   |   |           |           
|                      | Purchases of premises and equipment, net                                                        |                                           |   | (49,777    | )          |   |   | (46,910    | )         
|                      | Proceeds from sales of other real estate owned                                                  |                                           |   | 15,841     |            |   |   | 23,958     |           
|                      |                                                                                                 |                                           |   |            |            |  
|                      |                                                                                                 | Net cash used by investing activities     |   |            | (1,850,660 | ) |   |            | (1,021,373 | )



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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


Consolidated Statements of Cash Flows 
Continued


(In Thousands)


(Unaudited)


|                                                        |                                                                                                                             |                                           |   |           |           |  |   |            |         | 
|------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------- | - | --------- | --------- |  | - | ---------- | ------- | 
|                                                        |                                                                                                                             | Nine Months Ended                         |  
|                                                        |                                                                                                                             | September 30,                             |  
|                                                        |                                                                                                                             |                                           |  
|                                                        |                                                                                                                             | 2005                                      |   |           | 2004      | 
|                                                        |                                                                                                                             |                                           |   |           |           | 
|Financing Activities:                                   |                                                                                                                             |                                           |   |           |           |  |   |           
|                                                        | Net increase in demand deposits, NOW accounts and savings
    accounts                                                      |                                           |   | 633,014   |           |  |   | 579,824    |        
|                                                        | Net increase in time deposits                                                                                               |                                           |   | 1,158,250 |           |  |   | 225,296    |        
|                                                        | Net increase (decrease) in federal funds purchased and
    securities sold under agreements to repurchase                   |                                           |   | (126,806  | )         |  |   | 598,237    |        
|                                                        | Net increase (decrease) in other short-term borrowings                                                                      |                                           |   | 19,305    |           |  |   | (58,650    | )      
|                                                        | Proceeds from FHLB advances and other borrowings                                                                            |                                           |   | 396,902   |           |  |   | 1,125,101  |        
|                                                        | Repayment of FHLB advances and other borrowings                                                                             |                                           |   | (400,376  | )         |  |   | (1,793,004 | )      
|                                                        | Redemption of guaranteed preferred beneficial interests in
    Companys junior subordinated deferrable interest debentures |                                           |   |          |           |  |   | (23,000    | )      
|                                                        | Common dividends paid                                                                                                       |                                           |   | (165,702  | )         |  |   | (115,914   | )      
|                                                        | Purchase of treasury stock                                                                                                  |                                           |   | (1,904    | )         |  |   | (33,743    | )      
|                                                        | Issuance of treasury stock for benefit plans and stock options                                                              |                                           |   | 4,493     |           |  |   | 3,272      |        
|                                                        | Repayment of loans to finance stock purchases                                                                               |                                           |   | 491       |           |  |   | 357        |        
|                                                        | Proceeds from exercise of stock options                                                                                     |                                           |   | 17,671    |           |  |   | 21,440     |        
|                                                        |                                                                                                                             |                                           |   |           |           | 
|                                                        |                                                                                                                             | Net cash provided by financing activities |   |           | 1,535,338 |  |   |            | 529,216 | 
|                                                        |                                                                                                                             |                                           |   |           |           | 
|                                                        | Net increase (decrease) in cash and due from banks                                                                          |                                           |   | 189,133   |           |  |   | (90,959    | )      
|                                                        | Cash and due from banks at beginning of period                                                                              |                                           |   | 585,679   |           |  |   | 726,492    |        
|                                                        |                                                                                                                             |                                           |   |           |           | 
|                                                        | Cash and due from banks at end of period                                                                                    |                                           | $ | 774,812   |           |  | $ | 635,533    |        
|                                                        |                                                                                                                             |                                           |   |           |           | 
|Schedule of noncash investing and financing activities: |                                                                                                                             |                                           |   |           |           |  |   |           
|                                                        | Transfers of loans to other real estate owned                                                                               |                                           | $ | 8,428     |           |  | $ | 20,093     |        
|                                                        | Loans to facilitate the sale of other real estate owned                                                                     |                                           |   | 780       |           |  |   | 1,006      |        
|                                                        | Assets retained in loan securitizations                                                                                     |                                           |   |          |           |  |   | 589,912    |        
|                                                        | Loans to finance stock purchases                                                                                            |                                           |   | 684       |           |  |   | 607        |        
|                                                        | Change in unrealized gain (loss) on investment securities
    available for sale                                            |                                           |   | (47,593   | )         |  |   | (50,175    | )      
|                                                        | Issuance of restricted stock, net of cancellations                                                                          |                                           |   | 5,182     |           |  |   | 7,651      |        
|                                                        | Treasury stock exchanged for acquisition earnouts                                                                           |                                           |   | 5,840     |           |  |   | 4,741      |        
|                                                        | Allowance transferred to other liabilities                                                                                  |                                           |   | 12,189    |           |  |   |           |        
|                                                        | Business combinations and divestitures:                                                                                     |                                           |   |           |           |  |   |            |        
|                                                        |                                                                                                                             | Common stock issued from treasury stock   |   |           | 7,869     |  |   |            |        | 
|                                                        |                                                                                                                             | Assets acquired                           |   |           | 8,092     |  |   |            |        | 
|                                                        |                                                                                                                             | Liabilities assumed                       |   |           | 21        |  |   |            |        | 
|                                                        |                                                                                                                             | Assets sold                               |   |           | 13        |  |   |            |        | 
|                                                        |                                                                                                                             | Liabilities sold                          |   |           | 78        |  |   |            |        | 



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##### Table of Contents



COMPASS BANCSHARES, INC. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


NOTE 1  Restatement


Accounting for Derivative Instruments
and Hedging Activities


Form 10-K Form 10-Q.






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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


Consolidated Balance Sheets:


|                                           |  |                          |            |  |                         |   |               |                         |  |   |             |               |  |          |            |  |             |   |            |  |  |   |            | 
|------------------------------------------ |  | ------------------------ | ---------- |  | ----------------------- | - | ------------- | ----------------------- |  | - | ----------- | ------------- |  | -------- | ---------- |  | ----------- | - | ---------- |  |  | - | ---------- | 
|                                           |  | As of September 30, 2005 |            |  | As of December 31, 2004 |   |               | As of December 31, 2003 | 
|                                           |  |                          |            |  |                         |   |               |                         | 
|                                           |  | As previously            |            |  |                         |   | As previously |                         |  |   |             | As previously |  |          |           
|                                           |  | reported                 |            |  | As restated             |   |               | reported                |  |   | As restated |               |  | reported |            |  | As restated |  
|                                           |  |                          |            |  |                         |   |               |                         |  |   |             |               |  |          |            |  |             |  
|                                           |  | (In thousands)           |           
|Trading account assets                     |  | $                        | 66,321     |  |                         | $ | 76,070        |                         |  | $ | 60,156      |               |  | $        | 77,817     |  |             | $ | 59,024     |  |  | $ | 86,219     | 
|Other assets                               |  |                          | 502,863    |  |                         |   | 495,669       |                         |  |   | 463,952     |               |  |          | 443,579    |  |             |   | 436,638    |  |  |   | 409,443    | 
|Total assets                               |  |                          | 30,131,280 |  |                         |   | 30,133,835    |                         |  |   | 28,184,628  |               |  |          | 28,181,916 |  |             |   | 26,963,113 |  |  |   | 26,963,113 | 
|Interest bearing deposits                  |  |                          | 12,743,779 |  |                         |   | 12,748,849    |                         |  |   | 11,563,011  |               |  |          | 11,566,592 |  |             |   | 11,060,670 |  |  |   | 11,060,479 | 
|Total deposits                             |  |                          | 18,829,156 |  |                         |   | 18,834,226    |                         |  |   | 17,039,151  |               |  |          | 17,042,732 |  |             |   | 15,687,823 |  |  |   | 15,687,632 | 
|FHLB and other borrowings                  |  |                          | 4,132,080  |  |                         |   | 4,119,969     |                         |  |   | 4,140,972   |               |  |          | 4,119,771  |  |             |   | 4,827,814  |  |  |   | 4,794,935  | 
|Accrued expenses and other liabilities     |  |                          | 339,719    |  |                         |   | 344,789       |                         |  |   | 251,477     |               |  |          | 255,293    |  |             |   | 193,432    |  |  |   | 205,811    | 
|Total liabilities                          |  |                          | 27,901,229 |  |                         |   | 27,899,258    |                         |  |   | 26,139,375  |               |  |          | 26,125,571 |  |             |   | 25,091,230 |  |  |   | 25,070,539 | 
|Retained earnings                          |  |                          | 2,058,270  |  |                         |   | 2,062,796     |                         |  |   | 1,883,454   |               |  |          | 1,894,546  |  |             |   | 1,668,998  |  |  |   | 1,689,689  | 
|Total shareholders equity                 |  |                          | 2,230,051  |  |                         |   | 2,234,577     |                         |  |   | 2,045,253   |               |  |          | 2,056,345  |  |             |   | 1,871,883  |  |  |   | 1,892,574  | 
|Total liabilities and shareholders equity |  |                          | 30,131,280 |  |                         |   | 30,133,835    |                         |  |   | 28,184,628  |               |  |          | 28,181,916 |  |             |   | 26,963,113 |  |  |   | 26,963,113 | 

Consolidated Statements of Income:


|                                                    |                  |                                       |         |                                 |          |   |         |            |  |   |          |      |  |            |         |      |          |   |         |            |  |   |          |      |  |   |         |      |  |   |         |      | 
|--------------------------------------------------- | ---------------- | ------------------------------------- | ------- | ------------------------------- | -------- | - | ------- | ---------- |  | - | -------- | ---- |  | ---------- | ------- | ---- | -------- | - | ------- | ---------- |  | - | -------- | ---- |  | - | ------- | ---- |  | - | ------- | ---- | 
|                                                    |                  |                                       |         | For the Year Ended December 31, |         
|                                                    |                  | For the Nine Months                   |         |                                 |          |  
|                                                    |                  | Ended                                 |         |                                 |          |   |         |            | 
|                                                    |                  | September 30, 2005                    |         |                                 | 2004     |   |         | 2003       |  |   | 2002     |     
|                                                    |                  |                                       |         |                                 |          |   |         |            |  |   |          |     
|                                                    |                  | As                                    |         |                                 |          |   | As      |            |  |   |          | As   |  |            |         |      | As       |   |         |           
|                                                    |                  | previously                            |         |                                 | As       |   |         | previously |  |   | As       |      |  | previously |         |      | As       |   |         | previously |  |   | As       |     
|                                                    |                  | reported                              |         |                                 | restated |   |         | reported   |  |   | restated |      |  | reported   |         |      | restated |   |         | reported   |  |   | restated |     
|                                                    |                  |                                       |         |                                 |          |   |         |            |  |   |          |      |  |            |         |      |          |   |         |            |  |   |          |     
|                                                    |                  | (In thousands, except per share data) |        
|Interest on deposits                                |                  | $                                     | 176,309 |                                 |          | $ | 177,193 |            |  | $ | 152,250  |      |  | $          | 159,778 |      |          | $ | 164,049 |            |  | $ | 174,752  |      |  | $ | 239,694 |      |  | $ | 248,221 |     
|Interest on FHLB and other borrowings               |                  |                                       | 118,904 |                                 |          |   | 129,268 |            |  |   | 150,518  |      |  |            | 169,493 |      |          |   | 172,617 |            |  |   | 192,314  |      |  |   | 182,489 |      |  |   | 197,108 |     
|Total interest expense                              |                  |                                       | 391,021 |                                 |          |   | 402,269 |            |  |   | 361,698  |      |  |            | 388,201 |      |          |   | 367,757 |            |  |   | 398,157  |      |  |   | 462,068 |      |  |   | 485,214 |     
|Net interest income                                 |                  |                                       | 726,402 |                                 |          |   | 715,154 |            |  |   | 911,828  |      |  |            | 885,325 |      |          |   | 909,530 |            |  |   | 879,130  |      |  |   | 924,855 |      |  |   | 901,709 |     
|Net interest income after provision for loan losses |                  |                                       | 644,134 |                                 |          |   | 632,886 |            |  |   | 806,170  |      |  |            | 779,667 |      |          |   | 789,849 |            |  |   | 759,449  |      |  |   | 788,524 |      |  |   | 765,378 |     
|Trading gains (losses) on economic hedges           |                  |                                       |        |                                 |          |   | 669     |            |  |   |         |      |  |            | 11,053  |      |          |   |        |            |  |   | 9,320    |      |  |   |        |      |  |   | 71,006  |     
|Total noninterest income                            |                  |                                       | 491,223 |                                 |          |   | 491,892 |            |  |   | 617,590  |      |  |            | 628,643 |      |          |   | 526,184 |            |  |   | 535,504  |      |  |   | 441,063 |      |  |   | 512,069 |     
|Net income before income tax expense                |                  |                                       | 463,494 |                                 |          |   | 452,915 |            |  |   | 555,282  |      |  |            | 539,832 |      |          |   | 518,150 |            |  |   | 497,070  |      |  |   | 477,158 |      |  |   | 525,018 |     
|Income tax expense                                  |                  |                                       | 157,236 |                                 |          |   | 153,223 |            |  |   | 185,498  |      |  |            | 179,647 |      |          |   | 176,282 |            |  |   | 168,392  |      |  |   | 162,759 |      |  |   | 180,673 |     
|Net income                                          |                  | $                                     | 306,258 |                                 |          | $ | 299,692 |            |  | $ | 369,784  |      |  | $          | 360,185 |      |          | $ | 341,868 |            |  | $ | 328,678  |      |  | $ | 314,399 |      |  | $ | 344,345 |     
|Per common share:                                   |                  |                                       |         |                                 |          |   |         |            |  |   |          |      |  |            |         |      |          |   |         |            |  |   |          |      |  |   |         |      |  |   |         |     
|                                                    | Basic earnings   |                                       | $       | 2.48                            |          |   | $       | 2.42       |  |   | $        | 3.02 |  |            | $       | 2.95 |          |   | $       | 2.74       |  |   | $        | 2.64 |  |   | $       | 2.46 |  |   | $       | 2.70 | 
|                                                    | Diluted earnings |                                       | $       | 2.42                            |          |   | $       | 2.37       |  |   | $        | 2.95 |  |            | $       | 2.87 |          |   | $       | 2.69       |  |   | $        | 2.58 |  |   | $       | 2.42 |  |   | $       | 2.65 | 

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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|                                                    |                  |                                       |         |      |                    |   |         |                    |  |   |                    |      |  |            |         |      |          |   |         |            |  |   |          |      |  |   |         |      |  |   |         |      | 
|--------------------------------------------------- | ---------------- | ------------------------------------- | ------- | ---- | ------------------ | - | ------- | ------------------ |  | - | ------------------ | ---- |  | ---------- | ------- | ---- | -------- | - | ------- | ---------- |  | - | -------- | ---- |  | - | ------- | ---- |  | - | ------- | ---- | 
|                                                    |                  | Three Months Ended                    |         |      | Three Months Ended |   |         | Nine Months Ended  |  |   | Nine Months Ended  |     
|                                                    |                  | September 30, 2005                    |         |      | September 30, 2004 |   |         | September 30, 2005 |  |   | September 30, 2004 |     
|                                                    |                  |                                       |         |      |                    |   |         |                    |  |   |                    |     
|                                                    |                  | As                                    |         |      |                    |   | As      |                    |  |   |                    | As   |  |            |         |      | As       |   |         |           
|                                                    |                  | previously                            |         |      | As                 |   |         | previously         |  |   | As                 |      |  | previously |         |      | As       |   |         | previously |  |   | As       |     
|                                                    |                  | reported                              |         |      | restated           |   |         | reported           |  |   | restated           |      |  | reported   |         |      | restated |   |         | reported   |  |   | restated |     
|                                                    |                  |                                       |         |      |                    |   |         |                    |  |   |                    |      |  |            |         |      |          |   |         |            |  |   |          |     
|                                                    |                  | (In Thousands, Except Per Share Data) |        
|Interest on deposits                                |                  | $                                     | 68,848  |      |                    | $ | 68,634  |                    |  | $ | 37,861             |      |  | $          | 39,873  |      |          | $ | 176,309 |            |  | $ | 177,193  |      |  | $ | 109,821 |      |  | $ | 116,058 |     
|Interest on FHLB and other borrowings               |                  |                                       | 41,899  |      |                    |   | 44,942  |                    |  |   | 36,184             |      |  |            | 40,818  |      |          |   | 118,904 |            |  |   | 129,268  |      |  |   | 117,898 |      |  |   | 132,583 |     
|Total interest expense                              |                  |                                       | 149,359 |      |                    |   | 152,188 |                    |  |   | 89,878             |      |  |            | 96,524  |      |          |   | 391,021 |            |  |   | 402,269  |      |  |   | 263,965 |      |  |   | 284,887 |     
|Net interest income                                 |                  |                                       | 249,940 |      |                    |   | 247,111 |                    |  |   | 226,531            |      |  |            | 219,885 |      |          |   | 726,402 |            |  |   | 715,154  |      |  |   | 676,131 |      |  |   | 655,209 |     
|Net interest income after provision for loan losses |                  |                                       | 215,745 |      |                    |   | 212,916 |                    |  |   | 200,914            |      |  |            | 194,268 |      |          |   | 644,134 |            |  |   | 632,886  |      |  |   | 597,991 |      |  |   | 577,069 |     
|Trading gain (losses) on economic hedges            |                  |                                       |        |      |                    |   | (4,149  | )                  |  |   |                   |      |  |            | 14,873  |      |          |   |        |            |  |   | 669      |      |  |   |        |      |  |   | 15,067  |     
|Total noninterest income                            |                  |                                       | 170,645 |      |                    |   | 166,496 |                    |  |   | 172,314            |      |  |            | 187,187 |      |          |   | 491,223 |            |  |   | 491,892  |      |  |   | 464,244 |      |  |   | 479,311 |     
|Net income before income tax expense                |                  |                                       | 158,994 |      |                    |   | 152,016 |                    |  |   | 140,727            |      |  |            | 148,954 |      |          |   | 463,494 |            |  |   | 452,915  |      |  |   | 408,406 |      |  |   | 402,551 |     
|Income tax expense                                  |                  |                                       | 53,943  |      |                    |   | 51,296  |                    |  |   | 47,125             |      |  |            | 50,241  |      |          |   | 157,236 |            |  |   | 153,223  |      |  |   | 136,812 |      |  |   | 134,595 |     
|Net income                                          |                  |                                       | 105,051 |      |                    |   | 100,720 |                    |  |   | 93,602             |      |  |            | 98,713  |      |          |   | 306,258 |            |  |   | 299,692  |      |  |   | 271,594 |      |  |   | 267,956 |     
|Per common share:                                   |                  |                                       |         |      |                    |   |         |                    |  |   |                    |      |  |            |         |      |          |   |         |            |  |   |          |      |  |   |         |      |  |   |         |     
|                                                    | Basic earnings   |                                       |         | 0.85 |                    |   |         | 0.81               |  |   |                    | 0.76 |  |            |         | 0.80 |          |   |         | 2.48       |  |   |          | 2.42 |  |   |         | 2.22 |  |   |         | 2.19 | 
|                                                    | Diluted earnings |                                       |         | 0.83 |                    |   |         | 0.80               |  |   |                    | 0.75 |  |            |         | 0.79 |          |   |         | 2.42       |  |   |          | 2.37 |  |   |         | 2.17 |  |   |         | 2.14 | 

Statement of Changes in Shareholders Equity:


|                                    |  |                     |           |                                 |             |   |            |          |  |   |             |            |  |          |           |  |             |   |           |          |  |   |             |  |  |   |           |  |  |   |           | 
|----------------------------------- |  | ------------------- | --------- | ------------------------------- | ----------- | - | ---------- | -------- |  | - | ----------- | ---------- |  | -------- | --------- |  | ----------- | - | --------- | -------- |  | - | ----------- |  |  | - | --------- |  |  | - | --------- | 
|                                    |  |                     |           | For the Year Ended December 31, |            
|                                    |  | For the Nine Months |           |                                 |             |  
|                                    |  | Ended               |           |                                 |             |   |            |          | 
|                                    |  | September 30, 2005  |           |                                 | 2004        |   |            | 2003     |  |   | 2002        |           
|                                    |  |                     |           |                                 |             |   |            |          |  |   |             |           
|                                    |  | As                  |           |                                 |             |   | As         |          |  |   |             | As         |  |          |           |  | As          |   |           |         
|                                    |  | previously          |           |                                 |             |   | previously |          |  |   |             | previously |  |          |           |  | previously  |   |           |         
|                                    |  | reported            |           |                                 | As restated |   |            | reported |  |   | As restated |            |  | reported |           |  | As restated |   |           | reported |  |   | As restated | 
|                                    |  |                     |           |                                 |             |   |            |          |  |   |             |            |  |          |           |  |             |   |           |          |  |   |             | 
|                                    |  | (In thousands)      |          
|Balance, beginning of period        |  | $                   | 2,045,253 |                                 |             | $ | 2,056,345  |          |  | $ | 1,871,883   |            |  | $        | 1,892,574 |  |             | $ | 1,931,502 |          |  | $ | 1,965,383   |  |  | $ | 1,715,641 |  |  | $ | 1,719,576 | 
|Increase attributable to net income |  |                     | 306,258   |                                 |             |   | 299,692    |          |  |   | 369,784     |            |  |          | 360,185   |  |             |   | 341,868   |          |  |   | 328,678     |  |  |   | 314,399   |  |  |   | 344,345   | 
|Balance, end of period              |  |                     | 2,230,051 |                                 |             |   | 2,234,577  |          |  |   | 2,045,253   |            |  |          | 2,056,345 |  |             |   | 1,871,883 |          |  |   | 1,892,574   |  |  |   | 1,931,502 |  |  |   | 1,965,383 | 



NOTE 2  General






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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




Form 10-K






| |                             
| | ----------------------------
| | Critical Accounting Policies



Consolidation: Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of
Liabilities.


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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


Income Taxes:


Goodwill Impairment:




| |                         
| | ------------------------
| | Stock-Based Compensation

Accounting for
Stock Issued to Employees, Share-Based Payments. number 33-8568








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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|                                                                                                                                    |             |                    |        |         |                   |   |        |        |  |   |         |         |  |   |         |         | 
|----------------------------------------------------------------------------------------------------------------------------------- | ----------- | ------------------ | ------ | ------- | ----------------- | - | ------ | ------ |  | - | ------- | ------- |  | - | ------- | ------- | 
|                                                                                                                                    |             | Three Months Ended |        |         | Nine Months Ended |  
|                                                                                                                                    |             | September 30,      |        |         | September 30,     |  
|                                                                                                                                    |             |                    |        |         |                   |  
|                                                                                                                                    |             | 2005               |        |         | 2004              |   |        | 2005   |  |   | 2004    |        
|                                                                                                                                    |             |                    |        |         |                   |   |        |        |  |   |         |        
|Net income:                                                                                                                         |             |                    |        |         |                   |   |        |        |  |   |         |         |  |   |         |        
|                                                                                                                                    | As reported |                    | $      | 100,720 |                   |   | $      | 98,713 |  |   | $       | 299,692 |  |   | $       | 267,956 | 
|Deduct: Total share-based employee compensation expense
    determined under fair value based method for all awards, net of
    tax |             |                    | 1,485  |         |                   |   | 2,234  |        |  |   | 5,527   |         |  |   | 7,163   |        
|                                                                                                                                    |             |                    |        |         |                   |   |        |        |  |   |         |        
|Pro forma net income                                                                                                                |             | $                  | 99,235 |         |                   | $ | 96,479 |        |  | $ | 294,165 |         |  | $ | 260,793 |        
|                                                                                                                                    |             |                    |        |         |                   |   |        |        |  |   |         |        
|Basic earnings per share:                                                                                                           |             |                    |        |         |                   |   |        |        |  |   |         |         |  |   |         |        
|                                                                                                                                    | As reported |                    | $      | 0.81    |                   |   | $      | 0.80   |  |   | $       | 2.42    |  |   | $       | 2.19    | 
|                                                                                                                                    | Pro forma   |                    |        | 0.80    |                   |   |        | 0.78   |  |   |         | 2.38    |  |   |         | 2.13    | 
|Diluted earnings per share:                                                                                                         |             |                    |        |         |                   |   |        |        |  |   |         |         |  |   |         |        
|                                                                                                                                    | As reported |                    | $      | 0.80    |                   |   | $      | 0.79   |  |   | $       | 2.37    |  |   | $       | 2.14    | 
|                                                                                                                                    | Pro forma   |                    |        | 0.79    |                   |   |        | 0.77   |  |   |         | 2.33    |  |   |         | 2.08    | 



| |                                                   
| | --------------------------------------------------
| | Website Availability of Reports Filed with the SEC

www.compassbank.com Form 10-K, Form 10-Q, Form 8-K,


NOTE 3  Business Combinations and
Divestitures




| |                      
| | ---------------------
| | Business Combinations









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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)






| |             
| | ------------
| | Divestitures



NOTE 4  Capital Securities and Preferred
Stock




| |                   
| | ------------------
| | Capital Securities



Consolidation of Variable Interest Entities, an
interpretation of ARB No. 51.








| |                        
| | -----------------------
| | Class B Preferred Stock



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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)








|                    |                                               |                                              |  |                          |               |  |   |              |         |  |   |         |         | 
|------------------- | --------------------------------------------- | -------------------------------------------- |  | ------------------------ | ------------- |  | - | ------------ | ------- |  | - | ------- | ------- | 
|                    |                                               | Maturity                                     |  |                          | September 30, |  |   | December 31, |        
|                    |                                               | Dates                                        |  |                          | 2005          |  |   | 2004         |        
|                    |                                               |                                              |  |                          |               |  |   |              |        
|                    |                                               |                                              |  | (In thousands, restated) |              
|Capital Securities: |                                               |                                              |  |                          |               |  |   |              |         |  |   |        
|                    | 8.23% debentures payable to Compass Trust I   |                                              |  | 2027                     |               |  | $ | 103,093      |         |  | $ | 103,093 |        
|                    | 7.35% debentures payable to Compass Trust III |                                              |  | 2032                     |               |  |   | 309,279      |         |  |   | 309,279 |        
|                    | Unamortized discount                          |                                              |  | 2027, 2032               |               |  |   | (2,363       | )       |  |   | (3,544  | )      
|                    | Class B Preferred Stock                       |                                              |  | N/A                      |               |  |   | 18,055       |         |  |   | 18,012  |        
|                    |                                               |                                              |  |                          |               |  |   |              |        
|                    |                                               | Total Capital Securities and Preferred Stock |  |                          |               |  |   | $            | 428,064 |  |   | $       | 426,840 | 
|                    |                                               |                                              |  |                          |               |  |   |              |        

NOTE 5  Earnings Per Share


|                            |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |         |  |  |   |         | 
|--------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | - | ------- | ----------------- |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | 
|                            |                                                                                                                                                                               | Three Months Ended                              |   |         | Nine Months Ended | 
|                            |                                                                                                                                                                               | September 30,                                   |   |         | September 30,     | 
|                            |                                                                                                                                                                               |                                                 |   |         |                   | 
|                            |                                                                                                                                                                               | 2005                                            |   |         | 2004              |  |   | 2005    |  |  | 2004 |        
|                            |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |        
|                            |                                                                                                                                                                               | (In thousands, except per share data, restated) |  
|BASIC EARNINGS PER SHARE:   |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |         |  |  |   |        
|                            | Net income                                                                                                                                                                    |                                                 | $ | 100,720 |                   |  | $ | 98,713  |  |  | $    | 299,692 |  |  | $ | 267,956 | 
|                            |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |        
|                            | Weighted average shares outstanding                                                                                                                                           |                                                 |   | 123,947 |                   |  |   | 122,320 |  |  |      | 123,619 |  |  |   | 122,153 | 
|                            |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |        
|                            | Basic earnings per share                                                                                                                                                      |                                                 | $ | 0.81    |                   |  | $ | 0.80    |  |  | $    | 2.42    |  |  | $ | 2.19    | 
|                            |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |        
|DILUTED EARNINGS PER SHARE: |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |         |  |  |   |        
|                            | Net income                                                                                                                                                                    |                                                 | $ | 100,720 |                   |  | $ | 98,713  |  |  | $    | 299,692 |  |  | $ | 267,956 | 
|                            |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |        
|                            | Weighted average shares outstanding                                                                                                                                           |                                                 |   | 123,947 |                   |  |   | 122,320 |  |  |      | 123,619 |  |  |   | 122,153 | 
|                            | Net effect of nonvested restricted stock and the assumed
    exercise of stock options  based on the treasury
    stock method using the average Market price for the period |                                                 |   | 2,930   |                   |  |   | 3,237   |  |  |      | 2,868   |  |  |   | 3,065   | 
|                            |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |        
|                            | Weighted average diluted shares outstanding                                                                                                                                   |                                                 |   | 126,877 |                   |  |   | 125,557 |  |  |      | 126,487 |  |  |   | 125,218 | 
|                            |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |        
|                            | Diluted earnings per share                                                                                                                                                    |                                                 | $ | 0.80    |                   |  | $ | 0.79    |  |  | $    | 2.37    |  |  | $ | 2.14    | 
|                            |                                                                                                                                                                               |                                                 |   |         |                   |  |   |         |  |  |      |        

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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


NOTE 6  Segment Information


















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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




For the Three Months Ended September 30, 2005


(in Thousands)


|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   |            |         | 
|---------------- | ------------------------------------ | --------------------- | - | ---------- | ------- |  | - | ---------- | ------- | --------- | -------- | --------- | ----------- | ----- | - | --------- | ------------ |  | - | --------- | ------- | - | - | ---------- | ------- | 
|                 |                                      |                       |   |            |         |  |   |            |         | Corporate |          |           |            
|                 |                                      | Corporate             |   |            | Retail  |  |   | Wealth     |         |           |          |           | Support and |       |   |          
|                 |                                      | Banking               |   |            | Banking |  |   | Management |         |           | Treasury |           |             | Other |   |           | Consolidated | 
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|Income Statement |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   |           
|                 | Net interest income                  |                       | $ | 98,152     |         |  | $ | 110,261    |         |           | $        | 13,946    |             |       | $ | 8,227     |              |  | $ | 16,525    |         |   | $ | 247,111    |        
|                 | Noninterest income                   |                       |   | 36,153     |         |  |   | 120,732    |         |           |          | 9,350     |             |       |   | 3,435     |              |  |   | (3,174    | )       |   |   | 166,496    |        
|                 | Noninterest expense                  |                       |   | 51,835     |         |  |   | 108,402    |         |           |          | 11,518    |             |       |   | 5,458     |              |  |   | 50,183    |         |   |   | 227,396    |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 |                                      | Segment income (loss) |   | $          | 82,470  |  |   | $          | 122,591 |           |          | $         | 11,778      |       |   | $         | 6,204        |  |   | $         | (36,832 | ) |   |            | 186,211 | 
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Provision for loan losses            |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   | 34,195     |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Net income before income tax expense |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   | 152,016    |        
|                 | Income tax expense                   |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   | 51,296     |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Net income                           |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   | $ | 100,720    |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|Balance Sheet    |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   |           
|                 | Average assets                       |                       | $ | 10,814,230 |         |  | $ | 8,953,521  |         |           | $        | 1,372,234 |             |       | $ | 7,582,228 |              |  | $ | 1,045,981 |         |   | $ | 29,768,194 |        
|                 | Average loans                        |                       |   | 10,646,541 |         |  |   | 8,663,137  |         |           |          | 1,361,449 |             |       |   |          |              |  |   | (251,254  | )       |   |   | 20,419,873 |        
|                 | Average deposits                     |                       |   | 4,781,285  |         |  |   | 10,336,080 |         |           |          | 1,193,899 |             |       |   | 2,385,202 |              |  |   | (61,771   | )       |   |   | 18,634,695 |        
|                
|                 | Period-end assets                    |                       | $ | 11,056,344 |         |  | $ | 9,082,146  |         |           | $        | 1,432,297 |             |       | $ | 7,493,000 |              |  | $ | 1,070,048 |         |   | $ | 30,133,835 |        
|                 | Period-end loans                     |                       |   | 10,881,742 |         |  |   | 8,788,175  |         |           |          | 1,421,202 |             |       |   |          |              |  |   | (249,329  | )       |   |   | 20,841,790 |        
|                 | Period-end deposits                  |                       |   | 4,950,555  |         |  |   | 10,743,534 |         |           |          | 1,191,743 |             |       |   | 2,017,815 |              |  |   | (69,421   | )       |   |   | 18,834,226 |        

For the Three Months Ended September 30, 2004


(in Thousands)


|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   |            |         | 
|---------------- | ------------------------------------ | --------------------- | - | ---------- | ------- |  | - | ---------- | ------- | --------- | -------- | --------- | ----------- | ----- | - | --------- | ------------ |  | - | --------- | ------- | - | - | ---------- | ------- | 
|                 |                                      |                       |   |            |         |  |   |            |         | Corporate |          |           |            
|                 |                                      | Corporate             |   |            | Retail  |  |   | Wealth     |         |           |          |           | Support and |       |   |          
|                 |                                      | Banking               |   |            | Banking |  |   | Management |         |           | Treasury |           |             | Other |   |           | Consolidated | 
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|Income Statement |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   |           
|                 | Net interest income                  |                       | $ | 92,619     |         |  | $ | 99,736     |         |           | $        | 13,486    |             |       | $ | 6,272     |              |  | $ | 7,772     |         |   | $ | 219,885    |        
|                 | Noninterest income                   |                       |   | 31,446     |         |  |   | 103,616    |         |           |          | 7,152     |             |       |   | 46,860    |              |  |   | (1,887    | )       |   |   | 187,187    |        
|                 | Noninterest expense                  |                       |   | 47,998     |         |  |   | 99,592     |         |           |          | 9,205     |             |       |   | 29,303    |              |  |   | 46,403    |         |   |   | 232,501    |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 |                                      | Segment income (loss) |   | $          | 76,067  |  |   | $          | 103,760 |           |          | $         | 11,433      |       |   | $         | 23,829       |  |   | $         | (40,518 | ) |   |            | 174,571 | 
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Provision for loan losses            |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   | 25,617     |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Net income before income tax expense |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   | 148,954    |        
|                 | Income tax expense                   |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   | 50,241     |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Net income                           |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   | $ | 98,713     |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|Balance Sheet    |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |         |   |   |           
|                 | Average assets                       |                       | $ | 9,951,597  |         |  | $ | 7,655,062  |         |           | $        | 1,235,378 |             |       | $ | 7,674,723 |              |  | $ | 1,209,995 |         |   | $ | 27,726,755 |        
|                 | Average loans                        |                       |   | 9,816,429  |         |  |   | 7,397,193  |         |           |          | 1,226,719 |             |       |   |          |              |  |   | (366,652  | )       |   |   | 18,073,689 |        
|                 | Average deposits                     |                       |   | 4,697,478  |         |  |   | 9,333,440  |         |           |          | 1,226,800 |             |       |   | 1,278,569 |              |  |   | (43,074   | )       |   |   | 16,493,213 |        
|                
|                 | Period-end assets                    |                       | $ | 10,122,896 |         |  | $ | 7,799,878  |         |           | $        | 1,271,932 |             |       | $ | 7,599,333 |              |  | $ | 989,200   |         |   | $ | 27,783,239 |        
|                 | Period-end loans                     |                       |   | 9,986,753  |         |  |   | 7,528,562  |         |           |          | 1,263,744 |             |       |   |          |              |  |   | (359,073  | )       |   |   | 18,419,986 |        
|                 | Period-end deposits                  |                       |   | 4,811,143  |         |  |   | 9,396,096  |         |           |          | 1,216,904 |             |       |   | 1,112,580 |              |  |   | (43,111   | )       |   |   | 16,493,612 |        

19



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##### Table of Contents



COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


For the Nine Months Ended September 30, 2005


(in Thousands)


|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   |            |         | 
|---------------- | ------------------------------------ | --------------------- | - | ---------- | ------- |  | - | ---------- | ------- | --------- | -------- | --------- | ----------- | ----- | - | --------- | ------------ |  | - | --------- | -------- | - | - | ---------- | ------- | 
|                 |                                      |                       |   |            |         |  |   |            |         | Corporate |          |           |            
|                 |                                      | Corporate             |   |            | Retail  |  |   | Wealth     |         |           |          |           | Support and |       |   |          
|                 |                                      | Banking               |   |            | Banking |  |   | Management |         |           | Treasury |           |             | Other |   |           | Consolidated | 
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|Income Statement |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   |           
|                 | Net interest income                  |                       | $ | 286,209    |         |  | $ | 325,943    |         |           | $        | 41,138    |             |       | $ | 21,748    |              |  | $ | 40,116    |          |   | $ | 715,154    |        
|                 | Noninterest income                   |                       |   | 114,964    |         |  |   | 338,413    |         |           |          | 28,106    |             |       |   | 22,673    |              |  |   | (12,264   | )        |   |   | 491,892    |        
|                 | Noninterest expense                  |                       |   | 150,850    |         |  |   | 320,755    |         |           |          | 34,540    |             |       |   | 15,038    |              |  |   | 150,680   |          |   |   | 671,863    |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 |                                      | Segment income (loss) |   | $          | 250,323 |  |   | $          | 343,601 |           |          | $         | 34,704      |       |   | $         | 29,383       |  |   | $         | (122,828 | ) |   |            | 535,183 | 
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Provision for loan losses            |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   | 82,268     |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Net income before income tax expense |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   | 452,915    |        
|                 | Income tax expense                   |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   | 153,223    |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Net income                           |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   | $ | 299,692    |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|Balance Sheet    |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   |           
|                 | Average assets                       |                       | $ | 10,552,080 |         |  | $ | 8,508,236  |         |           | $        | 1,330,435 |             |       | $ | 7,656,145 |              |  | $ | 1,091,377 |          |   | $ | 29,138,273 |        
|                 | Average loans                        |                       |   | 10,402,759 |         |  |   | 8,234,085  |         |           |          | 1,320,354 |             |       |   |          |              |  |   | (276,785  | )        |   |   | 19,680,413 |        
|                 | Average deposits                     |                       |   | 4,754,642  |         |  |   | 10,027,621 |         |           |          | 1,199,714 |             |       |   | 2,233,935 |              |  |   | (59,154   | )        |   |   | 18,156,758 |        
|                
|                 | Period-end assets                    |                       | $ | 11,056,344 |         |  | $ | 9,082,146  |         |           | $        | 1,432,297 |             |       | $ | 7,493,000 |              |  | $ | 1,070,048 |          |   | $ | 30,133,835 |        
|                 | Period-end loans                     |                       |   | 10,881,742 |         |  |   | 8,788,175  |         |           |          | 1,421,202 |             |       |   |          |              |  |   | (249,329  | )        |   |   | 20,841,790 |        
|                 | Period-end deposits                  |                       |   | 4,950,555  |         |  |   | 10,743,534 |         |           |          | 1,191,743 |             |       |   | 2,017,815 |              |  |   | (69,421   | )        |   |   | 18,834,226 |        

For the Nine Months Ended September 30, 2004


(in Thousands)


|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   |            |         | 
|---------------- | ------------------------------------ | --------------------- | - | ---------- | ------- |  | - | ---------- | ------- | --------- | -------- | --------- | ----------- | ----- | - | --------- | ------------ |  | - | --------- | -------- | - | - | ---------- | ------- | 
|                 |                                      |                       |   |            |         |  |   |            |         | Corporate |          |           |            
|                 |                                      | Corporate             |   |            | Retail  |  |   | Wealth     |         |           |          |           | Support and |       |   |          
|                 |                                      | Banking               |   |            | Banking |  |   | Management |         |           | Treasury |           |             | Other |   |           | Consolidated | 
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|Income Statement |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   |           
|                 | Net interest income                  |                       | $ | 277,374    |         |  | $ | 295,074    |         |           | $        | 40,065    |             |       | $ | 34,951    |              |  | $ | 7,745     |          |   | $ | 655,209    |        
|                 | Noninterest income                   |                       |   | 102,913    |         |  |   | 296,288    |         |           |          | 21,931    |             |       |   | 63,331    |              |  |   | (5,152    | )        |   |   | 479,311    |        
|                 | Noninterest expense                  |                       |   | 146,950    |         |  |   | 294,998    |         |           |          | 28,963    |             |       |   | 37,944    |              |  |   | 144,974   |          |   |   | 653,829    |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 |                                      | Segment income (loss) |   | $          | 233,337 |  |   | $          | 296,364 |           |          | $         | 33,033      |       |   | $         | 60,338       |  |   | $         | (142,381 | ) |   |            | 480,691 | 
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Provision for loan losses            |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   | 78,140     |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Net income before income tax expense |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   | 402,551    |        
|                 | Income tax expense                   |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   | 134,595    |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|                 | Net income                           |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   | $ | 267,956    |        
|                 |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              | 
|Balance Sheet    |                                      |                       |   |            |         |  |   |            |         |           |          |           |             |       |   |           |              |  |   |           |          |   |   |           
|                 | Average assets                       |                       | $ | 9,823,790  |         |  | $ | 7,573,620  |         |           | $        | 1,189,143 |             |       | $ | 7,649,778 |              |  | $ | 1,254,058 |          |   | $ | 27,490,389 |        
|                 | Average loans                        |                       |   | 9,680,204  |         |  |   | 7,318,660  |         |           |          | 1,180,513 |             |       |   |          |              |  |   | (416,297  | )        |   |   | 17,763,080 |        
|                 | Average deposits                     |                       |   | 4,558,991  |         |  |   | 9,246,406  |         |           |          | 1,244,210 |             |       |   | 1,182,001 |              |  |   | (39,530   | )        |   |   | 16,192,078 |        
|                
|                 | Period-end assets                    |                       | $ | 10,122,896 |         |  | $ | 7,799,878  |         |           | $        | 1,271,932 |             |       | $ | 7,599,333 |              |  | $ | 989,200   |          |   | $ | 27,783,239 |        
|                 | Period-end loans                     |                       |   | 9,986,753  |         |  |   | 7,528,562  |         |           |          | 1,263,744 |             |       |   |          |              |  |   | (359,073  | )        |   |   | 18,419,986 |        
|                 | Period-end deposits                  |                       |   | 4,811,143  |         |  |   | 9,396,096  |         |           |          | 1,216,904 |             |       |   | 1,112,580 |              |  |   | (43,111   | )        |   |   | 16,493,612 |        

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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|         |                                    
|-------- | -----------------------------------
|NOTE 7  | Loans and Allowance for Loan Losses



|                  |                                        |                        |       |           |              |            |   |           |            |            | 
|----------------- | -------------------------------------- | ---------------------- | ----- | --------- | ------------ | ---------- | - | --------- | ---------- | ---------- | 
|                  |                                        | September 30,          |       |           | December 31, |           
|                  |                                        | 2005                   |       |           | 2004         |           
|                  |                                        |                        |       |           |              |           
|                  |                                        | (In thousands)         |      
|Commercial loans: |                                        |                        |       |           |              |            |   |          
|                  | Commercial, financial and agricultural |                        | $     | 3,809,480 |              |            | $ | 3,750,063 |           
|                  | Real estate  construction             |                        |       | 3,830,403 |              |            |   | 3,027,228 |           
|                  | Commercial real estate  mortgage      |                        |       | 3,997,237 |              |            |   | 3,943,163 |           
|                  |                                        |                        |       |           |              |           
|                  |                                        | Total commercial loans |       |           | 11,637,120   |            |   |           | 10,720,454 |           
|Consumer loans:   |                                        |                        |       |           |              |            |   |          
|                  | Residential real estate  mortgage     |                        |       | 1,858,865 |              |            |   | 1,566,370 |           
|                  | Equity lines of credit                 |                        |       | 1,570,209 |              |            |   | 1,401,604 |           
|                  | Equity loans                           |                        |       | 1,132,021 |              |            |   | 1,069,614 |           
|                  | Credit card                            |                        |       | 505,248   |              |            |   | 505,090   |           
|                  | Consumer installment  direct          |                        |       | 443,689   |              |            |   | 484,657   |           
|                  | Consumer installment  indirect        |                        |       | 3,694,638 |              |            |   | 3,109,133 |           
|                  |                                        |                        |       |           |              |           
|                  |                                        | Total consumer loans   |       |           | 9,204,670    |            |   |           | 8,136,468  |           
|                  |                                        |                        |       |           |              |           
|                  |                                        |                        | Total |           | $            | 20,841,790 |   |           | $          | 18,856,922 | 
|                  |                                        |                        |       |           |              |           




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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|                                        |                                            |                                        |         |        |                   |   |         |        |       |   |         |        |        |   |         |        |        | 
|--------------------------------------- | ------------------------------------------ | -------------------------------------- | ------- | ------ | ----------------- | - | ------- | ------ | ----- | - | ------- | ------ | ------ | - | ------- | ------ | ------ | 
|                                        |                                            | Three Months Ended                     |         |        | Nine Months Ended |  
|                                        |                                            | September 30,                          |         |        | September 30,     |  
|                                        |                                            |                                        |         |        |                   |  
|                                        |                                            | 2005                                   |         |        | 2004              |   |         | 2005   |       |   | 2004    |       
|                                        |                                            |                                        |         |        |                   |   |         |        |       |   |         |       
|                                        |                                            | (In thousands)                         |        
|Balance at beginning of period          |                                            | $                                      | 254,708 |        |                   | $ | 250,573 |        |       | $ | 258,339 |        |        | $ | 244,882 |       
|Add: Provision charged to income        |                                            |                                        | 34,195  |        |                   |   | 25,617  |        |       |   | 82,268  |        |        |   | 78,140  |       
|Deduct: Allowance for loans securitized |                                            |                                        |        |        |                   |   |        |        |       |   |        |        |        |   | 591     |       
|                                        | Allowance transferred to other liabilities |                                        |         |       |                   |   |         |       |       |   |         | 12,189 |        |   |         |       |       
|                                        | Net charge-offs:                           |                                        |         |        |                   |   |         |        |       |   |         |        |        |   |         |        |       
|                                        |                                            | Commercial, financial and agricultural |         |        | 4,982             |   |         |        | 612   |   |         |        | 8,230  |   |         |        | 6,588  | 
|                                        |                                            | Real estate  construction             |         |        | 98                |   |         |        | 3     |   |         |        | 353    |   |         |        | 115    | 
|                                        |                                            | Commercial real estate  mortgage      |         |        | 541               |   |         |        | 328   |   |         |        | 1,221  |   |         |        | 2,969  | 
|                                        |                                            | Residential real estate  mortgage     |         |        | 331               |   |         |        | 489   |   |         |        | 1,106  |   |         |        | 1,004  | 
|                                        |                                            | Equity lines of credit                 |         |        | 564               |   |         |        | 812   |   |         |        | 1,224  |   |         |        | 1,889  | 
|                                        |                                            | Equity loans                           |         |        | 736               |   |         |        | 142   |   |         |        | 1,556  |   |         |        | 1,604  | 
|                                        |                                            | Credit card                            |         |        | 8,331             |   |         |        | 7,266 |   |         |        | 25,433 |   |         |        | 25,710 | 
|                                        |                                            | Consumer installment  direct          |         |        | 4,739             |   |         |        | 2,992 |   |         |        | 8,796  |   |         |        | 6,115  | 
|                                        |                                            | Consumer installment  indirect        |         |        | 8,069             |   |         |        | 7,508 |   |         |        | 19,987 |   |         |        | 20,399 | 
|                                        |                                            |                                        |         |        |                   |   |         |        |       |   |         |       
|                                        | Total net charge-offs                      |                                        |         | 28,391 |                   |   |         | 20,152 |       |   |         | 67,906 |        |   |         | 66,393 |       
|                                        |                                            |                                        |         |        |                   |   |         |        |       |   |         |       
|Balance at end of period                |                                            | $                                      | 260,512 |        |                   | $ | 256,038 |        |       | $ | 260,512 |        |        | $ | 256,038 |       
|                                        |                                            |                                        |         |        |                   |   |         |        |       |   |         |       



|                   |                           |                            |        |        |              |   |        |        |        | 
|------------------ | ------------------------- | -------------------------- | ------ | ------ | ------------ | - | ------ | ------ | ------ | 
|                   |                           | September 30,              |        |        | December 31, |  
|                   |                           | 2005                       |        |        | 2004         |  
|                   |                           |                            |        |        |              |  
|                   |                           | (In thousands)             |       
|Nonaccrual loans   |                           | $                          | 50,261 |        |              | $ | 49,947 |       
|Renegotiated loans |                           |                            | 707    |        |              |   | 734    |       
|                   |                           |                            |        |        |              |  
|                   | Total nonperforming loans |                            |        | 50,968 |              |   |        | 50,681 |       
|Other real estate  |                           |                            | 12,796 |        |              |   | 19,998 |       
|                   |                           |                            |        |        |              |  
|                   |                           | Total nonperforming assets |        | $      | 63,764       |   |        | $      | 70,679 | 
|                   |                           |                            |        |        |              |  



|         |                   
|-------- | ------------------
|NOTE 8  | Securitized Assets



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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)






|         |            
|-------- | -----------
|NOTE 9  | Investments



|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |           |           |  |   |            |        |  |   |           |           |  |   |        |        | 
|----------------------------------------- | ----------------- | --------------------------------------------------------------------- | ----- | - | ----------------------------- | --------- |  | ----- | ------ | ------ | ---------- | - | --------- | --------- |  | - | ---------- | ------ |  | - | --------- | --------- |  | - | ------ | ------ | 
|                                          |                   | Securities in a loss position                                         |       |   | Securities in a loss position |           |  |      
|                                          |                   | for less than 12 months                                               |       |   | for 12 months or longer       |           |  | Total |       
|                                          |                   |                                                                       |       |   |                               |           |  |       |       
|                                          |                   | Fair                                                                  |       |   | Unrealized                    |           |  | Fair  |        |        | Unrealized |   |           | Fair      |  |   | Unrealized |       
|                                          |                   | Value                                                                 |       |   | Losses                        |           |  | Value |        |        | Losses     |   |           | Value     |  |   | Losses     |       
|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |           |           |  |   |            |       
|                                          |                   | (In thousands)                                                        |      
|Investment securities available for sale: |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |           |           |  |   |            |        |  |   |           |           |  |  
|                                          | Debt securities:  |                                                                       |       |   |                               |           |  |       |        |        |            |   |           |           |  |   |            |        |  |   |           |           |  |   |       
|                                          |                   | U.S. Treasury and other U.S. Government agencies and
    corporations |       | $ | 45,022                        |           |  | $     | 142    |        |            | $ | 58        |           |  | $ | 1          |        |  | $ | 45,080    |           |  | $ | 143    |       
|                                          |                   | Mortgage-backed pass-through securities                               |       |   | 245,057                       |           |  |       | 3,931  |        |            |   | 184,084   |           |  |   | 5,588      |        |  |   | 429,141   |           |  |   | 9,519  |       
|                                          |                   | Collateralized mortgage obligations                                   |       |   | 1,928,454                     |           |  |       | 27,753 |        |            |   | 1,553,705 |           |  |   | 33,017     |        |  |   | 3,482,159 |           |  |   | 60,770 |       
|                                          |                   | Asset-backed securities and corporate bonds                           |       |   |                              |           |  |       |       |        |            |   |          |           |  |   |           |        |  |   |          |           |  |   |       |       
|                                          |                   | States and political subdivisions                                     |       |   | 35,621                        |           |  |       | 567    |        |            |   |          |           |  |   |           |        |  |   | 35,621    |           |  |   | 567    |       
|                                          |                   | Other                                                                 |       |   |                              |           |  |       |       |        |            |   |          |           |  |   |           |        |  |   |          |           |  |   |       |       
|                                          | Equity securities |                                                                       |       |  |                               |           |  |      |        |        |            |  |           |           |  |  |            |        |  |  |           |           |  |  |       
|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |           |           |  |   |            |       
|                                          |                   |                                                                       | Total |   | $                             | 2,254,154 |  |       | $      | 32,393 |            |   | $         | 1,737,847 |  |   | $          | 38,606 |  |   | $         | 3,992,001 |  |   | $      | 70,999 | 
|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |           |           |  |   |            |       







|          |                                                      
|--------- | -----------------------------------------------------
|NOTE 10  | Off-Balance Sheet Activities, Derivatives and Hedging



| |                                                                 
| | ----------------------------------------------------------------
| | Accounting for Derivative Instruments and Hedging
    Activities



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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|                               |                                |                          |         |           |              |   |        |         |       |   |         |           |  |   |        |         | 
|------------------------------ | ------------------------------ | ------------------------ | ------- | --------- | ------------ | - | ------ | ------- | ----- | - | ------- | --------- |  | - | ------ | ------- | 
|                               |                                | September 30,            |         |           | December 31, |  
|                               |                                | 2005                     |         |           | 2004         |  
|                               |                                |                          |         |           |              |  
|                               |                                |                          |         | Other     |              |   |        |         | Other |  
|                               |                                |                          |         | Than      |              |   |        |         | Than  |  
|                               |                                | Trading                  |         |           | Trading      |   |        | Trading |       |   | Trading |          
|                               |                                |                          |         |           |              |   |        |         |       |   |         |          
|                               |                                | (In thousands, restated) |        
|Forward and futures contracts  |                                | $                        | 259,708 |           |              | $ | 39,455 |         |       | $ | 271,863 |           |  | $ | 18,708 |        
|Interest rate swap agreements: |                                |                          |         |           |              |   |        |         |       |   |         |           |  |   |        |        
|                               | Pay fixed versus receive float |                          |         | 1,642,488 |              |   |        | 200,000 |       |   |         | 1,384,586 |  |   |        |        | 
|                               | Receive fixed versus pay float |                          |         | 2,138,937 |              |   |        | 761,700 |       |   |         | 1,944,325 |  |   |        | 961,700 | 
|Written options                |                                |                          | 239,319 |           |              |   | 44,397 | (1)     |       |   | 63,229  |           |  |   | 19,812 | (1)    
|Purchased options              |                                |                          | 286,584 |           |              |   |       |         |       |   | 97,358  |           |  |   |       |        






|    |                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Written options classified as other than trading represent
    interest rate loan commitments related to the Companys
    mortgage banking activities



over-the


|                   |                               |                          |   |         |              |  |   |          |   |  |          |         |  |  |   |        |  
|------------------ | ----------------------------- | ------------------------ | - | ------- | ------------ |  | - | -------- | - |  | -------- | ------- |  |  | - | ------ | -
|                   |                               | September 30,            |   |         | December 31, | 
|                   |                               | 2005                     |   |         | 2004         | 
|                   |                               |                          |   |         |              | 
|                   |                               | Notional                 |   |         | Carrying     |  |   | Notional |   |  | Carrying |        
|                   |                               | Value                    |   |         | Value        |  |   | Value    |   |  | Value    |        
|                   |                               |                          |   |         |              |  |   |          |   |  |          |        
|                   |                               | (In thousands, restated) |  
|Cash Flow Hedges:  |                               |                          |   |         |              |  |   |          |   |  |          |         |  |  |   |       
|                   | Interest rate swap agreements |                          | $ | 400,000 |              |  | $ | (2,370   | ) |  | $        | 700,000 |  |  | $ | (3,654 | )
|Fair Value Hedges: |                               |                          |   |         |              |  |   |          |   |  |          |         |  |  |   |       
|                   | Interest rate swap agreements |                          |   | 561,700 |              |  |   | 33,199   |   |  |          | 261,700 |  |  |   | 33,444 |  
|                   | Forward contracts(1)          |                          |   | 39,455  |              |  |   | (184     | ) |  |          | 18,708  |  |  |   | 9      |  






|    |                                                                     
|--- | --------------------------------------------------------------------
|(1) | Derivatives related to the Companys mortgage banking
    activities



| |                   
| | ------------------
| | Interest-Rate Risk





| |                  
| | -----------------
| | Fair-Value Hedges



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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)








| |                 
| | ----------------
| | Cash-Flow Hedges





| |                             
| | ----------------------------
| | Off-Balance Sheet Activities

P-1/F1




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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)








|          |                     
|--------- | --------------------
|NOTE 11  | Shareholders Equity









|          |                                              
|--------- | ---------------------------------------------
|NOTE 12  | Goodwill and Other Acquired Intangible Assets



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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)






|                              |                            |                                    |         |        |              |   |         |              |         |   |         |        |        | 
|----------------------------- | -------------------------- | ---------------------------------- | ------- | ------ | ------------ | - | ------- | ------------ | ------- | - | ------- | ------ | ------ | 
|                              |                            | As of September 30, 2005           |        
|                              |                            |                                    |        
|                              |                            | Gross Carrying                     |         |        | Accumulated  |   |         | Net Carrying |        
|                              |                            | Amount                             |         |        | Amortization |   |         | Value        |        
|                              |                            |                                    |         |        |              |   |         |              |        
|                              |                            | (In thousands)                     |        
|Nonamortizing goodwill        |                            | $                                  | 369,973 |        |              | $ | (53,733 | )            |         | $ | 316,240 |       
|                              |                            |                                    |         |        |              |   |         |              |        
|Amortizing intangible assets: |                            |                                    |         |        |              |   |         |              |         |   |         |       
|                              | Core deposit intangibles   |                                    | $       | 58,043 |              |   | $       | (50,064      | )       |   | $       | 7,979  |       
|                              | Other customer intangibles |                                    |         | 43,334 |              |   |         | (12,684      | )       |   |         | 30,650 |       
|                              |                            |                                    |         |        |              |   |         |              |        
|                              |                            | Total amortizing intangible assets |         | $      | 101,377      |   |         | $            | (62,748 | ) |         | $      | 38,629 | 
|                              |                            |                                    |         |        |              |   |         |              |        





|          |                              
|--------- | -----------------------------
|NOTE 13  | Commitments and Contingencies







|                                         |  |                |            |  |              |   |            | 
|---------------------------------------- |  | -------------- | ---------- |  | ------------ | - | ---------- | 
|                                         |  | September 30,  |            |  | December 31, |  
|                                         |  | 2005           |            |  | 2004         |  
|                                         |  |                |            |  |              |  
|                                         |  | (In thousands) |           
|Commitments to extend credit             |  | $              | 10,839,234 |  |              | $ | 11,265,440 | 
|Standby and commercial letters of credit |  |                | 823,009    |  |              |   | 716,195    | 

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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)
















28



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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|          |                             
|--------- | ----------------------------
|NOTE 14  | Defined Benefit Pension Plan



|                                   |                           |                    |        |       |                   |   |        |       |  |   |        |       |  |   |        |       | 
|---------------------------------- | ------------------------- | ------------------ | ------ | ----- | ----------------- | - | ------ | ----- |  | - | ------ | ----- |  | - | ------ | ----- | 
|                                   |                           | Three Months Ended |        |       | Nine Months Ended |  
|                                   |                           | September 30,      |        |       | September 30,     |  
|                                   |                           |                    |        |       |                   |  
|                                   |                           | 2005               |        |       | 2004              |   |        | 2005  |  |   | 2004   |      
|                                   |                           |                    |        |       |                   |   |        |       |  |   |        |      
|                                   |                           | (In thousands)     |       
|Service cost                       |                           | $                  | 1,902  |       |                   | $ | 1,770  |       |  | $ | 5,706  |       |  | $ | 5,185  |      
|Interest cost                      |                           |                    | 2,381  |       |                   |   | 2,191  |       |  |   | 7,145  |       |  |   | 6,415  |      
|Expected return on plan assets     |                           |                    | (3,189 | )     |                   |   | (3,016 | )     |  |   | (9,267 | )     |  |   | (8,329 | )    
|Amortization of prior service cost |                           |                    | 9      |       |                   |   | 9      |       |  |   | 26     |       |  |   | 26     |      
|Amortization of net loss           |                           |                    | 797    |       |                   |   | 424    |       |  |   | 2,392  |       |  |   | 1,241  |      
|                                   |                           |                    |        |       |                   |   |        |       |  |   |        |      
|                                   | Net periodic benefit cost |                    | $      | 1,900 |                   |   | $      | 1,378 |  |   | $      | 6,002 |  |   | $      | 4,538 | 
|                                   |                           |                    |        |       |                   |   |        |       |  |   |        |      





|          |                                     
|--------- | ------------------------------------
|NOTE 15  | Recently Issued Accounting Standards



| |                                            
| | -------------------------------------------
| | Consolidation of Variable Interest Entities

Consolidation of Variable Interest Entities. Consolidation
of Variable Interest Entities, an interpretation of ARB
No. 51,




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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)






| |                                                                           
| | --------------------------------------------------------------------------
| | Accounting for Certain Loans or Debt Securities Acquired
    in a Transfer

Accounting for Certain Loans or Debt
Securities Acquired in a Transfer.




| |                     
| | --------------------
| | Share-Based Payments

Share-Based Payments. number 33-8568




| |                                
| | -------------------------------
| | Exchanges of Nonmonetary Assets

Exchanges of Nonmonetary Assets, an Amendment of APB Opinion
No. 29.




| |                                         
| | ----------------------------------------
| | Accounting Changes and Error Corrections

Accounting Changes and Error Corrections, a Replacement of
APB Opinion 20 and FASB Statement No. 3.


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Item 2  Managements Discussion and
Analysis of Results of Operations and Financial Condition


2005 RESTATEMENT


Form 10-Q Form 10-K Form 10-Q Form 10-K 10-Q Accounting for
Derivative Instruments and Hedging Activities


Form 10-K Form 10-Q.






|                           |  |                |         |               |      |   |              |      |  |              |        |   |              |      |         |              |      |   |        |  |  |   |       | 
|-------------------------- |  | -------------- | ------- | ------------- | ---- | - | ------------ | ---- |  | ------------ | ------ | - | ------------ | ---- | ------- | ------------ | ---- | - | ------ |  |  | - | ----- | 
|                           |  |                |         | Nine Months   |      |   |              |      |  |              |        |   |             
|                           |  |                |         | Ended         |      |   | Year Ended   |      |  | Year Ended   |        |   | Year Ended   |      |         | Year Ended   |     
|                           |  |                |         | September 30, |      |   | December 31, |      |  | December 31, |        |   | December 31, |      |         | December 31, |     
|                           |  | Total          |         |               | 2005 |   |              | 2004 |  |              | 2003   |   |              | 2002 |         |              | 2001 |  
|                           |  |                |         |               |      |   |              |      |  |              |        |   |              |      |         |              |      |  
|                           |  | (In Thousands) |        
|Interest expense           |  | $              | 94,665  |               |      | $ | 11,248       |      |  | $            | 26,503 |   |              | $    | 30,400  |              |      | $ | 23,146 |  |  | $ | 3,368 | 
|Noninterest income         |  |                | 101,705 |               |      |   | 669          |      |  |              | 11,053 |   |              |      | 9,320   |              |      |   | 71,006 |  |  |   | 9,657 | 
|Provision for income Taxes |  |                | 2,514   |               |      |   | (4,013       | )    |  |              | (5,851 | ) |              |      | (7,890  | )            |      |   | 17,914 |  |  |   | 2,354 | 
|                           |  |                |         |               |      |   |              |      |  |              |        |   |              |      |         |              |      |  
|Net income                 |  | $              | 4,526   |               |      | $ | (6,566       | )    |  | $            | (9,599 | ) |              | $    | (13,190 | )            |      | $ | 29,946 |  |  | $ | 3,935 | 
|                           |  |                |         |               |      |   |              |      |  |              |        |   |              |      |         |              |      |  
|Diluted earnings per Share |  | $              | 0.02    |               |      | $ | (0.05        | )    |  | $            | (0.08  | ) |              | $    | (0.11   | )            |      | $ | 0.23   |  |  | $ | 0.03  | 

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|                           |  |       |        |                       |      |   |          |      |  |               |       |  |  |   |        |  
|-------------------------- |  | ----- | ------ | --------------------- | ---- | - | -------- | ---- |  | ------------- | ----- |  |  | - | ------ | -
|                           |  |       |        | For the Quarter Ended |     
|                           |  |       |        |                       |     
|                           |  |       |        | March 31,             |      |   | June 30, |      |  | September 30, |      
|                           |  | Total |        |                       | 2005 |   |          | 2005 |  |               | 2005  | 
|                           |  |       |        |                       |      |   |          |      |  |               |       | 
|                           |  |       |        | (In Thousands)        |     
|Interest expense           |  | $     | 11,248 |                       |      | $ | 4,703    |      |  | $             | 3,716 |  |  | $ | 2,829  |  
|Noninterest income         |  |       | 669    |                       |      |   | (4,596   | )    |  |               | 9,414 |  |  |   | (4,149 | )
|Provision for income taxes |  |       | (4,013 | )                     |      |   | (3,527   | )    |  |               | 2,161 |  |  |   | (2,647 | )
|                           |  |       |        |                       |      |   |          |      |  |               |       | 
|Net income                 |  | $     | (6,566 | )                     |      | $ | (5,772   | )    |  | $             | 3,537 |  |  | $ | (4,331 | )
|                           |  |       |        |                       |      |   |          |      |  |               |       | 
|Diluted earnings per share |  | $     | (0.05  | )                     |      | $ | (0.04    | )    |  | $             | 0.02  |  |  | $ | (0.03  | )

|                           |  |       |        |                       |      |   |          |      |  |               |         |   |              |      |        |  |  |   |        |  
|-------------------------- |  | ----- | ------ | --------------------- | ---- | - | -------- | ---- |  | ------------- | ------- | - | ------------ | ---- | ------ |  |  | - | ------ | -
|                           |  |       |        | For the Quarter Ended |     
|                           |  |       |        |                       |     
|                           |  |       |        | March 31,             |      |   | June 30, |      |  | September 30, |         |   | December 31, |     
|                           |  | Total |        |                       | 2004 |   |          | 2004 |  |               | 2004    |   |              | 2004 |       
|                           |  |       |        |                       |      |   |          |      |  |               |         |   |              |      |       
|                           |  |       |        | (In Thousands)        |     
|Interest expense           |  | $     | 26,503 |                       |      | $ | 7,115    |      |  | $             | 7,161   |   |              | $    | 6,646  |  |  | $ | 5,581  |  
|Noninterest income         |  |       | 11,053 |                       |      |   | 12,554   |      |  |               | (12,360 | ) |              |      | 14,873 |  |  |   | (4,014 | )
|Provision for income Taxes |  |       | (5,851 | )                     |      |   | 2,060    |      |  |               | (7,393  | ) |              |      | 3,116  |  |  |   | (3,634 | )
|                           |  |       |        |                       |      |   |          |      |  |               |         |   |              |      |       
|Net income                 |  | $     | (9,599 | )                     |      | $ | 3,379    |      |  | $             | (12,128 | ) |              | $    | 5,111  |  |  | $ | (5,961 | )
|                           |  |       |        |                       |      |   |          |      |  |               |         |   |              |      |       
|Diluted earnings per Share |  | $     | (0.08  | )                     |      | $ | 0.03     |      |  | $             | (0.10   | ) |              | $    | 0.04   |  |  | $ | (0.05  | )

|                           |  |       |         |                       |      |   |          |      |  |               |        |  |              |      |        |   |  |   |        |  
|-------------------------- |  | ----- | ------- | --------------------- | ---- | - | -------- | ---- |  | ------------- | ------ |  | ------------ | ---- | ------ | - |  | - | ------ | -
|                           |  |       |         | For the Quarter Ended |     
|                           |  |       |         |                       |     
|                           |  |       |         | March 31,             |      |   | June 30, |      |  | September 30, |        |  | December 31, |     
|                           |  | Total |         |                       | 2003 |   |          | 2003 |  |               | 2003   |  |              | 2003 |       
|                           |  |       |         |                       |      |   |          |      |  |               |        |  |              |      |       
|                           |  |       |         | (In Thousands)        |     
|Interest expense           |  | $     | 30,400  |                       |      | $ | 7,868    |      |  | $             | 8,202  |  |              | $    | 7,288  |   |  | $ | 7,042  |  
|Noninterest income         |  |       | 9,320   |                       |      |   | 1,924    |      |  |               | 13,978 |  |              |      | (5,326 | ) |  |   | (1,256 | )
|Provision for income Taxes |  |       | (7,890  | )                     |      |   | (2,225   | )    |  |               | 2,162  |  |              |      | (4,721 | ) |  |   | (3,106 | )
|                           |  |       |         |                       |      |   |          |      |  |               |        |  |              |      |       
|Net income                 |  | $     | (13,190 | )                     |      | $ | (3,719   | )    |  | $             | 3,614  |  |              | $    | (7,893 | ) |  | $ | (5,192 | )
|                           |  |       |         |                       |      |   |          |      |  |               |        |  |              |      |       
|Diluted earnings per Share |  | $     | (0.11   | )                     |      | $ | (0.03    | )    |  | $             | 0.03   |  |              | $    | (0.06  | ) |  | $ | (0.05  | )



Results of Operations


Forward-Looking Information






32



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Form 10-Q Form 10-K www.sec.gov www.compassbank.com


Overview








Net Interest Income








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|                                                           |  |                          |        |  |          |   |       |               |  |   |              |  |  |       |       |  |  |   |        | 
|---------------------------------------------------------- |  | ------------------------ | ------ |  | -------- | - | ----- | ------------- |  | - | ------------ |  |  | ----- | ----- |  |  | - | ------ | 
|                                                           |  | For the Quarter Ending   |        |  |         
|                                                           |  |                          |        |  |         
|                                                           |  | March 31,                |        |  | June 30, |   |       | September 30, |  |   | December 31, |  |  |      
|                                                           |  | 2004                     |        |  | 2004     |   |       | 2004          |  |   | 2004         |  |  |      
|                                                           |  | Actual                   |        |  | Actual   |   |       | Actual        |  |   | Actual       |  |  | Total |      
|                                                           |  |                          |        |  |          |   |       |               |  |   |              |  |  |       |      
|                                                           |  | (In Thousands, Restated) |        |  |         
|Hedging derivatives positive impact to net interest margin |  | $                        | 11,240 |  |          | $ | 7,471 |               |  | $ | 6,019        |  |  | $     | 4,101 |  |  | $ | 28,831 | 
|                                                           |  |                          |        |  |          |   |       |               |  |   |              |  |  |       |      

|                                                               |  |                          |       |  |          |   |       |               |  |   |              |  |  |            |       |  |  |   |        | 
|-------------------------------------------------------------- |  | ------------------------ | ----- |  | -------- | - | ----- | ------------- |  | - | ------------ |  |  | ---------- | ----- |  |  | - | ------ | 
|                                                               |  | For the Quarter Ending   |       |  |         
|                                                               |  |                          |       |  |         
|                                                               |  | March 31,                |       |  | June 30, |   |       | September 30, |  |   | December 31, |  |  |           
|                                                               |  | 2005                     |       |  | 2005     |   |       | 2005          |  |   | 2005         |  |  | Total      |      
|                                                               |  | Actual                   |       |  | Actual   |   |       | Actual        |  |   | Projected*   |  |  | Projected* |      
|                                                               |  |                          |       |  |          |   |       |               |  |   |              |  |  |            |      
|                                                               |  | (In Thousands, Restated) |       |  |         
|Hedging derivatives positive impact to net
    interest margin |  | $                        | 2,455 |  |          | $ | 3,012 |               |  | $ | 3,546        |  |  | $          | 1,855 |  |  | $ | 10,868 | 
|                                                               |  |                          |       |  |          |   |       |               |  |   |              |  |  |            |      






|  |                                                                                     
|- | ------------------------------------------------------------------------------------
|* | Projected impact based on interest rates remaining at
    September 30, 2005 levels.

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|                                    |                                                |                            |   |   |                                 |  |   |         |   |  |            |   |   |  |   |         |  
|----------------------------------- | ---------------------------------------------- | -------------------------- | - | - | ------------------------------- |  | - | ------- | - |  | ---------- | - | - |  | - | ------- | -
|                                    |                                                | October 1, 2005            |   |   |                                
|                                    |                                                | through                    |   |   | For the Year Ended December 31, | 
|                                    |                                                | December 31,               |   |   |                                 | 
|                                    |                                                | 2005                       |   |   | 2006                            |  |   | 2007    |   |  | Thereafter |  
|                                    |                                                |                            |   |   |                                 |  |   |         |   |  |            |  
|                                    |                                                | ($ In Thousands, Restated) |  
|Non-trading interest rate contracts |                                                |                            |   |   |                                 |  |   |         |   |  |            |   |   |  |   |        
|Cash Flow Hedges                    |                                                |                            |   |   |                                 |  |   |         |   |  |            |   |   |  |   |        
|                                    | Notional maturity                              |                            | $ |  |                                 |  | $ | 400,000 |   |  | $          |  |   |  | $ |        |  
|                                    | Weighted average coupon received on maturities |                            |   |  | %                               |  |   | 2.93    | % |  |            |  | % |  |   |        | %
|                                    | Weighted average time to maturity (months)     |                            |   |  |                                 |  |   | 9       |   |  |            |  |   |  |   |        |  
|Fair Value Hedges                   |                                                |                            |   |   |                                 |  |   |         |   |  |            |   |   |  |   |        
|                                    | Notional maturity                              |                            | $ |  |                                 |  | $ |        |   |  | $          |  |   |  | $ | 561,700 |  
|                                    | Weighted average coupon received on maturities |                            |   |  | %                               |  |   |        | % |  |            |  | % |  |   | 6.43    | %
|                                    | Weighted average time to maturity (months)     |                            |   |  |                                 |  |   |        |   |  |            |  |   |  |   | 116     |  



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|                  |                                                                                |                                       |   |        |               |  |   |        |        |  |     |        |        |  |   |       |       | 
|----------------- | ------------------------------------------------------------------------------ | ------------------------------------- | - | ------ | ------------- |  | - | ------ | ------ |  | --- | ------ | ------ |  | - | ----- | ----- | 
|                  |                                                                                | Three Months Ended September 30, 2005 |  
|                  |                                                                                |                                       |  
|                  |                                                                                | Change                                |   |        | Attributed to | 
|                  |                                                                                | 2004 To                               |   |        |               | 
|                  |                                                                                | 2005                                  |   |        | Volume        |  |   | Rate   |        |  | Mix |       
|                  |                                                                                |                                       |   |        |               |  |   |        |        |  |     |       
|Interest income:  |                                                                                |                                       |   |        |               |  |   |        |        |  |     |        |        |  |   |      
|                  | Federal funds sold and securities purchased under agreements to
    resell     |                                       | $ | 108    |               |  | $ | (110   | )      |  | $   | 358    |        |  | $ | (140  | )    
|                  | Trading account assets                                                         |                                       |   | 110    |               |  |   | 112    |        |  |     | (1     | )      |  |   | (1    | )    
|                  | Investment securities available for sale                                       |                                       |   | 5,384  |               |  |   | 1,795  |        |  |     | 3,445  |        |  |   | 144   |      
|                  | Investment securities held to maturity                                         |                                       |   | (5,183 | )             |  |   | (6,769 | )      |  |     | 1,962  |        |  |   | (376  | )    
|                  | Loans                                                                          |                                       |   | 82,801 |               |  |   | 30,974 |        |  |     | 45,872 |        |  |   | 5,955 |      
|                  |                                                                                |                                       |   |        |               |  |   |        |        |  |     |       
|                  |                                                                                | Increase in interest income           |   | $      | 83,220        |  |   | $      | 26,002 |  |     | $      | 51,636 |  |   | $     | 5,582 | 
|                  |                                                                                |                                       |   |        |               |  |   |        |        |  |     |       
|Interest expense: |                                                                                |                                       |   |        |               |  |   |        |        |  |     |        |        |  |   |      
|                  | Deposits                                                                       |                                       | $ | 28,761 |               |  | $ | 12,545 |        |  | $   | 14,159 |        |  | $ | 2,057 |      
|                  | Federal funds purchased and securities sold under agreements to
    repurchase |                                       |   | 21,756 |               |  |   | (206   | )      |  |     | 22,259 |        |  |   | (297  | )    
|                  | Other short-term borrowings                                                    |                                       |   | 1,023  |               |  |   | 200    |        |  |     | 547    |        |  |   | 276   |      
|                  | FHLB and other borrowings                                                      |                                       |   | 4,124  |               |  |   | (3,826 | )      |  |     | 8,772  |        |  |   | (822  | )    
|                  |                                                                                |                                       |   |        |               |  |   |        |        |  |     |       
|                  |                                                                                | Increase in interest expense          |   | $      | 55,664        |  |   | $      | 8,713  |  |     | $      | 45,737 |  |   | $     | 1,214 | 
|                  |                                                                                |                                       |   |        |               |  |   |        |        |  |     |       

|                  |                                                                                |                                      |   |         |               |  |   |         |        |  |     |         |         |  |   |        |        | 
|----------------- | ------------------------------------------------------------------------------ | ------------------------------------ | - | ------- | ------------- |  | - | ------- | ------ |  | --- | ------- | ------- |  | - | ------ | ------ | 
|                  |                                                                                | Nine Months Ended September 30, 2005 |  
|                  |                                                                                |                                      |  
|                  |                                                                                | Change                               |   |         | Attributed to | 
|                  |                                                                                | 2004 To                              |   |         |               | 
|                  |                                                                                | 2005                                 |   |         | Volume        |  |   | Rate    |        |  | Mix |        
|                  |                                                                                |                                      |   |         |               |  |   |         |        |  |     |        
|Interest income:  |                                                                                |                                      |   |         |               |  |   |         |        |  |     |         |         |  |   |       
|                  | Federal funds sold and securities purchased under agreements to
    resell     |                                      | $ | 421     |               |  | $ | (137    | )      |  | $   | 723     |         |  | $ | (165   | )     
|                  | Trading account assets                                                         |                                      |   | 213     |               |  |   | 204     |        |  |     | 6       |         |  |   | 3      |       
|                  | Investment securities available for sale                                       |                                      |   | 2,312   |               |  |   | 4,092   |        |  |     | (1,729  | )       |  |   | (51    | )     
|                  | Investment securities held to maturity                                         |                                      |   | (16,212 | )             |  |   | (16,835 | )      |  |     | 736     |         |  |   | (113   | )     
|                  | Loans                                                                          |                                      |   | 190,946 |               |  |   | 74,917  |        |  |     | 104,725 |         |  |   | 11,304 |       
|                  |                                                                                |                                      |   |         |               |  |   |         |        |  |     |        
|                  |                                                                                | Increase in interest income          |   | $       | 177,680       |  |   | $       | 62,241 |  |     | $       | 104,461 |  |   | $      | 10,978 | 
|                  |                                                                                |                                      |   |         |               |  |   |         |        |  |     |        
|Interest expense: |                                                                                |                                      |   |         |               |  |   |         |        |  |     |         |         |  |   |       
|                  | Deposits                                                                       |                                      | $ | 61,135  |               |  | $ | 26,904  |        |  | $   | 25,890  |         |  | $ | 8,341  |       
|                  | Federal funds purchased and securities sold under agreements to
    repurchase |                                      |   | 57,428  |               |  |   | 240     |        |  |     | 56,804  |         |  |   | 384    |       
|                  | Other short-term borrowings                                                    |                                      |   | 2,134   |               |  |   | 366     |        |  |     | 1,207   |         |  |   | 561    |       
|                  | FHLB and other borrowings                                                      |                                      |   | (3,315  | )             |  |   | (17,568 | )      |  |     | 16,430  |         |  |   | (2,177 | )     
|                  |                                                                                |                                      |   |         |               |  |   |         |        |  |     |        
|                  |                                                                                | Increase in interest expense         |   | $       | 117,382       |  |   | $       | 9,942  |  |     | $       | 100,331 |  |   | $      | 7,109  | 
|                  |                                                                                |                                      |   |         |               |  |   |         |        |  |     |        

Noninterest Income and Noninterest Expense




36



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mark-to




Income Taxes




Provision and Allowance for Loan Losses




37



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Nonperforming Assets and Past Due Loans











38



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Allowance for Loan Losses/ Nonperforming Assets


(in thousands)


(Unaudited)


|                                                              |  |                                 |         |   |      |   |         |  
|------------------------------------------------------------- |  | ------------------------------- | ------- | - | ---- | - | ------- | -
|                                                              |  | Nine Months Ended September 30, |        
|                                                              |  |                                 |        
|                                                              |  | 2005                            |         |   | 2004 |  
|                                                              |  |                                 |         |   |      |  
|Allowance for Loan Losses                                     |  |                                 |         |   |      |   |         |  
|Balance at beginning of period                                |  | $                               | 258,339 |   |      | $ | 244,882 |  
|Add: Provision charged to income                              |  |                                 | 82,268  |   |      |   | 78,140  |  
|Deduct: Allowance for loans securitized                       |  |                                 |        |   |      |   | 591     |  
|Allowance
    transferred to other liabilities                |  |                                 | 12,189  |   |      |   |        |  
|Loans charged off                                             |  |                                 | 89,956  |   |      |   | 86,161  |  
|Loan recoveries                                               |  |                                 | (22,050 | ) |      |   | (19,768 | )
|                                                              |  |                                 |         |   |      |  
|Net charge-offs                                               |  |                                 | 67,906  |   |      |   | 66,393  |  
|                                                              |  |                                 |         |   |      |  
|Balance at end of period                                      |  | $                               | 260,512 |   |      | $ | 256,038 |  
|                                                              |  |                                 |         |   |      |  
|Net charge-offs as a percentage of average loans (annualized) |  |                                 | 0.46    | % |      |   | 0.50    | %

|                                                                         |                            |                    |        |        |                   |   |        |        | 
|------------------------------------------------------------------------ | -------------------------- | ------------------ | ------ | ------ | ----------------- | - | ------ | ------ | 
|                                                                         |                            | September 30, 2005 |        |        | December 31, 2004 |  
|                                                                         |                            |                    |        |        |                   |  
|Nonperforming Assets                                                     |                            |                    |        |        |                   |   |        |       
|Nonaccrual loans                                                         |                            | $                  | 50,261 |        |                   | $ | 49,947 |       
|Renegotiated loans                                                       |                            |                    | 707    |        |                   |   | 734    |       
|                                                                         |                            |                    |        |        |                   |  
|                                                                         | Total nonperforming loans  |                    |        | 50,968 |                   |   |        | 50,681 | 
|Other real estate                                                        |                            |                    | 12,796 |        |                   |   | 19,998 |       
|                                                                         |                            |                    |        |        |                   |  
|                                                                         | Total nonperforming assets |                    | $      | 63,764 |                   |   | $      | 70,679 | 
|                                                                         |                            |                    |        |        |                   |  
|Accruing loans ninety days or more past due                              |                            | $                  | 14,510 |        |                   | $ | 15,509 |       
|Other repossessed assets                                                 |                            |                    | 685    |        |                   |   | 656    |       
|Allowance as a percentage of loans                                       |                            |                    | 1.25   | %      |                   |   | 1.37   | %     
|Total nonperforming loans as a percentage of loans                       |                            |                    | 0.24   |        |                   |   | 0.27   |       
|Total nonperforming assets as a percentage of loans and ORE              |                            |                    | 0.31   |        |                   |   | 0.37   |       
|Accruing loans ninety days or more past due as a percentage of
    loans |                            |                    | 0.07   |        |                   |   | 0.08   |       
|Allowance for loan losses as a percentage of nonperforming loans         |                            |                    | 511.13 |        |                   |   | 509.74 |       
|Allowance for loan losses as a percentage of nonperforming assets        |                            |                    | 408.56 |        |                   |   | 365.51 |       

39



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##### Table of Contents



Financial Condition


Overview




Assets and Funding






Liquidity and Capital Resources


day-to








40



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##### Table of Contents













41



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##### Table of Contents






Item 4  Controls and Procedures




|    |             
|--- | ------------
|(a) | Restatement.







|    |                                                 
|--- | ------------------------------------------------
|(b) | Evaluation of Disclosure Controls and Procedures





| |                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a failure to ensure the correct application of generally
    accepted accounting principles, including SFAS 133 and its
    related interpretations for certain derivative transactions, as
    described in (a) above, and failure to correct that error
    subsequently.





|    |                                                         
|--- | --------------------------------------------------------
|(c) | Remediation of Material Weakness in Internal
    Control





| |    |                                                                                                                                                                                                                                                                                                               
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | improved training, education and accounting reviews designed to
    ensure that all relevant personnel involved in derivatives
    transactions understand and apply hedge accounting in compliance
    with generally accepted accounting principles, including
    SFAS 133 and its related interpretations;
|
| | 2. | retested our internal financial controls with respect to the
    types of hedging transactions affected by the restatement to
    ensure compliance with generally accepted accounting principles,
    including SFAS 133 and its related interpretations;                                                    
|
| | 3. | updated our derivative policy to specifically require
    utilization of the long-haul method for documenting
    the effectiveness of swaps related to brokered certificates of
    deposit and Trust Preferred debt; and                                                                                  

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| |    |                                                                                                                                                                                                               
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4. | redesignated all swaps related to brokered certificates of
    deposit and Trust Preferred debt during the fourth quarter,
    to be subject to the long-haul method of documenting
    hedge effectiveness.

Form 10-Q,




(d) Managements
Annual Report on Internal Control Over Financial Reporting (as
restated)






Internal Control 
Integrated Framework Form 10-K/A, Form 10-Q/A,




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##### Table of Contents



COMPASS BANCSHARES, INC. AND SUBSIDIARIES







|         |                  
|-------- | -----------------
|PART II. | OTHER INFORMATION




Item 1  Legal Proceedings







Item 2  Unregistered Sales of Equity
Securities and Use of Proceeds




|                                       |       |                      |       |       |                |                  |       |             |                     |  |                    |   |  |  |           |  | 
|-------------------------------------- | ----- | -------------------- | ----- | ----- | -------------- | ---------------- | ----- | ----------- | ------------------- |  | ------------------ | - |  |  | --------- |  | 
|                                       |       |                      |       |       |                | Total Number     |       |             |                    
|                                       |       |                      |       |       |                | of Shares        |       |             |                    
|                                       |       |                      |       |       |                | Purchased as     |       |             | Maximum Number of   | 
|                                       |       |                      |       |       |                | Part of Publicly |       |             | Shares that May Yet | 
|                                       |       | Total Number of      |       |       | Average Price  |                  |       | Announced   |                     |  | Be Purchased Under |  
|                                       |       | Shares Purchased (1) |       |       | Paid Per Share |                  |       | Program (2) |                     |  | the Program (2)    |  
|                                       |       |                      |       |       |                |                  |       |             |                     |  |                    |  
|July 1  July 31, 2005                 |       |                      | 2,120 |       |                | $                | 47.31 |             |                     |  |                   |   |  |  | 4,338,600 | 
|August 1, 2005  August 31, 2005       |       |                      | 396   |       |                | $                | 46.72 |             |                     |  |                   |   |  |  | 4,338,600 | 
|September 1, 2005  September 30, 2005 |       |                      |      |       |                | $                |      |             |                     |  |                   |   |  |  | 4,338,600 | 
|                                       |       |                      |       |       |                |                  |       |             |                     |  |                    |  
|                                       | Total |                      |       | 2,516 |                |                  | $     | 47.22       |                     |  |                    |  |  |  |           |  | 
|                                       |       |                      |       |       |                |                  |       |             |                     |  |                    |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | This column includes (a) purchases of equity instruments
    under the Companys publicly announced share repurchase
    programs described in (2) below and (b) the surrender
    to the Company by plan participants of shares of common stock to
    satisfy the exercise price related to the exercise of employee
    stock options during the period indicated.                                                                                                                                                                                                                                                                                                           
|   
|(2) | On January 16, 2003, the Company announced that its Board
    of Directors had authorized management to
    purchase 6.3 million shares of the Companys
    outstanding common stock from time to time through open market
    transactions either directly or through brokers or agents, and
    has no expiration date. Additionally, on August 16, 2003,
    the Company announced that its Board of Directors had authorized
    management to purchase an additional 4.1 million shares of
    the Companys outstanding common stock from time to time
    through open market transactions either directly or through
    brokers or agents, and has no expiration date.




Item 6  Exhibits


|    |  |                                                                   |  |                                                                                                                                                                                                                                                                                                                                             
|--- |  | ----------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) |  | Articles of Incorporation and By-Laws of Compass Bancshares, Inc.
|    |  | (a)                                                               |  | Restated Certificate of Incorporation of Compass Bancshares,
    Inc., as amended, dated May 17, 1982 (incorporated by
    reference to Exhibit 3(a) to Compass Bancshares,
    Inc.s December 31, 1997 Form 10-K, file number
    000-06032, filed March 23, 1998 with the Commission)                                                    
|    |  | (b)                                                               |  | Certificate of Amendment, dated May 20, 1986, to Restated
    Certificate of Incorporation of Compass Bancshares, Inc.
    (incorporated by reference to Exhibit 3.2 to Compass
    Bancshares, Inc.s Registration Statement on Form S-4,
    Registration No. 33-46086, filed with the Commission)                                        
|    |  | (c)                                                               |  | Certificate of Amendment, dated May 15, 1987, to Restated
    Certificate of Incorporation of Compass Bancshares, Inc.
    (incorporated by reference to Exhibit 3.1.2 to Compass
    Bancshares, Inc.s Post-Effective Amendment No. 1 to
    Registration Statement on Form S-4, Registration
    No. 33-10797, filed with the Commission)

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|     |  |                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                     
|---- |  | ----------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | (d)                                                                           |  | Certificate of Amendment, dated September 16, 1994, to
    Restated Certificate of Incorporation of Compass Bancshares,
    Inc. (incorporated by reference to Exhibit 3.5(1) to
    Compass Bancshares, Inc.s Registration Statement on
    Form S-4, Registration No. 33-55899, filed with the
    Commission)                                                   
|     |  | (e)                                                                           |  | Certificate of Amendment, dated November 3, 1993, to
    Restated Certificate of Incorporation of Compass Bancshares,
    Inc. (incorporated by reference to Exhibit 3(d) to Compass
    Bancshares, Inc.s Registration Statement on Form S-4,
    Registration No. 33-51919, filed with the Commission)                                                           
|     |  | (f)                                                                           |  | Certificate of Amendment, dated May 15, 1998, to Restated
    Certificate of Incorporation of Compass Bancshares, Inc. (filed
    as exhibit 4.6 to Compass Bancshares, Inc.s Registration
    Statement on Form S-3, Registration Statement
    No. 333-60725, filed with the Commission)                                                                         
|     |  | (g)                                                                           |  | Certificate of Amendment, dated May 1, 2002, to Restated
    Certificate of Incorporation of Compass Bancshares, Inc.
    (incorporated by reference to Exhibit 4.7 to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-90806, filed June 19, 2002 with the
    Commission)                                              
|     |  | (h)                                                                           |  | Bylaws of Compass Bancshares, Inc. (Amended and Restated as of
    March 15, 1982) (incorporated by reference to
    Exhibit 3(f) to Compass Bancshares, Inc.s
    December 31, 1997 Form 10-K, file number 000-06032,
    filed March 23, 1998 with the Commission)                                                                                               
|(4)  |  | Instruments Defining the Rights of Security Holders, Including
    Indentures
|     |  | (a)                                                                           |  | Form of Indenture between Compass Bancshares, Inc. (formerly
    Central Bancshares of the South, Inc.) and JPMorgan Chase Bank
    (formerly Chemical Bank), as Senior Trustee (incorporated by
    reference to Exhibit 4(g) to Compass Bancshares,
    Inc.s Registration Statement on Form S-3,
    Registration No. 33-61018, filed with the Commission)      
|     |  | (b)                                                                           |  | Form of Indenture between Compass Bancshares, Inc. (formerly
    Central Bancshares of the South, Inc.) and JPMorgan Chase Bank
    (formerly Chemical Bank), as Subordinated Trustee (incorporated
    by reference to Exhibit 4(f) to Compass Bancshares,
    Inc.s Registration Statement on Form S-3,
    Registration No. 33-61018, filed with the Commission)
|(10) |  | Material Contracts                                                           
|     |  | (a)                                                                           |  | Compass Bancshares, Inc., 1996 Long Term Incentive Plan
    (incorporated by reference to Exhibit 4(g) to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-15117, filed October 30, 1996 with the
    Commission) *                                                                                                      
|     |  | (b)                                                                           |  | Compass Bancshares, Inc., 1999 Omnibus Incentive Compensation
    Plan (incorporated by reference to Exhibit 10(a) to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-86455, filed September 2, 1999
    with the Commission) *                                                                                         
|     |  | (c)                                                                           |  | Employment Agreement, dated December 14, 1994, between
    Compass Bancshares, Inc. and D. Paul Jones, Jr. (incorporated by
    reference to Exhibit 10(e) to Compass Bancshares,
    Inc.s March 31, 2000 Form 10-Q, file number
    000-06032, filed May 15, 2000 with the Commission) *                                                                         
|     |  | (d)                                                                           |  | Employment Agreement, dated December 14, 1994, between
    Compass Bancshares, Inc. and Garrett R. Hegel (incorporated by
    reference to Exhibit 10(g) to Compass Bancshares,
    Inc.s March 31, 2000 Form 10-Q, file number
    000-06032, filed May 15, 2000 with the Commission) *                                                                           
|     |  | (e)                                                                           |  | Employment Agreement, dated November 24, 1997, between
    Compass Bancshares, Inc. and James D. Barri (incorporated by
    reference to Exhibit 10(j) to Compass Bancshares,
    Inc.s March 31, 2000 Form 10-Q, file number
    000-06032, filed May 15, 2000 with the Commission) *                                                                             
|     |  | (f)                                                                           |  | Employment Agreement, dated December 14, 1994, between
    Compass Bancshares, Inc. and G. Ray Stone (incorporated by
    reference to Exhibit 10(i) to Compass Bancshares, Inc.
    Registration Statement on Form S-4, Registration
    No. 333-15373, filed November 1, 1996 with the
    Commission) *                                                          

45



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| |  |     |  |                                                                                                                                                                                                                                                                                                                                
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (g) |  | Employment Agreement, dated March 1, 1998, between Compass
    Bancshares, Inc. and Clayton D. Pledger (incorporated by
    reference to Exhibit 10(g) to Compass Bancshares, Inc.
    December 31, 2001 Form 10-K, file number 000-06032, filed
    March 11, 2002 with the Commission) *                                     
| |  | (h) |  | First Amendment to Employment Agreement, dated March 31,
    1997, between Compass Bancshares, Inc. and D. Paul Jones, Jr.
    (incorporated by reference to Exhibit 10(h) to Compass
    Bancshares, Inc.s December 31, 2004 Form 10-K,
    file number 001-31272, filed February 28, 2005 with the
    Commission) *        
| |  | (i) |  | First Amendment to Employment Agreement, dated April 14,
    1997, between Compass Bancshares, Inc. and Garrett R. Hegel
    (incorporated by reference to Exhibit 10(i) to Compass
    Bancshares, Inc.s December 31, 2004 Form 10-K,
    file number 001-31272, filed February 28, 2005 with the
    Commission) *          
| |  | (j) |  | First Amendment to Employment Agreement, dated April 18,
    1997, between Compass Bancshares, Inc. and G. Ray Stone
    (incorporated by reference to Exhibit 10(j) to Compass
    Bancshares, Inc.s December 31, 2004 Form 10-K,
    file number 001-31272, filed February 28, 2005 with the
    Commission) *              
| |  | (k) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and D. Paul Jones, Jr.
    (incorporated by reference to Exhibit 10(i) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K,
    file number 000-06032, filed March 11, 2002 with the
    Commission) *               
| |  | (l) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and Garrett R. Hegel
    (incorporated by reference to Exhibit 10(j) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K, file
    number 000-06032, filed March 11, 2002 with the
    Commission) *                 
| |  | (m) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and James D. Barri
    (incorporated by reference to Exhibit 10(l) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K, file
    number 000-06032, filed March 11, 2002 with the
    Commission) *                   
| |  | (n) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and Clayton D. Pledger
    (incorporated by reference to Exhibit 10(h) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K,
    file number 000-06032, filed March 11, 2002 with the
    Commission) *               
| |  | (o) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and G. Ray Stone (incorporated
    by reference to Exhibit 10(o) to Compass Bancshares,
    Inc.s December 31, 2004 Form 10-K, file number
    001-31272, filed February 28, 2005 with the
    Commission) *                  
| |  | (p) |  | Compass Bancshares, Inc., Employee Stock Ownership Benefit
    Restoration Plan, dated as of May 1, 1997 (incorporated by
    reference to Exhibit 10(j) to Compass Bancshares,
    Inc.s December 31, 1999 Form 10-K, file number
    000-06032, filed March 23, 2000 with the Commission) *                                 
| |  | (q) |  | Compass Bancshares, Inc., Supplemental Retirement Plan, dated as
    of May 1, 1997 (incorporated by reference to
    Exhibit 10(k) to Compass Bancshares, Inc.s
    December 31, 1999 Form 10-K, file number 000-06032,
    filed March 23, 2000 with the Commission) *                                                      
| |  | (r) |  | Deferred Compensation Plan for Compass Bancshares, Inc., dated
    as of February 1, 1996. (Amended and Restated as of
    May 1, 1998) (incorporated by reference to
    Exhibit 10(l) to Compass Bancshares, Inc.s
    December 31, 1999 Form 10-K, file number 000-06032,
    filed March 23, 2000 with the Commission) *  
| |  | (s) |  | Compass Bancshares, Inc. Special Supplemental Retirement Plan,
    dated as of May 1, 1997. (Amended and Restated as of
    February 27, 2000) (incorporated by reference to
    Exhibit 10(n) to Compass Bancshares, Inc.s
    March 31, 2000 Form 10-Q, file number 000-06032, filed
    May 15, 2000 with the Commission) *

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| |  |         |  |                                                                                                                                                                                                                                                                                                                                                                                      
| |  | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (t)     |  | Amendment Number One to the Compass Bancshares, Inc., Special
    Supplemental Retirement Plan, dated April 26, 2000
    (incorporated by reference to Exhibit 10(q) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K, file
    000-06032, filed March 11, 2002 with the Commission) *                                                                                  
| |  | (u)     |  | Amendment Number Two to the Compass Bancshares, Inc., Special
    Supplemental Retirement Plan, dated as of February 9,
    2001(incorporated by reference to Exhibit 10(r) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K,
    file number 000-06032, filed March 11, 2002 with the
    Commission) *                                                                
| |  | (v)     |  | Compass Bancshares, Inc., Director & Executive Stock
    Purchase Plan (formerly known as Monthly Investment Plan), as
    Amended and Restated, effective as of September 1, 2001
    (incorporated by reference to Exhibit 4.8 to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-26884, filed July 31, 2001 with
    the Commission) *
| |  | (w)     |  | Compass Bancshares, Inc. 2002 Incentive Compensation Plan
    (incorporated by reference to Exhibit 4.9 to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-90806, filed June 19, 2002 with the
    Commission) *                                                                                                                         
| |  | (x)     |  | Form of Performance Contingent Restricted Stock Agreement
    (incorporated by reference to Exhibit 10.1 to Compass
    Bancshares, Inc.s Form 8-K, file number 001-31272,
    filed February 22, 2005 with the Commission) *                                                                                                                                                       
| |  | (y)     |  | Form of Amendment Number One to the Performance Contingent
    Restricted Stock Award Agreement (incorporated by reference to
    Compass Bancshares, Inc.s Form 8-K, file number
    001-31272, filed October 21, 2005 with the
    Commission) *                                                                                                                                  
| |  | (z)     |  | Form of Incentive Stock Option Agreement (incorporated by
    reference to Exhibit 10.2 to Compass Bancshares,
    Inc.s Form 8-K, file number 001-31272, filed
    February 22, 2005 with the Commission) *                                                                                                                                                                        
| |  | (aa)    |  | Form of Incentive Stock Option Agreement (incorporated by
    reference to Exhibit 10.3 to Compass Bancshares,
    Inc.s Form 8-K, file number 001-31272, filed
    February 22, 2005 with the Commission) *                                                                                                                                                                        
| |  | (ab)    |  | Form of Incentive Stock Option Agreement (incorporated by
    reference to Exhibit 10.4 to Compass Bancshares,
    Inc.s Form 8-K, file number 001-31272, filed
    February 22, 2005 with the Commission) *                                                                                                                                                                        
| |  | (ac)    |  | Executive Officer Compensation Arrangements (incorporated by
    reference to Exhibit 10(y) to Compass Bancshares,
    Inc.s March 31, 2005 Form 10-Q, file number
    001-31272, filed May 6, 2005 with the Commission) *                                                                                                                                                          
| |  | (ad)    |  | Form of Stock Option Agreement for Non-Employee Directors
    (incorporated by reference to Exhibit 10(cc) to Compass
    Bancshares, Inc.s March 31, 2005 Form 10-Q, file
    number 001-31272, filed May 6, 2005 with the
    Commission) *                                                                                                                                       
| |  | (31)(a) |  | Certification Pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002 by D. Paul Jones, Jr., Chief Executive Officer                                                                                                                                                                                                                                                           
| |  | (31)(b) |  | Certification Pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002 by Garrett. R. Hegel, Chief Financial Officer                                                                                                                                                                                                                                                            
| |  | (32)(a) |  | Certification Pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002 by D. Paul Jones, Jr., Chief Executive Officer                                                                                                                                                                                                        
| |  | (32)(b) |  | Certification Pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002 by Garrett R. Hegel, Chief Financial Officer                                                                                                                                                                                                          








|  |                                                        
|- | -------------------------------------------------------
|* | Management contract or compensatory plan or arrangement

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COMPASS BANCSHARES, INC. AND SUBSIDIARIES


SIGNATURES




|                 |  |  |     |  |  |  |                         | 
|---------------- |  |  | --- |  |  |  | ----------------------- | 
|January 10, 2006 |  |  | By: |  |  |  | /s/ Garrett R. Hegel    | 
|                 |  |  |     |  |  | 
|Date             |  |  |     |  |  |  | Garrett R. Hegel        | 
|                 |  |  |     |  |  |  | Chief Financial Officer | 

48