##### 









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


| |  |                                                                                         
| |  | ----------------------------------------------------------------------------------------
| |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|
| |  | For the Fiscal Year Ended December 31,
    2004     Commission File
    No. 0-6032      

Compass Bancshares, Inc.


(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







SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE
ACT:


|                    |  |                      
|------------------- |  | ---------------------
|                    |  | Name of Each Exchange
|Title of Each Class |  | on Which Registered  
|                    |  |                      
|None                |  | None                 

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE
ACT:


Common Stock, $2 par value





(Title of Class)


þ o


o


þ o






|                           |  |                                
|-------------------------- |  | -------------------------------
|Class                      |  | Outstanding at January 31, 2005
|                           |  |                                
|Common Stock, $2 Par Value |  | 123,564,786                    

|                                                                                                                                                                                      |  |                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------
|Documents Incorporated by Reference                                                                                                                                                   |  | Part of 10-K in which Incorporated
|                                                                                                                                                                                      |  |                                   
|Certain information required for Part III of this report is
    incorporated herein by reference to the Proxy Statement for the
    2005 Annual Meeting of the Companys stockholders |  | Part III                          









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COMPASS BANCSHARES, INC.


TABLE OF CONTENTS


FORM 10-K


DECEMBER 31, 2004


|           |          |  |                                                                                                                  |  |  |    | 
|---------- | -------- |  | ---------------------------------------------------------------------------------------------------------------- |  |  | -- | 
|PART I    
|           | ITEM 1.  |  | BUSINESS                                                                                                         |  |  | 2  | 
|           | ITEM 2.  |  | PROPERTIES                                                                                                       |  |  | 8  | 
|           | ITEM 3.  |  | LEGAL PROCEEDINGS                                                                                                |  |  | 9  | 
|           | ITEM 4.  |  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                              |  |  | 9  | 
|PART II   
|           | ITEM 5.  |  | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |  |  | 10 | 
|           | ITEM 6.  |  | SELECTED FINANCIAL DATA                                                                                          |  |  | 11 | 
|           | ITEM 7.  |  | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS                        |  |  | 12 | 
|           | ITEM 7A. |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                       |  |  | 12 | 
|           | ITEM 8.  |  | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                      |  |  | 41 | 
|           | ITEM 9.  |  | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
    AND FINANCIAL DISCLOSURE                         |  |  | 92 | 
|           | ITEM 9A. |  | CONTROLS AND PROCEDURES                                                                                          |  |  | 92 | 
|           | ITEM 9B. |  | OTHER INFORMATION                                                                                                |  |  | 92 | 
|PART III  
|           | ITEM 10. |  | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT                                                               |  |  | 92 | 
|           | ITEM 11. |  | EXECUTIVE COMPENSATION                                                                                           |  |  | 92 | 
|           | ITEM 12. |  | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT                                               |  |  | 93 | 
|           | ITEM 13. |  | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                                                                   |  |  | 93 | 
|           | ITEM 14. |  | PRINCIPAL ACCOUNTING FEES AND SERVICES                                                                           |  |  | 93 | 
|PART IV   
|           | ITEM 15. |  | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                                       |  |  | 94 | 
|SIGNATURES |          |  | 97                                                                                                               | 

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PART I




|         |         
|-------- | --------
|ITEM 1  | BUSINESS



General Development of the Company




Parent Company




Subsidiary Banks






Lines of Business




-2-



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Business Combinations and Divestitures






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









-3-



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



Competition






-4-



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Employees




Government Monetary Policy






SUPERVISION AND REGULATION


The Company




| |        
| | -------
| | General







-5-



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| |                                         
| | ----------------------------------------
| | Interstate Banking and Bank Acquisitions







| |                                      
| | -------------------------------------
| | Limitations on Loans and Transactions





| |                     
| | --------------------
| | Capital Requirements





-6-



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The Subsidiary Banks




| |        
| | -------
| | General







| |                     
| | --------------------
| | Dividend Limitations







| |                   
| | ------------------
| | Laws & Regulations



-7-



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STATISTICAL DISCLOSURE


|                                                                                    |  |         |           | 
|----------------------------------------------------------------------------------- |  | ------- | --------- | 
|                                                                                    |  | Page(s) |          
|                                                                                    |  |         |          
|Loan Portfolio                                                                      |  |         | 15        | 
|Selected Loan Maturity and Interest Rate Sensitivity                                |  |         | 16        | 
|Managed Loan Portfolio                                                              |  |         | 16        | 
|Investment Securities Held to Maturity and Available for Sale                       |  |         | 18        | 
|Investment Securities Held to Maturity and Available for Sale
    Maturity Schedule |  |         | 19        | 
|Trading Account Assets and Liabilities                                              |  |         | 20        | 
|Maturities of Time Deposits                                                         |  |         | 21        | 
|Short-Term Borrowings                                                               |  |         | 22        | 
|Contractual Obligations                                                             |  |         | 23        | 
|Commitments                                                                         |  |         | 24        | 
|Net Interest Income Sensitivity                                                     |  |         | 24 and 25 | 
|Return on Equity and Assets                                                         |  |         | 26        | 
|Capital Ratios                                                                      |  |         | 27        | 
|Consolidated Average Balance Sheets and Rate/ Volume Variances                      |  |         | 32 and 33 | 
|Summary of Loan Loss Experience                                                     |  |         | 35        | 
|Allocation of Allowance for Loan Losses                                             |  |         | 36        | 
|Nonperforming Assets                                                                |  |         | 37        | 

Website Availability of Reports Filed with the Securities and
Exchange Commission


www.compassweb.com http://ir.shareholder.com/cbss/sec.cfm







|         |           
|-------- | ----------
|ITEM 2  | PROPERTIES



-8-



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|         |                  
|-------- | -----------------
|ITEM 3  | LEGAL PROCEEDINGS








|         |                                                    
|-------- | ---------------------------------------------------
|ITEM 4  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



Executive Officers of the Registrant




|                   |  |                                                                                                                                                                                                                                                                                                                   |  |     |    |            |          |  |      | 
|------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --- | -- | ---------- | -------- |  | ---- | 
|                   |  |                                                                                                                                                                                                                                                                                                                   |  |     |    | Elected to |         
|                   |  |                                                                                                                                                                                                                                                                                                                   |  |     |    | Officer    |         
|Name               |  | Position                                                                                                                                                                                                                                                                                                          |  | Age |    |            | Position | 
|                   |  |                                                                                                                                                                                                                                                                                                                   |  |     |    |            |          | 
|D. Paul Jones, Jr. |  | Chairman of the Board and Chief Executive Officer of Compass
    Bancshares, Inc.                                                                                                                                                                                                                                 |  |     | 62 |            |          |  | 1978 | 
|Garrett R. Hegel   |  | Chief Financial Officer of Compass Bancshares, Inc.                                                                                                                                                                                                                                                               |  |     | 54 |            |          |  | 1990 | 
|G. Ray Stone       |  | Senior Executive Vice President and Chief Credit Policy Officer
    of Compass Bancshares, Inc.                                                                                                                                                                                                                   |  |     | 61 |            |          |  | 1991 | 
|George M. Boltwood |  | Senior Executive Vice President  Corporate Banking                                                                                                                                                                                                                                                               |  |     | 55 |            |          |  | 1996 | 
|James D. Barri     |  | Executive Vice President  Retail Banking                                                                                                                                                                                                                                                                         |  |     | 60 |            |          |  | 1997 | 
|E. Lee Harris, Jr. |  | Executive Vice President  Human Resources                                                                                                                                                                                                                                                                        |  |     | 52 |            |          |  | 1994 | 
|William C. Helms   |  | Executive Vice President  Wealth Management Group,
    Prior to joining Compass, President of Investment Group for
    Trustmark Bank from 2002 to 2003; Executive Vice President of
    LJH Global Investments from 2001 to 2002; and Co-President of
    Private Banking for Bank of America from 1999 to 2001 |  |     | 53 |            |          |  | 2003 | 
|Clayton D. Pledger |  | Executive Vice President  Chief Information Officer                                                                                                                                                                                                                                                              |  |     | 60 |            |          |  | 1998 | 
|Jerry W. Powell    |  | General Counsel and Secretary of Compass Bancshares, Inc.                                                                                                                                                                                                                                                         |  |     | 55 |            |          |  | 1981 | 



-9-



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PART II







|         |                                                                                                                     
|-------- | --------------------------------------------------------------------------------------------------------------------
|ITEM 5  | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES

Market Information




|      |                |      |   |       |     |  |   |       |  |  |          |       |  |  |   |        | 
|----- | -------------- | ---- | - | ----- | --- |  | - | ----- |  |  | -------- | ----- |  |  | - | ------ | 
|      |                | High |   |       | Low |  |   | Close |  |  | Dividend |      
|      |                |      |   |       |     |  |   |       |  |  |          |      
|2004: |                |      |   |       |     |  |   |       |  |  |          |       |  |  |   |       
|      | First Quarter  |      | $ | 42.86 |     |  | $ | 37.77 |  |  | $        | 41.47 |  |  | $ | 0.3125 | 
|      | Second Quarter |      |   | 43.25 |     |  |   | 38.20 |  |  |          | 43.00 |  |  |   | 0.3125 | 
|      | Third Quarter  |      |   | 46.25 |     |  |   | 42.50 |  |  |          | 43.82 |  |  |   | 0.3125 | 
|      | Fourth Quarter |      |   | 48.67 |     |  |   | 43.79 |  |  |          | 48.67 |  |  |   | 0.3125 | 
|2003: |                |      |   |       |     |  |   |       |  |  |          |       |  |  |   |       
|      | First Quarter  |      | $ | 32.18 |     |  | $ | 29.99 |  |  | $        | 31.27 |  |  | $ | 0.2800 | 
|      | Second Quarter |      |   | 37.37 |     |  |   | 31.72 |  |  |          | 34.73 |  |  |   | 0.2800 | 
|      | Third Quarter  |      |   | 36.24 |     |  |   | 33.19 |  |  |          | 34.70 |  |  |   | 0.2800 | 
|      | Fourth Quarter |      |   | 39.59 |     |  |   | 35.32 |  |  |          | 39.35 |  |  |   | 0.2800 | 

Dividends




Holders




-10-



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Issuer Purchases of Equity Securities


|                                     |       |                     |     |       |                |                     |       |                       |                     |  |                       |   |  |  |           |  | 
|------------------------------------ | ----- | ------------------- | --- | ----- | -------------- | ------------------- | ----- | --------------------- | ------------------- |  | --------------------- | - |  |  | --------- |  | 
|                                     |       |                     |     |       |                | Total Number of     |       |                       | Maximum Number of   | 
|                                     |       |                     |     |       |                | Shares Purchased as |       |                       | Shares that May Yet | 
|                                     |       | Total Number of     |     |       | Average Price  |                     |       | Part of Publicly      |                     |  | Be Purchased          |  
|                                     |       | Shares Purchased(1) |     |       | Paid Per Share |                     |       | Announced Programs(2) |                     |  | Under the Programs(2) |  
|                                     |       |                     |     |       |                |                     |       |                       |                     |  |                       |  
|October 1, 2004  October 31, 2004   |       |                     | 635 |       |                | $                   | 45.96 |                       |                     |  |                      |   |  |  | 4,338,600 | 
|November 1, 2004  November 30, 2004 |       |                     | 721 |       |                |                     | 46.20 |                       |                     |  |                      |   |  |  | 4,338,600 | 
|December 1, 2004  December 31, 2004 |       |                     | 493 |       |                |                     | 47.85 |                       |                     |  |                      |   |  |  | 4,338,600 | 
|                                     |       |                     |     |       |                |                     |       |                       |                     |  |                       |  
|                                     | Total |                     |     | 1,849 |                |                     | $     | 46.56                 |                     |  |                       |  |  |  |           |  | 
|                                     |       |                     |     |       |                |                     |       |                       |                     |  |                       |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | This column includes (a) the number of shares purchased
    under the Companys publicly announced share repurchase
    programs described in (2) below and (b) the number of
    shares surrendered to the Company by plan participants 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  | SELECTED FINANCIAL DATA



|                          |                                      |                                       |         |            |      |   |         |            |  |   |         |            |  |      |         |            |  |   |         |            | 
|------------------------- | ------------------------------------ | ------------------------------------- | ------- | ---------- | ---- | - | ------- | ---------- |  | - | ------- | ---------- |  | ---- | ------- | ---------- |  | - | ------- | ---------- | 
|                          |                                      | 2004                                  |         |            | 2003 |   |         | 2002       |  |   | 2001    |            |  | 2000 |        
|                          |                                      |                                       |         |            |      |   |         |            |  |   |         |            |  |      |        
|                          |                                      | (In Thousands, Except Per Share Data) |        
|Net interest income       |                                      | $                                     | 911,828 |            |      | $ | 909,530 |            |  | $ | 924,855 |            |  | $    | 825,859 |            |  | $ | 718,512 |           
|Provision for loan losses |                                      |                                       | 105,658 |            |      |   | 119,681 |            |  |   | 136,331 |            |  |      | 106,241 |            |  |   | 65,578  |           
|Net income                |                                      |                                       | 369,784 |            |      |   | 341,868 |            |  |   | 314,399 |            |  |      | 270,397 |            |  |   | 241,623 |           
|Per share data:           |                                      |                                       |         |            |      |   |         |            |  |   |         |            |  |      |         |            |  |   |         |           
|                          | Basic earnings                       |                                       | $       | 3.02       |      |   | $       | 2.74       |  |   | $       | 2.46       |  |      | $       | 2.13       |  |   | $       | 1.91       | 
|                          | Diluted earnings                     |                                       |         | 2.95       |      |   |         | 2.69       |  |   |         | 2.42       |  |      |         | 2.11       |  |   |         | 1.90       | 
|                          | Cash dividends declared              |                                       |         | 1.25       |      |   |         | 1.12       |  |   |         | 1.00       |  |      |         | 0.92       |  |   |         | 0.88       | 
|Balance sheet:            |                                      |                                       |         |            |      |   |         |            |  |   |         |            |  |      |         |            |  |   |         |           
|                          | Average total
    equity             |                                       | $       | 1,952,359  |      |   | $       | 1,937,330  |  |   | $       | 1,893,637  |  |      | $       | 1,656,544  |  |   | $       | 1,353,387  | 
|                          | Average assets                       |                                       |         | 27,661,075 |      |   |         | 25,142,719 |  |   |         | 23,354,327 |  |      |         | 21,992,587 |  |   |         | 19,800,819 | 
|                          | Period-end FHLB and other borrowings |                                       |         | 4,140,972  |      |   |         | 4,827,814  |  |   |         | 4,900,132  |  |      |         | 3,837,450  |  |   |         | 2,585,185  | 
|                          | Period-end total equity              |                                       |         | 2,045,253  |      |   |         | 1,871,883  |  |   |         | 1,931,502  |  |      |         | 1,715,641  |  |   |         | 1,510,004  | 
|                          | Period-end assets                    |                                       |         | 28,184,628 |      |   |         | 26,963,113 |  |   |         | 23,925,589 |  |      |         | 23,015,000 |  |   |         | 20,877,160 | 

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|     |                                                     |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |         |      | 
|---- | --------------------------------------------------- | ------------------------------------- | - | ------- | ------- |  | - | ------- | ---- |  | ------- | ------- | ---- |  | - | ------- | ---- | 
|     |                                                     | First                                 |   |         | Second  |  |   | Third   |      |  | Fourth  |        
|     |                                                     | Quarter                               |   |         | Quarter |  |   | Quarter |      |  | Quarter |        
|     |                                                     |                                       |   |         |         |  |   |         |      |  |         |        
|     |                                                     | (In Thousands, Except Per Share Data) |  
|2004 |                                                     |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |        
|     | Total interest income                               |                                       | $ | 310,679 |         |  | $ | 313,008 |      |  | $       | 316,409 |      |  | $ | 333,430 |     
|     | Total interest expense                              |                                       |   | 87,818  |         |  |   | 86,269  |      |  |         | 89,878  |      |  |   | 97,733  |     
|     | Net interest income                                 |                                       |   | 222,861 |         |  |   | 226,739 |      |  |         | 226,531 |      |  |   | 235,697 |     
|     | Provision for loan losses                           |                                       |   | 24,345  |         |  |   | 28,178  |      |  |         | 25,617  |      |  |   | 27,518  |     
|     | Net interest income after provision for loan losses |                                       |   | 198,516 |         |  |   | 198,561 |      |  |         | 200,914 |      |  |   | 208,179 |     
|     | Total noninterest income                            |                                       |   | 141,911 |         |  |   | 150,019 |      |  |         | 172,314 |      |  |   | 153,346 |     
|     | Total noninterest expense                           |                                       |   | 210,147 |         |  |   | 211,181 |      |  |         | 232,501 |      |  |   | 214,649 |     
|     | Income tax expense                                  |                                       |   | 44,033  |         |  |   | 45,654  |      |  |         | 47,125  |      |  |   | 48,686  |     
|     | Net income                                          |                                       |   | 86,247  |         |  |   | 91,745  |      |  |         | 93,602  |      |  |   | 98,190  |     
|     | Per common share:                                   |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |         |     
|     |                                                     | Basic earnings                        |   |         | 0.71    |  |   |         | 0.75 |  |         |         | 0.76 |  |   |         | 0.80 | 
|     |                                                     | Diluted earnings                      |   |         | 0.69    |  |   |         | 0.73 |  |         |         | 0.75 |  |   |         | 0.78 | 
|2003 |                                                     |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |        
|     | Total interest income                               |                                       | $ | 326,246 |         |  | $ | 317,674 |      |  | $       | 316,866 |      |  | $ | 316,501 |     
|     | Total interest expense                              |                                       |   | 99,001  |         |  |   | 94,345  |      |  |         | 86,608  |      |  |   | 87,803  |     
|     | Net interest income                                 |                                       |   | 227,245 |         |  |   | 223,329 |      |  |         | 230,258 |      |  |   | 228,698 |     
|     | Provision for loan losses                           |                                       |   | 29,779  |         |  |   | 27,909  |      |  |         | 30,354  |      |  |   | 31,639  |     
|     | Net interest income after provision for loan losses |                                       |   | 197,466 |         |  |   | 195,420 |      |  |         | 199,904 |      |  |   | 197,059 |     
|     | Total noninterest income                            |                                       |   | 123,107 |         |  |   | 131,973 |      |  |         | 134,012 |      |  |   | 137,092 |     
|     | Total noninterest expense                           |                                       |   | 196,133 |         |  |   | 195,497 |      |  |         | 202,680 |      |  |   | 203,573 |     
|     | Income tax expense                                  |                                       |   | 42,355  |         |  |   | 44,848  |      |  |         | 44,679  |      |  |   | 44,400  |     
|     | Net income                                          |                                       |   | 82,085  |         |  |   | 87,048  |      |  |         | 86,557  |      |  |   | 86,178  |     
|     | Per common share:                                   |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |         |     
|     |                                                     | Basic earnings                        |   |         | 0.65    |  |   |         | 0.69 |  |         |         | 0.70 |  |   |         | 0.70 | 
|     |                                                     | Diluted earnings                      |   |         | 0.64    |  |   |         | 0.68 |  |         |         | 0.68 |  |   |         | 0.69 | 






|         |                                                                                          
|-------- | -----------------------------------------------------------------------------------------
|ITEM 7  | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS






|          |                                                               
|--------- | --------------------------------------------------------------
|ITEM 7A  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK



Forward-Looking Statements




-12-



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##### 







http://www.sec.gov http://ir.shareholder.com/cbss/sec.cfm


Critical Accounting Policies




Allowance for Loan Losses:


Derivative Instruments:


-13-



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##### 





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


Income Taxes:


Goodwill Impairment:


Net Income and Earnings Per Share




Earning Assets




-14-



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##### 



Loans








Loan Portfolio


|                                |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            |  |     |      |      |  |            |           |            |  |     |      |      | 
|------------------------------- | -------------------------------------- | ------------------------ | ---------- | --------- | ---------- |  | --- | ------ | ------- |  | ---------- | --------- | ---------- | ------- | --- | ---- | -------- |  | ---------- | --------- | ---------- |  | -------- | ------- | ---- | ------ | ---------- | --------- | ---------- |  | --- | ---- | ---- |  | ---------- | --------- | ---------- |  | --- | ---- | ---- | 
|                                |                                        | December 31              |           
|                                |                                        |                          |           
|                                |                                        | 2004                     |            |           | 2003       |  |     | 2002   |         |  | 2001       |           |            | 2000    |    
|                                |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |    
|                                |                                        |                          |            | Percent   |            |  |     |        | Percent |  |            |           |            | Percent |     |      |          |  | Percent    |           |            |  |          | Percent |     
|                                |                                        | Amount                   |            |           | of Total   |  |     | Amount |         |  | of Total   |           |            | Amount  |     |      | of Total |  |            | Amount    |            |  | of Total |         |      | Amount |            |           | of Total   | 
|                                |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|                                |                                        | (In Thousands)           |           
|Commercial loans:               |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            |  |     |      |      |  |            |           |            |  |     |     
|                                | Commercial, financial and agricultural |                          | $          | 3,750,063 |            |  |     | 19.9   | %       |  | $          | 3,576,115 |            |         |     | 20.6 | %        |  | $          | 3,693,454 |            |  |          | 22.4    | %    |        | $          | 3,697,639 |            |  |     | 27.0 | %    |  | $          | 3,645,699 |            |  |     | 29.7 | %   
|                                | Real estate  construction             |                          |            | 3,027,228 |            |  |     | 16.1   |         |  |            | 2,481,281 |            |         |     | 14.3 |          |  |            | 2,531,580 |            |  |          | 15.4    |      |        |            | 2,312,591 |            |  |     | 16.9 |      |  |            | 2,291,580 |            |  |     | 18.7 |     
|                                | Commercial real estate  mortgage      |                          |            | 3,943,163 |            |  |     | 20.9   |         |  |            | 3,933,773 |            |         |     | 22.6 |          |  |            | 3,214,712 |            |  |          | 19.5    |      |        |            | 2,417,195 |            |  |     | 17.6 |      |  |            | 2,140,270 |            |  |     | 17.5 |     
|                                |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|                                |                                        | Total commercial loans   |            |           | 10,720,454 |  |     |        | 56.9    |  |            |           | 9,991,169  |         |     |      | 57.5     |  |            |           | 9,439,746  |  |          |         | 57.3 |        |            |           | 8,427,425  |  |     |      | 61.5 |  |            |           | 8,077,549  |  |     |      | 65.9 | 
|Consumer loans:                 |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            |  |     |      |      |  |            |           |            |  |     |     
|                                | Residential real estate  mortgage     |                          |            | 1,566,370 |            |  |     | 8.3    |         |  |            | 1,653,805 |            |         |     | 9.6  |          |  |            | 1,685,176 |            |  |          | 10.2    |      |        |            | 1,281,090 |            |  |     | 9.4  |      |  |            | 1,137,456 |            |  |     | 9.3  |     
|                                | Equity lines of credit                 |                          |            | 1,401,604 |            |  |     | 7.4    |         |  |            | 1,122,725 |            |         |     | 6.5  |          |  |            | 978,920   |            |  |          | 5.9     |      |        |            | 478,424   |            |  |     | 3.5  |      |  |            | 319,107   |            |  |     | 2.6  |     
|                                | Equity loans                           |                          |            | 1,069,614 |            |  |     | 5.7    |         |  |            | 1,046,881 |            |         |     | 6.0  |          |  |            | 1,322,092 |            |  |          | 8.0     |      |        |            | 1,072,437 |            |  |     | 7.8  |      |  |            | 797,825   |            |  |     | 6.5  |     
|                                | Credit card                            |                          |            | 505,090   |            |  |     | 2.7    |         |  |            | 485,487   |            |         |     | 2.8  |          |  |            | 462,252   |            |  |          | 2.8     |      |        |            | 426,644   |            |  |     | 3.1  |      |  |            | 417,002   |            |  |     | 3.4  |     
|                                | Consumer installment  direct          |                          |            | 484,657   |            |  |     | 2.5    |         |  |            | 435,326   |            |         |     | 2.5  |          |  |            | 455,976   |            |  |          | 2.8     |      |        |            | 515,093   |            |  |     | 3.7  |      |  |            | 475,795   |            |  |     | 3.9  |     
|                                | Consumer installment  indirect        |                          |            | 3,109,133 |            |  |     | 16.5   |         |  |            | 2,630,409 |            |         |     | 15.1 |          |  |            | 2,137,158 |            |  |          | 13.0    |      |        |            | 1,506,173 |            |  |     | 11.0 |      |  |            | 1,034,020 |            |  |     | 8.4  |     
|                                |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|                                |                                        | Total consumer
    loans |            |           | 8,136,468  |  |     |        | 43.1    |  |            |           | 7,374,633  |         |     |      | 42.5     |  |            |           | 7,041,574  |  |          |         | 42.7 |        |            |           | 5,279,861  |  |     |      | 38.5 |  |            |           | 4,181,205  |  |     |      | 34.1 | 
|                                |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|                                |                                        |                          | 18,856,922 |           |            |  | 100 | %      |         |  | 17,365,802 |           |            |         | 100 | %    |          |  | 16,481,320 |           |            |  | 100      | %       |      |        | 13,707,286 |           |            |  | 100 | %    |      |  | 12,258,754 |           |            |  | 100 | %   
|                                |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|Less: Allowance for loan losses |                                        |                          | 258,339    |           |            |  |     |        |         |  | 244,882    |           |            |         |     |      |          |  | 232,830    |           |            |  |          |         |      |        | 191,393    |           |            |  |     |      |      |  | 167,288    |           |            |  |     |     
|                                |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|                                |                                        | Net loans                |            | $         | 18,598,583 |  |     |        |         |  |            | $         | 17,120,920 |         |     |      |          |  |            | $         | 16,248,490 |  |          |         |      |        |            | $         | 13,515,893 |  |     |      |      |  |            | $         | 12,091,466 |  |     |      |      | 
|                                |                                        |                          |            |           |            |  |     |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 

-15-



---



##### 



Selected Loan Maturity and Interest Rate Sensitivity


|                                       |  |                |           |                          |                        |   |           |       |  |   |         |  |          |      |           |             |      |   |         |  |  |   |           | 
|-------------------------------------- |  | -------------- | --------- | ------------------------ | ---------------------- | - | --------- | ----- |  | - | ------- |  | -------- | ---- | --------- | ----------- | ---- | - | ------- |  |  | - | --------- | 
|                                       |  |                |           | Rate Structure For Loans |                       
|                                       |  | Maturity       |           |                          | Maturing Over One Year |  
|                                       |  |                |           |                          |                        |  
|                                       |  | One            |           |                          | Over One Year          |   |           | Over  |  |   |         |  | Fixed    |      |           | Floating or |     
|                                       |  | Year or        |           |                          | Through Five           |   |           | Five  |  |   |         |  | Interest |      |           | Adjustable  |     
|                                       |  | Less           |           |                          | Years                  |   |           | Years |  |   | Total   |  |          | Rate |           |             | Rate |  
|                                       |  |                |           |                          |                        |   |           |       |  |   |         |  |          |      |           |             |      |  
|                                       |  | (In Thousands) |          
|Commercial, financial and agricultural |  | $              | 1,899,352 |                          |                        | $ | 1,390,557 |       |  | $ | 460,154 |  |          | $    | 3,750,063 |             |      | $ | 395,874 |  |  | $ | 1,454,837 | 
|Real estate construction               |  |                | 1,685,839 |                          |                        |   | 1,193,778 |       |  |   | 147,611 |  |          |      | 3,027,228 |             |      |   | 127,448 |  |  |   | 1,213,941 | 
|                                       |  |                |           |                          |                        |   |           |       |  |   |         |  |          |      |           |             |      |  
|                                       |  | $              | 3,585,191 |                          |                        | $ | 2,584,335 |       |  | $ | 607,765 |  |          | $    | 6,777,291 |             |      | $ | 523,322 |  |  | $ | 2,668,778 | 
|                                       |  |                |           |                          |                        |   |           |       |  |   |         |  |          |      |           |             |      |  





Managed Loan Portfolio


|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |       |   |           |           |            |  |      |      |       |  
|----------------- | -------------------------------------- | ---------------------- | ------------------- | --------- | ---------- | ---------- |  | ------ | -------- | ----- | ----- | --------- | ---------- | ---------- |  | ---- | ----- | ----- | - | --------- | --------- | ---------- |  | ---- | ---- | ----- | -
|                  |                                        | December 31            |                    
|                  |                                        |                        |                    
|                  |                                        | 2004                   |                     |           | 2003       |            |  | 2002   |         
|                  |                                        |                        |                     |           |            |            |  |        |         
|                  |                                        |                        |                     | Percent   |            |            |  |        | Percent  |       |       |           |            | Percent    | 
|                  |                                        |                        |                     | of Total  |            |            |  |        | of Total |       |       |           |            | of Total   | 
|                  |                                        |                        |                     | Managed   |            |            |  |        | Managed  |       |       |           |            | Managed    | 
|                  |                                        | Amount                 |                     |           | Loans      |            |  | Amount |          |       | Loans |           |            | Amount     |  |      | Loans |      
|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |      
|                  |                                        | (In Thousands)         |                    
|Commercial loans: |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |       |   |           |           |            |  |     
|                  | Commercial, financial and agricultural |                        | $                   | 3,890,866 |            |            |  | 19.0   | %        |       | $     | 3,728,172 |            |            |  | 19.7 | %     |       | $ | 3,824,800 |           |            |  | 21.7 | %   
|                  | Real estate  construction             |                        |                     | 3,027,228 |            |            |  | 14.8   |          |       |       | 2,481,281 |            |            |  | 13.2 |       |       |   | 2,531,580 |           |            |  | 14.5 |     
|                  | Commercial real estate  mortgage      |                        |                     | 3,943,163 |            |            |  | 19.3   |          |       |       | 3,933,773 |            |            |  | 20.8 |       |       |   | 3,214,712 |           |            |  | 18.3 |     
|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |      
|                  |                                        | Total commercial loans |                     |           | 10,861,257 |            |  |        | 53.1     |       |       |           | 10,143,226 |            |  |      | 53.7  |       |   |           | 9,571,092 |            |  |      | 54.5 |      
|Consumer loans:   |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |       |   |           |           |            |  |     
|                  | Residential real estate  mortgage     |                        |                     | 2,688,768 |            |            |  | 13.1   |          |       |       | 2,514,169 |            |            |  | 13.3 |       |       |   | 2,604,591 |           |            |  | 14.8 |     
|                  | Equity lines of credit                 |                        |                     | 1,401,604 |            |            |  | 6.9    |          |       |       | 1,122,725 |            |            |  | 5.9  |       |       |   | 978,920   |           |            |  | 5.6  |     
|                  | Equity loans                           |                        |                     | 1,391,668 |            |            |  | 6.8    |          |       |       | 1,546,894 |            |            |  | 8.2  |       |       |   | 1,322,092 |           |            |  | 7.5  |     
|                  | Credit card                            |                        |                     | 505,090   |            |            |  | 2.5    |          |       |       | 485,487   |            |            |  | 2.6  |       |       |   | 462,252   |           |            |  | 2.6  |     
|                  | Consumer installment  direct          |                        |                     | 484,657   |            |            |  | 2.4    |          |       |       | 435,326   |            |            |  | 2.3  |       |       |   | 455,976   |           |            |  | 2.6  |     
|                  | Consumer installment  indirect        |                        |                     | 3,109,133 |            |            |  | 15.2   |          |       |       | 2,630,409 |            |            |  | 14.0 |       |       |   | 2,166,687 |           |            |  | 12.4 |     
|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |      
|                  |                                        | Total consumer loans   |                     |           | 9,580,920  |            |  |        | 46.9     |       |       |           | 8,735,010  |            |  |      | 46.3  |       |   |           | 7,990,518 |            |  |      | 45.5 |      
|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |      
|                  |                                        |                        | Total managed loans |           | $          | 20,442,177 |  |        |          | 100.0 | %     |           | $          | 18,878,236 |  |      |       | 100.0 | % |           | $         | 17,561,610 |  |      |      | 100.0 | %
|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |      

Investment Securities




-16-



---



##### 













-17-



---



##### 





Investment Securities Held to Maturity and Available for
Sale


|                                          |                                             |                            |            |           |           |           |           |           |           |           |           |           |           |           | 
|----------------------------------------- | ------------------------------------------- | -------------------------- | ---------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | 
|                                          |                                             | December 31                |           
|                                          |                                             |                            |           
|                                          |                                             | 2004                       |            |           | 2003      |           |           | 2002      |          
|                                          |                                             |                            |            |           |           |           |           |           |          
|                                          |                                             | (In Thousands)             |           
|Investment securities held to maturity:   |                                             |                            |            |           |           |           |           |           |           |           |           |          
|                                          | U.S. Government agencies and corporations   |                            | $          | 60,860    |           |           | $         | 72,696    |           |           | $         | 87        |          
|                                          | Mortgage-backed pass-through securities     |                            |            | 1,125,080 |           |           |           | 1,362,745 |           |           |           | 163,748   |          
|                                          | Collateralized mortgage obligations:        |                            |            |           |           |           |           |           |           |           |           |           |          
|                                          |                                             |                            | Agency     |           |           | 455,191   |           |           |           | 466,956   |           |           |           | 9,662     | 
|                                          |                                             |                            | Non-agency |           |           | 712,096   |           |           |           | 416,669   |           |           |           | 257,557   | 
|                                          | Asset-backed securities                     |                            |            | 320,058   |           |           |           | 510,892   |           |           |           |          |          
|                                          | States and political subdivisions           |                            |            | 93,714    |           |           |           | 105,886   |           |           |           | 43,791    |          
|                                          | Other                                       |                            |            | 100       |           |           |           | 500       |           |           |           | 600       |          
|                                          |                                             |                            |            |           |           |           |           |           |          
|                                          |                                             |                            | 2,767,099  |           |           |           | 2,936,344 |           |           |           | 475,445   |          
|                                          |                                             |                            |            |           |           |           |           |           |          
|Investment securities available for sale: |                                             |                            |            |           |           |           |           |           |           |           |           |          
|                                          | U.S. Treasury                               |                            |            | 38,886    |           |           |           | 40,650    |           |           |           | 43,374    |          
|                                          | U.S. Government agencies and corporations   |                            |            | 666       |           |           |           | 792       |           |           |           | 80,890    |          
|                                          | Mortgage-backed pass-through securities     |                            |            | 499,525   |           |           |           | 796,688   |           |           |           | 1,593,399 |          
|                                          | Collateralized mortgage obligations:        |                            |            |           |           |           |           |           |           |           |           |           |          
|                                          |                                             |                            | Agency     |           |           | 3,530,987 |           |           |           | 2,972,164 |           |           |           | 1,254,899 | 
|                                          |                                             |                            | Non-agency |           |           | 2,189     |           |           |           | 94,919    |           |           |           | 1,176,942 | 
|                                          | Asset-backed securities and corporate bonds |                            |            | 1,039     |           |           |           | 3,638     |           |           |           | 50,181    |          
|                                          | States and political subdivisions           |                            |            | 11,943    |           |           |           | 11,007    |           |           |           | 93,444    |          
|                                          | Other                                       |                            |            | 325,379   |           |           |           | 399,292   |           |           |           | 327,597   |          
|                                          |                                             |                            |            |           |           |           |           |           |          
|                                          |                                             |                            | 4,410,614  |           |           |           | 4,319,150 |           |           |           | 4,620,726 |          
|                                          |                                             | Net unrealized gain (loss) |            |           | (12,430   | )         |           |           | 56,058    |           |           |           | 162,970   |          
|                                          |                                             |                            |            |           |           |           |           |           |          
|                                          |                                             |                            | 4,398,184  |           |           |           | 4,375,208 |           |           |           | 4,783,696 |          
|                                          |                                             |                            |            |           |           |           |           |           |          
|                                          |                                             | Total                      |            | $         | 7,165,283 |           |           | $         | 7,311,552 |           |           | $         | 5,259,141 |          
|                                          |                                             |                            |            |           |           |           |           |           |          



-18-



---



##### 



Investment Securities Held to Maturity and Available for Sale
Maturity Schedule


|                                                               |                                           |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |       |       |  |         |         |         |  |       |      |      |  |        |        |        |  |      |      |      | 
|-------------------------------------------------------------- | ----------------------------------------- | -------------- | ------- | ------- | ----------------- |  | ---- | ---------------- | ---- |  | --------- | --------- | --------- | ------ | ---- | ----- | ----- |  | ------- | ------- | ------- |  | ----- | ---- | ---- |  | ------ | ------ | ------ |  | ---- | ---- | ---- | 
|                                                               |                                           | Maturing       |        
|                                                               |                                           |                |        
|                                                               |                                           | Within         |         |         | After One But     |  |      | After Five But   |      |  | After     |          
|                                                               |                                           | One Year       |         |         | Within Five Years |  |      | Within Ten Years |      |  | Ten Years |          
|                                                               |                                           |                |         |         |                   |  |      |                  |      |  |           |          
|                                                               |                                           | Amount         |         |         | Yield             |  |      | Amount           |      |  | Yield     |           |           | Amount |      |       | Yield |  |         | Amount  |         |  | Yield |     
|                                                               |                                           |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |       |       |  |         |         |         |  |       |     
|                                                               |                                           | (In Thousands) |        
|Investment securities held to maturity:                        |                                           |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |       |       |  |         |         |         |  |       |      |      |  |        |        |        |  |      |     
|                                                               | U.S. Government agencies and corporations |                | $       |        |                   |  |      |                 | %    |  | $         | 60,828    |           |        |      | 6.29  | %     |  | $       | 32      |         |  |       | 3.07 | %    |  | $      |       |        |  |      |     | %   
|                                                               | Mortgage-backed pass-through securities   |                |         | 881     |                   |  |      | 6.94             |      |  |           | 761,002   |           |        |      | 4.70  |       |  |         | 356,441 |         |  |       | 4.32 |      |  |        | 6,756  |        |  |      | 6.31 |     
|                                                               | Collateralized mortgage obligations       |                |         | 758     |                   |  |      | 5.17             |      |  |           | 1,154,391 |           |        |      | 4.59  |       |  |         | 12,138  |         |  |       | 5.70 |      |  |        |       |        |  |      |     |     
|                                                               | Asset-backed securities                   |                |         |        |                   |  |      |                 |      |  |           | 320,058   |           |        |      | 4.99  |       |  |         |        |         |  |       |     |      |  |        |       |        |  |      |     |     
|                                                               | States and political subdivisions         |                |         | 7,402   |                   |  |      | 9.29             |      |  |           | 23,142    |           |        |      | 8.30  |       |  |         | 10,565  |         |  |       | 7.92 |      |  |        | 52,605 |        |  |      | 7.32 |     
|                                                               | Other                                     |                |         | 100     |                   |  |      | 6.58             |      |  |           |          |           |        |      |      |       |  |         |        |         |  |       |     |      |  |        |       |        |  |      |     |     
|                                                               |                                           |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |       |       |  |         |         |         |  |       |     
|                                                               |                                           |                | 9,141   |         |                   |  | 8.69 |                  |      |  | 2,319,421 |           |           |        | 4.76 |       |       |  | 379,176 |         |         |  | 4.47  |      |      |  | 59,361 |        |        |  | 7.20 |     
|                                                               |                                           |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |       |       |  |         |         |         |  |       |     
|Investment securities available for sale  amortized
    cost: |                                           |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |       |       |  |         |         |         |  |       |      |      |  |        |        |        |  |      |     
|                                                               | U.S. Treasury                             |                |         |        |                   |  |      |                 |      |  |           | 38,886    |           |        |      | 3.49  |       |  |         |        |         |  |       |     |      |  |        |       |        |  |      |     |     
|                                                               | U.S. Government agencies and corporations |                |         | 500     |                   |  |      | 4.73             |      |  |           |          |           |        |      |      |       |  |         | 29      |         |  |       | 3.19 |      |  |        | 137    |        |  |      | 2.25 |     
|                                                               | Mortgage-backed pass-through securities   |                |         | 2,476   |                   |  |      | 6.44             |      |  |           | 457,758   |           |        |      | 4.51  |       |  |         | 36,135  |         |  |       | 5.19 |      |  |        | 3,156  |        |  |      | 5.10 |     
|                                                               | Collateralized mortgage obligations       |                |         | 63,941  |                   |  |      | 4.28             |      |  |           | 3,306,040 |           |        |      | 3.86  |       |  |         | 163,195 |         |  |       | 4.43 |      |  |        |       |        |  |      |     |     
|                                                               | Asset-backed securities                   |                |         |        |                   |  |      |                 |      |  |           | 1,039     |           |        |      | 5.90  |       |  |         |        |         |  |       |     |      |  |        |       |        |  |      |     |     
|                                                               | States and political subdivisions         |                |         | 2,000   |                   |  |      | 7.14             |      |  |           | 3,647     |           |        |      | 7.24  |       |  |         | 119     |         |  |       | 7.23 |      |  |        | 6,177  |        |  |      | 8.97 |     
|                                                               | Other                                     |                |         | 259,365 |                   |  |      | 3.36             |      |  |           | 36,674    |           |        |      | 10.19 |       |  |         |        |         |  |       |     |      |  |        | 29,340 |        |  |      | 8.89 |     
|                                                               |                                           |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |       |       |  |         |         |         |  |       |     
|                                                               |                                           |                | 328,282 |         |                   |  | 3.59 |                  |      |  | 3,844,044 |           |           |        | 4.00 |       |       |  | 199,478 |         |         |  | 4.57  |      |      |  | 38,810 |        |        |  | 8.57 |     
|                                                               |                                           |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |       |       |  |         |         |         |  |       |     
|                                                               |                                           | Total          |         | $       | 337,423           |  |      |                  | 3.72 |  |           | $         | 6,163,465 |        |      |       | 4.29  |  |         | $       | 578,654 |  |       |      | 4.50 |  |        | $      | 98,171 |  |      |      | 7.74 | 
|                                                               |                                           |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |       |       |  |         |         |         |  |       |     







-19-



---



##### 





Trading Account Assets and Liabilities






Trading Account Assets and Liabilities


|                             |                                         |                                   |   |        |        |  |   |        |        | 
|---------------------------- | --------------------------------------- | --------------------------------- | - | ------ | ------ |  | - | ------ | ------ | 
|                             |                                         | December 31                       |  
|                             |                                         |                                   |  
|                             |                                         | 2004                              |   |        | 2003   | 
|                             |                                         |                                   |   |        |        | 
|                             |                                         | (In Thousands)                    |  
|Trading account assets:      |                                         |                                   |   |        |        |  |   |       
|                             | U.S. Treasury and Government agencies   |                                   | $ | 6,651  |        |  | $ | 2,816  |       
|                             | States and political subdivisions       |                                   |   | 2,834  |        |  |   | 1,881  |       
|                             | Mortgage-backed pass-through securities |                                   |   | 8,060  |        |  |   | 3,039  |       
|                             | Collateralized mortgage obligations     |                                   |   | 4,180  |        |  |   | 864    |       
|                             | Interest rate floors, caps and swaps    |                                   |   | 38,431 |        |  |   | 50,424 |       
|                             |                                         |                                   |   |        |        | 
|                             |                                         | Total trading account assets      |   | $      | 60,156 |  |   | $      | 59,024 | 
|                             |                                         |                                   |   |        |        | 
|Trading account liabilities: |                                         |                                   |   |        |        |  |   |       
|                             | Short sales                             |                                   | $ | 2,956  |        |  | $ | 572    |       
|                             | Interest rate floors, caps and swaps    |                                   |   | 19,931 |        |  |   | 31,426 |       
|                             |                                         |                                   |   |        |        | 
|                             |                                         | Total trading account liabilities |   | $      | 22,887 |  |   | $      | 31,998 | 
|                             |                                         |                                   |   |        |        | 



-20-



---



##### 





Deposits and Borrowed Funds






Maturities of Time Deposits


|                               |  |                |           |  |            |   |         |       |  |   |           | 
|------------------------------ |  | -------------- | --------- |  | ---------- | - | ------- | ----- |  | - | --------- | 
|                               |  | Certificates   |           |  | Other Time |   |         |      
|                               |  | of Deposit     |           |  | Deposits   |   |         |      
|                               |  | Over           |           |  | Over       |   |         |      
|                               |  | $100,000       |           |  | $100,000   |   |         | Total | 
|                               |  |                |           |  |            |   |         |       | 
|                               |  | (In Thousands) |          
|Three months or less           |  | $              | 1,029,523 |  |            | $ | 131,785 |       |  | $ | 1,161,308 | 
|Over three through six months  |  |                | 219,958   |  |            |   |        |       |  |   | 219,958   | 
|Over six through twelve months |  |                | 319,874   |  |            |   |        |       |  |   | 319,874   | 
|Over twelve months             |  |                | 631,995   |  |            |   |        |       |  |   | 631,995   | 
|                               |  |                |           |  |            |   |         |       | 
|                               |  | $              | 2,201,350 |  |            | $ | 131,785 |       |  | $ | 2,333,135 | 
|                               |  |                |           |  |            |   |         |       | 



-21-



---



##### 





Short-Term Borrowings


|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |           |           |  |  |  |      |  
|---- | ---------------------------------------------- | ---------------------- | --------- | --------- | ------- | - | --------- | --------- |  |  | ------- | -------- | - | -------- | --------- | --------- |  |  |  | ---- | -
|     |                                                | Year Ended December 31 |          
|     |                                                |                        |          
|     |                                                | Maximum                |           |           |         |   | Average   |          
|     |                                                | Outstanding            |           |           |         |   | Average   |           |  |  |         | Interest |  
|     |                                                | At Any                 |           |           | Average |   |           | Interest  |  |  | Ending  |          |   | Rate At  |          
|     |                                                | Month End              |           |           | Balance |   |           | Rate      |  |  | Balance |          |   | Year-End |          
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          
|     |                                                | (In Thousands)         |          
|2004 |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |           |           |  |  |  |     
|     | Federal funds purchased                        |                        | $         | 4,374,545 |         |   | $         | 3,906,691 |  |  |         | 1.38     | % |          | $         | 4,218,045 |  |  |  | 2.17 | %
|     | Securities sold under agreements to repurchase |                        |           | 425,246   |         |   |           | 371,444   |  |  |         | 1.06     |   |          |           | 313,959   |  |  |  | 1.73 |  
|     | Short sales                                    |                        |           | 4,324     |         |   |           | 2,058     |  |  |         | 2.96     |   |          |           | 2,956     |  |  |  | 2.99 |  
|     | Commercial paper                               |                        |           | 97,498    |         |   |           | 77,625    |  |  |         | 0.75     |   |          |           | 97,498    |  |  |  | 1.25 |  
|     | Other short-term borrowings                    |                        |           | 143,603   |         |   |           | 35,898    |  |  |         | 1.75     |   |          |           | 75,317    |  |  |  | 1.74 |  
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          
|     |                                                | $                      | 5,045,216 |           |         | $ | 4,393,716 |           |  |  |         |          |   | $        | 4,707,775 |           |  |  |  |     
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          
|2003 |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |           |           |  |  |  |     
|     | Federal funds purchased                        |                        | $         | 3,715,593 |         |   | $         | 2,476,686 |  |  |         | 1.06     | % |          | $         | 3,715,593 |  |  |  | 0.89 | %
|     | Securities sold under agreements to repurchase |                        |           | 457,078   |         |   |           | 441,896   |  |  |         | 0.85     |   |          |           | 403,031   |  |  |  | 0.71 |  
|     | Short sales                                    |                        |           | 5,583     |         |   |           | 2,419     |  |  |         | 2.51     |   |          |           | 572       |  |  |  | 3.35 |  
|     | Commercial paper                               |                        |           | 73,512    |         |   |           | 80,057    |  |  |         | 0.63     |   |          |           | 73,512    |  |  |  | 0.50 |  
|     | Other short-term borrowings                    |                        |           | 189,453   |         |   |           | 31,074    |  |  |         | 1.45     |   |          |           | 189,453   |  |  |  | 0.70 |  
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          
|     |                                                | $                      | 4,441,219 |           |         | $ | 3,032,132 |           |  |  |         |          |   | $        | 4,382,161 |           |  |  |  |     
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          
|2002 |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |           |           |  |  |  |     
|     | Federal funds purchased                        |                        | $         | 2,923,865 |         |   | $         | 1,842,137 |  |  |         | 1.68     | % |          | $         | 895,685   |  |  |  | 1.01 | %
|     | Securities sold under agreements to repurchase |                        |           | 567,180   |         |   |           | 458,465   |  |  |         | 1.40     |   |          |           | 447,515   |  |  |  | 0.94 |  
|     | Short sales                                    |                        |           | 5,369     |         |   |           | 3,647     |  |  |         | 1.40     |   |          |           | 2,461     |  |  |  | 0.04 |  
|     | Commercial paper                               |                        |           | 76,928    |         |   |           | 68,980    |  |  |         | 1.18     |   |          |           | 76,928    |  |  |  | 0.76 |  
|     | Other short-term borrowings                    |                        |           | 452,754   |         |   |           | 79,410    |  |  |         | 2.12     |   |          |           | 211,550   |  |  |  | 0.92 |  
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          
|     |                                                | $                      | 4,026,096 |           |         | $ | 2,452,639 |           |  |  |         |          |   | $        | 1,634,139 |           |  |  |  |     
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          

Liquidity Management




-22-



---



##### 















Contractual Obligations


|                                   |  |                        |           |           |        |   |           |             |           |   |             |  |  |         |           |  |  |   |           | 
|---------------------------------- |  | ---------------------- | --------- | --------- | ------ | - | --------- | ----------- | --------- | - | ----------- |  |  | ------- | --------- |  |  | - | --------- | 
|                                   |  | Payments Due by Period |          
|                                   |  |                        |          
|                                   |  |                        |           | Less than |        |   |           |             | More than |  
|                                   |  | Total                  |           |           | 1 Year |   |           | 1  3 Years |           |   | 3  5 Years |  |  | 5 Years |          
|                                   |  |                        |           |           |        |   |           |             |           |   |             |  |  |         |          
|                                   |  | (In Thousands)         |          
|FHLB and other borrowings*         |  | $                      | 4,140,972 |           |        | $ | 300,170   |             |           | $ | 700,388     |  |  | $       | 1,614,297 |  |  | $ | 1,526,117 | 
|Capital lease obligations          |  |                        |          |           |        |   |          |             |           |   |            |  |  |         |          |  |  |   |          | 
|Operating leases                   |  |                        | 152,506   |           |        |   | 20,183    |             |           |   | 35,712      |  |  |         | 26,204    |  |  |   | 70,407    | 
|Unconditional purchase obligations |  |                        |          |           |        |   |          |             |           |   |            |  |  |         |          |  |  |   |          | 
|Certificates of deposit            |  |                        | 3,941,188 |           |        |   | 2,410,131 |             |           |   | 1,009,506   |  |  |         | 411,894   |  |  |   | 109,657   | 
|Other time deposits                |  |                        | 131,785   |           |        |   | 131,785   |             |           |   |            |  |  |         |          |  |  |   |          | 
|Other long-term obligations        |  |                        |          |           |        |   |          |             |           |   |            |  |  |         |          |  |  |   |          | 
|                                   |  |                        |           |           |        |   |           |             |           |   |             |  |  |         |          
|                                   |  | $                      | 8,366,451 |           |        | $ | 2,862,269 |             |           | $ | 1,745,606   |  |  | $       | 2,052,395 |  |  | $ | 1,706,181 | 
|                                   |  |                        |           |           |        |   |           |             |           |   |             |  |  |         |          






|  |                                                                                                                                                                                                                                                             
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Refer to Note 8, FHLB and Other Borrowings, and
    Note 9, Capital Securities and Preferred Stock, in the
    Notes to Consolidated Financial Statements for additional
    information about these obligations, including certain
    redemption features.

-23-



---



##### 



Commitments


|                                             |  |                        |            |           |        |   |           |             |           |   |             |  |  |         |         |  |  |   |           | 
|-------------------------------------------- |  | ---------------------- | ---------- | --------- | ------ | - | --------- | ----------- | --------- | - | ----------- |  |  | ------- | ------- |  |  | - | --------- | 
|                                             |  | Payments Due by Period |           
|                                             |  |                        |           
|                                             |  |                        |            | Less than |        |   |           |             | More than |  
|                                             |  | Total                  |            |           | 1 Year |   |           | 1  3 Years |           |   | 3  5 Years |  |  | 5 Years |        
|                                             |  |                        |            |           |        |   |           |             |           |   |             |  |  |         |        
|                                             |  | (In Thousands)         |           
|Lines of credit                              |  | $                      | 11,265,440 |           |        | $ | 8,096,866 |             |           | $ | 525,108     |  |  | $       | 272,833 |  |  | $ | 2,370,633 | 
|Standby and commercial letters of credit     |  |                        | 716,195    |           |        |   | 76,379    |             |           |   | 248,112     |  |  |         | 287,581 |  |  |   | 104,123   | 
|Other contingent liabilities and commitments |  |                        |           |           |        |   |          |             |           |   |            |  |  |         |        |  |  |   |          | 
|                                             |  |                        |            |           |        |   |           |             |           |   |             |  |  |         |        
|                                             |  | $                      | 11,981,635 |           |        | $ | 8,173,245 |             |           | $ | 773,220     |  |  | $       | 560,414 |  |  | $ | 2,474,756 | 
|                                             |  |                        |            |           |        |   |           |             |           |   |             |  |  |         |        

Interest Rate Sensitivity Management








Net Interest Income Sensitivity


|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |        |    |  |        |        |   
|----------------------------- | ------------------------------------- | ------------------- | ---------- | ------------------------------ | ----------------------------- |  | ----- | ------------ | -- |  | ------------ | ------ | -- |  | ------ | ------ | --
|                              |                                       |                     |            | Percentage Increase (Decrease) |                              
|                              |                                       |                     |            | in Interest Income/Expense     |                              
|                              |                                       | Principal           |            |                                | Given Immediate and Sustained | 
|                              |                                       | Amount of           |            |                                | Parallel Interest Rate Shifts | 
|                              |                                       | Earning             |            |                                |                               | 
|                              |                                       | Assets, Interest    |            |                                | Up 100                        |  |       | Down 50      |    |  | Down 100     |       
|                              |                                       | Bearing Liabilities |            |                                | Basis Points                  |  |       | Basis Points |    |  | Basis Points |       
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|                              |                                       | (In Thousands)      |            |                                |                               |  |       |              |   
|December 31, 2004:            |                                       |                     |            |                                |                               |  |       |              |    |  |              |        |    |  |        |       
|Assets which reprice in:      |                                       |                     |            |                                |                               |  |       |              |    |  |              |        |    |  |        |       
|                              | One year or less                      |                     | $          | 12,480,418                     |                               |  |       | 14.42        | %  |  |              | (7.06  | )% |  |        | (13.58 | )%
|                              | Over one year                         |                     |            | 13,610,460                     |                               |  |       | 3.50         |    |  |              | (2.13  | )  |  |        | (5.36  | ) 
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|                              |                                       | $                   | 26,090,878 |                                |                               |  | 8.89  |              |    |  | (4.49        | )      |    |  | (9.41  | )     
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|Liabilities which reprice in: |                                       |                     |            |                                |                               |  |       |              |    |  |              |        |    |  |        |       
|                              | One year or less                      |                     | $          | 16,491,092                     |                               |  |       | 43.31        | %  |  |              | (20.20 | )% |  |        | (40.45 | )%
|                              | Over one year                         |                     |            | 3,920,666                      |                               |  |       | 3.15         |    |  |              | (1.25  | )  |  |        | (2.51  | ) 
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|                              |                                       | $                   | 20,411,758 |                                |                               |  | 27.57 |              |    |  | (12.78       | )      |    |  | (25.58 | )     
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|                              | Total net interest income sensitivity |                     |            |                                |                               |  |       | (0.25        | )% |  |              | (0.55  | )% |  |        | (1.50  | )%

-24-



---



##### 



|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |        |    |  |  |  | 
|----------------------------- | ------------------------------------- | ------------------- | ---------- | ------------------------------ | ----------------------------- |  | ----- | ------------ | -- |  | ------------ | ------ | -- |  |  |  | 
|                              |                                       |                     |            | Percentage Increase (Decrease) |                              
|                              |                                       |                     |            | in Interest Income/Expense     |                              
|                              |                                       | Principal           |            |                                | Given Immediate and Sustained | 
|                              |                                       | Amount of           |            |                                | Parallel Interest Rate Shifts | 
|                              |                                       | Earning             |            |                                |                               | 
|                              |                                       | Assets, Interest    |            |                                | Up 100                        |  |       | Down 50      |    |  | Down 100     |       
|                              |                                       | Bearing Liabilities |            |                                | Basis Points                  |  |       | Basis Points |    |  | Basis Points |       
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|                              |                                       | (In Thousands)      |            |                                |                               |  |       |              |   
|December 31, 2003:            |                                       |                     |            |                                |                               |  |       |              |    |  |              |        |    |  |  | 
|Assets which reprice in:      |                                       |                     |            |                                |                               |  |       |              |    |  |              |        |    |  |  | 
|                              | One year or less                      |                     | $          | 11,538,030                     |                               |  |       | 14.73        | %  |  |              | (5.88  | )% |  |  |  | 
|                              | Over one year                         |                     |            | 13,276,513                     |                               |  |       | 4.55         |    |  |              | (2.72  | )  |  |  |  | 
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|                              |                                       | $                   | 24,814,543 |                                |                               |  | 8.92  |              |    |  | (4.07        | )      |    |  |  | 
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|Liabilities which reprice in: |                                       |                     |            |                                |                               |  |       |              |    |  |              |        |    |  |  | 
|                              | One year or less                      |                     | $          | 16,252,098                     |                               |  |       | 76.28        | %  |  |              | (30.31 | )% |  |  |  | 
|                              | Over one year                         |                     |            | 4,018,547                      |                               |  |       | 1.58         |    |  |              | (0.76  | )  |  |  |  | 
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|                              |                                       | $                   | 20,270,645 |                                |                               |  | 34.68 |              |    |  | (13.85       | )      |    |  |  | 
|                              |                                       |                     |            |                                |                               |  |       |              |    |  |              |       
|                              | Total net interest income sensitivity |                     |            |                                |                               |  |       | (1.51        | )% |  |              | (0.11  | )% |  |  |  | 







Capital Resources






-25-



---



##### 



th








Return on Equity and Assets


|                                                            |  |             |       |   |      |  |       |      |  |  |       |  
|----------------------------------------------------------- |  | ----------- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                                                            |  | December 31 |      
|                                                            |  |             |      
|                                                            |  | 2004        |       |   | 2003 |  |       | 2002 | 
|                                                            |  |             |       |   |      |  |       |      | 
|Return on average assets                                    |  |             | 1.34  | % |      |  | 1.36  | %    |  |  | 1.35  | %
|Return on average equity                                    |  |             | 18.94 |   |      |  | 17.65 |      |  |  | 16.60 |  
|Dividend payout ratio                                       |  |             | 42.37 |   |      |  | 41.64 |      |  |  | 40.68 |  
|Average common shareholders equity to average assets ratio |  |             | 7.06  |   |      |  | 7.71  |      |  |  | 8.11  |  





-26-



---



##### 







Capital Ratios


|                    |                                            |                |   |            |      |  |   |            |  
|------------------- | ------------------------------------------ | -------------- | - | ---------- | ---- |  | - | ---------- | -
|                    |                                            | December 31    |  
|                    |                                            |                |  
|                    |                                            | 2004           |   |            | 2003 | 
|                    |                                            |                |   |            |      | 
|                    |                                            | (In Thousands) |  
|Risk-based capital: |                                            |                |   |            |      |  |   |           
|                    | Tier I Capital                             |                | $ | 2,088,501  |      |  | $ | 1,892,501  |  
|                    | Tangible Tier I Capital                    |                |   | 2,077,921  |      |  |   | 1,879,759  |  
|                    | Total Qualifying Capital                   |                |   | 2,555,415  |      |  |   | 2,397,884  |  
|Assets:             |                                            |                |   |            |      |  |   |           
|                    | Net risk-adjusted assets                   |                | $ | 22,981,908 |      |  | $ | 20,821,477 |  
|                    | Adjusted quarterly average assets          |                |   | 27,797,386 |      |  |   | 26,117,962 |  
|                    | Adjusted tangible quarterly average assets |                |   | 27,786,806 |      |  |   | 26,105,220 |  
|Ratios:             |                                            |                |   |            |      |  |   |           
|                    | Tier I Capital                             |                |   | 9.09       | %    |  |   | 9.09       | %
|                    | Total Qualifying Capital                   |                |   | 11.12      |      |  |   | 11.52      |  
|                    | Leverage                                   |                |   | 7.51       |      |  |   | 7.25       |  
|                    | Tangible leverage                          |                |   | 7.48       |      |  |   | 7.20       |  



Off-Balance Sheet Activities




| |                            
| | ---------------------------
| | Sunbelt Funding Corporation





-27-



---



##### 







Results of Operations




| |                    
| | -------------------
| | Net Interest Income









-28-



---



##### 















-29-



---



##### 





|                                                           |  |                        |        |  |          |   |        |               |  |   |              |  |  |       |        |  |  |   |        | 
|---------------------------------------------------------- |  | ---------------------- | ------ |  | -------- | - | ------ | ------------- |  | - | ------------ |  |  | ----- | ------ |  |  | - | ------ | 
|                                                           |  | For the Quarter Ending |        |  |         
|                                                           |  |                        |        |  |         
|                                                           |  | March 31,              |        |  | June 30, |   |        | September 30, |  |   | December 31, |  |  |      
|                                                           |  | 2003                   |        |  | 2003     |   |        | 2003          |  |   | 2003         |  |  |      
|                                                           |  | Actual                 |        |  | Actual   |   |        | Actual        |  |   | Actual       |  |  | Total |       
|                                                           |  |                        |        |  |          |   |        |               |  |   |              |  |  |       |       
|                                                           |  | (In Thousands)         |        |  |         
|Hedging derivatives positive impact to net interest margin |  | $                      | 29,148 |  |          | $ | 26,034 |               |  | $ | 21,918       |  |  | $     | 21,755 |  |  | $ | 98,855 | 
|                                                           |  |                        |        |  |          |   |        |               |  |   |              |  |  |       |       

|                                                           |  |                        |        |  |          |   |        |               |  |   |              |  |  |       |       |  |  |   |        | 
|---------------------------------------------------------- |  | ---------------------- | ------ |  | -------- | - | ------ | ------------- |  | - | ------------ |  |  | ----- | ----- |  |  | - | ------ | 
|                                                           |  | For the Quarter Ending |        |  |         
|                                                           |  |                        |        |  |         
|                                                           |  | March 31,              |        |  | June 30, |   |        | September 30, |  |   | December 31, |  |  |      
|                                                           |  | 2004                   |        |  | 2004     |   |        | 2004          |  |   | 2004         |  |  |      
|                                                           |  | Actual                 |        |  | Actual   |   |        | Actual        |  |   | Actual       |  |  | Total |      
|                                                           |  |                        |        |  |          |   |        |               |  |   |              |  |  |       |      
|                                                           |  | (In Thousands)         |        |  |         
|Hedging derivatives positive impact to net interest margin |  | $                      | 17,668 |  |          | $ | 13,931 |               |  | $ | 12,012       |  |  | $     | 9,121 |  |  | $ | 52,732 | 
|                                                           |  |                        |        |  |          |   |        |               |  |   |              |  |  |       |      

|                                                           |  |                        |       |  |            |   |       |               |  |   |              |  |  |            |       |  |  |   |        | 
|---------------------------------------------------------- |  | ---------------------- | ----- |  | ---------- | - | ----- | ------------- |  | - | ------------ |  |  | ---------- | ----- |  |  | - | ------ | 
|                                                           |  | For the Quarter Ending |       |  |           
|                                                           |  |                        |       |  |           
|                                                           |  | March 31,              |       |  | June 30,   |   |       | September 30, |  |   | December 31, |  |  |           
|                                                           |  | 2005                   |       |  | 2005       |   |       | 2005          |  |   | 2005         |  |  | Total      |      
|                                                           |  | Projected*             |       |  | Projected* |   |       | Projected*    |  |   | Projected*   |  |  | Projected* |      
|                                                           |  |                        |       |  |            |   |       |               |  |   |              |  |  |            |      
|                                                           |  | (In Thousands)         |       |  |           
|Hedging derivatives positive impact to net interest margin |  | $                      | 6,617 |  |            | $ | 6,251 |               |  | $ | 5,981        |  |  | $          | 5,905 |  |  | $ | 24,754 | 
|                                                           |  |                        |       |  |            |   |       |               |  |   |              |  |  |            |      






|  |                                                                              
|- | -----------------------------------------------------------------------------
|* | Projected impact based on current interest rates as of
    December 31, 2004.



-30-



---



##### 





|                                     |                                                |                                 |   |         |      |  |   |         |   |  |            |         |   |  |   |         |  
|------------------------------------ | ---------------------------------------------- | ------------------------------- | - | ------- | ---- |  | - | ------- | - |  | ---------- | ------- | - |  | - | ------- | -
|                                     |                                                | For the Year Ended December 31, |  
|                                     |                                                |                                 |  
|                                     |                                                | 2005                            |   |         | 2006 |  |   | 2007    |   |  | Thereafter |        
|                                     |                                                |                                 |   |         |      |  |   |         |   |  |            |        
|                                     |                                                | (In Thousands)                  |  
|Non-trading interest rate contracts: |                                                |                                 |   |         |      |  |   |         |   |  |            |         |   |  |   |        
|Cash Flow Hedges:                    |                                                |                                 |   |         |      |  |   |         |   |  |            |         |   |  |   |        
|                                     | Notional maturity                              |                                 | $ | 500,000 |      |  | $ | 200,000 |   |  | $          |        |   |  | $ |        |  
|                                     | Weighted average coupon received on maturities |                                 |   | 2.60    | %    |  |   | 2.13    | % |  |            |        | % |  |   |        | %
|                                     | Weighted average time to maturity (months)     |                                 |   | 7       |      |  |   | 16      |   |  |            |        |   |  |   |        |  
|Fair Value Hedges:                   |                                                |                                 |   |         |      |  |   |         |   |  |            |         |   |  |   |        
|                                     | Notional maturity                              |                                 | $ | 105,000 |      |  | $ |        |   |  | $          | 323,500 |   |  | $ | 375,336 |  
|                                     | Weighted average coupon received on maturities |                                 |   | 4.71    | %    |  |   |        | % |  |            | 7.55    | % |  |   | 6.09    | %
|                                     | Weighted average time to maturity (months)     |                                 |   | 3       |      |  |   |        |   |  |            | 26      |   |  |   | 55      |  





|                                          |  |             |      |   |      |  |      |      |  |  |      |  
|----------------------------------------- |  | ----------- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                          |  | December 31 |     
|                                          |  |             |     
|                                          |  | 2004        |      |   | 2003 |  |      | 2002 | 
|                                          |  |             |      |   |      |  |      |      | 
|Rate earned on interest earning assets    |  |             | 5.02 | % |      |  | 5.58 | %    |  |  | 6.54 | %
|Rate paid on interest bearing liabilities |  |             | 1.77 |   |      |  | 1.98 |      |  |  | 2.63 |  
|Interest rate spread                      |  |             | 3.25 |   |      |  | 3.60 |      |  |  | 3.91 |  
|Net yield on earning assets               |  |             | 3.60 |   |      |  | 3.98 |      |  |  | 4.37 |  

-31-



---



##### 



Consolidated Average Balance Sheets and Rate/Volume
Variances




| |                         
| | ------------------------
| | Taxable Equivalent Basis



|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            |  |   |         |           |  |  |      |      | 
|---------------------------------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------------------ | --------- | ---------- | ---------- |  | - | ------- | --------- |  | ------- | ---- | ---- | ------- | --------- | ---------- | ---------- |  | - | ------- | --------- |  |  | ---- | ---- | 
|                                                                       |                                                                        | Year Ended December 31                     |          
|                                                                       |                                                                        |                                            |          
|                                                                       |                                                                        | 2004                                       |           |            | 2003       | 
|                                                                       |                                                                        |                                            |           |            |            | 
|                                                                       |                                                                        | Average                                    |           |            | Income/    |  |   | Yield/  |           |  | Average |      |      | Income/ |           |            | Yield/     | 
|Yield/Rate Analysis                                                    |                                                                        | Balance                                    |           |            | Expense    |  |   | Rate    |           |  | Balance |      |      | Expense |           |            | Rate       | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|ASSETS                                                                
|Earning assets:                                                        |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            |  |   |         |           |  |  |     
|                                                                       | Loans [a]                                                              |                                            | $         | 17,999,355 |            |  | $ | 950,925 |           |  |         | 5.28 | %    |         | $         | 16,796,188 |            |  | $ | 984,045 |           |  |  | 5.86 | %   
|                                                                       | Investment securities available for sale [b]                           |                                            |           | 4,401,132  |            |  |   | 181,234 |           |  |         | 4.12 |      |         |           | 4,702,137  |            |  |   | 224,854 |           |  |  | 4.78 |     
|                                                                       | Investment securities held to maturity                                 |                                            |           | 2,996,342  |            |  |   | 143,637 |           |  |         | 4.79 |      |         |           | 1,403,812  |            |  |   | 71,085  |           |  |  | 5.06 |     
|                                                                       | Other [b]                                                              |                                            |           | 60,491     |            |  |   | 1,306   |           |  |         | 2.16 |      |         |           | 44,253     |            |  |   | 1,001   |           |  |  | 2.26 |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total earning assets                       |           |            | 25,457,320 |  |   |         | 1,277,102 |  |         |      | 5.02 |         |           |            | 22,946,390 |  |   |         | 1,280,985 |  |  |      | 5.58 | 
|Allowance for loan losses                                              |                                                                        |                                            | (251,713  | )          |            |  |   |         |           |  |         |      |      |         | (237,365  | )          |            |  |   |         |           |  |  |     
|Unrealized gain (loss) on investment securities available for
    sale |                                                                        |                                            | 24,865    |            |            |  |   |         |           |  |         |      |      |         | 107,937   |            |            |  |   |         |           |  |  |     
|Cash and due from banks                                                |                                                                        |                                            | 675,339   |            |            |  |   |         |           |  |         |      |      |         | 625,052   |            |            |  |   |         |           |  |  |     
|Other assets                                                           |                                                                        |                                            | 1,755,264 |            |            |  |   |         |           |  |         |      |      |         | 1,700,705 |            |            |  |   |         |           |  |  |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total assets                               |           | $          | 27,661,075 |  |   |         |           |  |         |      |      |         |           | $          | 25,142,719 |  |   |         |           |  |  |      |      | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                      
|LIABILITIES AND SHAREHOLDERS EQUITY                                  
|Interest bearing liabilities:                                          |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            |  |   |         |           |  |  |     
|                                                                       | Interest bearing demand deposits                                       |                                            | $         | 60,211     |            |  |   | 1,134   |           |  |         | 1.88 |      |         | $         | 95,380     |            |  |   | 1,051   |           |  |  | 1.10 |     
|                                                                       | Savings deposits                                                       |                                            |           | 7,570,719  |            |  |   | 46,555  |           |  |         | 0.61 |      |         |           | 7,374,341  |            |  |   | 59,017  |           |  |  | 0.80 |     
|                                                                       | Certificates of deposit less than $100,000 and other time
    deposits |                                            |           | 2,004,181  |            |  |   | 63,321  |           |  |         | 3.16 |      |         |           | 1,900,864  |            |  |   | 67,716  |           |  |  | 3.56 |     
|                                                                       | Certificates of deposit of $100,000 or more [b]                        |                                            |           | 1,779,343  |            |  |   | 41,240  |           |  |         | 2.32 |      |         |           | 1,436,716  |            |  |   | 36,265  |           |  |  | 2.52 |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total interest bearing deposits            |           |            | 11,414,454 |  |   |         | 152,250   |  |         |      | 1.33 |         |           |            | 10,807,301 |  |   |         | 164,049   |  |  |      | 1.52 | 
|                                                                       | Federal funds purchased                                                |                                            |           | 3,906,691  |            |  |   | 53,729  |           |  |         | 1.38 |      |         |           | 2,476,686  |            |  |   | 26,332  |           |  |  | 1.06 |     
|                                                                       | Securities sold under agreements to repurchase                         |                                            |           | 371,444    |            |  |   | 3,934   |           |  |         | 1.06 |      |         |           | 441,896    |            |  |   | 3,772   |           |  |  | 0.85 |     
|                                                                       | Other short-term borrowings [b]                                        |                                            |           | 115,581    |            |  |   | 1,267   |           |  |         | 1.10 |      |         |           | 113,550    |            |  |   | 987     |           |  |  | 0.87 |     
|                                                                       | FHLB and other borrowings [b]                                          |                                            |           | 4,589,059  |            |  |   | 150,518 |           |  |         | 3.28 |      |         |           | 4,770,676  |            |  |   | 172,617 |           |  |  | 3.62 |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total interest bearing liabilities         |           |            | 20,397,229 |  |   |         | 361,698   |  |         |      | 1.77 |         |           |            | 18,610,109 |  |   |         | 367,757   |  |  |      | 1.98 | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                       | Net interest income/net interest spread                                |                                            |           |            |            |  |   | 915,404 |           |  |         | 3.25 | %    |         |           |            |            |  |   | 913,228 |           |  |  | 3.60 | %   
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|Noninterest bearing demand deposits                                    |                                                                        |                                            | 4,999,763 |            |            |  |   |         |           |  |         |      |      |         | 4,185,527 |            |            |  |   |         |           |  |  |     
|Accrued expenses and other liabilities                                 |                                                                        |                                            | 311,724   |            |            |  |   |         |           |  |         |      |      |         | 409,753   |            |            |  |   |         |           |  |  |     
|Shareholders equity                                                   |                                                                        |                                            | 1,952,359 |            |            |  |   |         |           |  |         |      |      |         | 1,937,330 |            |            |  |   |         |           |  |  |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total liabilities and shareholders equity |           | $          | 27,661,075 |  |   |         |           |  |         |      |      |         |           | $          | 25,142,719 |  |   |         |           |  |  |      |      | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                       | Net yield on earning assets                                            |                                            |           |            |            |  |   |         |           |  |         | 3.60 | %    |         |           |            |            |  |   |         |           |  |  | 3.98 | %   
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|Taxable equivalent adjustment:                                         |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            |  |   |         |           |  |  |     
|                                                                       | Loans                                                                  |                                            |           |            |            |  |   | 764     |           |  |         |      |      |         |           |            |            |  |   | 523     |           |  |  |      |     
|                                                                       | Investment securities available for sale                               |                                            |           |            |            |  |   | 159     |           |  |         |      |      |         |           |            |            |  |   | 1,280   |           |  |  |      |     
|                                                                       | Investment securities held to maturity                                 |                                            |           |            |            |  |   | 2,613   |           |  |         |      |      |         |           |            |            |  |   | 1,868   |           |  |  |      |     
|                                                                       | Other                                                                  |                                            |           |            |            |  |   | 40      |           |  |         |      |      |         |           |            |            |  |   | 27      |           |  |  |      |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total taxable equivalent adjustment        |           |            |            |  |   |         | 3,576     |  |         |      |      |         |           |            |            |  |   |         | 3,698     |  |  |      |      | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Net interest income                        |           |            |            |  |   | $       | 911,828   |  |         |      |      |         |           |            |            |  |   | $       | 909,530   |  |  |      |      | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |         |           |  |         |      |      |         |           |            |            | 








-32-



---



##### 







| | 
| | 
| | 



| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  | ---------------------- | ---------- | - | ------------------------------------------------- | - | --------- | ------ |  |  | ------ | - |  | ---- | ------- | - | --- | - | -------- | ------ |  | - | ------- | - |  | --- | ------- | - |  | - | -------- | - |  | - | ------- | -
| |  | Year Ended December 31 |            |   |                                                  
| |  |                        |            |   | Change in Interest Income/Expense Attributable to |  
| |  |                        |            |   |                                                  
| |  | 2002                   |            |   |                                                   |   |          
| |  |                        |            |   | 2004                                              |   |           | 2003   | 
| |  | Average                |            |   | Income/                                           |   |           | Yield/ |  |  |        |   |  |      |        
| |  | Balance                |            |   | Expense                                           |   |           | Rate   |  |  | Volume |   |  | Rate |         |   | Mix |   |          | Volume |  |   | Rate    |   |  | Mix |        
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  | $                      | 15,100,844 |   |                                                   | $ | 1,036,269 |        |  |  | 6.86   | % |  | $    | 70,506  |   |     | $ | (97,418  | )      |  | $ | (6,208  | ) |  | $   | 116,301 |   |  | $ | (151,008 | ) |  | $ | (17,517 | )
| |  |                        | 5,412,176  |   |                                                   |   | 310,949   |        |  |  | 5.75   |   |  |      | (14,388 | ) |     |   | (31,034  | )      |  |   | 1,802   |   |  |     | (40,827 | ) |  |   | (52,498  | ) |  |   | 7,230   |  
| |  |                        | 712,403    |   |                                                   |   | 42,735    |        |  |  | 6.00   |   |  |      | 80,582  |   |     |   | (3,790   | )      |  |   | (4,240  | ) |  |     | 41,485  |   |  |   | (6,697   | ) |  |   | (6,438  | )
| |  |                        | 42,254     |   |                                                   |   | 1,373     |        |  |  | 3.25   |   |  |      | 367     |   |     |   | (44      | )      |  |   | (18     | ) |  |     | 65      |   |  |   | (418     | ) |  |   | (19     | )
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  |                        | 21,267,677 |   |                                                   |   | 1,391,326 |        |  |  | 6.54   |   |  |      | 137,067 |   |     |   | (132,286 | )      |  |   | (8,664  | ) |  |     | 117,024 |   |  |   | (210,621 | ) |  |   | (16,744 | )
| |  |                        | (210,205   | ) |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 135,708    |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 602,608    |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 1,558,539  |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  | $                      | 23,354,327 |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  | $                      | 83,567     |   |                                                   |   | 1,374     |        |  |  | 1.64   |   |  |      | (387    | ) |     |   | 744      |        |  |   | (274    | ) |  |     | 194     |   |  |   | (451     | ) |  |   | (66     | )
| |  |                        | 6,963,573  |   |                                                   |   | 94,528    |        |  |  | 1.36   |   |  |      | 1,571   |   |     |   | (14,011  | )      |  |   | (22     | ) |  |     | 5,586   |   |  |   | (38,996  | ) |  |   | (2,101  | )
| |  |                        | 2,272,227  |   |                                                   |   | 99,363    |        |  |  | 4.37   |   |  |      | 3,678   |   |     |   | (7,603   | )      |  |   | (470    | ) |  |     | (16,229 | ) |  |   | (18,405  | ) |  |   | 2,987   |  
| |  |                        | 1,294,230  |   |                                                   |   | 44,429    |        |  |  | 3.43   |   |  |      | 8,634   |   |     |   | (2,873   | )      |  |   | (786    | ) |  |     | 4,887   |   |  |   | (11,777  | ) |  |   | (1,274  | )
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  |                        | 10,613,597 |   |                                                   |   | 239,694   |        |  |  | 2.26   |   |  |      | 13,496  |   |     |   | (23,743  | )      |  |   | (1,552  | ) |  |     | (5,562  | ) |  |   | (69,629  | ) |  |   | (454    | )
| |  |                        | 1,842,137  |   |                                                   |   | 30,910    |        |  |  | 1.68   |   |  |      | 15,158  |   |     |   | 7,925    |        |  |   | 4,314   |   |  |     | 10,660  |   |  |   | (11,421  | ) |  |   | (3,817  | )
| |  |                        | 458,465    |   |                                                   |   | 6,431     |        |  |  | 1.40   |   |  |      | (599    | ) |     |   | 928      |        |  |   | (167    | ) |  |     | (232    | ) |  |   | (2,522   | ) |  |   | 95      |  
| |  |                        | 152,037    |   |                                                   |   | 2,544     |        |  |  | 1.67   |   |  |      | 18      |   |     |   | 261      |        |  |   | 1       |   |  |     | (643    | ) |  |   | (1,216   | ) |  |   | 302     |  
| |  |                        | 4,522,157  |   |                                                   |   | 182,489   |        |  |  | 4.04   |   |  |      | (6,575  | ) |     |   | (16,220  | )      |  |   | 696     |   |  |     | 10,040  |   |  |   | (18,993  | ) |  |   | (919    | )
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  |                        | 17,588,393 |   |                                                   |   | 462,068   |        |  |  | 2.63   |   |  |      | 21,498  |   |     |   | (30,849  | )      |  |   | 3,292   |   |  |     | 14,263  |   |  |   | (103,781 | ) |  |   | (4,793  | )
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  |                        |            |   |                                                   |   | 929,258   |        |  |  | 3.91   | % |  | $    | 115,569 |   |     | $ | (101,437 | )      |  | $ | (11,956 | ) |  | $   | 102,761 |   |  | $ | (106,840 | ) |  | $ | (11,951 | )
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  |                        | 3,527,777  |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 344,520    |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 1,893,637  |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  | $                      | 23,354,327 |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  |                        |            |   |                                                   |   |           |        |  |  | 4.37   | % |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  |                        |            |   |                                                   |   | 530       |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   | 2,108     |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   | 1,710     |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   | 55        |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  |                        |            |   |                                                   |   | 4,403     |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        
| |  |                        |            |   |                                                   | $ | 924,855   |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |          |        |  |   |         |   |  |     |        

-33-



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##### 



Provision for Loan Losses, Net Charge-Offs and Allowance for
Loan Losses










| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Large classified loans, nonaccrual loans and loans considered
    impaired are evaluated individually with specific reserves
    allocated based on managements review.                                                                                                                                                                                                                                                                                                         
|
| |  | Smaller homogenous nonaccrual and adversely classified loans are
    assigned a portion of the allowance based on loan grading.
    Smaller past due loans are assigned a portion of the allowance
    using a formula that is based on the severity of the delinquency.                                                                                                                                                                                                         
|
| |  | The remainder of the portfolio is allocated a portion of the
    allowance based on past loss experience and the economic
    conditions for the particular loan portfolio. Allocation weights
    are assigned based on the Companys historical loan loss
    experience, in accordance with SFAS No. 114, in each
    loan category, although a higher allocation weight may be used
    if current conditions indicate that loan losses may exceed
    historical experience.





-34-



---



##### 





Summary of Loan Loss Experience


|                                                 |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |            |         |        |   |            |        |        | 
|------------------------------------------------ | -------------------------------------- | --------------- | ---------- | ------- | ------- | - | ---------- | ------- | ------- | - | ---------- | ------- | ------- | ---- | ---------- | ------- | ------ | - | ---------- | ------ | ------ | 
|                                                 |                                        | 2004            |            |         | 2003    |   |            | 2002    |         |   | 2001       |         |         | 2000 |           
|                                                 |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                                 |                                        | (In Thousands)  |           
|Average loans outstanding during the year        |                                        | $               | 17,999,355 |         |         | $ | 16,796,188 |         |         | $ | 15,100,844 |         |         | $    | 13,008,761 |         |        | $ | 12,112,471 |       
|                                                 |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|Allowance for loan losses, beginning of year     |                                        | $               | 244,882    |         |         | $ | 232,830    |         |         | $ | 191,393    |         |         | $    | 167,288    |         |        | $ | 151,211    |       
|Charge-offs:                                     |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |            |         |        |   |            |       
|                                                 | Commercial, financial and agricultural |                 |            | 14,863  |         |   |            | 23,078  |         |   |            | 26,608  |         |      |            | 37,769  |        |   |            | 24,548 |       
|                                                 | Commercial real estate  mortgage      |                 |            | 4,564   |         |   |            | 2,836   |         |   |            | 3,155   |         |      |            | 796     |        |   |            | 196    |       
|                                                 | Real estate  construction             |                 |            | 246     |         |   |            | 2,290   |         |   |            | 3,735   |         |      |            | 1,487   |        |   |            | 140    |       
|                                                 | Residential real estate  mortgage     |                 |            | 1,778   |         |   |            | 1,547   |         |   |            | 1,887   |         |      |            | 1,672   |        |   |            | 1,182  |       
|                                                 | Equity lines of credit                 |                 |            | 2,437   |         |   |            | 2,973   |         |   |            | 1,343   |         |      |            | 462     |        |   |            | 34     |       
|                                                 | Equity loans                           |                 |            | 2,549   |         |   |            | 5,065   |         |   |            | 2,926   |         |      |            | 890     |        |   |            | 270    |       
|                                                 | Credit card                            |                 |            | 37,625  |         |   |            | 36,248  |         |   |            | 35,296  |         |      |            | 23,375  |        |   |            | 17,931 |       
|                                                 | Consumer installment  direct          |                 |            | 14,675  |         |   |            | 15,825  |         |   |            | 11,376  |         |      |            | 11,595  |        |   |            | 11,092 |       
|                                                 | Consumer installment  indirect        |                 |            | 38,860  |         |   |            | 33,865  |         |   |            | 23,061  |         |      |            | 16,613  |        |   |            | 13,800 |       
|                                                 |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                                 |                                        | Total           |            |         | 117,597 |   |            |         | 123,727 |   |            |         | 109,387 |      |            |         | 94,659 |   |            |        | 69,193 | 
|Recoveries:                                      |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |            |         |        |   |            |       
|                                                 | Commercial, financial and agricultural |                 |            | 5,549   |         |   |            | 5,285   |         |   |            | 2,759   |         |      |            | 2,168   |        |   |            | 2,202  |       
|                                                 | Commercial real estate  mortgage      |                 |            | 274     |         |   |            | 149     |         |   |            | 211     |         |      |            | 116     |        |   |            | 23     |       
|                                                 | Real estate  construction             |                 |            | 110     |         |   |            | 472     |         |   |            | 54      |         |      |            | 3       |        |   |            | 5      |       
|                                                 | Residential real estate  mortgage     |                 |            | 133     |         |   |            | 207     |         |   |            | 390     |         |      |            | 236     |        |   |            | 160    |       
|                                                 | Equity lines of credit                 |                 |            | 271     |         |   |            | 54      |         |   |            | 127     |         |      |            | 4       |        |   |            | 4      |       
|                                                 | Equity loans                           |                 |            | 434     |         |   |            | 198     |         |   |            | 18      |         |      |            |        |        |   |            |       |       
|                                                 | Credit card                            |                 |            | 2,830   |         |   |            | 2,038   |         |   |            | 2,015   |         |      |            | 2,086   |        |   |            | 1,881  |       
|                                                 | Consumer installment  direct          |                 |            | 5,966   |         |   |            | 4,786   |         |   |            | 4,570   |         |      |            | 3,985   |        |   |            | 3,279  |       
|                                                 | Consumer installment  indirect        |                 |            | 10,420  |         |   |            | 6,271   |         |   |            | 4,349   |         |      |            | 4,975   |        |   |            | 4,578  |       
|                                                 |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                                 |                                        | Total           |            |         | 25,987  |   |            |         | 19,460  |   |            |         | 14,493  |      |            |         | 13,573 |   |            |        | 12,132 | 
|                                                 |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                                 |                                        | Net charge-offs |            |         | 91,610  |   |            |         | 104,267 |   |            |         | 94,894  |      |            |         | 81,086 |   |            |        | 57,061 | 
|                                                 | Provision charged to income            |                 |            | 105,658 |         |   |            | 119,681 |         |   |            | 136,331 |         |      |            | 106,241 |        |   |            | 65,578 |       
|Allowance for loans acquired (sold/ securitized) |                                        |                 | (591       | )       |         |   | (3,362     | )       |         |   |           |         |         |      | (1,050     | )       |        |   | 7,560      |       
|                                                 |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|Allowance for loan losses, end of year           |                                        | $               | 258,339    |         |         | $ | 244,882    |         |         | $ | 232,830    |         |         | $    | 191,393    |         |        | $ | 167,288    |       
|                                                 |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|Net charge-offs to average loans outstanding     |                                        |                 | .51        | %       |         |   | .62        | %       |         |   | .63        | %       |         |      | .62        | %       |        |   | .47        | %     

-35-



---



##### 





Allocation of Allowance for Loan Losses


|                                       |             |                |         |            |             |  |       |        |            |   |             |        |  |            |       |      |             |   |            |        |  |  |             |            |  |        |         |        |             |  |       |      |  |   |         |        |  |  |       |      | 
|-------------------------------------- | ----------- | -------------- | ------- | ---------- | ----------- |  | ----- | ------ | ---------- | - | ----------- | ------ |  | ---------- | ----- | ---- | ----------- | - | ---------- | ------ |  |  | ----------- | ---------- |  | ------ | ------- | ------ | ----------- |  | ----- | ---- |  | - | ------- | ------ |  |  | ----- | ---- | 
|                                       |             | December 31    |        
|                                       |             |                |        
|                                       |             | 2004           |         |            | 2003        |  |       | 2002   |            |   | 2001        |        |  | 2000       |      
|                                       |             |                |         |            |             |  |       |        |            |   |             |        |  |            |      
|                                       |             |                |         | Percent of |             |  |       |        | Percent of |   |             |        |  | Percent of |       |      |             |   | Percent of |        |  |  |             | Percent of | 
|                                       |             |                |         | Loans to   |             |  |       |        | Loans to   |   |             |        |  | Loans to   |       |      |             |   | Loans to   |        |  |  |             | Loans to   | 
|                                       |             | Amount         |         |            | Total Loans |  |       | Amount |            |   | Total Loans |        |  | Amount     |       |      | Total Loans |   |            | Amount |  |  | Total Loans |            |  | Amount |         |        | Total Loans | 
|                                       |             |                |         |            |             |  |       |        |            |   |             |        |  |            |       |      |             |   |            |        |  |  |             |            |  |        |         |        |             | 
|                                       |             | (In Thousands) |        
|Commercial, financial and agricultural |             | $              | 55,077  |            |             |  | 19.9  | %      |            | $ | 59,308      |        |  |            | 20.6  | %    |             | $ | 57,685     |        |  |  | 22.4        | %          |  | $      | 54,400  |        |             |  | 27.0  | %    |  | $ | 66,454  |        |  |  | 29.7  | %   
|Real estate  construction             |             |                | 24,613  |            |             |  | 16.1  |        |            |   | 22,119      |        |  |            | 14.3  |      |             |   | 28,123     |        |  |  | 15.3        |            |  |        | 26,720  |        |             |  | 16.9  |      |  |   | 26,587  |        |  |  | 18.7  |     
|Real estate  mortgage:                |             |                |         |            |             |  |       |        |            |   |             |        |  |            |       |      |             |   |            |        |  |  |             |            |  |        |         |        |             |  |       |      |  |   |         |        |  |  |       |     
|                                       | Residential |                |         | 17,897     |             |  |       | 21.4   |            |   |             | 14,420 |  |            |       | 22.1 |             |   |            | 14,188 |  |  |             | 24.2       |  |        |         | 8,498  |             |  |       | 20.7 |  |   |         | 5,561  |  |  |       | 18.4 | 
|                                       | Commercial  |                |         | 29,011     |             |  |       | 20.9   |            |   |             | 31,746 |  |            |       | 22.6 |             |   |            | 23,642 |  |  |             | 19.5       |  |        |         | 18,787 |             |  |       | 17.6 |  |   |         | 18,760 |  |  |       | 17.5 | 
|Consumer                               |             |                | 131,741 |            |             |  | 21.7  |        |            |   | 117,289     |        |  |            | 20.4  |      |             |   | 109,192    |        |  |  | 18.6        |            |  |        | 82,988  |        |             |  | 17.8  |      |  |   | 49,926  |        |  |  | 15.7  |     
|                                       |             |                |         |            |             |  |       |        |            |   |             |        |  |            |       |      |             |   |            |        |  |  |             |            |  |        |         |        |             | 
|                                       |             | $              | 258,339 |            |             |  | 100.0 | %      |            | $ | 244,882     |        |  |            | 100.0 | %    |             | $ | 232,830    |        |  |  | 100.0       | %          |  | $      | 191,393 |        |             |  | 100.0 | %    |  | $ | 167,288 |        |  |  | 100.0 | %   
|                                       |             |                |         |            |             |  |       |        |            |   |             |        |  |            |       |      |             |   |            |        |  |  |             |            |  |        |         |        |             | 

Nonperforming Assets








-36-



---



##### 





Nonperforming Assets


|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |        |         | 
|-------------------------------------------------------------------- | -------------------------- | -------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ |  | ---- | ------ | ------ |  | - | ------ | ------- | 
|                                                                     |                            | December 31    |       
|                                                                     |                            |                |       
|                                                                     |                            | 2004           |        |        | 2003 |   |        | 2002   |  |   | 2001   |        |  | 2000 |       
|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |       
|                                                                     |                            | (In Thousands) |       
|Nonaccrual loans                                                     |                            | $              | 49,947 |        |      | $ | 65,870 |        |  | $ | 81,671 |        |  | $    | 65,470 |        |  | $ | 86,168 |        
|Renegotiated loans                                                   |                            |                | 734    |        |      |   | 218    |        |  |   | 38     |        |  |      | 327    |        |  |   | 84     |        
|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |       
|                                                                     | Total nonperforming loans  |                |        | 50,681 |      |   |        | 66,088 |  |   |        | 81,709 |  |      |        | 65,797 |  |   |        | 86,252  | 
|Other real estate                                                    |                            |                | 19,998 |        |      |   | 29,014 |        |  |   | 17,300 |        |  |      | 26,478 |        |  |   | 15,476 |        
|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |       
|                                                                     | Total nonperforming assets |                | $      | 70,679 |      |   | $      | 95,102 |  |   | $      | 99,009 |  |      | $      | 92,275 |  |   | $      | 101,728 | 
|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |       
|Accruing loans 90 days or more past due                              |                            | $              | 15,509 |        |      | $ | 26,159 |        |  | $ | 16,907 |        |  | $    | 17,577 |        |  | $ | 19,884 |        
|Total nonperforming loans as a percentage of loans                   |                            |                | .27    | %      |      |   | .38    | %      |  |   | .50    | %      |  |      | .48    | %      |  |   | .70    | %      
|Total nonperforming assets as a percentage of loans and ORE          |                            |                | .37    |        |      |   | .55    |        |  |   | .60    |        |  |      | .67    |        |  |   | .83    |        
|Accruing loans 90 days or more past due as a percentage of
    loans |                            |                | .08    |        |      |   | .15    |        |  |   | .10    |        |  |      | .13    |        |  |   | .16    |        



|                                                            |  |                |        |  |      |   |        |      |  |   |        | 
|----------------------------------------------------------- |  | -------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                                            |  | 2004           |        |  | 2003 |   |        | 2002 | 
|                                                            |  |                |        |  |      |   |        |      | 
|                                                            |  | (In Thousands) |       
|Principal balance                                           |  | $              | 49,947 |  |      | $ | 65,870 |      |  | $ | 81,671 | 
|Interest that would have been recorded under original terms |  |                | 4,819  |  |      |   | 6,228  |      |  |   | 7,979  | 
|Interest actually recorded                                  |  |                | 2,195  |  |      |   | 2,736  |      |  |   | 4,007  | 

Noninterest Income










-37-



---



##### 











Noninterest Expense














-38-



---



##### 



Income Taxes




Accounting Pronouncements




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

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








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

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


-39-



---



##### 





| |                                                             
| | ------------------------------------------------------------
| | Application of Accounting Principles to
    Loan Commitments

Application of Accounting
Principles to Loan Commitments.




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

Share-Based Payments.


Impact of Inflation and Changing Prices






-40-



---



##### 





|         |                                            
|-------- | -------------------------------------------
|ITEM 8  | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



Compass Bancshares, Inc. and Subsidiaries


Financial Statements


|                                                                                                             |  |      |    | 
|------------------------------------------------------------------------------------------------------------ |  | ---- | -- | 
|                                                                                                             |  | Page |   
|                                                                                                             |  |      |   
|Report of Independent Registered Public
    Accounting Firm                                                  |  |      | 42 | 
|Consolidated Balance Sheets as of
    December 31, 2004 and 2003                                             |  |      | 44 | 
|Consolidated Statements of Income for the
    years ended December 31, 2004, 2003 and 2002                   |  |      | 45 | 
|Consolidated Statements of
    Shareholders Equity for the years ended December 31,
    2004, 2003 and 2002 |  |      | 46 | 
|Consolidated Statements of Cash Flows for
    the years ended December 31, 2004, 2003 and 2002               |  |      | 47 | 
|Notes to Consolidated Financial
    Statements  December 31, 2004, 2003 and 2002                            |  |      | 48 | 

-41-



---



##### 






Report of Independent Registered Public Accounting Firm






Consolidated financial statements




Consolidation of Variable Interest Entities
(Revised December, 2003).


Internal control over financial reporting


Internal Control-Integrated Framework Internal Control-Integrated Framework




-42-



---



##### 













-43-



---



##### 



Compass Bancshares, Inc. and Subsidiaries





Consolidated Balance Sheets


|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |            |            |            |            |            | 
|-------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- | 
|                                                                                                                     |                                                                                     | December 31                                                                                                                     |                                           
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                           
|                                                                                                                     |                                                                                     | 2004                                                                                                                            |                                            |            | 2003       |           
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                     | (In Thousands)                                                                                                                  |                                           
|ASSETS                                                                                                              
|Cash and due from banks                                                                                              |                                                                                     | $                                                                                                                               | 585,679                                    |            |            | $          | 726,492    |           
|Federal funds sold and securities purchased under agreements to
    resell                                           |                                                                                     |                                                                                                                                 | 46,948                                     |            |            |            | 78,165     |           
|Trading account assets                                                                                               |                                                                                     |                                                                                                                                 | 60,156                                     |            |            |            | 59,024     |           
|Investment securities available for sale                                                                             |                                                                                     |                                                                                                                                 | 4,398,184                                  |            |            |            | 4,375,208  |           
|Investment securities held to maturity (fair value of $2,768,334
    and $2,949,023 for 2004 and 2003, respectively) |                                                                                     |                                                                                                                                 | 2,767,099                                  |            |            |            | 2,936,344  |           
|Loans                                                                                                                |                                                                                     |                                                                                                                                 | 18,856,922                                 |            |            |            | 17,365,802 |           
|Allowance for loan losses                                                                                            |                                                                                     |                                                                                                                                 | (258,339                                   | )          |            |            | (244,882   | )         
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                     | Net loans                                                                                                                       |                                            |            | 18,598,583 |            |            |            | 17,120,920 |           
|Premises and equipment, net                                                                                          |                                                                                     |                                                                                                                                 | 537,466                                    |            |            |            | 527,295    |           
|Bank owned life insurance                                                                                            |                                                                                     |                                                                                                                                 | 423,942                                    |            |            |            | 409,188    |           
|Goodwill                                                                                                             |                                                                                     |                                                                                                                                 | 302,619                                    |            |            |            | 293,839    |           
|Other assets                                                                                                         |                                                                                     |                                                                                                                                 | 463,952                                    |            |            |            | 436,638    |           
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                     |                                                                                                                                 | Total assets                               |            | $          | 28,184,628 |            |            | $          | 26,963,113 | 
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |           
|                                                                                                                    
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                
|Deposits:                                                                                                            |                                                                                     |                                                                                                                                 |                                            |            |            |            |            |           
|                                                                                                                     | Noninterest bearing                                                                 |                                                                                                                                 | $                                          | 5,476,140  |            |            | $          | 4,627,153  |           
|                                                                                                                     | Interest bearing                                                                    |                                                                                                                                 |                                            | 11,563,011 |            |            |            | 11,060,670 |           
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                     | Total deposits                                                                                                                  |                                            |            | 17,039,151 |            |            |            | 15,687,823 |           
|Federal funds purchased and securities sold under agreements to
    repurchase                                       |                                                                                     |                                                                                                                                 | 4,532,004                                  |            |            |            | 4,118,624  |           
|Other short-term borrowings                                                                                          |                                                                                     |                                                                                                                                 | 175,771                                    |            |            |            | 263,537    |           
|FHLB and other borrowings                                                                                            |                                                                                     |                                                                                                                                 | 4,140,972                                  |            |            |            | 4,827,814  |           
|Accrued expenses and other liabilities                                                                               |                                                                                     |                                                                                                                                 | 251,477                                    |            |            |            | 193,432    |           
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                     | Total liabilities                                                                                                               |                                            |            | 26,139,375 |            |            |            | 25,091,230 |           
|Shareholders equity:                                                                                                |                                                                                     |                                                                                                                                 |                                            |            |            |            |            |           
|                                                                                                                     | Preferred stock (25,000,000 shares authorized)                                      |                                                                                                                                 |                                            |           |            |            |            |           |           
|                                                                                                                     | Common stock of $2 par value:                                                       |                                                                                                                                 |                                            |            |            |            |            |            |           
|                                                                                                                     |                                                                                     | Authorized  300,000,000 shares in 2004 and
    2003
    Issued  132,903,225 shares in 2004 and
    131,569,085 shares in 2003 |                                            |            | 265,806    |            |            |            | 263,138    |           
|                                                                                                                     | Treasury stock, at cost (9,639,194 shares in 2004 and
    9,482,900 shares in 2003) |                                                                                                                                 |                                            | (333,351   | )          |            |            | (317,669   | )         
|                                                                                                                     | Surplus                                                                             |                                                                                                                                 |                                            | 264,400    |            |            |            | 227,404    |           
|                                                                                                                     | Loans to finance stock purchases                                                    |                                                                                                                                 |                                            | (1,056     | )          |            |            | (809       | )         
|                                                                                                                     | Unearned restricted stock                                                           |                                                                                                                                 |                                            | (10,624    | )          |            |            | (6,485     | )         
|                                                                                                                     | Accumulated other comprehensive income (loss)                                       |                                                                                                                                 |                                            | (23,376    | )          |            |            | 37,306     |           
|                                                                                                                     | Retained earnings                                                                   |                                                                                                                                 |                                            | 1,883,454  |            |            |            | 1,668,998  |           
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                     | Total shareholders equity                                                                                                      |                                            |            | 2,045,253  |            |            |            | 1,871,883  |           
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                     |                                                                                                                                 | Total liabilities and shareholders equity |            | $          | 28,184,628 |            |            | $          | 26,963,113 | 
|                                                                                                                     |                                                                                     |                                                                                                                                 |                                            |            |            |           



-44-



---



##### 



Compass Bancshares, Inc. and Subsidiaries





Consolidated Statements of Income


|                                            |                                                                                            |                                                     |         |         |           |   |         |         |           |   |         |           |           | 
|------------------------------------------- | ------------------------------------------------------------------------------------------ | --------------------------------------------------- | ------- | ------- | --------- | - | ------- | ------- | --------- | - | ------- | --------- | --------- | 
|                                            |                                                                                            | Year Ended December 31                              |        
|                                            |                                                                                            |                                                     |        
|                                            |                                                                                            | 2004                                                |         |         | 2003      |   |         | 2002    |          
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|                                            |                                                                                            | (In Thousands, Except Per Share Data)               |        
|Interest income:                            |                                                                                            |                                                     |         |         |           |   |         |         |           |   |         |          
|                                            | Interest and fees on loans                                                                 |                                                     | $       | 950,161 |           |   | $       | 983,522 |           |   | $       | 1,035,739 |          
|                                            | Interest on investment securities available for sale                                       |                                                     |         | 181,075 |           |   |         | 223,574 |           |   |         | 308,841   |          
|                                            | Interest on investment securities held to maturity                                         |                                                     |         | 141,024 |           |   |         | 69,217  |           |   |         | 41,025    |          
|                                            | Interest on federal funds sold and securities purchased under
    agreements to resell     |                                                     |         | 801     |           |   |         | 485     |           |   |         | 508       |          
|                                            | Interest on trading account assets                                                         |                                                     |         | 465     |           |   |         | 489     |           |   |         | 810       |          
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|                                            |                                                                                            | Total interest income                               |         |         | 1,273,526 |   |         |         | 1,277,287 |   |         |           | 1,386,923 | 
|Interest expense:                           |                                                                                            |                                                     |         |         |           |   |         |         |           |   |         |          
|                                            | Interest on deposits                                                                       |                                                     |         | 152,250 |           |   |         | 164,049 |           |   |         | 239,694   |          
|                                            | Interest on federal funds purchased and securities sold under
    agreements to repurchase |                                                     |         | 57,663  |           |   |         | 30,104  |           |   |         | 37,341    |          
|                                            | Interest on other short-term borrowings                                                    |                                                     |         | 1,267   |           |   |         | 987     |           |   |         | 2,544     |          
|                                            | Interest on FHLB and other borrowings                                                      |                                                     |         | 150,518 |           |   |         | 172,617 |           |   |         | 182,489   |          
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|                                            |                                                                                            | Total interest expense                              |         |         | 361,698   |   |         |         | 367,757   |   |         |           | 462,068   | 
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|                                            |                                                                                            | Net interest income                                 |         |         | 911,828   |   |         |         | 909,530   |   |         |           | 924,855   | 
|Provision for loan losses                   |                                                                                            |                                                     | 105,658 |         |           |   | 119,681 |         |           |   | 136,331 |          
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|                                            |                                                                                            | Net interest income after provision for loan losses |         |         | 806,170   |   |         |         | 789,849   |   |         |           | 788,524   | 
|Noninterest income:                         |                                                                                            |                                                     |         |         |           |   |         |         |           |   |         |          
|                                            | Service charges on deposit accounts                                                        |                                                     |         | 282,808 |           |   |         | 241,419 |           |   |         | 191,642   |          
|                                            | Card and merchant processing fees                                                          |                                                     |         | 75,548  |           |   |         | 60,067  |           |   |         | 51,220    |          
|                                            | Insurance commissions                                                                      |                                                     |         | 51,437  |           |   |         | 44,024  |           |   |         | 21,452    |          
|                                            | Retail investment sales                                                                    |                                                     |         | 31,316  |           |   |         | 27,440  |           |   |         | 26,105    |          
|                                            | Asset management fees                                                                      |                                                     |         | 22,666  |           |   |         | 21,994  |           |   |         | 20,149    |          
|                                            | Corporate and correspondent investment sales                                               |                                                     |         | 20,457  |           |   |         | 28,957  |           |   |         | 25,997    |          
|                                            | Bank owned life insurance                                                                  |                                                     |         | 17,169  |           |   |         | 16,928  |           |   |         | 18,839    |          
|                                            | Investment securities gains (losses), net                                                  |                                                     |         | 27,336  |           |   |         | (43     | )         |   |         | 4,233     |          
|                                            | Other                                                                                      |                                                     |         | 88,853  |           |   |         | 85,398  |           |   |         | 81,426    |          
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|                                            |                                                                                            | Total noninterest income                            |         |         | 617,590   |   |         |         | 526,184   |   |         |           | 441,063   | 
|Noninterest expense:                        |                                                                                            |                                                     |         |         |           |   |         |         |           |   |         |          
|                                            | Salaries, benefits and commissions                                                         |                                                     |         | 458,356 |           |   |         | 429,486 |           |   |         | 391,056   |          
|                                            | Equipment                                                                                  |                                                     |         | 76,169  |           |   |         | 72,302  |           |   |         | 65,429    |          
|                                            | Net occupancy                                                                              |                                                     |         | 65,791  |           |   |         | 61,607  |           |   |         | 57,137    |          
|                                            | Professional services                                                                      |                                                     |         | 57,380  |           |   |         | 56,518  |           |   |         | 53,146    |          
|                                            | Marketing                                                                                  |                                                     |         | 33,249  |           |   |         | 31,946  |           |   |         | 28,290    |          
|                                            | Communications                                                                             |                                                     |         | 21,859  |           |   |         | 24,548  |           |   |         | 22,140    |          
|                                            | Amortization of intangibles                                                                |                                                     |         | 6,543   |           |   |         | 7,302   |           |   |         | 9,175     |          
|                                            | Merger and integration                                                                     |                                                     |         | 1,275   |           |   |         | 1,853   |           |   |         | 2,842     |          
|                                            | Loss on prepayment of FHLB advances                                                        |                                                     |         | 25,136  |           |   |         |        |           |   |         |          |          
|                                            | Other                                                                                      |                                                     |         | 122,720 |           |   |         | 112,321 |           |   |         | 123,214   |          
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|                                            |                                                                                            | Total noninterest expense                           |         |         | 868,478   |   |         |         | 797,883   |   |         |           | 752,429   | 
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|                                            |                                                                                            | Net income before income tax expense                |         |         | 555,282   |   |         |         | 518,150   |   |         |           | 477,158   | 
|Income tax expense                          |                                                                                            |                                                     | 185,498 |         |           |   | 176,282 |         |           |   | 162,759 |          
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|                                            |                                                                                            | Net income                                          |         | $       | 369,784   |   |         | $       | 341,868   |   |         | $         | 314,399   | 
|                                            |                                                                                            |                                                     |         |         |           |   |         |         |          
|Basic earnings per share                    |                                                                                            | $                                                   | 3.02    |         |           | $ | 2.74    |         |           | $ | 2.46    |          
|Basic weighted average shares outstanding   |                                                                                            |                                                     | 122,254 |         |           |   | 124,656 |         |           |   | 127,575 |          
|Diluted earnings per share                  |                                                                                            | $                                                   | 2.95    |         |           | $ | 2.69    |         |           | $ | 2.42    |          
|Diluted weighted average shares outstanding |                                                                                            |                                                     | 125,416 |         |           |   | 127,186 |         |           |   | 129,850 |          



-45-



---



##### 



Compass Bancshares, Inc. and Subsidiaries





Consolidated Statements of Shareholders Equity


Years Ended December 31, 2004, 2003 and 2002


|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |        |   |   |           |          |   |  |   |         |  
|-------------------------- | ----------------------------------------------------------------------------------------- | -------------- | ------- | ----- | -------- | - | -------- | -------- | - | ------------- | -------- | ------ | ------ | ------ | --------- | -------- | ----- | ------------- | ------- | ------- | ------ | - | ------- | ------ | - | - | --------- | -------- | - |  | - | ------- | -
|                           |                                                                                           |                |         |       |          |   |          |          |   | Accumulated   |          |        |        |        |           |          |      
|                           |                                                                                           |                |         |       |          |   |          |          |   | Other         |          |        |        |        |           |          |      
|                           |                                                                                           |                |         |       |          |   |          |          |   | Comprehensive |          |        |        |        | Total     |          |       | Comprehensive |        
|                           |                                                                                           | Common         |         |       | Treasury |   |          |          |   | Retained      |          |        | Income |        |           |          |       | Shareholders |         |         | Income |  
|                           |                                                                                           | Stock          |         |       | Stock    |   |          | Surplus  |   |               | Earnings |        |        | (Loss) |           |          | Other |               |         | Equity  |        |   | (Loss)  |       
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           |                                                                                           | (In Thousands) |        
|Balance, December 31, 2001 |                                                                                           | $              | 257,520 |       |          | $ | (50,146  | )        |   | $             | 160,441  |        |        | $      | 1,283,601 |          |       | $             | 69,938  |         |        | $ | (5,713  | )      |   | $ | 1,715,641 |          |   |  |   |        
|                           | Net income  2002                                                                         |                |         |      |          |   |          |         |   |               |          |       |        |        |           | 314,399  |       |               |         |        |        |   |         |       |   |   |           | 314,399  |   |  | $ | 314,399 |  
|                           | Net change in unrealized gains on securities available for sale,
    net of tax           |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | 72,515  |        |   |         |       |   |   |           | 72,515   |   |  |   | 72,515  |  
|                           | Net change in accumulated gains on cash-flow hedging
    instruments, net of tax          |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | (6,344  | )      |   |         |       |   |   |           | (6,344   | ) |  |   | (6,344  | )
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | Comprehensive income                                                                      |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |        |   |   |           |          |   |  | $ | 380,570 |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | Common dividends declared ($1.00 per share)                                               |                |         |      |          |   |          |         |   |               |          |       |        |        |           | (127,893 | )     |               |         |        |        |   |         |       |   |   |           | (127,893 | ) |  |   |         |  
|                           | Exercise of stock options and other issuances                                             |                |         | 3,112 |          |   |          |         |   |               |          | 32,400 |        |        |           | (1,590   | )     |               |         |        |        |   |         |       |   |   |           | 33,922   |   |  |   |         |  
|                           | Issuance of restricted stock                                                              |                |         | 192   |          |   |          |         |   |               |          | 2,572  |        |        |           |         |       |               |         |        |        |   |         | (2,764 | ) |   |           |         |   |  |   |         |  
|                           | Issuance of treasury stock for acquisitions, stock options and
    benefit plans          |                |         |      |          |   |          | 51,318   |   |               |          | 4,494  |        |        |           |         |       |               |         |        |        |   |         |       |   |   |           | 55,812   |   |  |   |         |  
|                           | Repayments on loans to finance stock purchases, net of advances                           |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         |        |        |   |         | 1,836  |   |   |           | 1,836    |   |  |   |         |  
|                           | Amortization of restricted stock                                                          |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         |        |        |   |         | 2,201  |   |   |           | 2,201    |   |  |   |         |  
|                           | Purchase of treasury stock                                                                |                |         |      |          |   |          | (130,587 | ) |               |          |       |        |        |           |         |       |               |         |        |        |   |         |       |   |   |           | (130,587 | ) |  |   |         |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|Balance, December 31, 2002 |                                                                                           |                | 260,824 |       |          |   | (129,415 | )        |   |               | 199,907  |        |        |        | 1,468,517 |          |       |               | 136,109 |         |        |   | (4,440  | )      |   |   | 1,931,502 |          |   |  |   |        
|                           | Net income  2003                                                                         |                |         |      |          |   |          |         |   |               |          |       |        |        |           | 341,868  |       |               |         |        |        |   |         |       |   |   |           | 341,868  |   |  | $ | 341,868 |  
|                           | Net change in unrealized gains on securities available for sale,
    net of tax           |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | (68,238 | )      |   |         |       |   |   |           | (68,238  | ) |  |   | (68,238 | )
|                           | Net change in accumulated gains on cash-flow hedging
    instruments, net of tax          |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | (30,565 | )      |   |         |       |   |   |           | (30,565  | ) |  |   | (30,565 | )
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | Comprehensive income                                                                      |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |        |   |   |           |          |   |  | $ | 243,065 |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | Common dividends declared ($1.12 per share)                                               |                |         |      |          |   |          |         |   |               |          |       |        |        |           | (140,450 | )     |               |         |        |        |   |         |       |   |   |           | (140,450 | ) |  |   |         |  
|                           | Exercise of stock options and other issuances                                             |                |         | 1,974 |          |   |          |         |   |               |          | 22,077 |        |        |           | (937     | )     |               |         |        |        |   |         |       |   |   |           | 23,114   |   |  |   |         |  
|                           | Issuance of restricted stock                                                              |                |         | 340   |          |   |          |         |   |               |          | 6,206  |        |        |           |         |       |               |         |        |        |   |         | (6,546 | ) |   |           |         |   |  |   |         |  
|                           | Issuance of treasury stock for acquisitions, stock options and
    benefit plans          |                |         |      |          |   |          | 24,973   |   |               |          | (786   | )      |        |           |         |       |               |         |        |        |   |         |       |   |   |           | 24,187   |   |  |   |         |  
|                           | Repayments on loans to finance stock purchases, net of advances                           |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         |        |        |   |         | 754    |   |   |           | 754      |   |  |   |         |  
|                           | Amortization of restricted stock                                                          |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         |        |        |   |         | 2,938  |   |   |           | 2,938    |   |  |   |         |  
|                           | Purchase of treasury stock                                                                |                |         |      |          |   |          | (213,227 | ) |               |          |       |        |        |           |         |       |               |         |        |        |   |         |       |   |   |           | (213,227 | ) |  |   |         |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|Balance, December 31, 2003 |                                                                                           |                | 263,138 |       |          |   | (317,669 | )        |   |               | 227,404  |        |        |        | 1,668,998 |          |       |               | 37,306  |         |        |   | (7,294  | )      |   |   | 1,871,883 |          |   |  |   |        
|                           | Net income  2004                                                                         |                |         |      |          |   |          |         |   |               |          |       |        |        |           | 369,784  |       |               |         |        |        |   |         |       |   |   |           | 369,784  |   |  | $ | 369,784 |  
|                           | Net change in unrealized gains (losses) on securities
    available for sale, net of tax  |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | (49,422 | )      |   |         |       |   |   |           | (49,422  | ) |  |   | (49,422 | )
|                           | Net change in accumulated gains (losses) on cash-flow hedging
    instruments, net of tax |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | (9,095  | )      |   |         |       |   |   |           | (9,095   | ) |  |   | (9,095  | )
|                           | Net change in additional minimum pension liability, net of
    tax                        |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | (2,165  | )      |   |         |       |   |   |           | (2,165   | ) |  |   | (2,165  | )
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | Comprehensive income                                                                      |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |        |   |   |           |          |   |  | $ | 309,102 |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | Common dividends declared ($1.25 per share)                                               |                |         |      |          |   |          |         |   |               |          |       |        |        |           | (153,970 | )     |               |         |        |        |   |         |       |   |   |           | (153,970 | ) |  |   |         |  
|                           | Exercise of stock options and other issuances, net of shares
    surrendered              |                |         | 2,362 |          |   |          |         |   |               |          | 28,481 |        |        |           | (1,358   | )     |               |         |        |        |   |         |       |   |   |           | 29,485   |   |  |   |         |  
|                           | Issuance of restricted stock, net of cancellations                                        |                |         | 306   |          |   |          |         |   |               |          | 8,265  |        |        |           |         |       |               |         |        |        |   |         | (8,571 | ) |   |           |         |   |  |   |         |  
|                           | Issuance of treasury stock for acquisitions, stock options
    and benefit plans          |                |         |      |          |   |          | 18,147   |   |               |          | 250    |        |        |           |         |       |               |         |        |        |   |         |       |   |   |           | 18,397   |   |  |   |         |  
|                           | Advances on loans to finance stock purchases, net of
    repayments                       |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         |        |        |   |         | (247   | ) |   |           | (247     | ) |  |   |         |  
|                           | Amortization of restricted stock                                                          |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         |        |        |   |         | 4,432  |   |   |           | 4,432    |   |  |   |         |  
|                           | Purchase of treasury stock                                                                |                |         |      |          |   |          | (33,829  | ) |               |          |       |        |        |           |         |       |               |         |        |        |   |         |       |   |   |           | (33,829  | ) |  |   |         |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|Balance, December 31, 2004 |                                                                                           | $              | 265,806 |       |          | $ | (333,351 | )        |   | $             | 264,400  |        |        | $      | 1,883,454 |          |       | $             | (23,376 | )       |        | $ | (11,680 | )      |   | $ | 2,045,253 |          |   |  |   |        
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       



-46-



---



##### 



Compass Bancshares, Inc. and Subsidiaries





Consolidated Statements of Cash Flows


|                                                   |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |         |            |         |            |         |          |  
|-------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------- | ----------------------------------------- | ---------- | ------- | ---------- | ------- | ---------- | ------- | ---------- | ------- | ---------- | ------- | -------- | -
|                                                   |                                                                                                                                            | Year Ended December 31                                                  |                                          
|                                                   |                                                                                                                                            |                                                                         |                                          
|                                                   |                                                                                                                                            | 2004                                                                    |                                           |            | 2003    |            |         | 2002       |        
|                                                   |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |        
|                                                   |                                                                                                                                            | (In Thousands)                                                          |                                          
|Operating Activities:                              |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |         |            |         |           
|                                                   | Net income                                                                                                                                 |                                                                         | $                                         | 369,784    |         |            | $       | 341,868    |         |            | $       | 314,399    |        
|                                                   | Adjustments to reconcile net income to cash provided by
    operations:                                                                    |                                                                         |                                           |            |         |            |         |            |         |            |         |            |        
|                                                   |                                                                                                                                            | Depreciation and amortization                                           |                                           |            | 106,243 |            |         |            | 114,562 |            |         |            | 116,687 |         
|                                                   |                                                                                                                                            | Accretion of discount and loan fees                                     |                                           |            | (15,948 | )          |         |            | (17,033 | )          |         |            | (29,137 | )       
|                                                   |                                                                                                                                            | Provision for loan losses                                               |                                           |            | 105,658 |            |         |            | 119,681 |            |         |            | 136,331 |         
|                                                   |                                                                                                                                            | Net change in trading account assets                                    |                                           |            | (1,132  | )          |         |            | 4,566   |            |         |            | (1,379  | )       
|                                                   |                                                                                                                                            | Deferred tax expense (benefit)                                          |                                           |            | 3,608   |            |         |            | (880    | )          |         |            | 13,266  |         
|                                                   |                                                                                                                                            | Net (gain) loss on sale of investment securities available
    for sale |                                           |            | (27,336 | )          |         |            | 43      |            |         |            | (4,233  | )       
|                                                   |                                                                                                                                            | Loss on prepayment of FHLB advances                                     |                                           |            | 25,136  |            |         |            |        |            |         |            |        |         
|                                                   |                                                                                                                                            | Gain on sale of branches                                                |                                           |            |        |            |         |            | (2,128  | )          |         |            |        |         
|                                                   |                                                                                                                                            | (Increase) decrease in other assets                                     |                                           |            | (82,613 | )          |         |            | (86,032 | )          |         |            | 33,796  |         
|                                                   |                                                                                                                                            | Increase (decrease) in other liabilities                                |                                           |            | 30,629  |            |         |            | (65,852 | )          |         |            | (42,249 | )       
|                                                   |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |        
|                                                   |                                                                                                                                            |                                                                         | Net cash provided by operating activities |            |         | 514,029    |         |            |         | 408,795    |         |            |         | 537,481  |  
|Investing Activities:                              |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |         |            |         |           
|                                                   | Proceeds from maturities/calls of investment securities held to
    maturity                                                               |                                                                         |                                           | 736,367    |         |            |         | 706,752    |         |            |         | 427,860    |        
|                                                   | Purchases of investment securities held to maturity                                                                                        |                                                                         |                                           |           |         |            |         |           |         |            |         | (201,400   | )      
|                                                   | Proceeds from sales of investment securities available for sale                                                                            |                                                                         |                                           | 814,036    |         |            |         | 268,263    |         |            |         | 582,274    |        
|                                                   | Proceeds from maturities/calls of investment securities
    available for sale                                                             |                                                                         |                                           | 846,600    |         |            |         | 2,229,999  |         |            |         | 2,072,280  |        
|                                                   | Purchases of investment securities available for sale                                                                                      |                                                                         |                                           | (1,731,966 | )       |            |         | (4,237,230 | )       |            |         | (798,003   | )      
|                                                   | Net (increase) decrease in federal funds sold and securities
    purchased under agreements to resell                                      |                                                                         |                                           | 31,217     |         |            |         | (53,343    | )       |            |         | (5,621     | )      
|                                                   | Net increase in loan portfolio                                                                                                             |                                                                         |                                           | (2,188,966 | )       |            |         | (2,197,523 | )       |            |         | (2,863,844 | )      
|                                                   | Net cash received (paid) in acquisitions/dispositions                                                                                      |                                                                         |                                           | 268        |         |            |         | (24,382    | )       |            |         | (5,292     | )      
|                                                   | Purchases of premises and equipment, net                                                                                                   |                                                                         |                                           | (69,265    | )       |            |         | (87,849    | )       |            |         | (83,587    | )      
|                                                   | Proceeds from sales of other real estate owned                                                                                             |                                                                         |                                           | 30,845     |         |            |         | 23,455     |         |            |         | 17,716     |        
|                                                   |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |        
|                                                   |                                                                                                                                            |                                                                         | Net cash used by investing activities     |            |         | (1,530,864 | )       |            |         | (3,371,858 | )       |            |         | (857,617 | )
|Financing Activities:                              |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |         |            |         |           
|                                                   | Net increase in demand deposits, NOW accounts and savings
    accounts                                                                     |                                                                         |                                           | 725,615    |         |            |         | 1,191,274  |         |            |         | 771,239    |        
|                                                   | Net increase (decrease) in time deposits                                                                                                   |                                                                         |                                           | 628,959    |         |            |         | (562,019   | )       |            |         | 620,799    |        
|                                                   | Net increase (decrease) in federal funds purchased and
    securities sold under agreements to repurchase                                  |                                                                         |                                           | 413,380    |         |            |         | 2,775,424  |         |            |         | (1,579,602 | )      
|                                                   | Net decrease in other short-term borrowings                                                                                                |                                                                         |                                           | (87,766    | )       |            |         | (36,856    | )       |            |         | (260,368   | )      
|                                                   | Proceeds from FHLB advances and other borrowings                                                                                           |                                                                         |                                           | 1,125,100  |         |            |         | 1,300,000  |         |            |         | 800,000    |        
|                                                   | Repayment of FHLB advances and other borrowings                                                                                            |                                                                         |                                           | (1,793,140 | )       |            |         | (1,380,539 | )       |            |         | (100,427   | )      
|                                                   | Issuance (redemption) of guaranteed preferred beneficial
    interests in Companys junior subordinated deferrable
    interest debentures |                                                                         |                                           | (23,000    | )       |            |         | (12,000    | )       |            |         | 300,000    |        
|                                                   | Common dividends paid                                                                                                                      |                                                                         |                                           | (118,533   | )       |            |         | (139,376   | )       |            |         | (128,183   | )      
|                                                   | Purchase of treasury stock                                                                                                                 |                                                                         |                                           | (33,829    | )       |            |         | (213,227   | )       |            |         | (130,587   | )      
|                                                   | Issuance of treasury stock for benefit plans and stock options                                                                             |                                                                         |                                           | 9,998      |         |            |         | 8,466      |         |            |         | 10,056     |        
|                                                   | Repayment of loans to finance stock purchases                                                                                              |                                                                         |                                           | 616        |         |            |         | 1,126      |         |            |         | 5,404      |        
|                                                   | Proceeds from exercise of stock options                                                                                                    |                                                                         |                                           | 28,622     |         |            |         | 22,742     |         |            |         | 30,354     |        
|                                                   |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |        
|                                                   |                                                                                                                                            |                                                                         | Net cash provided by financing activities |            |         | 876,022    |         |            |         | 2,955,015  |         |            |         | 338,685  |  
|                                                   |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |        
|Net increase (decrease) in cash and due from banks |                                                                                                                                            |                                                                         | (140,813                                  | )          |         |            | (8,048  | )          |         |            | 18,549  |           
|Cash and due from banks at beginning of the year   |                                                                                                                                            |                                                                         | 726,492                                   |            |         |            | 734,540 |            |         |            | 715,991 |           
|                                                   |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |        
|Cash and due from banks at end of the year         |                                                                                                                                            | $                                                                       | 585,679                                   |            |         | $          | 726,492 |            |         | $          | 734,540 |           
|                                                   |                                                                                                                                            |                                                                         |                                           |            |         |            |         |            |        



-47-



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##### 



Compass Bancshares, Inc. and Subsidiaries





Notes to Consolidated Financial Statements


December 31, 2004, 2003 and 2002




|    |                                                                        
|--- | -----------------------------------------------------------------------
|(1) | Nature of Operations and Summary of Significant Accounting
    Policies







| |                      
| | ---------------------
| | Basis of Presentation





| |                     
| | --------------------
| | Nature of Operations





| |                 
| | ----------------
| | Use of Estimates





| |           
| | ----------
| | Securities





-48-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002








| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | Securities Purchased Under Agreements to Resell and
    Securities Sold Under Agreements to Repurchase





| |      
| | -----
| | Loans









| |                          
| | -------------------------
| | Allowance for Loan Losses



-49-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002








| |                                
| | -------------------------------
| | Merger and Integration Expenses





| |            
| | -----------
| | Intangibles





| |                        
| | -----------------------
| | Other Real Estate Owned





| |                       
| | ----------------------
| | Premises and Equipment





| |             
| | ------------
| | Income Taxes





| |                                                  
| | -------------------------------------------------
| | Accounting for Derivatives and Hedging Activities



-50-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002












| |                                        
| | ---------------------------------------
| | Securitization and Sales of Receivables



-51-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002






| |                  
| | -----------------
| | Reclassifications





| |                   
| | ------------------
| | Earnings per Share





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

Accounting for Stock Issued to Employees,








-52-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002






|                            |                                                                                                                                     |                        |   |         |      |  |   |         |   |  |   |         |  
|--------------------------- | ----------------------------------------------------------------------------------------------------------------------------------- | ---------------------- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                            |                                                                                                                                     | Year Ended December 31 |  
|                            |                                                                                                                                     |                        |  
|                            |                                                                                                                                     | 2004                   |   |         | 2003 |  |   | 2002    |  
|                            |                                                                                                                                     |                        |   |         |      |  |   |         |  
|Net income:                 |                                                                                                                                     |                        |   |         |      |  |   |         |   |  |   |        
|                            | As reported                                                                                                                         |                        | $ | 369,784 |      |  | $ | 341,868 |   |  | $ | 314,399 |  
|                            | Deduct: Total stock-based employee compensation expense
    determined under fair value based method for all awards, net of
    tax |                        |   | (9,402  | )    |  |   | (10,791 | ) |  |   | (14,488 | )
|                            |                                                                                                                                     |                        |   |         |      |  |   |         |  
|                            | Pro forma net income                                                                                                                |                        | $ | 360,382 |      |  | $ | 331,077 |   |  | $ | 299,911 |  
|                            |                                                                                                                                     |                        |   |         |      |  |   |         |  
|Basic earnings per share:   |                                                                                                                                     |                        |   |         |      |  |   |         |   |  |   |        
|                            | As reported                                                                                                                         |                        | $ | 3.02    |      |  | $ | 2.74    |   |  | $ | 2.46    |  
|                            | Pro forma                                                                                                                           |                        |   | 2.95    |      |  |   | 2.66    |   |  |   | 2.35    |  
|Diluted earnings per share: |                                                                                                                                     |                        |   |         |      |  |   |         |   |  |   |        
|                            | As reported                                                                                                                         |                        | $ | 2.95    |      |  | $ | 2.69    |   |  | $ | 2.42    |  
|                            | Pro forma                                                                                                                           |                        |   | 2.87    |      |  |   | 2.60    |   |  |   | 2.31    |  

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,




-53-



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##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002








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

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




| |                                                             
| | ------------------------------------------------------------
| | Application of Accounting Principles to
    Loan Commitments

Application of Accounting
Principles to Loan Commitments.




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

Share-Based Payments.


-54-



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##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002


(2)     Investment Securities Held
to Maturity and Investment Securities Available for Sale




|                                        |                                           |                |   |           |           |  |   |           |           |  |       |           |           |  |   |           |           | 
|--------------------------------------- | ----------------------------------------- | -------------- | - | --------- | --------- |  | - | --------- | --------- |  | ----- | --------- | --------- |  | - | --------- | --------- | 
|                                        |                                           | 2004           |   |           | 2003      | 
|                                        |                                           |                |   |           |           | 
|                                        |                                           | Carrying       |   |           | Fair      |  |   | Carrying  |           |  | Fair  |          
|                                        |                                           | Amount         |   |           | Value     |  |   | Amount    |           |  | Value |          
|                                        |                                           |                |   |           |           |  |   |           |           |  |       |          
|                                        |                                           | (In Thousands) |  
|Investment securities held to maturity: |                                           |                |   |           |           |  |   |           |           |  |       |           |           |  |   |          
|                                        | U.S. Government agencies and corporations |                | $ | 60,860    |           |  | $ | 61,387    |           |  | $     | 72,696    |           |  | $ | 72,548    |          
|                                        | Mortgage-backed pass-through securities   |                |   | 1,125,080 |           |  |   | 1,133,696 |           |  |       | 1,362,745 |           |  |   | 1,377,698 |          
|                                        | Collateralized mortgage obligations       |                |   | 1,167,287 |           |  |   | 1,163,914 |           |  |       | 883,625   |           |  |   | 880,464   |          
|                                        | Asset-backed securities                   |                |   | 320,058   |           |  |   | 312,864   |           |  |       | 510,892   |           |  |   | 508,985   |          
|                                        | States and political subdivisions         |                |   | 93,714    |           |  |   | 96,373    |           |  |       | 105,886   |           |  |   | 108,828   |          
|                                        | Other                                     |                |   | 100       |           |  |   | 100       |           |  |       | 500       |           |  |   | 500       |          
|                                        |                                           |                |   |           |           |  |   |           |           |  |       |          
|                                        |                                           | Total          |   | $         | 2,767,099 |  |   | $         | 2,768,334 |  |       | $         | 2,936,344 |  |   | $         | 2,949,023 | 
|                                        |                                           |                |   |           |           |  |   |           |           |  |       |          

|                                          |                   |                                                                       |       |         |           |           |  |         |           |           |           |         |           |           |  |         |           |           | 
|----------------------------------------- | ----------------- | --------------------------------------------------------------------- | ----- | ------- | --------- | --------- |  | ------- | --------- | --------- | --------- | ------- | --------- | --------- |  | ------- | --------- | --------- | 
|                                          |                   | 2004                                                                  |       |         | 2003      |          
|                                          |                   |                                                                       |       |         |           |          
|                                          |                   | Fair                                                                  |       |         | Amortized |           |  | Fair    |           |           | Amortized |        
|                                          |                   | Value                                                                 |       |         | Cost      |           |  | Value   |           |           | Cost      |        
|                                          |                   |                                                                       |       |         |           |           |  |         |           |           |           |        
|                                          |                   | (In Thousands)                                                        |      
|Investment securities available for sale: |                   |                                                                       |       |         |           |           |  |         |           |           |           |         |           |           |  |        
|                                          | Debt securities:  |                                                                       |       |         |           |           |  |         |           |           |           |         |           |           |  |         |          
|                                          |                   | U.S. Treasury and other U.S. Government agencies and
    corporations |       | $       | 39,828    |           |  | $       | 39,552    |           |           | $       | 42,746    |           |  | $       | 41,442    |          
|                                          |                   | Mortgage-backed pass-through securities                               |       |         | 501,978   |           |  |         | 499,525   |           |           |         | 830,699   |           |  |         | 796,688   |          
|                                          |                   | Collateralized mortgage obligations                                   |       |         | 3,512,515 |           |  |         | 3,533,176 |           |           |         | 3,086,743 |           |  |         | 3,067,083 |          
|                                          |                   | Asset-backed securities and corporate bonds                           |       |         | 1,059     |           |  |         | 1,039     |           |           |         | 3,716     |           |  |         | 3,638     |          
|                                          |                   | States and political subdivisions                                     |       |         | 12,118    |           |  |         | 11,943    |           |           |         | 11,329    |           |  |         | 11,007    |          
|                                          |                   | Other                                                                 |       |         | 125,040   |           |  |         | 119,746   |           |           |         | 173,642   |           |  |         | 172,978   |          
|                                          | Equity securities |                                                                       |       | 205,646 |           |           |  | 205,633 |           |           |           | 226,333 |           |           |  | 226,314 |          
|                                          |                   |                                                                       |       |         |           |           |  |         |           |           |           |        
|                                          |                   |                                                                       | Total |         | $         | 4,398,184 |  |         | $         | 4,410,614 |           |         | $         | 4,375,208 |  |         | $         | 4,319,150 | 
|                                          |                   |                                                                       |       |         |           |           |  |         |           |           |           |        

-55-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|                                          |                                           |                                                                       |       |        |            |        |   |            |        |        |            |        |        |        |   |       |        |        | 
|----------------------------------------- | ----------------------------------------- | --------------------------------------------------------------------- | ----- | ------ | ---------- | ------ | - | ---------- | ------ | ------ | ---------- | ------ | ------ | ------ | - | ----- | ------ | ------ | 
|                                          |                                           | 2004                                                                  |       |        | 2003       |       
|                                          |                                           |                                                                       |       |        |            |       
|                                          |                                           | Unrealized                                                            |       |        | Unrealized |        |   | Unrealized |        |        | Unrealized |       
|                                          |                                           | Gains                                                                 |       |        | Losses     |        |   | Gains      |        |        | Losses     |       
|                                          |                                           |                                                                       |       |        |            |        |   |            |        |        |            |       
|                                          |                                           | (In Thousands)                                                        |      
|Investment securities held to maturity:   |                                           |                                                                       |       |        |            |        |   |            |        |        |            |        |        |        |   |      
|                                          | U.S. Government agencies and corporations |                                                                       | $     | 546    |            |        | $ | 19         |        |        | $          | 96     |        |        | $ | 244   |       
|                                          | Mortgage-backed pass-through securities   |                                                                       |       | 11,457 |            |        |   | 2,841      |        |        |            | 18,560 |        |        |   | 3,607 |       
|                                          | Collateralized mortgage obligations       |                                                                       |       | 6,698  |            |        |   | 10,071     |        |        |            | 3,227  |        |        |   | 6,388 |       
|                                          | Asset-backed securities                   |                                                                       |       |       |            |        |   | 7,194      |        |        |            |       |        |        |   | 1,907 |       
|                                          | States and political subdivisions         |                                                                       |       | 2,659  |            |        |   |           |        |        |            | 2,942  |        |        |   |      |       
|                                          | Other                                     |                                                                       |       |       |            |        |   |           |        |        |            |       |        |        |   |      |       
|                                          |                                           |                                                                       |       |        |            |        |   |            |        |        |            |       
|                                          |                                           | Total                                                                 |       | $      | 21,360     |        |   | $          | 20,125 |        |            | $      | 24,825 |        |   | $     | 12,146 |       
|                                          |                                           |                                                                       |       |        |            |        |   |            |        |        |            |       
|Investment securities available for sale: |                                           |                                                                       |       |        |            |        |   |            |        |        |            |        |        |        |   |      
|                                          | Debt securities:                          |                                                                       |       |        |            |        |   |            |        |        |            |        |        |        |   |       |       
|                                          |                                           | U.S. Treasury and other U.S. Government agencies and
    corporations |       | $      | 277        |        |   | $          | 1      |        |            | $      | 1,314  |        |   | $     | 10     |       
|                                          |                                           | Mortgage-backed pass-through securities                               |       |        | 6,373      |        |   |            | 3,920  |        |            |        | 35,038 |        |   |       | 1,027  |       
|                                          |                                           | Collateralized mortgage obligations                                   |       |        | 3,586      |        |   |            | 24,247 |        |            |        | 29,345 |        |   |       | 9,685  |       
|                                          |                                           | Asset-backed securities and corporate bonds                           |       |        | 20         |        |   |            |       |        |            |        | 78     |        |   |       |       |       
|                                          |                                           | States and political subdivisions                                     |       |        | 203        |        |   |            | 28     |        |            |        | 392    |        |   |       | 70     |       
|                                          |                                           | Other                                                                 |       |        | 5,294      |        |   |            |       |        |            |        | 664    |        |   |       |       |       
|                                          | Equity securities                         |                                                                       |       | 13     |            |        |   |           |        |        |            | 19     |        |        |   |      |       
|                                          |                                           |                                                                       |       |        |            |        |   |            |        |        |            |       
|                                          |                                           |                                                                       | Total |        | $          | 15,766 |   |            | $      | 28,196 |            |        | $      | 66,850 |   |       | $      | 10,792 | 
|                                          |                                           |                                                                       |       |        |            |        |   |            |        |        |            |       

-56-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |         |         |  |   |            |       |  |   |           |           |  |   |        |        | 
|----------------------------------------- | ----------------- | --------------------------------------------------------------------- | ----- | - | ----------------------------- | --------- |  | ----- | ------ | ------ | ---------- | - | ------- | ------- |  | - | ---------- | ----- |  | - | --------- | --------- |  | - | ------ | ------ | 
|                                          |                   | Securities in a Loss                                                  |       |   |                               |           |  |       |       
|                                          |                   | Position for Less than 12                                             |       |   | Securities in a Loss Position |           |  |      
|                                          |                   | 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 |       | $ |                              |           |  | $     |       |        |            | $ | 439     |         |  | $ | 1          |       |  | $ | 439       |           |  | $ | 1      |       
|                                          |                   | Mortgage-backed pass-through securities                               |       |   | 327,904                       |           |  |       | 3,163  |        |            |   | 45,240  |         |  |   | 757        |       |  |   | 373,144   |           |  |   | 3,920  |       
|                                          |                   | Collateralized mortgage obligations                                   |       |   | 2,439,241                     |           |  |       | 18,892 |        |            |   | 410,809 |         |  |   | 5,355      |       |  |   | 2,850,050 |           |  |   | 24,247 |       
|                                          |                   | Asset-backed securities and corporate bonds                           |       |   |                              |           |  |       |       |        |            |   |        |         |  |   |           |       |  |   |          |           |  |   |       |       
|                                          |                   | States and political subdivisions                                     |       |   | 862                           |           |  |       | 28     |        |            |   |        |         |  |   |           |       |  |   | 862       |           |  |   | 28     |       
|                                          |                   | Other                                                                 |       |   |                              |           |  |       |       |        |            |   |        |         |  |   |           |       |  |   |          |           |  |   |       |       
|                                          | Equity securities |                                                                       |       |  |                               |           |  |      |        |        |            |  |         |         |  |  |            |       |  |  |           |           |  |  |       
|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |         |         |  |   |            |      
|                                          |                   |                                                                       | Total |   | $                             | 2,768,007 |  |       | $      | 22,083 |            |   | $       | 456,488 |  |   | $          | 6,113 |  |   | $         | 3,224,495 |  |   | $      | 28,196 | 
|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |         |         |  |   |            |      





|                                        |                                                                        |                |         |           |           |  |         |           |           | 
|--------------------------------------- | ---------------------------------------------------------------------- | -------------- | ------- | --------- | --------- |  | ------- | --------- | --------- | 
|                                        |                                                                        | 2004           |        
|                                        |                                                                        |                |        
|                                        |                                                                        | Carrying       |         |           | Fair      | 
|                                        |                                                                        | Amount         |         |           | Value     | 
|                                        |                                                                        |                |         |           |           | 
|                                        |                                                                        | (In Thousands) |        
|Investment securities held to maturity: |                                                                        |                |         |           |           |  |         |          
|                                        | Maturing within one year                                               |                | $       | 7,502     |           |  | $       | 7,580     |          
|                                        | Maturing after one but within five years                               |                |         | 404,028   |           |  |         | 398,335   |          
|                                        | Maturing after five but within ten years                               |                |         | 10,597    |           |  |         | 10,931    |          
|                                        | Maturing after ten years                                               |                |         | 52,605    |           |  |         | 53,878    |          
|                                        |                                                                        |                |         |           |           | 
|                                        |                                                                        |                | 474,732 |           |           |  | 470,724 |          
|                                        | Mortgage-backed securities and collateralized mortgage
    obligations |                |         | 2,292,367 |           |  |         | 2,297,610 |          
|                                        |                                                                        |                |         |           |           | 
|                                        |                                                                        | Total          |         | $         | 2,767,099 |  |         | $         | 2,768,334 | 
|                                        |                                                                        |                |         |           |           | 

-57-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002


|                                          |                                                                        |                |         |           |           |  |         |           |           | 
|----------------------------------------- | ---------------------------------------------------------------------- | -------------- | ------- | --------- | --------- |  | ------- | --------- | --------- | 
|                                          |                                                                        | Fair           |         |           | Amortized | 
|                                          |                                                                        | Value          |         |           | Cost      | 
|                                          |                                                                        |                |         |           |           | 
|                                          |                                                                        | (In Thousands) |        
|Investment securities available for sale: |                                                                        |                |         |           |           |  |         |          
|                                          | Maturing within one year                                               |                | $       | 261,897   |           |  | $       | 261,865   |          
|                                          | Maturing after one but within five years                               |                |         | 82,842    |           |  |         | 80,246    |          
|                                          | Maturing after five but within ten years                               |                |         | 150       |           |  |         | 148       |          
|                                          | Maturing after ten years                                               |                |         | 38,802    |           |  |         | 35,654    |          
|                                          |                                                                        |                |         |           |           | 
|                                          |                                                                        |                | 383,691 |           |           |  | 377,913 |          
|                                          | Mortgage-backed securities and collateralized mortgage
    obligations |                |         | 4,014,493 |           |  |         | 4,032,701 |          
|                                          |                                                                        |                |         |           |           | 
|                                          |                                                                        | Total          |         | $         | 4,398,184 |  |         | $         | 4,410,614 | 
|                                          |                                                                        |                |         |           |           | 





|    |                                    
|--- | -----------------------------------
|(3) | Loans and Allowance for Loan Losses



|                  |                                        |                        |       |           |            |            |   |           |           |            | 
|----------------- | -------------------------------------- | ---------------------- | ----- | --------- | ---------- | ---------- | - | --------- | --------- | ---------- | 
|                  |                                        | 2004                   |       |           | 2003       |           
|                  |                                        |                        |       |           |            |           
|                  |                                        | (In Thousands)         |      
|Commercial loans: |                                        |                        |       |           |            |            |   |          
|                  | Commercial, financial and agricultural |                        | $     | 3,750,063 |            |            | $ | 3,576,115 |          
|                  | Real estate  construction             |                        |       | 3,027,228 |            |            |   | 2,481,281 |          
|                  | Commercial real estate  mortgage      |                        |       | 3,943,163 |            |            |   | 3,933,773 |          
|                  |                                        |                        |       |           |            |           
|                  |                                        | Total commercial loans |       |           | 10,720,454 |            |   |           | 9,991,169 |           
|Consumer loans:   |                                        |                        |       |           |            |            |   |          
|                  | Residential real estate  mortgage     |                        |       | 1,566,370 |            |            |   | 1,653,805 |          
|                  | Equity lines of credit                 |                        |       | 1,401,604 |            |            |   | 1,122,725 |          
|                  | Equity loans                           |                        |       | 1,069,614 |            |            |   | 1,046,881 |          
|                  | Credit card                            |                        |       | 505,090   |            |            |   | 485,487   |          
|                  | Consumer installment  direct          |                        |       | 484,657   |            |            |   | 435,326   |          
|                  | Consumer installment  indirect        |                        |       | 3,109,133 |            |            |   | 2,630,409 |          
|                  |                                        |                        |       |           |            |           
|                  |                                        | Total consumer loans   |       |           | 8,136,468  |            |   |           | 7,374,633 |           
|                  |                                        |                        |       |           |            |           
|                  |                                        |                        | Total |           | $          | 18,856,922 |   |           | $         | 17,365,802 | 
|                  |                                        |                        |       |           |            |           



-58-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|                                     |                 |                |          |         |      |   |          |          |   |   |          |         |  
|------------------------------------ | --------------- | -------------- | -------- | ------- | ---- | - | -------- | -------- | - | - | -------- | ------- | -
|                                     |                 | 2004           |          |         | 2003 |   |          | 2002     |  
|                                     |                 |                |          |         |      |   |          |          |  
|                                     |                 | (In Thousands) |         
|Balance at beginning of year         |                 | $              | 244,882  |         |      | $ | 232,830  |          |   | $ | 191,393  |        
|Provision charged to income          |                 |                | 105,658  |         |      |   | 119,681  |          |   |   | 136,331  |        
|Allowance for loans sold/securitized |                 |                | (591     | )       |      |   | (3,362   | )        |   |   |         |        
|Loans charged off                    |                 |                | (117,597 | )       |      |   | (123,727 | )        |   |   | (109,387 | )      
|Loan recoveries                      |                 |                | 25,987   |         |      |   | 19,460   |          |   |   | 14,493   |        
|                                     |                 |                |          |         |      |   |          |          |  
|                                     | Net charge offs |                |          | (91,610 | )    |   |          | (104,267 | ) |   |          | (94,894 | )
|                                     |                 |                |          |         |      |   |          |          |  
|Balance at end of year               |                 | $              | 258,339  |         |      | $ | 244,882  |          |   | $ | 232,830  |        
|                                     |                 |                |          |         |      |   |          |          |  





|                   |                            |                |        |        |      |   |        |        |  |   |        |        | 
|------------------ | -------------------------- | -------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                   |                            | December 31    |       
|                   |                            |                |       
|                   |                            | 2004           |        |        | 2003 |   |        | 2002   | 
|                   |                            |                |        |        |      |   |        |        | 
|                   |                            | (In Thousands) |       
|Nonaccrual loans   |                            | $              | 49,947 |        |      | $ | 65,870 |        |  | $ | 81,671 |       
|Renegotiated loans |                            |                | 734    |        |      |   | 218    |        |  |   | 38     |       
|                   |                            |                |        |        |      |   |        |        | 
|                   | Total nonperforming loans  |                |        | 50,681 |      |   |        | 66,088 |  |   |        | 81,709 | 
|Other real estate  |                            |                | 19,998 |        |      |   | 29,014 |        |  |   | 17,300 |       
|                   |                            |                |        |        |      |   |        |        | 
|                   | Total nonperforming assets |                | $      | 70,679 |      |   | $      | 95,102 |  |   | $      | 99,009 | 
|                   |                            |                |        |        |      |   |        |        | 



|                                                            |  |                |        |  |      |   |        |      |  |   |        | 
|----------------------------------------------------------- |  | -------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                                            |  | 2004           |        |  | 2003 |   |        | 2002 | 
|                                                            |  |                |        |  |      |   |        |      | 
|                                                            |  | (In Thousands) |       
|Principal balance                                           |  | $              | 49,947 |  |      | $ | 65,870 |      |  | $ | 81,671 | 
|Interest that would have been recorded under original terms |  |                | 4,819  |  |      |   | 6,228  |      |  |   | 7,979  | 
|Interest actually recorded                                  |  |                | 2,195  |  |      |   | 2,736  |      |  |   | 4,007  | 



|    |              
|--- | -------------
|(4) | Managed Loans



-59-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002






|                                                 |                                            |           |           |             |           |   |        |        |  
|------------------------------------------------ | ------------------------------------------ | --------- | --------- | ----------- | --------- | - | ------ | ------ | -
|                                                 |                                            |           |           | Residential |          
|                                                 |                                            | Equity    |           |             | Mortgage  |  
|                                                 |                                            | I/O Strip |           |             | I/O Strip |  
|                                                 |                                            |           |           |             |           |  
|Carrying amount/fair value of retained interests |                                            | $         | 22,802    |             |           | $ | 16,580 |       
|Weighted-average life (in years)                 |                                            |           | 1.2       |             |           |   | 2.4    |       
|Prepayment speed assumption (annual rate)        |                                            |           | 30/36 CPR | *           |           |   | 45CPR  |       
|                                                 | Impact on fair value of 10% adverse change |           | $         | (676        | )         |   | $      | (983   | )
|                                                 | Impact on fair value of 20% adverse change |           | $         | (1,317      | )         |   | $      | (1,873 | )
|Expected credit losses (annual rate)             |                                            |           | 0.68      | %           |           |   | 0.25   | %     
|                                                 | Impact on fair value of 10% adverse change |           | $         | (330        | )         |   | $      | (81    | )
|                                                 | Impact on fair value of 20% adverse change |           | $         | (659        | )         |   | $      | (163   | )
|Residual cash flows discount rate (annual)       |                                            |           | 10.0      | %           |           |   | 10.0   | %     
|                                                 | Impact on fair value of 10% adverse change |           | $         | (297        | )         |   | $      | (355   | )
|                                                 | Impact on fair value of 20% adverse change |           | $         | (588        | )         |   | $      | (700   | )






|  |                                                                                                 
|- | ------------------------------------------------------------------------------------------------
|* | Constant prepayment rate (CPR) of 30 percent for first
    liens and 36 percent for second liens







|                                   |  |      |      |   |      |  |      |      |  |  |      |   |  |      |      |   |  |  |      |  
|---------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | - |  | ---- | ---- | - |  |  | ---- | -
|                                   |  | 2004 |      |   | 2005 |  |      | 2006 |  |  | 2007 |   |  | 2008 |     
|                                   |  |      |      |   |      |  |      |      |  |  |      |   |  |      |     
|Actual and Projected Credit Losses |  |      | 0.24 | % |      |  | 0.15 | %    |  |  | 0.11 | % |  |      | 0.08 | % |  |  | 0.01 | %





| |                         
| | ------------------------
| | Term Securitization Sold



-60-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002






| |                          
| | -------------------------
| | Securitization Cash Flows



|                          |  |                        |         |  |      |   |         |      |  |   |         | 
|------------------------- |  | ---------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                          |  | Year Ended December 31 |        
|                          |  |                        |        
|                          |  | 2004                   |         |  | 2003 |   |         | 2002 | 
|                          |  |                        |         |  |      |   |         |      | 
|Proceeds from collections |  | $                      | 619,600 |  |      | $ | 779,438 |      |  | $ | 701,839 | 
|Servicing fees received   |  |                        | 4,219   |  |      |   | 2,437   |      |  |   | 4,725   | 



|                                                                               |                         |                 |            |            |                 |   |        |            |  |   |        |         | 
|------------------------------------------------------------------------------ | ----------------------- | --------------- | ---------- | ---------- | --------------- | - | ------ | ---------- |  | - | ------ | ------- | 
|                                                                               |                         |                 |            | Principal  |                 |   |       
|                                                                               |                         |                 |            | Amount of  |                 |   |       
|                                                                               |                         | Total Principal |            |            | Nonaccrual and  |   |        |           
|                                                                               |                         | Amount of       |            |            | 90 Days or More |   |        | Net Credit | 
|                                                                               |                         | Loans           |            |            | Past due Loans  |   |        | Losses     | 
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|December 31, 2004:                                                             |                         |                 |            |            |                 |   |        |            |  |   |        |        
|Loan category:                                                                 |                         |                 |            |            |                 |   |        |            |  |   |        |        
|Commercial, financial and agricultural                                         |                         | $               | 3,890,866  |            |                 | $ | 14,369 |            |  | $ | 9,314  |        
|Commercial real estate  mortgage                                              |                         |                 | 3,943,163  |            |                 |   | 15,908 |            |  |   | 4,290  |        
|Real estate  construction                                                     |                         |                 | 3,027,228  |            |                 |   | 5,073  |            |  |   | 136    |        
|Residential real estate                                                        |                         |                 | 5,482,040  |            |                 |   | 21,918 |            |  |   | 8,188  |        
|Credit card                                                                    |                         |                 | 505,090    |            |                 |   | 8,957  |            |  |   | 34,795 |        
|Consumer installment                                                           |                         |                 | 3,593,790  |            |                 |   | 8,769  |            |  |   | 37,149 |        
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|                                                                               | Total managed loans     |                 |            | 20,442,177 |                 |   | $      | 74,994     |  |   | $      | 93,872  | 
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|Loans securitized and sold to third parties                                    |                         |                 | (140,803   | )          |                 |   |        |            |  |   |        |        
|Loans securitized and classified as investment securities
    held to maturity |                         |                 | (1,444,452 | )          |                 |   |        |            |  |   |        |        
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|                                                                               | Loans held in portfolio |                 | $          | 18,856,922 |                 |   |        |            |  |   |        |         | 
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|December 31, 2003:                                                             |                         |                 |            |            |                 |   |        |            |  |   |        |        
|Loan category:                                                                 |                         |                 |            |            |                 |   |        |            |  |   |        |        
|Commercial, financial and agricultural                                         |                         | $               | 3,728,172  |            |                 | $ | 30,468 |            |  | $ | 17,793 |        
|Commercial real estate  mortgage                                              |                         |                 | 3,933,773  |            |                 |   | 19,974 |            |  |   | 2,687  |        
|Real estate  construction                                                     |                         |                 | 2,481,281  |            |                 |   | 10,594 |            |  |   | 1,818  |        
|Residential real estate                                                        |                         |                 | 5,183,788  |            |                 |   | 20,610 |            |  |   | 9,936  |        
|Credit card                                                                    |                         |                 | 485,487    |            |                 |   | 11,161 |            |  |   | 34,210 |        
|Consumer installment                                                           |                         |                 | 3,065,735  |            |                 |   | 8,662  |            |  |   | 38,633 |        
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|                                                                               | Total managed loans     |                 |            | 18,878,236 |                 |   | $      | 101,469    |  |   | $      | 105,077 | 
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|Loans securitized and sold to third parties                                    |                         |                 | (152,057   | )          |                 |   |        |            |  |   |        |        
|Loans securitized and classified as investment securities held
    to maturity |                         |                 | (1,360,377 | )          |                 |   |        |            |  |   |        |        
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|                                                                               | Loans held in portfolio |                 | $          | 17,365,802 |                 |   |        |            |  |   |        |         | 
|                                                                               |                         |                 |            |            |                 |   |        |            | 



-61-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|    |                                              
|--- | ---------------------------------------------
|(5) | Goodwill and Other Acquired Intangible Assets







|                              |                            |                                    |         |        |              |   |         |              |         |   |         |        |        | 
|----------------------------- | -------------------------- | ---------------------------------- | ------- | ------ | ------------ | - | ------- | ------------ | ------- | - | ------- | ------ | ------ | 
|                              |                            | As of December 31, 2004            |        
|                              |                            |                                    |        
|                              |                            | Gross Carrying                     |         |        | Accumulated  |   |         | Net Carrying |        
|                              |                            | Amount                             |         |        | Amortization |   |         | Value        |        
|                              |                            |                                    |         |        |              |   |         |              |        
|                              |                            | (In Thousands)                     |        
|Nonamortizing goodwill        |                            | $                                  | 356,351 |        |              | $ | (53,732 | )            |         | $ | 302,619 |       
|                              |                            |                                    |         |        |              |   |         |              |        
|Amortizing intangible assets: |                            |                                    |         |        |              |   |         |              |         |   |         |       
|                              | Core deposit intangibles   |                                    | $       | 63,890 |              |   | $       | (53,173      | )       |   | $       | 10,717 |       
|                              | Other customer intangibles |                                    |         | 39,271 |              |   |         | (10,766      | )       |   |         | 28,505 |       
|                              |                            |                                    |         |        |              |   |         |              |        
|                              |                            | Total amortizing intangible assets |         | $      | 103,161      |   |         | $            | (63,939 | ) |         | $      | 39,222 | 
|                              |                            |                                    |         |        |              |   |         |              |        





|    |         
|--- | --------
|(6) | Deposits



|           |       |   |           |           | 
|---------- | ----- | - | --------- | --------- | 
|2005       |       | $ | 2,410,131 |          
|2006       |       |   | 344,280   |          
|2007       |       |   | 665,226   |          
|2008       |       |   | 191,909   |          
|2009       |       |   | 219,985   |          
|Thereafter |       |   | 109,657   |          
|           |       |   |          
|           | Total |   | $         | 3,941,188 | 
|           |       |   |          

-62-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|    |                      
|--- | ---------------------
|(7) | Short-Term Borrowings



|                                               |       |                             |           |           |           |  |      |         |          |   |           |           |           |  |      |   |  | 
|---------------------------------------------- | ----- | --------------------------- | --------- | --------- | --------- |  | ---- | ------- | -------- | - | --------- | --------- | --------- |  | ---- | - |  | 
|                                               |       | December 31                 |          
|                                               |       |                             |          
|                                               |       | 2004                        |           |           | 2003      | 
|                                               |       |                             |           |           |           | 
|                                               |       |                             |           | Average   |           |  |      |         | Average  |  
|                                               |       |                             |           | Interest  |           |  |      |         | Interest |  
|                                               |       | Ending                      |           |           | Rate at   |  |      | Ending  |          |   | Rate at   |          
|                                               |       | Balance                     |           |           | Year-End  |  |      | Balance |          |   | Year-End  |          
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          
|                                               |       | (In Thousands)              |          
|Federal funds purchased                        |       | $                           | 4,218,045 |           |           |  | 2.17 | %       |          | $ | 3,715,593 |           |           |  | 0.89 | %
|Securities sold under agreements to repurchase |       |                             | 313,959   |           |           |  | 1.73 |         |          |   | 403,031   |           |           |  | 0.71 |  
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          
|                                               | Total |                             |           | 4,532,004 |           |  |      |         |          |   |           | 4,118,624 |           |  |      |   | 
|Short sales                                    |       |                             | 2,956     |           |           |  | 2.99 |         |          |   | 572       |           |           |  | 3.35 |  
|Commercial paper                               |       |                             | 97,498    |           |           |  | 1.25 |         |          |   | 73,512    |           |           |  | 0.50 |  
|Other short-term borrowings                    |       |                             | 75,317    |           |           |  | 1.74 |         |          |   | 189,453   |           |           |  | 0.70 |  
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          
|                                               | Total |                             |           | 175,771   |           |  |      |         |          |   |           | 263,537   |           |  |      |   | 
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          
|                                               |       | Total short-term borrowings |           | $         | 4,707,775 |  |      |         |          |   |           | $         | 4,382,161 |  |      |   |  | 
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          



-63-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|    |                                                         
|--- | --------------------------------------------------------
|(8) | Federal Home Loan Bank (FHLB) and Other
    Borrowings



|                         |                                                                 |                                              |      |                |      |   |           |           |           |   |           |           |           | 
|------------------------ | --------------------------------------------------------------- | -------------------------------------------- | ---- | -------------- | ---- | - | --------- | --------- | --------- | - | --------- | --------- | --------- | 
|                         |                                                                 |                                              |      | December 31    |     
|                         |                                                                 | Maturity                                     |      |                |      |  
|                         |                                                                 | Dates                                        |      |                | 2004 |   |           | 2003      |          
|                         |                                                                 |                                              |      |                |      |   |           |           |          
|                         |                                                                 |                                              |      | (In Thousands) |     
|FHLB Advances:           |                                                                 |                                              |      |                |      |   |           |           |           |   |           |          
|                         | LIBOR-based floating rate (weighted average rate of 3.33%)      |                                              |      | 2005-2012      |      |   | $         | 1,825,000 |           |   | $         | 1,700,000 |          
|                         | CMS-based floating rate (weighted average rate of 2.25%)        |                                              |      | 2006-2009      |      |   |           | 800,000   |           |   |           | 1,300,000 |          
|                         | Fixed rate, callable quarterly (weighted average rate of 4.19%) |                                              |      | 2004-2014      |      |   |           | 788,536   |           |   |           | 988,742   |          
|                         | Unamortized discount                                            |                                              |      |                |      |   |           | (15,368   | )         |   |           |          |          
|                         |                                                                 |                                              |      |                |      |   |           |           |          
|                         |                                                                 | Total FHLB Advances                          |      |                |      |   |           |           | 3,398,168 |   |           |           | 3,988,742 | 
|Subordinated Debentures: |                                                                 |                                              |      |                |      |   |           |           |           |   |           |          
|                         | 8.375% subordinated debentures                                  |                                              |      | 2004           |      |   |           |          |           |   |           | 50,000    |          
|                         | 8.10% subordinated debentures                                   |                                              |      | 2009           |      |   |           | 165,000   |           |   |           | 165,000   |          
|                         | 6.45% subordinated debentures                                   |                                              |      | 2009           |      |   |           | 96,700    |           |   |           | 96,700    |          
|                         | Fair value of hedged subordinated debentures                    |                                              |      |                |      |   |           | 33,444    |           |   |           | 46,043    |          
|                         | Unamortized discount                                            |                                              |      |                |      |   |           | (981      | )         |   |           | (1,226    | )        
|                         |                                                                 |                                              |      |                |      |   |           |           |          
|                         |                                                                 | Total Subordinated Debentures                |      |                |      |   |           |           | 294,163   |   |           |           | 356,517   | 
|Capital Securities:      |                                                                 |                                              |      |                |      |   |           |           |           |   |           |          
|                         | 8.23% debentures payable to Compass Trust I*                    |                                              |      | 2027           |      |   |           | 103,093   |           |   |           | 103,093   |          
|                         | 9.38% debentures payable to FW Capital I*                       |                                              |      | 2029           |      |   |           |          |           |   |           | 23,711    |          
|                         | 7.35% debentures payable to Compass Trust III*                  |                                              |      | 2032           |      |   |           | 309,279   |           |   |           | 309,279   |          
|                         | Fair value of hedged Capital Securities                         |                                              |      |                |      |   |           | 17,657    |           |   |           | 27,760    |          
|                         | Class B Preferred Stock                                         |                                              |      |                |      |   |           | 18,012    |           |   |           | 17,955    |          
|                         |                                                                 |                                              |      |                |      |   |           |           |          
|                         |                                                                 | Total Capital Securities and Preferred Stock |      |                |      |   |           |           | 448,041   |   |           |           | 481,798   | 
|8.25% mortgage payable   |                                                                 |                                              | 2008 |                |      |   | 600       |           |           |   | 757       |          
|                         |                                                                 |                                              |      |                |      |   |           |           |          
|                         |                                                                 |                                              |      |                |      | $ | 4,140,972 |           |           | $ | 4,827,814 |          
|                         |                                                                 |                                              |      |                |      |   |           |           |          






|  |                                               
|- | ----------------------------------------------
|* | Majority of amounts qualify for Tier I Capital



-64-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|          |             |                |   |           |              |  |   |            |         |  |          |         |         |  |   |     |     | 
|--------- | ----------- | -------------- | - | --------- | ------------ |  | - | ---------- | ------- |  | -------- | ------- | ------- |  | - | --- | --- | 
|          |             | FHLB           |   |           | Subordinated |  |   | Capital    |         |  | Mortgage |        
|          |             | Advances       |   |           | Debentures   |  |   | Securities |         |  | Payable  |        
|          |             |                |   |           |              |  |   |            |         |  |          |        
|          |             | (In Thousands) |  
|Maturing: |             |                |   |           |              |  |   |            |         |  |          |         |         |  |   |    
|          | 2005        |                | $ | 300,000   |              |  | $ |           |         |  | $        |        |         |  | $ | 170 |    
|          | 2006        |                |   | 600,000   |              |  |   |           |         |  |          |        |         |  |   | 186 |    
|          | 2007        |                |   | 100,000   |              |  |   |           |         |  |          |        |         |  |   | 202 |    
|          | 2008        |                |   | 710,460   |              |  |   |           |         |  |          |        |         |  |   | 42  |    
|          | 2009*       |                |   | 609,632   |              |  |   | 294,163    |         |  |          |        |         |  |   |    |    
|          | Thereafter* |                |   | 1,078,076 |              |  |   |           |         |  |          | 448,041 |         |  |   |    |    
|          |             |                |   |           |              |  |   |            |         |  |          |        
|          |             | Total          |   | $         | 3,398,168    |  |   | $          | 294,163 |  |          | $       | 448,041 |  |   | $   | 600 | 
|          |             |                |   |           |              |  |   |            |         |  |          |        






|  |                                                                                      
|- | -------------------------------------------------------------------------------------
|* | Includes the fair value of hedged subordinated debentures and
    Capital Securities.



|    |                                       
|--- | --------------------------------------
|(9) | Capital Securities and Preferred Stock



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











-65-



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##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




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







|     |                                                      
|---- | -----------------------------------------------------
|(10) | Off-Balance Sheet Activities, Derivatives and Hedging



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



|                               |                                |                |         |            |         |   |        |           |            |   |         |           |  |   |   |           | 
|------------------------------ | ------------------------------ | -------------- | ------- | ---------- | ------- | - | ------ | --------- | ---------- | - | ------- | --------- |  | - | - | --------- | 
|                               |                                | 2004           |         |            | 2003    |  
|                               |                                |                |         |            |         |  
|                               |                                |                |         | Other Than |         |   |        |           | Other Than |  
|                               |                                | Trading        |         |            | Trading |   |        | Trading   |            |   | Trading |          
|                               |                                |                |         |            |         |   |        |           |            |   |         |          
|                               |                                | (In Thousands) |        
|Forward and futures contracts  |                                | $              | 271,863 |            |         | $ | 18,708 |           |            | $ | 771,993 |           |  | $ |  |          
|Interest rate swap agreements: |                                |                |         |            |         |   |        |           |            |   |         |           |  |   |   |          
|                               | Pay fixed versus receive float |                |         | 1,384,586  |         |   |        |          |            |   |         | 1,491,175 |  |   |   |          | 
|                               | Receive fixed versus pay float |                |         | 1,402,189  |         |   |        | 1,503,836 |            |   |         | 1,514,564 |  |   |   | 1,805,200 | 
|Written options                |                                |                | 63,229  |            |         |   | 19,812 | (1)       |            |   | 32,850  |           |  |   |  |          
|Purchased options              |                                |                | 97,358  |            |         |   |       |           |            |   | 78,551  |           |  |   |  |          






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





-66-



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##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002






|                   |                               |                   |   |         |                   |  |   |          |   |  |          |           |  |  |   |        | 
|------------------ | ----------------------------- | ----------------- | - | ------- | ----------------- |  | - | -------- | - |  | -------- | --------- |  |  | - | ------ | 
|                   |                               | December 31, 2004 |   |         | December 31, 2003 | 
|                   |                               |                   |   |         |                   | 
|                   |                               | Notional          |   |         | Carrying          |  |   | Notional |   |  | Carrying |          
|                   |                               | Value             |   |         | Value             |  |   | Value    |   |  | Value    |          
|                   |                               |                   |   |         |                   |  |   |          |   |  |          |          
|                   |                               | (In Thousands)    |  
|Cash Flow Hedges:  |                               |                   |   |         |                   |  |   |          |   |  |          |           |  |  |   |       
|                   | Interest rate swap agreements |                   | $ | 700,000 |                   |  | $ | (3,654   | ) |  | $        | 1,000,000 |  |  | $ | 589    | 
|Fair Value Hedges: |                               |                   |   |         |                   |  |   |          |   |  |          |           |  |  |   |       
|                   | Interest rate swap agreements |                   |   | 803,836 |                   |  |   | 47,291   |   |  |          | 805,200   |  |  |   | 73,238 | 
|                   | Forward contracts(1)          |                   |   | 18,708  |                   |  |   | 9        |   |  |          |          |  |  |   |       | 






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







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





-67-



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##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002












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







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



-68-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002






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







-69-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|     |                                          
|---- | -----------------------------------------
|(11) | Commitments, Contingencies and Guarantees





|           |  |   |         | 
|---------- |  | - | ------- | 
|2005       |  | $ | 20,183  | 
|2006       |  |   | 19,253  | 
|2007       |  |   | 16,459  | 
|2008       |  |   | 14,424  | 
|2009       |  |   | 11,780  | 
|Thereafter |  |   | 70,407  | 
|           |  |   |        
|           |  | $ | 152,506 | 
|           |  |   |        





|                                         |  |                |            |  |      |   |           | 
|---------------------------------------- |  | -------------- | ---------- |  | ---- | - | --------- | 
|                                         |  | 2004           |            |  | 2003 |  
|                                         |  |                |            |  |      |  
|                                         |  | (In Thousands) |           
|Commitments to extend credit             |  | $              | 11,265,440 |  |      | $ | 9,993,691 | 
|Standby and commercial letters of credit |  |                | 716,195    |  |      |   | 451,868   | 







-70-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002
















|     |                                                   
|---- | --------------------------------------------------
|(12) | Regulatory Matters and Dividends from Subsidiaries





-71-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002






|                         |              |                    |   |           |                |  |  |          |   |  |       |           |  |        |  |      |       |  |   |           |  |  |  |      |  
|------------------------ | ------------ | ------------------ | - | --------- | -------------- |  |  | -------- | - |  | ----- | --------- |  | ------ |  | ---- | ----- |  | - | --------- |  |  |  | ---- | -
|                         |              | Total              |   |           |                |  | 
|                         |              | Qualifying Capital |   |           | Tier I Capital |  |  | Leverage |  
|                         |              |                    |   |           |                |  |  |          |  
|                         |              | Amount             |   |           | Ratio          |  |  | Amount   |   |  | Ratio |           |  | Amount |  |      | Ratio | 
|                         |              |                    |   |           |                |  |  |          |   |  |       |           |  |        |  |      |       | 
|As of December 31, 2004: |              |                    |   |           |                |  |  |          |   |  |       |           |  |        |  |      |       |  |   |           |  |  |  |     
|                         | Consolidated |                    | $ | 2,555,415 |                |  |  | 11.12    | % |  | $     | 2,088,501 |  |        |  | 9.09 | %     |  | $ | 2,088,501 |  |  |  | 7.51 | %
|                         | Compass Bank |                    |   | 2,420,567 |                |  |  | 10.56    |   |  |       | 1,893,653 |  |        |  | 8.26 |       |  |   | 1,893,653 |  |  |  | 6.83 |  
|As of December 31, 2003: |              |                    |   |           |                |  |  |          |   |  |       |           |  |        |  |      |       |  |   |           |  |  |  |     
|                         | Consolidated |                    | $ | 2,397,884 |                |  |  | 11.52    | % |  | $     | 1,892,501 |  |        |  | 9.09 | %     |  | $ | 1,892,501 |  |  |  | 7.25 | %
|                         | Compass Bank |                    |   | 2,213,530 |                |  |  | 10.67    |   |  |       | 1,648,147 |  |        |  | 7.94 |       |  |   | 1,648,147 |  |  |  | 6.33 |  









|     |                         
|---- | ------------------------
|(13) | Stock Based Compensation



-72-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002








|                                                               |  |         |            |          |       |   |       |         |          |   |            |   |  |          |       |  |       |   |            |   |  |   |       | 
|-------------------------------------------------------------- |  | ------- | ---------- | -------- | ----- | - | ----- | ------- | -------- | - | ---------- | - |  | -------- | ----- |  | ----- | - | ---------- | - |  | - | ----- | 
|                                                               |  | 2004    |            |          | 2003  |   |       | 2002    |         
|                                                               |  |         |            |          |       |   |       |         |         
|                                                               |  |         |            | Weighted |       |   |       |         | Weighted |   |            |   |  | Weighted |      
|                                                               |  |         |            | Average  |       |   |       |         | Average  |   |            |   |  | Average  |      
|                                                               |  |         |            | Exercise |       |   |       |         | Exercise |   |            |   |  | Exercise |      
|                                                               |  | Options |            |          | Price |   |       | Options |          |   | Price      |   |  | Options  |       |  | Price |  
|                                                               |  |         |            |          |       |   |       |         |          |   |            |   |  |          |       |  |       |  
|Outstanding, beginning of the year                             |  |         | 7,723,209  |          |       | $ | 25.54 |         |          |   | 7,112,497  |   |  | $        | 23.36 |  |       |   | 7,008,182  |   |  | $ | 20.89 | 
|Granted                                                        |  |         | 1,499,337  |          |       |   | 38.44 |         |          |   | 1,806,794  |   |  |          | 31.82 |  |       |   | 1,974,313  |   |  |   | 29.11 | 
|Exercised                                                      |  |         | (1,268,139 | )        |       |   | 22.75 |         |          |   | (1,032,136 | ) |  |          | 21.16 |  |       |   | (1,712,799 | ) |  |   | 19.85 | 
|Forfeited                                                      |  |         | (186,437   | )        |       |   | 30.00 |         |          |   | (163,946   | ) |  |          | 27.57 |  |       |   | (157,199   | ) |  |   | 23.60 | 
|                                                               |  |         |            |          |       |   |       |         |          |   |            |   |  |          |       |  |       |  
|Outstanding, end of the
    year                               |  |         | 7,767,970  |          |       | $ | 28.42 |         |          |   | 7,723,209  |   |  | $        | 25.54 |  |       |   | 7,112,497  |   |  | $ | 23.36 | 
|                                                               |  |         |            |          |       |   |       |         |          |   |            |   |  |          |       |  |       |  
|Weighted average fair value of options granted during the year |  | $       | 7.14       |          |       |   |       |         |          | $ | 5.90       |   |  |          |       |  |       | $ | 5.87       |   |  |   |       | 
|Exercisable, end of the
    year                               |  |         | 5,055,339  |          |       |   |       |         |          |   | 4,747,002  |   |  |          |       |  |       |   | 4,567,702  |   |  |   |       | 



-73-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|                         |  |             |           |           |          |           |         |             |  |  |      | 
|------------------------ |  | ----------- | --------- | --------- | -------- | --------- | ------- | ----------- |  |  | ---- | 
|                         |  |             |           |           |          | Weighted- |        
|                         |  |             |           | Weighted- |          |           | Average |            
|                         |  | Stock       |           |           | Average  |           |         | Remaining   | 
|                         |  | Options     |           |           | Exercise |           |         | Contractual | 
|Range of Exercise Prices |  | Outstanding |           |           | Price    |           |         | Life        | 
|                         |  |             |           |           |          |           |         |             | 
|$10.00 - $14.99          |  |             | 130,973   |           |          | $         | 13.30   |             |  |  | 0.68 | 
|$15.00 - $19.99          |  |             | 820,839   |           |          |           | 17.41   |             |  |  | 4.44 | 
|$20.00 - $24.99          |  |             | 1,688,334 |           |          |           | 22.03   |             |  |  | 5.21 | 
|$25.00 - $29.99          |  |             | 1,966,879 |           |          |           | 28.92   |             |  |  | 5.97 | 
|$30.00 or more           |  |             | 3,160,945 |           |          |           | 35.00   |             |  |  | 8.72 | 
|                         |  |             |           |           |          |           |         |             | 
|                         |  |             | 7,767,970 |           |          |           |         |             |  |  |      | 
|                         |  |             |           |           |          |           |         |             | 







|     |              
|---- | -------------
|(14) | Benefit Plans



-74-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




Obligations and Funded Status


|                             |                                                        |                                          |   |         |         |  |   |         |         | 
|---------------------------- | ------------------------------------------------------ | ---------------------------------------- | - | ------- | ------- |  | - | ------- | ------- | 
|                             |                                                        | Pension Benefits                         |  
|                             |                                                        | December 31                              |  
|                             |                                                        |                                          |  
|                             |                                                        | 2004                                     |   |         | 2003    | 
|                             |                                                        |                                          |   |         |         | 
|                             |                                                        | (In Thousands)                           |  
|Change in benefit obligation |                                                        |                                          |   |         |         |  |   |        
|                             | Benefit obligation at beginning of year                |                                          | $ | 136,147 |         |  | $ | 117,707 |        
|                             | Service cost                                           |                                          |   | 6,829   |         |  |   | 6,179   |        
|                             | Interest cost                                          |                                          |   | 8,448   |         |  |   | 7,798   |        
|                             | Actuarial loss                                         |                                          |   | 20,490  |         |  |   | 7,201   |        
|                             | Benefits paid                                          |                                          |   | (3,053  | )       |  |   | (2,738  | )      
|                             |                                                        |                                          |   |         |         | 
|                             |                                                        | Benefit obligation at end of year        |   |         | 168,861 |  |   |         | 136,147 | 
|                             |                                                        |                                          |   |         |         | 
|Change in plan assets        |                                                        |                                          |   |         |         |  |   |        
|                             | Fair value of plan assets at the beginning of the year |                                          |   | 143,552 |         |  |   | 116,360 |        
|                             | Actual return on plan assets                           |                                          |   | 10,539  |         |  |   | 8,930   |        
|                             | Employer contribution                                  |                                          |   | 13,220  |         |  |   | 21,000  |        
|                             | Benefits paid                                          |                                          |   | (3,053  | )       |  |   | (2,738  | )      
|                             |                                                        |                                          |   |         |         | 
|                             |                                                        | Fair value of plan assets at end of year |   |         | 164,258 |  |   |         | 143,552 | 
|                             |                                                        |                                          |   |         |         | 
|                             | Funded status                                          |                                          |   | (4,603  | )       |  |   | 7,405   |        
|                             | Unrecognized net actuarial loss                        |                                          |   | 49,726  |         |  |   | 30,281  |        
|                             | Unrecognized prior service cost                        |                                          |   | 266     |         |  |   | 300     |        
|                             |                                                        |                                          |   |         |         | 
|                             |                                                        | Net amount recognized                    |   | $       | 45,389  |  |   | $       | 37,986  | 
|                             |                                                        |                                          |   |         |         | 



|                                       |                       |                  |        |        |      |   |        |        | 
|-------------------------------------- | --------------------- | ---------------- | ------ | ------ | ---- | - | ------ | ------ | 
|                                       |                       | Pension Benefits |       
|                                       |                       | December 31      |       
|                                       |                       |                  |       
|                                       |                       | 2004             |        |        | 2003 |  
|                                       |                       |                  |        |        |      |  
|                                       |                       | (In Thousands)   |       
|Prepaid benefit cost                   |                       | $                | 45,389 |        |      | $ | 37,986 |       
|Accrued benefit liability              |                       |                  |       |        |      |   |       |       
|Intangible asset                       |                       |                  |       |        |      |   |       |       
|Accumulated other comprehensive income |                       |                  |       |        |      |   |       |       
|                                       |                       |                  |        |        |      |  
|                                       | Net amount recognized |                  | $      | 45,389 |      |   | $      | 37,986 | 
|                                       |                       |                  |        |        |      |  



-75-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002


Components of Net Periodic Benefit Cost


|                                     |  |                  |         |   |      |   |         |  
|------------------------------------ |  | ---------------- | ------- | - | ---- | - | ------- | -
|                                     |  | Pension Benefits |        
|                                     |  |                  |        
|                                     |  | 2004             |         |   | 2003 |  
|                                     |  |                  |         |   |      |  
|                                     |  | (In Thousands)   |        
|Service cost                         |  | $                | 6,829   |   |      | $ | 6,179   |  
|Interest cost                        |  |                  | 8,448   |   |      |   | 7,798   |  
|Expected return on plan assets       |  |                  | (11,128 | ) |      |   | (10,059 | )
|Amortization of prior service cost   |  |                  | 34      |   |      |   | 34      |  
|Recognized net actuarial (gain) loss |  |                  | 1,634   |   |      |   | 1,009   |  
|                                     |  |                  |         |   |      |  
|Net periodic benefit cost            |  | $                | 5,817   |   |      | $ | 4,961   |  
|                                     |  |                  |         |   |      |  

Additional Information


|                                                                                        |                                |                  |   |      |      |   |   |      |  
|--------------------------------------------------------------------------------------- | ------------------------------ | ---------------- | - | ---- | ---- | - | - | ---- | -
|                                                                                        |                                | Pension Benefits |  
|                                                                                        |                                |                  |  
|                                                                                        |                                | 2004             |   |      | 2003 |  
|                                                                                        |                                |                  |   |      |      |  
|                                                                                        |                                | (In Thousands)   |  
|Increase in minimum liability included in other comprehensive
    income                |                                | $                |  |      |      | $ |  |     
|Assumptions                                                                             |                                |                  |   |      |      |   |   |     
|Weighted average assumptions used to determine benefit
    obligation at December 31,   |                                |                  |   |      |      |   |   |     
|                                                                                        | Discount rate                  |                  |   | 5.75 | %    |   |   | 6.25 | %
|                                                                                        | Rate of compensation increase  |                  |   | 4.00 |      |   |   | 3.50 |  
|Weighted average assumptions used to determine net cost for
    year ended December 31, |                                |                  |   |      |      |   |   |     
|                                                                                        | Discount rate                  |                  |   | 6.25 | %    |   |   | 6.75 | %
|                                                                                        | Expected return on plan assets |                  |   | 7.50 |      |   |   | 8.00 |  
|                                                                                        | Rate of compensation increase  |                  |   | 3.50 |      |   |   | 4.00 |  



-76-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002


Plan Assets




|                  |       |               |      |       |      |  |      |       |  
|----------------- | ----- | ------------- | ---- | ----- | ---- |  | ---- | ----- | -
|                  |       | Percentage of |     
|                  |       | Plan Assets   |     
|                  |       | December 31   |     
|                  |       |               |     
|Asset Category    |       | 2004          |      |       | 2003 | 
|                  |       |               |      |       |      | 
|Cash Securities   |       |               | 2.1  | %     |      |  | 39.4 | %    
|Equity Securities |       |               | 60.0 |       |      |  | 40.8 |      
|Debt Securities   |       |               | 37.9 |       |      |  | 19.8 |      
|                  |       |               |      |       |      | 
|                  | Total |               |      | 100.0 | %    |  |      | 100.0 | %
|                  |       |               |      |       |      | 









-77-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002








|     |                                       
|---- | --------------------------------------
|(15) | Business Combinations and Divestitures



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









-78-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




















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



-79-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|     |             
|---- | ------------
|(16) | Income Taxes



|                                       |         |                |         |         |         |   |         |         |         |   |         |         |         | 
|-------------------------------------- | ------- | -------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                       |         | 2004           |         |         | 2003    |   |         | 2002    |        
|                                       |         |                |         |         |         |   |         |         |        
|                                       |         | (In Thousands) |        
|Current income tax expense:            |         |                |         |         |         |   |         |         |         |   |         |        
|                                       | Federal |                | $       | 174,118 |         |   | $       | 167,415 |         |   | $       | 141,442 |        
|                                       | State   |                |         | 7,772   |         |   |         | 9,747   |         |   |         | 8,051   |        
|                                       |         |                |         |         |         |   |         |         |        
|                                       |         | Total          |         |         | 181,890 |   |         |         | 177,162 |   |         |         | 149,493 | 
|                                       |         |                |         |         |         |   |         |         |        
|Deferred income tax expense (benefit): |         |                |         |         |         |   |         |         |         |   |         |        
|                                       | Federal |                |         | 3,420   |         |   |         | 726     |         |   |         | 13,800  |        
|                                       | State   |                |         | 188     |         |   |         | (1,606  | )       |   |         | (534    | )      
|                                       |         |                |         |         |         |   |         |         |        
|                                       |         | Total          |         |         | 3,608   |   |         |         | (880    | ) |         |         | 13,266  | 
|                                       |         |                |         |         |         |   |         |         |        
|Total income tax expense               |         | $              | 185,498 |         |         | $ | 176,282 |         |         | $ | 162,759 |        
|                                       |         |                |         |         |         |   |         |         |        





|                                             |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |   |         |        |         |  |      |      |      |  
|-------------------------------------------- | ---------------------------------------------------------- | ------------------ | ------- | --------- | -------- |  | ---- | ------ | --------- | - | -------- | ------ | ------- | --------- | ---- | ---- | -------- | - | ------- | ------ | ------- |  | ---- | ---- | ---- | -
|                                             |                                                            | 2004               |         |           | 2003     |  |      | 2002   |          
|                                             |                                                            |                    |         |           |          |  |      |        |          
|                                             |                                                            |                    |         | Percent   |          |  |      |        | Percent   |   |          |        |         | Percent   |     
|                                             |                                                            |                    |         | of Pretax |          |  |      |        | of Pretax |   |          |        |         | of Pretax |     
|                                             |                                                            | Amount             |         |           | Earnings |  |      | Amount |           |   | Earnings |        |         | Amount    |      |      | Earnings |  
|                                             |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |  
|                                             |                                                            | (In Thousands)     |        
|Income tax expense at federal statutory rate |                                                            | $                  | 194,349 |           |          |  | 35.0 | %      |           | $ | 181,353  |        |         |           | 35.0 | %    |          | $ | 167,005 |        |         |  | 35.0 | %   
|Increase (decrease) resulting from:          |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |   |         |        |         |  |      |     
|                                             | Tax-exempt income                                          |                    |         | (8,631    | )        |  |      | (1.5   | )         |   |          | (8,538 | )       |           |      | (1.6 | )        |   |         | (9,754 | )       |  |      | (2.0 | )   
|                                             | State income tax expense net of federal income tax benefit |                    |         | 5,174     |          |  |      | 0.9    |           |   |          | 5,292  |         |           |      | 1.0  |          |   |         | 4,886  |         |  |      | 1.0  |     
|                                             | Other                                                      |                    |         | (5,394    | )        |  |      | (1.0   | )         |   |          | (1,825 | )       |           |      | (0.4 | )        |   |         | 622    |         |  |      | 0.1  |     
|                                             |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |  
|                                             |                                                            | Income tax expense |         | $         | 185,498  |  |      |        | 33.4      | % |          | $      | 176,282 |           |      |      | 34.0     | % |         | $      | 162,759 |  |      |      | 34.1 | %
|                                             |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |  

-80-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|                                   |                                                                                                                          |                   |     |        |         |   |         |        |         | 
|---------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ----------------- | --- | ------ | ------- | - | ------- | ------ | ------- | 
|                                   |                                                                                                                          | 2004              |     |        | 2003    |  
|                                   |                                                                                                                          |                   |     |        |         |  
|                                   |                                                                                                                          | (In Thousands)    |    
|Deferred tax assets:               |                                                                                                                          |                   |     |        |         |   |         |       
|                                   | Allowance for loan losses                                                                                                |                   | $   | 98,721 |         |   | $       | 94,824 |        
|                                   | Net unrealized losses on securities available for sale, hedging
    instruments and additional minimum pension liability |                   |     | 14,080 |         |   |         |       |        
|                                   | Other deferred tax assets                                                                                                |                   |     | 23,235 |         |   |         | 15,090 |        
|                                   |                                                                                                                          |                   |     |        |         |  
|                                   |                                                                                                                          | Total assets      |     |        | 136,036 |   |         |        | 109,914 | 
|                                   |                                                                                                                          |                   |     |        |         |  
|Deferred tax liabilities:          |                                                                                                                          |                   |     |        |         |   |         |       
|                                   | Premises and equipment                                                                                                   |                   |     | 42,884 |         |   |         | 34,303 |        
|                                   | Lease financing                                                                                                          |                   |     | 24,145 |         |   |         | 37,623 |        
|                                   | Net unrealized gains on securities available for sale and
    hedging instruments                                        |                   |     |       |         |   |         | 20,322 |        
|                                   | Core deposit and other acquired intangibles                                                                              |                   |     | 19,607 |         |   |         | 18,785 |        
|                                   | Prepaid pension benefit cost                                                                                             |                   |     | 17,157 |         |   |         | 14,344 |        
|                                   | Loan costs                                                                                                               |                   |     | 16,011 |         |   |         |       |        
|                                   | Other deferred tax liabilities                                                                                           |                   |     | 16,086 |         |   |         | 15,185 |        
|                                   |                                                                                                                          |                   |     |        |         |  
|                                   |                                                                                                                          | Total liabilities |     |        | 135,890 |   |         |        | 140,562 | 
|                                   |                                                                                                                          |                   |     |        |         |  
|Net deferred tax asset (liability) |                                                                                                                          | $                 | 146 |        |         | $ | (30,648 | )     
|                                   |                                                                                                                          |                   |     |        |         |  

-81-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|     |               
|---- | --------------
|(17) | Parent Company



Balance Sheets


|                                                                         |                                            |                |           |           |      |   |           |           | 
|------------------------------------------------------------------------ | ------------------------------------------ | -------------- | --------- | --------- | ---- | - | --------- | --------- | 
|                                                                         |                                            | December 31    |          
|                                                                         |                                            |                |          
|                                                                         |                                            | 2004           |           |           | 2003 |  
|                                                                         |                                            |                |           |           |      |  
|                                                                         |                                            | (In Thousands) |          
|ASSETS                                                                  
|Cash and due from banks*                                                 |                                            | $              | 254,212   |           |      | $ | 300,322   |          
|Investment securities available for sale                                 |                                            |                | 29,621    |           |      |   | 30,810    |          
|Investment in subsidiaries*                                              |                                            |                | 2,297,169 |           |      |   | 2,095,857 |          
|Other assets*                                                            |                                            |                | 53,650    |           |      |   | 52,986    |          
|                                                                         |                                            |                |           |           |      |  
|                                                                         | Total assets                               |                | $         | 2,634,652 |      |   | $         | 2,479,975 | 
|                                                                         |                                            |                |           |           |      |  
|                                                                        
|LIABILITIES AND SHAREHOLDERS EQUITY                                    
|Commercial paper                                                         |                                            | $              | 97,498    |           |      | $ | 73,512    |          
|Accrued expenses and other liabilities*                                  |                                            |                | 61,872    |           |      |   | 18,790    |          
|Junior subordinated debt payable to unconsolidated subsidiary
    trusts |                                            |                | 430,029   |           |      |   | 463,843   |          
|Subordinated debentures and other borrowings                             |                                            |                |          |           |      |   | 51,947    |          
|                                                                         |                                            |                |           |           |      |  
|                                                                         | Total liabilities                          |                |           | 589,399   |      |   |           | 608,092   | 
|Shareholders equity                                                     |                                            |                | 2,045,253 |           |      |   | 1,871,883 |          
|                                                                         |                                            |                |           |           |      |  
|                                                                         | Total liabilities and shareholders equity |                | $         | 2,634,652 |      |   | $         | 2,479,975 | 
|                                                                         |                                            |                |           |           |      |  






|  |                            
|- | ---------------------------
|* | Eliminates in consolidation

-82-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002


Statements of Income


|                                                  |                                                                                           |                        |         |         |         |  |         |         |         |  |         |         |         | 
|------------------------------------------------- | ----------------------------------------------------------------------------------------- | ---------------------- | ------- | ------- | ------- |  | ------- | ------- | ------- |  | ------- | ------- | ------- | 
|                                                  |                                                                                           | Year Ended December 31 |        
|                                                  |                                                                                           |                        |        
|                                                  |                                                                                           | 2004                   |         |         | 2003    |  |         | 2002    |        
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           | (In Thousands)         |        
|Income:                                           |                                                                                           |                        |         |         |         |  |         |         |         |  |         |        
|                                                  | Cash dividends from subsidiaries*                                                         |                        | $       | 120,000 |         |  | $       | 350,371 |         |  | $       | 205,319 |        
|                                                  | Interest on investments with affiliates *                                                 |                        |         | 7,466   |         |  |         | 7,797   |         |  |         | 7,740   |        
|                                                  | Other                                                                                     |                        |         | 3,245   |         |  |         | 1,690   |         |  |         | 565     |        
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           | Total income           |         |         | 130,711 |  |         |         | 359,858 |  |         |         | 213,624 | 
|Expense:                                          |                                                                                           |                        |         |         |         |  |         |         |         |  |         |        
|                                                  | Interest on commercial paper and other borrowings                                         |                        |         | 1,586   |         |  |         | 4,828   |         |  |         | 21,670  |        
|                                                  | Other                                                                                     |                        |         | 20,621  |         |  |         | 18,876  |         |  |         | 5,218   |        
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           | Total expense          |         |         | 22,207  |  |         |         | 23,704  |  |         |         | 26,888  | 
|                                                  | Income before income tax benefit and equity in undistributed
    earnings of subsidiaries |                        |         | 108,504 |         |  |         | 336,154 |         |  |         | 186,736 |        
|                                                  | Applicable income tax benefit                                                             |                        |         | (4,342  | )       |  |         | (5,372  | )       |  |         | (6,959  | )      
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           |                        | 112,846 |         |         |  | 341,526 |         |         |  | 193,695 |        
|Equity in undistributed earnings of subsidiaries* |                                                                                           |                        | 256,938 |         |         |  | 342     |         |         |  | 120,704 |        
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           | Net income             |         | $       | 369,784 |  |         | $       | 341,868 |  |         | $       | 314,399 | 
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        






|  |                            
|- | ---------------------------
|* | Eliminates in consolidation

-83-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002


Statements of Cash Flows


|                                                   |                                                                                    |                                          |                                                     |          |          |          |         |          |        |          |         |          |          |         | 
|-------------------------------------------------- | ---------------------------------------------------------------------------------- | ---------------------------------------- | --------------------------------------------------- | -------- | -------- | -------- | ------- | -------- | ------ | -------- | ------- | -------- | -------- | ------- | 
|                                                   |                                                                                    | Year Ended December 31                   |                                                    
|                                                   |                                                                                    |                                          |                                                    
|                                                   |                                                                                    | 2004                                     |                                                     |          | 2003     |          |         | 2002     |       
|                                                   |                                                                                    |                                          |                                                     |          |          |          |         |          |       
|                                                   |                                                                                    | (In Thousands)                           |                                                    
|Operating Activities:                              |                                                                                    |                                          |                                                     |          |          |          |         |          |        |          |         |         
|                                                   | Net income                                                                         |                                          | $                                                   | 369,784  |          |          | $       | 341,868  |        |          | $       | 314,399  |         
|                                                   | Adjustments to reconcile net income to cash provided by
    operations:            |                                          |                                                     |          |          |          |         |          |        |          |         |          |         
|                                                   |                                                                                    | Depreciation and amortization            |                                                     |          | 4,459    |          |         |          | 2,994  |          |         |          | 2,293    |        
|                                                   |                                                                                    | Equity in undistributed earnings         |                                                     |          | (256,938 | )        |         |          | (342   | )        |         |          | (120,704 | )      
|                                                   |                                                                                    | Increase in other assets                 |                                                     |          | (12,741  | )        |         |          | (2,954 | )        |         |          | (8,061   | )      
|                                                   |                                                                                    | Increase (decrease) in other liabilities |                                                     |          | 6,473    |          |         |          | (7,492 | )        |         |          | 8,144    |        
|                                                   |                                                                                    |                                          |                                                     |          |          |          |         |          |       
|                                                   |                                                                                    |                                          | Net cash provided by operating activities           |          |          | 111,037  |         |          |        | 334,074  |         |          |          | 196,071 | 
|Investing Activities:                              |                                                                                    |                                          |                                                     |          |          |          |         |          |        |          |         |         
|                                                   | Proceeds from sales of investment securities available for sale                    |                                          |                                                     |         |          |          |         |         |        |          |         | 1,441    |         
|                                                   | Proceeds from call of investment securities available for sale                     |                                          |                                                     | 4,310    |          |          |         |         |        |          |         |         |         
|                                                   | Capital receipts from (contributions to) subsidiaries                              |                                          |                                                     | 683      |          |          |         | (1,683   | )      |          |         | (368     | )       
|                                                   |                                                                                    |                                          |                                                     |          |          |          |         |          |       
|                                                   |                                                                                    |                                          | Net cash (used in) provided by investing activities |          |          | 4,993    |         |          |        | (1,683   | )       |          |          | 1,073   | 
|Financing Activities:                              |                                                                                    |                                          |                                                     |          |          |          |         |          |        |          |         |         
|                                                   | Net increase (decrease) in commercial paper                                        |                                          |                                                     | 23,986   |          |          |         | (3,416   | )      |          |         | (18,172  | )       
|                                                   | Repayment of other borrowings                                                      |                                          |                                                     | (50,000  | )        |          |         | (75,000  | )      |          |         |         |         
|                                                   | Issuance (repurchase) of junior subordinated debt payable
    to subsidiary trusts |                                          |                                                     | (23,000  | )        |          |         | (12,000  | )      |          |         | 300,000  |         
|                                                   | Common dividends paid                                                              |                                          |                                                     | (118,533 | )        |          |         | (139,376 | )      |          |         | (128,183 | )       
|                                                   | Purchase of treasury stock                                                         |                                          |                                                     | (33,829  | )        |          |         | (213,227 | )      |          |         | (130,587 | )       
|                                                   | Issuance of treasury stock for benefit plans and stock options                     |                                          |                                                     | 9,998    |          |          |         | 8,466    |        |          |         | 10,056   |         
|                                                   | Repayment of loans to finance stock purchases                                      |                                          |                                                     | 616      |          |          |         | 1,126    |        |          |         | 5,404    |         
|                                                   | Proceeds from exercise of stock options                                            |                                          |                                                     | 28,622   |          |          |         | 22,742   |        |          |         | 30,354   |         
|                                                   |                                                                                    |                                          |                                                     |          |          |          |         |          |       
|                                                   |                                                                                    |                                          | Net cash (used in) provided by financing activities |          |          | (162,140 | )       |          |        | (410,685 | )       |          |          | 68,872  | 
|                                                   |                                                                                    |                                          |                                                     |          |          |          |         |          |       
|Net increase (decrease) in cash and due from banks |                                                                                    |                                          | (46,110                                             | )        |          |          | (78,294 | )        |        |          | 266,016 |         
|Cash and due from banks at beginning of the year   |                                                                                    |                                          | 300,322                                             |          |          |          | 378,616 |          |        |          | 112,600 |         
|                                                   |                                                                                    |                                          |                                                     |          |          |          |         |          |       
|Cash and due from banks at end of the year         |                                                                                    | $                                        | 254,212                                             |          |          | $        | 300,322 |          |        | $        | 378,616 |         
|                                                   |                                                                                    |                                          |                                                     |          |          |          |         |          |       



|     |                                    
|---- | -----------------------------------
|(18) | Fair Value of Financial Instruments



-84-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




Cash and due from banks:


Investment securities held to maturity and investment
securities available for sale:


Trading account assets:


Federal funds sold and securities purchased under
agreements to resell:


Loans:


Off-balance sheet instruments:


Derivatives:


Deposit liabilities:


Short-term borrowings:


FHLB and other borrowings:


-85-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002


|                       |              |                                                                                |  |   |                      |  |  |          |            |  |            |   |            |  |  |   |            | 
|---------------------- | ------------ | ------------------------------------------------------------------------------ |  | - | -------------------- |  |  | -------- | ---------- |  | ---------- | - | ---------- |  |  | - | ---------- | 
|                       |              | At December 31, 2004                                                           |  |   | At December 31, 2003 | 
|                       |              |                                                                                |  |   |                      | 
|                       |              | Carrying                                                                       |  |   | Estimated            |  |  | Carrying |            |  | Estimated  |  
|                       |              | Amount                                                                         |  |   | Fair Value           |  |  | Amount   |            |  | Fair Value |  
|                       |              |                                                                                |  |   |                      |  |  |          |            |  |            |  
|                       |              | (In Thousands)                                                                 | 
|Financial Instruments: |              |                                                                                |  |   |                      |  |  |          |            |  |            |   |            |  |  |  
|                       | Assets:      |                                                                                |  |   |                      |  |  |          |            |  |            |   |            |  |  |   |           
|                       |              | Cash and due from banks                                                        |  | $ | 585,679              |  |  | $        | 585,679    |  |            | $ | 726,492    |  |  | $ | 726,492    | 
|                       |              | Investment securities held to maturity                                         |  |   | 2,767,099            |  |  |          | 2,768,334  |  |            |   | 2,936,344  |  |  |   | 2,949,023  | 
|                       |              | Investment securities available for sale                                       |  |   | 4,398,184            |  |  |          | 4,398,184  |  |            |   | 4,375,208  |  |  |   | 4,375,208  | 
|                       |              | Trading account assets                                                         |  |   | 60,156               |  |  |          | 60,156     |  |            |   | 59,024     |  |  |   | 59,024     | 
|                       |              | Federal funds sold and securities purchased under agreements to
    resell     |  |   | 46,948               |  |  |          | 46,948     |  |            |   | 78,165     |  |  |   | 78,165     | 
|                       |              | Loans                                                                          |  |   | 18,856,922           |  |  |          | 18,542,415 |  |            |   | 17,365,802 |  |  |   | 17,397,215 | 
|                       | Liabilities: |                                                                                |  |   |                      |  |  |          |            |  |            |   |            |  |  |   |           
|                       |              | Noninterest bearing deposits                                                   |  | $ | 5,476,140            |  |  | $        | 5,476,140  |  |            | $ | 4,627,153  |  |  | $ | 4,627,153  | 
|                       |              | Interest bearing deposits                                                      |  |   | 11,563,011           |  |  |          | 11,568,839 |  |            |   | 11,060,670 |  |  |   | 11,101,440 | 
|                       |              | Federal funds purchased and securities sold under agreements to
    repurchase |  |   | 4,532,004            |  |  |          | 4,532,004  |  |            |   | 4,118,624  |  |  |   | 4,118,624  | 
|                       |              | Other short-term borrowings                                                    |  |   | 175,771              |  |  |          | 175,771    |  |            |   | 263,537    |  |  |   | 263,537    | 
|                       |              | FHLB and other borrowings                                                      |  |   | 4,140,972            |  |  |          | 4,156,322  |  |            |   | 4,827,814  |  |  |   | 5,034,436  | 



|     |                    
|---- | -------------------
|(19) | Segment Information









-86-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002








For the Year ended December 31, 2004


|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |         | 
|------------------------------------ | ------------------------- | -------------- | ---------- | ------- | ------- | - | --------- | ---------- |  | --------- | --------- | ------ | ----------- | ----- | --------- | ------ | ------------ | - | --------- | -------- | - | - | ---------- | ------- | 
|                                     |                           |                |            |         |         |   |           |            |  | Corporate |           |        |            
|                                     |                           | Corporate      |            |         | Retail  |   |           | Wealth     |  |           |           |        | Support and |       |           |       
|                                     |                           | Banking        |            |         | Banking |   |           | Management |  |           | Treasury  |        |             | Other |           |        | Consolidated |  
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|                                     |                           | (In Thousands) |           
|Income Statement:                    |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |        
|Net interest income                  |                           | $              | 343,097    |         |         | $ | 344,673   |            |  | $         | 47,549    |        |             | $     | 80,885    |        |              | $ | 95,624    |          |   | $ | 911,828    |        
|Noninterest income                   |                           |                | 139,763    |         |         |   | 402,495   |            |  |           | 29,316    |        |             |       | 55,895    |        |              |   | (9,879    | )        |   |   | 617,590    |        
|Noninterest expense                  |                           |                | 197,038    |         |         |   | 392,312   |            |  |           | 39,359    |        |             |       | 40,886    |        |              |   | 198,883   |          |   |   | 868,478    |        
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|                                     | Segment net income (loss) |                | $          | 285,822 |         |   | $         | 354,856    |  |           | $         | 37,506 |             |       | $         | 95,894 |              |   | $         | (113,138 | ) |   |            | 660,940 | 
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Provision for loan losses            |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 105,658    |        
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Net income before income tax expense |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 555,282    |        
|Income tax expense                   |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 185,498    |        
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Net income                           |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   | $ | 369,784    |        
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Balance Sheet:                       |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |        
|Average assets                       |                           | $              | 9,927,938  |         |         | $ | 6,717,578 |            |  | $         | 1,213,556 |        |             | $     | 7,657,565 |        |              | $ | 2,144,438 |          |   | $ | 27,661,075 |        
|Average loans                        |                           |                | 9,789,575  |         |         |   | 6,467,840 |            |  |           | 1,204,768 |        |             |       |          |        |              |   | 537,172   |          |   |   | 17,999,355 |        
|Average deposits                     |                           |                | 4,609,496  |         |         |   | 9,287,107 |            |  |           | 1,243,356 |        |             |       | 1,283,685 |        |              |   | (11,847   | )        |   |   | 16,411,797 |        
|Period-end assets                    |                           | $              | 10,238,188 |         |         | $ | 7,104,790 |            |  | $         | 1,294,636 |        |             | $     | 7,669,452 |        |              | $ | 1,877,562 |          |   | $ | 28,184,628 |        
|Period-end loans                     |                           |                | 10,101,932 |         |         |   | 6,848,770 |            |  |           | 1,285,285 |        |             |       |          |        |              |   | 620,935   |          |   |   | 18,856,922 |        
|Period-end deposits                  |                           |                | 4,826,556  |         |         |   | 9,615,470 |            |  |           | 1,211,464 |        |             |       | 1,420,492 |        |              |   | (34,831   | )        |   |   | 17,039,151 |        

-87-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|                                     |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |        |  |   |            |         | 
|------------------------------------ | ------------------ | -------------- | --------- | ------- | ------- | - | --------- | ---------- |  | --------- | --------- | ------ | ----------- | ----- | --------- | ------ | ------------ | - | --------- | ------ |  | - | ---------- | ------- | 
|                                     |                    |                |           |         |         |   |           |            |  | Corporate |           |        |            
|                                     |                    | Corporate      |           |         | Retail  |   |           | Wealth     |  |           |           |        | Support and |       |           |       
|                                     |                    | Banking        |           |         | Banking |   |           | Management |  |           | Treasury  |        |             | Other |           |        | Consolidated |  
|                                     |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|                                     |                    | (In Thousands) |          
|Income Statement:                    |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |        |  |   |            |        
|Net interest income                  |                    | $              | 313,011   |         |         | $ | 277,847   |            |  | $         | 37,758    |        |             | $     | 64,694    |        |              | $ | 216,220   |        |  | $ | 909,530    |        
|Noninterest income                   |                    |                | 131,738   |         |         |   | 349,410   |            |  |           | 28,286    |        |             |       | 26,313    |        |              |   | (9,563    | )      |  |   | 526,184    |        
|Noninterest expense                  |                    |                | 185,164   |         |         |   | 368,128   |            |  |           | 38,325    |        |             |       | 12,073    |        |              |   | 194,193   |        |  |   | 797,883    |        
|                                     |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|                                     | Segment net income |                | $         | 259,585 |         |   | $         | 259,129    |  |           | $         | 27,719 |             |       | $         | 78,934 |              |   | $         | 12,464 |  |   |            | 637,831 | 
|                                     |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Provision for loan losses            |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |        |  |   | 119,681    |        
|                                     |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Net income before income tax expense |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |        |  |   | 518,150    |        
|Income tax expense                   |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |        |  |   | 176,282    |        
|                                     |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Net income                           |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |        |  | $ | 341,868    |        
|                                     |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Balance Sheet:                       |                    |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |        |  |   |            |        
|Average assets                       |                    | $              | 9,230,631 |         |         | $ | 5,958,776 |            |  | $         | 1,025,863 |        |             | $     | 6,687,490 |        |              | $ | 2,239,959 |        |  | $ | 25,142,719 |        
|Average loans                        |                    |                | 9,074,624 |         |         |   | 5,723,692 |            |  |           | 1,017,144 |        |             |       |          |        |              |   | 980,728   |        |  |   | 16,796,188 |        
|Average deposits                     |                    |                | 3,995,440 |         |         |   | 8,946,112 |            |  |           | 1,226,041 |        |             |       | 788,987   |        |              |   | 39,269    |        |  |   | 14,995,849 |        
|Period-end assets                    |                    | $              | 9,555,757 |         |         | $ | 6,406,731 |            |  | $         | 1,092,830 |        |             | $     | 7,673,763 |        |              | $ | 2,234,032 |        |  | $ | 26,963,113 |        
|Period-end loans                     |                    |                | 9,421,536 |         |         |   | 6,135,978 |            |  |           | 1,084,268 |        |             |       |          |        |              |   | 724,020   |        |  |   | 17,365,802 |        
|Period-end deposits                  |                    |                | 4,383,398 |         |         |   | 9,035,555 |            |  |           | 1,265,937 |        |             |       | 1,014,957 |        |              |   | (12,024   | )      |  |   | 15,687,823 |        



|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |   |           |          |   |   |            |         | 
|------------------------------------ | ------------------------- | -------------- | --------- | ------- | ------- | - | --------- | ---------- |  | --------- | --------- | ------ | ----------- | ----- | --------- | ------- | ------------ | - | --------- | -------- | - | - | ---------- | ------- | 
|                                     |                           |                |           |         |         |   |           |            |  | Corporate |           |        |            
|                                     |                           | Corporate      |           |         | Retail  |   |           | Wealth     |  |           |           |        | Support and |       |           |        
|                                     |                           | Banking        |           |         | Banking |   |           | Management |  |           | Treasury  |        |             | Other |           |         | Consolidated |  
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |  
|                                     |                           | (In Thousands) |          
|Income Statement:                    |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |   |           |          |   |   |            |        
|Net interest income                  |                           | $              | 375,991   |         |         | $ | 370,955   |            |  | $         | 51,643    |        |             | $     | 115,513   |         |              | $ | 10,753    |          |   | $ | 924,855    |        
|Noninterest income                   |                           |                | 92,325    |         |         |   | 289,205   |            |  |           | 26,006    |        |             |       | 33,538    |         |              |   | (11       | )        |   |   | 441,063    |        
|Noninterest expense                  |                           |                | 174,645   |         |         |   | 336,332   |            |  |           | 35,579    |        |             |       | 18,551    |         |              |   | 187,322   |          |   |   | 752,429    |        
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |  
|                                     | Segment net income (loss) |                | $         | 293,671 |         |   | $         | 323,828    |  |           | $         | 42,070 |             |       | $         | 130,500 |              |   | $         | (176,580 | ) |   |            | 613,489 | 
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |  
|Provision for loan losses            |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |   |           |          |   |   | 136,331    |        
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |  
|Net income before income tax expense |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |   |           |          |   |   | 477,158    |        
|Income tax expense                   |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |   |           |          |   |   | 162,759    |        
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |  
|Net income                           |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |   |           |          |   | $ | 314,399    |        
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |  
|Balance Sheet:                       |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |         |              |   |           |          |   |   |            |        
|Average assets                       |                           | $              | 8,908,143 |         |         | $ | 5,016,144 |            |  | $         | 883,500   |        |             | $     | 7,043,444 |         |              | $ | 1,503,096 |          |   | $ | 23,354,327 |        
|Average loans                        |                           |                | 8,800,787 |         |         |   | 4,750,679 |            |  |           | 874,054   |        |             |       |          |         |              |   | 675,324   |          |   |   | 15,100,844 |        
|Average deposits                     |                           |                | 3,501,461 |         |         |   | 8,831,532 |            |  |           | 1,126,950 |        |             |       | 612,930   |         |              |   | 70,417    |          |   |   | 14,143,290 |        
|Period-end assets                    |                           | $              | 9,054,074 |         |         | $ | 5,596,187 |            |  | $         | 951,353   |        |             | $     | 6,180,044 |         |              | $ | 2,143,931 |          |   | $ | 23,925,589 |        
|Period-end loans                     |                           |                | 8,914,602 |         |         |   | 5,335,406 |            |  |           | 942,034   |        |             |       |          |         |              |   | 1,289,278 |          |   |   | 16,481,320 |        
|Period-end deposits                  |                           |                | 3,865,850 |         |         |   | 8,782,925 |            |  |           | 1,212,364 |        |             |       | 1,205,030 |         |              |   | 69,218    |          |   |   | 15,135,387 |        

-88-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002








|     |                   
|---- | ------------------
|(20) | Earnings Per Share



|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         |  |  |   |         | 
|--------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | - | ------- | ---- |  | - | ------- |  |  | - | ------- | 
|                            |                                                                                                                                                                         | Year Ended December 31                |  
|                            |                                                                                                                                                                         |                                       |  
|                            |                                                                                                                                                                         | 2004                                  |   |         | 2003 |  |   | 2002    | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            |                                                                                                                                                                         | (In Thousands, Except Per Share Data) |  
|BASIC EARNINGS PER SHARE:   |                                                                                                                                                                         |                                       |   |         |      |  |   |         |  |  |   |        
|                            | Net income                                                                                                                                                              |                                       | $ | 369,784 |      |  | $ | 341,868 |  |  | $ | 314,399 | 
|                            | Plus: Adjustment                                                                                                                                                        |                                       |   |        |      |  |   |        |  |  |   |        | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Net income available to common shareholders                                                                                                                             |                                       | $ | 369,784 |      |  | $ | 341,868 |  |  | $ | 314,399 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Weighted average basic common shares outstanding                                                                                                                        |                                       |   | 122,254 |      |  |   | 124,656 |  |  |   | 127,575 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Basic earnings per share                                                                                                                                                |                                       | $ | 3.02    |      |  | $ | 2.74    |  |  | $ | 2.46    | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|DILUTED EARNINGS PER SHARE: |                                                                                                                                                                         |                                       |   |         |      |  |   |         |  |  |   |        
|                            | Net income                                                                                                                                                              |                                       | $ | 369,784 |      |  | $ | 341,868 |  |  | $ | 314,399 | 
|                            | Plus: Adjustment                                                                                                                                                        |                                       |   |        |      |  |   |        |  |  |   |        | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Net income available to common shareholders and assumed
    conversions                                                                                                 |                                       | $ | 369,784 |      |  | $ | 341,868 |  |  | $ | 314,399 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Weighted average common shares outstanding                                                                                                                              |                                       |   | 122,254 |      |  |   | 124,656 |  |  |   | 127,575 | 
|                            | Net effect of nonvested restricted stock and the assumed
    exercise of stock options  based on the treasury
    stock method using average market price for the year |                                       |   | 3,162   |      |  |   | 2,530   |  |  |   | 2,275   | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Weighted average diluted common shares outstanding                                                                                                                      |                                       |   | 125,416 |      |  |   | 127,186 |  |  |   | 129,850 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Diluted earnings per share                                                                                                                                              |                                       | $ | 2.95    |      |  | $ | 2.69    |  |  | $ | 2.42    | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 

-89-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|     |                     
|---- | --------------------
|(21) | Comprehensive Income





|                                                                        |                                                                                                                                                         |                                                                              |   |         |         |   |   |          |         |   |   |         |        | 
|----------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | - | ------- | ------- | - | - | -------- | ------- | - | - | ------- | ------ | 
|                                                                        |                                                                                                                                                         | Year Ended December 31                                                       |  
|                                                                        |                                                                                                                                                         |                                                                              |  
|                                                                        |                                                                                                                                                         | 2004                                                                         |   |         | 2003    |   |   | 2002     |        
|                                                                        |                                                                                                                                                         |                                                                              |   |         |         |   |   |          |        
|                                                                        |                                                                                                                                                         | (In Thousands)                                                               |  
|Other comprehensive income (loss), before tax:                          |                                                                                                                                                         |                                                                              |   |         |         |   |   |          |         |   |   |        
|                                                                        | Unrealized holding gain (loss) on investment securities
    available for sale, net                                                                     |                                                                              | $ | (41,152 | )       |   | $ | (106,955 | )       |   | $ | 119,306 |       
|                                                                        | Less reclassification adjustment for gains (losses) on
    investment securities available for sale                                                     |                                                                              |   | 27,336  |         |   |   | (43      | )       |   |   | 4,233   |       
|                                                                        | Net change in additional minimum pension liability                                                                                                      |                                                                              |   | (3,469  | )       |   |   |         |         |   |   |        |       
|                                                                        | Amortization of unrealized net holding losses on investment
    securities available for sale transferred to investment
    securities held to maturity |                                                                              |   | (10,702 | )       |   |   | (2,437   | )       |   |   |        |       
|                                                                        | Net change in accumulated losses on cash-flow hedging instruments                                                                                       |                                                                              |   | (14,572 | )       |   |   | (48,974  | )       |   |   | (10,165 | )     
|                                                                        |                                                                                                                                                         |                                                                              |   |         |         |   |   |          |        
|                                                                        | Other comprehensive income (loss), before income taxes and
    cumulative effect adjustment                                                             |                                                                              |   | (97,231 | )       |   |   | (158,323 | )       |   |   | 104,908 |       
|                                                                        |                                                                                                                                                         |                                                                              |   |         |         |   |   |          |        
|Income tax expense (benefit) related to other comprehensive
    income: |                                                                                                                                                         |                                                                              |   |         |         |   |   |          |         |   |   |        
|                                                                        | Unrealized holding gain (loss) on investment securities
    available for sale                                                                          |                                                                              |   | (15,469 | )       |   |   | (40,211  | )       |   |   | 44,149  |       
|                                                                        | Less reclassification adjustment for gains (losses) on
    investment securities available for sale                                                     |                                                                              |   | 10,276  |         |   |   | (16      | )       |   |   | 1,591   |       
|                                                                        | Net change in additional minimum pension liability                                                                                                      |                                                                              |   | (1,304  | )       |   |   |         |         |   |   |        |       
|                                                                        | Amortization of unrealized net holding losses on investment
    securities available for sale transferred to investment
    securities held to maturity |                                                                              |   | (4,023  | )       |   |   | (916     | )       |   |   |        |       
|                                                                        | Net change in accumulated gains (losses) on cash-flow hedging
    instruments                                                                           |                                                                              |   | (5,477  | )       |   |   | (18,409  | )       |   |   | (3,821  | )     
|                                                                        |                                                                                                                                                         |                                                                              |   |         |         |   |   |          |        
|                                                                        |                                                                                                                                                         | Total income tax expense (benefit) related to other
    comprehensive income |   |         | (36,549 | ) |   |          | (59,520 | ) |   |         | 38,737 | 
|                                                                        |                                                                                                                                                         |                                                                              |   |         |         |   |   |          |        
|                                                                        | Other comprehensive income (loss), after income taxes                                                                                                   |                                                                              | $ | (60,682 | )       |   | $ | (98,803  | )       |   | $ | 66,171  |       
|                                                                        |                                                                                                                                                         |                                                                              |   |         |         |   |   |          |        

-90-



---



##### 



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2004, 2003 and 2002




|     |                                                    
|---- | ---------------------------------------------------
|(22) | Supplemental Disclosure for Statement of Cash Flows



|                                                                                                                         |                     |                |         |       |      |   |           |        |  |   |         |        | 
|------------------------------------------------------------------------------------------------------------------------ | ------------------- | -------------- | ------- | ----- | ---- | - | --------- | ------ |  | - | ------- | ------ | 
|                                                                                                                         |                     | December 31    |        
|                                                                                                                         |                     |                |        
|                                                                                                                         |                     | 2004           |         |       | 2003 |   |           | 2002   | 
|                                                                                                                         |                     |                |         |       |      |   |           |        | 
|                                                                                                                         |                     | (In Thousands) |        
|Schedule of noncash investing and financing activities:                                                                  |                     |                |         |       |      |   |           |        |  |   |         |       
|Transfers of loans to other real estate owned                                                                            |                     | $              | 21,982  |       |      | $ | 32,255    |        |  | $ | 17,901  |       
|Transfers of investment securities to held to maturity securities                                                        |                     |                |        |       |      |   | 2,766,955 |        |  |   |        |       
|Increase in other assets and investment securities available for
    sale and long-term debt from FIN 46 deconsolidation |                     |                |        |       |      |   | 43,893    |        |  |   |        |       
|Loans to facilitate the sale of other real estate owned                                                                  |                     |                | 1,006   |       |      |   | 324       |        |  |   | 291     |       
|Assets retained in loan securitizations                                                                                  |                     |                | 589,912 |       |      |   | 1,141,866 |        |  |   |        |       
|Loans to finance stock purchases                                                                                         |                     |                | 863     |       |      |   | 372       |        |  |   | 3,568   |       
|Change in unrealized gain (loss) on available-for-sale securities                                                        |                     |                | (68,488 | )     |      |   | (106,912  | )      |  |   | 115,073 |       
|Issuance of restricted stock, net of cancellations                                                                       |                     |                | 8,571   |       |      |   | 6,546     |        |  |   | 2,764   |       
|Treasury stock exchanged for acquisition earnout                                                                         |                     |                | 4,741   |       |      |   |          |        |  |   |        |       
|Business combinations and divestitures:                                                                                  |                     |                |         |       |      |   |           |        |  |   |         |       
|                                                                                                                         | Common stock issued |                |         | 3,658 |      |   |           | 15,721 |  |   |         | 43,690 | 
|                                                                                                                         | Assets acquired     |                |         | 5,771 |      |   |           | 20,876 |  |   |         | 73,637 | 
|                                                                                                                         | Liabilities assumed |                |         | 2,381 |      |   |           | 6,824  |  |   |         | 24,606 | 
|                                                                                                                         | Assets sold         |                |         |      |      |   |           | 41,853 |  |   |         | 1,180  | 
|                                                                                                                         | Liabilities sold    |                |         |      |      |   |           | 70,032 |  |   |         | 1,136  | 

-91-



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##### 








|         |                                                                                         
|-------- | ----------------------------------------------------------------------------------------
|ITEM 9  | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
    ACCOUNTING AND FINANCIAL DISCLOSURE








|          |                        
|--------- | -----------------------
|ITEM 9A  | CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls
and Procedures






Managements Report on Internal Control Over Financial
Reporting











|          |                  
|--------- | -----------------
|ITEM 9B  | OTHER INFORMATION






PART III







|          |                                                   
|--------- | --------------------------------------------------
|ITEM 10  | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT








|          |                       
|--------- | ----------------------
|ITEM 11  | EXECUTIVE COMPENSATION



-92-



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##### 










|          |                                                                   
|--------- | ------------------------------------------------------------------
|ITEM 12  | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT



Equity Compensation Plan Information




|                                                           |                         |                      |           |           |                      |   |                                |                                     |     |  |           |           | 
|---------------------------------------------------------- | ----------------------- | -------------------- | --------- | --------- | -------------------- | - | ------------------------------ | ----------------------------------- | --- |  | --------- | --------- | 
|                                                           |                         | Number of            |           |           |                      |   |                               
|                                                           |                         | Securities to be     |           |           |                      |   | Number of Securities Remaining |                                    
|                                                           |                         | Issued upon Exercise |           |           | Weighted-Average     |   |                                | Available for Future Issuance under |    
|                                                           |                         | of Outstanding       |           |           | Exercise Price of    |   |                                | Equity Compensation Plans           |    
|                                                           |                         | Options, Warrants    |           |           | Outstanding Options, |   |                                | (Excluding Securities Reflected in  |    
|                                                           |                         | and Rights           |           |           | Warrants and Rights  |   |                                | Column (a))                         |    
|Plan Category                                              |                         | (a)                  |           |           | (b)                  |   |                                | (c)                                 |    
|                                                           |                         |                      |           |           |                      |   |                                |                                     |    
|Equity compensation plans approved by security holders     |                         |                      |           |           |                      |   |                                |                                     |     |  |           |          
|                                                           | Stock option awards(1)  |                      |           | 8,154,533 | (2)                  |   | $                              | 28.42                               |     |  |           | 3,479,632 | 
|                                                           | Stock purchase plans(3) |                      |           |          | (4)                  |   |                                |                                    | (4) |  |           | 3,184,044 | 
|Equity compensation plans not approved by security holders |                         |                      |          |           |                      |   |                               |                                     |     |  |          |          
|                                                           |                         |                      |           |           |                      |   |                                |                                     |    
|Total                                                      |                         |                      | 8,154,533 |           |                      | $ | 28.42                          |                                     |     |  | 6,663,676 |          
|                                                           |                         |                      |           |           |                      |   |                                |                                     |    






|    |                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Consists of awards granted under the 1996 Long-Term Incentive
    Plan, the 1999 Omnibus Incentive Compensation Plan and the 2002
    Incentive Compensation Plan.                                         
|   
|(2) | Amount includes 386,563 of restricted shares awarded, subject to
    vesting requirements.                                                                                                                 
|   
|(3) | Consists of the Compass Share Accumulation Plan, formerly known
    as the Compass ShareBuilder Plan                                                                                                       
|   
|(4) | The number of shares that may be issued pursuant to
    Compass stock purchase plans during a given period and the
    purchase price of such shares cannot be determined in advance of
    such purchases






|          |                                               
|--------- | ----------------------------------------------
|ITEM 13  | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS








|          |                                       
|--------- | --------------------------------------
|ITEM 14  | PRINCIPAL ACCOUNTING FEES AND SERVICES



-93-



---



##### 






PART IV







|          |                                           
|--------- | ------------------------------------------
|ITEM 15  | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES



|    |                                                                   
|--- | ------------------------------------------------------------------
|(a) | Compass Bancshares, Inc. and Subsidiaries Financial
    Statements

|                                                                                                         |  |      |    | 
|-------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                         |  | Page |   
|                                                                                                         |  |      |   
|Report of Independent Registered Public Accounting Firm                                                  |  |      | 42 | 
|Consolidated Balance Sheets as of December 31, 2004 and 2003                                             |  |      | 44 | 
|Consolidated Statements of Income for the years ended
    December 31, 2004, 2003 and 2002               |  |      | 45 | 
|Consolidated Statements of Shareholders Equity for the
    years ended December 31, 2004, 2003 and 2002 |  |      | 46 | 
|Consolidated Statements of Cash Flows for the years ended
    December 31, 2004, 2003 and 2002           |  |      | 47 | 
|Notes to Consolidated Financial Statements 
    December 31, 2004, 2003 and 2002                        |  |      | 48 | 



|    |         
|--- | --------
|(b) | 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 filed 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)                   
|
| |     | (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 filed 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)

-94-



---



##### 





|    |                     
|--- | --------------------
|(b) | Exhibits (continued)

| |      |     |  |                                                                                                                                                                                                                                                                                                                                                                     
| | ---- | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |      | (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 filed
    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 filed with the
    Commission)                                                                                                                  
|
| |      | (e) |  | 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.s Registration Statement on Form S-4,
    Registration No. 333-15373, filed November 1, 1996,
    with the Commission)                                                         
|
| |      | (f) |  | 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 filed with the
    Commission)                                                                                                                    
|
| |      | (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.s December 31, 2001 Form 10-K filed with the
    Commission)                                                                                                                 
|
| |      | (h) |  | First Amendment to Employment Agreement, dated March 31,
    1997, between Compass Bancshares, Inc. and D. Paul Jones, Jr.                                                                                                                                                                                                                                          
|
| |      | (i) |  | First Amendment to Employment Agreement, dated April 14,
    1997, between Compass Bancshares, Inc. and Garrett R. Hegel                                                                                                                                                                                                                                            
|
| |      | (j) |  | First Amendment to Employment Agreement, dated April 18,
    1997, between Compass Bancshares, Inc. and G. Ray Stone                                                                                                                                                                                                                                                
|
| |      | (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
    filed 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
    filed 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
    filed 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
    filed with the Commission                                                                                                  
|
| |      | (o) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and G. Ray Stone                                                                                                                                                                                                                                                    
|
| |      | (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 filed with the
    Commission)                                                                                                               

-95-



---



##### 





|    |                     
|--- | --------------------
|(b) | Exhibits (continued)

| |         |     |  |                                                                                                                                                                                                                                                                                                                                                                                    
| | ------- | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |         | (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 filed 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 filed 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 filed with the Commission)                                                                                               
|
| |         | (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
    filed 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
    filed 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)                                                                                                                         
| | (21)    |     |  | Subsidiaries of the Registrant                                                                                                                                                                                                                                                                                                                                                     
|
| | (23)    |     |  | Consents of experts and counsel                                                                                                                                                                                                                                                                                                                                                    
|
| | (24)    |     |  | Power of Attorney                                                                                                                                                                                                                                                                                                                                                                  
|
| | (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                                                                                                                                                                                                        



Exhibit 21  Subsidiaries of the Registrant


|                          |  |                        |         | 
|------------------------- |  | ---------------------- | ------- | 
|Subsidiaries              |  | State of Incorporation |        
|                          |  |                        |        
|Compass Bank              |  |                        | Alabama | 
|Central Bank of the South |  |                        | Alabama | 
|Compass Southwest LP      |  |                        | Texas   | 

-96-



---



##### 






SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


|                        |  |                          |  |                                                                                                                                     
|----------------------- |  | ------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------
|                        |  | COMPASS BANCSHARES, INC.
|                       
|Date: February 21, 2005 |  | By                       |  | /s/ D. Paul
    Jones, Jr.-----------------------------------------------D. Paul Jones, Jr.
    Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on
the dates indicated.


|                                                 |  |                                      |  |                   |  | 
|------------------------------------------------ |  | ------------------------------------ |  | ----------------- |  | 
|Signature                                        |  | Title                                |  | Date             
|                                                 |  |                                      |  |                  
|                                                
|/s/ D. Paul
    Jones, Jr.D. Paul Jones, Jr.     |  | Chairman and Chief Executive Officer |  | February 21, 2005
|                                                
|/s/ Garrett R. HegelGarrett R. Hegel             |  | Chief Financial Officer              |  | February 21, 2005
|                                                
|/s/ Kirk P. PressleyKirk P. Pressley             |  | Chief Accounting Officer             |  | February 21, 2005
|                                                
|/s/ James H. Click Jr.James H. Click Jr.         |  | Director                             |  | February 21, 2005
|                                                
|/s/ Charles W. DanielCharles W. Daniel           |  | Director                             |  | February 21, 2005
|                                                
|/s/ W. Eugene DavenportW. Eugene Davenport       |  | Director                             |  | February 21, 2005
|                                                
|/s/ Tranum FitzpatrickTranum Fitzpatrick         |  | Director                             |  | February 21, 2005
|                                                
|/s/ Carl J.
    Gessler, Jr.Carl J. Gessler, Jr. |  | Director                             |  | February 21, 2005
|                                                
|/s/ Charles E. McMahenCharles E. McMahen         |  | Director                             |  | February 21, 2005
|                                                
|/s/ John S. SteinJohn S. Stein                   |  | Director                             |  | February 21, 2005
|                                                
|/s/ J. Terry StrangeJ. Terry Strange             |  | Director                             |  | February 21, 2005

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