##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 10-K


|                                            |  |                                                                                             
|------------------------------------------- |  | --------------------------------------------------------------------------------------------
|(Mark One)                                  |  |                                                                                             
|þ                                           |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|                                           
|For the fiscal year ended December 31, 2005
|or-                                        
|o                                           |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934




Commission File No. 1-31272





(Exact name of registrant as specified in its charter)


|                                                                                            |  |                                         
|------------------------------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                                                    |  | 63-0593897                              
|                                                                                            |  |                                         
|(State or other jurisdiction of incorporation or
    organization)                          |  | (I.R.S. Employer
    Identification No.)
|15 South
    20thStreet
    Birmingham, Alabama(Address of principal executive
    offices) |  | 35233(Zip Code)                         

(205) 297-3000


(Registrants telephone number)


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


|                    |  |                                                                                                                   
|------------------- |  | ------------------------------------------------------------------------------------------------------------------
|Title of each class |  | Name of exchange on which registered                                                                              
|                    |  |                                                                                                                   
|Common Stock        |  | National Association of Securities Dealers, Inc.
    Automated Quotation National Market System
    (the NASDAQ)

þ o


o þ


þ o


S-K 10-K 10-K. o


12b-2


|                          |  |                     |  |                        
|------------------------- |  | ------------------- |  | -----------------------
|Large accelerated filer þ |  | Accelerated filer o |  | Non-accelerated filer o

12b-2 o þ






Document Incorporated by Reference












---



##### 










COMPASS BANCSHARES, INC.


TABLE OF CONTENTS


FORM 10-K


DECEMBER 31, 2005


|                                              |         |  |                                                                                                                      |  |     |     | 
|--------------------------------------------- | ------- |  | -------------------------------------------------------------------------------------------------------------------- |  | --- | --- | 
|PART I                                       
|                                              | ITEM 1  |  | BUSINESS                                                                                                             |  |     | 2   | 
|                                              | ITEM 1A |  | RISK FACTORS                                                                                                         |  |     | 8   | 
|                                              | ITEM 1B |  | UNRESOLVED STAFF COMMENTS                                                                                            |  |     | 9   | 
|                                              | ITEM 2  |  | PROPERTIES                                                                                                           |  |     | 10  | 
|                                              | ITEM 3  |  | LEGAL PROCEEDINGS                                                                                                    |  |     | 10  | 
|                                              | ITEM 4  |  | SUBMISSION OF MATTERS TO A VOTE OF
    SECURITY HOLDERS                                                              |  |     | 10  | 
|                                             
|PART II                                      
|                                              | ITEM 5  |  | MARKET FOR REGISTRANTS COMMON
    EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
    EQUITY SECURITIES |  |     | 11  | 
|                                              | ITEM 6  |  | SELECTED FINANCIAL DATA                                                                                              |  |     | 12  | 
|                                              | ITEM 7  |  | MANAGEMENTS DISCUSSION AND
    ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                            |  |     | 13  | 
|                                              | ITEM 7A |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES
    ABOUT MARKET RISK                                                       |  |     | 13  | 
|                                              | ITEM 8  |  | FINANCIAL STATEMENTS AND SUPPLEMENTARY
    DATA                                                                      |  |     | 45  | 
|                                              | ITEM 9  |  | CHANGES IN AND DISAGREEMENTS WITH
    ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                             |  |     | 100 | 
|                                              | ITEM 9A |  | CONTROLS AND PROCEDURES                                                                                              |  |     | 100 | 
|                                              | ITEM 9B |  | OTHER INFORMATION                                                                                                    |  |     | 100 | 
|                                             
|PART III                                     
|                                              | ITEM 10 |  | DIRECTORS AND EXECUTIVE OFFICERS OF THE
    REGISTRANT                                                               |  |     | 100 | 
|                                              | ITEM 11 |  | EXECUTIVE COMPENSATION                                                                                               |  |     | 101 | 
|                                              | ITEM 12 |  | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
    OWNERS AND MANAGEMENT                                                   |  |     | 101 | 
|                                              | ITEM 13 |  | CERTAIN RELATIONSHIPS AND RELATED
    TRANSACTIONS                                                                   |  |     | 101 | 
|                                              | ITEM 14 |  | PRINCIPAL ACCOUNTING FEES AND
    SERVICES                                                                           |  |     | 101 | 
|                                             
|PART IV                                      
|                                              | ITEM 15 |  | EXHIBITS AND FINANCIAL STATEMENT
    SCHEDULES                                                                       |  |     | 102 | 
|SIGNATURES                                    |         |  |                                                                                                                      |  | 106 |    
|EX-21 SUBSIDIARIES OF THE REGISTRANT         
|EX-23 CONSENTS OF EXPERTS AND COUNSEL        
|EX-31(A) SECTION 302 CERTIFICATION OF THE CEO
|EX-31(B) SECTION 302 CERTIFICATION OF THE CFO
|EX-32(A) SECTION 906 CERTIFICATION OF THE CEO
|EX-32(B) SECTION 906 CERTIFICATION OF THE CFO



-1-



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PART I







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

10-K 10-K.


General Development of the Company




Parent Company




Subsidiary Banks






Lines of Business




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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

out-of


out-of




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





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





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The Subsidiary Banks




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







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







| |                     
| | --------------------
| | Laws and Regulations



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ITEM 1A  RISK FACTORS






| |   |                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------
| |  | Changes in securities analysts expectations of financial
    performance                                            
|
| |  | General volatility of stock market prices and volumes                                                                
|
| |  | Incorrect information or speculation                                                                                 
|
| |  | Changes in industry valuations                                                                                       
|
| |  | Interest rate changes                                                                                                
|
| |  | Variations in operating results from general expectations                                                            
|
| |  | Actions taken against the Company by various regulatory agencies                                                     
|
| |  | Changes in authoritative accounting guidance by Financial
    Accounting Standards Board or other regulatory agencies







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| |                                                                 
| | ----------------------------------------------------------------
| | Future Government Regulation Could Hinder Future
    Performance









| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Additional Risk Factors May Have an Impact on the
    Companys Financial Performance






ITEM 1B  UNRESOLVED STAFF COMMENTS




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STATISTICAL DISCLOSURE


|                                                                                    |  |          
|----------------------------------------------------------------------------------- |  | ---------
|                                                                                    |  | Page(s)  
|                                                                                    |  |          
|Loan Portfolio                                                                      |  | 17       
|Selected Loan Maturity and Interest Rate Sensitivity                                |  | 17       
|Managed Loan Portfolio                                                              |  | 18       
|Investment Securities Held to Maturity and Available for Sale                       |  | 20       
|Investment Securities Held to Maturity and Available for Sale
    Maturity Schedule |  | 21       
|Trading Account Assets and Liabilities                                              |  | 23       
|Maturities of Time Deposits                                                         |  | 24       
|Short-Term Borrowings                                                               |  | 25       
|Contractual Obligations                                                             |  | 26       
|Commitments                                                                         |  | 27       
|Net Interest Income Sensitivity                                                     |  | 28       
|Return on Equity and Assets                                                         |  | 29       
|Capital Ratios                                                                      |  | 30       
|Consolidated Average Balance Sheets and Rate/ Volume Variances                      |  | 36 and 37
|Summary of Loan Loss Experience                                                     |  | 39       
|Allocation of Allowance for Loan Losses                                             |  | 40       
|Nonperforming Assets                                                                |  | 41       

Website Availability of Reports Filed with the Securities and
Exchange Commission


10-K, 10-Q, 8-K,







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








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








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



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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


end-of


|      |                |      |   |       |     |  |   |       |  |  |          |       |  |  |   |        | 
|----- | -------------- | ---- | - | ----- | --- |  | - | ----- |  |  | -------- | ----- |  |  | - | ------ | 
|      |                | High |   |       | Low |  |   | Close |  |  | Dividend |      
|      |                |      |   |       |     |  |   |       |  |  |          |      
|2005: |                |      |   |       |     |  |   |       |  |  |          |       |  |  |   |       
|      | First Quarter  |      | $ | 48.14 |     |  | $ | 44.20 |  |  | $        | 45.40 |  |  | $ | 0.3500 | 
|      | Second Quarter |      |   | 46.25 |     |  |   | 42.88 |  |  |          | 45.00 |  |  |   | 0.3500 | 
|      | Third Quarter  |      |   | 49.66 |     |  |   | 44.92 |  |  |          | 45.83 |  |  |   | 0.3500 | 
|      | Fourth Quarter |      |   | 49.68 |     |  |   | 43.64 |  |  |          | 48.25 |  |  |   | 0.3500 | 
|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 | 

Dividends




Holders




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Issuer Purchases of Equity Securities


|                                     |       |                     |           |           |                |                        |       |                    |                     |  |                    |           |  |  |           |  | 
|------------------------------------ | ----- | ------------------- | --------- | --------- | -------------- | ---------------------- | ----- | ------------------ | ------------------- |  | ------------------ | --------- |  |  | --------- |  | 
|                                     |       |                     |           |           |                | Total Number of Shares |       |                    | Maximum Number of   | 
|                                     |       |                     |           |           |                | Purchased as Part of   |       |                    | Shares that May Yet | 
|                                     |       | Total Number of     |           |           | Average Price  |                        |       | Publicly Announced |                     |  | Be Purchased Under |          
|                                     |       | Shares Purchased(1) |           |           | Paid Per Share |                        |       | Programs(2)        |                     |  | the Programs(2)    |          
|                                     |       |                     |           |           |                |                        |       |                    |                     |  |                    |          
|October 1, 2005  October 31, 2005   |       |                     |          |           |                |                        |      |                    |                     |  |                   |           |  |  | 4,338,600 | 
|November 1, 2005  November 30, 2005 |       |                     | 1,262,995 |           |                | $                      | 48.54 |                    |                     |  | 1,250,000          |           |  |  | 3,088,600 | 
|December 1, 2005  December 31, 2005 |       |                     | 629       |           |                | $                      | 49.58 |                    |                     |  |                   |           |  |  | 3,088,600 | 
|                                     |       |                     |           |           |                |                        |       |                    |                     |  |                    |          
|                                     | Total |                     |           | 1,263,624 |                |                        | $     | 48.55              |                     |  |                    | 1,250,000 |  |  |           |  | 
|                                     |       |                     |           |           |                |                        |       |                    |                     |  |                    |          






|    |                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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) | In 2003, the Company announced that its Board of Directors
    authorized management to purchase 4.1 million shares
    of the Companys outstanding common stock.                                                                                                                                                                                           






|         |                        
|-------- | -----------------------
|ITEM 6  | SELECTED FINANCIAL DATA



|                          |                                      |                                       |         |            |      |   |         |            |  |   |         |            |  |      |         |            |  |   |         |            | 
|------------------------- | ------------------------------------ | ------------------------------------- | ------- | ---------- | ---- | - | ------- | ---------- |  | - | ------- | ---------- |  | ---- | ------- | ---------- |  | - | ------- | ---------- | 
|                          |                                      | 2005                                  |         |            | 2004 |   |         | 2003       |  |   | 2002    |            |  | 2001 |        
|                          |                                      |                                       |         |            |      |   |         |            |  |   |         |            |  |      |        
|                          |                                      | (In Thousands, Except Per Share Data) |        
|Net interest income       |                                      | $                                     | 968,979 |            |      | $ | 885,325 |            |  | $ | 879,130 |            |  | $    | 901,709 |            |  | $ | 822,491 |           
|Provision for loan losses |                                      |                                       | 117,818 |            |      |   | 105,658 |            |  |   | 119,681 |            |  |      | 136,331 |            |  |   | 106,241 |           
|Net income                |                                      |                                       | 401,830 |            |      |   | 360,185 |            |  |   | 328,678 |            |  |      | 344,345 |            |  |   | 274,332 |           
|Per share data:           |                                      |                                       |         |            |      |   |         |            |  |   |         |            |  |      |         |            |  |   |         |           
|                          | Basic earnings                       |                                       | $       | 3.25       |      |   | $       | 2.95       |  |   | $       | 2.64       |  |      | $       | 2.70       |  |   | $       | 2.16       | 
|                          | Diluted earnings                     |                                       |         | 3.18       |      |   |         | 2.87       |  |   |         | 2.58       |  |      |         | 2.65       |  |   |         | 2.14       | 
|                          | Cash dividends declared              |                                       |         | 1.40       |      |   |         | 1.25       |  |   |         | 1.12       |  |      |         | 1.00       |  |   |         | 0.92       | 
|Balance sheet:            |                                      |                                       |         |            |      |   |         |            |  |   |         |            |  |      |         |            |  |   |         |           
|                          | Average total equity                 |                                       | $       | 2,170,062  |      |   | $       | 1,968,948  |  |   | $       | 1,965,710  |  |      | $       | 1,910,148  |  |   | $       | 1,661,779  | 
|                          | Average assets                       |                                       |         | 29,444,232 |      |   |         | 27,660,628 |  |   |         | 25,142,719 |  |      |         | 23,354,327 |  |   |         | 21,992,587 | 
|                          | Period-end FHLB and other borrowings |                                       |         | 4,111,462  |      |   |         | 4,119,771  |  |   |         | 4,794,935  |  |      |         | 4,853,816  |  |   |         | 3,830,192  | 
|                          | Period-end total equity              |                                       |         | 2,236,029  |      |   |         | 2,056,345  |  |   |         | 1,892,574  |  |      |         | 1,965,383  |  |   |         | 1,719,576  | 
|                          | Period-end assets                    |                                       |         | 30,798,232 |      |   |         | 28,181,916 |  |   |         | 26,963,113 |  |      |         | 23,925,589 |  |   |         | 23,015,000 | 

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|     |                                                     |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |         |      | 
|---- | --------------------------------------------------- | ------------------------------------- | - | ------- | ------- |  | - | ------- | ---- |  | ------- | ------- | ---- |  | - | ------- | ---- | 
|     |                                                     | First                                 |   |         | Second  |  |   | Third   |      |  | Fourth  |        
|     |                                                     | Quarter                               |   |         | Quarter |  |   | Quarter |      |  | Quarter |        
|     |                                                     |                                       |   |         |         |  |   |         |      |  |         |        
|     |                                                     | (In Thousands, Except Per Share Data) |  
|2005 |                                                     |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |        
|     | Total interest income                               |                                       | $ | 347,952 |         |  | $ | 370,172 |      |  | $       | 399,299 |      |  | $ | 427,729 |     
|     | Total interest expense                              |                                       |   | 116,379 |         |  |   | 133,702 |      |  |         | 152,188 |      |  |   | 173,904 |     
|     | Net interest income                                 |                                       |   | 231,573 |         |  |   | 236,470 |      |  |         | 247,111 |      |  |   | 253,825 |     
|     | Provision for loan losses                           |                                       |   | 20,273  |         |  |   | 27,800  |      |  |         | 34,195  |      |  |   | 35,550  |     
|     | Net interest income after provision for loan losses |                                       |   | 211,300 |         |  |   | 208,670 |      |  |         | 212,916 |      |  |   | 218,275 |     
|     | Total noninterest income                            |                                       |   | 149,965 |         |  |   | 175,431 |      |  |         | 166,496 |      |  |   | 166,786 |     
|     | Total noninterest expense                           |                                       |   | 221,872 |         |  |   | 222,595 |      |  |         | 227,396 |      |  |   | 229,940 |     
|     | Income tax expense                                  |                                       |   | 46,409  |         |  |   | 55,518  |      |  |         | 51,296  |      |  |   | 52,983  |     
|     | Net income                                          |                                       |   | 92,984  |         |  |   | 105,988 |      |  |         | 100,720 |      |  |   | 102,138 |     
|     | Per common share:                                   |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |         |     
|     |                                                     | Basic earnings                        |   |         | 0.75    |  |   |         | 0.86 |  |         |         | 0.81 |  |   |         | 0.83 | 
|     |                                                     | Diluted earnings                      |   |         | 0.74    |  |   |         | 0.83 |  |         |         | 0.80 |  |   |         | 0.81 | 
|2004 |                                                     |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |        
|     | Total interest income                               |                                       | $ | 310,679 |         |  | $ | 313,008 |      |  | $       | 316,409 |      |  | $ | 333,430 |     
|     | Total interest expense                              |                                       |   | 94,933  |         |  |   | 93,430  |      |  |         | 96,524  |      |  |   | 103,314 |     
|     | Net interest income                                 |                                       |   | 215,746 |         |  |   | 219,578 |      |  |         | 219,885 |      |  |   | 230,116 |     
|     | Provision for loan losses                           |                                       |   | 24,345  |         |  |   | 28,178  |      |  |         | 25,617  |      |  |   | 27,518  |     
|     | Net interest income after provision for loan losses |                                       |   | 191,401 |         |  |   | 191,400 |      |  |         | 194,268 |      |  |   | 202,598 |     
|     | Total noninterest income                            |                                       |   | 154,465 |         |  |   | 137,659 |      |  |         | 187,187 |      |  |   | 149,332 |     
|     | Total noninterest expense                           |                                       |   | 210,147 |         |  |   | 211,181 |      |  |         | 232,501 |      |  |   | 214,649 |     
|     | Income tax expense                                  |                                       |   | 46,093  |         |  |   | 38,261  |      |  |         | 50,241  |      |  |   | 45,052  |     
|     | Net income                                          |                                       |   | 89,626  |         |  |   | 79,617  |      |  |         | 98,713  |      |  |   | 92,229  |     
|     | Per common share:                                   |                                       |   |         |         |  |   |         |      |  |         |         |      |  |   |         |     
|     |                                                     | Basic earnings                        |   |         | 0.73    |  |   |         | 0.66 |  |         |         | 0.80 |  |   |         | 0.76 | 
|     |                                                     | Diluted earnings                      |   |         | 0.72    |  |   |         | 0.63 |  |         |         | 0.79 |  |   |         | 0.73 | 






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






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

10-K.


Forward-Looking Statements




-13-



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10-K


Critical Accounting Policies




Allowance for Loan Losses:


Derivative Instruments:


-14-



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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




-15-



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Loans






-16-



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Loan Portfolio


|                                |                                        |                          |            |           |            |  |       |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            |  |     |      |      |  |            |           |            |  |     |      |      | 
|------------------------------- | -------------------------------------- | ------------------------ | ---------- | --------- | ---------- |  | ----- | ------ | ------- |  | ---------- | --------- | ---------- | ------- | --- | ---- | -------- |  | ---------- | --------- | ---------- |  | -------- | ------- | ---- | ------ | ---------- | --------- | ---------- |  | --- | ---- | ---- |  | ---------- | --------- | ---------- |  | --- | ---- | ---- | 
|                                |                                        | December 31              |           
|                                |                                        |                          |           
|                                |                                        | 2005                     |            |           | 2004       |  |       | 2003   |         |  | 2002       |           |            | 2001    |    
|                                |                                        |                          |            |           |            |  |       |        |         |  |            |           |            |         |    
|                                |                                        |                          |            | 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 |                          | $          | 3,896,207 |            |  |       | 18.2   | %       |  | $          | 3,750,063 |            |         |     | 19.9 | %        |  | $          | 3,576,115 |            |  |          | 20.6    | %    |        | $          | 3,693,454 |            |  |     | 22.4 | %    |  | $          | 3,697,639 |            |  |     | 27.0 | %   
|                                | Real estate  construction             |                          |            | 4,233,148 |            |  |       | 19.8   |         |  |            | 3,027,228 |            |         |     | 16.1 |          |  |            | 2,481,281 |            |  |          | 14.3    |      |        |            | 2,531,580 |            |  |     | 15.4 |      |  |            | 2,312,591 |            |  |     | 16.9 |     
|                                | Commercial real estate  mortgage      |                          |            | 4,080,164 |            |  |       | 19.1   |         |  |            | 3,943,163 |            |         |     | 20.9 |          |  |            | 3,933,773 |            |  |          | 22.6    |      |        |            | 3,214,712 |            |  |     | 19.5 |      |  |            | 2,417,195 |            |  |     | 17.6 |     
|                                |                                        |                          |            |           |            |  |       |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|                                |                                        | Total commercial loans   |            |           | 12,209,519 |  |       |        | 57.1    |  |            |           | 10,720,454 |         |     |      | 56.9     |  |            |           | 9,991,169  |  |          |         | 57.5 |        |            |           | 9,439,746  |  |     |      | 57.3 |  |            |           | 8,427,425  |  |     |      | 61.5 | 
|Consumer loans:                 |                                        |                          |            |           |            |  |       |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            |  |     |      |      |  |            |           |            |  |     |     
|                                | Residential real estate  mortgage     |                          |            | 1,916,951 |            |  |       | 9.0    |         |  |            | 1,566,370 |            |         |     | 8.3  |          |  |            | 1,653,805 |            |  |          | 9.6     |      |        |            | 1,685,176 |            |  |     | 10.2 |      |  |            | 1,281,090 |            |  |     | 9.4  |     
|                                | Equity lines of credit                 |                          |            | 1,614,608 |            |  |       | 7.6    |         |  |            | 1,401,604 |            |         |     | 7.4  |          |  |            | 1,122,725 |            |  |          | 6.5     |      |        |            | 978,920   |            |  |     | 5.9  |      |  |            | 478,424   |            |  |     | 3.5  |     
|                                | Equity loans                           |                          |            | 1,160,481 |            |  |       | 5.4    |         |  |            | 1,069,614 |            |         |     | 5.7  |          |  |            | 1,046,881 |            |  |          | 6.0     |      |        |            | 1,322,092 |            |  |     | 8.0  |      |  |            | 1,072,437 |            |  |     | 7.8  |     
|                                | Credit card                            |                          |            | 523,148   |            |  |       | 2.4    |         |  |            | 505,090   |            |         |     | 2.7  |          |  |            | 485,487   |            |  |          | 2.8     |      |        |            | 462,252   |            |  |     | 2.8  |      |  |            | 426,644   |            |  |     | 3.1  |     
|                                | Consumer  direct                      |                          |            | 423,278   |            |  |       | 2.0    |         |  |            | 484,657   |            |         |     | 2.5  |          |  |            | 435,326   |            |  |          | 2.5     |      |        |            | 455,976   |            |  |     | 2.8  |      |  |            | 515,093   |            |  |     | 3.7  |     
|                                | Consumer  indirect                    |                          |            | 3,524,230 |            |  |       | 16.5   |         |  |            | 3,109,133 |            |         |     | 16.5 |          |  |            | 2,630,409 |            |  |          | 15.1    |      |        |            | 2,137,158 |            |  |     | 13.0 |      |  |            | 1,506,173 |            |  |     | 11.0 |     
|                                |                                        |                          |            |           |            |  |       |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|                                |                                        | Total consumer
    loans |            |           | 9,162,696  |  |       |        | 42.9    |  |            |           | 8,136,468  |         |     |      | 43.1     |  |            |           | 7,374,633  |  |          |         | 42.5 |        |            |           | 7,041,574  |  |     |      | 42.7 |  |            |           | 5,279,861  |  |     |      | 38.5 | 
|                                |                                        |                          |            |           |            |  |       |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|                                |                                        |                          | 21,372,215 |           |            |  | 100.0 | %      |         |  | 18,856,922 |           |            |         | 100 | %    |          |  | 17,365,802 |           |            |  | 100      | %       |      |        | 16,481,320 |           |            |  | 100 | %    |      |  | 13,707,286 |           |            |  | 100 | %   
|                                |                                        |                          |            |           |            |  |       |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|Less: Allowance for loan losses |                                        |                          | 267,173    |           |            |  |       |        |         |  | 258,339    |           |            |         |     |      |          |  | 244,882    |           |            |  |          |         |      |        | 232,830    |           |            |  |     |      |      |  | 191,393    |           |            |  |     |     
|                                |                                        |                          |            |           |            |  |       |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 
|                                |                                        | Net loans                |            | $         | 21,105,042 |  |       |        |         |  |            | $         | 18,598,583 |         |     |      |          |  |            | $         | 17,120,920 |  |          |         |      |        |            | $         | 16,248,490 |  |     |      |      |  |            | $         | 13,515,893 |  |     |      |      | 
|                                |                                        |                          |            |           |            |  |       |        |         |  |            |           |            |         |     |      |          |  |            |           |            |  |          |         |      |        |            |           |            | 

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 |  | $              | 1,892,462 |                          |                        | $ | 1,525,297 |       |  | $ | 478,448 |  |          | $    | 3,896,207 |             |      | $ | 441,343 |  |  | $ | 1,566,402 | 
|Real estate construction               |  |                | 2,034,438 |                          |                        |   | 2,011,946 |       |  |   | 186,764 |  |          |      | 4,233,148 |             |      |   | 157,243 |  |  |   | 2,041,467 | 
|                                       |  |                |           |                          |                        |   |           |       |  |   |         |  |          |      |           |             |      |  
|                                       |  | $              | 3,926,900 |                          |                        | $ | 3,537,243 |       |  | $ | 665,212 |  |          | $    | 8,129,355 |             |      | $ | 598,586 |  |  | $ | 3,603,869 | 
|                                       |  |                |           |                          |                        |   |           |       |  |   |         |  |          |      |           |             |      |  



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##### Table of Contents



Managed Loan Portfolio


|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |       |   |           |            |            |  |      |      |       |  
|----------------- | -------------------------------------- | ---------------------- | ------------------- | --------- | ---------- | ---------- |  | ------ | -------- | ----- | ----- | --------- | ---------- | ---------- |  | ---- | ----- | ----- | - | --------- | ---------- | ---------- |  | ---- | ---- | ----- | -
|                  |                                        | December 31            |                    
|                  |                                        |                        |                    
|                  |                                        | 2005                   |                     |           | 2004       |            |  | 2003   |         
|                  |                                        |                        |                     |           |            |            |  |        |         
|                  |                                        |                        |                     | 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 |                        | $                   | 3,910,405 |            |            |  | 17.3   | %        |       | $     | 3,890,866 |            |            |  | 19.0 | %     |       | $ | 3,728,172 |            |            |  | 19.7 | %   
|                  | Real estate  construction             |                        |                     | 4,233,148 |            |            |  | 18.7   |          |       |       | 3,027,228 |            |            |  | 14.8 |       |       |   | 2,481,281 |            |            |  | 13.2 |     
|                  | Commercial real estate  mortgage      |                        |                     | 4,202,966 |            |            |  | 18.6   |          |       |       | 3,943,163 |            |            |  | 19.3 |       |       |   | 3,933,773 |            |            |  | 20.8 |     
|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |      
|                  |                                        | Total commercial loans |                     |           | 12,346,519 |            |  |        | 54.6     |       |       |           | 10,861,257 |            |  |      | 53.1  |       |   |           | 10,143,226 |            |  |      | 53.7 |      
|Consumer loans:   |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |       |   |           |            |            |  |     
|                  | Residential real estate  mortgage     |                        |                     | 2,786,051 |            |            |  | 12.3   |          |       |       | 2,688,768 |            |            |  | 13.1 |       |       |   | 2,514,169 |            |            |  | 13.3 |     
|                  | Equity lines of credit                 |                        |                     | 1,614,608 |            |            |  | 7.2    |          |       |       | 1,401,604 |            |            |  | 6.9  |       |       |   | 1,122,725 |            |            |  | 5.9  |     
|                  | Equity loans                           |                        |                     | 1,382,565 |            |            |  | 6.1    |          |       |       | 1,391,668 |            |            |  | 6.8  |       |       |   | 1,546,894 |            |            |  | 8.2  |     
|                  | Credit card                            |                        |                     | 523,148   |            |            |  | 2.3    |          |       |       | 505,090   |            |            |  | 2.5  |       |       |   | 485,487   |            |            |  | 2.6  |     
|                  | Consumer  direct                      |                        |                     | 423,278   |            |            |  | 1.9    |          |       |       | 484,657   |            |            |  | 2.4  |       |       |   | 435,326   |            |            |  | 2.3  |     
|                  | Consumer  indirect                    |                        |                     | 3,524,230 |            |            |  | 15.6   |          |       |       | 3,109,133 |            |            |  | 15.2 |       |       |   | 2,630,409 |            |            |  | 14.0 |     
|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |      
|                  |                                        | Total consumer loans   |                     |           | 10,253,880 |            |  |        | 45.4     |       |       |           | 9,580,920  |            |  |      | 46.9  |       |   |           | 8,735,010  |            |  |      | 46.3 |      
|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |      
|                  |                                        |                        | Total managed loans |           | $          | 22,600,399 |  |        |          | 100.0 | %     |           | $          | 20,442,177 |  |      |       | 100.0 | % |           | $          | 18,878,236 |  |      |      | 100.0 | %
|                  |                                        |                        |                     |           |            |            |  |        |          |       |       |           |            |            |  |      |       |      

Investment Securities




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##### Table of Contents











-19-



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##### Table of Contents





Investment Securities Held to Maturity and Available for
Sale


|                                          |                                             |                            |            |         |           |           |           |           |           |           |           |           |           |           | 
|----------------------------------------- | ------------------------------------------- | -------------------------- | ---------- | ------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | --------- | 
|                                          |                                             | December 31                |           
|                                          |                                             |                            |           
|                                          |                                             | 2005                       |            |         | 2004      |           |           | 2003      |          
|                                          |                                             |                            |            |         |           |           |           |           |          
|                                          |                                             | (In Thousands)             |           
|Investment securities held to maturity:   |                                             |                            |            |         |           |           |           |           |           |           |           |          
|                                          | U.S. Government agencies and corporations   |                            | $          | 39,275  |           |           | $         | 60,860    |           |           | $         | 72,696    |          
|                                          | Mortgage-backed pass-through securities     |                            |            | 932,785 |           |           |           | 1,125,080 |           |           |           | 1,362,745 |          
|                                          | Collateralized mortgage obligations:        |                            |            |         |           |           |           |           |           |           |           |           |          
|                                          |                                             |                            | Agency     |         |           | 443,796   |           |           |           | 455,191   |           |           |           | 466,956   | 
|                                          |                                             |                            | Non-agency |         |           | 521,570   |           |           |           | 712,096   |           |           |           | 416,669   | 
|                                          | Asset-backed securities                     |                            |            | 219,583 |           |           |           | 320,058   |           |           |           | 510,892   |          
|                                          | States and political subdivisions           |                            |            | 88,933  |           |           |           | 93,714    |           |           |           | 105,886   |          
|                                          | Other                                       |                            |            |        |           |           |           | 100       |           |           |           | 500       |          
|                                          |                                             |                            |            |         |           |           |           |           |          
|                                          |                                             |                            | 2,245,942  |         |           |           | 2,767,099 |           |           |           | 2,936,344 |          
|                                          |                                             |                            |            |         |           |           |           |           |          
|Investment securities available for sale: |                                             |                            |            |         |           |           |           |           |           |           |           |          
|                                          | U.S. Treasury                               |                            |            | 47,956  |           |           |           | 38,886    |           |           |           | 40,650    |          
|                                          | U.S. Government agencies and corporations   |                            |            | 639     |           |           |           | 666       |           |           |           | 792       |          
|                                          | Mortgage-backed pass-through securities     |                            |            | 537,288 |           |           |           | 499,525   |           |           |           | 796,688   |          
|                                          | Collateralized mortgage obligations:        |                            |            |         |           |           |           |           |           |           |           |           |          
|                                          |                                             |                            | Agency     |         |           | 3,505,754 |           |           |           | 3,530,987 |           |           |           | 2,972,164 | 
|                                          |                                             |                            | Non-agency |         |           | 234,214   |           |           |           | 2,189     |           |           |           | 94,919    | 
|                                          | Asset-backed securities and corporate bonds |                            |            |        |           |           |           | 1,039     |           |           |           | 3,638     |          
|                                          | States and political subdivisions           |                            |            | 45,331  |           |           |           | 11,943    |           |           |           | 11,007    |          
|                                          | Other                                       |                            |            | 414,051 |           |           |           | 325,379   |           |           |           | 399,292   |          
|                                          |                                             |                            |            |         |           |           |           |           |          
|                                          |                                             |                            | 4,785,233  |         |           |           | 4,410,614 |           |           |           | 4,319,150 |          
|                                          |                                             | Net unrealized gain (loss) |            |         | (80,858   | )         |           |           | (12,430   | )         |           |           | 56,058    |          
|                                          |                                             |                            |            |         |           |           |           |           |          
|                                          |                                             |                            | 4,704,375  |         |           |           | 4,398,184 |           |           |           | 4,375,208 |          
|                                          |                                             |                            |            |         |           |           |           |           |          
|                                          |                                             | Total                      |            | $       | 6,950,317 |           |           | $         | 7,165,283 |           |           | $         | 7,311,552 |          
|                                          |                                             |                            |            |         |           |           |           |           |          

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##### Table of Contents





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   |                | $       |        |                   |  |      |                 | %    |  | $         | 39,245    |           |        |      | 6.27 | %     |  | $       | 30      |         |  |       | 5.04 | %    |  | $      |       |        |  |      |     | %   
|Mortgage-backed pass-through securities                        |                                             |                | 3,306   |         |                   |  | 6.40 |                  |      |  | 709,848   |           |           |        | 4.26 |      |       |  | 213,606 |         |         |  | 5.48  |      |      |  | 6,025  |        |        |  | 6.89 |     
|                                                               | Collateralized mortgage obligations         |                |         | 11      |                   |  |      | 6.53             |      |  |           | 949,682   |           |        |      | 4.65 |       |  |         | 15,673  |         |  |       | 5.86 |      |  |        |       |        |  |      |     |     
|                                                               | Asset-backed securities                     |                |         |        |                   |  |      |                 |      |  |           | 219,583   |           |        |      | 4.96 |       |  |         |        |         |  |       |     |      |  |        |       |        |  |      |     |     
|                                                               | States and political subdivisions           |                |         | 3,945   |                   |  |      | 9.55             |      |  |           | 23,964    |           |        |      | 7.92 |       |  |         | 15,006  |         |  |       | 7.37 |      |  |        | 46,018 |        |  |      | 7.61 |     
|                                                               | Other                                       |                |         |        |                   |  |      |                 |      |  |           |          |           |        |      |     |       |  |         |        |         |  |       |     |      |  |        |       |        |  |      |     |     
|                                                               |                                             |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |      |       |  |         |         |         |  |       |     
|                                                               |                                             |                | 7,262   |         |                   |  | 8.13 |                  |      |  | 1,942,322 |           |           |        | 4.61 |      |       |  | 244,315 |         |         |  | 5.61  |      |      |  | 52,043 |        |        |  | 7.53 |     
|                                                               |                                             |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |      |       |  |         |         |         |  |       |     
|Investment securities available for sale  amortized
    cost: |                                             |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |      |       |  |         |         |         |  |       |      |      |  |        |        |        |  |      |     
|                                                               | U.S. Treasury                               |                |         | 38,096  |                   |  |      | 3.49             |      |  |           | 9,860     |           |        |      | 3.65 |       |  |         |        |         |  |       |     |      |  |        |       |        |  |      |     |     
|                                                               | U.S. Government agencies and corporations   |                |         |        |                   |  |      |                 |      |  |           | 56        |           |        |      | 4.36 |       |  |         | 27      |         |  |       | 5.16 |      |  |        | 556    |        |  |      | 6.45 |     
|                                                               | Mortgage-backed pass-through securities     |                |         | 69      |                   |  |      | 7.46             |      |  |           | 488,506   |           |        |      | 4.43 |       |  |         | 45,116  |         |  |       | 5.46 |      |  |        | 3,597  |        |  |      | 5.79 |     
|                                                               | Collateralized mortgage obligations         |                |         | 156,165 |                   |  |      | 3.41             |      |  |           | 3,154,463 |           |        |      | 4.06 |       |  |         | 429,340 |         |  |       | 5.34 |      |  |        |       |        |  |      |     |     
|                                                               | Asset-backed securities and corporate bonds |                |         |        |                   |  |      |                 |      |  |           |          |           |        |      |     |       |  |         |        |         |  |       |     |      |  |        |       |        |  |      |     |     
|                                                               | States and political subdivisions           |                |         | 1,834   |                   |  |      | 7.07             |      |  |           | 2,388     |           |        |      | 6.93 |       |  |         | 31,832  |         |  |       | 5.20 |      |  |        | 9,277  |        |  |      | 7.56 |     
|                                                               | Other                                       |                |         | 354,546 |                   |  |      | 4.34             |      |  |           | 28,802    |           |        |      | 9.48 |       |  |         |        |         |  |       |     |      |  |        | 30,703 |        |  |      | 9.15 |     
|                                                               |                                             |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |      |       |  |         |         |         |  |       |     
|                                                               |                                             |                | 550,710 |         |                   |  | 4.02 |                  |      |  | 3,684,075 |           |           |        | 4.15 |      |       |  | 506,315 |         |         |  | 5.33  |      |      |  | 44,133 |        |        |  | 8.51 |     
|                                                               |                                             |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |      |       |  |         |         |         |  |       |     
|                                                               |                                             | Total          |         | $       | 557,972           |  |      |                  | 4.08 |  |           | $         | 5,626,397 |        |      |      | 4.31  |  |         | $       | 750,630 |  |       |      | 5.43 |  |        | $      | 96,176 |  |      |      | 7.98 | 
|                                                               |                                             |                |         |         |                   |  |      |                  |      |  |           |           |           |        |      |      |       |  |         |         |         |  |       |     





-21-



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##### Table of Contents







Trading Account Assets and Liabilities






-22-



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##### Table of Contents





Trading Account Assets and Liabilities


|                             |                                         |                                      |                                   |        |        |        |   |        |        |        | 
|---------------------------- | --------------------------------------- | ------------------------------------ | --------------------------------- | ------ | ------ | ------ | - | ------ | ------ | ------ | 
|                             |                                         | December 31                          |                                  
|                             |                                         |                                      |                                  
|                             |                                         | 2005                                 |                                   |        | 2004   |       
|                             |                                         |                                      |                                   |        |        |       
|                             |                                         | (In Thousands)                       |                                  
|Trading account assets:      |                                         |                                      |                                   |        |        |        |   |       
|                             | U.S. Treasury and Government agencies   |                                      | $                                 | 7,285  |        |        | $ | 6,651  |       
|                             | States and political subdivisions       |                                      |                                   | 3,376  |        |        |   | 2,834  |       
|                             | Mortgage-backed pass-through securities |                                      |                                   | 6,951  |        |        |   | 8,060  |       
|                             | Collateralized mortgage obligations     |                                      |                                   | 8,767  |        |        |   | 4,180  |       
|                             | Other debt securities                   |                                      |                                   | 1,406  |        |        |   |       |       
|                             | Interest rate floors, caps and swaps    |                                      |                                   | 48,774 |        |        |   | 56,092 |       
|                             |                                         |                                      |                                   |        |        |       
|                             |                                         |                                      | Total trading account assets      |        | $      | 76,559 |   |        | $      | 77,817 | 
|                             |                                         |                                      |                                   |        |        |       
|Trading account liabilities: |                                         |                                      |                                   |        |        |        |   |       
|                             |                                         | Short sales                          |                                   | $      | 4,861  |        |   | $      | 2,956  |       
|                             |                                         | Interest rate floors, caps and swaps |                                   |        | 25,401 |        |   |        | 23,746 |       
|                             |                                         |                                      |                                   |        |        |       
|                             |                                         |                                      | Total trading account liabilities |        | $      | 30,262 |   |        | $      | 26,702 | 
|                             |                                         |                                      |                                   |        |        |       



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##### Table of Contents



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           |  | $              | 1,232,940 |  |            | $ | 656,624 |       |  | $ | 1,889,564 | 
|Over three through six months  |  |                | 639,265   |  |            |   |        |       |  |   | 639,265   | 
|Over six through twelve months |  |                | 834,983   |  |            |   |        |       |  |   | 834,983   | 
|Over twelve months             |  |                | 924,199   |  |            |   |        |       |  |   | 924,199   | 
|                               |  |                |           |  |            |   |         |       | 
|                               |  | $              | 3,631,387 |  |            | $ | 656,624 |       |  | $ | 4,288,011 | 
|                               |  |                |           |  |            |   |         |       | 



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##### Table of Contents





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)         |          
|2005 |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |           |           |  |  |  |     
|     | Federal funds purchased                        |                        | $         | 4,542,326 |         |   | $         | 3,845,028 |  |  |         | 3.23     | % |          | $         | 2,802,536 |  |  |  | 4.04 | %
|     | Securities sold under agreements to repurchase |                        |           | 365,508   |         |   |           | 330,813   |  |  |         | 2.89     |   |          |           | 300,036   |  |  |  | 3.82 |  
|     | Short sales                                    |                        |           | 6,979     |         |   |           | 2,828     |  |  |         | 3.51     |   |          |           | 4,861     |  |  |  | 3.33 |  
|     | Commercial paper                               |                        |           | 128,119   |         |   |           | 114,043   |  |  |         | 2.15     |   |          |           | 76,764    |  |  |  | 3.39 |  
|     | Other short-term borrowings                    |                        |           | 571,125   |         |   |           | 66,040    |  |  |         | 3.69     |   |          |           | 571,125   |  |  |  | 3.98 |  
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          
|     |                                                | $                      | 5,614,057 |           |         | $ | 4,358,752 |           |  |  |         |          |   | $        | 3,755,322 |           |  |  |  |     
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          
|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 |           |  |  |  |     
|     |                                                |                        |           |           |         |   |           |           |  |  |         |          |   |          |          

Liquidity Management


day-to


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##### Table of Contents















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*         |  | $                      | 4,111,462  |           |        | $ | 600,186   |             |           | $ | 810,588     |  |  | $       | 1,093,282 |  |  | $ | 1,607,406 | 
|Capital lease obligations          |  |                        | 3,208      |           |        |   | 121       |             |           |   | 252         |  |  |         | 267       |  |  |   | 2,568     | 
|Operating leases                   |  |                        | 161,771    |           |        |   | 20,678    |             |           |   | 36,939      |  |  |         | 27,631    |  |  |   | 76,523    | 
|Unconditional purchase obligations |  |                        |           |           |        |   |          |             |           |   |            |  |  |         |          |  |  |   |          | 
|Certificates of deposit            |  |                        | 5,856,398  |           |        |   | 3,545,141 |             |           |   | 1,599,631   |  |  |         | 611,424   |  |  |   | 100,202   | 
|Other time deposits                |  |                        | 656,624    |           |        |   | 656,624   |             |           |   |            |  |  |         |          |  |  |   |          | 
|Other long-term obligations        |  |                        |           |           |        |   |          |             |           |   |            |  |  |         |          |  |  |   |          | 
|                                   |  |                        |            |           |        |   |           |             |           |   |             |  |  |         |          
|                                   |  | $                      | 10,789,463 |           |        | $ | 4,822,750 |             |           | $ | 2,447,410   |  |  | $       | 1,732,604 |  |  | $ | 1,786,699 | 
|                                   |  |                        |            |           |        |   |           |             |           |   |             |  |  |         |          






|  |                                                                                                                                                                                                                                                             
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | 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.

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##### Table of Contents



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                              |  | $                      | 11,498,497 |           |        | $ | 6,864,652 |             |           | $ | 3,249,522   |  |  | $       | 987,436   |  |  | $ | 396,887 | 
|Standby and commercial letters of credit     |  |                        | 942,167    |           |        |   | 130,024   |             |           |   | 243,863     |  |  |         | 437,254   |  |  |   | 131,026 | 
|Other contingent liabilities and commitments |  |                        |           |           |        |   |          |             |           |   |            |  |  |         |          |  |  |   |        | 
|                                             |  |                        |            |           |        |   |           |             |           |   |             |  |  |         |          
|                                             |  | $                      | 12,440,664 |           |        | $ | 6,994,676 |             |           | $ | 3,493,385   |  |  | $       | 1,424,690 |  |  | $ | 527,913 | 
|                                             |  |                        |            |           |        |   |           |             |           |   |             |  |  |         |          

Interest Rate Sensitivity Management








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##### Table of Contents



Net Interest Income Sensitivity


|                                      |                  |                     |            |            |                            |  |        |              |    |  |       |       |  
|------------------------------------- | ---------------- | ------------------- | ---------- | ---------- | -------------------------- |  | ------ | ------------ | -- |  | ----- | ----- | -
|                                      |                  |                     |            | Percentage |                           
|                                      |                  | Principal           |            |            | Increase/(Decrease)        | 
|                                      |                  | Amount of Earning   |            |            | in Interest Income/Expense | 
|                                      |                  | Assets, Interest    |            |            |                            | 
|                                      |                  | Bearing Liabilities |            |            | Down 100                   |  |        | Up 100       |   
|                                      |                  | and Swaps           |            |            | Basis Points               |  |        | Basis Points |   
|                                      |                  |                     |            |            |                            |  |        |              |   
|                                      |                  | (In Thousands)      |            |            |                            |  |       
|December 31, 2005:                    |                  |                     |            |            |                            |  |        |              |    |  |       |      
|Assets which reprice in:*             |                  |                     |            |            |                            |  |        |              |    |  |       |      
|                                      | One year or less |                     | $          | 14,557,658 |                            |  |        | (7.48        | )% |  |       | 7.59  | %
|                                      | Over one year    |                     |            | 13,839,052 |                            |  |        | (2.16        | )  |  |       | 1.46  |  
|                                      |                  |                     |            |            |                            |  |        |              |   
|                                      |                  | $                   | 28,396,710 |            |                            |  | (5.19  | )            |    |  | 4.96  |      
|                                      |                  |                     |            |            |                            |  |        |              |   
|                                     
|Liabilities which reprice in:         |                  |                     |            |            |                            |  |        |              |    |  |       |      
|                                      | One year or less |                     | $          | 17,488,014 |                            |  |        | (11.64       | )% |  |       | 15.11 | %
|                                      | Over one year    |                     |            | 4,665,004  |                            |  |        | (0.82        | )  |  |       | 2.17  |  
|                                      |                  |                     |            |            |                            |  |        |              |   
|                                      |                  | $                   | 22,153,018 |            |                            |  | (8.24  | )            |    |  | 11.04 |      
|                                      |                  |                     |            |            |                            |  |        |              |   
|Total net interest income sensitivity |                  |                     |            |            |                            |  | (3.01  | )%           |    |  | 0.59  | %    
|December 31, 2004:**                  |                  |                     |            |            |                            |  |        |              |    |  |       |      
|Assets which reprice in:*             |                  |                     |            |            |                            |  |        |              |    |  |       |      
|                                      | One year or less |                     | $          | 12,480,418 |                            |  |        | (8.94        | )% |  |       | 9.23  | %
|                                      | Over one year    |                     |            | 13,610,460 |                            |  |        | (2.81        | )  |  |       | 2.40  |  
|                                      |                  |                     |            |            |                            |  |        |              |   
|                                      |                  | $                   | 26,090,878 |            |                            |  | (5.83  | )            |    |  | 5.77  |      
|                                      |                  |                     |            |            |                            |  |        |              |   
|Liabilities which reprice in:         |                  |                     |            |            |                            |  |        |              |    |  |       |      
|                                      | One year or less |                     | $          | 16,491,092 |                            |  |        | (24.19       | )% |  |       | 27.69 | %
|                                      | Over one year    |                     |            | 3,920,666  |                            |  |        | (1.15        | )  |  |       | 1.33  |  
|                                      |                  |                     |            |            |                            |  |        |              |   
|                                      |                  | $                   | 20,411,758 |            |                            |  | (15.16 | )            |    |  | 17.36 |      
|                                      |                  |                     |            |            |                            |  |        |              |   
|Total net interest income sensitivity |                  |                     |            |            |                            |  | (1.26  | )%           |    |  | 0.10  | %    






|  |                                                    
|- | ---------------------------------------------------
|* | Excludes noninterest earning trading account assets



|   |                                                                                                           
|-- | ----------------------------------------------------------------------------------------------------------
|** | Includes projected settlements related to economic hedges
    included in the trading derivative portfolio





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##### Table of Contents





Capital Resources












Return on Equity and Assets


|                                                            |  |             |       |   |      |  |       |      |  |  |       |  
|----------------------------------------------------------- |  | ----------- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                                                            |  | December 31 |      
|                                                            |  |             |      
|                                                            |  | 2005        |       |   | 2004 |  |       | 2003 | 
|                                                            |  |             |       |   |      |  |       |      | 
|Return on average assets                                    |  |             | 1.36  | % |      |  | 1.30  | %    |  |  | 1.31  | %
|Return on average equity                                    |  |             | 18.52 |   |      |  | 18.29 |      |  |  | 16.72 |  
|Dividend payout ratio                                       |  |             | 44.03 |   |      |  | 43.55 |      |  |  | 43.41 |  
|Average common shareholders equity to average assets ratio |  |             | 7.37  |   |      |  | 7.12  |      |  |  | 7.82  |  



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##### Table of Contents











Capital Ratios


|                    |                                            |                |   |            |      |  |   |            |  
|------------------- | ------------------------------------------ | -------------- | - | ---------- | ---- |  | - | ---------- | -
|                    |                                            | December 31    |  
|                    |                                            |                |  
|                    |                                            | 2005           |   |            | 2004 | 
|                    |                                            |                |   |            |      | 
|                    |                                            | (In Thousands) |  
|Risk-based capital: |                                            |                |   |            |      |  |   |           
|                    | Tier I Capital                             |                | $ | 2,313,682  |      |  | $ | 2,099,593  |  
|                    | Tangible Tier I Capital                    |                |   | 2,304,269  |      |  |   | 2,089,013  |  
|                    | Total Qualifying Capital                   |                |   | 3,038,507  |      |  |   | 2,566,507  |  
|Assets:             |                                            |                |   |            |      |  |   |           
|                    | Net risk-adjusted assets                   |                | $ | 26,460,438 |      |  | $ | 22,975,381 |  
|                    | Adjusted quarterly average assets          |                |   | 30,055,681 |      |  |   | 27,794,720 |  
|                    | Adjusted tangible quarterly average assets |                |   | 30,046,268 |      |  |   | 27,784,140 |  
|Ratios:             |                                            |                |   |            |      |  |   |           
|                    | Tier I Capital                             |                |   | 8.74       | %    |  |   | 9.14       | %
|                    | Total Qualifying Capital                   |                |   | 11.48      |      |  |   | 11.17      |  
|                    | Leverage                                   |                |   | 7.70       |      |  |   | 7.55       |  
|                    | Tangible leverage                          |                |   | 7.67       |      |  |   | 7.52       |  



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##### Table of Contents



Off-Balance Sheet Activities




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







Results of Operations


Net Interest Income






-31-



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##### Table of Contents

















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##### Table of Contents







|                                                           |  |                        |        |  |          |   |       |               |  |   |              |  |  |       |       |  |  |   |        | 
|---------------------------------------------------------- |  | ---------------------- | ------ |  | -------- | - | ----- | ------------- |  | - | ------------ |  |  | ----- | ----- |  |  | - | ------ | 
|                                                           |  | 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 |  | $                      | 11,240 |  |          | $ | 7,471 |               |  | $ | 6,019        |  |  | $     | 4,101 |  |  | $ | 28,831 | 
|                                                           |  |                        |        |  |          |   |       |               |  |   |              |  |  |       |      

|                                                           |  |                        |       |  |          |   |       |               |  |   |              |  |  |       |       |  |  |   |       | 
|---------------------------------------------------------- |  | ---------------------- | ----- |  | -------- | - | ----- | ------------- |  | - | ------------ |  |  | ----- | ----- |  |  | - | ----- | 
|                                                           |  | For the Quarter Ending |       |  |         
|                                                           |  |                        |       |  |         
|                                                           |  | March 31,              |       |  | June 30, |   |       | September 30, |  |   | December 31, |  |  |      
|                                                           |  | 2005                   |       |  | 2005     |   |       | 2005          |  |   | 2005         |  |  |      
|                                                           |  | Actual                 |       |  | Actual   |   |       | Actual        |  |   | Actual       |  |  | Total |      
|                                                           |  |                        |       |  |          |   |       |               |  |   |              |  |  |       |      
|                                                           |  | (In Thousands)         |       |  |         
|Hedging derivatives positive impact to net interest margin |  | $                      | 2,167 |  |          | $ | 2,394 |               |  | $ | 1,684        |  |  | $     | 1,013 |  |  | $ | 7,258 | 
|                                                           |  |                        |       |  |          |   |       |               |  |   |              |  |  |       |      

|                                                           |  |                        |       |  |            |   |       |               |  |   |              |  |  |            |       |  |  |   |        | 
|---------------------------------------------------------- |  | ---------------------- | ----- |  | ---------- | - | ----- | ------------- |  | - | ------------ |  |  | ---------- | ----- |  |  | - | ------ | 
|                                                           |  | For the Quarter Ending |       |  |           
|                                                           |  |                        |       |  |           
|                                                           |  | March 31,              |       |  | June 30,   |   |       | September 30, |  |   | December 31, |  |  |           
|                                                           |  | 2006                   |       |  | 2006       |   |       | 2006          |  |   | 2006         |  |  | Total      |      
|                                                           |  | Projected*             |       |  | Projected* |   |       | Projected*    |  |   | Projected*   |  |  | Projected* |      
|                                                           |  |                        |       |  |            |   |       |               |  |   |              |  |  |            |      
|                                                           |  | (In Thousands)         |       |  |           
|Hedging derivatives positive impact to net interest margin |  | $                      | 2,183 |  |            | $ | 2,642 |               |  | $ | 3,489        |  |  | $          | 3,519 |  |  | $ | 11,833 | 
|                                                           |  |                        |       |  |            |   |       |               |  |   |              |  |  |            |      






|  |                                                                              
|- | -----------------------------------------------------------------------------
|* | Projected impact based on current interest rates as of
    December 31, 2005.



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|                                     |                                                |                                |   |         |      |  |   |         |   |  |            |   |   |  |   |         |  
|------------------------------------ | ---------------------------------------------- | ------------------------------ | - | ------- | ---- |  | - | ------- | - |  | ---------- | - | - |  | - | ------- | -
|                                     |                                                | For the Year Ended December 31 |  
|                                     |                                                |                                |  
|                                     |                                                | 2006                           |   |         | 2007 |  |   | 2008    |   |  | Thereafter |  
|                                     |                                                |                                |   |         |      |  |   |         |   |  |            |  
|                                     |                                                | (In Thousands)                 |  
|Non-trading interest rate contracts: |                                                |                                |   |         |      |  |   |         |   |  |            |   |   |  |   |        
|Cash Flow Hedges:                    |                                                |                                |   |         |      |  |   |         |   |  |            |   |   |  |   |        
|                                     | Notional maturity                              |                                | $ | 400,000 |      |  | $ |        |   |  | $          |  |   |  | $ |        |  
|                                     | Weighted average coupon received on maturities |                                |   | 3.24    | %    |  |   |        | % |  |            |  | % |  |   |        | %
|                                     | Weighted average time to maturity (months)     |                                |   | 6       |      |  |   |        |   |  |            |  |   |  |   |        |  
|Fair Value Hedges:                   |                                                |                                |   |         |      |  |   |         |   |  |            |   |   |  |   |        
|                                     | Notional maturity                              |                                | $ | 82,000  |      |  | $ | 323,500 |   |  | $          |  |   |  | $ | 652,608 |  
|                                     | Weighted average coupon received on maturities |                                |   | 4.63    | %    |  |   | 7.55    | % |  |            |  | % |  |   | 5.93    | %
|                                     | Weighted average time to maturity (months)     |                                |   | 5       |      |  |   | 14      |   |  |            |  |   |  |   | 103     |  





|                                          |  |             |      |   |      |  |      |      |  |  |      |  
|----------------------------------------- |  | ----------- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                          |  | December 31 |     
|                                          |  |             |     
|                                          |  | 2005        |      |   | 2004 |  |      | 2003 | 
|                                          |  |             |      |   |      |  |      |      | 
|Rate earned on interest earning assets    |  |             | 5.70 | % |      |  | 5.02 | %    |  |  | 5.58 | %
|Rate paid on interest bearing liabilities |  |             | 2.71 |   |      |  | 1.90 |      |  |  | 2.14 |  
|Interest rate spread                      |  |             | 2.99 |   |      |  | 3.12 |      |  |  | 3.44 |  
|Net yield on earning assets               |  |             | 3.58 |   |      |  | 3.49 |      |  |  | 3.85 |  

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##### Table of Contents







-35-



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##### Table of Contents



Consolidated Average Balance Sheets and Rate/ Volume
Variances




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



|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            |  |   |         |           |  |  |      |      | 
|---------------------------------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------------------ | --------- | ---------- | ---------- |  | - | --------- | --------- |  | ------- | ---- | ---- | ------- | --------- | ---------- | ---------- |  | - | ------- | --------- |  |  | ---- | ---- | 
|                                                                       |                                                                        | Year Ended December 31                     |          
|                                                                       |                                                                        |                                            |          
|                                                                       |                                                                        | 2005                                       |           |            | 2004       | 
|                                                                       |                                                                        |                                            |           |            |            | 
|                                                                       |                                                                        | Average                                    |           |            | Income/    |  |   | Yield/    |           |  | Average |      |      | Income/ |           |            | Yield/     | 
|Yield/Rate Analysis                                                    |                                                                        | Balance                                    |           |            | Expense    |  |   | Rate      |           |  | Balance |      |      | Expense |           |            | Rate       | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|ASSETS                                                                
|Earning assets:                                                        |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            |  |   |         |           |  |  |     
|                                                                       | Loans [a]                                                              |                                            | $         | 20,049,588 |            |  | $ | 1,236,153 |           |  |         | 6.17 | %    |         | $         | 17,999,355 |            |  | $ | 950,925 |           |  |  | 5.28 | %   
|                                                                       | Investment securities available for sale [b]                           |                                            |           | 4,570,904  |            |  |   | 189,333   |           |  |         | 4.14 |      |         |           | 4,401,132  |            |  |   | 181,234 |           |  |  | 4.12 |     
|                                                                       | Investment securities held to maturity                                 |                                            |           | 2,509,642  |            |  |   | 121,405   |           |  |         | 4.84 |      |         |           | 2,996,342  |            |  |   | 143,637 |           |  |  | 4.79 |     
|                                                                       | Other [c]                                                              |                                            |           | 61,410     |            |  |   | 2,347     |           |  |         | 3.82 |      |         |           | 60,491     |            |  |   | 1,306   |           |  |  | 2.16 |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total earning assets                       |           |            | 27,191,544 |  |   |           | 1,549,238 |  |         |      | 5.70 |         |           |            | 25,457,320 |  |   |         | 1,277,102 |  |  |      | 5.02 | 
|Allowance for loan losses                                              |                                                                        |                                            | (257,919  | )          |            |  |   |           |           |  |         |      |      |         | (251,713  | )          |            |  |   |         |           |  |  |     
|Unrealized gain (loss) on investment securities available for
    sale |                                                                        |                                            | (49,453   | )          |            |  |   |           |           |  |         |      |      |         | 24,865    |            |            |  |   |         |           |  |  |     
|Cash and due from banks                                                |                                                                        |                                            | 746,393   |            |            |  |   |           |           |  |         |      |      |         | 675,339   |            |            |  |   |         |           |  |  |     
|Other assets                                                           |                                                                        |                                            | 1,813,667 |            |            |  |   |           |           |  |         |      |      |         | 1,754,817 |            |            |  |   |         |           |  |  |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total assets                               |           | $          | 29,444,232 |  |   |           |           |  |         |      |      |         |           | $          | 27,660,628 |  |   |         |           |  |  |      |      | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                      
|LIABILITIES AND SHAREHOLDERS EQUITY                                  
|Interest bearing liabilities:                                          |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            |  |   |         |           |  |  |     
|                                                                       | Interest bearing demand deposits                                       |                                            | $         | 211,655    |            |  |   | 1,529     |           |  |         | 0.72 |      |         | $         | 60,211     |            |  |   | 1,134   |           |  |  | 1.88 |     
|                                                                       | Savings deposits                                                       |                                            |           | 7,185,061  |            |  |   | 72,657    |           |  |         | 1.01 |      |         |           | 7,570,719  |            |  |   | 46,555  |           |  |  | 0.61 |     
|                                                                       | Certificates of deposit less than $100,000 and other time
    deposits |                                            |           | 2,542,086  |            |  |   | 88,495    |           |  |         | 3.48 |      |         |           | 2,004,181  |            |  |   | 63,321  |           |  |  | 3.16 |     
|                                                                       | Certificates of deposit of $100,000 or more                            |                                            |           | 2,826,672  |            |  |   | 98,298    |           |  |         | 3.48 |      |         |           | 1,779,343  |            |  |   | 48,768  |           |  |  | 2.74 |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                       | Total interest bearing deposits                                        |                                            |           | 12,765,474 |            |  |   | 260,979   |           |  |         | 2.04 |      |         |           | 11,414,454 |            |  |   | 159,778 |           |  |  | 1.40 |     
|                                                                       | Federal funds purchased                                                |                                            |           | 3,845,028  |            |  |   | 124,019   |           |  |         | 3.23 |      |         |           | 3,906,691  |            |  |   | 53,729  |           |  |  | 1.38 |     
|                                                                       | Securities sold under agreements to repurchase                         |                                            |           | 330,813    |            |  |   | 9,576     |           |  |         | 2.89 |      |         |           | 371,444    |            |  |   | 3,934   |           |  |  | 1.06 |     
|                                                                       | Other short-term borrowings [c]                                        |                                            |           | 182,911    |            |  |   | 4,994     |           |  |         | 2.73 |      |         |           | 115,581    |            |  |   | 1,267   |           |  |  | 1.10 |     
|                                                                       | FHLB and other borrowings [b]                                          |                                            |           | 4,114,354  |            |  |   | 176,605   |           |  |         | 4.29 |      |         |           | 4,589,059  |            |  |   | 169,493 |           |  |  | 3.69 |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total interest bearing liabilities         |           |            | 21,238,580 |  |   |           | 576,173   |  |         |      | 2.71 |         |           |            | 20,397,229 |  |   |         | 388,201   |  |  |      | 1.90 | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                       | Net interest income/net interest spread                                |                                            |           |            |            |  |   | 973,065   |           |  |         | 2.99 | %    |         |           |            |            |  |   | 888,901 |           |  |  | 3.12 | %   
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|Noninterest bearing demand deposits                                    |                                                                        |                                            | 5,702,201 |            |            |  |   |           |           |  |         |      |      |         | 4,999,763 |            |            |  |   |         |           |  |  |     
|Accrued expenses and other liabilities                                 |                                                                        |                                            | 333,389   |            |            |  |   |           |           |  |         |      |      |         | 294,688   |            |            |  |   |         |           |  |  |     
|Shareholders equity                                                   |                                                                        |                                            | 2,170,062 |            |            |  |   |           |           |  |         |      |      |         | 1,968,948 |            |            |  |   |         |           |  |  |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total liabilities and shareholders equity |           | $          | 29,444,232 |  |   |           |           |  |         |      |      |         |           | $          | 27,660,628 |  |   |         |           |  |  |      |      | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                       | Net yield on earning assets                                            |                                            |           |            |            |  |   |           |           |  |         | 3.58 | %    |         |           |            |            |  |   |         |           |  |  | 3.49 | %   
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|Taxable equivalent adjustment:                                         |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            |  |   |         |           |  |  |     
|                                                                       | Loans                                                                  |                                            |           |            |            |  |   | 1,224     |           |  |         |      |      |         |           |            |            |  |   | 764     |           |  |  |      |     
|                                                                       | Investment securities available for sale                               |                                            |           |            |            |  |   | 560       |           |  |         |      |      |         |           |            |            |  |   | 159     |           |  |  |      |     
|                                                                       | Investment securities held to maturity                                 |                                            |           |            |            |  |   | 2,261     |           |  |         |      |      |         |           |            |            |  |   | 2,613   |           |  |  |      |     
|                                                                       | Other                                                                  |                                            |           |            |            |  |   | 41        |           |  |         |      |      |         |           |            |            |  |   | 40      |           |  |  |      |     
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Total taxable equivalent adjustment        |           |            |            |  |   |           | 4,086     |  |         |      |      |         |           |            |            |  |   |         | 3,576     |  |  |      |      | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 
|                                                                       |                                                                        | Net interest income                        |           |            |            |  |   | $         | 968,979   |  |         |      |      |         |           |            |            |  |   | $       | 885,325   |  |  |      |      | 
|                                                                       |                                                                        |                                            |           |            |            |  |   |           |           |  |         |      |      |         |           |            |            | 






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##### Table of Contents









| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  | ---------------------- | ---------- | - | ------------------------------------------------- | - | --------- | ------ |  |  | ------ | - |  | ---- | ------- | - | --- | - | ------- | ------ |  | - | ------ | - |  | --- | ------- | - |  | - | -------- | - |  | - | ------- | -
| |  | Year Ended December 31 |            |   |                                                  
| |  |                        |            |   | Change in Interest Income/Expense Attributable to |  
| |  |                        |            |   |                                                  
| |  | 2003                   |            |   |                                                   |   |          
| |  |                        |            |   | 2005                                              |   |           | 2004   | 
| |  | Average                |            |   | Income/                                           |   |           | Yield/ |  |  |        |   |  |      |        
| |  | Balance                |            |   | Expense                                           |   |           | Rate   |  |  | Volume |   |  | Rate |         |   | Mix |   |         | Volume |  |   | Rate   |   |  | Mix |        
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  | $                      | 16,796,188 |   |                                                   | $ | 984,045   |        |  |  | 5.86   | % |  | $    | 108,252 |   |     | $ | 160,194 |        |  | $ | 16,782 |   |  | $   | 70,506  |   |  | $ | (97,418  | ) |  | $ | (6,208  | )
| |  |                        | 4,702,137  |   |                                                   |   | 224,854   |        |  |  | 4.78   |   |  |      | 6,995   |   |     |   | 880     |        |  |   | 224    |   |  |     | (14,388 | ) |  |   | (31,034  | ) |  |   | 1,802   |  
| |  |                        | 1,403,812  |   |                                                   |   | 71,085    |        |  |  | 5.06   |   |  |      | (23,313 | ) |     |   | 1,498   |        |  |   | (417   | ) |  |     | 80,582  |   |  |   | (3,790   | ) |  |   | (4,240  | )
| |  |                        | 44,253     |   |                                                   |   | 1,001     |        |  |  | 2.26   |   |  |      | 20      |   |     |   | 1,004   |        |  |   | 17     |   |  |     | 367     |   |  |   | (44      | ) |  |   | (18     | )
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  |                        | 22,946,390 |   |                                                   |   | 1,280,985 |        |  |  | 5.58   |   |  |      | 91,954  |   |     |   | 163,576 |        |  |   | 16,606 |   |  |     | 137,067 |   |  |   | (132,286 | ) |  |   | (8,664  | )
| |  |                        | (237,365   | ) |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 107,937    |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 625,052    |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 1,700,705  |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  | $                      | 25,142,719 |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  | $                      | 95,380     |   |                                                   |   | 1,051     |        |  |  | 1.10   |   |  |      | 2,847   |   |     |   | (698    | )      |  |   | (1,754 | ) |  |     | (387    | ) |  |   | 744      |   |  |   | (274    | )
| |  |                        | 7,374,341  |   |                                                   |   | 59,017    |        |  |  | 0.80   |   |  |      | (2,353  | ) |     |   | 30,283  |        |  |   | (1,828 | ) |  |     | 1,571   |   |  |   | (14,011  | ) |  |   | (22     | )
| |  |                        | 1,900,864  |   |                                                   |   | 67,716    |        |  |  | 3.56   |   |  |      | 16,998  |   |     |   | 6,413   |        |  |   | 1,763  |   |  |     | 3,678   |   |  |   | (7,603   | ) |  |   | (470    | )
| |  |                        | 1,436,716  |   |                                                   |   | 46,968    |        |  |  | 3.27   |   |  |      | 28,697  |   |     |   | 13,167  |        |  |   | 7,666  |   |  |     | 11,204  |   |  |   | (7,615   | ) |  |   | (1,789  | )
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  |                        | 10,807,301 |   |                                                   |   | 174,752   |        |  |  | 1.62   |   |  |      | 46,189  |   |     |   | 49,165  |        |  |   | 5,847  |   |  |     | 16,066  |   |  |   | (28,485  | ) |  |   | (2,555  | )
| |  |                        | 2,476,686  |   |                                                   |   | 26,332    |        |  |  | 1.06   |   |  |      | (851    | ) |     |   | 72,274  |        |  |   | (1,133 | ) |  |     | 15,158  |   |  |   | 7,925    |   |  |   | 4,314   |  
| |  |                        | 441,896    |   |                                                   |   | 3,772     |        |  |  | 0.85   |   |  |      | (431    | ) |     |   | 6,797   |        |  |   | (724   | ) |  |     | (599    | ) |  |   | 928      |   |  |   | (167    | )
| |  |                        | 113,550    |   |                                                   |   | 987       |        |  |  | 0.87   |   |  |      | 741     |   |     |   | 1,884   |        |  |   | 1,102  |   |  |     | 18      |   |  |   | 261      |   |  |   | 1       |  
| |  |                        | 4,770,676  |   |                                                   |   | 192,314   |        |  |  | 4.03   |   |  |      | (17,517 | ) |     |   | 27,534  |        |  |   | (2,905 | ) |  |     | (7,319  | ) |  |   | (16,220  | ) |  |   | 718     |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  |                        | 18,610,109 |   |                                                   |   | 398,157   |        |  |  | 2.14   |   |  |      | 28,131  |   |     |   | 157,654 |        |  |   | 2,187  |   |  |     | 23,324  |   |  |   | (35,591  | ) |  |   | 2,311   |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  |                        |            |   |                                                   |   | 882,828   |        |  |  | 3.44   | % |  | $    | 63,823  |   |     | $ | 5,922   |        |  | $ | 14,419 |   |  | $   | 113,743 |   |  | $ | (96,695  | ) |  | $ | (10,975 | )
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  |                        | 4,185,527  |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 381,373    |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        | 1,965,710  |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  | $                      | 25,142,719 |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  |                        |            |   |                                                   |   |           |        |  |  | 3.85   | % |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  |                        |            |   |                                                   |   | 523       |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   | 1,280     |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   | 1,868     |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   | 27        |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  |                        |            |   |                                                   |   | 3,698     |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        
| |  |                        |            |   |                                                   | $ | 879,130   |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |         |   |  |   |          |   |  |   |         |  
| |  |                        |            |   |                                                   |   |           |        |  |  |        |   |  |      |         |   |     |   |         |        |  |   |        |   |  |     |        

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##### Table of Contents



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,
    Accounting by Creditors for Impairment of a Loan, in each
    loan category, although a higher allocation weight may be used
    if current conditions indicate that loan losses may exceed
    historical experience.





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##### Table of Contents





Summary of Loan Loss Experience


|                                             |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |            |         |         |   |            |         |        | 
|-------------------------------------------- | -------------------------------------- | --------------- | ---------- | ------- | ------- | - | ---------- | ------- | ------- | - | ---------- | ------- | ------- | ---- | ---------- | ------- | ------- | - | ---------- | ------- | ------ | 
|                                             |                                        | 2005            |            |         | 2004    |   |            | 2003    |         |   | 2002       |         |         | 2001 |           
|                                             |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                             |                                        | (In Thousands)  |           
|Average loans outstanding during the year    |                                        | $               | 20,049,588 |         |         | $ | 17,999,355 |         |         | $ | 16,796,188 |         |         | $    | 15,100,844 |         |         | $ | 13,008,761 |        
|                                             |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|Allowance for loan losses, beginning of year |                                        | $               | 258,339    |         |         | $ | 244,882    |         |         | $ | 232,830    |         |         | $    | 191,393    |         |         | $ | 167,288    |        
|Charge-offs:                                 |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |            |         |         |   |            |        
|                                             | Commercial, financial and agricultural |                 |            | 15,897  |         |   |            | 14,863  |         |   |            | 23,078  |         |      |            | 26,608  |         |   |            | 37,769  |       
|                                             | Commercial real estate  mortgage      |                 |            | 1,760   |         |   |            | 4,564   |         |   |            | 2,836   |         |      |            | 3,155   |         |   |            | 796     |       
|                                             | Real estate  construction             |                 |            | 740     |         |   |            | 246     |         |   |            | 2,290   |         |      |            | 3,735   |         |   |            | 1,487   |       
|                                             | Residential real estate  mortgage     |                 |            | 1,915   |         |   |            | 1,778   |         |   |            | 1,547   |         |      |            | 1,887   |         |   |            | 1,672   |       
|                                             | Equity lines of credit                 |                 |            | 1,606   |         |   |            | 2,437   |         |   |            | 2,973   |         |      |            | 1,343   |         |   |            | 462     |       
|                                             | Equity loans                           |                 |            | 2,021   |         |   |            | 2,549   |         |   |            | 5,065   |         |      |            | 2,926   |         |   |            | 890     |       
|                                             | Credit card                            |                 |            | 39,106  |         |   |            | 37,625  |         |   |            | 36,248  |         |      |            | 35,296  |         |   |            | 23,375  |       
|                                             | Consumer  direct                      |                 |            | 21,124  |         |   |            | 14,675  |         |   |            | 15,825  |         |      |            | 11,376  |         |   |            | 11,595  |       
|                                             | Consumer  indirect                    |                 |            | 41,575  |         |   |            | 38,860  |         |   |            | 33,865  |         |      |            | 23,061  |         |   |            | 16,613  |       
|                                             |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                             |                                        | Total           |            |         | 125,744 |   |            |         | 117,597 |   |            |         | 123,727 |      |            |         | 109,387 |   |            |         | 94,659 | 
|Recoveries:                                  |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |            |         |         |   |            |        
|                                             | Commercial, financial and agricultural |                 |            | 4,070   |         |   |            | 5,549   |         |   |            | 5,285   |         |      |            | 2,759   |         |   |            | 2,168   |       
|                                             | Commercial real estate  mortgage      |                 |            | 184     |         |   |            | 274     |         |   |            | 149     |         |      |            | 211     |         |   |            | 116     |       
|                                             | Real estate  construction             |                 |            | 93      |         |   |            | 110     |         |   |            | 472     |         |      |            | 54      |         |   |            | 3       |       
|                                             | Residential real estate  mortgage     |                 |            | 116     |         |   |            | 133     |         |   |            | 207     |         |      |            | 390     |         |   |            | 236     |       
|                                             | Equity lines of credit                 |                 |            | 234     |         |   |            | 271     |         |   |            | 54      |         |      |            | 127     |         |   |            | 4       |       
|                                             | Equity loans                           |                 |            | 344     |         |   |            | 434     |         |   |            | 198     |         |      |            | 18      |         |   |            |        |       
|                                             | Credit card                            |                 |            | 3,019   |         |   |            | 2,830   |         |   |            | 2,038   |         |      |            | 2,015   |         |   |            | 2,086   |       
|                                             | Consumer  direct                      |                 |            | 8,508   |         |   |            | 5,966   |         |   |            | 4,786   |         |      |            | 4,570   |         |   |            | 3,985   |       
|                                             | Consumer  indirect                    |                 |            | 12,381  |         |   |            | 10,420  |         |   |            | 6,271   |         |      |            | 4,349   |         |   |            | 4,975   |       
|                                             |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                             |                                        | Total           |            |         | 28,949  |   |            |         | 25,987  |   |            |         | 19,460  |      |            |         | 14,493  |   |            |         | 13,573 | 
|                                             |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                             |                                        | Net charge-offs |            |         | 96,795  |   |            |         | 91,610  |   |            |         | 104,267 |      |            |         | 94,894  |   |            |         | 81,086 | 
|                                             | Provision charged to income            |                 |            | 117,818 |         |   |            | 105,658 |         |   |            | 119,681 |         |      |            | 136,331 |         |   |            | 106,241 |       
|Allowance for loans sold/ securitized        |                                        |                 |           |         |         |   | (591       | )       |         |   | (3,362     | )       |         |      |           |         |         |   | (1,050     | )      
|Allowance transferred to other liabilities   |                                        |                 | (12,189    | )       |         |   |           |         |         |   |           |         |         |      |           |         |         |   |           |        
|                                             |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|Allowance for loan losses, end of year       |                                        | $               | 267,173    |         |         | $ | 258,339    |         |         | $ | 244,882    |         |         | $    | 232,830    |         |         | $ | 191,393    |        
|                                             |                                        |                 |            |         |         |   |            |         |         |   |            |         |         |      |           
|Net charge-offs to average loans outstanding |                                        |                 | 0.48       | %       |         |   | 0.51       | %       |         |   | 0.62       | %       |         |      | 0.63       | %       |         |   | 0.62       | %      

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Allocation of Allowance for Loan Losses


|                                       |             |             |         |            |             |  |       |        |            |                |             |        |  |            |       |      |             |   |            |        |  |  |             |            |  |        |         |        |             |  |       |      |  |   |         |        |  |  |       |      | 
|-------------------------------------- | ----------- | ----------- | ------- | ---------- | ----------- |  | ----- | ------ | ---------- | -------------- | ----------- | ------ |  | ---------- | ----- | ---- | ----------- | - | ---------- | ------ |  |  | ----------- | ---------- |  | ------ | ------- | ------ | ----------- |  | ----- | ---- |  | - | ------- | ------ |  |  | ----- | ---- | 
|                                       |             | December 31 |        
|                                       |             |             |        
|                                       |             | 2005        |         |            | 2004        |  |       | 2003   |            |                | 2002        |        |  | 2001       |      
|                                       |             |             |         |            |             |  |       |        |            |                |             |        |  |            |      
|                                       |             |             |         | 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 |             | $           | 47,688  |            |             |  | 18.2  | %      |            | $              | 55,077      |        |  |            | 19.9  | %    |             | $ | 59,308     |        |  |  | 20.6        | %          |  | $      | 57,685  |        |             |  | 22.4  | %    |  | $ | 54,400  |        |  |  | 27.0  | %   
|Real estate  construction             |             |             | 25,668  |            |             |  | 19.8  |        |            |                | 24,613      |        |  |            | 16.1  |      |             |   | 22,119     |        |  |  | 14.3        |            |  |        | 28,123  |        |             |  | 15.3  |      |  |   | 26,720  |        |  |  | 16.9  |     
|Real estate  mortgage:                |             |             |         |            |             |  |       |        |            |                |             |        |  |            |       |      |             |   |            |        |  |  |             |            |  |        |         |        |             |  |       |      |  |   |         |        |  |  |       |     
|                                       | Residential |             |         | 22,321     |             |  |       | 22.0   |            |                |             | 17,897 |  |            |       | 21.4 |             |   |            | 14,420 |  |  |             | 22.1       |  |        |         | 14,188 |             |  |       | 24.2 |  |   |         | 8,498  |  |  |       | 20.7 | 
|                                       | Commercial  |             |         | 27,432     |             |  |       | 19.1   |            |                |             | 29,011 |  |            |       | 20.9 |             |   |            | 31,746 |  |  |             | 22.6       |  |        |         | 23,642 |             |  |       | 19.5 |  |   |         | 18,787 |  |  |       | 17.6 | 
|Consumer                               |             |             | 144,064 |            |             |  | 20.9  |        |            |                | 131,741     |        |  |            | 21.7  |      |             |   | 117,289    |        |  |  | 20.4        |            |  |        | 109,192 |        |             |  | 18.6  |      |  |   | 82,988  |        |  |  | 17.8  |     
|                                       |             |             |         |            |             |  |       |        |            |                |             |        |  |            |       |      |             |   |            |        |  |  |             |            |  |        |         |        |             | 
|                                       |             | $           | 267,173 |            |             |  | 100.0 | %      |            | $              | 258,339     |        |  |            | 100.0 | %    |             | $ | 244,882    |        |  |  | 100.0       | %          |  | $      | 232,830 |        |             |  | 100.0 | %    |  | $ | 191,393 |        |  |  | 100.0 | %   
|                                       |             |             |         |            |             |  |       |        |            |                |             |        |  |            |       |      |             |   |            |        |  |  |             |            |  |        |         |        |             | 

Nonperforming Assets








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Nonperforming Assets


|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |        |        | 
|-------------------------------------------------------------------- | -------------------------- | -------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ |  | ---- | ------ | ------ |  | - | ------ | ------ | 
|                                                                     |                            | December 31    |       
|                                                                     |                            |                |       
|                                                                     |                            | 2005           |        |        | 2004 |   |        | 2003   |  |   | 2002   |        |  | 2001 |       
|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |       
|                                                                     |                            | (In Thousands) |       
|Nonacccrual loans                                                    |                            | $              | 47,578 |        |      | $ | 49,947 |        |  | $ | 65,870 |        |  | $    | 81,671 |        |  | $ | 65,470 |       
|Renegotiated loans                                                   |                            |                | 698    |        |      |   | 734    |        |  |   | 218    |        |  |      | 38     |        |  |   | 327    |       
|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |       
|                                                                     | Total nonperforming loans  |                |        | 48,276 |      |   |        | 50,681 |  |   |        | 66,088 |  |      |        | 81,709 |  |   |        | 65,797 | 
|Other real estate                                                    |                            |                | 11,510 |        |      |   | 19,998 |        |  |   | 29,014 |        |  |      | 17,300 |        |  |   | 26,478 |       
|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |       
|                                                                     | Total nonperforming assets |                | $      | 59,786 |      |   | $      | 70,679 |  |   | $      | 95,102 |  |      | $      | 99,009 |  |   | $      | 92,275 | 
|                                                                     |                            |                |        |        |      |   |        |        |  |   |        |        |  |      |       
|Accruing loans 90 days or more past due                              |                            | $              | 14,539 |        |      | $ | 15,509 |        |  | $ | 26,159 |        |  | $    | 16,907 |        |  | $ | 17,577 |       
|Total nonperforming loans as a percentage of loans                   |                            |                | .23    | %      |      |   | .27    | %      |  |   | .38    | %      |  |      | .50    | %      |  |   | .48    | %     
|Total nonperforming assets as a percentage of loans and ORE          |                            |                | .28    |        |      |   | .37    |        |  |   | .55    |        |  |      | .60    |        |  |   | .67    |       
|Accruing loans 90 days or more past due as a percentage of
    loans |                            |                | .07    |        |      |   | .08    |        |  |   | .15    |        |  |      | .10    |        |  |   | .13    |       



|                                                            |  |                |        |  |      |   |        |      |  |   |        | 
|----------------------------------------------------------- |  | -------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                                            |  | 2005           |        |  | 2004 |   |        | 2003 | 
|                                                            |  |                |        |  |      |   |        |      | 
|                                                            |  | (In Thousands) |       
|Principal balance                                           |  | $              | 47,578 |  |      | $ | 49,947 |      |  | $ | 65,870 | 
|Interest that would have been recorded under original terms |  |                | 4,789  |  |      |   | 4,819  |      |  |   | 6,228  | 
|Interest actually recorded                                  |  |                | 2,070  |  |      |   | 2,195  |      |  |   | 2,736  | 

Noninterest Income










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mark-to




Noninterest Expense












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##### Table of Contents



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.




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

Share-Based
Payments.


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33-8568




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

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




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

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


Impact of Inflation and Changing Prices




10-K


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##### Table of Contents






ITEM 8  FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA


S-X S-K


Compass Bancshares, Inc. and Subsidiaries


Financial Statements


|                                                                                                         |  |      |    | 
|-------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                         |  | Page |   
|                                                                                                         |  |      |   
|Report of Independent Registered Public Accounting Firm                                                  |  |      | 46 | 
|Consolidated Balance Sheets as of December 31, 2005 and 2004                                             |  |      | 48 | 
|Consolidated Statements of Income for the years ended
    December 31, 2005, 2004 and 2003               |  |      | 49 | 
|Consolidated Statements of Shareholders Equity for the
    years ended December 31, 2005, 2004 and 2003 |  |      | 50 | 
|Consolidated Statements of Cash Flows for the years ended
    December 31, 2005, 2004 and 2003           |  |      | 51 | 
|Notes to Consolidated Financial Statements 
    December 31, 2005, 2004 and 2003                        |  |      | 52 | 

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Report of Independent Registered Public Accounting Firm






Consolidated financial statements




Internal control over financial reporting


Internal Control  Integrated
Framework Internal Control  Integrated
Framework




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Compass Bancshares, Inc. and Subsidiaries


Consolidated Balance Sheets


|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |            |            |            |            |            | 
|-------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- | 
|                                                                                                                     |                                                                                      | December 31                                                                                                                     |                                           
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                           
|                                                                                                                     |                                                                                      | 2005                                                                                                                            |                                            |            | 2004       |           
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                      | (In Thousands)                                                                                                                  |                                           
|ASSETS                                                                                                              
|Cash and due from banks                                                                                              |                                                                                      | $                                                                                                                               | 805,556                                    |            |            | $          | 585,679    |           
|Federal funds sold and securities purchased under agreements to
    resell                                           |                                                                                      |                                                                                                                                 | 46,393                                     |            |            |            | 46,948     |           
|Trading account assets                                                                                               |                                                                                      |                                                                                                                                 | 76,559                                     |            |            |            | 77,817     |           
|Investment securities available for sale                                                                             |                                                                                      |                                                                                                                                 | 4,704,375                                  |            |            |            | 4,398,184  |           
|Investment securities held to maturity (fair value of $2,212,273
    and $2,768,334 for 2005 and 2004, respectively) |                                                                                      |                                                                                                                                 | 2,245,942                                  |            |            |            | 2,767,099  |           
|Loans                                                                                                                |                                                                                      |                                                                                                                                 | 21,372,215                                 |            |            |            | 18,856,922 |           
|Allowance for loan losses                                                                                            |                                                                                      |                                                                                                                                 | (267,173                                   | )          |            |            | (258,339   | )         
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                      | Net loans                                                                                                                       |                                            |            | 21,105,042 |            |            |            | 18,598,583 |           
|Premises and equipment, net                                                                                          |                                                                                      |                                                                                                                                 | 547,195                                    |            |            |            | 537,466    |           
|Bank owned life insurance                                                                                            |                                                                                      |                                                                                                                                 | 441,226                                    |            |            |            | 423,942    |           
|Goodwill                                                                                                             |                                                                                      |                                                                                                                                 | 316,197                                    |            |            |            | 302,619    |           
|Other assets                                                                                                         |                                                                                      |                                                                                                                                 | 509,747                                    |            |            |            | 443,579    |           
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                      |                                                                                                                                 | Total assets                               |            | $          | 30,798,232 |            |            | $          | 28,181,916 | 
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |           
|                                                                                                                    
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                
|Deposits:                                                                                                            |                                                                                      |                                                                                                                                 |                                            |            |            |            |            |           
|                                                                                                                     | Noninterest bearing                                                                  |                                                                                                                                 | $                                          | 6,097,881  |            |            | $          | 5,476,140  |           
|                                                                                                                     | Interest bearing                                                                     |                                                                                                                                 |                                            | 14,286,234 |            |            |            | 11,566,592 |           
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                      | Total deposits                                                                                                                  |                                            |            | 20,384,115 |            |            |            | 17,042,732 |           
|Federal funds purchased and securities sold under agreements to
    repurchase                                       |                                                                                      |                                                                                                                                 | 3,102,572                                  |            |            |            | 4,532,004  |           
|Other short-term borrowings                                                                                          |                                                                                      |                                                                                                                                 | 652,750                                    |            |            |            | 175,771    |           
|FHLB and other borrowings                                                                                            |                                                                                      |                                                                                                                                 | 4,111,462                                  |            |            |            | 4,119,771  |           
|Accrued expenses and other liabilities                                                                               |                                                                                      |                                                                                                                                 | 311,304                                    |            |            |            | 255,293    |           
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                      | Total liabilities                                                                                                               |                                            |            | 28,562,203 |            |            |            | 26,125,571 |           
|Shareholders equity:                                                                                                |                                                                                      |                                                                                                                                 |                                            |            |            |            |            |           
|                                                                                                                     | Preferred stock (25,000,000 shares authorized)                                       |                                                                                                                                 |                                            |           |            |            |            |           |           
|                                                                                                                     | Common stock of $2 par value:                                                        |                                                                                                                                 |                                            |            |            |            |            |            |           
|                                                                                                                     |                                                                                      | Authorized  300,000,000 shares in 2005 and
    2004
    Issued  133,950,243 shares in 2005 and
    132,903,225 shares in 2004 |                                            |            | 267,900    |            |            |            | 265,806    |           
|                                                                                                                     | Treasury stock, at cost (10,411,684 shares in 2005 and
    9,639,194 shares in 2004) |                                                                                                                                 |                                            | (377,327   | )          |            |            | (333,351   | )         
|                                                                                                                     | Surplus                                                                              |                                                                                                                                 |                                            | 300,375    |            |            |            | 264,400    |           
|                                                                                                                     | Loans to finance stock purchases                                                     |                                                                                                                                 |                                            | (1,262     | )          |            |            | (1,056     | )         
|                                                                                                                     | Unearned restricted stock                                                            |                                                                                                                                 |                                            | (11,811    | )          |            |            | (10,624    | )         
|                                                                                                                     | Accumulated other comprehensive loss                                                 |                                                                                                                                 |                                            | (63,156    | )          |            |            | (23,376    | )         
|                                                                                                                     | Retained earnings                                                                    |                                                                                                                                 |                                            | 2,121,310  |            |            |            | 1,894,546  |           
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                      | Total shareholders equity                                                                                                      |                                            |            | 2,236,029  |            |            |            | 2,056,345  |           
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |           
|                                                                                                                     |                                                                                      |                                                                                                                                 | Total liabilities and shareholders equity |            | $          | 30,798,232 |            |            | $          | 28,181,916 | 
|                                                                                                                     |                                                                                      |                                                                                                                                 |                                            |            |            |           



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Consolidated Statements of Income


|                                            |                                                                                            |                                                     |         |           |           |   |         |         |           |   |         |         |           | 
|------------------------------------------- | ------------------------------------------------------------------------------------------ | --------------------------------------------------- | ------- | --------- | --------- | - | ------- | ------- | --------- | - | ------- | ------- | --------- | 
|                                            |                                                                                            | Year Ended December 31                              |        
|                                            |                                                                                            |                                                     |        
|                                            |                                                                                            | 2005                                                |         |           | 2004      |   |         | 2003    |          
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|                                            |                                                                                            | (In Thousands, Except Per Share Data)               |        
|Interest income:                            |                                                                                            |                                                     |         |           |           |   |         |         |           |   |         |        
|                                            | Interest and fees on loans                                                                 |                                                     | $       | 1,234,929 |           |   | $       | 950,161 |           |   | $       | 983,522 |          
|                                            | Interest on investment securities available for sale                                       |                                                     |         | 188,773   |           |   |         | 181,075 |           |   |         | 223,574 |          
|                                            | Interest on investment securities held to maturity                                         |                                                     |         | 119,144   |           |   |         | 141,024 |           |   |         | 69,217  |          
|                                            | Interest on federal funds sold and securities purchased under
    agreements to resell     |                                                     |         | 1,537     |           |   |         | 801     |           |   |         | 485     |          
|                                            | Interest on trading account assets                                                         |                                                     |         | 769       |           |   |         | 465     |           |   |         | 489     |          
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|                                            |                                                                                            | Total interest income                               |         |           | 1,545,152 |   |         |         | 1,273,526 |   |         |         | 1,277,287 | 
|Interest expense:                           |                                                                                            |                                                     |         |           |           |   |         |         |           |   |         |        
|                                            | Interest on deposits                                                                       |                                                     |         | 260,979   |           |   |         | 159,778 |           |   |         | 174,752 |          
|                                            | Interest on federal funds purchased and securities sold under
    agreements to repurchase |                                                     |         | 133,595   |           |   |         | 57,663  |           |   |         | 30,104  |          
|                                            | Interest on other short-term borrowings                                                    |                                                     |         | 4,994     |           |   |         | 1,267   |           |   |         | 987     |          
|                                            | Interest on FHLB and other borrowings                                                      |                                                     |         | 176,605   |           |   |         | 169,493 |           |   |         | 192,314 |          
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|                                            |                                                                                            | Total interest expense                              |         |           | 576,173   |   |         |         | 388,201   |   |         |         | 398,157   | 
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|                                            |                                                                                            | Net interest income                                 |         |           | 968,979   |   |         |         | 885,325   |   |         |         | 879,130   | 
|Provision for loan losses                   |                                                                                            |                                                     | 117,818 |           |           |   | 105,658 |         |           |   | 119,681 |        
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|                                            |                                                                                            | Net interest income after provision for loan losses |         |           | 851,161   |   |         |         | 779,667   |   |         |         | 759,449   | 
|Noninterest income:                         |                                                                                            |                                                     |         |           |           |   |         |         |           |   |         |        
|                                            | Service charges on deposit accounts                                                        |                                                     |         | 297,080   |           |   |         | 282,808 |           |   |         | 241,419 |          
|                                            | Card and merchant processing fees                                                          |                                                     |         | 95,591    |           |   |         | 75,548  |           |   |         | 60,067  |          
|                                            | Insurance commissions                                                                      |                                                     |         | 59,362    |           |   |         | 51,437  |           |   |         | 44,024  |          
|                                            | Retail investment sales                                                                    |                                                     |         | 33,890    |           |   |         | 31,316  |           |   |         | 27,440  |          
|                                            | Asset management fees                                                                      |                                                     |         | 28,689    |           |   |         | 22,666  |           |   |         | 21,994  |          
|                                            | Corporate and correspondent investment sales                                               |                                                     |         | 23,487    |           |   |         | 20,457  |           |   |         | 28,957  |          
|                                            | Bank owned life insurance                                                                  |                                                     |         | 17,467    |           |   |         | 17,169  |           |   |         | 16,928  |          
|                                            | Gain on sale of business and branches                                                      |                                                     |         | 6,391     |           |   |         |        |           |   |         | 2,128   |          
|                                            | Investment securities gains (losses), net                                                  |                                                     |         | 79        |           |   |         | 27,336  |           |   |         | (43     | )        
|                                            | Trading gains (losses) and settlements on economic hedge swaps                             |                                                     |         | (3,235    | )         |   |         | 11,053  |           |   |         | 9,320   |          
|                                            | Other                                                                                      |                                                     |         | 99,877    |           |   |         | 88,853  |           |   |         | 83,270  |          
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|                                            |                                                                                            | Total noninterest income                            |         |           | 658,678   |   |         |         | 628,643   |   |         |         | 535,504   | 
|Noninterest expense:                        |                                                                                            |                                                     |         |           |           |   |         |         |           |   |         |        
|                                            | Salaries, benefits and commissions                                                         |                                                     |         | 487,819   |           |   |         | 458,356 |           |   |         | 429,486 |          
|                                            | Equipment                                                                                  |                                                     |         | 81,979    |           |   |         | 76,169  |           |   |         | 72,302  |          
|                                            | Net occupancy                                                                              |                                                     |         | 66,937    |           |   |         | 65,791  |           |   |         | 61,607  |          
|                                            | Professional services                                                                      |                                                     |         | 61,640    |           |   |         | 57,380  |           |   |         | 56,518  |          
|                                            | Marketing                                                                                  |                                                     |         | 43,802    |           |   |         | 33,249  |           |   |         | 31,946  |          
|                                            | Communications                                                                             |                                                     |         | 21,793    |           |   |         | 21,859  |           |   |         | 24,548  |          
|                                            | Amortization of intangibles                                                                |                                                     |         | 6,151     |           |   |         | 6,543   |           |   |         | 7,302   |          
|                                            | Merger and integration                                                                     |                                                     |         | 1,641     |           |   |         | 1,275   |           |   |         | 1,853   |          
|                                            | Loss on prepayment of FHLB advances                                                        |                                                     |         |          |           |   |         | 25,136  |           |   |         |        |          
|                                            | Other                                                                                      |                                                     |         | 130,041   |           |   |         | 122,720 |           |   |         | 112,321 |          
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|                                            |                                                                                            | Total noninterest expense                           |         |           | 901,803   |   |         |         | 868,478   |   |         |         | 797,883   | 
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|                                            |                                                                                            | Net income before income tax expense                |         |           | 608,036   |   |         |         | 539,832   |   |         |         | 497,070   | 
|Income tax expense                          |                                                                                            |                                                     | 206,206 |           |           |   | 179,647 |         |           |   | 168,392 |        
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|                                            |                                                                                            | Net income                                          |         | $         | 401,830   |   |         | $       | 360,185   |   |         | $       | 328,678   | 
|                                            |                                                                                            |                                                     |         |           |           |   |         |         |          
|Basic earnings per share                    |                                                                                            | $                                                   | 3.25    |           |           | $ | 2.95    |         |           | $ | 2.64    |        
|Basic weighted average shares outstanding   |                                                                                            |                                                     | 123,550 |           |           |   | 122,254 |         |           |   | 124,656 |        
|Diluted earnings per share                  |                                                                                            | $                                                   | 3.18    |           |           | $ | 2.87    |         |           | $ | 2.58    |        
|Diluted weighted average shares outstanding |                                                                                            |                                                     | 126,423 |           |           |   | 125,416 |         |           |   | 127,186 |        



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Consolidated Statements of Shareholders Equity


Years Ended December 31, 2005, 2004 and 2003


|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |        |   |   |           |          |   |  |   |         |  
|-------------------------- | ----------------------------------------------------------------------------------------- | -------------- | ------- | ----- | -------- | - | -------- | -------- | - | ------------- | -------- | ------ | ------ | ------ | --------- | -------- | ----- | ------------- | ------- | ------- | ------ | - | ------- | ------ | - | - | --------- | -------- | - |  | - | ------- | -
|                           |                                                                                           |                |         |       |          |   |          |          |   | Accumulated   |          |        |        |        |           |          |      
|                           |                                                                                           |                |         |       |          |   |          |          |   | Other         |          |        |        |        |           |          |      
|                           |                                                                                           |                |         |       |          |   |          |          |   | Comprehensive |          |        |        |        | Total     |          |       | Comprehensive |        
|                           |                                                                                           | Common         |         |       | Treasury |   |          |          |   | Retained      |          |        | Income |        |           |          |       | Shareholders |         |         | Income |  
|                           |                                                                                           | Stock          |         |       | Stock    |   |          | Surplus  |   |               | Earnings |        |        | (Loss) |           |          | Other |               |         | Equity  |        |   | (Loss)  |       
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           |                                                                                           | (In Thousands) |        
|Balance, December 31, 2002 |                                                                                           | $              | 260,824 |       |          | $ | (129,415 | )        |   | $             | 199,907  |        |        | $      | 1,502,398 |          |       | $             | 136,109 |         |        | $ | (4,440  | )      |   | $ | 1,965,383 |          |   |  |   |        
|                           | Net income  2003                                                                         |                |         |      |          |   |          |         |   |               |          |       |        |        |           | 328,678  |       |               |         |        |        |   |         |       |   |   |           | 328,678  |   |  | $ | 328,678 |  
|                           | 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                                                                      |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |        |   |   |           |          |   |  | $ | 229,875 |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | 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  |        |        |        | 1,689,689 |          |       |               | 37,306  |         |        |   | (7,294  | )      |   |   | 1,892,574 |          |   |  |   |        
|                           | Net income  2004                                                                         |                |         |      |          |   |          |         |   |               |          |       |        |        |           | 360,185  |       |               |         |        |        |   |         |       |   |   |           | 360,185  |   |  | $ | 360,185 |  
|                           | 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                                                                      |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |        |   |   |           |          |   |  | $ | 299,503 |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | Common dividends declared ($1.25 per share)                                               |                |         |      |          |   |          |         |   |               |          |       |        |        |           | (153,970 | )     |               |         |        |        |   |         |       |   |   |           | (153,970 | ) |  |   |         |  
|                           | Exercise of stock options and other issuances                                             |                |         | 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  |        |        |        | 1,894,546 |          |       |               | (23,376 | )       |        |   | (11,680 | )      |   |   | 2,056,345 |          |   |  |   |        
|                           | Net income  2005                                                                         |                |         |      |          |   |          |         |   |               |          |       |        |        |           | 401,830  |       |               |         |        |        |   |         |       |   |   |           | 401,830  |   |  | $ | 401,830 |  
|                           | Net change in unrealized losses on securities available for
    sale, net of tax          |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | (44,297 | )      |   |         |       |   |   |           | (44,297  | ) |  |   | (44,297 | )
|                           | Net change in accumulated losses on cash-flow hedging
    instruments, net of tax         |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | 3,665   |        |   |         |       |   |   |           | 3,665    |   |  |   | 3,665   |  
|                           | Net change in additional minimum pension liability, net of
    tax                        |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         | 852     |        |   |         |        |   |   |           | 852      |   |  |   | 852     |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | Comprehensive income                                                                      |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |        |   |   |           |          |   |  | $ | 362,050 |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|                           | Common dividends declared ($1.40 per share)                                               |                |         |      |          |   |          |         |   |               |          |       |        |        |           | (173,524 | )     |               |         |        |        |   |         |       |   |   |           | (173,524 | ) |  |   |         |  
|                           | Exercise of stock options and other issuances                                             |                |         | 1,842 |          |   |          |         |   |               |          | 25,844 |        |        |           | (1,542   | )     |               |         |        |        |   |         |       |   |   |           | 26,144   |   |  |   |         |  
|                           | Issuance of restricted stock, net of cancellations                                        |                |         | 252   |          |   |          |         |   |               |          | 6,419  |        |        |           |         |       |               |         |        |        |   |         | (6,671 | ) |   |           |         |   |  |   |         |  
|                           | Issuance of treasury stock for acquisitions, stock options
    and benefit plans          |                |         |      |          |   |          | 19,271   |   |               |          | 3,712  |        |        |           |         |       |               |         |        |        |   |         |       |   |   |           | 22,983   |   |  |   |         |  
|                           | Advances on loans to finance stock purchases, net of
    repayments                       |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         |        |        |   |         | (206   | ) |   |           | (206     | ) |  |   |         |  
|                           | Amortization of restricted stock                                                          |                |         |      |          |   |          |         |   |               |          |       |        |        |           |         |       |               |         |        |        |   |         | 5,484  |   |   |           | 5,484    |   |  |   |         |  
|                           | Purchase of treasury stock                                                                |                |         |      |          |   |          | (63,247  | ) |               |          |       |        |        |           |         |       |               |         |        |        |   |         |       |   |   |           | (63,247  | ) |  |   |         |  
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       
|Balance, December 31, 2005 |                                                                                           | $              | 267,900 |       |          | $ | (377,327 | )        |   | $             | 300,375  |        |        | $      | 2,121,310 |          |       | $             | (63,156 | )       |        | $ | (13,073 | )      |   | $ | 2,236,029 |          |   |  |   |        
|                           |                                                                                           |                |         |       |          |   |          |          |   |               |          |        |        |        |           |          |       |               |         |         |        |   |         |       



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Consolidated Statements of Cash Flows


|                                                   |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |         |            |         |            |         |            |  
|-------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ----------------------------------------- | ---------- | ------- | ---------- | -------- | ---------- | ------- | ---------- | ------- | ---------- | ------- | ---------- | -
|                                                   |                                                                                                                                 | Year Ended December 31                                                  |                                          
|                                                   |                                                                                                                                 |                                                                         |                                          
|                                                   |                                                                                                                                 | 2005                                                                    |                                           |            | 2004    |            |          | 2003       |        
|                                                   |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |        
|                                                   |                                                                                                                                 | (In Thousands)                                                          |                                          
|Operating Activities:                              |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |         |            |         |           
|                                                   | Net income                                                                                                                      |                                                                         | $                                         | 401,830    |         |            | $        | 360,185    |         |            | $       | 328,678    |        
|                                                   | Adjustments to reconcile net income to cash provided by
    operations:                                                         |                                                                         |                                           |            |         |            |          |            |         |            |         |            |        
|                                                   |                                                                                                                                 | Depreciation and amortization                                           |                                           |            | 106,008 |            |          |            | 108,845 |            |         |            | 117,586 |           
|                                                   |                                                                                                                                 | Accretion of discount and loan fees                                     |                                           |            | (5,917  | )          |          |            | (18,550 | )          |         |            | (20,057 | )         
|                                                   |                                                                                                                                 | Provision for loan losses                                               |                                           |            | 117,818 |            |          |            | 105,658 |            |         |            | 119,681 |           
|                                                   |                                                                                                                                 | Net change in trading account assets                                    |                                           |            | 2,530   |            |          |            | 11,004  |            |         |            | 26,542  |           
|                                                   |                                                                                                                                 | Deferred tax benefit                                                    |                                           |            | (31,145 | )          |          |            | (2,243  | )          |         |            | (8,770  | )         
|                                                   |                                                                                                                                 | Net (gain) loss on sale of investment securities available
    for sale |                                           |            | (79     | )          |          |            | (27,336 | )          |         |            | 43      |           
|                                                   |                                                                                                                                 | Loss on prepayment of FHLB advances                                     |                                           |            |        |            |          |            | 25,136  |            |         |            |        |           
|                                                   |                                                                                                                                 | Gain on sale of business and branches                                   |                                           |            | (6,391  | )          |          |            |        |            |         |            | (2,128  | )         
|                                                   |                                                                                                                                 | Increase in other assets                                                |                                           |            | (39,632 | )          |          |            | (76,086 | )          |         |            | (86,032 | )         
|                                                   |                                                                                                                                 | Increase (decrease) in other liabilities                                |                                           |            | 66,502  |            |          |            | 27,917  |            |         |            | (65,852 | )         
|                                                   |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |        
|                                                   |                                                                                                                                 |                                                                         | Net cash provided by operating activities |            |         | 611,524    |          |            |         | 514,530    |         |            |         | 409,691    |  
|Investing Activities:                              |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |         |            |         |           
|                                                   | Proceeds from maturities/calls of investment securities held to
    maturity                                                    |                                                                         |                                           | 527,601    |         |            |          | 736,367    |         |            |         | 706,752    |        
|                                                   | Purchases of investment securities held to maturity                                                                             |                                                                         |                                           | (5,000     | )       |            |          |           |         |            |         |           |        
|                                                   | Proceeds from sales of investment securities available for sale                                                                 |                                                                         |                                           | 78,594     |         |            |          | 814,036    |         |            |         | 268,263    |        
|                                                   | Proceeds from maturities/calls of investment securities
    available for sale                                                  |                                                                         |                                           | 717,790    |         |            |          | 846,600    |         |            |         | 2,229,999  |        
|                                                   | Purchases of investment securities available for sale                                                                           |                                                                         |                                           | (1,183,296 | )       |            |          | (1,731,966 | )       |            |         | (4,237,230 | )      
|                                                   | Net (increase) decrease in federal funds sold and securities
    purchased under agreements to resell                           |                                                                         |                                           | 555        |         |            |          | 31,217     |         |            |         | (53,343    | )      
|                                                   | Net increase in loan portfolio                                                                                                  |                                                                         |                                           | (2,636,218 | )       |            |          | (2,188,966 | )       |            |         | (2,197,523 | )      
|                                                   | Net cash received (paid) in acquisitions/dispositions                                                                           |                                                                         |                                           | (16,945    | )       |            |          | 268        |         |            |         | (24,382    | )      
|                                                   | Purchases of premises and equipment, net                                                                                        |                                                                         |                                           | (69,755    | )       |            |          | (69,265    | )       |            |         | (87,849    | )      
|                                                   | Proceeds from sales of other real estate owned                                                                                  |                                                                         |                                           | 21,207     |         |            |          | 30,845     |         |            |         | 23,455     |        
|                                                   |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |        
|                                                   |                                                                                                                                 |                                                                         | Net cash used by investing activities     |            |         | (2,565,467 | )        |            |         | (1,530,864 | )       |            |         | (3,371,858 | )
|Financing Activities:                              |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |         |            |         |           
|                                                   | Net increase in demand deposits, NOW accounts and savings
    accounts                                                          |                                                                         |                                           | 930,127    |         |            |          | 725,615    |         |            |         | 1,191,274  |        
|                                                   | Net increase (decrease) in time deposits                                                                                        |                                                                         |                                           | 2,437,410  |         |            |          | 628,458    |         |            |         | (562,915   | )      
|                                                   | Net increase (decrease) in federal funds purchased and
    securities sold under agreements to repurchase                       |                                                                         |                                           | (1,429,432 | )       |            |          | 413,380    |         |            |         | 2,775,424  |        
|                                                   | Net increase (decrease) in other short-term borrowings                                                                          |                                                                         |                                           | 476,979    |         |            |          | (87,766    | )       |            |         | (36,856    | )      
|                                                   | Proceeds from FHLB advances and other borrowings                                                                                |                                                                         |                                           | 396,902    |         |            |          | 1,125,100  |         |            |         | 1,300,000  |        
|                                                   | Repayment of FHLB advances and other borrowings                                                                                 |                                                                         |                                           | (400,537   | )       |            |          | (1,793,140 | )       |            |         | (1,380,539 | )      
|                                                   | Redemption of guaranteed preferred beneficial interests in the
    Companys junior subordinated deferrable interest debentures |                                                                         |                                           |           |         |            |          | (23,000    | )       |            |         | (12,000    | )      
|                                                   | Common dividends paid                                                                                                           |                                                                         |                                           | (208,756   | )       |            |          | (118,533   | )       |            |         | (139,376   | )      
|                                                   | Purchase of treasury stock                                                                                                      |                                                                         |                                           | (63,247    | )       |            |          | (33,829    | )       |            |         | (213,227   | )      
|                                                   | Issuance of treasury stock for benefit plans and stock options                                                                  |                                                                         |                                           | 9,274      |         |            |          | 9,998      |         |            |         | 8,466      |        
|                                                   | Repayment of loans to finance stock purchases                                                                                   |                                                                         |                                           | 679        |         |            |          | 616        |         |            |         | 1,126      |        
|                                                   | Proceeds from exercise of stock options                                                                                         |                                                                         |                                           | 24,421     |         |            |          | 28,622     |         |            |         | 22,742     |        
|                                                   |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |        
|                                                   |                                                                                                                                 |                                                                         | Net cash provided by financing activities |            |         | 2,173,820  |          |            |         | 875,521    |         |            |         | 2,954,119  |  
|                                                   |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |        
|Net increase (decrease) in cash and due from banks |                                                                                                                                 |                                                                         | 219,877                                   |            |         |            | (140,813 | )          |         |            | (8,048  | )         
|Cash and due from banks at beginning of the year   |                                                                                                                                 |                                                                         | 585,679                                   |            |         |            | 726,492  |            |         |            | 734,540 |           
|                                                   |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |        
|Cash and due from banks at end of the year         |                                                                                                                                 | $                                                                       | 805,556                                   |            |         | $          | 585,679  |            |         | $          | 726,492 |           
|                                                   |                                                                                                                                 |                                                                         |                                           |            |         |            |          |            |        



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial Statements


December 31, 2005, 2004 and 2003




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







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





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





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





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





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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003








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





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









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



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003








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





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





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





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





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





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



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003












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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






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





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





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





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

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


Accounting for Stock-Based
Compensation


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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003










|                            |                                                                                                                                     |                        |   |         |      |  |   |         |  |  |   |         | 
|--------------------------- | ----------------------------------------------------------------------------------------------------------------------------------- | ---------------------- | - | ------- | ---- |  | - | ------- |  |  | - | ------- | 
|                            |                                                                                                                                     | Year Ended December 31 |  
|                            |                                                                                                                                     |                        |  
|                            |                                                                                                                                     | 2005                   |   |         | 2004 |  |   | 2003    | 
|                            |                                                                                                                                     |                        |   |         |      |  |   |         | 
|Net income:                 |                                                                                                                                     |                        |   |         |      |  |   |         |  |  |   |        
|                            | As reported                                                                                                                         |                        | $ | 401,830 |      |  | $ | 360,185 |  |  | $ | 328,678 | 
|                            | Deduct: Total stock-based employee compensation expense
    determined under fair value based method for all awards, net of
    tax |                        |   | 11,718  |      |  |   | 9,402   |  |  |   | 10,791  | 
|                            |                                                                                                                                     |                        |   |         |      |  |   |         | 
|                            | Pro forma net income                                                                                                                |                        | $ | 390,112 |      |  | $ | 350,783 |  |  | $ | 317,887 | 
|                            |                                                                                                                                     |                        |   |         |      |  |   |         | 
|Basic earnings per share:   |                                                                                                                                     |                        |   |         |      |  |   |         |  |  |   |        
|                            | As reported                                                                                                                         |                        | $ | 3.25    |      |  | $ | 2.95    |  |  | $ | 2.64    | 
|                            | Pro forma                                                                                                                           |                        |   | 3.16    |      |  |   | 2.87    |  |  |   | 2.55    | 
|Diluted earnings per share: |                                                                                                                                     |                        |   |         |      |  |   |         |  |  |   |        
|                            | As reported                                                                                                                         |                        | $ | 3.18    |      |  | $ | 2.87    |  |  | $ | 2.58    | 
|                            | Pro forma                                                                                                                           |                        |   | 3.09    |      |  |   | 2.80    |  |  |   | 2.50    | 

Recently Issued Accounting Standards




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

Consolidation of Variable Interest
Entities.


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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003


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.




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

Share-Based
Payments. 33-8568




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

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


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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






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

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




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



|                                        |                                           |                |   |         |           |  |   |          |           |  |       |           |           |  |   |           |           | 
|--------------------------------------- | ----------------------------------------- | -------------- | - | ------- | --------- |  | - | -------- | --------- |  | ----- | --------- | --------- |  | - | --------- | --------- | 
|                                        |                                           | 2005           |   |         | 2004      | 
|                                        |                                           |                |   |         |           | 
|                                        |                                           | Carrying       |   |         | Fair      |  |   | Carrying |           |  | Fair  |          
|                                        |                                           | Amount         |   |         | Value     |  |   | Amount   |           |  | Value |          
|                                        |                                           |                |   |         |           |  |   |          |           |  |       |          
|                                        |                                           | (In Thousands) |  
|Investment securities held to maturity: |                                           |                |   |         |           |  |   |          |           |  |       |           |           |  |   |          
|                                        | U.S. Government agencies and corporations |                | $ | 39,275  |           |  | $ | 39,730   |           |  | $     | 60,860    |           |  | $ | 61,387    |          
|                                        | Mortgage-backed pass-through securities   |                |   | 932,785 |           |  |   | 921,076  |           |  |       | 1,125,080 |           |  |   | 1,133,696 |          
|                                        | Collateralized mortgage obligations       |                |   | 965,366 |           |  |   | 949,395  |           |  |       | 1,167,287 |           |  |   | 1,163,914 |          
|                                        | Asset-backed securities                   |                |   | 219,583 |           |  |   | 212,056  |           |  |       | 320,058   |           |  |   | 312,864   |          
|                                        | States and political subdivisions         |                |   | 88,933  |           |  |   | 90,016   |           |  |       | 93,714    |           |  |   | 96,373    |          
|                                        | Other                                     |                |   |        |           |  |   |         |           |  |       | 100       |           |  |   | 100       |          
|                                        |                                           |                |   |         |           |  |   |          |           |  |       |          
|                                        |                                           | Total          |   | $       | 2,245,942 |  |   | $        | 2,212,273 |  |       | $         | 2,767,099 |  |   | $         | 2,768,334 | 
|                                        |                                           |                |   |         |           |  |   |          |           |  |       |          

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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003


|                                          |                   |                                                                       |       |         |           |           |  |         |           |           |           |         |           |           |  |         |           |           | 
|----------------------------------------- | ----------------- | --------------------------------------------------------------------- | ----- | ------- | --------- | --------- |  | ------- | --------- | --------- | --------- | ------- | --------- | --------- |  | ------- | --------- | --------- | 
|                                          |                   | 2005                                                                  |       |         | 2004      |          
|                                          |                   |                                                                       |       |         |           |          
|                                          |                   | 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 |       | $       | 48,463    |           |  | $       | 48,595    |           |           | $       | 39,828    |           |  | $       | 39,552    |          
|                                          |                   | Mortgage-backed pass-through securities                               |       |         | 527,785   |           |  |         | 537,288   |           |           |         | 501,978   |           |  |         | 499,525   |          
|                                          |                   | Collateralized mortgage obligations                                   |       |         | 3,661,828 |           |  |         | 3,739,968 |           |           |         | 3,512,515 |           |  |         | 3,533,176 |          
|                                          |                   | Asset-backed securities and corporate bonds                           |       |         |          |           |  |         |          |           |           |         | 1,059     |           |  |         | 1,039     |          
|                                          |                   | States and political subdivisions                                     |       |         | 44,652    |           |  |         | 45,331    |           |           |         | 12,118    |           |  |         | 11,943    |          
|                                          |                   | Other                                                                 |       |         | 227,329   |           |  |         | 219,753   |           |           |         | 125,040   |           |  |         | 119,746   |          
|                                          | Equity securities |                                                                       |       | 194,318 |           |           |  | 194,298 |           |           |           | 205,646 |           |           |  | 205,633 |          
|                                          |                   |                                                                       |       |         |           |           |  |         |           |           |           |        
|                                          |                   |                                                                       | Total |         | $         | 4,704,375 |  |         | $         | 4,785,233 |           |         | $         | 4,398,184 |  |         | $         | 4,410,614 | 
|                                          |                   |                                                                       |       |         |           |           |  |         |           |           |           |        

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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




|                                          |                                           |                                                                       |       |       |            |        |   |            |        |        |            |        |        |        |   |        |        |        | 
|----------------------------------------- | ----------------------------------------- | --------------------------------------------------------------------- | ----- | ----- | ---------- | ------ | - | ---------- | ------ | ------ | ---------- | ------ | ------ | ------ | - | ------ | ------ | ------ | 
|                                          |                                           | 2005                                                                  |       |       | 2004       |       
|                                          |                                           |                                                                       |       |       |            |       
|                                          |                                           | Unrealized                                                            |       |       | Unrealized |        |   | Unrealized |        |        | Unrealized |       
|                                          |                                           | Gains                                                                 |       |       | Losses     |        |   | Gains      |        |        | Losses     |       
|                                          |                                           |                                                                       |       |       |            |        |   |            |        |        |            |       
|                                          |                                           | (In Thousands)                                                        |      
|Investment securities held to maturity:   |                                           |                                                                       |       |       |            |        |   |            |        |        |            |        |        |        |   |       
|                                          | U.S. Government agencies and corporations |                                                                       | $     | 455   |            |        | $ |           |        |        | $          | 546    |        |        | $ | 19     |       
|                                          | Mortgage-backed pass-through securities   |                                                                       |       | 3,351 |            |        |   | 15,060     |        |        |            | 11,457 |        |        |   | 2,841  |       
|                                          | Collateralized mortgage obligations       |                                                                       |       | 2,913 |            |        |   | 18,884     |        |        |            | 6,698  |        |        |   | 10,071 |       
|                                          | Asset-backed securities                   |                                                                       |       |      |            |        |   | 7,527      |        |        |            |       |        |        |   | 7,194  |       
|                                          | States and political subdivisions         |                                                                       |       | 1,220 |            |        |   | 137        |        |        |            | 2,659  |        |        |   |       |       
|                                          | Other                                     |                                                                       |       |      |            |        |   |           |        |        |            |       |        |        |   |       |       
|                                          |                                           |                                                                       |       |       |            |        |   |            |        |        |            |       
|                                          |                                           | Total                                                                 |       | $     | 7,939      |        |   | $          | 41,608 |        |            | $      | 21,360 |        |   | $      | 20,125 |       
|                                          |                                           |                                                                       |       |       |            |        |   |            |        |        |            |       
|Investment securities available for sale: |                                           |                                                                       |       |       |            |        |   |            |        |        |            |        |        |        |   |       
|                                          | Debt securities:                          |                                                                       |       |       |            |        |   |            |        |        |            |        |        |        |   |        |       
|                                          |                                           | U.S. Treasury and other U.S. Government agencies and
    corporations |       | $     | 7          |        |   | $          | 139    |        |            | $      | 277    |        |   | $      | 1      |       
|                                          |                                           | Mortgage-backed pass-through securities                               |       |       | 2,945      |        |   |            | 12,448 |        |            |        | 6,373  |        |   |        | 3,920  |       
|                                          |                                           | Collateralized mortgage obligations                                   |       |       | 507        |        |   |            | 78,647 |        |            |        | 3,586  |        |   |        | 24,247 |       
|                                          |                                           | Asset-backed securities and corporate bonds                           |       |       |           |        |   |            |       |        |            |        | 20     |        |   |        |       |       
|                                          |                                           | States and political subdivisions                                     |       |       | 79         |        |   |            | 758    |        |            |        | 203    |        |   |        | 28     |       
|                                          |                                           | Other                                                                 |       |       | 7,576      |        |   |            |       |        |            |        | 5,294  |        |   |        |       |       
|                                          | Equity securities                         |                                                                       |       | 20    |            |        |   |           |        |        |            | 13     |        |        |   |       |       
|                                          |                                           |                                                                       |       |       |            |        |   |            |        |        |            |       
|                                          |                                           |                                                                       | Total |       | $          | 11,134 |   |            | $      | 91,992 |            |        | $      | 15,766 |   |        | $      | 28,196 | 
|                                          |                                           |                                                                       |       |       |            |        |   |            |        |        |            |       

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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |           |           |  |   |            |        |  |   |           |           |  |   |        |        | 
|----------------------------------------- | ----------------- | --------------------------------------------------------------------- | ----- | - | ----------------------------- | --------- |  | ----- | ------ | ------ | ---------- | - | --------- | --------- |  | - | ---------- | ------ |  | - | --------- | --------- |  | - | ------ | ------ | 
|                                          |                   | 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 |       | $ | 44,845                        |           |  | $     | 138    |        |            | $ | 55        |           |  | $ | 1          |        |  | $ | 44,900    |           |  | $ | 139    |       
|                                          |                   | Mortgage-backed pass-through securities                               |       |   | 150,147                       |           |  |       | 2,312  |        |            |   | 276,093   |           |  |   | 10,136     |        |  |   | 426,240   |           |  |   | 12,448 |       
|                                          |                   | Collateralized mortgage obligations                                   |       |   | 902,859                       |           |  |       | 13,080 |        |            |   | 2,644,937 |           |  |   | 65,567     |        |  |   | 3,547,796 |           |  |   | 78,647 |       
|                                          |                   | Asset-backed securities and corporate bonds                           |       |   |                              |           |  |       |       |        |            |   |          |           |  |   |           |        |  |   |          |           |  |   |       |       
|                                          |                   | States and political subdivisions                                     |       |   | 35,369                        |           |  |       | 758    |        |            |   |          |           |  |   |           |        |  |   | 35,369    |           |  |   | 758    |       
|                                          |                   | Other                                                                 |       |   |                              |           |  |       |       |        |            |   |          |           |  |   |           |        |  |   |          |           |  |   |       |       
|                                          | Equity securities |                                                                       |       |  |                               |           |  |      |        |        |            |  |           |           |  |  |            |        |  |  |           |           |  |  |       
|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |           |           |  |   |            |       
|                                          |                   |                                                                       | Total |   | $                             | 1,133,220 |  |       | $      | 16,288 |            |   | $         | 2,921,085 |  |   | $          | 75,704 |  |   | $         | 4,054,305 |  |   | $      | 91,992 | 
|                                          |                   |                                                                       |       |   |                               |           |  |       |        |        |            |   |           |           |  |   |            |       



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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




|                                          |                   |                                                                       |       |   |                        |           |  |       |        |        |            |   |         |         |  |   |            |       |  |   |           |           |  |   |        |        | 
|----------------------------------------- | ----------------- | --------------------------------------------------------------------- | ----- | - | ---------------------- | --------- |  | ----- | ------ | ------ | ---------- | - | ------- | ------- |  | - | ---------- | ----- |  | - | --------- | --------- |  | - | ------ | ------ | 
|                                          |                   | Securities in a Loss                                                  |       |   | Securities in a Loss   |           |  |       |        |       
|                                          |                   | Position for Less than 12                                             |       |   | Position for 12 Months |           |  |      
|                                          |                   | 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 | 
|                                          |                   |                                                                       |       |   |                        |           |  |       |        |        |            |   |         |         |  |   |            |      



|                                        |                                                                        |                |         |           |           |  |         |           |           | 
|--------------------------------------- | ---------------------------------------------------------------------- | -------------- | ------- | --------- | --------- |  | ------- | --------- | --------- | 
|                                        |                                                                        | 2005           |        
|                                        |                                                                        |                |        
|                                        |                                                                        | Carrying       |         |           | Fair      | 
|                                        |                                                                        | Amount         |         |           | Value     | 
|                                        |                                                                        |                |         |           |           | 
|                                        |                                                                        | (In Thousands) |        
|Investment securities held to maturity: |                                                                        |                |         |           |           |  |         |          
|                                        | Maturing within one year                                               |                | $       | 3,945     |           |  | $       | 3,991     |          
|                                        | Maturing after one but within five years                               |                |         | 282,792   |           |  |         | 276,060   |          
|                                        | Maturing after five but within ten years                               |                |         | 15,036    |           |  |         | 15,178    |          
|                                        | Maturing after ten years                                               |                |         | 46,018    |           |  |         | 46,573    |          
|                                        |                                                                        |                |         |           |           | 
|                                        |                                                                        |                | 347,791 |           |           |  | 341,802 |          
|                                        | Mortgage-backed securities and collateralized mortgage
    obligations |                |         | 1,898,151 |           |  |         | 1,870,471 |          
|                                        |                                                                        |                |         |           |           | 
|                                        |                                                                        | Total          |         | $         | 2,245,942 |  |         | $         | 2,212,273 | 
|                                        |                                                                        |                |         |           |           | 

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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003


|                                          |                                                                        |                |         |           |           |  |         |           |           | 
|----------------------------------------- | ---------------------------------------------------------------------- | -------------- | ------- | --------- | --------- |  | ------- | --------- | --------- | 
|                                          |                                                                        | 2005           |        
|                                          |                                                                        |                |        
|                                          |                                                                        | Fair           |         |           | Amortized | 
|                                          |                                                                        | Value          |         |           | Cost      | 
|                                          |                                                                        |                |         |           |           | 
|                                          |                                                                        | (In Thousands) |        
|Investment securities available for sale: |                                                                        |                |         |           |           |  |         |          
|                                          | Maturing within one year                                               |                | $       | 394,489   |           |  | $       | 394,476   |          
|                                          | Maturing after one but within five years                               |                |         | 47,048    |           |  |         | 41,106    |          
|                                          | Maturing after five but within ten years                               |                |         | 31,276    |           |  |         | 31,859    |          
|                                          | Maturing after ten years                                               |                |         | 41,949    |           |  |         | 40,536    |          
|                                          |                                                                        |                |         |           |           | 
|                                          |                                                                        |                | 514,762 |           |           |  | 507,977 |          
|                                          | Mortgage-backed securities and collateralized mortgage
    obligations |                |         | 4,189,613 |           |  |         | 4,277,256 |          
|                                          |                                                                        |                |         |           |           | 
|                                          |                                                                        | Total          |         | $         | 4,704,375 |  |         | $         | 4,785,233 | 
|                                          |                                                                        |                |         |           |           | 





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



|                  |                                        |                        |       |           |            |            |   |           |            |            | 
|----------------- | -------------------------------------- | ---------------------- | ----- | --------- | ---------- | ---------- | - | --------- | ---------- | ---------- | 
|                  |                                        | 2005                   |       |           | 2004       |           
|                  |                                        |                        |       |           |            |           
|                  |                                        | (In Thousands)         |      
|Commercial loans: |                                        |                        |       |           |            |            |   |          
|                  | Commercial, financial and agricultural |                        | $     | 3,896,207 |            |            | $ | 3,750,063 |           
|                  | Real estate  construction             |                        |       | 4,233,148 |            |            |   | 3,027,228 |           
|                  | Commercial real estate  mortgage      |                        |       | 4,080,164 |            |            |   | 3,943,163 |           
|                  |                                        |                        |       |           |            |           
|                  |                                        | Total commercial loans |       |           | 12,209,519 |            |   |           | 10,720,454 |           
|Consumer loans:   |                                        |                        |       |           |            |            |   |          
|                  | Residential real estate  mortgage     |                        |       | 1,916,951 |            |            |   | 1,566,370 |           
|                  | Equity lines of credit                 |                        |       | 1,614,608 |            |            |   | 1,401,604 |           
|                  | Equity loans                           |                        |       | 1,160,481 |            |            |   | 1,069,614 |           
|                  | Credit card                            |                        |       | 523,148   |            |            |   | 505,090   |           
|                  | Consumer  direct                      |                        |       | 423,278   |            |            |   | 484,657   |           
|                  | Consumer  indirect                    |                        |       | 3,524,230 |            |            |   | 3,109,133 |           
|                  |                                        |                        |       |           |            |           
|                  |                                        | Total consumer loans   |       |           | 9,162,696  |            |   |           | 8,136,468  |           
|                  |                                        |                        |       |           |            |           
|                  |                                        |                        | Total |           | $          | 21,372,215 |   |           | $          | 18,856,922 | 
|                  |                                        |                        |       |           |            |           



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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




|                                           |                 |                |          |         |      |   |          |         |   |   |          |          |  
|------------------------------------------ | --------------- | -------------- | -------- | ------- | ---- | - | -------- | ------- | - | - | -------- | -------- | -
|                                           |                 | 2005           |          |         | 2004 |   |          | 2003    |  
|                                           |                 |                |          |         |      |   |          |         |  
|                                           |                 | (In Thousands) |         
|Balance at beginning of year               |                 | $              | 258,339  |         |      | $ | 244,882  |         |   | $ | 232,830  |         
|Provision charged to income                |                 |                | 117,818  |         |      |   | 105,658  |         |   |   | 119,681  |         
|Allowance for loans securitized            |                 |                |         |         |      |   | (591     | )       |   |   | (3,362   | )       
|Allowance transferred to other liabilities |                 |                | (12,189  | )       |      |   |         |         |   |   |         |         
|Loans charged off                          |                 |                | (125,744 | )       |      |   | (117,597 | )       |   |   | (123,727 | )       
|Loan recoveries                            |                 |                | 28,949   |         |      |   | 25,987   |         |   |   | 19,460   |         
|                                           |                 |                |          |         |      |   |          |         |  
|                                           | Net charge-offs |                |          | (96,795 | )    |   |          | (91,610 | ) |   |          | (104,267 | )
|                                           |                 |                |          |         |      |   |          |         |  
|Balance at end of year                     |                 | $              | 267,173  |         |      | $ | 258,339  |         |   | $ | 244,882  |         
|                                           |                 |                |          |         |      |   |          |         |  







|                   |                            |                |        |        |      |   |        |        |  |   |        |        | 
|------------------ | -------------------------- | -------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                   |                            | December 31    |       
|                   |                            |                |       
|                   |                            | 2005           |        |        | 2004 |   |        | 2003   | 
|                   |                            |                |        |        |      |   |        |        | 
|                   |                            | (In Thousands) |       
|Nonaccrual loans   |                            | $              | 47,578 |        |      | $ | 49,947 |        |  | $ | 65,870 |       
|Renegotiated loans |                            |                | 698    |        |      |   | 734    |        |  |   | 218    |       
|                   |                            |                |        |        |      |   |        |        | 
|                   | Total nonperforming loans  |                |        | 48,276 |      |   |        | 50,681 |  |   |        | 66,088 | 
|Other real estate  |                            |                | 11,510 |        |      |   | 19,998 |        |  |   | 29,014 |       
|                   |                            |                |        |        |      |   |        |        | 
|                   | Total nonperforming assets |                | $      | 59,786 |      |   | $      | 70,679 |  |   | $      | 95,102 | 
|                   |                            |                |        |        |      |   |        |        | 



|                                                            |  |                |        |  |      |   |        |      |  |   |        | 
|----------------------------------------------------------- |  | -------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                                            |  | 2005           |        |  | 2004 |   |        | 2003 | 
|                                                            |  |                |        |  |      |   |        |      | 
|                                                            |  | (In Thousands) |       
|Principal balance                                           |  | $              | 47,578 |  |      | $ | 49,947 |      |  | $ | 65,870 | 
|Interest that would have been recorded under original terms |  |                | 4,789  |  |      |   | 4,819  |      |  |   | 6,228  | 
|Interest actually recorded                                  |  |                | 2,070  |  |      |   | 2,195  |      |  |   | 2,736  | 



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



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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






|                                                 |                                            |           |           |             |           |   |           |        |  
|------------------------------------------------ | ------------------------------------------ | --------- | --------- | ----------- | --------- | - | --------- | ------ | -
|                                                 |                                            |           |           | Residential |          
|                                                 |                                            | Equity    |           |             | Mortgage  |  
|                                                 |                                            | I/O Strip |           |             | I/O Strip |  
|                                                 |                                            |           |           |             |           |  
|Carrying amount/fair value of retained interests |                                            | $         | 13,672    |             |           | $ | 21,166    |       
|Weighted-average life (in years)                 |                                            |           | 0.7       |             |           |   | 1.7       |       
|Prepayment speed assumption (annual rate)        |                                            |           | 30/36 CPR | *           |           |   | 45-48 CPR |       
|                                                 | Impact on fair value of 10% adverse change |           | $         | (403        | )         |   | $         | (722   | )
|                                                 | Impact on fair value of 20% adverse change |           | $         | (770        | )         |   | $         | (1,334 | )
|Expected credit losses (annual rate)             |                                            |           | 0.68      | %           |           |   | 0.25      | %     
|                                                 | Impact on fair value of 10% adverse change |           | $         | (203        | )         |   | $         | (61    | )
|                                                 | Impact on fair value of 20% adverse change |           | $         | (406        | )         |   | $         | (122   | )
|Residual cash flows discount rate (annual)       |                                            |           | 10.0      | %           |           |   | 10.0      | %     
|                                                 | Impact on fair value of 10% adverse change |           | $         | (159        | )         |   | $         | (291   | )
|                                                 | Impact on fair value of 20% adverse change |           | $         | (314        | )         |   | $         | (575   | )






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







|                                   |  |           |      |   |      |           |      |      |  |  |      |   |  |      |      |   |  |  |      |  
|---------------------------------- |  | --------- | ---- | - | ---- | --------- | ---- | ---- |  |  | ---- | - |  | ---- | ---- | - |  |  | ---- | -
|                                   |  |           |      |   |      | Projected |     
|                                   |  | Inception |      |   |      |           |      |     
|                                   |  | to Date   |      |   | 2005 |           |      | 2006 |  |  | 2007 |   |  | 2008 |     
|                                   |  |           |      |   |      |           |      |      |  |  |      |   |  |      |     
|Actual and Projected Credit Losses |  |           | 0.45 | % |      |           | 0.21 | %    |  |  | 0.11 | % |  |      | 0.08 | % |  |  | 0.04 | %

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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






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





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



|                          |  |                        |         |  |      |   |         |      |  |   |         | 
|------------------------- |  | ---------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                          |  | Year Ended December 31 |        
|                          |  |                        |        
|                          |  | 2005                   |         |  | 2004 |   |         | 2003 | 
|                          |  |                        |         |  |      |   |         |      | 
|Proceeds from collections |  | $                      | 403,520 |  |      | $ | 619,600 |      |  | $ | 779,438 | 
|Servicing fees received   |  |                        | 3,324   |  |      |   | 4,219   |      |  |   | 2,437   | 

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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




|                                                                               |                         |                 |            |            |                 |   |        |            |  |   |        |        | 
|------------------------------------------------------------------------------ | ----------------------- | --------------- | ---------- | ---------- | --------------- | - | ------ | ---------- |  | - | ------ | ------ | 
|                                                                               |                         |                 |            | Principal  |                 |   |       
|                                                                               |                         |                 |            | Amount of  |                 |   |       
|                                                                               |                         | Total Principal |            |            | Nonaccrual and  |   |        |           
|                                                                               |                         | Amount of       |            |            | 90 Days or More |   |        | Net Credit | 
|                                                                               |                         | Loans           |            |            | Past Due Loans  |   |        | Losses     | 
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|December 31, 2005:                                                             |                         |                 |            |            |                 |   |        |            |  |   |        |       
|Loan category:                                                                 |                         |                 |            |            |                 |   |        |            |  |   |        |       
|Commercial, financial and agricultural                                         |                         | $               | 3,910,405  |            |                 | $ | 11,449 |            |  | $ | 11,827 |       
|Commercial real estate  mortgage                                              |                         |                 | 4,202,966  |            |                 |   | 15,527 |            |  |   | 1,576  |       
|Real estate  construction                                                     |                         |                 | 4,233,148  |            |                 |   | 2,239  |            |  |   | 647    |       
|Residential real estate                                                        |                         |                 | 5,783,224  |            |                 |   | 28,031 |            |  |   | 7,087  |       
|Credit card                                                                    |                         |                 | 523,148    |            |                 |   | 7,278  |            |  |   | 36,087 |       
|Consumer                                                                       |                         |                 | 3,947,508  |            |                 |   | 9,589  |            |  |   | 41,810 |       
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|                                                                               | Total managed loans     |                 |            | 22,600,399 |                 |   | $      | 74,113     |  |   | $      | 99,034 | 
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|Loans securitized and sold to third parties                                    |                         |                 | (137,447   | )          |                 |   |        |            |  |   |        |       
|Loans securitized and classified as investment securities
    held to maturity |                         |                 | (1,090,737 | )          |                 |   |        |            |  |   |        |       
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|                                                                               | Loans held in portfolio |                 | $          | 21,372,215 |                 |   |        |            |  |   |        |        | 
|                                                                               |                         |                 |            |            |                 |   |        |            | 
|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                                                                       |                         |                 | 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 |                 |   |        |            |  |   |        |        | 
|                                                                               |                         |                 |            |            |                 |   |        |            | 



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




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







|                              |                            |                                    |         |        |                   |   |         |              |         |   |                |        |        |              |         |        |              |   |         |         |         |   |         |        |        | 
|----------------------------- | -------------------------- | ---------------------------------- | ------- | ------ | ----------------- | - | ------- | ------------ | ------- | - | -------------- | ------ | ------ | ------------ | ------- | ------ | ------------ | - | ------- | ------- | ------- | - | ------- | ------ | ------ | 
|                              |                            | December 31, 2005                  |         |        | December 31, 2004 |  
|                              |                            |                                    |         |        |                   |  
|                              |                            | Gross Carrying                     |         |        | Accumulated       |   |         | Net Carrying |         |   | Gross Carrying |        |        | Accumulated  |         |        | Net Carrying |  
|                              |                            | Amount                             |         |        | Amortization      |   |         | Value        |         |   | Amount         |        |        | Amortization |         |        | Value        |  
|                              |                            |                                    |         |        |                   |   |         |              |         |   |                |        |        |              |         |        |              |  
|                              |                            | (In Thousands)                     |        
|Nonamortizing goodwill        |                            | $                                  | 370,003 |        |                   | $ | (53,806 | )            |         | $ | 316,197        |        |        | $            | 356,351 |        |              | $ | (53,732 | )       |         | $ | 302,619 |       
|                              |                            |                                    |         |        |                   |   |         |              |         |   |                |        |        |              |         |        |              |  
|Amortizing intangible assets: |                            |                                    |         |        |                   |   |         |              |         |   |                |        |        |              |         |        |              |   |         |         |         |   |         |       
|                              | Core deposit intangibles   |                                    | $       | 63,890 |                   |   | $       | (56,762      | )       |   | $              | 7,128  |        |              | $       | 63,890 |              |   | $       | (53,173 | )       |   | $       | 10,717 |       
|                              | Other customer intangibles |                                    |         | 43,334 |                   |   |         | (13,328      | )       |   |                | 30,006 |        |              |         | 39,271 |              |   |         | (10,766 | )       |   |         | 28,505 |       
|                              |                            |                                    |         |        |                   |   |         |              |         |   |                |        |        |              |         |        |              |  
|                              |                            | Total amortizing intangible assets |         | $      | 107,224           |   |         | $            | (70,090 | ) |                | $      | 37,134 |              |         | $      | 103,161      |   |         | $       | (63,939 | ) |         | $      | 39,222 | 
|                              |                            |                                    |         |        |                   |   |         |              |         |   |                |        |        |              |         |        |              |  





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



|           |       |   |           |           | 
|---------- | ----- | - | --------- | --------- | 
|2006       |       | $ | 3,545,141 |          
|2007       |       |   | 972,426   |          
|2008       |       |   | 627,205   |          
|2009       |       |   | 200,510   |          
|2010       |       |   | 410,914   |          
|Thereafter |       |   | 100,202   |          
|           |       |   |          
|           | Total |   | $         | 5,856,398 | 
|           |       |   |          

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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




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



|                                               |       |                             |           |           |           |  |      |         |          |   |           |           |           |  |      |   |  | 
|---------------------------------------------- | ----- | --------------------------- | --------- | --------- | --------- |  | ---- | ------- | -------- | - | --------- | --------- | --------- |  | ---- | - |  | 
|                                               |       | December 31                 |          
|                                               |       |                             |          
|                                               |       | 2005                        |           |           | 2004      | 
|                                               |       |                             |           |           |           | 
|                                               |       |                             |           | Average   |           |  |      |         | Average  |  
|                                               |       |                             |           | Interest  |           |  |      |         | Interest |  
|                                               |       | Ending                      |           |           | Rate At   |  |      | Ending  |          |   | Rate At   |          
|                                               |       | Balance                     |           |           | Year-End  |  |      | Balance |          |   | Year-End  |          
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          
|                                               |       | (In Thousands)              |          
|Federal funds purchased                        |       | $                           | 2,802,536 |           |           |  | 4.04 | %       |          | $ | 4,218,045 |           |           |  | 2.17 | %
|Securities sold under agreements to repurchase |       |                             | 300,036   |           |           |  | 3.82 |         |          |   | 313,959   |           |           |  | 1.73 |  
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          
|                                               | Total |                             |           | 3,102,572 |           |  |      |         |          |   |           | 4,532,004 |           |  |      |   | 
|Short sales                                    |       |                             | 4,861     |           |           |  | 3.33 |         |          |   | 2,956     |           |           |  | 2.99 |  
|Commercial paper                               |       |                             | 76,764    |           |           |  | 3.39 |         |          |   | 97,498    |           |           |  | 1.25 |  
|Other short-term borrowings                    |       |                             | 571,125   |           |           |  | 3.98 |         |          |   | 75,317    |           |           |  | 1.74 |  
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          
|                                               | Total |                             |           | 652,750   |           |  |      |         |          |   |           | 175,771   |           |  |      |   | 
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          
|                                               |       | Total short-term borrowings |           | $         | 3,755,322 |  |      |         |          |   |           | $         | 4,707,775 |  |      |   |  | 
|                                               |       |                             |           |           |           |  |      |         |          |   |           |          



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




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



|                         |                                                                 |                                              |                     |                |      |   |           |           |         |           |           |           |         |           | 
|------------------------ | --------------------------------------------------------------- | -------------------------------------------- | ------------------- | -------------- | ---- | - | --------- | --------- | ------- | --------- | --------- | --------- | ------- | --------- | 
|                         |                                                                 |                                              |                     | December 31    |     
|                         |                                                                 | Maturity                                     |                     |                |      |  
|                         |                                                                 | Dates                                        |                     |                | 2005 |   |           | 2004      |        
|                         |                                                                 |                                              |                     |                |      |   |           |           |        
|                         |                                                                 |                                              |                     | (In Thousands) |     
|FHLB Advances:           |                                                                 |                                              |                     |                |      |   |           |           |         |           |           |          
|                         | LIBOR-based floating rate (weighted average rate of 4.35%)      |                                              |                     | 2005-2012      |      |   | $         | 1,625,000 |         |           | $         | 1,825,000 |        
|                         | CMS-based floating rate (weighted average rate of 3.91%)        |                                              |                     | 2006-2009      |      |   |           | 800,000   |         |           |           | 800,000   |        
|                         | Fixed rate, callable quarterly (weighted average rate of 4.39%) |                                              |                     | 2005-2014      |      |   |           | 688,178   |         |           |           | 788,536   |        
|                         | Unamortized discount                                            |                                              |                     |                |      |   |           | (12,142   | )       |           |           | (15,368   | )      
|                         |                                                                 |                                              |                     |                |      |   |           |           |        
|                         |                                                                 |                                              | Total FHLB Advances |                |      |   |           |           |         | 3,101,036 |           |           |         | 3,398,168 | 
|Subordinated Debentures: |                                                                 |                                              |                     |                |      |   |           |           |         |           |           |          
|                         | 8.10% subordinated debentures                                   |                                              |                     | 2009           |      |   |           | 165,000   |         |           |           | 165,000   |        
|                         | 6.45% subordinated debentures                                   |                                              |                     | 2009           |      |   |           | 96,700    |         |           |           | 96,700    |        
|                         | 5.50% subordinated debentures                                   |                                              |                     | 2020           |      |   |           | 300,000   |         |           |           |          |        
|                         | Fair value of hedged subordinated debentures                    |                                              |                     |                |      |   |           | 23,517    |         |           |           | 33,444    |        
|                         | Unamortized discount                                            |                                              |                     |                |      |   |           | (3,700    | )       |           |           | (981      | )      
|                         |                                                                 |                                              |                     |                |      |   |           |           |        
|                         |                                                                 | Total Subordinated Debentures                |                     |                |      |   |           |           | 581,517 |           |           |           | 294,163 |          
|Capital Securities:      |                                                                 |                                              |                     |                |      |   |           |           |         |           |           |          
|                         | 8.23% debentures payable to Compass Trust I*                    |                                              |                     | 2027           |      |   |           | 103,093   |         |           |           | 103,093   |        
|                         | 7.35% debentures payable to Compass Trust III*                  |                                              |                     | 2032           |      |   |           | 309,279   |         |           |           | 309,279   |        
|                         | Unamortized discount on hedged Capital Securities               |                                              |                     |                |      |   |           | (1,969    | )       |           |           | (3,544    | )      
|                         | Class B Preferred Stock                                         |                                              |                     |                |      |   |           | 18,077    |         |           |           | 18,012    |        
|                         |                                                                 |                                              |                     |                |      |   |           |           |        
|                         |                                                                 | Total Capital Securities and Preferred Stock |                     |                |      |   |           |           | 428,480 |           |           |           | 426,840 |          
|8.25% mortgage payable   |                                                                 |                                              | 2008                |                |      |   | 429       |           |         |           | 600       |          
|                         |                                                                 |                                              |                     |                |      |   |           |           |        
|                         |                                                                 |                                              |                     |                |      | $ | 4,111,462 |           |         | $         | 4,119,771 |          
|                         |                                                                 |                                              |                     |                |      |   |           |           |        






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



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




|          |             |                |   |         |              |  |   |            |         |  |          |         |         |  |   |     |     | 
|--------- | ----------- | -------------- | - | ------- | ------------ |  | - | ---------- | ------- |  | -------- | ------- | ------- |  | - | --- | --- | 
|          |             | FHLB           |   |         | Subordinated |  |   | Capital    |         |  | Mortgage |        
|          |             | Advances       |   |         | Debentures   |  |   | Securities |         |  | Payable  |        
|          |             |                |   |         |              |  |   |            |         |  |          |        
|          |             | (In Thousands) |  
|Maturing: |             |                |   |         |              |  |   |            |         |  |          |         |         |  |   |    
|          | 2006        |                | $ | 600,000 |              |  | $ |           |         |  | $        |        |         |  | $ | 186 |    
|          | 2007        |                |   | 100,000 |              |  |   |           |         |  |          |        |         |  |   | 202 |    
|          | 2008        |                |   | 710,345 |              |  |   |           |         |  |          |        |         |  |   | 41  |    
|          | 2009*       |                |   | 612,858 |              |  |   | 280,424    |         |  |          |        |         |  |   |    |    
|          | 2010        |                |   | 200,000 |              |  |   |           |         |  |          |        |         |  |   |    |    
|          | Thereafter* |                |   | 877,833 |              |  |   | 301,093    |         |  |          | 428,480 |         |  |   |    |    
|          |             |                |   |         |              |  |   |            |         |  |          |        
|          |             | Total          |   | $       | 3,101,036    |  |   | $          | 581,517 |  |          | $       | 428,480 |  |   | $   | 429 | 
|          |             |                |   |         |              |  |   |            |         |  |          |        






|  |                                                                                             
|- | --------------------------------------------------------------------------------------------
|* | Includes the fair value of hedged subordinated debentures and
    the unamortized discounts.



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



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



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






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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




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







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



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



|                               |                                |                |         |            |         |   |        |           |            |   |         |           |     |   |        |         | 
|------------------------------ | ------------------------------ | -------------- | ------- | ---------- | ------- | - | ------ | --------- | ---------- | - | ------- | --------- | --- | - | ------ | ------- | 
|                               |                                | 2005           |         |            | 2004    |  
|                               |                                |                |         |            |         |  
|                               |                                |                |         | Other Than |         |   |        |           | Other Than |  
|                               |                                | Trading        |         |            | Trading |   |        | Trading   |            |   | Trading |          
|                               |                                |                |         |            |         |   |        |           |            |   |         |          
|                               |                                | (In Thousands) |        
|Forward and futures contracts  |                                | $              | 304,233 |            |         | $ | 25,948 |           |            | $ | 271,863 |           |     | $ | 18,708 |        
|Interest rate swap agreements: |                                |                |         |            |         |   |        |           |            |   |         |           |     |   |        |        
|                               | Pay fixed versus receive float |                |         | 1,723,291  |         |   |        | 200,000   |            |   |         | 1,384,586 |     |   |        |        | 
|                               | Receive fixed versus pay float |                |         | 1,703,799  |         |   |        | 1,258,108 |            |   |         | 1,944,325 | (2) |   |        | 961,700 | 
|                               | Pay float versus receive float |                |         | 22,000     |         |   |        |          |            |   |         |          |     |   |        |        | 
|Written options                |                                |                | 401,950 |            |         |   | 32,044 | (1)       |            |   | 63,229  |           |     |   | 19,812 | (1)    
|Purchased options              |                                |                | 381,941 |            |         |   |       |           |            |   | 97,358  |           |     |   |       |        






|    |                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Written options classified as other than trading represent
    interest rate loan commitments related to the Companys
    mortgage banking activities
|   
|(2) | Includes economic hedges                                                                                                                              







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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003








over-the


|                   |                               |                   |   |           |                   |  |   |          |   |  |          |         |  |  |   |        |  
|------------------ | ----------------------------- | ----------------- | - | --------- | ----------------- |  | - | -------- | - |  | -------- | ------- |  |  | - | ------ | -
|                   |                               | December 31, 2005 |   |           | December 31, 2004 | 
|                   |                               |                   |   |           |                   | 
|                   |                               | Notional          |   |           | Carrying          |  |   | Notional |   |  | Carrying |        
|                   |                               | Value             |   |           | Value             |  |   | Value    |   |  | Value    |        
|                   |                               |                   |   |           |                   |  |   |          |   |  |          |        
|                   |                               | (In Thousands)    |  
|Cash-Flow Hedges:  |                               |                   |   |           |                   |  |   |          |   |  |          |         |  |  |   |       
|                   | Interest rate swap agreements |                   | $ | 400,000   |                   |  | $ | (1,110   | ) |  | $        | 700,000 |  |  | $ | (3,654 | )
|Fair-Value Hedges: |                               |                   |   |           |                   |  |   |          |   |  |          |         |  |  |   |       
|                   | Interest rate swap agreements |                   |   | 1,058,108 |                   |  |   | 22,535   |   |  |          | 261,700 |  |  |   | 33,444 |  
|                   | Forward contracts(1)          |                   |   | 25,948    |                   |  |   | (99      | ) |  |          | 18,708  |  |  |   | 9      |  






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





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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






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













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



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






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





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

P-1/




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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003








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





|           |  |                 |         |  |               |   |       | 
|---------- |  | --------------- | ------- |  | ------------- | - | ----- | 
|           |  | Operating Lease |         |  | Capital Lease |  
|           |  | Obligations     |         |  | Obligations   |  
|           |  |                 |         |  |               |  
|2006       |  | $               | 20,678  |  |               | $ | 121   | 
|2007       |  |                 | 19,430  |  |               |   | 124   | 
|2008       |  |                 | 17,509  |  |               |   | 128   | 
|2009       |  |                 | 15,215  |  |               |   | 132   | 
|2010       |  |                 | 12,416  |  |               |   | 135   | 
|Thereafter |  |                 | 76,523  |  |               |   | 2,568 | 
|           |  |                 |         |  |               |  
|           |  | $               | 161,771 |  |               | $ | 3,208 | 
|           |  |                 |         |  |               |  





|                                         |  |                |            |  |      |   |            | 
|---------------------------------------- |  | -------------- | ---------- |  | ---- | - | ---------- | 
|                                         |  | 2005           |            |  | 2004 |  
|                                         |  |                |            |  |      |  
|                                         |  | (In Thousands) |           
|Commitments to extend credit             |  | $              | 11,498,497 |  |      | $ | 11,265,440 | 
|Standby and commercial letters of credit |  |                | 942,176    |  |      |   | 716,195    | 



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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




















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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




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

Gramm-Leach




Gramm-Leach




|                         |              |                    |   |           |                |  |  |          |   |  |       |           |  |        |  |      |       |  |   |           |  |  |  |      |  
|------------------------ | ------------ | ------------------ | - | --------- | -------------- |  |  | -------- | - |  | ----- | --------- |  | ------ |  | ---- | ----- |  | - | --------- |  |  |  | ---- | -
|                         |              | Total              |   |           |                |  | 
|                         |              | Qualifying Capital |   |           | Tier I Capital |  |  | Leverage |  
|                         |              |                    |   |           |                |  |  |          |  
|                         |              | Amount             |   |           | Ratio          |  |  | Amount   |   |  | Ratio |           |  | Amount |  |      | Ratio | 
|                         |              |                    |   |           |                |  |  |          |   |  |       |           |  |        |  |      |       | 
|As of December 31, 2005: |              |                    |   |           |                |  |  |          |   |  |       |           |  |        |  |      |       |  |   |           |  |  |  |     
|                         | Consolidated |                    | $ | 3,038,507 |                |  |  | 11.48    | % |  | $     | 2,313,682 |  |        |  | 8.74 | %     |  | $ | 2,313,682 |  |  |  | 7.70 | %
|                         | Compass Bank |                    |   | 2,867,398 |                |  |  | 10.86    |   |  |       | 2,090,573 |  |        |  | 7.92 |       |  |   | 2,090,573 |  |  |  | 6.97 |  
|As of December 31, 2004: |              |                    |   |           |                |  |  |          |   |  |       |           |  |        |  |      |       |  |   |           |  |  |  |     
|                         | Consolidated |                    | $ | 2,566,507 |                |  |  | 11.17    | % |  | $     | 2,099,593 |  |        |  | 9.14 | %     |  | $ | 2,099,593 |  |  |  | 7.55 | %
|                         | Compass Bank |                    |   | 2,418,343 |                |  |  | 10.55    |   |  |       | 1,891,429 |  |        |  | 8.25 |       |  |   | 1,891,429 |  |  |  | 6.83 |  





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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






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







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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




|                                                               |  |         |           |          |       |   |       |         |          |   |            |   |  |          |       |  |       |   |            |   |  |   |       | 
|-------------------------------------------------------------- |  | ------- | --------- | -------- | ----- | - | ----- | ------- | -------- | - | ---------- | - |  | -------- | ----- |  | ----- | - | ---------- | - |  | - | ----- | 
|                                                               |  | 2005    |           |          | 2004  |   |       | 2003    |         
|                                                               |  |         |           |          |       |   |       |         |         
|                                                               |  |         |           | Weighted |       |   |       |         | Weighted |   |            |   |  | Weighted |      
|                                                               |  |         |           | Average  |       |   |       |         | Average  |   |            |   |  | Average  |      
|                                                               |  |         |           | Exercise |       |   |       |         | Exercise |   |            |   |  | Exercise |      
|                                                               |  | Options |           |          | Price |   |       | Options |          |   | Price      |   |  | Options  |       |  | Price |  
|                                                               |  |         |           |          |       |   |       |         |          |   |            |   |  |          |       |  |       |  
|Outstanding, beginning of the year                             |  |         | 7,767,970 |          |       | $ | 28.42 |         |          |   | 7,723,209  |   |  | $        | 25.54 |  |       |   | 7,112,497  |   |  | $ | 23.36 | 
|                                                              
|Granted                                                        |  |         | 1,434,789 |          |       |   | 43.87 |         |          |   | 1,499,337  |   |  |          | 38.44 |  |       |   | 1,806,794  |   |  |   | 31.82 | 
|                                                              
|Exercised                                                      |  |         | (997,880  | )        |       |   | 23.99 |         |          |   | (1,268,139 | ) |  |          | 22.75 |  |       |   | (1,032,136 | ) |  |   | 21.16 | 
|                                                              
|Forfeited                                                      |  |         | (193,737  | )        |       |   | 36.86 |         |          |   | (186,437   | ) |  |          | 30.00 |  |       |   | (163,946   | ) |  |   | 27.57 | 
|                                                               |  |         |           |          |       |   |       |         |          |   |            |   |  |          |       |  |       |  
|                                                              
|Outstanding, end of the year                                   |  |         | 8,011,142 |          |       | $ | 31.54 |         |          |   | 7,767,970  |   |  | $        | 28.42 |  |       |   | 7,723,209  |   |  | $ | 25.54 | 
|                                                               |  |         |           |          |       |   |       |         |          |   |            |   |  |          |       |  |       |  
|Weighted average fair value of options granted during the year |  | $       | 7.36      |          |       |   |       |         |          | $ | 7.14       |   |  |          |       |  |       | $ | 5.90       |   |  |   |       | 
|                                                              
|Exercisable, end of the
    year                               |  |         | 6,927,698 |          |       |   |       |         |          |   | 5,055,339  |   |  |          |       |  |       |   | 4,747,002  |   |  |   |       | 





|                         |  |             |           |           |          |           |         |             |  |  |      | 
|------------------------ |  | ----------- | --------- | --------- | -------- | --------- | ------- | ----------- |  |  | ---- | 
|                         |  |             |           |           |          | Weighted- |        
|                         |  |             |           | Weighted- |          |           | Average |            
|                         |  | Stock       |           |           | Average  |           |         | Remaining   | 
|                         |  | Options     |           |           | Exercise |           |         | Contractual | 
|Range of Exercise Prices |  | Outstanding |           |           | Price    |           |         | Life        | 
|                         |  |             |           |           |          |           |         |             | 
|Less than $20.00         |  |             | 689,970   |           |          | $         | 17.18   |             |  |  | 3.23 | 
|$20.00 - $24.99          |  |             | 1,396,956 |           |          |           | 22.10   |             |  |  | 4.18 | 
|$25.00 - $29.99          |  |             | 1,665,809 |           |          |           | 28.96   |             |  |  | 4.94 | 
|$30.00 - $34.99          |  |             | 1,410,556 |           |          |           | 31.74   |             |  |  | 7.19 | 
|$35.00 - $39.99          |  |             | 1,420,437 |           |          |           | 38.22   |             |  |  | 8.27 | 
|$40.00 or more           |  |             | 1,427,414 |           |          |           | 43.89   |             |  |  | 9.27 | 
|                         |  |             |           |           |          |           |         |             | 
|                         |  |             | 8,011,142 |           |          |           |         |             |  |  |      | 
|                         |  |             |           |           |          |           |         |             | 





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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






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



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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003


Obligations and Funded Status


|                             |                                                        |                                          |   |         |         |  |   |         |         | 
|---------------------------- | ------------------------------------------------------ | ---------------------------------------- | - | ------- | ------- |  | - | ------- | ------- | 
|                             |                                                        | For the Year Ended                       |  
|                             |                                                        | December 31                              |  
|                             |                                                        |                                          |  
|                             |                                                        | 2005                                     |   |         | 2004    | 
|                             |                                                        |                                          |   |         |         | 
|                             |                                                        | (In Thousands)                           |  
|Change in benefit obligation |                                                        |                                          |   |         |         |  |   |        
|                             | Benefit obligation at beginning of year                |                                          | $ | 168,861 |         |  | $ | 136,147 |        
|                             | Service cost                                           |                                          |   | 7,608   |         |  |   | 6,829   |        
|                             | Interest cost                                          |                                          |   | 9,527   |         |  |   | 8,448   |        
|                             | Actuarial loss                                         |                                          |   | 5,933   |         |  |   | 20,490  |        
|                             | Benefits paid                                          |                                          |   | (3,104  | )       |  |   | (3,053  | )      
|                             |                                                        |                                          |   |         |         | 
|                             |                                                        | Benefit obligation at end of year        |   |         | 188,825 |  |   |         | 168,861 | 
|                             |                                                        |                                          |   |         |         | 
|Change in plan assets        |                                                        |                                          |   |         |         |  |   |        
|                             | Fair value of plan assets at the beginning of the year |                                          |   | 164,258 |         |  |   | 143,552 |        
|                             | Actual return on plan assets                           |                                          |   | 9,749   |         |  |   | 10,539  |        
|                             | Employer contribution                                  |                                          |   | 8,000   |         |  |   | 13,220  |        
|                             | Benefits paid                                          |                                          |   | (3,104  | )       |  |   | (3,053  | )      
|                             |                                                        |                                          |   |         |         | 
|                             |                                                        | Fair value of plan assets at end of year |   |         | 178,903 |  |   |         | 164,258 | 
|                             |                                                        |                                          |   |         |         | 
|                             | Funded status                                          |                                          |   | (9,922  | )       |  |   | (4,603  | )      
|                             | Unrecognized net actuarial loss                        |                                          |   | 55,177  |         |  |   | 49,726  |        
|                             | Unrecognized prior service cost                        |                                          |   | 231     |         |  |   | 266     |        
|                             |                                                        |                                          |   |         |         | 
|                             |                                                        | Net amount recognized                    |   | $       | 45,486  |  |   | $       | 45,389  | 
|                             |                                                        |                                          |   |         |         | 



|                                       |                       |                |        |        |      |   |        |        | 
|-------------------------------------- | --------------------- | -------------- | ------ | ------ | ---- | - | ------ | ------ | 
|                                       |                       | December 31    |       
|                                       |                       |                |       
|                                       |                       | 2005           |        |        | 2004 |  
|                                       |                       |                |        |        |      |  
|                                       |                       | (In Thousands) |       
|Prepaid benefit cost                   |                       | $              | 45,486 |        |      | $ | 45,389 |       
|Accrued benefit liability              |                       |                |       |        |      |   |       |       
|Intangible asset                       |                       |                |       |        |      |   |       |       
|Accumulated other comprehensive income |                       |                |       |        |      |   |       |       
|                                       |                       |                |        |        |      |  
|                                       | Net amount recognized |                | $      | 45,486 |      |   | $      | 45,389 | 
|                                       |                       |                |        |        |      |  



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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003


Components of Net Periodic Benefit Cost


|                                     |  |                    |         |   |      |   |         |  
|------------------------------------ |  | ------------------ | ------- | - | ---- | - | ------- | -
|                                     |  | For the Year Ended |        
|                                     |  | December 31        |        
|                                     |  |                    |        
|                                     |  | 2005               |         |   | 2004 |  
|                                     |  |                    |         |   |      |  
|                                     |  | (In Thousands)     |        
|Service cost                         |  | $                  | 7,608   |   |      | $ | 6,829   |  
|Interest cost                        |  |                    | 9,527   |   |      |   | 8,448   |  
|Expected return on plan assets       |  |                    | (12,456 | ) |      |   | (11,128 | )
|Amortization of prior service cost   |  |                    | 34      |   |      |   | 34      |  
|Recognized net actuarial (gain) loss |  |                    | 3,190   |   |      |   | 1,634   |  
|                                     |  |                    |         |   |      |  
|Net periodic benefit cost            |  | $                  | 7,903   |   |      | $ | 5,817   |  
|                                     |  |                    |         |   |      |  

Additional Information


|                                                                                        |                                |                |   |      |      |   |   |      |  
|--------------------------------------------------------------------------------------- | ------------------------------ | -------------- | - | ---- | ---- | - | - | ---- | -
|                                                                                        |                                | For the Year   |  
|                                                                                        |                                | Ended          |  
|                                                                                        |                                | December 31,   |  
|                                                                                        |                                |                |  
|                                                                                        |                                | 2005           |   |      | 2004 |  
|                                                                                        |                                |                |   |      |      |  
|                                                                                        |                                | (In Thousands) |  
|Increase in minimum liability included in other comprehensive
    income                |                                | $              |  |      |      | $ |  |     
|Weighted average assumptions used to determine benefit
    obligation at December 31,   |                                |                |   |      |      |   |   |     
|                                                                                        | Discount rate                  |                |   | 5.50 | %    |   |   | 5.75 | %
|                                                                                        | Rate of compensation increase  |                |   | 4.00 |      |   |   | 4.00 |  
|Weighted average assumptions used to determine net cost for
    year ended December 31, |                                |                |   |      |      |   |   |     
|                                                                                        | Discount rate                  |                |   | 5.75 | %    |   |   | 6.25 | %
|                                                                                        | Expected return on plan assets |                |   | 7.50 |      |   |   | 7.50 |  
|                                                                                        | Rate of compensation increase  |                |   | 4.00 |      |   |   | 3.50 |  



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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003


Plan Assets




|                  |       |               |      |       |      |  |      |       |  
|----------------- | ----- | ------------- | ---- | ----- | ---- |  | ---- | ----- | -
|                  |       | Percentage of |     
|                  |       | Plan Assets   |     
|                  |       | December 31   |     
|                  |       |               |     
|Asset Category    |       | 2005          |      |       | 2004 | 
|                  |       |               |      |       |      | 
|Cash Securities   |       |               | 1.2  | %     |      |  | 2.1  | %    
|Equity Securities |       |               | 59.8 |       |      |  | 60.0 |      
|Debt Securities   |       |               | 39.0 |       |      |  | 37.9 |      
|                  |       |               |      |       |      | 
|                  | Total |               |      | 100.0 | %    |  |      | 100.0 | %
|                  |       |               |      |       |      | 







| |                                                          
| | ---------------------------------------------------------
| | Supplemental Retirement & Deferred Compensation
    Plans





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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




| |                                         
| | ----------------------------------------
| | Defined Contribution Profit Sharing Plan





| |                              
| | -----------------------------
| | Employee Stock Ownership Plan





| |                                         
| | ----------------------------------------
| | Director & Executive Stock Purchase Plan



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






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



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



















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



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






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



|                             |         |                |         |         |         |   |         |         |         |   |         |         |         |  
|---------------------------- | ------- | -------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | -
|                             |         | 2005           |         |         | 2004    |   |         | 2003    |        
|                             |         |                |         |         |         |   |         |         |        
|                             |         | (In Thousands) |        
|Current income tax expense:  |         |                |         |         |         |   |         |         |         |   |         |        
|                             | Federal |                | $       | 226,474 |         |   | $       | 174,118 |         |   | $       | 167,415 |        
|                             | State   |                |         | 10,877  |         |   |         | 7,772   |         |   |         | 9,747   |        
|                             |         |                |         |         |         |   |         |         |        
|                             |         | Total          |         |         | 237,351 |   |         |         | 181,890 |   |         |         | 177,162 |  
|                             |         |                |         |         |         |   |         |         |        
|Deferred income tax benefit: |         |                |         |         |         |   |         |         |         |   |         |        
|                             | Federal |                |         | (29,857 | )       |   |         | (1,749  | )       |   |         | (6,376  | )      
|                             | State   |                |         | (1,288  | )       |   |         | (494    | )       |   |         | (2,394  | )      
|                             |         |                |         |         |         |   |         |         |        
|                             |         | Total          |         |         | (31,145 | ) |         |         | (2,243  | ) |         |         | (8,770  | )
|                             |         |                |         |         |         |   |         |         |        
|Total income tax expense     |         | $              | 206,206 |         |         | $ | 179,647 |         |         | $ | 168,392 |        
|                             |         |                |         |         |         |   |         |         |        





|                                             |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |   |         |        |         |  |      |      |      |  
|-------------------------------------------- | ---------------------------------------------------------- | ------------------ | ------- | --------- | -------- |  | ---- | ------ | --------- | - | -------- | ------ | ------- | --------- | ---- | ---- | -------- | - | ------- | ------ | ------- |  | ---- | ---- | ---- | -
|                                             |                                                            | 2005               |         |           | 2004     |  |      | 2003   |          
|                                             |                                                            |                    |         |           |          |  |      |        |          
|                                             |                                                            |                    |         | Percent   |          |  |      |        | Percent   |   |          |        |         | Percent   |     
|                                             |                                                            |                    |         | of Pretax |          |  |      |        | of Pretax |   |          |        |         | of Pretax |     
|                                             |                                                            | Amount             |         |           | Earnings |  |      | Amount |           |   | Earnings |        |         | Amount    |      |      | Earnings |  
|                                             |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |  
|                                             |                                                            | (In Thousands)     |        
|Income tax expense at federal statutory rate |                                                            | $                  | 212,813 |           |          |  | 35.0 | %      |           | $ | 188,941  |        |         |           | 35.0 | %    |          | $ | 173,975 |        |         |  | 35.0 | %   
|Increase (decrease) resulting from:          |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |   |         |        |         |  |      |     
|                                             | Tax-exempt income                                          |                    |         | (9,101    | )        |  |      | (1.5   | )         |   |          | (8,631 | )       |           |      | (1.6 | )        |   |         | (8,538 | )       |  |      | (1.7 | )   
|                                             | State income tax expense net of federal income tax benefit |                    |         | 6,233     |          |  |      | 1.0    |           |   |          | 4,731  |         |           |      | 0.9  |          |   |         | 4,780  |         |  |      | 1.0  |     
|                                             | Other                                                      |                    |         | (3,739    | )        |  |      | (0.6   | )         |   |          | (5,394 | )       |           |      | (1.0 | )        |   |         | (1,825 | )       |  |      | (0.4 | )   
|                                             |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |  
|                                             |                                                            | Income tax expense |         | $         | 206,206  |  |      |        | 33.9      | % |          | $      | 179,647 |           |      |      | 33.3     | % |         | $      | 168,392 |  |      |      | 33.9 | %
|                                             |                                                            |                    |         |           |          |  |      |        |           |   |          |        |         |           |      |      |          |  

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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




|                                   |                                                                                                                          |                   |        |         |         |   |        |        |         | 
|---------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ----------------- | ------ | ------- | ------- | - | ------ | ------ | ------- | 
|                                   |                                                                                                                          | 2005              |        |         | 2004    |  
|                                   |                                                                                                                          |                   |        |         |         |  
|                                   |                                                                                                                          | (In Thousands)    |       
|Deferred tax assets:               |                                                                                                                          |                   |        |         |         |   |        |       
|                                   | Allowance for loan losses                                                                                                |                   | $      | 103,455 |         |   | $      | 98,721 |        
|                                   | Net unrealized losses on securities available for sale, hedging
    instruments and additional minimum pension liability |                   |        | 38,562  |         |   |        | 14,080 |        
|                                   | Other deferred tax assets                                                                                                |                   |        | 33,950  |         |   |        | 23,235 |        
|                                   |                                                                                                                          |                   |        |         |         |  
|                                   |                                                                                                                          | Total assets      |        |         | 175,967 |   |        |        | 136,036 | 
|                                   |                                                                                                                          |                   |        |         |         |  
|Deferred tax liabilities:          |                                                                                                                          |                   |        |         |         |   |        |       
|                                   | Premises and equipment                                                                                                   |                   |        | 34,415  |         |   |        | 42,884 |        
|                                   | Lease financing                                                                                                          |                   |        | 11,441  |         |   |        | 24,145 |        
|                                   | Core deposit and other acquired intangibles                                                                              |                   |        | 20,960  |         |   |        | 19,607 |        
|                                   | Prepaid pension benefit cost                                                                                             |                   |        | 17,292  |         |   |        | 17,157 |        
|                                   | Loan costs                                                                                                               |                   |        | 20,284  |         |   |        | 16,011 |        
|                                   | Other deferred tax liabilities                                                                                           |                   |        | 22,329  |         |   |        | 22,613 |        
|                                   |                                                                                                                          |                   |        |         |         |  
|                                   |                                                                                                                          | Total liabilities |        |         | 126,721 |   |        |        | 142,417 | 
|                                   |                                                                                                                          |                   |        |         |         |  
|Net deferred tax asset (liability) |                                                                                                                          | $                 | 49,246 |         |         | $ | (6,381 | )     
|                                   |                                                                                                                          |                   |        |         |         |  

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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




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



Balance Sheets


|                                                                         |                                            |                |           |           |      |   |           |           | 
|------------------------------------------------------------------------ | ------------------------------------------ | -------------- | --------- | --------- | ---- | - | --------- | --------- | 
|                                                                         |                                            | December 31    |          
|                                                                         |                                            |                |          
|                                                                         |                                            | 2005           |           |           | 2004 |  
|                                                                         |                                            |                |           |           |      |  
|                                                                         |                                            | (In Thousands) |          
|ASSETS                                                                   |                                            |                |           |           |      |   |           |          
|Cash and due from banks*                                                 |                                            | $              | 232,514   |           |      | $ | 254,212   |          
|Trading account assets                                                   |                                            |                | 1,406     |           |      |   | 17,657    |          
|Investment securities available for sale                                 |                                            |                | 28,040    |           |      |   | 29,621    |          
|Investment in subsidiaries *                                             |                                            |                | 2,460,547 |           |      |   | 2,294,945 |          
|Other assets*                                                            |                                            |                | 36,900    |           |      |   | 28,108    |          
|                                                                         |                                            |                |           |           |      |  
|                                                                         | Total assets                               |                | $         | 2,759,407 |      |   | $         | 2,624,543 | 
|                                                                         |                                            |                |           |           |      |  
|                                                                        
|LIABILITIES AND SHAREHOLDERS EQUITY                                     |                                            |                |           |           |      |   |           |          
|Commercial paper                                                         |                                            | $              | 76,764    |           |      | $ | 97,498    |          
|Accrued expenses and other liabilities*                                  |                                            |                | 36,211    |           |      |   | 61,872    |          
|Junior subordinated debt payable to unconsolidated subsidiary
    trusts |                                            |                | 410,403   |           |      |   | 408,828   |          
|                                                                         |                                            |                |           |           |      |  
|                                                                         | Total liabilities                          |                |           | 523,378   |      |   |           | 568,198   | 
|Shareholders equity                                                     |                                            |                | 2,236,029 |           |      |   | 2,056,345 |          
|                                                                         |                                            |                |           |           |      |  
|                                                                         | Total liabilities and shareholders equity |                | $         | 2,759,407 |      |   | $         | 2,624,543 | 
|                                                                         |                                            |                |           |           |      |  






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

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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003


Statements of Income


|                                                  |                                                                                           |                        |         |         |         |  |         |         |         |  |         |         |         | 
|------------------------------------------------- | ----------------------------------------------------------------------------------------- | ---------------------- | ------- | ------- | ------- |  | ------- | ------- | ------- |  | ------- | ------- | ------- | 
|                                                  |                                                                                           | Year Ended December 31 |        
|                                                  |                                                                                           |                        |        
|                                                  |                                                                                           | 2005                   |         |         | 2004    |  |         | 2003    |        
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           | (In Thousands)         |        
|Income:                                           |                                                                                           |                        |         |         |         |  |         |         |         |  |         |        
|                                                  | Cash dividends from subsidiaries *                                                        |                        | $       | 230,000 |         |  | $       | 120,000 |         |  | $       | 350,371 |        
|                                                  | Interest on investments with affiliates *                                                 |                        |         | 11,482  |         |  |         | 7,466   |         |  |         | 7,797   |        
|                                                  | Other                                                                                     |                        |         | 2,676   |         |  |         | 10,542  |         |  |         | 7,951   |        
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           | Total income           |         |         | 244,158 |  |         |         | 138,008 |  |         |         | 366,119 | 
|Expense:                                          |                                                                                           |                        |         |         |         |  |         |         |         |  |         |        
|                                                  | Interest on commercial paper and other borrowings                                         |                        |         | 2,456   |         |  |         | 1,586   |         |  |         | 4,828   |        
|                                                  | Other                                                                                     |                        |         | 42,472  |         |  |         | 39,596  |         |  |         | 38,574  |        
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           | Total expense          |         |         | 44,928  |  |         |         | 41,182  |  |         |         | 43,402  | 
|                                                  | Income before income tax benefit and equity in undistributed
    earnings of subsidiaries |                        |         | 199,230 |         |  |         | 96,826  |         |  |         | 322,717 |        
|                                                  | Applicable income tax benefit                                                             |                        |         | (11,560 | )       |  |         | (8,765  | )       |  |         | (10,401 | )      
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           |                        | 210,790 |         |         |  | 105,591 |         |         |  | 333,118 |        
|Equity in undistributed earnings of subsidiaries* |                                                                                           |                        | 191,040 |         |         |  | 254,594 |         |         |  | (4,440  | )      
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        
|                                                  |                                                                                           | Net income             |         | $       | 401,830 |  |         | $       | 360,185 |  |         | $       | 328,678 | 
|                                                  |                                                                                           |                        |         |         |         |  |         |         |        






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

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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003


Statements of Cash Flows


|                                                 |                                                                                    |                                          |                                                     |          |          |          |         |          |          |          |         |          |         |          |  
|------------------------------------------------ | ---------------------------------------------------------------------------------- | ---------------------------------------- | --------------------------------------------------- | -------- | -------- | -------- | ------- | -------- | -------- | -------- | ------- | -------- | ------- | -------- | -
|                                                 |                                                                                    | Year Ended December 31                   |                                                    
|                                                 |                                                                                    |                                          |                                                    
|                                                 |                                                                                    | 2005                                     |                                                     |          | 2004     |          |         | 2003     |         
|                                                 |                                                                                    |                                          |                                                     |          |          |          |         |          |         
|                                                 |                                                                                    | (In Thousands)                           |                                                    
|Operating Activities:                            |                                                                                    |                                          |                                                     |          |          |          |         |          |          |          |         |         
|                                                 | Net income                                                                         |                                          | $                                                   | 401,830  |          |          | $       | 360,185  |          |          | $       | 328,678  |        
|                                                 | Adjustments to reconcile net income to cash provided by
    operations:            |                                          |                                                     |          |          |          |         |          |          |          |         |          |        
|                                                 |                                                                                    | Depreciation and amortization            |                                                     |          | 7,897    |          |         |          | 6,034    |          |         |          | 4,569   |         
|                                                 |                                                                                    | Accretion of discount                    |                                                     |          | (1,575   | )        |         |          | (1,575   | )        |         |          | (1,575  | )       
|                                                 |                                                                                    | Decrease in trading assets               |                                                     |          | 17,826   |          |         |          | 11,678   |          |         |          | 13,437  |         
|                                                 |                                                                                    | Equity in undistributed earnings         |                                                     |          | (191,040 | )        |         |          | (254,594 | )        |         |          | 4,440   |         
|                                                 |                                                                                    | Increase in other assets                 |                                                     |          | (2,952   | )        |         |          | (4,858   | )        |         |          | (2,953  | )       
|                                                 |                                                                                    | Increase (decrease) in other liabilities |                                                     |          | 10,139   |          |         |          | (5,833   | )        |         |          | (12,522 | )       
|                                                 |                                                                                    |                                          |                                                     |          |          |          |         |          |         
|                                                 |                                                                                    |                                          | Net cash provided by operating activities           |          |          | 242,125  |         |          |          | 111,037  |         |          |         | 334,074  |  
|Investing Activities:                            |                                                                                    |                                          |                                                     |          |          |          |         |          |          |          |         |         
|                                                 | Proceeds from call of investment securities available for sale                     |                                          |                                                     |         |          |          |         | 4,310    |          |          |         |         |        
|                                                 | Capital receipts from (contributions to) subsidiaries                              |                                          |                                                     | (5,460   | )        |          |         | 683      |          |          |         | (1,683   | )      
|                                                 |                                                                                    |                                          |                                                     |          |          |          |         |          |         
|                                                 |                                                                                    |                                          | Net cash (used in) provided by investing activities |          |          | (5,460   | )       |          |          | 4,993    |         |          |         | (1,683   | )
|Financing Activities:                            |                                                                                    |                                          |                                                     |          |          |          |         |          |          |          |         |         
|                                                 | Net increase (decrease) in commercial paper                                        |                                          |                                                     | (20,734  | )        |          |         | 23,986   |          |          |         | (3,416   | )      
|                                                 | Repayment of other borrowings                                                      |                                          |                                                     |         |          |          |         | (50,000  | )        |          |         | (75,000  | )      
|                                                 | Issuance (repurchase) of junior subordinated debt payable
    to subsidiary trusts |                                          |                                                     |         |          |          |         | (23,000  | )        |          |         | (12,000  | )      
|                                                 | Common dividends paid                                                              |                                          |                                                     | (208,756 | )        |          |         | (118,533 | )        |          |         | (139,376 | )      
|                                                 | Purchase of treasury stock                                                         |                                          |                                                     | (63,247  | )        |          |         | (33,829  | )        |          |         | (213,227 | )      
|                                                 | Issuance of treasury stock for benefit plans and stock options                     |                                          |                                                     | 9,274    |          |          |         | 9,998    |          |          |         | 8,466    |        
|                                                 | Repayment of loans to finance stock purchases                                      |                                          |                                                     | 679      |          |          |         | 616      |          |          |         | 1,126    |        
|                                                 | Proceeds from exercise of stock options                                            |                                          |                                                     | 24,421   |          |          |         | 28,622   |          |          |         | 22,742   |        
|                                                 |                                                                                    |                                          |                                                     |          |          |          |         |          |         
|                                                 |                                                                                    |                                          | Net cash used in financing activities               |          |          | (258,363 | )       |          |          | (162,140 | )       |          |         | (410,685 | )
|                                                 |                                                                                    |                                          |                                                     |          |          |          |         |          |         
|Net decrease in cash and due from banks          |                                                                                    |                                          | (21,698                                             | )        |          |          | (46,110 | )        |          |          | (78,294 | )       
|Cash and due from banks at beginning of the year |                                                                                    |                                          | 254,212                                             |          |          |          | 300,322 |          |          |          | 378,616 |         
|                                                 |                                                                                    |                                          |                                                     |          |          |          |         |          |         
|Cash and due from banks at end of the year       |                                                                                    | $                                        | 232,514                                             |          |          | $        | 254,212 |          |          | $        | 300,322 |         
|                                                 |                                                                                    |                                          |                                                     |          |          |          |         |          |         



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



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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003






| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Cash and due from banks: Fair value equals the
    carrying value of such assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | Investment securities held to maturity and investment
    securities available for sale: Fair values of investment
    securities held to maturity and investment securities available
    for sale are based primarily on quoted or other independent
    market prices. If quoted market prices are not available, then
    fair values are estimated using pricing models, quoted prices of
    instruments with similar characteristics or discounted cash
    flows.                                                                                                 
|
| | Trading account assets: Fair values of trading
    account assets are based primarily on quoted or other
    independent market prices. If quoted market prices are not
    available, then fair values are estimated using pricing models,
    quoted prices of instruments with similar characteristics or
    discounted cash flows.                                                                                                                                                                                                                                   
|
| | Federal funds sold and securities purchased under
    agreements to resell: Due to the short-term nature of
    these assets, the carrying values of these assets approximate
    their fair value.                                                                                                                                                                                                                                                                                                                                                                       
|
| | Loans: Loans were valued using discounted cash
    flows. The discount rate used to determine the present value of
    these loans was based on interest rates currently being charged
    by the Company on comparable loans as to credit risk and term.                                                                                                                                                                                                                                                                                                                 
|
| | Off-balance sheet instruments: The Companys
    loan commitments are negotiated at current market rates and are
    relatively short-term in nature and, as a matter of policy, the
    Company generally makes commitments for fixed rate loans for
    relatively short periods of time. Therefore, the estimated value
    of the Companys loan commitments approximates carrying
    amount.                                                                                                                                                                        
|
| | Derivatives: Derivative instruments (forwards,
    swaps, caps, floors and options written) are recorded on the
    balance sheet at fair value. Fair value is calculated using
    pricing models designed to approximate dealer quoted prices.                                                                                                                                                                                                                                                                                                                          
|
| | Deposit liabilities: The fair values of demand
    deposits are equal to the carrying value of such deposits.
    Demand deposits include noninterest bearing demand deposits,
    savings accounts, NOW accounts and money market demand accounts.
    Discounted cash flows have been used to value fixed rate term
    deposits and variable rate term deposits having an interest rate
    floor that has been reached. The discount rate used is based on
    interest rates currently being offered by the Company on
    comparable deposits as to amount and term.
|
| | Short-term borrowings: The carrying value of
    federal funds purchased, securities sold under agreements to
    repurchase and other short-term borrowings approximates their
    carrying values.                                                                                                                                                                                                                                                                                                                                                                      
|
| | FHLB and other borrowings: The fair value of the
    Companys fixed rate borrowings, which includes the
    Companys Capital Securities, are estimated using
    discounted cash flows, based on the Companys current
    incremental borrowing rates for similar types of borrowing
    arrangements. The carrying amount of the Companys variable
    rate borrowings approximates their fair values.                                                                                                                                                               

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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003


|                       |              |                                                                                |  |   |                      |  |  |          |            |  |            |   |            |  |  |   |            | 
|---------------------- | ------------ | ------------------------------------------------------------------------------ |  | - | -------------------- |  |  | -------- | ---------- |  | ---------- | - | ---------- |  |  | - | ---------- | 
|                       |              | At December 31, 2005                                                           |  |   | At December 31, 2004 | 
|                       |              |                                                                                |  |   |                      | 
|                       |              | Carrying                                                                       |  |   | Estimated            |  |  | Carrying |            |  | Estimated  |  
|                       |              | Amount                                                                         |  |   | Fair Value           |  |  | Amount   |            |  | Fair Value |  
|                       |              |                                                                                |  |   |                      |  |  |          |            |  |            |  
|                       |              | (In Thousands)                                                                 | 
|Financial Instruments: |              |                                                                                |  |   |                      |  |  |          |            |  |            |   |            |  |  |  
|                       | Assets:      |                                                                                |  |   |                      |  |  |          |            |  |            |   |            |  |  |   |           
|                       |              | Cash and due from banks                                                        |  | $ | 805,556              |  |  | $        | 805,556    |  |            | $ | 585,679    |  |  | $ | 585,679    | 
|                       |              | Investment securities held to maturity                                         |  |   | 2,245,942            |  |  |          | 2,212,273  |  |            |   | 2,767,099  |  |  |   | 2,768,334  | 
|                       |              | Investment securities available for sale                                       |  |   | 4,704,375            |  |  |          | 4,704,375  |  |            |   | 4,398,184  |  |  |   | 4,398,184  | 
|                       |              | Trading account assets                                                         |  |   | 76,559               |  |  |          | 76,559     |  |            |   | 77,817     |  |  |   | 77,817     | 
|                       |              | Federal funds sold and securities purchased under agreements to
    resell     |  |   | 46,393               |  |  |          | 46,393     |  |            |   | 46,948     |  |  |   | 46,948     | 
|                       |              | Loans                                                                          |  |   | 21,372,215           |  |  |          | 21,086,292 |  |            |   | 18,856,922 |  |  |   | 18,542,415 | 
|                       | Liabilities: |                                                                                |  |   |                      |  |  |          |            |  |            |   |            |  |  |   |           
|                       |              | Noninterest bearing deposits                                                   |  | $ | 6,097,881            |  |  | $        | 6,097,881  |  |            | $ | 5,476,140  |  |  | $ | 5,476,140  | 
|                       |              | Interest bearing deposits                                                      |  |   | 14,286,234           |  |  |          | 14,226,374 |  |            |   | 11,566,592 |  |  |   | 11,568,839 | 
|                       |              | Federal funds purchased and securities sold under agreements to
    repurchase |  |   | 3,102,572            |  |  |          | 3,102,572  |  |            |   | 4,532,004  |  |  |   | 4,532,004  | 
|                       |              | Other short-term borrowings                                                    |  |   | 652,750              |  |  |          | 652,750    |  |            |   | 175,771    |  |  |   | 175,771    | 
|                       |              | FHLB and other borrowings                                                      |  |   | 4,111,462            |  |  |          | 4,068,321  |  |            |   | 4,119,771  |  |  |   | 4,156,322  | 



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









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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003








For the Year ended December 31, 2005


|                                     |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |         | 
|------------------------------------ | ------------------------- | -------------- | ---------- | ------- | ------- | - | ---------- | ---------- |  | --------- | --------- | ------ | ----------- | ----- | --------- | ------ | ------------ | - | --------- | -------- | - | - | ---------- | ------- | 
|                                     |                           |                |            |         |         |   |            |            |  | Corporate |           |        |            
|                                     |                           | Corporate      |            |         | Retail  |   |            | Wealth     |  |           |           |        | Support and |       |           |       
|                                     |                           | Banking        |            |         | Banking |   |            | Management |  |           | Treasury  |        |             | Other |           |        | Consolidated |  
|                                     |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |  
|                                     |                           | (In Thousands) |           
|Income Statement:                    |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |        
|Net interest income                  |                           | $              | 389,478    |         |         | $ | 438,269    |            |  | $         | 55,559    |        |             | $     | 27,281    |        |              | $ | 58,392    |          |   | $ | 968,979    |        
|Noninterest income                   |                           |                | 151,926    |         |         |   | 458,120    |            |  |           | 37,913    |        |             |       | 26,145    |        |              |   | (15,426   | )        |   |   | 658,678    |        
|Noninterest expense                  |                           |                | 204,158    |         |         |   | 430,269    |            |  |           | 46,539    |        |             |       | 20,928    |        |              |   | 199,909   |          |   |   | 901,803    |        
|                                     |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |  
|                                     | Segment net income (loss) |                | $          | 337,246 |         |   | $          | 466,120    |  |           | $         | 46,933 |             |       | $         | 32,498 |              |   | $         | (156,943 | ) |   |            | 725,854 | 
|                                     |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |  
|Provision for loan losses            |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 117,818    |        
|                                     |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |  
|Net income before income tax expense |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 608,036    |        
|Income tax expense                   |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 206,206    |        
|                                     |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |  
|Net income                           |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |   |           |          |   | $ | 401,830    |        
|                                     |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |  
|Balance Sheet:                       |                           |                |            |         |         |   |            |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |        
|Average assets                       |                           | $              | 10,614,706 |         |         | $ | 8,562,216  |            |  | $         | 1,349,510 |        |             | $     | 7,611,931 |        |              | $ | 1,305,869 |          |   | $ | 29,444,232 |        
|Average loans                        |                           |                | 10,594,888 |         |         |   | 8,367,842  |            |  |           | 1,350,630 |        |             |       |          |        |              |   | (263,772  | )        |   |   | 20,049,588 |        
|Average deposits                     |                           |                | 4,773,226  |         |         |   | 10,257,276 |            |  |           | 1,207,390 |        |             |       | 2,292,260 |        |              |   | (62,477   | )        |   |   | 18,467,675 |        
|Period-end assets                    |                           | $              | 11,574,398 |         |         | $ | 9,019,841  |            |  | $         | 1,489,413 |        |             | $     | 7,574,799 |        |              | $ | 1,139,781 |          |   | $ | 30,798,232 |        
|Period-end loans                     |                           |                | 11,377,470 |         |         |   | 8,725,283  |            |  |           | 1,476,937 |        |             |       |          |        |              |   | (207,475  | )        |   |   | 21,372,215 |        
|Period-end deposits                  |                           |                | 4,947,314  |         |         |   | 11,200,625 |            |  |           | 1,260,697 |        |             |       | 3,057,539 |        |              |   | (82,060   | )        |   |   | 20,384,115 |        

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##### Table of Contents



Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |         | 
|------------------------------------ | ------------------------- | -------------- | ---------- | ------- | ------- | - | --------- | ---------- |  | --------- | --------- | ------ | ----------- | ----- | --------- | ------ | ------------ | - | --------- | -------- | - | - | ---------- | ------- | 
|                                     |                           |                |            |         |         |   |           |            |  | Corporate |           |        |            
|                                     |                           | Corporate      |            |         | Retail  |   |           | Wealth     |  |           |           |        | Support and |       |           |       
|                                     |                           | Banking        |            |         | Banking |   |           | Management |  |           | Treasury  |        |             | Other |           |        | Consolidated |  
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|                                     |                           | (In Thousands) |            |         |        
|Income Statement:                    |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |        
|Net interest income                  |                           | $              | 369,839    |         |         | $ | 397,719   |            |  | $         | 53,832    |        |             | $     | 42,266    |        |              | $ | 21,669    |          |   | $ | 885,325    |        
|Noninterest income                   |                           |                | 139,642    |         |         |   | 400,515   |            |  |           | 29,251    |        |             |       | 66,949    |        |              |   | (7,714    | )        |   |   | 628,643    |        
|Noninterest expense                  |                           |                | 197,496    |         |         |   | 392,265   |            |  |           | 39,379    |        |             |       | 42,998    |        |              |   | 196,340   |          |   |   | 868,478    |        
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|                                     | Segment net income (loss) |                | $          | 311,985 |         |   | $         | 405,969    |  |           | $         | 43,704 |             |       | $         | 66,217 |              |   | $         | (182,385 | ) |   |            | 645,490 | 
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Provision for loan losses            |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 105,658    |        
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Net income before income tax expense |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 539,832    |        
|Income tax expense                   |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 179,647    |        
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Net income                           |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   | $ | 360,185    |        
|                                     |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Balance Sheet:                       |                           |                |            |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |        
|Average assets                       |                           | $              | 9,799,843  |         |         | $ | 7,582,073 |            |  | $         | 1,202,568 |        |             | $     | 7,659,417 |        |              | $ | 1,416,727 |          |   | $ | 27,660,628 |        
|Average loans                        |                           |                | 9,789,575  |         |         |   | 7,399,910 |            |  |           | 1,204,768 |        |             |       |          |        |              |   | (394,898  | )        |   |   | 17,999,355 |        
|Average deposits                     |                           |                | 4,609,496  |         |         |   | 9,319,729 |            |  |           | 1,243,356 |        |             |       | 1,285,590 |        |              |   | (44,469   | )        |   |   | 16,413,702 |        
|                                    
|Period-end assets                    |                           | $              | 10,238,188 |         |         | $ | 8,051,091 |            |  | $         | 1,294,636 |        |             | $     | 7,673,267 |        |              | $ | 924,734   |          |   | $ | 28,181,916 |        
|Period-end loans                     |                           |                | 10,101,932 |         |         |   | 7,789,110 |            |  |           | 1,285,285 |        |             |       |          |        |              |   | (319,405  | )        |   |   | 18,856,922 |        
|Period-end deposits                  |                           |                | 4,826,556  |         |         |   | 9,636,203 |            |  |           | 1,211,464 |        |             |       | 1,424,072 |        |              |   | (55,563   | )        |   |   | 17,042,732 |        



|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |         | 
|------------------------------------ | ------------------------- | -------------- | --------- | ------- | ------- | - | --------- | ---------- |  | --------- | --------- | ------ | ----------- | ----- | --------- | ------ | ------------ | - | --------- | -------- | - | - | ---------- | ------- | 
|                                     |                           |                |           |         |         |   |           |            |  | Corporate |           |        |            
|                                     |                           | Corporate      |           |         | Retail  |   |           | Wealth     |  |           |           |        | Support and |       |           |       
|                                     |                           | Banking        |           |         | Banking |   |           | Management |  |           | Treasury  |        |             | Other |           |        | Consolidated |  
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|                                     |                           | (In Thousands) |          
|Income Statement:                    |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |        
|Net interest income                  |                           | $              | 358,468   |         |         | $ | 386,530   |            |  | $         | 51,006    |        |             | $     | 63,598    |        |              | $ | 19,528    |          |   | $ | 879,130    |        
|Noninterest income                   |                           |                | 131,528   |         |         |   | 333,354   |            |  |           | 28,255    |        |             |       | 35,634    |        |              |   | 6,733     |          |   |   | 535,504    |        
|Noninterest expense                  |                           |                | 184,387   |         |         |   | 365,872   |            |  |           | 38,296    |        |             |       | 15,706    |        |              |   | 193,622   |          |   |   | 797,883    |        
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|                                     | Segment net income (loss) |                | $         | 305,609 |         |   | $         | 354,012    |  |           | $         | 40,965 |             |       | $         | 83,526 |              |   | $         | (167,361 | ) |   |            | 616,751 | 
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Provision for loan losses            |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 119,681    |        
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Net income before income tax expense |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 497,070    |        
|Income tax expense                   |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   | 168,392    |        
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Net income                           |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   | $ | 328,678    |        
|                                     |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |  
|Balance Sheet:                       |                           |                |           |         |         |   |           |            |  |           |           |        |             |       |           |        |              |   |           |          |   |   |            |        
|Average assets                       |                           | $              | 9,107,742 |         |         | $ | 7,222,812 |            |  | $         | 1,015,100 |        |             | $     | 6,680,571 |        |              | $ | 1,116,494 |          |   | $ | 25,142,719 |        
|Average loans                        |                           |                | 9,074,624 |         |         |   | 7,026,717 |            |  |           | 1,017,144 |        |             |       |          |        |              |   | (322,297  | )        |   |   | 16,796,188 |        
|Average deposits                     |                           |                | 3,995,440 |         |         |   | 8,996,247 |            |  |           | 1,226,041 |        |             |       | 784,988   |        |              |   | (10,866   | )        |   |   | 14,991,850 |        
|                                    
|Period-end assets                    |                           | $              | 9,555,757 |         |         | $ | 7,623,641 |            |  | $         | 1,092,830 |        |             | $     | 7,650,499 |        |              | $ | 1,040,386 |          |   | $ | 26,963,113 |        
|Period-end loans                     |                           |                | 9,421,536 |         |         |   | 7,354,093 |            |  |           | 1,084,268 |        |             |       |          |        |              |   | (494,095  | )        |   |   | 17,365,802 |        
|Period-end deposits                  |                           |                | 4,383,398 |         |         |   | 9,058,465 |            |  |           | 1,265,937 |        |             |       | 1,014,766 |        |              |   | (34,934   | )        |   |   | 15,687,632 |        

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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003








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



|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         |  |  |   |         | 
|--------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | - | ------- | ---- |  | - | ------- |  |  | - | ------- | 
|                            |                                                                                                                                                                         | Year Ended December 31                |  
|                            |                                                                                                                                                                         |                                       |  
|                            |                                                                                                                                                                         | 2005                                  |   |         | 2004 |  |   | 2003    | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            |                                                                                                                                                                         | (In Thousands, Except Per Share Data) |  
|BASIC EARNINGS PER SHARE:   |                                                                                                                                                                         |                                       |   |         |      |  |   |         |  |  |   |        
|                            | Net income                                                                                                                                                              |                                       | $ | 401,830 |      |  | $ | 360,185 |  |  | $ | 328,678 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Net income available to common shareholders                                                                                                                             |                                       | $ | 401,830 |      |  | $ | 360,185 |  |  | $ | 328,678 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Weighted average basic common shares outstanding                                                                                                                        |                                       |   | 123,550 |      |  |   | 122,254 |  |  |   | 124,656 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Basic earnings per share                                                                                                                                                |                                       | $ | 3.25    |      |  | $ | 2.95    |  |  | $ | 2.64    | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|DILUTED EARNINGS PER SHARE: |                                                                                                                                                                         |                                       |   |         |      |  |   |         |  |  |   |        
|                            | Net income                                                                                                                                                              |                                       | $ | 401,830 |      |  | $ | 360,185 |  |  | $ | 328,678 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Net income available to common shareholders and assumed
    conversions                                                                                                 |                                       | $ | 401,830 |      |  | $ | 360,185 |  |  | $ | 328,678 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Weighted average common shares outstanding                                                                                                                              |                                       |   | 123,550 |      |  |   | 122,254 |  |  |   | 124,656 | 
|                            | 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 |                                       |   | 2,873   |      |  |   | 3,162   |  |  |   | 2,530   | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Weighted average diluted common shares outstanding                                                                                                                      |                                       |   | 126,423 |      |  |   | 125,416 |  |  |   | 127,186 | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 
|                            | Diluted earnings per share                                                                                                                                              |                                       | $ | 3.18    |      |  | $ | 2.87    |  |  | $ | 2.58    | 
|                            |                                                                                                                                                                         |                                       |   |         |      |  |   |         | 

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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




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





|                                                                        |                                                                                                                                                         |                                                              |   |         |         |   |   |         |         |   |   |          |         |  
|----------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------ | - | ------- | ------- | - | - | ------- | ------- | - | - | -------- | ------- | -
|                                                                        |                                                                                                                                                         | Year Ended December 31                                       |  
|                                                                        |                                                                                                                                                         |                                                              |  
|                                                                        |                                                                                                                                                         | 2005                                                         |   |         | 2004    |   |   | 2003    |        
|                                                                        |                                                                                                                                                         |                                                              |   |         |         |   |   |         |        
|                                                                        |                                                                                                                                                         | (In Thousands)                                               |  
|Other comprehensive income (loss), before tax:                          |                                                                                                                                                         |                                                              |   |         |         |   |   |         |         |   |   |         
|                                                                        | Unrealized holding loss on investment securities available for
    sale, net                                                                            |                                                              | $ | (68,349 | )       |   | $ | (41,152 | )       |   | $ | (106,955 | )      
|                                                                        | Less reclassification adjustment for gains (losses) on
    investment securities available for sale                                                     |                                                              |   | 79      |         |   |   | 27,336  |         |   |   | (43      | )      
|                                                                        | Net change in additional minimum pension liability                                                                                                      |                                                              |   | 1,353   |         |   |   | (3,469  | )       |   |   |         |        
|                                                                        | Amortization of unrealized net holding losses on investment
    securities available for sale transferred to investment
    securities held to maturity |                                                              |   | (3,109  | )       |   |   | (10,702 | )       |   |   | (2,437   | )      
|                                                                        | Net change in accumulated losses on cash-flow hedging instruments                                                                                       |                                                              |   | 5,921   |         |   |   | (14,572 | )       |   |   | (48,974  | )      
|                                                                        |                                                                                                                                                         |                                                              |   |         |         |   |   |         |        
|                                                                        | Other comprehensive loss, before income taxes                                                                                                           |                                                              |   | (64,263 | )       |   |   | (97,231 | )       |   |   | (158,323 | )      
|                                                                        |                                                                                                                                                         |                                                              |   |         |         |   |   |         |        
|Income tax expense (benefit) related to other comprehensive
    income: |                                                                                                                                                         |                                                              |   |         |         |   |   |         |         |   |   |         
|                                                                        | Unrealized holding loss on investment securities available for
    sale                                                                                 |                                                              |   | (26,027 | )       |   |   | (15,469 | )       |   |   | (40,211  | )      
|                                                                        | Less reclassification adjustment for gains (losses) on
    investment securities available for sale                                                     |                                                              |   | 30      |         |   |   | 10,276  |         |   |   | (16      | )      
|                                                                        | Net change in additional minimum pension liability                                                                                                      |                                                              |   | 501     |         |   |   | (1,304  | )       |   |   |         |        
|                                                                        | Amortization of unrealized net holding losses on investment
    securities available for sale transferred to investment
    securities held to maturity |                                                              |   | (1,183  | )       |   |   | (4,023  | )       |   |   | (916     | )      
|                                                                        | Net change in accumulated losses on cash-flow hedging instruments                                                                                       |                                                              |   | 2,256   |         |   |   | (5,477  | )       |   |   | (18,409  | )      
|                                                                        |                                                                                                                                                         |                                                              |   |         |         |   |   |         |        
|                                                                        |                                                                                                                                                         | Total income tax benefit related to other comprehensive loss |   |         | (24,483 | ) |   |         | (36,549 | ) |   |          | (59,520 | )
|                                                                        |                                                                                                                                                         |                                                              |   |         |         |   |   |         |        
|                                                                        | Other comprehensive loss, after income taxes                                                                                                            |                                                              | $ | (39,780 | )       |   | $ | (60,682 | )       |   | $ | (98,803  | )      
|                                                                        |                                                                                                                                                         |                                                              |   |         |         |   |   |         |        



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Compass Bancshares, Inc. and Subsidiaries


Notes to Consolidated Financial
Statements  (Continued)


December 31, 2005, 2004 and 2003




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



|                                                                                                                         |                     |                |         |        |      |   |         |       |  |   |           |        | 
|------------------------------------------------------------------------------------------------------------------------ | ------------------- | -------------- | ------- | ------ | ---- | - | ------- | ----- |  | - | --------- | ------ | 
|                                                                                                                         |                     | December 31    |        
|                                                                                                                         |                     |                |        
|                                                                                                                         |                     | 2005           |         |        | 2004 |   |         | 2003  | 
|                                                                                                                         |                     |                |         |        |      |   |         |       | 
|                                                                                                                         |                     | (In Thousands) |        
|Schedule of noncash investing and financing activities:                                                                  |                     |                |         |        |      |   |         |       |  |   |           |       
|Transfers of loans to other real estate owned                                                                            |                     | $              | 12,236  |        |      | $ | 21,982  |       |  | $ | 32,255    |       
|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                                                                  |                     |                | 1,048   |        |      |   | 1,006   |       |  |   | 324       |       
|Assets retained in loan securitizations                                                                                  |                     |                |        |        |      |   | 589,912 |       |  |   | 1,141,866 |       
|Loans to finance stock purchases                                                                                         |                     |                | 885     |        |      |   | 863     |       |  |   | 372       |       
|Change in unrealized gain (loss) on available for sale securities                                                        |                     |                | (68,428 | )      |      |   | (68,488 | )     |  |   | (106,912  | )     
|Issuance of restricted stock, net of cancellations                                                                       |                     |                | 6,671   |        |      |   | 8,571   |       |  |   | 6,546     |       
|Treasury stock exchanged for acquisition earnout                                                                         |                     |                | 5,840   |        |      |   | 4,741   |       |  |   |          |       
|Allowance transferred to other liabilities                                                                               |                     |                | 12,189  |        |      |   |        |       |  |   |          |       
|Business combinations and divestitures:                                                                                  |                     |                |         |        |      |   |         |       |  |   |           |       
|                                                                                                                         | Common stock issued |                |         | 7,869  |      |   |         | 3,658 |  |   |           | 15,721 | 
|                                                                                                                         | Assets acquired     |                |         | 8,092  |      |   |         | 5,771 |  |   |           | 20,876 | 
|                                                                                                                         | Liabilities assumed |                |         | 21     |      |   |         | 2,381 |  |   |           | 6,824  | 
|                                                                                                                         | Assets sold         |                |         | 2,156  |      |   |         |      |  |   |           | 41,853 | 
|                                                                                                                         | Liabilities sold    |                |         | 25,290 |      |   |         |      |  |   |           | 70,032 | 

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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




13a-15(e)


Managements Report on Internal Control Over Financial
Reporting


13a-15(f).




Changes in Internal Control Over Financial Reporting







ITEM 9B  OTHER INFORMATION







PART III







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

10-K,


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ITEM 11  EXECUTIVE COMPENSATION


10-K







|          |                                                                   
|--------- | ------------------------------------------------------------------
|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)  |                      |           | 8,467,886 | (2)                  |   | $                              | 31.54                               |     |  |           | 2,175,226 | 
|                                                           | Stock purchase plans(3) |                      |           |          | (4)                  |   |                                |                                    | (4) |  |           | 5,000,000 | 
|Equity compensation plans not approved by security holders |                         |                      |          |           |                      |   |                               |                                     |     |  |          |          
|                                                           |                         |                      |           |           |                      |   |                                |                                     |    
|Total                                                      |                         |                      | 8,467,886 |           |                      | $ | 31.54                          |                                     |     |  | 7,175,226 |          
|                                                           |                         |                      |           |           |                      |   |                                |                                     |    






|    |                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 456,744 of restricted shares awarded, subject to
    vesting requirements.                                                                                                                  
|   
|(3) | Consists of shares issuable under the Compass Bancshares, Inc.
    Monthly Investment 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



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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                                                  |  |      | 46 | 
|Consolidated Balance Sheets as of December 31, 2005 and 2004                                             |  |      | 48 | 
|Consolidated Statements of Income for the years ended
    December 31, 2005, 2004 and 2003               |  |      | 49 | 
|Consolidated Statements of Shareholders Equity for the
    years ended December 31, 2005, 2004 and 2003 |  |      | 50 | 
|Consolidated Statements of Cash Flows for the years ended
    December 31, 2005, 2004 and 2003           |  |      | 51 | 
|Notes to Consolidated Financial Statements 
    December 31, 2005, 2004 and 2003                        |  |      | 52 | 



|    |         
|--- | --------
|(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, file number
    000-06032, filed March 23, 1998 with the Commission)                                                    
|
| |     | (b) |  | Certificate of Amendment, dated May 20, 1986, to Restated
    Certificate of Incorporation of Compass Bancshares, Inc.
    (incorporated by reference to Exhibit 3.2 to Compass
    Bancshares, Inc.s Registration Statement on Form S-4,
    Registration No. 33-46086, filed with the Commission)                                        
|
| |     | (c) |  | Certificate of Amendment, dated May 15, 1987, to Restated
    Certificate of Incorporation of Compass Bancshares, Inc.
    (incorporated by reference to Exhibit 3.1.2 to Compass
    Bancshares, Inc.s Post-Effective Amendment No. 1 to
    Registration Statement on Form S-4, Registration
    No. 33-10797, filed with the Commission)
|
| |     | (d) |  | Certificate of Amendment, dated September 16, 1994, to
    Restated Certificate of Incorporation of Compass Bancshares,
    Inc. (incorporated by reference to Exhibit 3.5(1) to
    Compass Bancshares, Inc.s Registration Statement on
    Form S-4, Registration No. 33-55899, filed with the
    Commission)                           
|
| |     | (e) |  | Certificate of Amendment, dated November 3, 1993, to
    Restated Certificate of Incorporation of Compass Bancshares,
    Inc. (incorporated by reference to Exhibit 3(d) to Compass
    Bancshares, Inc.s Registration Statement on Form S-4,
    Registration No. 33-51919, filed with the Commission)                                   
|
| |     | (f) |  | Certificate of Amendment, dated May 15, 1998, to Restated
    Certificate of Incorporation of Compass Bancshares, Inc. (filed
    as exhibit 4.6 to Compass Bancshares, Inc.s
    Registration Statement on Form S-3, Registration Statement
    No. 333-60725, filed with the Commission)                                                 
|
| |     | (g) |  | Certificate of Amendment, dated May 1, 2002, to Restated
    Certificate of Incorporation of Compass Bancshares, Inc.
    (incorporated by reference to Exhibit 4.7 to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-90806, filed June 19, 2002 with
    the Commission)                      
|
| |     | (h) |  | Bylaws of Compass Bancshares, Inc. (Amended and Restated as of
    March 15, 1982) (incorporated by reference to
    Exhibit 3(f) to Compass Bancshares, Inc.s
    December 31, 1997 Form 10-K, file number 000-06032,
    filed March 23, 1998 with the Commission)                                                                       

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

| |      |     |  |                                                                                                                                                                                                                                                                                                                                                                     
| | ---- | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (4)  |     |  | Instruments Defining the Rights of Security Holders, Including
    Indentures                                                                                                                                                                                                                                                                                       
|
| |      | (a) |  | Form of Indenture between Compass Bancshares, Inc. (formerly
    Central Bancshares of the South, Inc.) and JPMorgan Chase Bank
    (formerly Chemical Bank), as Senior Trustee (incorporated by
    reference to Exhibit 4(g) to Compass Bancshares,
    Inc.s Registration Statement on Form S-3,
    Registration No. 33-61018, filed with the Commission)      
|
| |      | (b) |  | Form of Indenture between Compass Bancshares, Inc. (formerly
    Central Bancshares of the South, Inc.) and JPMorgan Chase Bank
    (formerly Chemical Bank), as Subordinated Trustee (incorporated
    by reference to Exhibit 4(f) to Compass Bancshares,
    Inc.s Registration Statement on Form S-3,
    Registration No. 33-61018, filed with the Commission)
|
| | (10) |     |  | Material Contracts                                                                                                                                                                                                                                                                                                                                                  
|
| |      | (a) |  | Compass Bancshares, Inc., 1996 Long Term Incentive Plan
    (incorporated by reference to Exhibit 4(g) to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-15117, filed October 30, 1996
    with the Commission) *                                                                                                      
|
| |      | (b) |  | Compass Bancshares, Inc., 1999 Omnibus Incentive Compensation
    Plan (incorporated by reference to Exhibit 10(a) to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-86455, filed September 2, 1999
    with the Commission) *                                                                                         
|
| |      | (c) |  | Employment Agreement, dated December 14, 1994, between
    Compass Bancshares, Inc. and D. Paul Jones, Jr.
    (incorporated by reference to Exhibit 10(e) to Compass
    Bancshares, Inc.s March 31, 2000 Form 10-Q, file
    number 000-06032, filed May 15, 2000 with the Commission)*                                                                          
|
| |      | (d) |  | Employment Agreement, dated December 14, 1994, between
    Compass Bancshares, Inc. and Garrett R. Hegel (incorporated by
    reference to Exhibit 10(g) to Compass Bancshares,
    Inc.s March 31, 2000 Form 10-Q, file number
    000-06032, filed May 15, 2000 with the Commission) *                                                                           
|
| |      | (e) |  | Employment Agreement, dated November 24, 1997, between
    Compass Bancshares, Inc. and James D. Barri (incorporated by
    reference to Exhibit 10(j) to Compass Bancshares,
    Inc.s March 31, 2000 Form 10-Q, file number
    000-06032, filed May 15, 2000 with the Commission) *                                                                             
|
| |      | (f) |  | Employment Agreement, dated December 14, 1994, between
    Compass Bancshares, Inc. and G. Ray Stone (incorporated by
    reference to Exhibit 10(i) to Compass Bancshares,
    Inc.s Registration Statement on Form S-4,
    Registration No. 333-15373, filed November 1, 1996
    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, file number
    000-06032, filed March 11, 2002 with the Commission) *                                                                        
|
| |      | (h) |  | First Amendment to Employment Agreement, dated March 31,
    1997, between Compass Bancshares, Inc. and D. Paul
    Jones, Jr. (incorporated by reference to Exhibit 10(h)
    to Compass Bancshares, Inc.s December 31, 2004
    Form 10-K, file number 001-31272, filed February 28,
    2005 with the Commission) *                                             
|
| |      | (i) |  | First Amendment to Employment Agreement, dated April 14,
    1997, between Compass Bancshares, Inc. and Garrett R. Hegel
    (incorporated by reference to Exhibit 10(i) to Compass
    Bancshares, Inc.s December 31, 2004 Form 10-K,
    file number 001-31272, filed February 28, 2005 with the
    Commission) *                                               
|
| |      | (j) |  | First Amendment to Employment Agreement, dated April 18,
    1997, between Compass Bancshares, Inc. and G. Ray Stone
    (incorporated by reference to Exhibit 10(j) to Compass
    Bancshares, Inc.s December 31, 2004 Form 10-K,
    file number 001-31272, filed February 28, 2005 with the
    Commission) *                                                   

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

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                      
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | (k) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and D. Paul Jones, Jr.
    (incorporated by reference to Exhibit 10(i) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K,
    file number 000-06032, filed March 11, 2002 with the
    Commission) *                                                                     
|
| |  | (l) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and Garrett R. Hegel
    (incorporated by reference to Exhibit 10(j) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K,
    file number 000-06032, filed March 11, 2002 with the
    Commission) *                                                                       
|
| |  | (m) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and James D. Barri
    (incorporated by reference to Exhibit 10(l) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K,
    file number 000-06032, filed March 11, 2002 with the
    Commission) *                                                                         
|
| |  | (n) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and Clayton D. Pledger
    (incorporated by reference to Exhibit 10(h) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K,
    file number 000-06032, filed March 11, 2002 with the
    Commission) *                                                                     
|
| |  | (o) |  | Amendment to Employment Agreement, dated October 12, 2001,
    between Compass Bancshares, Inc. and G. Ray Stone (incorporated
    by reference to Exhibit 10(o) to Compass Bancshares,
    Inc.s December 31, 2004 Form 10-K, file number
    001-31272, filed February 28, 2005 with the Commission) *                                                                            
|
| |  | (p) |  | Compass Bancshares, Inc., Employee Stock Ownership Benefit
    Restoration Plan, dated May 1, 1997 (incorporated by
    reference to Exhibit 10(j) to Compass Bancshares,
    Inc.s December 31, 1999 Form 10-K, file number
    000-06032, filed March 23, 2000 with the Commission) *                                                                                             
|
| |  | (q) |  | Compass Bancshares, Inc., Supplemental Retirement Plan, dated
    May 1, 1997 (incorporated by reference to
    Exhibit 10(k) to Compass Bancshares, Inc.s
    December 31, 1999 Form 10-K, file number 000-06032,
    filed March 23, 2000 with the Commission) *                                                                                                                  
|
| |  | (r) |  | Deferred Compensation Plan for Compass Bancshares, Inc., dated
    February 1, 1996. (Amended and Restated as of May 1,
    1998) (incorporated by reference to Exhibit 10(l) to
    Compass Bancshares, Inc.s December 31, 1999
    Form 10-K, file number 000-06032, filed March 23, 2000
    with the Commission) *                                                              
|
| |  | (s) |  | Compass Bancshares, Inc. Special Supplemental Retirement Plan,
    dated May 1, 1997. (Amended and Restated as of
    February 27, 2000) (incorporated by reference to
    Exhibit 10(n) to Compass Bancshares, Inc.s
    March 31, 2000 Form 10-Q, file number 000-06032, filed
    May 15, 2000 with the Commission) *                                                            
|
| |  | (t) |  | Amendment Number One to the Compass Bancshares, Inc., Special
    Supplemental Retirement Plan, dated April 26, 2000
    (incorporated by reference to Exhibit 10(q) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K,
    file 000-06032, filed March 11, 2002 with the Commission) *                                                                                  
|
| |  | (u) |  | Amendment Number Two to the Compass Bancshares, Inc., Special
    Supplemental Retirement Plan, dated February 9, 2001
    (incorporated by reference to Exhibit 10(r) to Compass
    Bancshares, Inc.s December 31, 2001 Form 10-K,
    file number 000-06032, filed March 11, 2002 with the
    Commission) *                                                                     
|
| |  | (v) |  | Compass Bancshares, Inc., Director & Executive Stock
    Purchase Plan (formerly known as Monthly Investment Plan), as
    Amended and Restated, effective as of September 1, 2001
    (incorporated by reference to Exhibit 4.8 to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-26884, filed July 31, 2001 with
    the Commission) *
|
| |  | (w) |  | Compass Bancshares, Inc. 2002 Incentive Compensation Plan
    (incorporated by reference to Exhibit 4.9 to Compass
    Bancshares, Inc.s Registration Statement on Form S-8,
    Registration No. 333-90806, filed June 19, 2002 with
    the Commission) *                                                                                                                         

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##### Table of Contents





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

| |         |      |  |                                                                                                                                                                                                                                                
| | ------- | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |         | (x)  |  | Form of Performance Contingent Restricted Stock Agreement
    (incorporated by reference to Exhibit 10.1 to Compass
    Bancshares, Inc.s Form 8-K, file number 001-31272,
    filed February 22, 2005 with the Commission) *                 
|
| |         | (y)  |  | Form of Amendment Number One to the Performance Contingent
    Restricted Stock Award Agreement (incorporated by reference to
    Compass Bancshares, Inc.s Form 8-K, file number
    001-31272, filed October 21, 2005 with the Commission) *
|
| |         | (z)  |  | Form of Incentive Stock Option Agreement (incorporated by
    reference to Exhibit 10.2 to Compass Bancshares,
    Inc.s Form 8-K, file number 001-31272, filed
    February 22, 2005 with the Commission) *                                  
|
| |         | (aa) |  | Form of Incentive Stock Option Agreement (incorporated by
    reference to Exhibit 10.3 to Compass Bancshares,
    Inc.s Form 8-K, file number 001-31272, filed
    February 22, 2005 with the Commission) *                                  
|
| |         | (ab) |  | Form of Incentive Stock Option Agreement (incorporated by
    reference to Exhibit 10.4 to Compass Bancshares,
    Inc.s Form 8-K, file number 001-31272, filed
    February 22, 2005 with the Commission) *                                  
|
| |         | (ac) |  | Executive Officer Compensation Arrangements (incorporated by
    reference to Exhibit 10(y) to Compass Bancshares,
    Inc.s March 31, 2005 Form 10-Q, file number
    001-31272, filed May 6, 2005 with the Commission) *                    
|
| |         | (ad) |  | Form of Stock Option Agreement for Non-Employee Directors
    (incorporated by reference to Exhibit 10(cc) to Compass
    Bancshares, Inc.s March 31, 2005 Form 10-Q, file
    number 001-31272, filed May 6, 2005 with the Commission) *     
|
| | (21)    |      |  | Subsidiaries of the registrant                                                                                                                                                                                                                 
|
| | (23)    |      |  | Consents of experts and counsel                                                                                                                                                                                                                
|
| | (31)(a) |      |  | Certification Pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002 by D. Paul Jones, Jr., Chief Executive Officer                                                                                                                     
|
| | (31)(b) |      |  | Certification Pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002 by Garrett. R. Hegel, Chief Financial Officer                                                                                                                      
|
| | (32)(a) |      |  | Certification Pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002 by D. Paul Jones, Jr., Chief Executive Officer                                                                  
|
| | (32)(b) |      |  | Certification Pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002 by Garrett R. Hegel, Chief Financial Officer                                                                    








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

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##### Table of Contents






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 20, 2006 |  | 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 20, 2006
|                                                
|/s/ Garrett R. HegelGarrett R. Hegel             |  | Chief Financial Officer              |  | February 20, 2006
|                                                
|/s/ Kirk P. PressleyKirk P. Pressley             |  | Chief Accounting Officer             |  | February 20, 2006
|                                                
|/s/ James H.
    Click, Jr.James H. Click, Jr.   |  | Director                             |  | February 20, 2006
|                                                
|/s/ Charles W. DanielCharles W. Daniel           |  | Director                             |  | February 20, 2006
|                                                
|/s/ W. Eugene DavenportW. Eugene Davenport       |  | Director                             |  | February 20, 2006
|                                                
|/s/ Tranum FitzpatrickTranum Fitzpatrick         |  | Director                             |  | February 20, 2006
|                                                
|/s/ Carl J.
    Gessler, Jr.Carl J. Gessler, Jr. |  | Director                             |  | February 20, 2006
|                                                
|/s/ Charles E. McMahenCharles E. McMahen         |  | Director                             |  | February 20, 2006
|                                                
|/s/ John S. SteinJohn S. Stein                   |  | Director                             |  | February 20, 2006
|                                                
|/s/ J. Terry StrangeJ. Terry Strange             |  | Director                             |  | February 20, 2006

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