SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES ACT OF 1934
For the period ended December 31, 1995 Commission File No. 0-6032
COMPASS BANCSHARES, INC. EMPLOYEE STOCK OWNERSHIP PLAN
------------------------------------------------------
(Full title of the Plan)
COMPASS BANCSHARES, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 63-0593897
- ------------------------ ------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
15 South 20th Street
Birmingham, Alabama 35233
----------------------------------------
(Address of principal executive offices)
(205) 933-3000
-------------------------------
(Registrant's telephone number)
<PAGE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
FINANCIAL INFORMATION
- ---------------------
Item 1 Audited statements of financial condition as of December 31, 1995
and 1994
Item 2 Audited statements of income and changes in plan equity for the three
years ended December 31, 1995
<PAGE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Financial Statements and Schedules
December 31, 1995, 1994 and 1993
With Independent Auditors' Report Thereon
<PAGE>
Independent Auditors' Report
The Board of Directors
Compass Bancshares, Inc.
We have audited the accompanying statements of net assets available for plan
benefits as of December 31, 1995 and 1994 of Compass Bancshares, Inc. Employee
Stock Ownership Plan and the related statements of changes in net assets
available for plan benefits for each of the years in the three-year period
ended December 31, 1995. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1995 and 1994, and the changes in net assets available for
benefits for each of the years in the three-year period ended December 31,
1995, in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information included
in Schedules I, II, III, and IV is presented for purposes of additional
analysis and is not a required part of the basic financial statements but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ KPMG Peat Marwick LLP
Birmingham, Alabama
June 26, 1996
<PAGE>
<TABLE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1995 and 1994
<CAPTION>
Assets 1995 1994
------ ------------- -----------
<S> <C> <C>
Investments, at fair value:
Compass Bancshares, Inc.
common stock - (cost of $38,765,202
and $34,662,895 for 1995 and 1994, respectively) $ 91,235,529 60,010,786
Compass Bank, Inc. common trust funds (cost of
$5,525,953 and $4,338,692 for 1995 and
1994, respectively) 7,513,173 5,219,088
GIC mutual fund - Capital Preservation Fund
(at cost which equals fair value) 4,378,779 4,434,695
Money market fund (at cost which equals fair value) 1,656,249 1,582,853
Loans to participants (at principal balance which
approximates fair value) 4,385 29,503
------------- ----------
104,788,115 71,276,925
Dividends and interest income receivable 802,175 643,766
Cash 3,378 375,698
Employee contributions receivable 125,608 111,447
Employer contributions receivable 45,523 2,990,173
Due from broker - 175,491
------------- ----------
Total assets 105,764,799 75,573,500
Liabilities
-----------
Due to broker - 1,471,719
------------- ----------
Total liabilities - 1,471,719
------------- ----------
Net assets available for plan benefits $ 105,764,799 74,101,781
============= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years Ended December 31, 1995, 1994 and 1993
<CAPTION>
1995 1994 1993
-------------- ----------- -----------
<S> <C> <C> <C>
Investment income:
Dividends - Compass Bancshares, Inc.
common stock $ 3,105,538 2,425,645 1,947,834
Interest 358,413 378,804 352,126
Net investment income 3,463,951 2,804,449 2,299,960
Net realized gain on sale of investments 2,496,095 149,813 93,608
Unrealized appreciation (depreciation)
of investments 28,229,260 (492,087) (3,800,841)
-------------- ----------- -----------
34,189,306 2,462,175 (1,407,273)
Contributions:
Employee 3,049,865 2,767,905 2,236,517
Employer 1,115,422 3,984,001 3,864,833
-------------- ----------- -----------
4,165,287 6,751,906 6,101,350
Distributions paid to participants (7,244,825) (5,107,304) (4,229,911)
Rollovers 553,250 45,553 784,819
-------------- ----------- -----------
Net increase 31,663,018 4,152,330 1,248,985
Net assets available for plan benefits:
Beginning of year 74,101,781 69,949,451 68,700,466
-------------- ----------- -----------
End of year $ 105,764,799 74,101,781 69,949,451
============== ========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
December 31, 1995, 1994 and 1993
Summary of Significant Accounting Policies
(a) Basis of Presentation
The accompanying financial statements of Compass Bancshares, Inc. Employee
Stock Ownership Plan (the Plan) have been prepared on an accrual basis in
accordance with generally accepted accounting principles.
(b) Investments in Securities
Investments in securities are stated at fair value. The fair value of
corporate securities is based on quotations obtained from national securities
exchanges. Common trust funds and the money market and GIC mutual funds are
valued at current unit value. Purchases and sales of securities are recorded
on a trade-date basis. Realized gains and losses are calculated using
the average cost method.
(c) Plan Expenses
The trust department of Compass Bank (the Trustee) is trustee for the Plan.
Compass Bank is a wholly-owned banking subsidiary of Compass Bancshares, Inc.
(the Company or Employer). Administration fees paid to the Trustee are
reimbursed to the Plan by the Company. Trustee administration fees were
$377,048, $304,534, and $289,575 for the years ended December 31, 1995, 1994
and 1993, respectively.
(d) Federal Income Taxes
A determination letter has been received from the Internal Revenue Service
stating that the Plan qualifies under Section 401 of the Internal Revenue Code
and that the Plan is exempt from federal income tax. Amounts contributed by
the employer and Plan earnings and appreciation in the value of investments
will not be taxed to the employee until a distribution is received from the
Plan, except for appreciation in the value of Compass Bancshares, Inc. common
stock which will not be taxed until the participant disposes of that stock.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Plan administrators to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of the components of changes in net assets
during the reporting period. Actual results could differ from those
estimates.
(Continued)
<PAGE>
- 2 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(2) Organization
The Plan was adopted on November 19, 1976, effective January 1, 1976. The Plan
was amended, effective April 1, 1986, to include a salary reduction feature
which permits employees who participate (Participants) in the Plan to defer and
save part of their compensation, as provided for under Section 401(k) of the
Internal Revenue Code. The Plan is subject to the applicable provisions of the
Employee Retirement Income Security Act of 1974, as amended (ERISA).
(3) Description of Plan
(a) Participant Contributions
Employees automatically become Participants on the first day of January or
July following completion of one year of service. Participants may elect
to have up to 10 percent of their compensation deferred and contributed to
the Plan. There were 3,792, 3,605, and 3,236 participants as of December
31, 1995, 1994, and 1993, respectively.
Participants may allocate their contributions, in multiples of I percent,
to the following funds:
(i) Fund A - Employee/Employer Company Stock Fund:
Invested entirely in common stock of Compass Bancshares, Inc.;
(ii) Fund B - Employee Growth Equity Fund: Invested primarily in
a diversified portfolio of growth stocks. The assets of Fund B
have been invested in the Compass Bank Employee Benefit Asset
Growth Equity Collective Investment Fund;
(iii) Fund C - Employee Capital Preservation Fund:
Invested in the Capital Preservation Fund, a mutual fund that
invests solely in guaranteed investment contracts with insurance
companies;
(iv) Fund D - Compass Bank Employee Starburst Money Market Fund:
Invested primarily in P-1 rated commercial paper and other money
market instruments maturing in one year or less;
(v) Fund E - Employee Value Equity Fund: Invested primarily in a
diversified portfolio of defensive-oriented stocks stressing
value and low price-to-earnings ratios. The collective fund may
also invest in a significant amount of short-term cash
equivalents. The assets of Fund E have been invested in the
Compass Bank Employee Benefit Value Collective Investment Fund;
(Continued)
<PAGE>
- 3 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(3) Description of Plan, Continued
(a) Participant Contributions, Continued
(vi) Fund F - Employee Contrarian Equity Fund: Invested primarily in
a diversified portfolio of stocks which are determined to be a
good value notwithstanding that the price of such stocks may be
currently depressed and the stocks may be currently out-of-favor
with the market. The assets of Fund F have been invested in the
Compass Bank Employee Benefit Basic Value Collective Investment
Fund; and
(vii) Fund G - Employee Short-Term, High Quality Bond Fund:
Invested primarily in a diversified portfolio of corporate and
governmental debt securities, money market funds, asset-backed
securities, including collateralized mortgage obligations, and
other types of securities. The assets of Fund G have been
invested in the Compass Bank Employee Benefit Short-Term, High
Quality Bond Fund. Fund G was originated in 1994.
The assets in Funds B, E, F, and G have been invested in common trust
funds of the trust department of Compass Bank. Compass Bank is the
investment advisor for the Starburst Money Market Fund (Fund D).
(b) Employer Contributions
The Employer, in its sole discretion, may make matching contributions in an
amount determined by the board of directors of the Company. These matching
contributions may not exceed the lesser of a Participant's elective
contribution or 2 percent of such Participant's base compensation. If the
Employer's earnings reach a targeted amount, the Employer may contribute an
additional I percent matching amount. Such contributions are allocated to
employee amounts based on relative compensation. For the years ended
December 31, 1994 and 1993, the employer's earnings reached the targeted
amount and the matching contribution was the lesser of the Participant's
elective contribution or 3 percent of the Participant's base compensation.
The employer's earnings did not reach the target in 1995.
(c) Vesting
Participants have a fully-vested and nonforfeitable interest in the portion
of their accounts attributable to their contributions and the Employer's
matching contributions, including earnings thereon. A Participant acquires
a vested interest in accounts attributable to Employer discretionary
contributions based on length of employment, as follows:
Years of Service Vesting Percentage
---------------- ------------------
Less than 5 0
5 or more 100
(Continued)
<PAGE>
- 4 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(3) Description of Plan, Continued
(d) Forfeitures
If a Participant incurs a "break in service," as defined in the Plan, for
any reason other than permanent disability, death or normal retirement, and
is not 100 percent vested in the employer discretionary contributions, the
nonvested portion is forfeited. Forfeited amounts attributable to employer
discretionary contributions are allocated among eligible Participants in
the same manner as employer discretionary contributions.
(e) Withdrawal Provisions
Participants may request that all or part of their accounts attributable to
elective contributions, adjusted for gain or loss thereon, be paid to them
to meet an immediate and heavy financial hardship for which funds are not
reasonably available to them from other sources. The amount paid to a
Participant in this fashion will be taxable and may not be repaid to the
Plan.
(f) Priorities Upon Termination
Upon termination of the Plan, all Participants' funds shall become fully
vested. The trust will continue until the Plan benefits of each
Participant has been distributed.
(g) Rollovers
During 1995, 1994 and 1993, assets were rolled into the Plan from the plans
that were associated with banks acquired by the Company.
(Continued)
<PAGE>
- 5 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(4) Investments
The investments of the Plan as of December 31, 1995 and 1994 are summarized as
follows:
<TABLE>
<CAPTION>
Fair value
Number of per share Fair
shares/units Cost or unit value
December 31, 1995 ------------ ------------ ---------- -----------
- -----------------
<S> <C> <C> <C> <C>
Common stock -
Compass Bancshares, Inc. 2,764,713 $ 38,765,202 33.00 91,235,529
Compass Bank, Inc. common
trust funds-
Employee Benefit Asset
Growth Fund 30,910 1,802,155 72.41 2,238,232
Employee Benefit Value
Equity Fund 41,735 1,858,631 60.64 2,530,684
Employee Benefit Contrarian
Equity Fund 65,328 1,731,384 39.83 2,601,806
Employee Benefit Short-Term,
High Quality Bond Fund 9,447 133,783 15.08 142,451
----------- ------------ -----------
147,420 5,525,953 7,513,173
GIC mutual fund - Capital
Preservation Fund 437,744 4,378,779 10.00 4,378,779
Compass Bank, Inc. Starburst
Money Market Fund 1,656,249 1,656,249 1.00 1,656,249
Loans to participants 4,385 4,385 1.00 4,385
------------ -----------
$ 50,330,568 104,788,115
============ ===========
December 31, 1994
- -----------------
Common stock -
Compass Bancshares, Inc. 2,727,763 $ 34,662,895 22.00 60,010,786
Compass Bank, Inc. common
trust funds-
Employee Benefit Asset
Growth Fund 27,602 1,498,156 61.66 1,701,933
Employee Benefit Value
Equity Fund 36,088 1,450,615 48.17 1,738,249
Employee Benefit Contrarian
Equity Fund 57,007 1,350,930 30.52 1,739,907
Employee Benefit Short-Term,
High Quality Bond Fund 2,885 38,991 13.52 38,999
----------- ------------ ------ -----------
123,582 4,338,692 5,219,088
GIC mutual fund - Capital
Preservation Fund 443,470 4,434,695 10.00 4,434,695
Compass Bank, Inc. Starburst
Money Market Fund 1,582,853 1,582,853 1.00 1,582,853
Loans to participants 29,503 29,503 1.00 29,503
------------ -----------
$ 45,048,638 72,276,925
============ ===========
</TABLE>
(Continued)
<PAGE>
- 6 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(4) Investments, Continued
The net unrealized appreciation (depreciation) of investments included in plan
equity is as follows:
<TABLE>
<CAPTION>
Other Combined
Fund A Fund B Fund E Fund F Fund G ESOP funds funds
------------ -------- -------- ------- ------ ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1992 $ 6,178,591 183,579 144,492 153,203 - 28,025,708 (1,444) 34,684,429
Less: Portion included in
distributions to
participants 298,522 - - - - 2,487,316 (1,444) 2,784,694
Add: 1993 increase
(decrease) (1,109,644) 60,125 156,750 154,184 - (3,062,256) - (3,800,841)
------------ -------- -------- ------- ------ ----------- ------- -----------
Balance at December 31, 1993 4,770,425 243,704 301,242 307,387 - 22,476,136 - 28,098,894
Less: Portion included in
distributions to
participants 337,582 - - - - 1,040,938 - 1,378,520
Add: 1994 increase
(decrease) (358,969) (39,926) (13,609) 81,590 8 (161,181) - (492,087)
------------ -------- -------- ------- ------ ----------- ------- -----------
Balance at December 31, 1994 4,073,874 203,778 287,633 388,977 8 21,274,017 - 26,228,287
Add: 1995 increase 7,914,698 231,155 384,420 481,445 8,660 19,207,738 1,144 28,229,260
------------ -------- -------- ------- ------ ----------- ------- -----------
Balance at December 31, 1995 $11,988,572 434,933 672,053 870,422 8,668 40,481,755 1,144 54,457,547
============ ======== ======== ======= ====== =========== ======= ===========
</TABLE>
Realized gains for the year ended December 31, 1995, 1994 and 1993
were comprised of the following:
<TABLE>
<CAPTION>
1995
----------------------------------------
Sales Aggregate Realized
proceeds cost gain
----------- ---------- -----------
<S> <C> <C> <C>
Common stock - Compass Bancshares, Inc. $ 4,558,485 2,330,387 $ 2,228,098
Compass Bank, Inc. common trust funds 2,484,450 2,216,453 267,997
-----------
$ 2,496,095
===========
</TABLE>
<TABLE>
<CAPTION>
1994
----------------------------------------
Sales Aggregate Realized
proceeds cost gain
----------- ---------- -----------
<S> <C> <C> <C>
Common stock - Compass Bancshares, Inc. $ 206,620 154,336 $ 52,284
Compass Bank, Inc. common trust funds 507,693 410,164 97,529
-----------
$ 149,813
===========
</TABLE>
<TABLE>
<CAPTION>
1993
----------------------------------------
Sales Aggregate Realized
proceeds cost gain
----------- ---------- -----------
<S> <C> <C> <C>
Common stock - Compass Bancshares, Inc. $ 224,566 148,137 $ 76,429
Compass Bank, Inc. common trust funds 101,048 83,869 17,179
-----------
$ 93,608
===========
</TABLE>
(Continued)
- 7 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(5) Fair Value of Financial Instruments
Statement of Financial Accounting Standards No. 107, Disclosures About Fair
Value of Financial Instruments, requires disclosure of fair value information
about financial instruments, whether or not recognized on the face of the
balance sheet, for which it is practical to estimate that value. The
assumptions used in the estimation of the fair value of the Company's financial
instruments are explained in note 1(b) and below. Fair value estimates should
not be considered representative of the liquidation value of the Plan's
financial instruments, but rather a good-faith estimate of the fair value of
financial instruments held by the Plan.
For cash, receivables and payables, the carrying amounts approximate fair value
because of the short-term nature of these instruments.
<PAGE>
SCHEDULE I
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Allocation of Net Assets Available for Plan Benefits to Investment Programs
December 31, 1995
<TABLE>
<CAPTION>
Fund A - Fund B - Fund C - Fund D - Fund E - Fund F - Fund G - ESOP -
Employee/ Employee Employee Employee Employee Employee Employee Employer
Employer Growth Capital Starburst Value Contrarian Short-Term, Company
Company Equity Preservation Money Equity Equity High Quality Stock Unallocated
Assets Stock Fund Fund Fund Market Fund Fund Fund Bond Fund Fund Funds
------ ----------- --------- --------- --------- --------- --------- ------- ----------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value:
Compass Bancshares, Inc
common stock 27,484,314 - - - - - - 63,751,215 -
Compass Bank, Inc. common
trust funds - 2,238,232 - - 2,530,684 2,601,806 142,451 - -
Deposit administration
contract - - 4,378,779 - - - - - -
Money market fund 10,144 - - 1,646,105 - -
Loans to participants - - - - - - - - 4,385
----------- --------- --------- --------- --------- --------- ------- ----------- ------
27,494,458 2,238,232 4,378,779 1,646,105 2,530,684 2,601,806 142,451 63,751,215 4,385
Dividends and interest
income receivable 232,530 - 20,846 7,814 - - - 540,985 -
Cash 3,304 - - - - - - (2) 76
Employee contributions
receivable 52,589 14,914 19,449 5,682 14,913 16,927 1,134 - -
Employer contributions
receivable 45,523 - - - - - - - -
Total assets and net
assets available
for plan benefits $27,828,404 2,253,146 4,419,074 1,659,601 2,545,597 2,618,733 143,585 64,292,198 4,461
=========== ========= ========= ========= ========= ========= ======= ========== ======
</TABLE>
<PAGE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Allocation of Net Assets Available for Plan Benefits to Investment Programs
December 31, 1994
<TABLE>
<CAPTION>
Fund A - Fund B - Fund C - Fund D - Fund E - Fund F - Fund G - ESOP -
Employee/ Employee Employee Employee Employee Employee Employee Employer
Employer Growth Capital Starburst Value Contrarian Short-Term, Company
Company Equity Preservation Money Equity Equity High Quality Stock Unallocated
Assets Stock Fund Fund Fund Market Fund Fund Fund Bond Fund Fund Funds
------ ----------- --------- --------- --------- --------- --------- ------- ----------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value:
Compass Bancshares, Inc.
common stock $16,635,146 - - - - - 43,375,640 -
Compass Bank, Inc. common
trust funds - 1,701,933 - - 1,738,249 1,739,907 38,999 - -
GIC mutual fund - Capital
Preservation Fund - - 4,434,695 - - - - - -
Money market fund 56,310 - - 1,524,754 1,196 593 -
Loans to participants - - - - - - - - 29,503
----------- --------- --------- --------- --------- --------- ------- ----------- ------
16,691,456 1,701,933 4,434,695 1,524,754 1,738,249 1,739,907 38,999 43,376,836 30,096
Dividends and interest
income receivable 175,133 - 22,775 7,860 - - - 437,998 -
Cash 37,942 27,683 56,153 193,297 27,862 31,417 - 1 1,343
Employee contributions
receivable 48,831 12,386 20,478 4,740 12,373 12,588 51 - -
Employer contributions
receivable 449,128 - - - - - - 2,541,045 -
Due from broker 175,491 - - - - - - - -
----------- --------- --------- --------- --------- --------- ------- ----------- ------
Total assets 17,577,981 1,742,002 4,534,101 1,730,651 1,778,484 1,783,912 39,050 46,355,880 31,439
----------- --------- --------- --------- --------- --------- ------- ----------- ------
Liabilities
-----------
Due to broker - - - - - - - 1,471,719 -
----------- --------- --------- --------- --------- --------- ------- ----------- ------
Total liabilities - - - - - - - 1,471,719 -
Net assets available
for plan benefits $17,577,981 1,742,002 4,534,101 1,730,651 1,778,484 1,783,912 39,050 44,884,161 31,439
=========== ========= ========= ========= ========= ========= ======= ========== ======
</TABLE>
<PAGE>
SCHEDULE II
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Allocation of Changes in Net Assets Available for Plan Benefits to Investment
Programs
Year Ended December 31, 1995
<TABLE>
<CAPTION>
Fund A - Fund B - Fund C - Fund D - Fund E - Fund F - Fund G - ESOP -
Employee/ Employee Employee Employee Employee Employee Employee Employer
Employer Growth Capital Starburst Value Contrarian Short-Term, Company
Company Equity Preservation Money Equity Equity High Quality Stock Unallocated
Stock Fund Fund Fund Market Fund Fund Fund Bond Fund Fund Funds
----------- --------- --------- --------- --------- --------- ------- ----------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends - Compass
Bancshares, Inc.
common stock $ 902,658 - - - - - - 2,202,353 527
Interest 7,307 - 252,581 91,424 - - - 5,599 1,502
----------- --------- --------- --------- --------- --------- ------- ----------- ------
Net investment income 909,965 - 252,581 91,424 - - - 2,207,952 2,029
Net realized gain on sale
of investments 599,112 70,352 - - 96,957 97,692 2,996 1,628,986 -
Unrealized appreciation
(depreciation) of
investments 7,914,698 231,155 - - 384,420 481,445 8,660 19,207,738 1,144
----------- --------- --------- --------- --------- --------- ------- ----------- ------
9,423,775 301,507 252,581 91,424 481,377 579,137 11,656 23,044,676 3,173
Contributions:
Employee 1,304,618 349,378 506,055 123,812 354,110 395,198 16,594 - 100
Employer 1,115,422 - - - - - - -
----------- --------- --------- --------- --------- --------- ------- ----------- ------
2,420,040 349,378 506,055 123,812 354,110 395,198 16,594 - 100
----------- --------- --------- --------- --------- --------- ------- ----------- ------
Distributions paid to
participants (1,714,210) (238,822) (772,737) (389,789) (242,178) (247,217) (1,162) (3,630,480) (8,230)
Rollovers and transfers 120,818 99,080 (100,925) 103,503 173,804 107,703 77,448 (6,159) (22,022)
----------- --------- --------- --------- --------- --------- ------- ----------- ------
Net increase (decrease) 10,250,423 511,143 (115,026) (71,050) 767,113 834,821 104,536 19,408,037 (26,979)
Net assets available for
Plan benefits:
Beginning of year 17,577,981 1,742,002 4,534,101 1,730,651 1,778,484 1,783,912 39,050 44,884,161 31,439
----------- --------- --------- --------- --------- --------- ------- ----------- ------
End of year $27,828,404 2,253,146 4,419,074 1,659,601 2,545,597 2,618,733 143,585 64,292,198 4,461
=========== ========= ========= ========= ========= ========= ======= ========== ======
</TABLE>
<PAGE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Allocation of Changes in Net Assets Available for Plan Benefits to Investment
Programs
Year Ended December 31, 1994
<TABLE>
<CAPTION>
Fund A - Fund B - Fund C - Fund D - Fund E - Fund F - Fund G - ESOP -
Employee/ Employee Employee Employee Employee Employee Employee Employer
Employer Growth Capital Starburst Value Contrarian Short-Term, Company
Company Equity Preservation Money Equity Equity High Quality Stock Unallocated
Stock Fund Fund Fund Market Fund Fund Fund Bond Fund Fund Funds
----------- --------- --------- --------- --------- --------- ------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends - Compass
Bancshares, Inc.
common stock $ 670,028 - - - - - - 1,755,617 -
Interest 4,488 335 288,491 75,666 5 5 - 4,660 5,154
----------- --------- --------- --------- --------- --------- ------- ----------- -------
Net investment income 674,516 335 288,491 75,666 5 5 - 1,760,277 5,154
Net realized gain on sale
of investments 41,849 21,944 - - 19,677 55,908 - 10,435 -
Unrealized appreciation
(depreciation) of
investments (358,969) (39,926) - - (13,609) 81,590 8 (161,181) -
----------- --------- --------- --------- --------- --------- ------- ----------- -------
357,396 (17,647) 288,491 75,666 6,073 137,503 8 1,609,531 5,154
----------- --------- --------- --------- --------- --------- ------- ----------- -------
Contributions:
Employee 1,230,926 466,718 495,474 112,064 230,545 231,747 51 - 380
Employer 1,442,956 - - - - - - 2,541,045 -
----------- --------- --------- --------- --------- --------- ------- ----------- -------
2,673,882 466,718 495,474 112,064 230,545 231,747 51 2,541,045 380
----------- --------- --------- --------- --------- --------- ------- ----------- -------
Distributions paid to
participants (1,038,454) (443,963) (1,141,693) (382,162) (52,302) (52,288) - (1,993,830) (2,612)
Rollovers and transfers 440,392 313,392 (315,916) (397,135) 92,723 (47,696) 38,991 6,269 (85,467)
----------- --------- --------- --------- --------- --------- ------- ----------- -------
Net increase (decrease) 2,433,216 318,500 (673,644) (591,567) 277,039 269,266 39,050 2,163,015 (82,545)
Net assets available for
Plan benefits:
Beginning of year 15,144,765 1,423,502 5,207,745 2,322,218 1,501,445 1,514,646 - 42,721,146 113,984
----------- --------- --------- --------- --------- --------- ------- ----------- -------
End of year $17,577,981 1,742,002 4,534,101 1,730,651 1,788,484 1,783,912 39,050 44,884,161 31,439
=========== ========= ========= ========= ========= ========= ======= ===
</TABLE>
<PAGE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Allocation of Changes in Net Assets Available for Plan Benefits to Investment
Programs
Year Ended December 31, 1993
<TABLE>
<CAPTION>
Fund A - Fund B - Fund C - Fund D - Fund E - Fund F - ESOP -
Employee/ Employee Employee Employee Employee Employee Employer
Employer Growth Capital Starburst Value Contrarian Company
Company Equity Preservation Money Equity Equity Stock Unallocated
Stock Fund Fund Fund Market Fund Fund Fund Fund Funds
----------- --------- --------- --------- --------- --------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends - Compass
Bancshares, Inc.
common stock $ 484,312 - - - - - 1,463,314 208
Interest 5,634 746 231,751 82,296 - - 2,433 29,266
----------- --------- --------- --------- --------- --------- ----------- --------
Net investment income 489,946 746 231,751 82,296 - - 1,465,747 29,474
Net realized gain on sale
of investments 30,472 5,196 - - 5,807 6,176 45,957 -
Unrealized appreciation
(depreciation) of
investments (1,109,644) 60,125 - - 156,750 154,184 (3,062,256) -
----------- --------- --------- --------- --------- --------- ----------- --------
(589,226) 66,067 231,751 82,296 162,557 160,360 (1,550,552) 29,474
Contributions:
Employee 974,886 218,434 489,749 116,293 218,434 218,433 - 288
Employer 1,221,153 - - - - - 2,643,680 -
----------- --------- --------- --------- --------- --------- ----------- --------
2,196,039 218,434 489,749 116,293 218,434 218,433 2,643,680 288
----------- --------- --------- --------- --------- --------- ----------- --------
Distributions paid to
participants (1,128,913) (83,087) (159,738) (337,866) (83,087) (83,087) (2,225,982) (128,151)
Rollovers and transfers 781,536 151,048 1,483,214 (1,311,986) 150,797 150,058 (415,697) (204,151)
----------- --------- --------- --------- --------- --------- ----------- --------
Net increase (decrease) 1,259,436 352,462 2,044,976 (1,451,263) 448,701 445,764 (1,548,551) (302,540)
Net assets available for
Plan benefits:
Beginning of year 13,885,329 1,071,040 3,162,769 3,773,481 1,052,744 1,068,882 44,269,697 416,524
----------- --------- --------- --------- --------- --------- ----------- --------
End of year $15,144,765 1,423,502 5,207,745 2,322,218 1,501,445 1,514,646 42,721,146 113,984
=========== ========= ========= ========= ========= ========= =========== ========
</TABLE>
<PAGE>
SCHEDULE III
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
As of December 31, 1995
<TABLE>
<CAPTION>
December 31, 1995
-------------------------------------------------------
Number of Fair value per Fair
shares/units Cost share or unit value
------------ ------------ -------------- -----------
<S> <C> <C> <C> <C>
Common stock -
Compass Bancshares, Inc. 2,764,713 $ 38,765,202 33.00 91,235,529
Compass Bank, Inc. common trust funds-
Employee Benefit Asset
Growth Fund - Burridge 30,910 1,802,155 72.41 2,238,232
Employee Benefit Value
Equity Fund - Wedge 41,735 1,858,631 60.64 2,530,684
Employee Benefit Contrarian
Equity Fund - Chicago
Asset Management 65,328 1,731,384 39.83 2,601,806
Employee Benefit Short-Term,
High Quality Bond Fund 9,447 133,783 15.08 142,451
---------- ------------ -----------
147,420 5,525,953 7,513,173
Deposit administration
contract 437,744 4,378,779 10.00 4,378,779
Compass Bank, Inc. Starburst
Money Market Fund* 1,656,249 1,656,249 1.00 1,656,249
Loans to participants 4,385 1.00 4,385
------------ -----------
$ 50,330,568 104,788,115
============ ===========
</TABLE>
* The common trust funds and the Starburst Money Market Fund are
managed by Compass Bank, a party-in-interest to the Plan.
<PAGE>
SCHEDULE IV
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Item 27d - Schedule of Reportable Transactions
Year Ended December 31, 1995
<TABLE>
<CAPTION>
Description of Current value
Identity of asset in number Purchase Selling Cost of of asset on Net gain
party involved of shares price price asset transaction date (loss)
-------------- --------------- ---------- --------- --------- ---------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Purchase of investments:
Compass Bancshares, Inc.
common stock* 343,474 $9,011,309 - 9,011,309 9,011,309 -
Starburst Money Market 9,093,773 9,093,773 - 9,093,773 9,093,773 -
Sale of investments:
Compass Bancshares, Inc.
common stock* 163,142 - 4,561,405 2,330,388 4,561,405 2,231,017
Starburst Money Market 9,019,785 - 9,019,785 9,019,785 9,019,785 -
</TABLE>
* The Starburst Money Market Fund is managed by Compass Bank, a party-in-
interest to the Plan.
<PAGE>
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees have duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
COMPASS BANCSHARES, INC. EMPLOYEE STOCK OPTION PLAN
---------------------------------------------------
(Name of the Plan)
June 28, 1996 /s/ Garrett R. Hegel
- ------------- -----------------------
DATE GARRETT R. HEGEL
CHIEF FINANCIAL OFFICER
<PAGE>
EXHIBITS
Exhibit (23) - Consents of experts and counsel
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Administrative Committee
Compass Bancshares, Inc. Employee Stock Ownership Plan:
We consent to incorporation by reference in the registration statement on Form
S-8 of Compass Bancshares, Inc. Employee Stock Ownership Plan of our report
dated June 26, 1996, relating to the statements of net assets available for
plan benefits of Compass Bancshares, Inc. Employee Stock Ownership Plan as of
December 31, 1995 and 1994, and the related statements of changes in net assets
available for plan benefits and related schedules for each of the years in the
three year period ended December 31, 1995, which report appears in the December
31, 1995 Annual Report on Form 11-K of Compass Bancshares, Inc. Employee Stock
Ownership Plan.
/s/ KPMG Peat Marwick LLP
Birmingham, Alabama
June 26, 1996
