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, 1996 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, 1996
and 1995
Item 2 Audited statements of income and changes in plan equity for the three
years ended December 31, 1996
<PAGE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Financial Statements and Schedules
December 31, 1996, 1995 and 1994
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, 1996 and 1995 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, 1996. 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, 1996 and 1995, and the changes in net assets
available for benefits for each of the years in the three-year period
ended December 31, 1996, 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 and II 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 25, 1997
<PAGE>
<TABLE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1996 and 1995
<CAPTION>
Assets 1996 1995
------ ------------- ------------
<S> <C> <C>
Investments, at fair value:
Compass Bancshares, Inc.
common stock - (cost of $41,752,828
and $38,765,202 for 1996 and 1995, respectively) $ 109,780,556 91,235,529
Compass Bank, Inc. common trust funds (cost of
$9,501,975 and $5,525,953 for 1996 and
1995, respectively) 12,667,303 7,513,173
GIC - Capital Preservation Fund
(at contract value) 3,905,870 4,378,779
Money market fund (at cost which equals fair value) 1,993,977 1,656,249
Loans to participants (at principal balance which
approximates fair value) - 4,385
------------- -----------
128,347,706 104,788,115
Dividends and interest income receivable 908,562 802,175
Cash 149,810 3,378
Employee contributions receivable 162,164 125,608
Employer contributions receivable 1,741,430 45,523
------------- -----------
Net assets available for plan benefits $ 131,309,672 105,764,799
============= ===========
</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, 1996, 1995 and 1994
<CAPTION>
1996 1995 1994
-------------- ------------ -----------
<S> <C> <C> <C>
Investment income:
Dividends - Compass Bancshares, Inc.
common stock $ 3,512,058 3,105,538 2,425,645
Interest 329,851 358,413 378,804
-------------- ------------ -----------
Net investment income 3,841,909 3,463,951 2,804,449
Net realized gain on sale of investments 3,539,120 2,496,095 149,813
Unrealized appreciation (depreciation)
of investments 16,735,603 28,229,260 (492,087)
-------------- ------------ -----------
24,116,632 34,189,306 2,462,175
-------------- ------------ -----------
Contributions:
Employee 3,784,030 3,049,865 2,767,905
Employer 4,774,512 1,115,422 3,984,001
-------------- ------------ -----------
8,558,542 4,165,287 6,751,906
Distributions paid to participants (11,081,988) (7,244,825) (5,107,304)
Rollovers 3,951,687 553,250 45,553
-------------- ------------ -----------
Net increase 25,544,873 31,663,018 4,152,330
Net assets available for plan benefits:
Beginning of year 105,764,799 74,101,781 69,949,451
-------------- ------------ -----------
End of year $ 131,309,672 105,764,799 74,101,781
============== =========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
December 31, 1996, 1995 and 1994
(1) 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
Corporate securities are valued based on quotations obtained from
national securities exchanges. Common trust funds are valued at their
current unit value. The GIC - Capital Preservation Fund is valued at
contract value and the money market is valued at cost which equals fair
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 $449,271, $377,048, and $304,534 for the years
ended December 31, 1996, 1995 and 1994, 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 4,070, 3,792, and 3,605
participants as of December 31, 1996, 1995, and 1994, respectively.
Participants may allocate their contributions, in multiples of 1
percent, to the following funds:
(1) Fund A - Employee/Employer Company Stock Fund: Invested entirely
in common stock of Compass Bancshares, Inc.;
(2) Fund B - Employee Benefit Growth Stock Collective Investment
Fund (formerly Employee Growth Equity Fund): The assets of Fund
B have been invested in the Compass Bank Employee Benefit Asset
Growth Equity Collective Investment Fund which invests primarily
in a diversified portfolio of growth stocks.
(3) Fund C - GIC - Employee Capital Preservation Fund: Invested in
the Capital Preservation Fund, which invests solely in guaranteed
investment contracts with insurance companies;
(4) 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;
(5) Fund E - Employee Benefit Value Stock Collective Investment Fund
(formerly Employee Value Equity Fund): The assets of Fund E have
been invested in the Compass Bank Employee Benefit Value
Collective Investment Fund which invests 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.
(Continued)
<PAGE>
- 3 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(3) Description of Plan, Continued
(a) Participant Contributions, Continued
(6) Fund F - Employee Benefit Contrarian Stock Collective Investment
Fund (formerly Employee Contrarian Equity Fund): The assets of
Fund F have been invested in the Compass Bank Employee Benefit
Basic Value Collective Investment Fund which invests 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. and
(7) Fund G - Employee Benefit Short-Term, High Quality Bond
Collective Investment Fund (formerly Employee Short-Term, High
Quality Bond Fund): The assets of Fund G have been invested in
the Compass Bank Employee Benefit Short-Term, High Quality Bond
Fund which invests 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 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 1 percent matching amount. Such contributions
are allocated to employee amounts based on relative compensation. For
the years ended December 31, 1996 and 1994, the employer's earnings
reached the targeted amount. The matching contribution for these two
years 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.
(Continued)
<PAGE>
- 4 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(3) Description of Plan, Continued
(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 the
additional 1 percent contribution based on length of employment, as
follows:
Years of Service Vesting Percentage
---------------- ------------------
Less than 5 0
5 or more 100
(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 1996, 1995 and 1994, 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, 1996 and 1995 are summarized as
follows:
<TABLE>
<CAPTION>
Fair value
Number of per share Fair
shares/units Cost or unit value
December 31, 1996 ------------ ------------ ---------- -----------
- -----------------
<S> <C> <C> <C> <C>
Common stock -
Compass Bancshares, Inc. 2,761,775 $ 41,752,828 39.75 109,780,556
------------ -----------
Compass Bank, Inc. common
trust funds-
Employee Benefit Growth Stock
Collective Investment Fund 42,756 2,871,197 86.86 3,713,654
Employee Benefit Value Stock
Collective Investment Fund 154,914 3,171,090 28.62 4,433,044
Employee Benefit Short-Term,
High Quality Bond Colletive
Investment Fund 36,915 555,433 15.72 580,260
Employee Benefit Contrarian
Stock Collective Investment Fund 86,242 2,904,255 45.69 3,940,345
------------ -----------
9,501,975 12,667,303
------------ -----------
GIC - Capital Preservation Fund 390,587 3,905,776 10.00 3,905,870
Compass Bank, Inc. Starburst
Money Market Fund 1,993,977 1,993,977 1.00 1,993,977
------------ -----------
$ 57,154,556 128,347,706
============ ===========
December 31, 1995
- -----------------
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
------------ -----------
5,525,953 7,513,173
------------ -----------
GIC - 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
============ ===========
</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>
Combined
Fund A Fund B Fund E Fund F Fund G Fund C funds
------------ -------- ---------- --------- ------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1993 $27,246,561 243,704 301,242 307,387 - - 28,098,894
Less: Portion included in
distributions to
participants 1,378,520 - - - - - 1,378,520
Add: 1994 appreciation
(depreciation) (520,150) (39,926) (13,609) 81,590 8 - (492,087)
------------ -------- ---------- --------- ------ ------- -----------
Balance at December 31, 1994 25,347,891 203,778 287,633 388,977 8 - 26,228,287
Add: 1995 appreciation 27,122,436 232,299 384,420 481,445 8,660 - 28,229,260
------------ -------- ---------- --------- ------ ------- -----------
Balance at December 31, 1995 52,470,327 436,077 672,053 870,422 8,668 - 54,457,547
Add: 1996 appreciation 15,557,401 406,380 589,901 165,668 16,159 94 16,735,603
------------ -------- ---------- --------- ------ ------- -----------
Balance at December 31, 1996 $68,027,728 842,457 1,261,954 1,036,090 24,827 94 71,193,150
============ ======== ========== ========= ====== ======= ===========
</TABLE>
Realized gains for the year ended December 31, 1996, 1995 and 1994
were comprised of the following:
<TABLE>
<CAPTION>
1996
----------------------------------------
Sales Aggregate Realized
proceeds cost gain
----------- ---------- -----------
<S> <C> <C> <C>
Common stock - Compass Bancshares, Inc. $ 5,455,746 2,485,740 $ 2,970,005
Compass Bank, Inc. common trust funds 3,919,726 3,350,611 569,115
-----------
$ 3,539,120
===========
</TABLE>
<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>
(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>
- 8 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(6) Investment Funds
The financial information on each investment fund option is presented below:
<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
December 31, 1996 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 $35,718,833 - - - - - - 74,061,723 -
Compass Bank, Inc. common
trust funds - 3,713,654 - - 4,433,044 3,940,345 580,260 - -
GIC - Capital Preservation
Fund - - 3,905,870 - - - - - -
Money market fund 109,501 - - 1,882,554 1,922 -
----------- --------- --------- --------- --------- --------- ------- ----------- -------
35,828,334 3,713,654 3,905,870 1,882,554 4,433,044 3,940,345 580,260 74,063,645 -
Dividends and interest
income receivable 285,775 - 18,276 8,291 - - - 596,220 -
Cash 149,479 - - - 324 305 - - (298)
Employee contributions
receivable 64,351 22,978 17,977 6,111 21,784 26,246 2,717 - -
Employer contributions
receivable 615,572 - - - - - - 1,125,858 -
----------- --------- --------- --------- --------- --------- ------- ----------- -------
Net assets available
for plan benefits $36,943,511 3,736,632 3,942,123 1,896,956 4,455,152 3,966,896 582,977 75,785,723 (298)
=========== ========= ========= ========= ========= ========= ======= ========== =======
</TABLE>
- 9 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(6) Investment Funds, Continued
<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
December 31, 1995 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 - -
GIC - Capital Preservation
Fund - - 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 - - - - - - - -
----------- --------- --------- --------- --------- --------- ------- ----------- ------
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>
- 10 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(6) Investment Funds, Continued
<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
December 31, 1996 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 $ 1,109,479 - - - - - - 2,402,579 -
Interest 4,955 - 225,427 93,168 - - - 6,301 -
----------- --------- --------- --------- --------- --------- -------- ----------- -------
Net investment income 1,114,434 - 225,427 93,168 - - - 2,408,880 -
Net realized gain on sale
of investments 832,227 128,174 (64) - 154,473 280,347 6,184 2,137,779 -
Unrealized appreciation
of investments 5,302,016 406,381 94 - 589,899 165,668 16,158 10,255,387 -
----------- --------- --------- --------- --------- --------- -------- ----------- -------
7,248,677 534,555 225,457 93,168 744,372 446,015 22,342 14,802,046 -
----------- --------- --------- --------- --------- --------- -------- ----------- -------
Contributions:
Employee 1,487,008 526,064 481,363 140,138 498,963 591,567 58,927 - -
Employer 1,845,693 - - - - - - 2,928,819 -
----------- --------- --------- --------- --------- --------- -------- ----------- -------
3,332,701 526,064 481,363 140,138 498,963 591,567 58,927 2,928,819 -
----------- --------- --------- --------- --------- --------- -------- ----------- -------
Distributions paid to
participants (2,776,922) (267,654) (679,933) (497,939) (253,256) (314,921) (49,264) (6,237,340) (4,759)
Rollovers and transfers 1,310,651 690,521 (503,838) 501,988 919,476 625,502 407,387 - -
----------- --------- --------- --------- --------- --------- -------- ----------- -------
Net increase (decrease) 9,115,107 1,483,486 (476,951) 237,355 1,909,555 1,348,163 439,392 11,493,525 (4,759)
Net assets available for
Plan benefits:
Beginning 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
----------- --------- --------- --------- --------- --------- -------- ----------- -------
End of year $36,943,511 3,736,632 3,942,123 1,896,956 4,455,152 3,966,896 582,977 75,785,723 (298)
=========== ========= ========= ========= ========= ========= ======== ========== =======
</TABLE>
<PAGE>
- 11 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(6) Investment Funds, Continued
<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
December 31, 1995 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>
- 12 -
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
(6) Investment Funds, Continued
<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>
SCHEDULE I
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
As of December 31, 1996
<TABLE>
<CAPTION>
Fair value
Number of per share Fair
shares/units Cost or unit value
December 31, 1996 ------------ ------------ ---------- -----------
- -----------------
<S> <C> <C> <C> <C>
Common stock -
Compass Bancshares, Inc.* 2,761,775 $ 42,680,225 39.75 109,780,556
Compass Bank, Inc. common
trust funds-
Employee Benefit Growth Stock
Collective Investment Fund 42,756 2,872,340 86.86 3,713,654
Employee Benefit Value Stock
Collective Investment Fund 154,914 3,171,090 28.62 4,433,044
Employee Benefit Contrarian
Stock Collective Investment Fund 86,242 2,904,255 45.69 3,940,345
Employee Benefit Short-Term,
High Quality Bond Colletive
Investment Fund 36,915 555,433 15.72 580,260
------------ -----------
9,501,975 12,667,303
GIC - Capital Preservation Fund 390,587 3,905,776 10.00 3,905,870
Compass Bank, Inc. Starburst
Money Market Fund 1,993,977 1,993,977 1.00 1,993,977
------------ -----------
$ 58,083,097 128,347,706
============ ===========
</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 II
COMPASS BANCSHARES, INC.
EMPLOYEE STOCK OWNERSHIP PLAN
Item 27d - Schedule of Reportable Transactions
Year Ended December 31, 1996
<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* 269,400 $ 9,243,271 - 9,243,271 9,243,271 -
Starburst Money Market 14,078,435 14,078,435 - 14,078,435 14,078,435 -
Sale of investments:
Compass Bancshares, Inc.
common stock* 163,187 - 5,455,746 2,485,740 5,455,746 2,970,006
Starburst Money Market 13,740,708 - 13,740,708 13,740,708 13,740,708 -
</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 25, 1997, relating to the statements of net assets
available for plan benefits of Compass Bancshares, Inc. Employee Stock
Ownership Plan as of December 31, 1996 and 1995, 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, 1996, which
report appears in the December 31, 1996 Annual Report on Form 11-K of Compass
Bancshares, Inc. Employee Stock Ownership Plan.
/s/ KPMG Peat Marwick LLP
Birmingham, Alabama
June 25, 1997
