16% Rise in Revenue Spurs Higher Earnings at Compass Bank

Higher revenue sparked stronger net interest income and non-interest income at Compass Bancshares Inc., spurring the bank to post higher earnings for the second quarter.

Birmingham, Ala.-based Compass earned $115.4 million last quarter, up 9% from $106 million, in the prior-year quarter.

On a per-share basis, Compass earned $0.88 per share, in line with analysts' estimates and up from $0.83 in the second quarter of 2005.

Strong loan growth and low-cost deposits boosted year-over-year net interest income 22% -- to $287.7 million from $236.5 million -- and non-interest income 7% -- to $181.4 million from $170 million. Revenue increased 16% to $469.1 million from $406.1 million.

Compass Bancshares is a $30 billion financial holding company that operates 385 branches in Alabama, Arizona, Colorado, Florida, New Mexico, and Texas. In March, Compass agreed to acquire TexasBanc Holding Co., a Fort Worth, Texas, bank with $1.7 billion of assets.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.