Compass Bancshares in Alabama said Friday that it plans to enter Colorado with an agreement to buy Denver-based Megabank Financial Corp. for $94 million in stock.

Buying $298 million-asset Megabank, which has nine branches in metropolitan Denver, would continue an expansion in the West by Birmingham-based Compass. It entered Arizona last December when it bought $285 million-asset Arizona Bank in Tucson; in July it announced its intention to cross into New Mexico by purchasing $758 million-asset Western Bancshares in Albuquerque.

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