-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FBAw9nbvw2CuyHsqnoRLRiNf9NpyB0Vn7YbVPh0GX6Q9LzD4dX+pP+KgooqhHKXO oh7Jv74xyCg8L3s5yygCkg== 0001193125-05-144198.txt : 20050719 0001193125-05-144198.hdr.sgml : 20050719 20050719085603 ACCESSION NUMBER: 0001193125-05-144198 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20050719 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050719 DATE AS OF CHANGE: 20050719 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMSOUTH BANCORPORATION CENTRAL INDEX KEY: 0000003133 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 630591257 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07476 FILM NUMBER: 05960541 BUSINESS ADDRESS: STREET 1: 1900 FIFTH AVENUE NORTH STREET 2: AMSOUTH CENTER CITY: BIRMINGHAM STATE: AL ZIP: 35203 BUSINESS PHONE: 2053207151 MAIL ADDRESS: STREET 1: 1900 FIFTH AVENUE STREET 2: AMSOUTH CENTER CITY: BIRMINGHAM STATE: AL ZIP: 35203 FORMER COMPANY: FORMER CONFORMED NAME: ALABAMA BANCORPORATION DATE OF NAME CHANGE: 19810527 FORMER COMPANY: FORMER CONFORMED NAME: FIRST BIRMINGHAM CORP DATE OF NAME CHANGE: 19741107 8-K 1 d8k.htm FORM 8-K Form 8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported):

July 19, 2005

 

 

AMSOUTH BANCORPORATION

(Exact name of registrant as specified in its charter)

 

 

DELAWARE   1-7476   63-0591257

(State or other jurisdiction

of incorporation)

   (Commission File Number)  

(IRS Employer

Identification No.)

 

AMSOUTH CENTER

1900 FIFTH AVENUE NORTH

BIRMINGHAM, ALABAMA 35203

(Address, including zip code, of principal executive office)

 

Registrant’s telephone number, including area code: (205) 320-7151

 

Not applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Item 2.02 Results of Operations and Financial Condition

 

On July 19, 2005 AmSouth Bancorporation issued a press release announcing its preliminary results of operations for the quarter ended June 30, 2005. A copy of the press release is attached hereto and incorporated herein as Exhibit 99.1. Supplemental financial information for the quarter ended June 30, 2005 is included as Exhibit 99.2 and may also be found on AmSouth’s website at www.amsouth.com. In accordance with general instruction B.2 of Form 8-K, this information is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934.

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

AMSOUTH BANCORPORATION
By:  

/s/ Carl L. Gorday

Name:   Carl L. Gorday
Title:   Assistant Secretary

 

Date: July 19, 2005

Exhibit Index

 

Exhibit No.
  

Exhibit

99.1   Press Release of July 19, 2005
99.2   Supplemental Financial Information
 EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

News

Release

   

AmSouth Bancorporation

Post Office Box 11007

Birmingham, Alabama 35288

  
  

 

LOGO

 

FOR IMMEDIATE RELEASE

 

Contact:    (Investment Community)    List Underwood    (205) 801-0265
     (News Media)    Rick Swagler    (205) 801-0105
     To hear a webcast of the conference call with analysts at 2 p.m. CDT, July 19, 2005, go to www.amsouth.com and click on the webcast link under “Message Center.” For supplemental financial information about the second quarter results, visit the Investor Relations Resource Center on AmSouth’s web site at www.amsouth.com/irrc.

 

AmSouth Reports Record Second Quarter 2005 Earnings

 

BIRMINGHAM, Ala., July 19, 2005 – AmSouth Bancorporation (NYSE: ASO) today reported earnings for the second quarter ended June 30, 2005, of $.52 per diluted share, compared to $.47 per diluted share reported for the second quarter of 2004. Net income for the second quarter of 2005 was a record $184.6 million versus $167.0 million for the same period in 2004, an increase of 10.6 percent.

 

This second quarter performance resulted in a return on average equity of 20.9 percent, a return on average assets of 1.47 percent, and an improved efficiency ratio of 51.4 percent.

 

“AmSouth generated solid, high quality results this quarter,” said Dowd Ritter, AmSouth’s chairman, president and chief executive officer. “We saw strong performance across the board: good loan production and deposit growth, extremely strong credit quality and disciplined expense control.”

 

Net interest income was $378.6 million in the second quarter, a 4.8 percent increase compared with the same quarter in 2004. The net interest margin in the second quarter was 3.40 percent, which is a 4 basis point decline compared with the same period in 2004. The increase in net interest income in the second quarter was driven by solid loan growth supported by continued strength in deposits, particularly in the low-cost category. Commercial loans grew 12.8 percent compared with the same quarter in 2004, and low-cost deposits increased 15.1 percent during the same period.

Noninterest revenue, which includes earnings from service charges, trust, investment management services, securities gains and other sources of fee income, was $223.2 million for the quarter. Interchange income increased 10.2 percent compared with the second quarter of 2004, and commercial credit fee income rose 25.4 percent compared with the previous year. Continued disciplined expense control resulted in noninterest expenses in the second quarter of $314.9 million, an increase of 1.0 percent compared with the previous year.

 

Net charge-offs were 0.21 percent of average net loans in the second quarter, declining 2 basis points compared with the first quarter of 2005. The ratio of loan loss reserves to total loans was 1.09 percent at June 30, 2005. The loan loss provision essentially matched net charge-offs in the quarter. Nonperforming loan coverage increased to 519 percent during the quarter.

 

Total nonperforming assets at June 30, 2005, were $90.0 million, or 0.27 percent of loans net of unearned income, foreclosed properties and repossessions, compared to $112.7 million, or 0.34 percent, in the previous quarter.

 

For supplemental financial information about the second quarter results, please refer to the Form 8-K filed by AmSouth with the Securities and Exchange Commission on July 19, 2005, or visit the Investor Relations Resource Center on AmSouth’s web site at www.amsouth.com.

 

About AmSouth

 

AmSouth is a regional bank holding company with over $50 billion in assets, more than 685 branch banking offices and more than 1,200 ATMs. AmSouth operates in Florida, Tennessee, Alabama, Mississippi, Louisiana and Georgia. AmSouth is a leader among regional banks in the Southeast in several key business segments, including consumer and commercial banking, small business banking, mortgage lending, equipment leasing, and trust and investment management services. AmSouth also offers a complete line of banking products and services at its web site, www.amsouth.com.

 

Forward Looking Statements

 

Statements in this document that are not purely historical are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995), including any statements regarding descriptions of management’s plans, objectives or goals for future operations, products or services, and forecasts of its revenues, earnings or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. A number of factors – many of which are beyond AmSouth’s control – could cause actual conditions, events or results to differ materially from those described in the forward-looking statements. Factors which could cause results to differ materially from current management expectations include, but are not limited to: the effects of previously disclosed regulatory agreements on AmSouth’s

branch expansion plans; the successful completion of the sale of AmSouth’s mutual fund advisory business; the execution of AmSouth’s strategic initiatives; legislation and regulation; general economic conditions, especially in the Southeast; the performance of the stock and bond markets; changes in interest rates, yield curves and interest rate spread relationships; prepayment speeds within the loan and investment security portfolios; deposit flows; the cost of funds; cost of federal deposit insurance premiums; demand for loan products; demand for financial services; competition, including a continued consolidation in the financial services industry; changes in the quality or composition of AmSouth’s loan and investment portfolios including capital market inefficiencies that may affect the marketability and valuation of available-for-sale securities; changes in consumer spending and saving habits; technological changes; adverse changes in the financial performance and/or condition of AmSouth’s borrowers which could impact the repayment of such borrowers’ loans; changes in accounting and tax principles, policies or guidelines and in tax laws; other economic, competitive, governmental and regulatory factors affecting AmSouth’s operations, products, services and prices; the effects of weather and natural disasters, such as hurricanes; unexpected judicial actions and developments; results of investigations, examinations, and reviews of regulatory and law enforcement authorities; the outcome of litigation, which is inherently uncertain and depends on the findings of judges and juries; the impact on AmSouth’s businesses, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts; and AmSouth’s success at managing the risks involved in the foregoing. Forward-looking statements speak only as of the date they are made. AmSouth does not undertake a duty to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Unaudited

AmSouth Bancorporation

SUMMARY FINANCIAL INFORMATION

($ in thousands, except per share data)

 

EARNINGS SUMMARY

 

     Three Months Ended
     Percent
Change
Versus Prior
Year
     YTD
     Percent
Change
Versus Prior
Year
  
   2005
     2004
       2005 
     2004
    
     June 30
     March 31
     December 31
     September 30
     June 30
       June 30
     June 30
    

Net interest income

    $ 378,643     $ 379,748     $ 379,212     $ 375,906     $ 361,410     4.8 %   $ 758,391     $ 720,907     5.2 %

Provision for loan losses

      17,700       20,600       44,250       28,800       26,600     (33.5 )%     38,300       54,700     (30.0 )%
    
 
 
 
 
       
 
     

Net interest income after provision

      360,943       359,148       334,962       347,106       334,810     7.8 %     720,091       666,207     8.1 %

Noninterest revenues

      223,151       215,436       380,289       213,171       218,252     2.2 %     438,587       438,682     (0.0 )%

Noninterest expenses

      314,942       319,517       460,416       362,478       311,770     1.0 %     634,459       634,044     0.1 %
    
 
 
 
 
       
 
     

Income before income taxes

      269,152       255,067       254,835       197,799       241,292     11.5 %     524,219       470,845     11.3 %

Income taxes

      84,553       76,422       77,978       78,220       74,329     13.8 %     160,975       143,783     12.0 %
    
 
 
 
 
       
 
     

Net income

    $ 184,599     $ 178,645     $ 176,857     $ 119,579     $ 166,963     10.6 %   $ 363,244     $ 327,062     11.1 %
    
 
 
 
 
       
 
     

Earnings per common share - basic (a)

    $ 0.52     $ 0.50     $ 0.50     $ 0.34     $ 0.47     10.6 %   $ 1.03     $ 0.93     10.8 %

Earnings per common share - diluted (a)

      0.52       0.50       0.49       0.33       0.47     10.6 %     1.01       0.92     9.8 %

Cash dividends declared per common share

      0.25       0.25       0.25       0.24       0.24     4.2 %     0.50       0.48     4.2 %

Average common shares outstanding - basic

      352,054       354,299       355,072       352,838       351,602             353,170       351,399        

Average common shares outstanding - diluted

      357,026       358,812       360,286       358,272       356,314             357,914       356,611        

End of period common shares outstanding

      352,349       353,051       356,310       354,635       353,414             352,349       353,414        

 

KEY PERFORMANCE RATIOS

 

                               
     Three Months Ended
           YTD
        
     2005
     2004
           2005
    2004
       
     June 30
     March 31
     December 31
     September 30
     June 30
           June 30
     June 30
    

Average shareholders’ equity to average total assets

      7.03 %     7.04 %     7.05 %     6.87 %     6.92 %           7.03 %     7.01 %      

End of period shareholders’ equity to end of period total assets

      7.20       6.98       7.20       6.94       6.82             7.20       6.82        

Return on average assets (annualized) (a)

      1.47       1.44       1.42       0.98       1.41             1.46       1.40        

Return on average shareholders’ equity (annualized) (a)

      20.92       20.48       20.15       14.20       20.31             20.70       20.04        

Net interest margin - taxable equivalent

      3.40       3.45       3.43       3.44       3.44             3.42       3.50        

Efficiency ratio (a)

      51.41       52.72       59.77       60.44       52.83             52.06       53.70        

Loans net of unearned income to total deposits

      94.96       94.82       95.82       101.83       97.55             94.96       97.55        

Book value per common share

    $ 10.33     $ 9.89     $ 10.02     $ 9.73     $ 9.32           $ 10.33     $ 9.32        

Tangible book value per common share

      9.48       9.04       9.17       8.88       8.46             9.48       8.46        
(a) Ratios and earnings per share as adjusted for the third quarter 2004 settlement agreement and related professional fees are provided in the following table. These expenses represent matters which management believes are not indicative of AmSouth’s legal and regulatory affairs arising in the normal course of business.

 

     2004
  
     Three Months
Ended
September 30
  

Earnings per common share - basic, GAAP basis

    0.34  

Adjustment for settlement agreement and related professional fees

    0.15  
    

Earnings per common share - basic, as adjusted

    0.49  

Earnings per common share - diluted, GAAP basis

    0.33  

Adjustment for settlement agreement and related professional fees

    0.15  
    

Earnings per common share - diluted, as adjusted

    0.48  

Return on average assets (annualized), GAAP basis

    0.98 %

Adjustment for settlement agreement and related professional fees

    0.42 %
    

Return on average assets (annualized), as adjusted

    1.40 %

Return on average shareholders’ equity (annualized), GAAP basis

    14.20 %

Adjustment for settlement agreement and related professional fees

    6.23 %
    

Return on average shareholders’ equity (annualized), as adjusted

    20.43 %

Efficiency ratio, GAAP basis

    60.44 %

Adjustment for settlement agreement and related professional fees

    (9.00 )%
    

Efficiency ratio, as adjusted

    51.44 %

 

 

Unaudited

AmSouth Bancorporation

SUMMARY FINANCIAL INFORMATION

($ in thousands)

 

BALANCE SHEET INFORMATION

AVERAGE BALANCES

 

     Three Months Ended
   

Percent
Change
Versus Prior

Year

     YTD
   

Percent
Change

Versus Prior

Year

  
     2005
    2004
      2005
    2004
   
     June 30
    March 31
    December 31
    September 30
    June 30
      June 30
    June 30
   

Loans net of unearned income

    $ 33,361,522    $ 33,208,549    $ 32,525,563    $ 32,079,701    $ 30,633,629    8.9 %   $ 33,285,458    $ 30,169,686    10.3 %

Total investment securities *

      12,374,769      12,530,581      12,413,850      12,374,084      12,488,887    (0.9 )%     12,452,245      12,134,183    2.6 %

Interest-earning assets *

      46,007,898      45,928,699      45,224,572      44,684,992      43,500,751    5.8 %     45,968,517      42,635,928    7.8 %

Total assets

      50,341,297      50,296,110      49,535,521      48,786,314      47,742,291    5.4 %     50,318,828      46,847,692    7.4 %

Noninterest-bearing deposits

      7,454,032      7,225,621      6,978,442      6,643,642      6,516,977    14.4 %     7,340,457      6,310,096    16.3 %

Interest-bearing deposits**

      27,403,908      27,486,980      26,344,499      25,735,595      25,337,923    8.2 %     27,445,215      24,859,579    10.4 %

Total deposits**

      34,857,940      34,712,601      33,322,941      32,379,237      31,854,900    9.4 %     34,785,672      31,169,675    11.6 %

Shareholders’ equity

      3,540,078      3,538,378      3,491,181      3,350,323      3,305,636    7.1 %     3,539,233      3,281,997    7.8 %
* Excludes adjustment for market valuation on available-for-sale securities and certain noninterest-earning marketable equity securities.
** Statement 133 valuation adjustments related to time deposits and other interest-bearing liabilities are included in other liabilities.

 

BALANCE SHEET INFORMATION

ENDING BALANCES

 

                             

Percent
Change

Versus Prior
Year

  
     2005
    2004
   
     June 30
    March 31
    December 31
    September 30
    June 30
   

Loans net of unearned income

    $ 33,533,382    $ 33,025,437    $ 32,801,337    $ 32,502,221    $ 31,351,497    7.0 %

Total investment securities

      12,245,731      12,571,502      12,510,675      12,584,985      12,590,729    (2.7 )%

Interest-earning assets

      46,191,133      45,815,651      45,453,317      45,392,357      44,314,099    4.2 %

Total assets

      50,546,831      50,011,458      49,548,371      49,687,862      48,295,813    4.7 %

Noninterest-bearing deposits

      7,687,525      7,500,430      7,182,806      6,798,077      6,636,325    15.8 %

Interest-bearing deposits

      27,626,183      27,328,090      27,049,973      25,121,339      25,502,919    8.3 %

Total deposits

      35,313,708      34,828,520      34,232,779      31,919,416      32,139,244    9.9 %

Shareholders’ equity

      3,638,225      3,491,722      3,568,841      3,450,558      3,295,478    10.4 %

 

 

Unaudited

AmSouth Bancorporation

SUMMARY FINANCIAL INFORMATION

($ in thousands)

 

NONPERFORMING ASSETS

 

     2005
     2004
  
     June 30
     March 31
     December 31
     September 30
     June 30
  

Nonaccrual loans*

    $ 70,421     $ 87,255     $ 88,488     $ 92,958     $ 102,670  

Foreclosed properties

      17,791       23,258       19,609       23,043       29,586  

Repossessions

      1,755       2,208       2,498       3,231       3,295  
    
 
 
 
 

Total nonperforming assets*

    $ 89,967     $ 112,721     $ 110,595     $ 119,232     $ 135,551  
    
 
 
 
 

Nonperforming assets to loans net of unearned income, foreclosed properties and repossessions

      0.27 %     0.34 %     0.34 %     0.37 %     0.43 %

Accruing loans 90 days past due

    $ 49,185     $ 50,718     $ 51,117     $ 63,727     $ 52,972  
    
 
 
 
 
* Exclusive of accruing loans 90 days past due

 

ALLOWANCE FOR LOAN LOSSES

 

     2005
     2004
  
     2nd Quarter
     1st Quarter
     4th Quarter
     3rd Quarter
     2nd Quarter
  

Balance at beginning of period

    $ 366,836     $ 366,774     $ 381,255     $ 382,482     $ 382,450  

Loans charged off

      (27,170 )     (29,679 )     (44,277 )     (39,799 )     (38,202 )

Recoveries of loans previously charged off

      9,528       10,598       11,146       11,062       11,634  
    
 
 
 
 

Net Charge-offs

      (17,642 )     (19,081 )     (33,131 )     (28,737 )     (26,568 )

Addition to allowance charged to expense

      17,700       20,600       44,250       28,800       26,600  

Reduction of allowance related to sold loans

      (1,268 )     (1,457 )     (25,600 )     (1,290 )     —    
    
 
 
 
 

Balance at end of period

    $ 365,626     $ 366,836     $ 366,774     $ 381,255     $ 382,482  
    
 
 
 
 

Allowance for loan losses to loans net of unearned income

      1.09 %     1.11 %     1.12 %     1.17 %     1.22 %

Net charge-offs to average loans net of unearned income *

      0.21 %     0.23 %     0.41 %     0.36 %     0.35 %

Allowance for loan losses to nonperforming loans**

      519.20 %     420.42 %     414.49 %     410.14 %     372.54 %

Allowance for loan losses to nonperforming assets**

      406.40 %     325.44 %     331.64 %     319.76 %     282.17 %
* Annualized
** Exclusive of accruing loans 90 days past due

Unaudited

AmSouth Bancorporation

RECONCILIATION OF GAAP AMOUNTS TO ADJUSTED AMOUNTS

($ in thousands, except per share data)

 

    

Three Months Ended

September 30, 2004

    

Income Before

Income Taxes

   

Net

Income

   

Earnings

per common

share

   

Earnings

per common

share -diluted

           

Results as reported on a GAAP basis

    $ 197,799    $ 119,579    $ 0.34    $ 0.33

Costs incurred under settlement agreement and related professional fees*

      53,972      52,443      0.15      0.15
    
  
  
  

Results as adjusted

    $ 251,771    $ 172,022    $ 0.49    $ 0.48
* These expenses represent matters which management believes are not indicative of AmSouth’s legal and regulatory affairs arising in the normal course of business.
EX-99.2 3 dex992.htm SUPPLEMENTAL FINANCIAL INFORMATION Supplemental Financial Information

Exhibit 99.2

 

Unaudited

AmSouth Bancorporation

CONSOLIDATED QUARTERLY STATEMENTS OF EARNINGS

($ in thousands, except per share data)

 

    

2005

   

2004

     June 30
    March 31
    December 31
    September 30
    June 30

INTEREST INCOME

                                   

Loans

    $ 454,169    $ 431,375    $ 414,830    $ 399,030    $ 376,602

Available-for-sale securities

      74,073      75,791      76,518      81,178      80,577

Held-to-maturity securities

      71,082      72,096      69,950      67,030      63,934

Trading securities

      218      159      96      39      25

Loans held for sale

      2,614      1,498      4,517      2,863      3,270

Other interest-earning assets

      356      255      197      133      236
    
  
  
  
  

Total interest income

      602,512      581,174      566,108      550,273      524,644
    
  
  
  
  

INTEREST EXPENSE

                                   

Interest-bearing demand

      20,356      16,345      12,369      10,237      8,640

Money market and savings deposits

      36,956      29,368      17,376      10,599      9,688

Time deposits

      68,855      65,279      63,827      59,636      57,712

Foreign deposits

      6,697      6,803      6,063      4,361      3,598

Federal funds purchased and securities sold under agreements to repurchase

      17,507      16,354      15,246      11,707      8,185

Other borrowed funds

      2,129      1,928      3,621      2,555      1,905

Long-term Federal Home Loan Bank advances

      38,633      40,199      52,032      61,016      60,475

Other long-term debt

      32,736      25,150      16,362      14,256      13,031
    
  
  
  
  

Total interest expense

      223,869      201,426      186,896      174,367      163,234
    
  
  
  
  

NET INTEREST INCOME

      378,643      379,748      379,212      375,906      361,410

Provision for loan losses

      17,700      20,600      44,250      28,800      26,600
    
  
  
  
  

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

      360,943      359,148      334,962      347,106      334,810
    
  
  
  
  

NONINTEREST REVENUES

                                   

Service charges on deposit accounts

      91,485      85,034      94,556      96,508      94,377

Trust income

      30,010      30,353      30,571      28,587      29,935

Consumer investment services income

      18,875      20,032      17,539      17,565      21,930

Interchange income

      22,731      21,178      21,066      19,649      20,628

Commercial credit fee income

      13,901      10,940      10,605      10,369      11,088

Bank owned life insurance policies

      10,582      10,511      13,760      11,377      11,610

Mortgage income

      4,796      3,986      5,627      4,164      3,889

Portfolio income

      3,150      1,282      5,381      5,920      8,145

Gain on sale of credit card loans

      -0-      -0-      166,103      -0-      -0-

Other noninterest revenues

      27,621      32,120      15,081      19,032      16,650
    
  
  
  
  

Total noninterest revenues

      223,151      215,436      380,289      213,171      218,252
    
  
  
  
  

NONINTEREST EXPENSES

                                   

Salaries and employee benefits

      172,955      178,655      170,640      162,517      167,511

Net occupancy expense

      38,430      36,857      37,694      37,953      36,326

Equipment expense

      32,624      31,086      31,721      31,807      30,968

Postage and office supplies

      10,080      10,693      10,556      10,680      10,997

Marketing

      7,168      9,771      8,803      8,594      9,249

Professional fees

      7,759      7,489      16,363      7,339      9,699

Communications

      6,155      6,118      5,773      5,926      6,040

Amortization of intangibles

      636      696      800      1,043      1,163

Settlement agreements and related professional fees

      -0-      -0-      -0-      53,972      -0-

FHLB prepayment cost

      -0-      -0-      129,648      -0-      -0-

Other noninterest expenses

      39,135      38,152      48,418      42,647      39,817
    
  
  
  
  

Total noninterest expenses

      314,942      319,517      460,416      362,478      311,770
    
  
  
  
  

INCOME BEFORE INCOME TAXES

      269,152      255,067      254,835      197,799      241,292

Income taxes

      84,553      76,422      77,978      78,220      74,329
    
  
  
  
  

NET INCOME

    $ 184,599    $ 178,645    $ 176,857    $ 119,579    $ 166,963
    
  
  
  
  

Average common shares outstanding - basic

      352,054      354,299      355,072      352,838      351,602

Earnings per common share - basic (a)

    $ 0.52    $ 0.50    $ 0.50    $ 0.34    $ 0.47

Average common shares outstanding - diluted

      357,026      358,812      360,286      358,272      356,314

Earnings per common share - diluted (a)

    $ 0.52    $ 0.50    $ 0.49    $ 0.33    $ 0.47
(a) Earnings per common share as adjusted for the third quarter 2004 settlement agreement and related professional fees are provided in the following table. These expenses represent matters which management believes are not indicative of AmSouth’s legal and regulatory affairs arising in the normal course of business.
    

Three Months Ended

September 30, 2004

Earnings per common share - basic, GAAP basis

    0.34

Adjustment for settlement agreement and related professional fees

    0.15
    

Earnings per common share - basic, as adjusted

    0.49
    

Earnings per common share - diluted, GAAP basis

    0.33

Adjustment for settlement agreement and related professional fees

    0.15
    

Earnings per common share - diluted, as adjusted

    0.48
    

Unaudited

AmSouth Bancorporation

QUARTERLY AVERAGE DAILY BALANCES, REVENUE & EXPENSE SUMMARY, YIELDS & RATES

(Taxable equivalent basis, $ in thousands)

 

    

Three Months Ended

June 30, 2005

    

Three Months Ended

March 31, 2005

    

Three Months Ended

December 31, 2004

    

Three Months Ended

September 30, 2004

    

Three Months Ended

June 30, 2004

  
     Average
Balance
     Revenue/
Expense
   Yield/
Rate
     Average
Balance
     Revenue/
Expense
   Yield/
Rate
     Average
Balance
     Revenue/
Expense
   Yield/
Rate
     Average
Balance
     Revenue/
Expense
   Yield/
Rate
     Average
Balance
     Revenue/
Expense
   Yield/
Rate
  

ASSETS

                                                                                                     

Interest-earning assets:

                                                                                                     

Commercial and commercial real estate

    $ 16,620,623     $ 235,211   5.68 %   $ 16,376,300     $ 218,177   5.40 %   $ 15,682,584     $ 204,003   5.18 %   $ 15,118,340     $ 189,542   4.99 %   $ 14,761,561     $ 178,896   4.87 %

Residential first mortgages

      5,561,349       67,340   4.86 %     5,260,197       64,045   4.94 %     4,913,523       60,340   4.89 %     4,565,972       55,715   4.85 %     3,863,999       49,333   5.13 %

Equity loans and lines

      7,624,399       106,004   5.58 %     7,756,678       101,105   5.29 %     7,742,633       93,520   4.81 %     7,629,780       85,078   4.44 %     7,288,969       78,254   4.32 %

Dealer indirect

      3,088,106       41,161   5.35 %     3,212,236       42,602   5.38 %     3,392,366       46,700   5.48 %     3,606,654       51,067   5.63 %     3,622,780       51,993   5.77 %

Other consumer

      467,045       10,757   9.24 %     603,138       11,757   7.91 %     794,457       16,511   8.27 %     1,158,955       23,725   8.14 %     1,096,320       24,201   8.88 %
    
 
       
 
       
 
       
 
       
 
     

Total loans net of unearned income (1)

      33,361,522       460,473   5.54 %     33,208,549       437,686   5.35 %     32,525,563       421,074   5.15 %     32,079,701       405,127   5.02 %     30,633,629       382,677   5.02 %

Available-for-sale securities, amortized cost

      6,322,703       74,597   4.73 %     6,385,445       76,355   4.85 %     6,369,885       77,107   4.82 %     6,508,524       81,785   5.00 %     6,559,420       81,249   4.98 %

Market valuation on AFS securities

      (87,157 )                 (41,821 )                 (25,440 )                 (92,985 )                 (45,289 )            
    
             
             
             
             
           

Total available-for-sale securities (2)

      6,235,546                   6,343,624                   6,344,445                   6,415,539                   6,514,131              

Held-to-maturity securities

      6,052,066       75,081   4.98 %     6,145,136       76,115   5.02 %     6,043,965       73,896   4.86 %     5,865,560       70,976   4.81 %     5,929,467       67,685   4.59 %
    
 
       
 
       
 
       
 
       
 
     

Total investment securities (3)

      12,287,612       149,678   4.85 %     12,488,760       152,470   4.93 %     12,388,410       151,003   4.84 %     12,281,099       152,761   4.91 %     12,443,598       148,934   4.80 %

Other interest-earning assets

      271,607       3,188   4.71 %     189,569       1,917   4.10 %     285,158       4,810   6.71 %     231,207       3,035   5.22 %     378,235       3,531   3.75 %
    
 
       
 
       
 
       
 
       
 
     

Total interest-earning assets (3)

      45,920,741       613,339   5.35 %     45,886,878       592,073   5.23 %     45,199,131       576,887   5.07 %     44,592,007       560,923   4.99 %     43,455,462       535,142   4.95 %

Cash and due from banks

      1,182,160                   1,165,902                   1,147,335                   1,090,246                   1,117,795              

Other assets

      3,606,771                   3,611,839                   3,559,107                   3,485,377                   3,554,548              

Allowance for loan losses

      (368,375 )                 (368,509 )                 (370,052 )                 (381,316 )                 (385,514 )            
    
             
             
             
             
           
     $ 50,341,297                 $ 50,296,110                 $ 49,535,521                 $ 48,786,314                 $ 47,742,291              
    
             
             
             
             
           

LIABILITIES AND SHAREHOLDERS’ EQUITY

                                                                                                     

Interest-bearing liabilities:

                                                                                                     

Interest-bearing demand

    $ 6,957,590       20,356   1.17 %   $ 6,979,278       16,345   0.95 %   $ 6,808,245       12,369   0.72 %   $ 6,865,461       10,237   0.59 %   $ 6,829,555       8,640   0.51 %

Money market and savings deposits

      9,974,400       36,956   1.49 %     9,512,976       29,368   1.25 %     8,306,523       17,376   0.83 %     7,875,270       10,599   0.54 %     7,847,980       9,688   0.50 %

Time deposits (4)

      9,215,524       68,855   3.00 %     9,457,697       65,279   2.80 %     9,574,231       63,827   2.65 %     9,383,477       59,636   2.53 %     9,133,052       57,712   2.54 %

Foreign deposits

      1,256,394       6,697   2.14 %     1,537,030       6,803   1.80 %     1,655,500       6,063   1.46 %     1,611,387       4,361   1.08 %     1,527,336       3,598   0.95 %

Federal funds purchased and securities sold under agreements to repurchase

      2,866,029       17,507   2.45 %     3,022,943       16,354   2.19 %     3,394,875       15,246   1.79 %     3,338,866       11,707   1.39 %     2,837,459       8,185   1.16 %

Other interest-bearing liabilities (4)

      7,441,068       73,498   3.96 %     7,355,899       67,277   3.71 %     7,682,934       72,015   3.73 %     8,165,955       77,827   3.79 %     8,163,063       75,411   3.72 %
    
 
       
 
       
 
       
 
       
 
     

Total interest-bearing liabilities

      37,711,005       223,869   2.38 %     37,865,823       201,426   2.16 %     37,422,308       186,896   1.99 %     37,240,416       174,367   1.86 %     36,338,445       163,234   1.81 %
            
 
         
 
         
 
         
 
         
 

Net interest spread (3)

                  2.97 %                 3.07 %                 3.08 %                 3.13 %                 3.14 %
                  
               
               
               
               

Noninterest-bearing demand deposits

      7,454,032                   7,225,621                   6,978,442                   6,643,642                   6,516,977              

Other liabilities (4)

      1,636,182                   1,666,288                   1,643,590                   1,551,933                   1,581,233              

Shareholders’ equity

      3,540,078                   3,538,378                   3,491,181                   3,350,323                   3,305,636              
    
             
             
             
             
           
     $ 50,341,297                 $ 50,296,110                 $ 49,535,521                 $ 48,786,314                 $ 47,742,291              
    
             
             
             
             
           

Net interest income/ margin on a taxable equivalent basis (3)

              389,470   3.40 %             390,647   3.45 %             389,991   3.43 %             386,556   3.44 %             371,908   3.44 %
                  
               
               
               
               

Taxable equivalent adjustment:(5)

                                                                                                     

Loans

              6,304                   6,311                   6,244                   6,097                   6,075      

Available-for-sale securities

              524                   564                   589                   607                   672      

Held-to-maturity securities

              3,999                   4,019                   3,946                   3,946                   3,751      

Trading securities

              -0-                   5                   -0-                   -0-                   -0-      
            
               
               
               
               
     

Total taxable equivalent adjustment

              10,827                   10,899                   10,779                   10,650                   10,498      
            
               
               
               
               
     

Net interest income

            $ 378,643                 $ 379,748                 $ 379,212                 $ 375,906                 $ 361,410      
            
               
               
               
               
     

NOTES:

 

(1) Loans net of unearned income includes nonaccrual loans for all periods presented.
(2) Available-for-sale securities excludes certain noninterest-earning, marketable equity securities.
(3) The yield calculation for total available-for-sale securities, total investment securities, total interest-earning assets, net interest spread and net interest margin excludes the market valuation adjustment on available-for-sale securities.
(4) Statement 133 valuation adjustments related to time deposits and other interest-bearing liabilities are included in other liabilities.
(5) The taxable equivalent adjustment has been computed using a federal income tax rate of 35%, adjusted for applicable state income taxes net of the related federal tax benefit.

Unaudited

AmSouth Bancorporation

CONSOLIDATED PERIOD-END BALANCE SHEETS

($ in thousands)

 

     2005
     2004
  
     June 30
     March 31
     December 31
     September 30
     June 30
  

ASSETS

                                         

Cash and due from banks

    $ 1,167,313     $ 1,110,764     $ 966,993     $ 1,073,175     $ 1,055,370  

Trading securities

      39,404       33,185       1,883       1,121       11,092  

Available-for-sale securities

      6,172,833       6,378,267       6,322,665       6,516,319       6,586,697  

Held-to-maturity securities

      6,072,898       6,193,235       6,188,010       6,068,666       6,004,032  

Loans held for sale

      323,017       150,888       103,273       240,879       261,968  

Loans net of unearned income:

                                         

Commercial and industrial

      5,961,937       5,857,272       5,740,153       5,630,612       5,515,740  

Commercial loans - secured by real estate

      2,381,944       2,251,824       2,245,052       2,248,468       2,197,646  

Commercial leases

      2,239,314       2,202,117       2,179,074       2,088,136       1,974,396  

Commercial real estate mortgages

      2,922,692       3,005,907       2,867,968       2,659,296       2,642,411  

Real estate construction

      3,364,146       3,243,707       3,008,313       2,810,551       2,568,776  

Residential first mortgages

      5,692,014       5,277,556       5,081,775       4,726,022       4,189,126  

Equity loans and lines

      7,427,904       7,596,112       7,756,745       7,702,802       7,514,199  

Dealer indirect

      3,087,815       3,120,046       3,312,120       3,493,019       3,627,608  

Revolving credit

      23,538       24,885       27,230       572,352       555,763  

Other consumer

      432,078       446,011       582,907       570,963       565,832  
    
 
 
 
 

Total loans net of unearned income

      33,533,382       33,025,437       32,801,337       32,502,221       31,351,497  

Allowance for loan losses

      (365,626 )     (366,836 )     (366,774 )     (381,255 )     (382,482 )

Other interest-earning assets

      49,599       34,639       36,149       63,151       98,813  

Premises and equipment, net

      1,087,201       1,083,333       1,060,574       1,053,923       1,020,033  

Cash surrender value - bank owned life insurance

      1,133,539       1,122,447       1,111,934       1,100,576       1,089,445  

Goodwill and other intangibles

      298,841       299,478       300,174       302,878       303,921  

Accrued interest receivable and other assets

      1,034,430       946,621       1,022,153       1,146,208       895,427  
    
 
 
 
 
     $ 50,546,831     $ 50,011,458     $ 49,548,371     $ 49,687,862     $ 48,295,813  
    
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

                                         

Deposits and interest-bearing liabilities:

                                         

Deposits:

                                         

Noninterest-bearing demand

    $ 7,687,525     $ 7,500,430     $ 7,182,806     $ 6,798,077     $ 6,636,325  

Interest-bearing demand

      6,962,855       7,071,159       7,115,545       6,817,361       6,809,885  

Money market and savings

      10,005,039       9,871,634       8,810,972       7,814,945       7,827,390  

Time

      9,062,959       9,509,574       9,476,075       9,560,652       9,262,403  

Foreign

      1,595,330       875,723       1,647,381       928,381       1,603,241  
    
 
 
 
 

Total deposits

      35,313,708       34,828,520       34,232,779       31,919,416       32,139,244  

Federal funds purchased and securities sold under agreements to repurchase

      2,842,751       2,610,403       2,291,988       2,497,632       2,145,521  

Other borrowed funds

      473,010       203,639       429,098       1,964,121       1,370,893  

Long-term Federal Home Loan Bank advances

      3,238,993       3,918,255       4,371,745       5,678,135       5,779,709  

Other long-term debt

      3,359,173       3,344,018       2,899,773       2,108,128       2,084,213  
    
 
 
 
 

Total deposits and interest-bearing liabilities

      45,227,635       44,904,835       44,225,383       44,167,432       43,519,580  

Accrued expenses and other liabilities

      1,680,971       1,614,901       1,754,147       2,069,872       1,480,755  
    
 
 
 
 

Total liabilities

      46,908,606       46,519,736       45,979,530       46,237,304       45,000,335  
    
 
 
 
 

Shareholders’ equity:

                                         

Preferred stock

      -0-       -0-       -0-       -0-       -0-  

Common stock

      416,732       416,736       416,748       416,753       416,768  

Additional paid-in capital

      731,383       729,039       726,411       714,278       714,134  

Retained earnings

      3,672,524       3,580,202       3,492,873       3,406,363       3,372,672  

Treasury stock

      (1,093,405 )     (1,073,672 )     (986,510 )     (1,019,471 )     (1,043,783 )

Deferred compensation on restricted stock

      (15,208 )     (16,230 )     (12,947 )     (13,697 )     (14,496 )

Accumulated other comprehensive loss

      (73,801 )     (144,353 )     (67,734 )     (53,668 )     (149,817 )
    
 
 
 
 

Total shareholders’ equity

      3,638,225       3,491,722       3,568,841       3,450,558       3,295,478  
    
 
 
 
 
     $ 50,546,831     $ 50,011,458     $ 49,548,371     $ 49,687,862     $ 48,295,813  
    
 
 
 
 

Unaudited

AmSouth Bancorporation

CREDIT QUALITY STATISTICS

($ in thousands)

 

     Three Months Ended
  
     2005
     2004
  
     June 30
     March 31
     December 31
     September 30
     June 30
  

NET CHARGE-OFFS/(RECOVERIES)

                                         

Commercial:

                                         

Commercial & industrial

    $ 8,725     $ 5,420     $ 11,268     $ 8,144     $ 6,889  

Commercial loans - secured by real estate

      239       698       275       358       666  

Commercial leases

      -0-       182       1,815       -0-       (380 )
    
 
 
 
 

Total commercial

      8,964       6,300       13,358       8,502       7,175  

Commercial real estate:

                                         

Commercial real estate mortgages

      39       691       (3 )     37       581  

Real estate construction

      (213 )     1,534       5       157       1,370  
    
 
 
 
 

Total commercial real estate

      (174 )     2,225       2       194       1,951  

Consumer:

                                         

Residential first mortgages

      424       1,298       912       529       660  

Equity loans and lines

      3,645       3,806       6,088       4,900       5,646  

Dealer indirect

      1,141       3,303       4,995       5,438       3,696  

Revolving credit

      222       742       3,525       5,003       4,841  

Other consumer

      3,420       1,407       4,251       4,171       2,599  
    
 
 
 
 

Total consumer

      8,852       10,556       19,771       20,041       17,442  
    
 
 
 
 
     $ 17,642     $ 19,081     $ 33,131     $ 28,737     $ 26,568  
    
 
 
 
 

NET CHARGE-OFFS AS A PERCENT OF

AVERAGE LOANS (Annualized)

                                         

Commercial:

                                         

Commercial & industrial

      0.59 %     0.38 %     0.79 %     0.58 %     0.50 %

Commercial loans - secured by real estate

      0.04       0.13       0.05       0.06       0.13  

Commercial leases

      0.00       0.03       0.34       0.00       (0.08 )
    
 
 
 
 

Total commercial

      0.34       0.25       0.53       0.34       0.30  

Commercial real estate:

                                         

Commercial real estate mortgages

      0.01       0.10       0.00       0.01       0.09  

Real estate construction

      (0.03 )     0.20       0.00       0.02       0.22  
    
 
 
 
 

Total commercial real estate

      (0.01 )     0.15       0.00       0.01       0.15  

Consumer:

                                         

Residential first mortgages

      0.03       0.10       0.07       0.05       0.07  

Equity loans and lines

      0.19       0.20       0.31       0.26       0.31  

Dealer indirect

      0.15       0.42       0.59       0.60       0.41  

Revolving credit

      3.69       11.70       6.60       3.55       3.59  

Other consumer

      3.10       0.99       2.91       2.78       1.89  
    
 
 
 
 

Total consumer

      0.21       0.25       0.47       0.47       0.44  
    
 
 
 
 
       0.21 %     0.23 %     0.41 %     0.36 %     0.35 %
    
 
 
 
 

Unaudited

AmSouth Bancorporation

CREDIT QUALITY STATISTICS (continued)

($ in thousands)

 

     2005
    2004
     June 30
    March 31
    December 31
    September 30
    June 30

NONPERFORMING LOANS*

                                   

Commercial:

                                   

Commercial & industrial

    $ 35,299    $ 37,136    $ 37,581    $ 43,021    $ 45,275

Commercial loans - secured by real estate

      15,395      21,699      18,617      17,560      21,356

Commercial leases

      1,656      2,407      2,048      2,242      2,899
    
  
  
  
  

Total commercial

      52,350      61,242      58,246      62,823      69,530

Commercial real estate:

                                   

Commercial real estate mortgages

      2,738      2,247      3,074      2,341      3,670

Real estate construction

      1,837      2,466      1,286      1,551      2,912
    
  
  
  
  

Total commercial real estate

      4,575      4,713      4,360      3,892      6,582

Consumer:

                                   

Residential first mortgages

      11,649      19,147      21,899      19,817      18,393

Equity loans and lines

      1,588      1,854      3,946      6,323      8,057

Dealer indirect

      17      7      13      21      23

Other consumer

      242      292      24      82      85
    
  
  
  
  

Total consumer

      13,496      21,300      25,882      26,243      26,558
    
  
  
  
  
     $ 70,421    $ 87,255    $ 88,488    $ 92,958    $ 102,670
    
  
  
  
  

*  Exclusive of accruing loans 90 days past due.

     2005
    2004
     June 30
    March 31
    December 31
    September 30
    June 30

ACCRUING LOANS 90 DAYS PAST DUE

                                   

Commercial:

                                   

Commercial & industrial

    $ 6,502    $ 4,565    $ 6,166    $ 9,196    $ 6,873

Commercial loans - secured by real estate

      1,944      952      1,518      2,108      722

Commercial leases

      -0-      -0-      -0-      -0-      -0-
    
  
  
  
  

Total commercial

      8,446      5,517      7,684      11,304      7,595

Commercial real estate:

                                   

Commercial real estate mortgages

      867      8      259      238      202

Real estate construction

      -0-      8,274      145      -0-      -0-
    
  
  
  
  

Total commercial real estate

      867      8,282      404      238      202

Consumer:

                                   

Residential first mortgages

      12,164      7,345      9,401      11,127      9,217

Equity loans and lines

      24,311      26,063      27,965      28,315      25,249

Dealer indirect

      2,450      2,258      4,089      4,467      2,979

Revolving credit

      419      599      518      7,085      6,823

Other consumer

      528      654      1,056      1,191      907
    
  
  
  
  

Total consumer

      39,872      36,919      43,029      52,185      45,175
    
  
  
  
  
     $ 49,185    $ 50,718    $ 51,117    $ 63,727    $ 52,972
    
  
  
  
  

Unaudited

AmSouth Bancorporation

OTHER INFORMATION

     2005
     2004
  
     June 30*
     March 31
     December 31
     September 30
     June 30
  

REGULATORY CAPITAL RATIOS

                               

Tier 1 capital ratio

                               

AmSouth

    8.09 %   8.05 %   8.05 %   7.76 %   7.79 %

AmSouth Bank

    8.76     8.71     8.49     8.35     8.48  

Total capital ratio

                               

AmSouth

    11.52 %   11.54 %   10.93 %   10.79 %   10.89 %

AmSouth Bank

    11.95     11.97     11.04     10.95     11.14  

Leverage ratio

                               

AmSouth

    6.76 %   6.61 %   6.73 %   6.56 %   6.60 %

AmSouth Bank

    7.33     7.16     7.10     7.06     7.19  
* Second quarter 2005 regulatory capital ratios based on preliminary data.
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