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<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
October 14, 1994
(Date of earliest event reported)
AMSOUTH BANCORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE
(State of Incorporation)
1-7476 63-0591257
(Commission File Number) (I.R.S. Employer
Identification Number)
1400 AmSouth - Sonat Tower Birmingham, Alabama 35203
(Address of executive offices)
(205) 320-7151
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events
------------
AmSouth Bancorporation ("AmSouth") is filing this Current Report on
Form 8-K to present pro forma financial statements that give effect to the
pending mergers and acquisitions as of June 30, 1994, described below.
Pending Mergers and Acquisitions as of June 30, 1994
. On March 9, 1994, AmSouth signed an agreement to acquire The Bank of Tampa,
which is located in Tampa, Florida, and its parent company, The Tampa Banking
Company ("Tampa"). At June 30, 1994, Tampa had total consolidated assets of
approximately $218.9 million and total consolidated deposits of approximately
$203.7 million. Under the terms of the agreement, AmSouth will issue 1.5592
shares of AmSouth Common Stock for each of the outstanding shares of Tampa
common stock, subject to adjustment. At June 30, 1994, Tampa had
approximately 628,000 shares of common stock outstanding. The acquisition
will be accounted for as a pooling of interests under GAAP.
. On March 31, 1994, AmSouth signed an agreement to acquire Community Federal
Savings Bank ("Community"), headquartered in Fort Oglethorpe, Georgia. At
June 30, 1994, Community had total assets of approximately $102.8 million and
total deposits of approximately $88.4 million. Under the terms of the
agreement, AmSouth will pay $65.50 for each of the outstanding shares of
Community common stock for a total purchase price of approximately $17.2
million. The acquisition will be accounted for as a purchase under GAAP.
<PAGE>
Item 7. Financial Statements and Exhibits
---------------------------------
Listed below are the financial statements and pro forma financial
information filed as part of this report.
(A) Financial Statements of Business Acquired:
None required.
(B) Pro Forma Financial Information:
The following unaudited pro forma combined condensed financial
statements are attached.
Unaudited Pro Forma Combined Condensed Statement of Condition as
of June 30, 1994
Unaudited Pro Forma Combined Condensed Statement of Earnings for the
six months ended June 30, 1994 and the year ended December 31, 1993.
(C) Exhibits:
None
<PAGE>
UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma combined condensed statement of
condition as of June 30, 1994, gives effect to (i) the pending acquisition of
Tampa by AmSouth, assuming the acquisition is accounted for as a pooling of
interests and (ii) the pending acquisition of Community, assuming the
acquisition is treated as a purchase for accounting purposes, as if all such
transactions had been consummated on June 30, 1994.
The following unaudited pro forma combined condensed statement of
earnings for the six months ended June 30, 1994, gives effect to (i) the
pending acquisition of Tampa, assuming the acquisition is accounted for as a
pooling of interests and (ii) the pending acquisition of Community and the June
23, 1994, acquisition of Fortune Bancorp, Inc. ("Fortune"), assuming that the
acquisitions are treated as purchases for accounting purposes, as if all such
transactions had been consummated on January 1, 1993.
The following unaudited pro forma combined condensed statement of
earnings for the twelve months ended December 31, 1993, gives effect to (i) the
then pending acquisitions of Orange Banking Corporation ("OBC"), FloridaBank,
a Federal Savings Bank ("FloridaBank"), Parkway Bancorp, Inc. ("Parkway"),
First Federal Savings Bank, Calhoun, Georgia ("Calhoun"), Citizens National
Corporation ("Citizens"), and Tampa, assuming the acquisitions are accounted
for as poolings of interests; and (ii) the then pending acquisitions of Fortune
and Community, and the December 9, 1993, acquisition of Mid-State Federal
Savings Bank ("Mid-State Federal"), assuming that the acquisitions are treated
as purchases for accounting purposes, as if all such transactions had been
consummated on January 1, 1993.
The unaudited pro forma combined condensed financial statements are
presented for information purposes only and are not necessarily indicative of
the combined financial position or results of operations that would actually
have occurred if the transactions had been consummated in the past or which may
be obtained in the future.
<PAGE>
AMSOUTH BANCORPORATION
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF CONDITION
JUNE 30, 1994
(In Thousands)
<TABLE>
<CAPTION>
ADJUSTED
AMSOUTH ADJUSTMENTS AMSOUTH TAMPA ADJUSTMENTS
------------ ----------- ------------ ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and Due From Banks $ 860,654 $ (31,290)(A) $ 829,364 $ 11,417 $ 0
Federal Funds Sold and Securities
Purchased Under Agreements to Resell 36,504 0 36,504 16,700 0
Trading Securities 13,202 0 13,202 0 0
Available-for-Sale Securities 1,030,512 0 1,030,512 52,177 0
Held-to-Maturity Securities 3,478,115 0 3,478,115 8,625 0
Mortgage Loans Held for Sale 181,506 0 181,506 0 0
Loans, Net of Unearned Income 10,580,364 0 10,580,364 123,223 0
Less Allowance for Loan Losses 164,746 0 164,746 2,440 0
------------ ----------- ------------ ---------- ----------
Net Loans 10,415,618 0 10,415,618 120,783 0
Premises and Equipment, Net 287,742 0 287,742 4,559 0
Other Real Estate Owned 35,266 0 35,266 345 0
Intangible Assets 296,545 0 296,545 0 0
Mortgage Servicing Rights 66,438 0 66,438 0 0
Other Assets 635,303 0 635,303 4,307 0
------------ ----------- ------------ ---------- ----------
$ 17,337,405 $ (31,290) $ 17,306,115 $ 218,913 $ 0
============ =========== ============ ========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits and Interest-Bearing Liabilities:
Deposits $ 12,218,955 $ 0 $ 12,218,955 $ 203,671 $ 0
Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase 2,010,966 0 2,010,966 0 0
Other Borrowed Funds 964,950 0 964,950 1,980 0
Long-Term Debt 521,677 0 521,677 0 0
------------ ----------- ------------ ---------- ----------
Total Deposits and Interest-
Bearing Liabilities 15,716,548 0 15,716,548 205,651 0
Other Liabilities 293,521 0 293,521 533 0
------------ ----------- ------------ ---------- ----------
Total Liabilities 16,010,069 0 16,010,069 206,184 0
Shareholders' Equity:
Preferred Stock 0 0 0 0 0
Common Stock 60,424 (1,000)(A) 59,424 63 (63)(B)
979 (B)
Capital Surplus 605,829 (30,290)(A) 575,539 7,353 (916)(B)
Retained Earnings 699,898 0 699,898 6,176
Cost of Common Stock in Treasury (24,173) 0 (24,173) 0 0
Deferred Compensation on Restricted Stock (4,087) 0 (4,087) 0 0
Unrealized Losses on Available-for-Sale Securities (10,555) 0 (10,555) (863) 0
------------ ----------- ------------ ---------- ----------
Total Shareholders' Equity 1,327,336 (31,290) 1,296,046 12,729 0
------------ ----------- ------------ ---------- ----------
$ 17,337,405 $ (31,290) $ 17,306,115 $ 218,913 $ 0
============ =========== ============ ========== ==========
<CAPTION>
AMSOUTH &
TAMPA TOTAL
PRO FORMA PRO FORMA
COMBINED COMMUNITY ADJUSTMENTS COMBINED
<S> <C> <C> <C> <C>
ASSETS
Cash and Due From Banks $ 840,781 $ 5,276 $ 0 $ 846,057
Federal Funds Sold and Securities
Purchased Under Agreements to Resell 53,204 0 0 53,204
Trading Securities 13,202 0 0 13,202
Available-for-Sale Securities 1,082,689 0 (17,069)(E) 1,065,620
Held-to-Maturity Securities 3,486,740 909 11 (D) 3,487,660
Mortgage Loans Held for Sale 181,506 0 0 181,506
Loans, Net of Unearned Income 10,703,587 93,957 456 (C) 10,798,817
817 (D)
Less Allowance for Loan Losses 167,186 731 0 167,917
------------ ----------- ----------- ------------
Net Loans 10,536,401 93,226 1,273 10,630,900
Premises and Equipment, Net 292,301 1,599 0 293,900
Other Real Estate Owned 35,611 0 0 35,611
Intangible Assets 296,545 0 7,540 (E) 304,085
Mortgage Servicing Rights 66,438 0 100 (D) 66,538
Other Assets 639,610 1,764 (56)(C) 641,318
------------ ----------- ----------- ------------
$ 17,525,028 $ 102,774 $ (8,201) $ 17,619,601
============ =========== =========== ============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits and Interest-Bearing Liabilities:
Deposits $ 12,422,626 $ 88,360 $ 754 (D) $ 12,511,740
Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase 2,010,966 0 0 2,010,966
Other Borrowed Funds 966,930 3,000 0 969,930
Long-Term Debt 521,677 0 0 521,677
------------ ----------- ----------- ------------
Total Deposits and Interest-
Bearing Liabilities 15,922,199 91,360 754 16,014,313
Other Liabilities 294,054 1,189 441 (C) 296,513
152 (C)
887 (D)
(210)(D)
------------ ----------- ----------- ------------
Total Liabilities 16,216,253 92,549 2,024 16,310,826
Shareholders' Equity:
Preferred Stock 0 0 0 0
Common Stock 60,403 249 (249)(E) 60,403
Capital Surplus 581,976 2,039 (2,039)(E) 581,976
Retained Earnings 706,074 7,937 (193)(C) 706,074
(503)(D)
(7,241)(E)
Cost of Common Stock in Treasury (24,173) 0 0 (24,173)
Deferred Compensation on Restricted Stock (4,087) 0 0 (4,087)
Unrealized Losses on Available-for-Sale Securities (11,418) 0 0 (11,418)
------------ ----------- ----------- ------------
Total Shareholders' Equity 1,308,775 10,225 (10,225) 1,308,775
------------ ----------- ----------- ------------
$ 17,525,028 $ 102,774 $ (8,201) $ 17,619,601
============ =========== =========== ============
</TABLE>
See Notes to Unaudited Pro Forma Combined Condensed Statement of Condition.
<PAGE>
AMSOUTH BANCORPORATION
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF CONDITION
JUNE 30, 1994
(Dollars In Thousands Except Share Amounts)
(A) Subsequent to June 30, 1994, AmSouth will purchase and retire 1,000,000
shares of its common stock to replenish shares issued in the acquisition of
Fortune.
(B) Upon consummation of the merger with Tampa, each share of Tampa common
stock will be converted into 1.5592 shares of AmSouth Common Stock. The
Tampa transaction will be accounted for as a pooling of interests;
therefore, the effect upon shareholders' equity will be to increase AmSouth
shareholders' equity by the total equity of Tampa. The unaudited pro forma
financial statements have been prepared assuming that AmSouth will issue in
the aggregate approximately 979,000 (1.5592 X 627,907) shares of AmSouth
Common Stock to the shareholders of Tampa. A reclassification from capital
surplus to common stock results from the issuance of the shares.
(C) The following pro forma adjustments are necessary to record the
transactions for Community:
<TABLE>
<S> <C>
(1) To recapture a tax bad debt reserve as a result of the reversal of a
special deduction for bad debts allowed for certain savings and loan
associations that is not available to commercial banks (441)
(2) To write off miscellaneous assets (56)
(3) To eliminate deferred loan fees-FASB 91 456
(4) To establish deferred taxes on applicable items above assuming a 38% tax rate (152)
--------
$ (193)
========
</TABLE>
(D) These amounts reflect purchase accounting adjustments of the book value of
the assets and liabilities of Community estimated at fair values. Current
market values of investment securities were determined using publicly quoted
prices. Certain long-term fixed rate loans and deposits were valued based on
prevailing market interest rates. The final purchase accounting adjustments
may vary to the extent that the market values of the assets and liabilities
change.
<TABLE>
<CAPTION>
Community
--------------
<S> <C>
Cost of acquisition:
Cash consideration $ 17,069
Estimated acquisition costs 887
--------------
$ 17,956
==============
Net assets acquired:
Shareholders' equity $ 10,225
Adjustments from Note B (193)
Fair value adjustments:
Loans 817
Held-to-maturity securities 11
Purchased mortgage servicing rights 100
Deposits (754)
-------------
174
Deferred taxes at 38% on applicable items 210
Cost in excess of fair value of net assets acquired 7,540
--------------
$ 17,956
==============
</TABLE>
The fair market values of the fixed assets and the Federal Home Loan Bank
advances are approximately equal to the book value; therefore, no fair value
adjustments are necessary.
Deferred taxes are established on the net difference between the fair value
adjustments and the deductible portion of the estimated acquisition costs.
(E) AmSouth is purchasing all of the outstanding shares of Community for a
total cash purchase price of $17,069. There is no impact on AmSouth's
shareholders' equity, with all of the Community shareholders' equity being
eliminated and no new shares of AmSouth being issued.
<PAGE>
AMSOUTH BANCORPORATION
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF EARNINGS
SIX MONTHS ENDED JUNE 30, 1994 AND TWELVE MONTHS ENDED DECEMBER 31, 1993
(In Thousands Except Per Share Data)
SIX MONTHS ENDED JUNE 30, 1994
<TABLE>
<CAPTION>
AMSOUTH &
FORTUNE
ADJUST- PRO FORMA
AMSOUTH FORTUNE (A) MENTS COMBINED TAMPA
--------- ------------ --------- ---------- --------
<S> <C> <C> <C> <C> <C>
Revenue from Earning Assets $ 457,351 $ 75,714 $ 4,814 (E) $ 537,879 $ 6,869
Interest Expense 186,727 41,386 5,604 (D) 233,645 1,881
(72)(E)
--------- ------------ --------- ---------- --------
Gross Interest Margin 270,624 34,328 (718) 304,234 4,988
Provision for Loan Losses 5,181 13,873 0 19,054 400
--------- ------------ --------- ---------- --------
Net Interest Margin 265,443 20,455 (718) 285,180 4,588
Noninterest Revenues 95,772 5,553 0 101,325 903
Noninterest Expenses 236,961 36,114 5,345 (E) 278,420 4,201
--------- ------------ --------- ---------- --------
Income (Loss) Before Applicable Taxes 124,254 (10,106) (6,063) 108,085 1,290
Applicable Income Taxes 42,380 (2,856) (2,130)(D) 38,805 469
1,411 (E)
--------- ------------ --------- ---------- --------
Net Income $ 81,874 $ (7,250) $ (5,344) $ 69,280 $ 821
========= ============ ========= ========== ========
Earnings Per Common Share $ 1.50
=========
Average Common Shares Outstanding 54,558
=========
</TABLE>
<TABLE>
<CAPTION>
AMSOUTH,
FORTUNE,
& TAMPA TOTAL
ADJUST- PRO FORMA ADJUST- PRO FORMA
MENTS COMBINED COMMUNITY MENTS COMBINED
-------- ----------- --------- -------- -----------
<S> <C> <C> <C> <C> <C>
Revenue from Earning Assets $ 0 $ 544,748 $ 4,041 $ (68)(F) $ 548,721
Interest Expense 0 235,526 1,769 (101)(F) 237,194
-------- ----------- -------- -------- -----------
Gross Interest Margin 0 309,222 2,272 33 311,527
Provision for Loan Losses 0 19,454 25 0 19,479
-------- ----------- -------- -------- -----------
Net Interest Margin 0 289,768 2,247 33 292,048
Noninterest Revenues 0 102,228 261 0 102,489
Noninterest Expenses 0 282,621 1,285 201 (F) 284,107
-------- ----------- -------- -------- -----------
Income (Loss) Before Applicable Taxes 0 109,375 1,223 (168) 110,430
Applicable Income Taxes 0 39,274 452 8 (F) 39,734
-------- ----------- -------- -------- -----------
Net Income $ 0 $ 70,101 $ 771 $ (176) $ 70,696
======== =========== ======== ======== ===========
Earnings Per Common Share $ 1.20
===========
Average Common Shares Outstanding 59,011
===========
</TABLE>
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED DECEMBER 31, 1993
AMSOUTH &
MID-STATE
FEDERAL
MID-STATE ADJUST- PRO FORMA
AMSOUTH FEDERAL (G) MENTS COMBINED FORTUNE (B)
--------- ----------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Revenue from Earning Assets $ 776,961 $ 55,074 $ (3,417)(H) $ 828,618 $ 162,836
Interest Expense 314,884 28,324 (2,418)(H) 340,790 93,291
--------- ----------- --------- ---------- -----------
Gross Interest Margin 462,077 26,750 (999) 487,828 69,545
Provision for Loan Losses 18,980 2,937 0 21,917 17,691
--------- ----------- --------- ---------- -----------
Net Interest Margin 443,097 23,813 (999) 465,911 51,854
Noninterest Revenues 194,361 7,679 0 202,040 3,146
Noninterest Expenses 420,087 17,708 1,962 (H) 439,757 57,009
--------- ----------- --------- ---------- -----------
Income Before Applicable Taxes 217,371 13,784 (2,961) 228,194 (2,009)
Applicable Income Taxes 71,144 5,880 (448)(H) 76,576 (3,673)
--------- ----------- --------- ---------- -----------
Net Income $ 146,227 $ 7,904 $ (2,513) $ 151,618 $ 1,664
========= =========== ========= ========== ===========
Earnings Per Common Share $ 3.10
=========
Average Common Shares Outstanding 47,153
=========
</TABLE>
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED DECEMBER 31, 1993
AMSOUTH,
AMSOUTH, MID-STATE
MID-STATE FEDERAL,
FEDERAL & FORTUNE &
FORTUNE TAMPA
ADJUST- PRO FORMA ADJUST- PRO FORMA
MENTS COMBINED TAMPA MENTS COMBINED**
---------- ----------- ------- ----- -----------
<S> <C> <C> <C> <C> <C>
Revenue from Earning Assets $ 11,404 (E) $ 1,002,858 $ 13,223 $ 0 $ 1,016,081
Interest Expense (1,704)(C) 443,395 3,678 0 447,073
11,209 (D)
(191)(E)
---------- ----------- ------- ----- -----------
Gross Interest Margin 2,090 559,463 9,545 0 569,008
Provision for Loan Losses 0 39,608 1,044 0 40,652
---------- ----------- ------- ----- -----------
Net Interest Margin 2,090 519,855 8,501 0 528,356
Noninterest Revenues 0 205,186 1,918 0 207,104
Noninterest Expenses 11,022 (E) 507,788 7,985 0 515,773
---------- ----------- ------- ----- -----------
Income Before Applicable Taxes (8,932) 217,253 2,434 0 219,687
Applicable Income Taxes 648 (C) 72,682 858 0 73,540
(4,259)(D)
3,390 (E)
---------- ----------- ------- ----- -----------
Net Income $ (8,711) $ 144,571 $ 1,576 $ 0 $ 146,147
========== =========== ======= ===== ===========
Earnings Per Common Share
Average Common Shares Outstanding
</TABLE>
** Continued on next page
See Notes to Unaudited Pro Forma Combined Condensed Statement of Earnings.
<PAGE>
AMSOUTH BANCORPORATION
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF EARNINGS
SIX MONTHS ENDED JUNE 30, 1994 AND TWELVE MONTHS ENDED DECEMBER 31, 1993
(In Thousands Except Per Share Data)
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED DECEMBER 31, 1993
AMSOUTH,
AMSOUTH, MID-STATE
MID-STATE FEDERAL,
FEDERAL, FORTUNE,
FORTUNE & TAMPA &
TAMPA COMMUNITY
PRO FORMA ADJUST- PRO FORMA
COMBINED** COMMUNITY MENTS COMBINED PARKWAY
--------- --------- -------- --------- ------
<S> <C> <C> <C> <C> <C>
Revenue from Earning Assets $1,016,081 $ 8,223 $ (150)(F) $1,024,154 $ 8,425
Interest Expense 447,073 3,386 (251)(F) 450,208 3,791
--------- --------- -------- --------- ------
Gross Interest Margin 569,008 4,837 101 573,946 4,634
Provision for Loan Losses 40,652 82 0 40,734 319
--------- --------- -------- --------- ------
Net Interest Margin 528,356 4,755 101 533,212 4,315
Noninterest Revenues 207,104 78 0 207,182 1,566
Noninterest Expenses 515,773 2,250 406 (F) 518,429 4,220
--------- --------- -------- --------- ------
Income Before Applicable Taxes 219,687 2,583 (305) 221,965 1,661
Applicable Income Taxes 73,540 914 28 (F) 74,482 631
--------- --------- -------- --------- ------
Net Income $ 146,147 $ 1,669 $ (333) $ 147,483 $ 1,030
========== ========== ========= ========== =======
</TABLE>
<TABLE>
<CAPTION>
AMSOUTH,
AMSOUTH, MID-STATE
MID-STATE FEDERAL,
FEDERAL, FORTUNE,
FORTUNE, TAMPA,
TAMPA, COMMUNITY,
COMMUNITY PARKWAY &
& PARKWAY CALHOUN
ADJUST- PRO FORMA ADJUST- PRO FORMA
MENTS COMBINED CALHOUN (J) MENTS COMBINED***
------- ----------- ---------- -------- ------------
<S> <C> <C> <C> <C> <C>
Revenue from Earning Assets $ 0 $ 1,032,579 $ 5,284 $ 0 $ 1,037,863
Interest Expense (118)(I) 453,881 2,107 0 455,988
------- ----------- ---------- -------- ------------
Gross Interest Margin 118 578,698 3,177 0 581,875
Provision for Loan Losses 0 41,053 119 0 41,172
------- ----------- ---------- -------- ------------
Net Interest Margin 118 537,645 3,058 0 540,703
Noninterest Revenues 0 208,748 535 0 209,283
Noninterest Expenses 0 522,649 1,678 0 524,327
------- ----------- ---------- -------- ------------
Income Before Applicable Taxes 118 223,744 1,915 0 225,659
Applicable Income Taxes 45 (I) 75,158 692 0 75,850
------- ----------- ---------- -------- ------------
Net Income $ 73 $ 148,586 $ 1,223 $ 0 $ 149,809
======= =========== ========== ======== ============
</TABLE>
** Continued from prior page
*** Continued to next page
See Notes to Unaudited Pro Forma Combined Condensed Statement of Earnings.
<PAGE>
AMSOUTH BANCORPORATION
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF EARNINGS
SIX MONTHS ENDED JUNE 30, 1994 AND TWELVE MONTHS ENDED DECEMBER 31, 1993
(In Thousands Except Per Share Data)
TWELVE MONTHS ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
AMSOUTH,
AMSOUTH, MID-STATE
MID-STATE FEDERAL,
FEDERAL, FORTUNE,
FORTUNE, TAMPA,
TAMPA, COMMUNITY,
COMMUNITY, PARKWAY,
PARKWAY & CALHOUN &
CALHOUN CITIZENS
PRO FORMA ADJUST- PRO FORMA
COMBINED*** CITIZENS MENTS COMBINED OBC
------------ ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Revenue from Earning Assets $ 1,037,863 $ 20,994 $ 0 $ 1,058,857 $ 25,495
Interest Expense 455,988 8,259 0 464,247 6,383
----------- ----------- --------- ----------- ----------
Gross Interest Margin 581,875 12,735 0 594,610 19,112
Provision for Loan Losses 41,172 1,731 0 42,903 6,400
----------- ----------- --------- ----------- ----------
Net Interest Margin 540,703 11,004 0 551,707 12,712
Noninterest Revenues 209,283 1,310 0 210,593 6,390
Noninterest Expenses 524,327 8,763 0 533,090 19,386
----------- ----------- --------- ----------- ----------
Income Before Applicable Taxes 225,659 3,551 0 229,210 (284)
Applicable Income Taxes 75,850 1,235 0 77,085 45
----------- ----------- --------- ----------- ----------
Net Income $ 149,809 $ 2,316 $ 0 $ 152,125 $ (329)
=========== =========== ========= =========== ==========
Earnings Per Common Share
Average Common Shares Outstanding
</TABLE>
<TABLE>
<CAPTION>
AMSOUTH,
MID-STATE
FEDERAL,
FORTUNE,
TAMPA,
COMMUNITY,
PARKWAY,
CALHOUN,
CITIZENS &
OBC TOTAL
ADJUST- PRO FORMA FLORIDA- ADJUST- PRO FORMA
MENTS COMBINED BANK MENTS COMBINED
----------- ----------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Revenue from Earning Assets $ 0 $ 1,084,352 $ 17,177 $ 0 $1,101,529
Interest Expense 0 470,630 9,806 0 480,436
----------- ----------- --------- ----------- ----------
Gross Interest Margin 0 613,722 7,371 0 621,093
Provision for Loan Losses 0 49,303 445 0 49,748
----------- ----------- --------- ----------- ----------
Net Interest Margin 0 564,419 6,926 0 571,345
Noninterest Revenues 0 216,983 2,008 0 218,991
Noninterest Expenses 0 552,476 10,239 0 562,715
----------- ----------- --------- ----------- ----------
Income Before Applicable Taxes 0 228,926 (1,305) 0 227,621
Applicable Income Taxes 0 77,130 (304) 0 76,826
----------- ----------- --------- ----------- ----------
Net Income $ 0 $ 151,796 $ (1,001) $ 0 $ 150,795
=========== =========== ========= =========== ==========
Earnings Per Common Share $ 2.58
==========
Average Common Shares Outstanding 58,413
==========
</TABLE>
*** Continued from prior page
See Notes to Unaudited Pro Forma Combined Condensed Statement of Earnings.
<PAGE>
AMSOUTH BANCORPORATION
NOTES TO THE UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF EARNINGS
SIX MONTHS ENDED JUNE 30, 1994 AND TWELVE MONTHS ENDED DECEMBER 31, 1993
(In Thousands Except Per Share Amounts)
(A) On June 23, 1994, Fortune was merged into AmSouth in a transaction accounted
for as a purchase under GAAP. Therefore, the Unaudited Pro Forma Combined
Condensed Statement of Condition at June 30, 1994, includes the balances
acquired from Fortune as well as the necessary purchase accounting
adjustments. Included in the Unaudited Pro Forma Combined Condensed
Statement of Earnings for the six months ended June 30, 1994, is the Fortune
statement of earnings for the period January 1, 1994 through June 23, 1994.
(B) The amounts for the twelve months ended December 31, 1993 are reconciled
with the reported operating results of Fortune for the year ended September
30, 1993 as follows:
<TABLE>
<CAPTION>
Year Deduct Three Add Three Twelve Months
Ended Months Ended Months Ended Ended
September 30, December 31, December 31, December 31,
1993 1992 1993 1993
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Revenue from Earning Assets $168,651 $ 44,648 $ 38,833 $162,836
Interest Expense 97,665 26,431 22,057 93,291
-------- -------- -------- --------
Gross Interest Margin 70,986 18,217 16,776 69,545
Provision for Loan Losses 13,819 5,296 9,168 17,691
-------- -------- -------- --------
Net Interest Margin 57,167 12,921 7,608 51,854
Noninterest Revenues 9,147 7,920 1,919 3,146
Noninterest Expenses 55,430 13,793 15,372 57,009
-------- -------- -------- --------
Income Before Applicable Taxes 10,884 7,048 (5,845) (2,009)
Applicable Income Taxes 1,650 2,991 (2,332) (3,673)
-------- -------- -------- --------
Net Income $ 9,234 $ 4,057 $ (3,513) $ 1,664
======== ======== ======== ========
</TABLE>
(C) To eliminate interest expense on $17,044 of Fortune's 10% subordinated
convertible debentures which were outstanding during 1993 and were converted
or redeemed during January 1994.
<TABLE>
<CAPTION>
Year Ended
December 31,
1993
------------
<S> <C>
Decrease in Interest Expense $1,704
Decrease in Pro Forma Net Income due to
38% Taxes (648)
------
Increase in Pro Forma Net Income $1,056
======
</TABLE>
(D) To record interest expense on $144,627 (the cash consideration paid to
Fortune shareholders) of 7.75% Subordinated Notes Due 2004 issued by
AmSouth.
<TABLE>
<CAPTION>
Six Months
Year Ended Ended
December 31, June 30,
1993 1994
------------ ----------
<S> <C> <C>
Increase in Interest Expense $(11,209) $ (5,604)
Increase in Pro Forma Net Income due to
38% Taxes 4,259 2,130
-------- --------
Decrease in Pro Forma Net Income $ (6,950) $ (3,474)
======== ========
</TABLE>
<PAGE>
(E) Fortune's accretion and amortization of purchase price adjustments resulting
from the adjustments to estimated fair values are as follows:
<TABLE>
<CAPTION>
Purchase Twelve Months Six Months
Discount Ended December 31, 1993 Ended June 30, 1994
(Premium) Accretion (Amortization) Accretion (Amortization)
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Loans $ 35,125 $ 8,771 3,761
Held-to-Maturity Securities 7,898 2,633 $ 1,053
--------- ---------
Increase in Revenues from
Earning Assets $ 11,404 $ 11,404 $ 4,814 $ 4,814
========= =========
Deposits 2,617 $ 1,820 $ 465
Other Borrowings (2,536) (1,629) (393)
--------- ---------
Decrease in Interest Expense $ 191 191 $ 72 72
========= =========
Fixed Assets-Buildings and Land 9,553 $ 478 $ 239
Purchased Mortgage
Servicing Rights (9,250) (2,313) (991)
Interest Rate Cap (1,480) (740) (370)
Miscellaneous Asset (2,000) (100) (50)
Excess of Cost Over Fair Value
of Net Assets Acquired (166,932) (8,347) (4,173)
--------- ---------
Increase in Noninterest Expenses $ (11,022) (11,022) $ (5,345) (5,345)
========= =========
Decrease in Pro Forma Net Income due to 38% taxes (3,390) (1,411)
--------- ---------
Decrease in Pro Forma Net Income $ (2,817) $ (1,870)
========= =========
</TABLE>
The expected decrease for each of the twelve months ended December 31,
indicated below, on future net income and shareholders' equity of the
projected aggregate purchase accounting adjustments reflected in the
accompanying unaudited pro forma combined condensed financial statements
assuming the merger was consummated on January 1, 1993 are as follows:
<TABLE>
<S> <C>
1994 $ (3,743)
1995 (4,351)
1996 (5,237)
1997 (6,068)
1998 (6,949)
</TABLE>
The Excess of Cost Over Fair Value of Net Assets Acquired is being amortized
on a straight line basis over twenty years. The accretion (amortization) of
all other items is generally over a shorter period and generally on an
accelerated method. Therefore, the expected decrease for each of the twelve
months ended December 31, 1994 - 1998 on future net income and shareholders'
equity increases each year.
<PAGE>
(F) Community's accretion and amortization of purchase price adjustments
resulting from the adjustments to estimated fair values, as set forth in
Note (C) of Notes to Unaudited Pro Forma Combined Condensed Statement of
Condition are as follows:
<TABLE>
<CAPTION>
Purchase Twelve Months Six Months
Discount Ended December 31, 1993 Ended June 31, 1994
(Premium) Accretion (Amortization) Accretion (Amortization)
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Loans $ (817) $ (149) $ (67)
Held-to-Maturity Securities (11) (1) (1)
------- -------
Decrease in Revenues from
Earning Assets $ (150) $ (150) $ (68) $ (68)
======= =======
Deposits 754 $ 251 $ 101
------- -------
Decrease in Interest Expense $ 251 251 $ 101 101
======= =======
Purchased Mortgage
Servicing Rights (100) $ (29) $ (12)
Excess of Cost Over Fair Value
of Net Assets Acquired (7,540) (377) (189)
------- -------
Increase in Noninterest Expenses $ (406) (406) $ (201) (201)
======= =======
Decrease in Pro Forma Net Income due to 38% taxes (28) (8)
------- -------
Decrease in Pro Forma Net Income $ (333) $ (176)
======= =======
</TABLE>
The expected decrease for each of the twelve months ended December 31,
indicated below, on future net income and shareholders' equity of the
projected aggregate purchase accounting adjustments reflected in the
accompanying unaudited pro forma combined condensed financial statements
assuming the merger was consummated on January 1, 1993 are as follows:
<TABLE>
<S> <C>
1994 $ (371)
1995 (390)
1996 (409)
1997 (428)
1998 (447)
</TABLE>
The Excess of Cost Over Fair Value of Net Assets Acquired is being amortized
on a straight line basis over twenty years. The accretion (amortization) of
all other items is generally over a shorter period and generally on an
accelerated method. Therefore, the expected decrease for each of the twelve
months ended December 31, 1994 - 1998 on future net income and shareholders'
equity increases each year.
(G) On December 9, 1993, Mid-State Federal was merged into AmSouth Bank of
Florida, a wholly owned subsidiary of AmSouth, in a transaction accounted
for as a purchase under GAAP. Therefore, the Unaudited Pro Forma Combined
Condensed Statement of Condition at June 30, 1994, includes the balances
acquired from Mid-State Federal, as well as, the necessary purchase
accounting adjustments. Included in the Unaudited Pro Forma Combined
Condensed Statement of Earnings for the twelve months ended December 31,
1993, is the Mid-State Federal statement of earnings for the twelve months
ended September 30, 1993, the last available twelve month period (which is
representative of normal operations).
<PAGE>
(H) Mid-State Federal's accretion and amortization of purchase price adjustments
resulting from the adjustments to fair values are as follows:
<TABLE>
<CAPTION>
Purchase Twelve Months
Discount Ended December 31, 1993
(Premium) Accretion (Amortization)
--------- ------------------------
<S> <C> <C> <C>
Investment Securities $ (4,629) $ (839)
Loans (7,707) (2,578)
--------
Decrease in Revenues from
Earning Assets $ (3,417) $ (3,417)
========
Deposits 5,156 $ 1,901
Other Borrowings 1,293 517
--------
Decrease in Interest Expense $ 2,418 2,418
========
Fixed Assets-Buildings and Land (1,722) $ (86)
Purchased Mortgage
Servicing Rights (378) (95)
Excess of Cost Over Fair Value
of Net Assets Acquired (35,619) (1,781)
--------
Increase in Noninterest Expenses $ (1,962) (1,962)
========
Increase in Pro Forma Net Income due to 38% taxes 448
--------
Decrease in Pro Forma Net Income $ (2,513)
========
</TABLE>
The expected decrease for each of the twelve months ended December 31,
indicated below, on future net income and shareholders' equity of the
projected aggregate purchase accounting adjustments reflected in the
accompanying unaudited pro forma combined condensed financial statements
assuming the merger was consummated on January 1, 1993 are as follows:
<TABLE>
<S> <C>
1994 $ (2,324)
1995 (2,294)
1996 (2,227)
1997 (2,258)
1998 (2,081)
</TABLE>
(I) To eliminate interest expense on $1,310 of Parkway's 9% convertible
subordinated debentures which were outstanding during 1993 and were
converted or redeemed during the first quarter of 1994.
<TABLE>
<CAPTION>
Year Ended
December 31,
1993
------------
<S> <C>
Decrease in Interest Expense $ 118
Decrease in Pro Forma Net Income due to
38% Taxes (45)
-------
Increase in Pro Forma Net Income $ 73
=======
</TABLE>
(J) The amounts for the twelve months ended December 31, 1993 are reconciled
with the reported operating results of Calhoun for the year ended September
30, 1993 as follows:
<TABLE>
<CAPTION>
Year Deduct Three Add Three Twelve Months
Ended Months Ended Months Ended Ended
September 30, December 31, December 31, December 31,
1993 1992 1993 1993
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Revenue from Earning Assets $ 5,382 $ 1,392 $ 1,294 $ 5,284
Interest Expense 2,183 584 508 2,107
------- ------- ------- -------
Gross Interest Margin 3,199 808 786 3,177
Provision for Loan Losses 125 31 25 119
------- ------- ------- -------
Net Interest Margin 3,074 777 761 3,058
Noninterest Revenues 520 123 138 535
Noninterest Expenses 1,587 390 481 1,678
------- ------- ------- -------
Income Before Applicable Taxes 2,007 510 418 1,915
Applicable Income Taxes 722 174 144 692
------- ------- ------- -------
Net Income $ 1,285 $ 336 $ 274 $ 1,223
======= ======= ======= =======
</TABLE>
<PAGE>
Signatures
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
----------------------------------
Carl L. Gorday
Assistant Secretary
Date: October 14, 1994
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