<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
November 17, 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 September 30, 1994, described below.
Pending Mergers and Acquisitions as of September 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 September 30, 1994, Tampa had total
consolidated assets of approximately $213.4 million and total consolidated
deposits of approximately $197.8 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
September 30, 1994, Tampa had approximately 638,000 shares of common stock
outstanding. The acquisition will be accounted for as a pooling of
interests under generally accepted accounting principles ("GAAP").
. On March 31, 1994, AmSouth signed an agreement to acquire Community
Federal Savings Bank ("Community"), headquartered in Fort Oglethorpe,
Georgia. At September 30, 1994, Community had total assets of approximately
$103.6 million and total deposits of approximately $88.8 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 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
September 30, 1994.
Unaudited Pro Forma Combined Condensed Statement of Earnings for the
nine months ended September 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 September 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 September 30, 1994.
The following unaudited pro forma combined condensed statement of earnings
for the nine months ended September 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
SEPTEMBER 30, 1994
(In Thousands)
<TABLE>
<CAPTION>
AMSOUTH &
TAMPA TOTAL
PRO FORMA PRO FORMA
AMSOUTH TAMPA ADJUSTMENTS COMBINED COMMUNITY ADJUSTMENTS COMBINED
----------- --------- ----------- ----------- --------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and Due From Banks $ 821,865 $ 12,432 $ 0 $ 834,297 $ 4,063 $ 0 $ 838,360
Federal Funds Sold and
Securities Purchased
Under Agreements to
Resell 102,579 11,107 0 113,686 0 0 113,686
Trading Securities 5,823 0 0 5,823 0 0 5,823
Available-for-Sale Securities 616,256 47,620 0 663,876 0 (17,069)(D) 646,807
Held-to-Maturity Securities 3,396,617 15,585 0 3,412,202 908 11 (C) 3,413,121
Mortgage Loans Held for Sale 192,001 0 0 192,001 0 0 192,001
Loans, Net of Unearned Income 11,008,363 120,665 0 11,129,028 96,013 456 (B) 11,226,314
817 (C)
Less Allowance for Loan
Losses 164,756 2,794 0 167,550 745 0 168,295
----------- -------- ----- ----------- -------- -------- -----------
Net Loans 10,843,607 117,871 0 10,961,478 95,268 1,273 11,058,019
Premises and Equipment, Net 283,275 4,418 0 287,693 1,555 0 289,248
Other Real Estate Owned 31,672 388 0 32,060 21 0 32,081
Intangible Assets 292,504 0 0 292,504 0 7,150 (D) 299,654
Mortgage Servicing Rights 67,831 0 0 67,831 0 100 (C) 67,931
Other Assets 215,157 4,007 0 219,164 1,789 (56)(B) 220,897
----------- -------- ----- ----------- -------- -------- -----------
$16,869,187 $213,428 $ 0 $17,082,615 $103,604 $ (8,591) $17,177,628
=========== ======== ===== =========== ======== ======== ===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits and
Interest-Bearing
Liabilities:
Deposits $12,608,261 $197,787 $ 0 $12,806,048 $ 88,769 $ 754 (C) $12,895,571
Federal Funds Purchased and
Securities Sold Under
Agreements to Repurchase 1,758,166 0 0 1,758,166 0 0 1,758,166
Other Borrowed Funds 633,737 1,980 0 635,717 3,000 0 638,717
Long-Term Debt 423,648 0 0 423,648 0 0 423,648
----------- -------- ----- ----------- -------- -------- -----------
Total Deposits and
Interest-Bearing
Liabilities 15,423,812 199,767 0 15,623,579 91,769 754 15,716,102
Other Liabilities 126,878 496 0 127,374 1,220 441 (B) 129,864
152 (B)
887 (C)
(210)(C)
----------- -------- ----- ----------- -------- -------- -----------
Total Liabilities 15,550,690 200,263 0 15,750,953 92,989 2,024 15,845,966
Shareholders' Equity:
Preferred Stock 0 0 0 0 0 0 0
Common Stock 59,526 64 (64)(A) 60,521 249 (249)(D) 60,521
995 (A)
Capital Surplus 578,041 7,505 (931)(A) 584,615 2,039 (2,039)(D) 584,615
Retained Earnings 723,326 6,504 729,830 8,327 (193)(B) 729,830
(503)(C)
(7,631)(D)
Cost of Common Stock in
Treasury (24,173) 0 0 (24,173) 0 0 (24,173)
Deferred Compensation on
Restricted Stock (4,868) 0 0 (4,868) 0 0 (4,868)
Unrealized Losses on Available-
for-Sale Securities (13,355) (908) 0 (14,263) 0 0 (14,263)
----------- -------- ----- ----------- -------- -------- -----------
Total Shareholders' Equity 1,318,497 13,165 0 1,331,662 10,615 (10,615) 1,331,662
----------- -------- ----- ----------- -------- -------- -----------
$16,869,187 $213,428 $ 0 $17,082,615 $103,604 $ (8,591) $17,177,628
=========== ======== ===== =========== ======== ======== ===========
</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
SEPTEMBER 30, 1994
(Dollars In Thousands Except Share Amounts)
(A) 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 995,000 (1.5592 X 637,827) 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.
(B) The following pro forma adjustments are necessary to record the
transactions for Community:
(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)
======
(C) 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 $ 10,615
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 7,150
-----------
$ 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.
(D) 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
NINE MONTHS ENDED SEPTEMBER 30, 1994 AND TWELVE MONTHS ENDED DECEMBER 31, 1993
(In Thousands Except Per Share Data)
NINE MONTHS ENDED SEPTEMBER 30, 1994
<TABLE>
<CAPTION>
AMSOUTH &
FORTUNE
ADJUST- PRO FORMA ADJUST-
AMSOUTH FORTUNE (A) MENTS COMBINED TAMPA MENTS
-------- ----------- -------- --------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Revenue from Earning Assets $752,682 $ 75,714 $ 7,220 (E) $ 835,616 $ 10,748 $ 0
Interest Expense 328,864 41,386 8,407 (D) 378,550 3,011 0
(107)(E)
-------- ----------- -------- --------- -------- -------
Gross Interest Margin 423,818 34,328 (1,080) 457,066 7,737 0
Provision for Loan Losses 9,954 13,873 0 23,827 1,060 0
-------- ----------- -------- --------- -------- -------
Net Interest Margin 413,864 20,455 (1,080) 433,239 6,677 0
Noninterest Revenues 151,588 5,553 0 157,141 1,276 0
Noninterest Expenses 371,927 36,114 8,018 (E) 416,059 6,154 0
-------- ----------- -------- --------- -------- -------
Income (Loss) Before Applicable
Taxes 193,525 (10,106) (9,098) 174,321 1,799 0
Applicable Income Taxes 67,590 (2,856) (3,195)(D) 63,655 651 0
2,116 (E)
-------- ----------- -------- --------- -------- -------
Net Income $125,935 $ (7,250) $(8,019) $ 110,666 $ 1,148 $ 0
======== =========== ======== ========= ======== =======
Earnings Per Common Share $ 2.25
========
Average Common Shares
Outstanding 56,021
========
<CAPTION>
AMSOUTH,
FORTUNE,
& TAMPA TOTAL
PRO FORMA ADJUST- PRO FORMA
COMBINED COMMUNITY MENTS COMBINED
--------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Revenue from Earning Assets $ 846,364 $ 6,010 $ (101)(F) $ 852,273
Interest Expense 381,561 2,692 (151)(F) 384,102
--------- ---------- -------- ----------
Gross Interest Margin 464,803 3,318 50 468,171
Provision for Loan Losses 24,887 40 0 24,927
--------- ---------- -------- ----------
Net Interest Margin 439,916 3,278 50 443,244
Noninterest Revenues 158,417 472 0 158,889
Noninterest Expenses 422,213 1,900 286 (F) 424,399
--------- ---------- -------- ----------
Income (Loss) Before Applicable
Taxes 176,120 1,850 (236) 177,734
Applicable Income Taxes 64,306 689 12 (F) 65,007
--------- ---------- -------- ----------
Net Income $ 111,814 $ 1,161 $ (248) $ 112,727
========= ========== ======== ==========
Earnings Per Common Share $ 1.88
==========
Average Common Shares
Outstanding $ 59,868
==========
</TABLE>
TWELVE MONTHS ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
AMSOUTH &
MID-STATE
FEDERAL
MID-STATE ADJUST- PRO FORMA ADJUST-
AMSOUTH FEDERAL (G) MENTS COMBINED FORTUNE (B) MENTS
-------- ----------- -------- --------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Revenue from Earning Assets $ 776,961 $ 55,074 $ (3,417)(H) $ 828,618 $ 162,836 $ 11,404 (E)
Interest Expense 314,884 28,324 (2,418)(H) 340,790 93,291 (1,704)(C)
11,209 (D)
(191)(E)
-------- ----------- -------- --------- ----------- -------
Gross Interest Margin 462,077 26,750 (999) 487,828 69,545 2,090
Provision for Loan Losses 18,980 2,937 0 21,917 17,691 0
-------- ----------- -------- --------- ----------- -------
Net Interest Margin 443,097 23,813 (999) 465,911 51,854 2,090
Noninterest Revenues 194,361 7,679 0 202,040 3,146 0
Noninterest Expenses 420,087 17,708 1,962 (H) 439,757 57,009 11,022 (E)
-------- ----------- -------- --------- ----------- -------
Income (Loss) Before Applicable
Taxes 217,371 13,784 (2,961) 228,194 (2,009) (8,932)
Applicable Income Taxes 71,144 5,880 (448)(H) 76,576 (3,673) 648 (C)
(4,259)(D)
3,390 (E)
-------- ----------- -------- --------- ----------- -------
Net Income $ 146,227 $ 7,904 $ (2,513) $ 151,618 $ 1,664 $ (8,711)
======== =========== ======== ========= =========== =======
Earnings Per Common Share $ 3.10
========
Average Common Shares Outstanding 47,153
========
<CAPTION>
AMSOUTH,
AMSOUTH, MID-STATE
MID-STATE FEDERAL,
FEDERAL & FORTUNE &
FORTUNE TAMPA
PRO FORMA ADJUST- PRO FORMA
COMBINED TAMPA MENTS COMBINED**
------------ ---------- ------- ----------
<S> <C> <C> <C> <C>
Revenue from Earning Assets $ 1,002,858 $ 13,223 $ 0 $1,016,081
Interest Expense 443,395 3,678 0 447,073
------------ ---------- ------- ----------
Gross Interest Margin 559,463 9,545 0 569,008
Provision for Loan Losses 39,608 1,044 0 40,652
------------ ---------- ------- ----------
Net Interest Margin 519,855 8,501 0 528,356
Noninterest Revenues 205,186 1,918 0 207,104
Noninterest Expenses 507,788 7,985 0 515,773
------------ ---------- ------- ----------
Income (Loss) Before Applicable
Taxes 217,253 2,434 0 219,687
Applicable Income Taxes 72,682 858 0 73,540
------------ ---------- ------- ----------
Net Income $ 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
NINE MONTHS ENDED SEPTEMBER 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 ADJUST-
COMBINED** COMMUNITY MENTS COMBINED PARKWAY MENTS
---------- ----------- -------- --------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Revenue from Earning Assets $1,016,081 $ 7,760 $ (150)(F) $1,023,691 $ 8,425 $ 0
Interest Expense 447,073 3,386 (251)(F) 450,208 3,791 (118)(I)
---------- ----------- -------- --------- ----------- -------
Gross Interest Margin 569,008 4,374 101 573,483 4,634 118
Provision for Loan Losses 40,652 82 0 40,734 319 0
---------- ----------- -------- --------- ----------- -------
Net Interest Margin 528,356 4,292 101 532,749 4,315 118
Noninterest Revenues 207,104 541 0 207,645 1,566 0
Noninterest Expenses 515,773 2,250 387 (F) 518,410 4,220 0
---------- ----------- -------- --------- ----------- -------
Income (Loss) Before Applicable
Taxes 219,687 2,583 (286) 221,984 1,661 118
Applicable Income Taxes 73,540 914 27 (F) 74,481 631 45 (I)
---------- ----------- -------- --------- ----------- -------
Net Income $ 146,147 $ 1,669 $ (313) $ 147,503 $ 1,030 $ 73
========== =========== ======== ========= =========== =======
<CAPTION>
AMSOUTH,
AMSOUTH, MID-STATE
MID-STATE FEDERAL,
FEDERAL, FORTUNE,
FORTUNE, TAMPA,
TAMPA, COMMUNITY,
COMMUNITY PARKWAY &
& PARKWAY CALHOUN
PRO FORMA ADJUST- PRO FORMA
COMBINED CALHOUN (J) MENTS COMBINED***
--------- ----------- ------- ------------
<S> <C> <C> <C> <C>
Revenue from Earning Assets $1,032,116 $ 5,284 $ 0 $ 1,037,400
Interest Expense 453,881 2,107 0 455,988
--------- ----------- ------- ------------
Gross Interest Margin 578,235 3,177 0 581,412
Provision for Loan Losses 41,053 119 0 41,172
--------- ----------- ------- ------------
Net Interest Margin 537,182 3,058 0 540,240
Noninterest Revenues 209,211 535 0 209,746
Noninterest Expenses 522,630 1,678 0 524,308
--------- ----------- ------- ------------
Income (Loss) Before Applicable
Taxes 223,763 1,915 0 225,678
Applicable Income Taxes 75,157 692 0 75,849
--------- ----------- ------- ------------
Net Income $ 148,606 $ 1,223 $ 0 $ 149,829
========= =========== ======= ============
</TABLE>
** Continued from prior page.
*** 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
NINE MONTHS ENDED SEPTEMBER 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
AMSOUTH, MID-STATE FEDERAL,
MID-STATE FEDERAL, FORTUNE,
FEDERAL, FORTUNE, TAMPA,
FORTUNE, TAMPA, COMMUNITY,
TAMPA, COMMUNITY, PARKWAY,
COMMUNITY, PARKWAY, CALHOUN,
PARKWAY & CALHOUN & CITIZENS &
CALHOUN CITIZENS OBC
PRO FORMA ADJUST- PRO FORMA ADJUST- PRO FORMA
COMBINED*** CITIZENS MENTS COMBINED OBC MENTS COMBINED
----------- -------- ------- ---------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenue from Earning Assets $1,037,400 $20,994 $ 0 $1,058,394 $25,495 $ 0 $1,083,889
Interest Expense 455,988 8,259 0 464,247 6,383 0 470,630
----------- -------- ------- ---------- ------- ------- ----------
Gross Interest Margin 581,412 12,735 0 594,147 19,112 0 613,259
Provision for Loan Losses 41,172 1,731 0 42,903 6,400 0 49,303
----------- -------- ------- ---------- ------- ------- ----------
Net Interest Margin 540,240 11,004 0 551,244 12,712 0 563,956
Noninterest Revenues 209,746 1,310 0 211,056 6,390 0 217,446
Noninterest Expenses 524,308 8,763 0 533,071 19,386 0 552,457
----------- -------- ------- ---------- ------- ------- ----------
Income (Loss) Before Applicable
Taxes 225,678 3,551 0 229,229 (284) 0 228,945
Applicable Income Taxes 75,849 1,235 0 77,084 45 0 77,129
----------- -------- ------- ---------- ------- ------- ----------
Net Income $ 149,829 $ 2,316 $ 0 $ 152,145 $ (329) $ 0 $ 151,816
=========== ======== ======= ========== ======= ======= ==========
Earnings Per Common Share
Average Common Shares Outstanding
<CAPTION>
TOTAL
FLORIDA- ADJUST- PRO FORMA
BANK MENTS COMBINED
<S> <C> <C> <C>
-------- ------- -----------
Revenue from Earning Assets $ 17,177 $ 0 $ 1,101,066
Interest Expense 9,806 0 480,436
-------- ------- -----------
Gross Interest Margin 7,371 0 620,630
Provision for Loan Losses 445 0 49,748
-------- ------- -----------
Net Interest Margin 6,926 0 570,882
Noninterest Revenues 2,008 0 219,454
Noninterest Expenses 10,239 0 562,696
-------- ------- -----------
Income (Loss) Before Applicable
Taxes (1,305) 0 227,640
Applicable Income Taxes (304) 0 76,825
-------- ------- -----------
Net Income $ (1,001) $ 0 $ 150,815
======== ======= ===========
Earnings Per Common Share $ 2.58
===========
Average Common Shares Outstanding 58,429
===========
</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
NINE MONTHS ENDED SEPTEMBER 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 AmSouth Statement of Earnings
at September 30, 1994, includes the earnings related to Fortune for the
period June 23, 1994 through September 30, 1994. Included in the Unaudited
Pro Forma Combined Condensed Statement of Earnings for the nine months ended
September 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>
Twelve
Year Deduct Three Add Three 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>
Nine Months
Year Ended Ended
December 31, September 30,
1993 1994
------------ -------------
<S> <C> <C>
Increase in Interest Expense $ (11,209) $ (8,407)
Increase in Pro Forma Net Income due to
38% Taxes 4,259 3,195
------------ -------------
Decrease in Pro Forma Net Income $ (6,950) $ (5,212)
============ =============
</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 Nine Months
Discount Ended December 31, 1993 Ended September 30, 1994
(Premium) Accretion (Amortization) Accretion (Amortization)
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Loans $ 35,125 $ 8,771 5,641
Held-to-Maturity Securities 7,898 2,633 $ 1,579
---------- ----------
Increase in Revenues from
Earning Assets $ 11,404 $ 11,404 $ 7,220 $ 7,220
========== ==========
Deposits 2,617 $ 1,820 $ 697
Other Borrowings (2,536) (1,629) (590)
---------- ----------
Decrease in Interest Expense $ 191 191 $ 107 107
========== ==========
Fixed Assets-Buildings and Land 9,553 $ 478 $ 359
Purchased Mortgage
Servicing Rights (9,250) (2,313) (1,487)
Interest Rate Cap (1,480) (740) (555)
Miscellaneous Asset (2,000) (100) (75)
Excess of Cost Over Fair Value
of Net Assets Acquired (166,932) (8,347) (6,260)
---------- ----------
Increase in Noninterest Expenses $ (11,022) (11,022) $ (8,018) (8,018)
========== ==========
Decrease in Pro Forma Net Income due to 38% taxes (3,390) (2,116)
--------- ---------
Decrease in Pro Forma Net Income $ (2,817) $ (2,807)
========= =========
</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 Nine Months
Discount Ended December 31, 1993 Ended September 30, 1994
(Premium) Accretion (Amortization) Accretion (Amortization)
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Loans $ (817) $ (149) $ (100)
Held-to-Maturity Securities (11) (1) (1)
-------- --------
Decrease in Revenues from
Earning Assets $ (150) $ (150) $ (101) $ (101)
======== ========
Deposits 754 $ 251 $ 151
-------- --------
Decrease in Interest Expense $ 251 251 $ 151 151
======== ========
Purchased Mortgage Servicing Rights (100) $ (29) $ (18)
Excess of Cost Over Fair Value
of Net Assets Acquired (7,150) (358) (268)
-------- --------
Increase in Noninterest Expenses $ (387) (387) $ (286) (286)
======== ========
Decrease in Pro Forma Net Income due to 38% taxes (27) (12)
-------- --------
Decrease in Pro Forma Net Income $ (313) $ (248)
======== ========
</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 $ (331)
1995 (350)
1996 (369)
1997 (388)
1998 (407)
</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/ M. List Underwood, Jr.
--------------------------
M. List Underwood, Jr.
Executive Vice President
and Controller
Date: November 17, 1994