<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
JANUARY 13, 1998
Date of Report (Date of earliest event reported)
AMSOUTH BANCORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-7476 63-0591257
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
AMSOUTH-SONAT TOWER
1900 FIFTH AVENUE NORTH
BIRMINGHAM, ALABAMA 35203
(Address, including zip code, of principal executive office)
(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 report its preliminary results of operations for the fourth quarter
of 1997 and for the fiscal year ended December 31, 1997. On January 13, 1998,
AmSouth issued a press release describing its results of operations for the
fourth quarter of 1997 and for the year ended December 31, 1997. The press
release is attached as Exhibit 99 and incorporated as part of this Current
Report on Form 8-K.
1
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
The following exhibit is filed as part of this Current Report on
Form 8-K.
EXHIBIT NO. EXHIBIT
----------- -------
99 Press Release dated
January 13, 1998
2
<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
------------------------
Assistant Secretary
Date: January 30, 1998
3
<PAGE>
EXHIBIT INDEX TO EXHIBITS
------- -----------------
99 Press Release dated
January 13, 1998
4
<PAGE>
AmSouth Bancorporation
Post Office Box 11007
Birmingham, Alabama 35288
News
Release
AMSOUTH
FOR IMMEDIATE RELEASE
Contact: (Investment Community) List Underwood (205) 801-0265
(News Media) Jim Underwood (205) 326-5184
AMSOUTH REPORTS RECORD FOURTH QUARTER AND FULL YEAR EARNINGS
Fourth quarter earnings per share up 19.7 percent to $.73
versus $.61 in the fourth quarter of 1996
BIRMINGHAM, ALABAMA, JANUARY 13, 1998 --- AmSouth Bancorporation announced
today record fourth quarter earnings of $58.9 million, or $.73 per share ($.72
on a diluted basis), and full year earnings of $226.2 million, or $2.76 per
share ($2.73 on a diluted basis).
Fourth quarter 1997 earnings per share of $.73 increased 19.7 percent over
the $.61 recorded in the fourth quarter of 1996, while net income of $58.9
million increased 14.1 percent over the $51.6 million earned in the fourth
quarter of 1996. AmSouth's fourth quarter 1997 performance resulted in a return
on average equity of 17.15 percent, the highest quarterly return on equity since
the company was founded, and a return on average assets of 1.29 percent. The
company's fourth quarter efficiency ratio was 55.72 percent.
5
<PAGE>
For the year, AmSouth's earnings represent a 14.3 percent increase over
1996 net income of $197.9 million (excluding a one-time charge in 1996 to
capitalize the Savings Association Insurance Fund) and an 18.5 percent increase
over 1996 earnings per share of $2.33.
AmSouth's 1997 performance resulted in a return on average equity for the
year of 16.51 percent, the highest annual return on equity in the company's
history, and a return on average assets of 1.25 percent. The company's
efficiency ratio for the year improved to 55.43 percent.
"With record fourth quarter income and profitability, we have built a solid
track record of 12 consecutive quarters of increased earnings per share," C.
Dowd Ritter, chairman, president and chief executive officer of AmSouth
Bancorporation and AmSouth Bank, said. For the three year period ending on
December 31, 1997, AmSouth's earnings per share have grown at a compounded
annual rate of 22.5 percent, according to Ritter.
"We are especially pleased that our shareholders realized significant
appreciation on their investment in AmSouth stock during 1997," Ritter added.
Based on AmSouth's closing stock price of $54.31 on December 31, AmSouth
shareholders realized a total gain, including stock price appreciation and
dividends, of 73 percent during 1997. AmSouth's market capitalization increased
$1.7 billion in 1997 and totaled $4.4 billion at December 31, 1997.
Net interest income for the year increased 3.7 percent, while average
consolidated loans, excluding residential first mortgages, grew 10.0 percent,
led by a 30.8 percent increase in average home equity loans and a 13.3 percent
increase in average commercial loans. The company's Florida franchise led the
company in commercial, commercial real estate and home equity loan growth,
according to Ritter.
Fourth quarter highlights cited by Ritter include increasing the
corporation's quarterly dividend 7.1 percent from $.28 to $.30. The 1997
increase marked the 24th consecutive year that AmSouth has increased its
6
<PAGE>
dividends to shareholders, which has earned AmSouth the distinction of "dividend
achiever" by Moody's Investors Service.
Total fourth quarter noninterest income, which includes earnings from
trust, investment management services and other sources of fee income, was $70.9
million, an increase of $10.3 million, or 16.9 percent, compared with the fourth
quarter of 1996. Fourth quarter 1997 noninterest expenses were $135.1 million,
an increase of 3.0 percent over last year's fourth quarter.
Net charge-offs were .51 percent of average net loans in the current
quarter, the fourth consecutive quarter of improvement in this key measure of
credit quality. The allowance for loan losses to loans net of unearned income
was 1.46 percent compared with 1.48 percent reported in the fourth quarter of
1996. Total nonperforming assets were $83.4 million at December 31, 1997, a
decline of $10.9 million, or 11.5 percent, from the previous year.
AmSouth is a regional bank holding company headquartered in Birmingham. At
December 31, the company reported assets of $18.6 billion, ranking it among the
top 50 banking institutions in the U.S. AmSouth operates 276 banking offices
and more than 600 ATMs in Alabama, Florida, Tennessee and Georgia. AmSouth and
its subsidiaries provide a full line of traditional and nontraditional financial
services including consumer and commercial banking, mortgages, trust services
and investment management.
7
<PAGE>
AMSOUTH BANCORPORATION
(Unaudited)
(In thousands except per share data)
<TABLE>
<CAPTION>
Three Months Twelve Months
Ended December 31 Ended December 31
-------------------------- % -------------------------- %
EARNINGS SUMMARY 1997 1996 Change 1997 1996 Change
----------------------------------------- -------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net interest income $ 170,022 $ 169,466 0.3 $ 676,277 $ 652,381 3.7
Provision for loan losses 15,780 18,497 (14.7) 67,399 65,171 3.4
---------- ----------- ---------- -----------
Net interest income after provision 154,242 150,969 2.2 608,878 587,210 3.7
Noninterest revenues 70,949 60,677 16.9 266,004 235,274 13.1
SAIF assessment -0- -0- -- -0- 24,196 (100.0)
Noninterest expenses 135,101 131,150 3.0 526,192 510,036 3.2
---------- ----------- ---------- -----------
Income before income taxes 90,090 80,496 11.9 348,690 288,252 21.0
Income taxes 31,198 28,881 8.0 122,523 105,576 16.1
---------- ----------- ---------- -----------
Net income $ 58,892 $ 51,615 14.1 $ 226,167 $ 182,676 23.8
========== =========== ========== ===========
Earnings per common share* $ 0.73 $ 0.61 19.7 $ 2.76 $ 2.15 28.4
Earnings per common share-diluted* 0.72 0.61 18.0 2.73 2.13 28.2
Average common shares outstanding* 80,577 84,411 82,039 84,908
Average common shares
outstanding-diluted* 81,392 85,058 82,746 85,843
End of period common shares
outstanding* 80,537 84,036
</TABLE>
<TABLE>
<CAPTION>
Average for Average for
Three Months Twelve Months
Ended December 31 Ended December 31
-------------------------- % ------------------------------ %
BALANCE SHEET SUMMARY 1997 1996 Change 1997 1996 Change
------------------------------------------ -----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Loans net of unearned income $12,168,038 $11,802,480 3.1 $12,059,249 $11,694,849 3.1
Total investment securities** 4,476,940 5,010,649 (10.7) 4,564,575 5,012,818 (8.9)
Earning assets** 16,738,128 16,873,483 (0.8) 16,696,385 16,815,019 (0.7)
Total assets 18,145,256 18,050,545 0.5 18,042,143 17,989,621 0.3
Noninterest-bearing deposits 1,867,575 1,804,129 3.5 1,820,387 1,767,444 3.0
Interest-bearing deposits 10,858,650 10,681,839 1.7 10,743,810 11,158,899 (3.7)
Total deposits 12,726,225 12,485,968 1.9 12,564,197 12,926,343 (2.8)
Shareholders' equity 1,362,506 1,388,628 (1.9) 1,369,777 1,380,532 (0.8)
</TABLE>
<TABLE>
<CAPTION>
Ending
Balance
December 31
-------------------------- %
BALANCE SHEET SUMMARY 1997 1996 Change
------------------------------------------
<S> <C> <C> <C>
Loans net of unearned income $12,237,668 $12,080,246 1.3
Total investment securities** 4,737,074 4,896,954 (3.3)
Earning assets** 17,075,968 17,056,661 0.1
Total assets 18,622,256 18,407,264 1.2
Noninterest-bearing deposits 2,062,906 1,951,543 5.7
Interest-bearing deposits 10,882,291 10,516,056 3.5
Total deposits 12,945,197 12,467,599 3.8
Shareholders' equity 1,385,245 1,395,829 (0.8)
</TABLE>
<TABLE>
<CAPTION>
1997 1996
------------------------------------------------- ---------
SELECTED RATIOS 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C>
Average shareholders' equity to
average total assets 7.51 % 7.57 % 7.57 % 7.73 % 7.69 %
End of period shareholders' equity to
end of period total assets 7.44 7.55 7.53 7.64 7.58
Tier 1 capital to risk-adjusted assets 7.13 *** 7.31 7.58 7.82 7.87
Total capital to risk-adjusted assets 10.34 *** 10.68 11.02 11.47 11.54
Loans net of unearned income to total
deposits 94.53 95.99 96.07 97.06 96.89
Net income (annualized) to average
total assets 1.29 1.26 1.24 1.23 1.14
Net income (annualized) to average
shareholders' equity 17.15 16.64 16.32 15.94 14.79
Book value per common share* 17.20 16.89 16.85 16.55 16.61
Tangible book value per common share* 14.07 13.72 13.68 13.38 13.42
Efficiency ratio 55.72 55.39 55.35 55.24 56.47
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------
1996 YTD
SELECTED RATIOS WITHOUT ---------- ----------
SAIF ASSESSMENT 3rd Qtr 1996
---------- ----------
<S> <C> <C>
Earnings per common share * $0.59 $2.33
Net income (annualized) to
average total assets 1.10 % 1.10 %
Net income (annualized) to
average shareholders' equity 14.42 % 14.26 %
Efficiency ratio 56.21 % 56.86 %
- ---------------------------------------------------------
</TABLE>
* Restated for three-for-two stock split in April 1997
** Excludes adjustment for market valuation on available-for-sale
securities
*** Estimated
8
<PAGE>
AMSOUTH BANCORPORATION
(Unaudited)
(Dollars in thousands)
<TABLE>
<CAPTION>
December 31, December 31,
1997 1996 % Change
----------- ------------ ----------
<S> <C> <C> <C>
LOANS NET OF UNEARNED INCOME
Commercial $ 3,737,550 $ 3,606,866 3.6
Commercial real estate:
Commercial real estate mortgages 1,711,093 1,651,668 3.6
Real estate construction 867,255 693,417 25.1
----------- ------------
Total commercial real estate 2,578,348 2,345,085 9.9
Consumer:
Residential first mortgages 2,603,474 2,971,949 (12.4)
Other residential mortgages 1,114,133 882,208 26.3
Dealer indirect 1,242,771 1,218,331 2.0
Revolving credit 454,889 491,958 (7.5)
Other consumer 506,503 563,849 (10.2)
----------- ------------
Total consumer 5,921,770 6,128,295 (3.4)
----------- ------------
Total loans net of unearned income $12,237,668 $12,080,246 1.3
=========== ============
</TABLE>
<TABLE>
<CAPTION>
1997 1996
------------------------------------------ -------
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NONPERFORMING ASSETS
Nonaccrual loans $71,358 $67,384 $73,044 $79,469 $78,048
Foreclosed properties 11,433 11,518 13,546 12,890 14,445
Repossessions 632 1,008 2,272 2,030 1,822
------- ------- ------- ------- -------
Total nonperforming assets $83,423 $79,910 $88,862 $94,389 $94,315
======= ======= ======= ======= =======
Nonperforming assets to loans net of unearned income,
foreclosed properties and repossessions 0.68% 0.66% 0.73% 0.78% 0.78%
Accruing loans 90 days past due $37,797 $33,466 $42,918 $32,535 $36,382
======= ======= ======= ======= =======
1997 1996
------------------------------------------- --------
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
-------- -------- -------- -------- --------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $179,126 $179,081 $179,049 $179,049 $179,350
Loans charged off (22,864) (24,280) (24,209) (22,632) (23,009)
Recoveries of loans previously charged off 7,155 8,223 6,441 4,915 4,211
-------- -------- -------- -------- --------
Net charge-offs (15,709) (16,057) (17,768) (17,717) (18,798)
Addition to allowance charged to expense 15,780 16,102 17,800 17,717 18,497
-------- -------- -------- -------- --------
Balance at end of period $179,197 $179,126 $179,081 $179,049 $179,049
======== ======== ======== ======== ========
Allowance for loan losses to loans net of unearned income 1.46% 1.48% 1.48% 1.49% 1.48%
Net charge-offs to average loans net of unearned income* 0.51% 0.53% 0.59% 0.60% 0.63%
Allowance for loan losses to nonperforming loans 251.12% 265.83% 245.17% 225.31% 229.41%
Allowance for loan losses to nonperforming assets 214.81% 224.16% 201.53% 189.69% 189.84%
- ------------------
* Annualized
</TABLE>
9
<PAGE>
AMSOUTH BANCORPORATION
QUARTERLY CONSOLIDATED AVERAGE DAILY BALANCES,
REVENUE AND EXPENSE SUMMARY, YIELDS AND RATES
(Unaudited)
<TABLE>
<CAPTION>
FOURTH QUARTER ENDED DECEMBER 31
1997 1996
--------------------------------------------------------------------
(Taxable Equivalent Basis - Average Revenue/ Yield/ Average Revenue/ Yield/
Dollars in Thousands) Balance Expense Rate Balance Expense Rate
----------- --------- ------- ----------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Earning assets:
Loans net of unearned income $12,168,038 $268,361 8.75% $11,802,480 $254,051 8.56%
Available-for-sale securities 2,202,087 40,488 7.29 2,324,417 42,081 7.20
Held-to-maturity securities:
Taxable 2,151,095 36,486 6.73 2,502,510 42,208 6.71
Tax-free 123,758 3,376 10.82 183,722 5,590 12.10
----------- --------- ----------- --------
Total held-to-maturity securities 2,274,853 39,862 6.95 2,686,232 47,798 7.08
----------- --------- ----------- --------
Total investment securities 4,476,940 80,350 7.12 5,010,649 89,879 7.14
Other earning assets 93,150 987 4.20 60,354 742 4.89
----------- --------- ----------- --------
Total earning assets 16,738,128 349,698 8.29 16,873,483 344,672 8.13
Cash and other assets 1,541,105 1,321,914
Allowance for loan losses (179,095) (178,725)
Market valuation on AFS securities 45,118 33,873
----------- -----------
$18,145,256 $18,050,545
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits $ 3,871,949 32,925 3.37 $ 3,550,046 27,480 3.08
Savings deposits 1,029,337 7,455 2.87 1,059,981 7,557 2.84
Time deposits 5,050,259 70,969 5.58 5,294,505 72,724 5.46
Certificates of deposit of $100,000 or more 907,105 12,978 5.68 777,307 11,066 5.66
Federal funds purchased and securities
sold under agreements to repurchase 1,497,408 20,083 5.32 1,771,740 23,146 5.20
Other interest-bearing liabilities 2,284,497 33,784 5.87 2,170,005 31,138 5.71
----------- --------- ----------- --------
Total interest-bearing liabilities 14,640,555 178,194 4.83 14,623,584 173,111 4.71
--------- ------- -------- -------
Incremental interest spread 3.46% 3.42%
======= =======
Noninterest-bearing demand deposits 1,867,575 1,804,129
Other liabilities 274,620 234,204
Shareholders' equity 1,362,506 1,388,628
----------- -----------
$18,145,256 $18,050,545
=========== ===========
Net interest income/margin
on a taxable equivalent basis 171,504 4.07% 171,561 4.04%
======= =======
Taxable equivalent adjustment:
Loans 364 474
Securities 1,118 1,621
-------- --------
Total taxable equivalent adjustment 1,482 2,095
-------- --------
Net interest income $170,022 $169,466
======== ========
</TABLE>
10
<PAGE>
AMSOUTH BANCORPORATION
YTD CONSOLIDATED AVERAGE DAILY BALANCES,
REVENUE AND EXPENSE SUMMARY, YIELDS AND RATES
(Unaudited)
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED DECEMBER 31
1997 1996
---------------------------------------------------------------------------
(Taxable Equivalent Basis - Average Revenue/ Yield/ Average Revenue/ Yield/
Dollars in Thousands) Balance Expense Rate Balance Expense Rate
---------------------------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Earning assets:
Loans net of unearned income $12,059,249 $1,053,837 8.74 % $11,694,849 $1,006,658 8.61%
Available-for-sale securities 2,113,217 155,600 7.36 2,391,748 164,473 6.88
Held-to-maturity securities:
Taxable 2,305,336 156,138 6.77 2,422,940 163,159 6.73
Tax-free 146,022 15,989 10.95 198,130 22,204 11.21
----------- ---------- ----------- ----------
Total held-to-maturity securities 2,451,358 172,127 7.02 2,621,070 185,363 7.07
----------- ---------- ----------- ----------
Total investment securities 4,564,575 327,727 7.18 5,012,818 349,836 6.98
Other earning assets 72,561 3,265 4.50 107,352 6,610 6.16
----------- ---------- ----------- ----------
Total earning assets 16,696,385 1,384,829 8.29 16,815,019 1,363,104 8.11
Cash and other assets 1,490,195 1,327,974
Allowance for loan losses (179,656) (178,592)
Market valuation on AFS securities 35,219 25,220
----------- -----------
$18,042,143 $17,989,621
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits $ 3,727,911 123,586 3.32 $ 3,670,068 115,192 3.14
Savings deposits 1,045,121 29,928 2.86 1,036,240 28,432 2.74
Time deposits 5,109,045 281,838 5.52 5,593,123 318,410 5.69
Certificates of deposit of $100,000 or more 861,733 48,735 5.66 859,468 49,311 5.74
Federal funds purchased and securities
sold under agreements to repurchase 1,478,394 78,461 5.31 1,771,305 91,790 5.18
Other interest-bearing liabilities 2,390,758 138,963 5.81 1,689,575 98,307 5.82
----------- ---------- ----------- ----------
Total interest-bearing liabilities 14,612,962 701,511 4.80 14,619,779 701,442 4.80
---------- ----- ---------- -----
Incremental interest spread 3.49 % 3.31%
===== =====
Noninterest-bearing demand deposits 1,820,387 1,767,444
Other liabilities 239,017 221,866
Shareholders' equity 1,369,777 1,380,532
----------- -----------
$18,042,143 $17,989,621
=========== ===========
Net interest income/margin
on a taxable equivalent basis 683,318 4.09 % 661,662 3.93%
===== =====
Taxable equivalent adjustment:
Loans 1,712 2,178
Securities 5,329 7,103
---------- ----------
Total taxable equivalent adjustment 7,041 9,281
---------- ----------
Net interest income $ 676,277 $ 652,381
========== ==========
</TABLE>
11
<PAGE>
AMSOUTH BANCORPORATION
(Unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
Three Months Twelve Months
Ended December 31 Ended December 31
--------------------- % -------------------- %
1997 1996 Change 1997 1996 Change
-------- -------- ------ -------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
NONINTEREST REVENUES
Trust income $ 16,563 $ 14,889 11.2 $ 62,094 $ 57,354 8.3
Service charges on deposit accounts 25,233 23,939 5.4 98,546 94,765 4.0
Credit card income 3,992 4,192 (4.8) 15,063 14,915 1.0
Consumer investment services income 5,950 4,331 37.4 23,500 16,944 38.7
Mortgage income 1,809 678 166.8 6,583 3,087 113.2
Interchange income 3,454 2,674 29.2 12,155 8,982 35.3
Letters of credit income 2,003 2,093 (4.3) 7,983 7,933 0.6
Portfolio income 2,113 2,668 (20.8) 8,742 9,253 (5.5)
Other operating revenues 9,832 5,213 88.6 31,338 22,041 42.2
-------- -------- -------- --------
Total $ 70,949 $ 60,677 16.9 $266,004 $235,274 13.1
======== ======== ======== ========
NONINTEREST EXPENSES
Salaries and employee benefits $ 64,638 $ 58,801 9.9 $249,655 $232,076 7.6
Net occupancy expense 14,077 14,009 0.5 55,791 54,211 2.9
Equipment expense 15,150 15,787 (4.0) 57,033 55,044 3.6
Marketing expense 4,455 3,368 32.3 18,055 16,755 7.8
Postage and supplies expense 5,336 5,607 (4.8) 22,199 23,072 (3.8)
Communications expense 5,396 4,775 13.0 20,665 16,466 25.5
Professional fees 4,339 4,331 0.2 12,459 12,580 (1.0)
FDIC premiums 410 (61) 772.1 2,625 7,814 (66.4)
Amortization expense 4,672 4,555 2.6 18,561 17,628 5.3
Other operating expenses 16,628 19,978 (16.8) 69,149 74,390 (7.0)
-------- -------- -------- --------
Total $135,101 $131,150 3.0 $526,192 $510,036 3.2
======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
INTANGIBLE ASSETS Decemer 31, December 31,
1997 1996
------------ ------------
<S> <C> <C>
Goodwill $250,922 $267,157
Core deposit intangibles 831 1,152
</TABLE>
12
