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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
Date of Report
January 9, 1996
SOUTHTRUST CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
0-3613 63-0574085
(Commission File No.) (IRS Employer Identification No.)
420 NORTH 20TH STREET
BIRMINGHAM, ALABAMA 35203
(Address of principal (Zip Code)
executive offices)
(205) 254-5509
(Registrant's telephone number including area code)
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ITEM 5. OTHER EVENTS
SouthTrust Corporation ("the Company") has certain deposit liabilities obtained
as a result of various acquisitions of Thrift institutions and Thrift deposit
liabilities which are insured by the Savings Association Insurance Fund,
("SAIF"). The SAIF fund is currently undercapitalized, and legislation is
pending in Congress calling for a one-time assessment on such deposits in order
to adequately capitalize the fund.
During the third quarter of 1995, the Company recorded a $6.5 million charge to
earnings for the estimated SAIF assessment, which represented 35 basis on the
Company's SAIF insured deposits. Based on a review of the proposed legislation
and conversations with members of Congress, the Company believes that the 35
basis point level represents the lower end of the range that is likely to be
assessed to resolve the undercapitalization of the SAIF fund. The Company
viewed the proposed assessment as a contingent liability, and accounted for
this contingency in accordance with Statement of Financial Accounting Standards
("SFAS") No. 5, "Accounting for Contingencies".
Subsequent to the Company's filing of the Quarterly Report on Form 10-Q for the
period ended September 30, 1995, the Emerging Issues Task Force, ("EITF"), of
the Financial Accounting Standards Board reached a consensus opinion on the
accounting treatment for the proposed SAIF assessment, which concludes that the
charge for the assessment should be recorded as a charge to operating income in
the period that legislation is enacted imposing the assessment.
Accordingly, the Company's fourth quarter 1995 operating income will include a
credit of $6.5 million resulting from the reversal of the previously accrued
charge for the proposed SAIF assessment.
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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, thereunto duly authorized.
SOUTHTRUST CORPORATION
By: /s/ WILLIAM L. PRATER
----------------------------
William L. Prater
Senior Vice President
Date: January 9, 1996
