Overview
General This section of the annual report provides a narrative discussion and analysis of AmSouth’s financial condition and results of operations for the previous three years. All tables, graphs and financial statements included in this report should be considered an integral part of this analysis.

AmSouth’s discussion and analysis will be based on reported financial information; however, certain information will also be provided which excludes the impact of certain large or unusual amounts. This additional information is provided to either enhance comparability of financial information between years or to provide trend information which AmSouth believes to be more indicative of continuing operations. Financial information that excludes items will either specifically indicate the items being excluded or will state that the amount shown excludes merger-related and other charges. “Other charges” for the year ended December 31, 2000, included the following losses that occurred as a part of AmSouth’s third-quarter financial restructuring: dealer securitization losses of $18.5 million; $21.7 million of losses from the sale of healthcare-related loans included in assets held for accelerated disposition (AHAD); losses of $105.6 million on the sale of $4.0 billion of investment securities; $88.3 million of provision charges related to AmSouth’s syndicated commercial loan portfolio; and $24.8 million of mortgage conduit asset writedowns. Finally, AmSouth incurred $4.2 million of after-tax losses associated with the sales of IFC Holdings, Inc. (IFC), a third-party marketer of investment and insurance products through other financial institutions, and the Arkansas branch network.

1999 results do not include pretax charges of $7.6 million to conform First American Corporation’s (First American) accounting policies to AmSouth’s policies; an $8.0 million impairment loss on a First American portfolio investment; and $71.0 million in loan impairment charges associated with certain healthcare-related loans transferred to AHAD.

The following discussion contains forward-looking statements that involve inherent risks and uncertainties. Actual results may differ materially from those contained in these forward-looking statements. For additional information regarding forward-looking statements, see “Forward-Looking Statements” on page 59 of this annual report.

AmSouth is a regional bank holding company headquartered in Birmingham, Alabama, with $38.9 billion in assets, approximately 600 branch banking offices and 1,250 automated teller machines (ATM). AmSouth operates in Tennessee, Alabama, Florida, Mississippi, Louisiana, and Georgia. AmSouth is a leader among regional banks in the Southeast in several key business areas, including consumer and commercial banking, small business banking, mortgage lending, equipment leasing, annuity and mutual fund sales, and other wealth management services. AmSouth also offers an extensive line of banking products and services at the Web site, www.amsouth.com.