AmSouth’s policy requires all securities purchased for the securities portfolio, except state, county and local municipal obligations, to be rated investment grade or better. Securities backed by the U.S. Government and its agencies, both on a direct and indirect basis, represented approximately 76 percent of the portfolio at December 31, 2000. Approximately 95 percent of state, county and local municipal securities at year-end 2000 were rated either single A or above by the rating agencies or were escrowed in U.S. Treasury obligations.

Management anticipates that investment securities will remain relatively stable in 2001 from ending 2000 levels and will fluctuate mainly based on loan funding needs and liquidity levels.

AVAILABLE-FOR-SALE SECURITIES AND HELD-TO-MATURITY SECURITIES
RELATIVE CONTRACTUAL MATURITIES AND WEIGHTED AVERAGE YIELDS Table 6

				Due Within		Due After One but		Due After Five but		Due After
				One Year		Within Five Years		Within Ten Years		Ten Years
(Taxable equivalent basis - dollars in thousands)				Amount	Yield	Amount	Yield	Amount	Yield	Amount	Yield
Available-for-sale securities:
	U.S. Treasury and
		federal agency securities		$ 33,065	7.96%	$ 30,683	5.10%	$ 104,509	6.70%	$ 1,116,677	6.99%
	State, county and municipal obligations			5,585	6.92	15,679	6.86	26,319	7.61	18,259	7.77
		Other securities		73,913	5.67	52,045	0.00	8,074	6.81	73,151	7.08
				$ 112,563	6.40%	$ 98,407	2.68%	$ 138,902	6.88%	$ 1,208,087	7.00%
Taxable equivalent
	adjustment for calculation of yield			$ 126		$ 358		$ 664		$ 363
Held-to-maturity securities:
	U.S. Treasury and
		federal agency securities		$ 36,151	6.93%	$ 97,623	6.17%	$ 876,108	6.72%	$ 3,787,982	6.57%
	State, county and municipal obligations			5,166	10.00	15,052	8.72	36,881	7.03	329,734	6.53
		Other securities		925	7.03	15,272	6.57	17,539	7.13	1,432,006	6.82
				$ 42,242	7.31%	$ 127,947	6.51%	$ 930,528	6.74%	$ 5,549,722	6.63%
Taxable equivalent
	adjustment for calculation of yield			$ 188		$ 455		$ 744		$ 5,825

Notes:

1. The weighted average yields were computed by dividing the taxable equivalent interest income by the amortized cost of the appropriate securities. The taxable equivalent interest income has been computed based on the statutory federal income tax rate and does not give effect to the disallowance of interest expense, for federal income tax purposes, related to certain tax-free assets.
2. The amount of available-for-sale securities indicated as maturing after five but within ten years includes $67 million of mortgage-backed securities, and those indicated as maturing after ten years includes $1.2 billion of mortgage-backed securities. Although these securities have stated long-term final maturities, according to mortgage industry standards, the estimated weighted average remaining life of these securities held in AmSouth’s investment portfolio is approximately 3.8 years.
3. The amount of held-to-maturity securities indicated as maturing after five but within ten years includes $460 million of mortgage-backed securities, and those indicated as maturing after ten years includes $5.1 billion of mortgage-backed securities. Although these securities have stated long-term final maturities, according to mortgage industry standards, the estimated weighted average remaining life of these securities held in AmSouth’s investment portfolio is approximately 6.1 years.
4. Federal Reserve Bank stock, Federal Home Loan Bank stock, and equity stock of other corporations held by AmSouth are not included in the above table.