|
Allocation of the Allowance for Loan
Losses Table 17
 |
 |
|
|
|
Dec. 31, 2000
|
Dec. 31, 1999
|
Dec. 31, 1998
|
Dec. 31, 1997
|
Dec. 31, 1996
|
|
|
|
|
|
|
Percentage of
|
|
Percentage of
|
|
Percentage of
|
|
Percentage of
|
|
Percentage of
|
|
|
|
|
Loans in Each
|
|
Loans in Each
|
|
Loans in Each
|
|
Loans in Each
|
|
Loans in Each
|
|
|
|
Allowance
|
Category to
|
Allowance
|
Category to
|
Allowance
|
Category to
|
Allowance
|
Category to
|
Allowance
|
Category to
|
| (Dollars
in thousands) |
Allocation
|
Total Loans
|
Allocation
|
Total Loans
|
Allocation
|
Total Loans
|
Allocation
|
Total Loans
|
Allocation
|
Total Loans
|
|
| Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
and industrial |
$
144,828 |
29.70% |
$
110,059 |
30.30% |
$
109,988 |
32.50% |
$
83,192 |
31.40% |
$
78,846 |
30.30% |
|
Commercial
secured by real estate |
23,018 |
7.20 |
24,924 |
7.80 |
21,062 |
7.50 |
26,706 |
10.20 |
28,908 |
10.40 |
|
|
|
|
|
|
Total
commercial |
167,846 |
36.90 |
134,983 |
38.10 |
131,050 |
40.00 |
109,898 |
41.60 |
107,754 |
40.70 |
|
|
|
|
| Commercial
real estate: |
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate mortgages |
31,238 |
9.50 |
29,999 |
8.70 |
23,136 |
9.10 |
15,791 |
6.00 |
17,635 |
5.80 |
|
Real
estate construction |
36,760 |
10.20 |
42,067 |
9.20 |
25,606 |
7.30 |
19,754 |
5.40 |
16,694 |
4.70 |
|
|
|
|
|
|
Total
commercial real estate |
67,998 |
19.70 |
72,066 |
17.90 |
48,742 |
16.40 |
35,545 |
11.40 |
34,329 |
10.50 |
|
|
|
|
| Consumer: |
|
|
|
|
|
|
|
|
|
|
|
Residential
first mortgages |
2,445 |
5.50 |
3,010 |
6.50 |
7,179 |
9.40 |
13,641 |
14.30 |
14,323 |
16.20 |
|
Other
residential mortgages |
14,843 |
18.90 |
11,113 |
14.70 |
5,311 |
13.70 |
8,364 |
13.80 |
7,934 |
13.50 |
|
Dealer
indirect |
32,291 |
12.10 |
44,916 |
15.80 |
29,912 |
11.90 |
24,249 |
7.70 |
22,865 |
7.90 |
|
Revolving
credit |
24,885 |
2.10 |
18,879 |
1.90 |
23,482 |
2.00 |
43,843 |
2.80 |
53,917 |
3.00 |
|
Other
consumer |
12,761 |
4.80 |
15,344 |
5.10 |
21,868 |
6.60 |
25,790 |
8.40 |
26,526 |
8.20 |
|
|
|
|
|
|
Total
consumer |
87,225 |
43.40 |
93,262 |
44.00 |
87,752 |
43.60 |
115,887 |
47.00 |
125,565 |
48.80 |
|
|
|
|
| Unallocated |
57,365 |
– |
54,368 |
– |
102,521 |
– |
104,721 |
– |
102,629 |
– |
|
|
|
|
|
|
|
$
380,434 |
100.00% |
$
354,679 |
100.00% |
$
370,065 |
100.00% |
$
366,051 |
100.00% |
$
370,277 |
100.00% |
|
|
|
|
| Allowance for Loan Losses AmSouth
maintains an allowance for loan losses which it believes is adequate to
absorb losses inherent in the loan portfolio. A formal review is prepared
quarterly to assess the risk in the portfolio and to determine the adequacy
of the allowance for loan losses. Elements of the review include analysis
of historical performance, the level of nonperforming and adversely rated
loans, specific analysis of certain problem loans, loan activity since
the previous quarter, reports prepared by the Credit Review Department,
consideration of current economic conditions, and other pertinent information.
The level of allowance to net loans outstanding will vary depending on
the overall results of this quarterly review. The review is presented
to and approved by senior management and subsequently reviewed by the
Audit and Community Responsibility Committee of the Board of Directors. |
For purposes of the quarterly review, the consumer portfolios are treated
as homogenous pools. Specific consumer pools include: direct, bankcard,
other revolving, indirect, residential first mortgages, and home equity
lending. In accordance with regulatory guidelines, the allowance for loan
losses is allocated to the consumer pools based on historical net charge-off
rates adjusted for any current changes in these trends. The commercial,
commercial real estate and business banking portfolios are evaluated separately.
Within this group, every nonperforming loan in excess of $500,000 is reviewed
by AmSouth’s Special Assets Department for a specific allocation.
For all other loans in the commercial portfolio, the allowance is allocated
based on a combination of historical loss rates, adjusted for those elements
discussed in the preceding paragraph, and regulatory guidelines. In determining
the level of allowance, AmSouth carefully reviews total credit relationship
exposures. |
