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AmSouth
Bancorporation and Subsidiaries
Notes to Consolidated Financial Statements |
| In September 2000, Statement of Financial Accounting Standards No. 140,
“Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities” (Statement 140), was issued by the FASB. Statement
140 replaces Statement 125, issued in June 1996. Statement 140 revises
the standards for accounting for securitizations and other transfers of
financial assets and collateral and requires certain disclosures, but
carries over most of Statement 125’s provisions without reconsideration. |
Statement 140 is effective for transfers occurring after March 31, 2001.
However, the expanded disclosures about securitizations and collateral
are effective for fiscal years ending after December 15, 2000. The adoption
of Statement 140 will not have a material impact on AmSouth’s financial
condition or results of operations. See Note 23 for the disclosure required
by Statement 140. |
NOTE
2–MERGERS AND ACQUISITIONS
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| On October 1, 1999, AmSouth issued 214.5 million
common shares to acquire First American. AmSouth exchanged 1.871 shares
of its common stock for each share of First American common stock. First
American was a $22.2 billion asset financial service holding company headquartered
in Nashville, Tennessee, with banking offices in Tennessee, Mississippi,
Louisiana, Arkansas, Virginia, and Kentucky. |
The transaction was accounted for as a pooling-of-interests,
and, accordingly, the consolidated financial statements have been restated
to include the results of First American for all periods presented. In
addition, during 1998 and prior to its merger with AmSouth, the former
First American completed acquisitions, all of which were accounted for
as poolings-of-interests. The information related to these mergers is
presented in the following table (in millions): |
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Common |
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Shares |
| Acquiree |
Location |
Date |
Assets |
Issued |
|
| Victory Bancshares, Inc. |
TN |
Mar. 1998 |
$ 131 |
 |
1.6 |
|
| Deposit Guaranty Corporation |
MS |
May 1998 |
7,151 |
|
91.2 |
|
| Peoples Bank (Peoples) |
TN |
Oct. 1998 |
142 |
|
1.7 |
|
| The Middle Tennessee Bank (MTB) |
TN |
Oct. 1998 |
225 |
|
2.2 |
|
| CSB Financial Corporation (CSB) |
TN |
Oct. 1998 |
148 |
|
1.7 |
|
| Pioneer Bancshares, Inc. (Pioneer) |
TN |
Nov. 1998 |
990 |
|
11.5 |
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| For the acquisitions of Deposit Guaranty Corporation
(Deposit Guaranty) and Pioneer, accounted for as poolings-of-interests,
the consolidated financial statements were restated to include the results
of both companies for all periods presented. For all other acquisitions
accounted for as poolings-of-interests in the above table, the results
of operations have been included in the consolidated financial statements
from the date of the acquisition as preacquisition amounts were not material.
Accordingly, prior period financial statements were not restated since
the changes to prior periods were immaterial. |
On December 16, 1998, AmSouth through its
subsidiary IFC Holdings, Inc. (IFC), purchased the assets of the Specialized
Investment Division of Financial Service Corporation, a subsidiary of
Sun America, Inc., which provided investment products to customers of
community banks and credit unions that did not have their own broker/dealer
capabilities. The $9 million purchase price was primarily for goodwill
and other intangible assets. On September 29, 2000, AmSouth sold IFC. |
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