2000 Annual Report Contents... Front Cover Introduction Letter to Shareholders Strategic Overview 2000 Financial Information Management's Discussion & Analysis Management's Statement on Reporting Report of Independent Auditors Consolidated Statement of Condition Consolidated Statement of Earnings Consolidated Statement of Shareholder's Equity Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Board of Directors Management Committee Emeritus Board of Directors Corporate Information Back Cover

AmSouth Bancorporation and Subsidiaries Notes to Consolidated Financial Statements
NOTE 7–LOANS
The major categories of loans net of unearned income at December 31 are summarized as follows:
2000  1999  (Dollars in thousands) Amount Percent Amount Percent Commercial: Commercial and industrial $ 7,312,845  29.7% $ 7,967,190  30.3% Commercial loans secured by real estate 1,765,092  7.2  2,036,120  7.8  Total commercial 9,077,937  36.9  10,003,310  38.1  Commercial real estate: Commercial real estate mortgages 2,322,952  9.5  2,295,157  8.7  Real estate construction 2,517,172  10.2  2,416,849  9.2  Total commercial real estate 4,840,124  19.7  4,712,006  17.9  Consumer: Residential first mortgages 1,358,060  5.5  1,701,435  6.5  Other residential mortgages 4,655,895  18.9  3,873,599  14.7  Dealer indirect 2,989,910  12.1  4,148,747  15.8  Revolving credit 505,234  2.1  489,238  1.9  Other consumer 1,189,275  4.8  1,338,424  5.1  Total consumer 10,698,374  43.4  11,551,443  44.0  $ 24,616,435  100.0% $ 26,266,759  100.0%
Included in commercial and industrial loans was $1,085,689,000 and $710,898,000 of rentals receivable on leveraged leases, $367,715,000 and $271,719,000 of estimated residuals on leveraged leases, net of $452,110,000 and $260,593,000 of unearned income on leveraged leases at December 31, 2000 and 1999, respectively. Pretax income from leveraged leases for the years ending December 31, 2000, 1999 and 1998 was $40,373,000, $54,616,000 and $14,287,000, respectively. The tax effect of pretax income was a benefit of $21,131,000, an expense of $20,758,000, and an expense of $5,538,000 for the years ending December 31, 2000, 1999 and 1998, respectively. During 2000, AmSouth transferred the responsibility for the management of certain operations to a foreign subsidiary, thereby lowering the effective tax rate on certain existing leveraged lease investments.	In accordance with Statement of Financial Accounting Standards (SFAS) No. 13, “Accounting for Leases”, the net income from the leases was recalculated from their inception based on the new effective tax rate increasing net income for the year by $7.0 million. This adjustment included a deferral of previously recognized pretax leveraged lease earnings to later periods, which reduced current pretax net interest income by $24.5 million. Total pretax income over the terms of the leveraged leases will be unaffected by the change in the effective tax rate. The reduction in net interest income was more than offset by a $31.5 million reduction in deferred income taxes. AmSouth intends to permanently reinvest earnings of this foreign subsidiary and, therefore, in accordance with SFAS 109, “Accounting for Income Taxes”, deferred taxes of $31.5 million have not been provided as of December 31, 2000.