Amsouth Bank 2000 Annual Report

2000 Annual Report

AmSouth Bancorporation and Subsidiaries
Notes to Consolidated Financial Statements

The notional amounts of interest rate contracts used by AmSouth to hedge statement of condition items at December 31 are shown below:


(In millions)	2000	1999

Loans	$ 925	$ 1,515
Securities	25	110
Deposits	1,092	918
Long-term debt	625	775

	$ 2,667	$ 3,318

The table below presents the deferred gains and losses related to terminated interest rate swaps at December 31, 2000 and 1999.

These deferred gains and losses are recognized as basis adjustments to existing assets and liabilities.


(In thousands)		2000		1999

Deferred gains		$ 11,850		$ 21,263
Deferred losses		(402)		(4,365)

	Total net deferred gains	$ 11,448	(1)	$ 16,898	(2)



(1) $6.3 million of net deferred gains to be recognized during 2001 and $5.1 million to be recognized during 2002 through 2007.
(2) $5.5 million of net deferred gains recognized during 2000 and $11.4 million to be recognized during 2001 through 2007.

NOTE 14–COMMITMENTS AND CONTINGENCIES

AmSouth and its subsidiaries lease land, premises and equipment under cancelable and noncancelable leases, some of which contain renewal options under various terms. The leased properties are used primarily for banking purposes.

The total rental expense on operating leases for the years ended December 31, 2000, 1999 and 1998 was $68,574,000, $72,984,000 and $73,493,000, respectively.

Rental income on bank premises for 2000, 1999 and 1998 was $7,089,000, $14,102,000 and $14,424,000, respectively. There were no material contingent rental expenses for 2000, 1999 or 1998.

Future minimum payments, in thousands, by year and in the aggregate, for noncancelable operating leases with initial or remaining terms of one year or more consisted of the following at December 31, 2000:


2001			$ 46,524
2002			39,974
2003			35,813
2004			29,539
2005			20,743
Thereafter			132,320

			$ 304,913