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| AmSouth
Bancorporation and Subsidiaries Notes to Consolidated Financial Statements |
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| Tier 1 capital consists principally of shareholders’ equity, excluding unrealized gains and losses on securities available-for-sale, less goodwill and certain other intangibles. Total capital consists of Tier 1 capital plus certain debt instruments and the reserve for credit losses, subject to limitation. The regulations also define well capitalized levels of Tier 1 capital, total capital and leverage as ratios of 6 percent, 10 percent and 5 percent, respectively, for banking entities. | AmSouth’s banking subsidiary had Tier 1 capital, total capital and leverage ratios above the well-capitalized levels at December 31, 2000 and 1999. Management believes that no changes in conditions or events have occurred since December 31, 2000, which would result in changes that would cause AmSouth Bank to fall below the well-capitalized level. The actual capital ratios and amounts for AmSouth and AmSouth Bank are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Certain restrictions exist regarding the ability of banking subsidiaries to transfer funds to the parent company as loans, advances or dividends. The subsidiary bank can initiate dividend payments in 2001, without prior regulatory approval, of an amount equal to its net profits for 2001, as defined by statute. | Substantially all of the parent company’s retained earnings at December 31, 2000 and 1999, represented undistributed earnings of its banking subsidiary. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOTE 19–PENSION
AND OTHER EMPLOYEE BENEFIT PLANS |
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| AmSouth sponsors noncontributory defined benefit pension plans, covering substantially all regular full-time employees. Benefits are generally based on years of service and the employee’s compensation during the last 120 months of employment or average monthly earnings of the participant for the 60 consecutive months that produce the highest average earnings. Actuarially determined pension costs are charged to current operations using the projected unit credit method. |
AmSouth’s funding policy is to contribute an amount that meets the minimum funding requirements set forth in the Employee Retirement Income Security Act of 1974, plus such additional amounts as the corporation determines to be appropriate. |
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