ASO Airshares EU Carbon

AmSouth Bancorporation (NYSE: ASO) today reported earnings for the third quarter ended Sept. 30, 2006, of $.54 per diluted share, compared to $.51 per diluted share reported for the third quarter of 2005. Net income for the third quarter of 2006 was a record $187.7 million and resulted in a return on average equity of 20.3 percent, a return on average assets of 1.38 percent, and an efficiency ratio of 51.8 percent. �AmSouth continued to deliver solid results despite a very difficult interest rate environment,� said Dowd Ritter, AmSouth�s chairman, president and chief executive officer. �We are looking forward to completing our merger with Regions Financial Corp. in November, and we believe it will create a formidable franchise with stronger and more diverse sources of revenue.� Net interest income in the third quarter was $388.8 million, an increase of 3.7 percent compared with the third quarter of 2005, as loans grew 11.7 percent. Commercial loan growth was particularly strong, increasing 17.5 percent compared with the third quarter of 2005, led by a 33.8 percent increase in commercial real estate lending compared with the prior year. Residential mortgages increased 9.4 percent compared with the third quarter of 2005. Despite the solid loan growth, the net interest margin compressed to 3.19 percent as a result of the continued difficult interest rate environment and a shift in consumer preference toward higher cost time deposits. Although average total deposits increased 5.7 percent to $37.4 billion compared with the third quarter of 2005, low cost deposits declined 1.3 percent to $23.9 billion on the same basis. Noninterest revenue, which includes earnings from service charges, trust, investment services, interchange, and other sources of fee income, was $248.4 million for the quarter, compared with $259.6 million for the same quarter in 2005, which included a gain of $44.0 million from the sale of the company�s mutual fund management business. Noninterest expenses in the third quarter were $335.7 million, essentially unchanged from the comparable quarter of last year. Credit quality remained strong, with net charge-offs of $15.9 million or 0.17 percent of average net loans in the third quarter, a decrease of 2 basis points compared with the third quarter of 2005. The provision for loan losses totaled $25.5 million for the third quarter, while the ratio of loan loss allowance to total loans was 0.97 percent at Sept. 30, 2006. Total nonperforming assets at Sept. 30, 2006, were $113.5 million, or 0.30 percent of loans net of unearned income, foreclosed properties and repossessions, compared to $98.1 million, or 0.29 percent for the quarter ended Sept. 30, 2005 and $109.4 million, or 0.29 percent, in the second quarter of this year. For supplemental financial information about the third quarter results, please refer to the Form 8-K filed by AmSouth with the Securities and Exchange Commission on Oct. 17, 2006, or visit the Investor Relations Resource Center on AmSouth's web site at www.amsouth.com. About AmSouth AmSouth is a regional bank holding company with $54 billion in assets, 700 branch banking offices and more than 1,200 ATMs. AmSouth operates in Florida, Tennessee, Alabama, Mississippi, Louisiana and Georgia. AmSouth is a leader among regional banks in the Southeast in several key business segments, including consumer and commercial banking, small business banking, mortgage lending, equipment leasing, and trust and investment management services. AmSouth also offers a complete line of banking products and services at its web site, www.amsouth.com. Forward Looking Statements Statements in this document that are not purely historical are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995), including any statements regarding descriptions of management�s plans, objectives or goals for future operations, products or services, and forecasts of its revenues, earnings or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. A number of factors � many of which are beyond AmSouth�s control � could cause actual conditions, events or results to differ materially from those described in the forward-looking statements. Such factors include, but are not limited to: the execution of AmSouth�s strategic initiatives; legislation and regulation; general economic conditions, especially in the Southeast; the performance of the stock and bond markets; changes in interest rates, yield curves and interest rate spread relationships; prepayment speeds within the loan and investment security portfolios; deposit flows; the cost of funds; cost of federal deposit insurance premiums; demand for loan products; demand for financial services; competition, including a continued consolidation in the financial services industry; changes in the quality or composition of AmSouth�s loan and investment portfolios including capital market inefficiencies that may affect the marketability and valuation of available-for-sale securities; changes in consumer spending and saving habits; technological changes; adverse changes in the financial performance and/or condition of AmSouth�s borrowers which could impact the repayment of such borrowers� loans; changes in accounting and tax principles, policies or guidelines and in tax laws; other economic, competitive, governmental and regulatory factors affecting AmSouth�s operations, products, services and prices; the effects of weather and natural disasters, such as hurricanes; unexpected judicial actions and developments; results of investigations, examinations, and reviews of regulatory and law enforcement authorities; the outcome of litigation, which is inherently uncertain and depends on the findings of judges and juries; the impact on AmSouth�s businesses, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts; and AmSouth�s success at managing the risks involved in the foregoing. Forward-looking statements speak only as of the date they are made. AmSouth does not undertake a duty to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands, except per share data) � � � � � � � � � � � � � � � � � � � � � Percent Change Versus Prior Year Percent Change Versus Prior Year EARNINGS SUMMARY Three Months Ended YTD 2006� � � 2005� 2006� 2005� � � � � � Sept. 30 � June 30 � March 31 � � Dec. 31 � Sept. 30 Sept. 30 � Sept. 30 Net interest income $ 388,754� $ 402,785� $ 397,720� $ 392,150� $ 374,733� 3.7% $ 1,189,259� $ 1,133,124� 5.0% Provision for loan and lease losses 25,500� � 24,000� � 27,300� � � 20,850� � 34,800� (26.7%) 76,800� � 73,100� 5.1% Net interest income after provision 363,254� 378,785� 370,420� 371,300� 339,933� 6.9% 1,112,459� 1,060,024� 4.9% Noninterest revenues 248,407� 231,381� 219,683� 216,944� 259,649� (4.3%) 699,471� 698,236� 0.2% Noninterest expenses 335,702� � 339,555� � 330,002� � � 320,559� � 336,905� (0.4%) 1,005,259� � 971,364� 3.5% Income before income taxes 275,959� 270,611� 260,101� 267,685� 262,677� 5.1% 806,671� 786,896� 2.5% Income taxes 88,303� � 85,930� � 79,110� � � 85,552� � 82,349� 7.2% 253,343� � 243,324� 4.1% Net income $ 187,656� � $ 184,681� � $ 180,991� � � $ 182,133� � $ 180,328� 4.1% $ 553,328� � $ 543,572� 1.8% � Earnings per common share - basic $ 0.55� $ 0.54� $ 0.52� $ 0.52� $ 0.52� 5.8% $ 1.61� $ 1.54� 4.5% Earnings per common share - diluted 0.54� 0.53� 0.52� 0.52� 0.51� 5.9% 1.58� 1.52� 3.9% Cash dividends declared per common share 0.26� 0.26� 0.26� 0.26� 0.25� 4.0% 0.78� 0.75� 4.0% Weighted-average common shares outstanding - basic 343,295� 344,647� 345,433� 347,201� 349,346� 344,451� 351,881� Weighted-average common shares outstanding - diluted 348,842� 349,647� 350,743� 351,811� 354,654� 349,737� 356,816� End of period common shares outstanding 343,543� 341,431� 346,590� 348,072� 348,562� 343,543� 348,562� � � � � � � � � � � � � � � � � � � � � � KEY PERFORMANCE RATIOS Three Months Ended YTD 2006� � � 2005� 2006� 2005� � � � � � Sept. 30 � June 30 � March 31 � � Dec. 31 � Sept. 30 � Sept. 30 � Sept. 30 � Average shareholders' equity to average total assets 6.78% 6.76% 6.79% 6.87% 7.06% 6.78% 7.04% End of period shareholders' equity to end of period total assets 7.05� 6.64� 6.84� 6.91� 7.00� 7.05� 7.00� Return on average assets (annualized) 1.38� 1.39� 1.39� 1.40� 1.41� 1.39� 1.44� Return on average shareholders' equity (annualized) 20.31� 20.59� 20.52� 20.36� 20.02� 20.47� 20.47� Net interest margin - taxable equivalent 3.19� 3.39� 3.42� 3.37� 3.31� 3.33� 3.38� Efficiency ratio 51.80� 52.65� 52.53� 51.71� 52.22� 52.32� 52.12� Loans net of unearned income to total deposits 101.09� 100.04� 98.97� 98.76� 96.23� 101.09� 96.23� Book value per common share $ 11.15� $ 10.48� $ 10.44� $ 10.44� $ 10.26� $ 11.15� $ 10.26� Tangible book value per common share 10.29� 9.62� 9.58� 9.59� 9.41� 10.29� 9.41� Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) � � � � � � � � � � � � � � � � � � � � � � Percent Change Versus Prior Year Percent Change Versus Prior Year BALANCE SHEET INFORMATION Three Months Ended YTD AVERAGE BALANCES 2006� � 2005� 2006� 2005� � � � � Sept. 30 � June 30 � March 31 � Dec. 31 � Sept. 30 Sept. 30 Sept. 30 � Loans net of unearned income $ 37,724,857� $ 37,012,965� $ 36,344,524� $ 34,993,552� $ 33,765,529� 11.7% $ 37,032,505� $ 33,447,240� 10.7% Total investment securities(1) 11,463,056� 11,526,166� 11,530,789� 11,792,136� 11,969,618� (4.2%) 11,506,422� 12,289,601� (6.4%) Interest-earning assets(1) 49,731,740� 48,937,299� 48,394,488� 47,373,341� 46,276,262� 7.5% 49,026,074� 46,072,226� 6.4% Total assets 54,038,641� 53,182,063� 52,708,707� 51,673,254� 50,635,581� 6.7% 53,314,675� 50,425,573� 5.7% Noninterest-bearing deposits 7,649,345� 7,948,217� 7,956,264� 7,949,605� 7,565,672� 1.1% 7,850,151� 7,416,354� 5.8% Interest-bearing deposits(2) 29,794,471� 29,118,925� 28,790,160� 28,166,662� 27,848,894� 7.0% 29,238,198� 27,581,253� 6.0% Total deposits(2) 37,443,816� 37,067,142� 36,746,424� 36,116,267� 35,414,566� 5.7% 37,088,349� 34,997,607� 6.0% Shareholders' equity 3,665,487� 3,597,112� 3,576,492� 3,548,566� 3,572,805� 2.6% 3,613,356� 3,550,546� 1.8% � � (1) Excludes adjustment for market valuation on available-for-sale securities and certain noninterest-earning marketable equity securities. � (2) Statement 133 valuation adjustments related to time deposits and other interest-bearing liabilities are included in other liabilities. � � Percent Change Versus Prior Year BALANCE SHEET INFORMATION ENDING BALANCES 2006� � 2005� � � � Sept. 30 � June 30 � March 31 � Dec. 31 � Sept. 30 � Loans net of unearned income $ 38,010,971� $ 37,454,093� $ 36,737,948� $ 35,897,939� $ 34,335,169� 10.7% Total investment securities 11,125,315� 11,389,462� 11,394,687� 11,669,483� 11,855,712� (6.2%) Interest-earning assets 49,748,412� 49,372,999� 48,491,173� 48,072,394� 46,779,359� 6.3% Total assets 54,272,800� 53,929,814� 52,858,162� 52,607,110� 51,105,385� 6.2% Noninterest-bearing deposits 7,582,057� 8,188,068� 8,291,134� 8,233,137� 8,022,022� (5.5%) Interest-bearing deposits 30,020,844� 29,249,432� 28,828,184� 28,115,245� 27,658,103� 8.5% Total deposits 37,602,901� 37,437,500� 37,119,318� 36,348,382� 35,680,125� 5.4% Shareholders' equity 3,828,845� 3,579,061� 3,617,742� 3,634,577� 3,577,455� 7.0% Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) � � � � � � � � � � � � � � � � NONPERFORMING ASSETS 2006� 2005� � � � � � Sept. 30 � June 30 � March 31 � Dec. 31 � Sept. 30 Nonaccrual loans(1) $ 99,605� $ 94,892� $ 84,150� $ 102,981� $ 80,421� Foreclosed properties 11,668� 12,684� 14,566� 17,667� 15,853� Repossessions � 2,182� � � 1,833� � � 1,599� � � 2,274� � � 1,869� Total nonperforming assets(1) $ 113,455� � $ 109,409� � $ 100,315� � $ 122,922� � $ 98,143� � Nonperforming assets to loans net of unearned income, foreclosed properties and repossessions 0.30% 0.29% 0.27% 0.34% 0.29% � � Accruing loans 90 days past due $ 52,213� � $ 43,542� � $ 49,208� � $ 54,005� � $ 52,404� � (1) Exclusive of accruing loans 90 days past due � � � � � � � � � � � � � � � � ALLOWANCE FOR LOAN AND LEASE LOSSES 2006� 2005� � � � � � 3rd Quarter � 2nd Quarter � 1st Quarter � 4th Quarter � 3rd Quarter Balance at beginning of period $ 359,092� $ 352,242� $ 366,695� $ 384,647� $ 365,626� Loans charged off (24,480) (25,926) (50,571) (47,314) (23,926) Recoveries of loans previously charged off � 8,583� � � 8,776� � � 8,818� � � 8,512� � � 8,147� Net Charge-offs (15,897) (17,150) (41,753) (38,802) (15,779) Addition to allowance charged to expense � 25,500� � � 24,000� � � 27,300� � � 20,850� � � 34,800� Balance at end of period $ 368,695� � $ 359,092� � $ 352,242� � $ 366,695� � $ 384,647� � Allowance for loan and lease losses to loans net of unearned income 0.97% 0.96% 0.96% 1.02% 1.12% Net charge-offs to average loans net of unearned income(1) 0.17% 0.19% 0.47% 0.44% 0.19% Allowance for loan and lease losses to nonperforming loans(2) 370.16% 378.42% 418.59% 356.08% 478.29% Allowance for loan and lease losses to nonperforming assets(2) 324.97% 328.21% 351.14% 298.32% 391.93% � (1) Annualized (2) Exclusive of accruing loans 90 days past due AmSouth Bancorporation (NYSE: ASO) today reported earnings for the third quarter ended Sept. 30, 2006, of $.54 per diluted share, compared to $.51 per diluted share reported for the third quarter of 2005. Net income for the third quarter of 2006 was a record $187.7 million and resulted in a return on average equity of 20.3 percent, a return on average assets of 1.38 percent, and an efficiency ratio of 51.8 percent. "AmSouth continued to deliver solid results despite a very difficult interest rate environment," said Dowd Ritter, AmSouth's chairman, president and chief executive officer. "We are looking forward to completing our merger with Regions Financial Corp. in November, and we believe it will create a formidable franchise with stronger and more diverse sources of revenue." Net interest income in the third quarter was $388.8 million, an increase of 3.7 percent compared with the third quarter of 2005, as loans grew 11.7 percent. Commercial loan growth was particularly strong, increasing 17.5 percent compared with the third quarter of 2005, led by a 33.8 percent increase in commercial real estate lending compared with the prior year. Residential mortgages increased 9.4 percent compared with the third quarter of 2005. Despite the solid loan growth, the net interest margin compressed to 3.19 percent as a result of the continued difficult interest rate environment and a shift in consumer preference toward higher cost time deposits. Although average total deposits increased 5.7 percent to $37.4 billion compared with the third quarter of 2005, low cost deposits declined 1.3 percent to $23.9 billion on the same basis. Noninterest revenue, which includes earnings from service charges, trust, investment services, interchange, and other sources of fee income, was $248.4 million for the quarter, compared with $259.6 million for the same quarter in 2005, which included a gain of $44.0 million from the sale of the company's mutual fund management business. Noninterest expenses in the third quarter were $335.7 million, essentially unchanged from the comparable quarter of last year. Credit quality remained strong, with net charge-offs of $15.9 million or 0.17 percent of average net loans in the third quarter, a decrease of 2 basis points compared with the third quarter of 2005. The provision for loan losses totaled $25.5 million for the third quarter, while the ratio of loan loss allowance to total loans was 0.97 percent at Sept. 30, 2006. Total nonperforming assets at Sept. 30, 2006, were $113.5 million, or 0.30 percent of loans net of unearned income, foreclosed properties and repossessions, compared to $98.1 million, or 0.29 percent for the quarter ended Sept. 30, 2005 and $109.4 million, or 0.29 percent, in the second quarter of this year. For supplemental financial information about the third quarter results, please refer to the Form 8-K filed by AmSouth with the Securities and Exchange Commission on Oct. 17, 2006, or visit the Investor Relations Resource Center on AmSouth's web site at www.amsouth.com. About AmSouth AmSouth is a regional bank holding company with $54 billion in assets, 700 branch banking offices and more than 1,200 ATMs. AmSouth operates in Florida, Tennessee, Alabama, Mississippi, Louisiana and Georgia. AmSouth is a leader among regional banks in the Southeast in several key business segments, including consumer and commercial banking, small business banking, mortgage lending, equipment leasing, and trust and investment management services. AmSouth also offers a complete line of banking products and services at its web site, www.amsouth.com. Forward Looking Statements Statements in this document that are not purely historical are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995), including any statements regarding descriptions of management's plans, objectives or goals for future operations, products or services, and forecasts of its revenues, earnings or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond AmSouth's control - could cause actual conditions, events or results to differ materially from those described in the forward-looking statements. Such factors include, but are not limited to: the execution of AmSouth's strategic initiatives; legislation and regulation; general economic conditions, especially in the Southeast; the performance of the stock and bond markets; changes in interest rates, yield curves and interest rate spread relationships; prepayment speeds within the loan and investment security portfolios; deposit flows; the cost of funds; cost of federal deposit insurance premiums; demand for loan products; demand for financial services; competition, including a continued consolidation in the financial services industry; changes in the quality or composition of AmSouth's loan and investment portfolios including capital market inefficiencies that may affect the marketability and valuation of available-for-sale securities; changes in consumer spending and saving habits; technological changes; adverse changes in the financial performance and/or condition of AmSouth's borrowers which could impact the repayment of such borrowers' loans; changes in accounting and tax principles, policies or guidelines and in tax laws; other economic, competitive, governmental and regulatory factors affecting AmSouth's operations, products, services and prices; the effects of weather and natural disasters, such as hurricanes; unexpected judicial actions and developments; results of investigations, examinations, and reviews of regulatory and law enforcement authorities; the outcome of litigation, which is inherently uncertain and depends on the findings of judges and juries; the impact on AmSouth's businesses, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts; and AmSouth's success at managing the risks involved in the foregoing. Forward-looking statements speak only as of the date they are made. AmSouth does not undertake a duty to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. -0- *T Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands, except per share data) ---------------------------------------------------------------------- EARNINGS SUMMARY Three Months Ended ------------------------------- 2006 ------------------------------- Sept. 30 June 30 March 31 ---------------------------------------------------------------------- Net interest income $388,754 $402,785 $397,720 Provision for loan and lease losses 25,500 24,000 27,300 ------------------------------- Net interest income after provision 363,254 378,785 370,420 Noninterest revenues 248,407 231,381 219,683 Noninterest expenses 335,702 339,555 330,002 ------------------------------- Income before income taxes 275,959 270,611 260,101 Income taxes 88,303 85,930 79,110 ------------------------------- Net income $187,656 $184,681 $180,991 =============================== Earnings per common share - basic $0.55 $0.54 $0.52 Earnings per common share - diluted 0.54 0.53 0.52 Cash dividends declared per common share 0.26 0.26 0.26 Weighted-average common shares outstanding - basic 343,295 344,647 345,433 Weighted-average common shares outstanding - diluted 348,842 349,647 350,743 End of period common shares outstanding 343,543 341,431 346,590 ---------------------------------------------------------------------- KEY PERFORMANCE RATIOS Three Months Ended ------------------------------- 2006 ------------------------------- Sept. 30 June 30 March 31 ---------------------------------------------------------------------- Average shareholders' equity to average total assets 6.78% 6.76% 6.79% End of period shareholders' equity to end of period total assets 7.05 6.64 6.84 Return on average assets (annualized) 1.38 1.39 1.39 Return on average shareholders' equity (annualized) 20.31 20.59 20.52 Net interest margin - taxable equivalent 3.19 3.39 3.42 Efficiency ratio 51.80 52.65 52.53 Loans net of unearned income to total deposits 101.09 100.04 98.97 Book value per common share $11.15 $10.48 $10.44 Tangible book value per common share 10.29 9.62 9.58 ---------------------------------------------------------------------- EARNINGS SUMMARY Three Months Ended Percent --------------------- Change 2005 Versus --------------------- Prior Dec. 31 Sept. 30 Year ---------------------------------------------------------------------- Net interest income $392,150 $374,733 3.7% Provision for loan and lease losses 20,850 34,800 (26.7%) --------------------- Net interest income after provision 371,300 339,933 6.9% Noninterest revenues 216,944 259,649 (4.3%) Noninterest expenses 320,559 336,905 (0.4%) --------------------- Income before income taxes 267,685 262,677 5.1% Income taxes 85,552 82,349 7.2% --------------------- Net income $182,133 $180,328 4.1% ===================== Earnings per common share - basic $0.52 $0.52 5.8% Earnings per common share - diluted 0.52 0.51 5.9% Cash dividends declared per common share 0.26 0.25 4.0% Weighted-average common shares outstanding - basic 347,201 349,346 Weighted-average common shares outstanding - diluted 351,811 354,654 End of period common shares outstanding 348,072 348,562 ---------------------------------------------------------------------- KEY PERFORMANCE RATIOS Three Months Ended --------------------- 2005 --------------------- Dec. 31 Sept. 30 ---------------------------------------------------------------------- Average shareholders' equity to average total assets 6.87% 7.06% End of period shareholders' equity to end of period total assets 6.91 7.00 Return on average assets (annualized) 1.40 1.41 Return on average shareholders' equity (annualized) 20.36 20.02 Net interest margin - taxable equivalent 3.37 3.31 Efficiency ratio 51.71 52.22 Loans net of unearned income to total deposits 98.76 96.23 Book value per common share $10.44 $10.26 Tangible book value per common share 9.59 9.41 ---------------------------------------------------------------------- EARNINGS SUMMARY YTD Percent ----------------------- Change 2006 2005 Versus ----------- ----------- Prior Sept. 30 Sept. 30 Year ---------------------------------------------------------------------- Net interest income $1,189,259 $1,133,124 5.0% Provision for loan and lease losses 76,800 73,100 5.1% ----------------------- Net interest income after provision 1,112,459 1,060,024 4.9% Noninterest revenues 699,471 698,236 0.2% Noninterest expenses 1,005,259 971,364 3.5% ----------------------- Income before income taxes 806,671 786,896 2.5% Income taxes 253,343 243,324 4.1% ----------------------- Net income $553,328 $543,572 1.8% ======================= Earnings per common share - basic $1.61 $1.54 4.5% Earnings per common share - diluted 1.58 1.52 3.9% Cash dividends declared per common share 0.78 0.75 4.0% Weighted-average common shares outstanding - basic 344,451 351,881 Weighted-average common shares outstanding - diluted 349,737 356,816 End of period common shares outstanding 343,543 348,562 ---------------------------------------------------------------------- KEY PERFORMANCE RATIOS YTD ----------------------- 2006 2005 ----------- ----------- Sept. 30 Sept. 30 ---------------------------------------------------------------------- Average shareholders' equity to average total assets 6.78% 7.04% End of period shareholders' equity to end of period total assets 7.05 7.00 Return on average assets (annualized) 1.39 1.44 Return on average shareholders' equity (annualized) 20.47 20.47 Net interest margin - taxable equivalent 3.33 3.38 Efficiency ratio 52.32 52.12 Loans net of unearned income to total deposits 101.09 96.23 Book value per common share $11.15 $10.26 Tangible book value per common share 10.29 9.41 *T -0- *T Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) ---------------------------------------------------------------------- BALANCE SHEET INFORMATION Three Months Ended --------------------------------------- AVERAGE BALANCES 2006 --------------------------------------- Sept. 30 June 30 March 31 ---------------------------------------------------------------------- Loans net of unearned income $37,724,857 $37,012,965 $36,344,524 Total investment securities(1) 11,463,056 11,526,166 11,530,789 Interest-earning assets(1) 49,731,740 48,937,299 48,394,488 Total assets 54,038,641 53,182,063 52,708,707 Noninterest-bearing deposits 7,649,345 7,948,217 7,956,264 Interest-bearing deposits(2) 29,794,471 29,118,925 28,790,160 Total deposits(2) 37,443,816 37,067,142 36,746,424 Shareholders' equity 3,665,487 3,597,112 3,576,492 ---------------------------------------------------------------------- BALANCE SHEET INFORMATION Three Months Ended Percent --------------------------- Change AVERAGE BALANCES 2005 Versus --------------------------- Prior Dec. 31 Sept. 30 Year -------------------------------------------------------------- ------- Loans net of unearned income $34,993,552 $33,765,529 11.7% Total investment securities(1) 11,792,136 11,969,618 (4.2%) Interest-earning assets(1) 47,373,341 46,276,262 7.5% Total assets 51,673,254 50,635,581 6.7% Noninterest-bearing deposits 7,949,605 7,565,672 1.1% Interest-bearing deposits(2) 28,166,662 27,848,894 7.0% Total deposits(2) 36,116,267 35,414,566 5.7% Shareholders' equity 3,548,566 3,572,805 2.6% ---------------------------------------------------------------------- BALANCE SHEET INFORMATION YTD Percent ------------------------- Change AVERAGE BALANCES 2006 2005 Versus ------------ ------------ Prior Sept. 30 Sept. 30 Year ------------------------------------ ------------ ------------ ------- Loans net of unearned income $37,032,505 $33,447,240 10.7% Total investment securities(1) 11,506,422 12,289,601 (6.4%) Interest-earning assets(1) 49,026,074 46,072,226 6.4% Total assets 53,314,675 50,425,573 5.7% Noninterest-bearing deposits 7,850,151 7,416,354 5.8% Interest-bearing deposits(2) 29,238,198 27,581,253 6.0% Total deposits(2) 37,088,349 34,997,607 6.0% Shareholders' equity 3,613,356 3,550,546 1.8% (1) Excludes adjustment for market valuation on available-for-sale securities and certain noninterest-earning marketable equity securities. (2) Statement 133 valuation adjustments related to time deposits and other interest-bearing liabilities are included in other liabilities. BALANCE SHEET INFORMATION ENDING BALANCES 2006 -------------------------------------- Sept. 30 June 30 March 31 ------------------------------- -------------------------------------- Loans net of unearned income $38,010,971 $37,454,093 $36,737,948 Total investment securities 11,125,315 11,389,462 11,394,687 Interest-earning assets 49,748,412 49,372,999 48,491,173 Total assets 54,272,800 53,929,814 52,858,162 Noninterest-bearing deposits 7,582,057 8,188,068 8,291,134 Interest-bearing deposits 30,020,844 29,249,432 28,828,184 Total deposits 37,602,901 37,437,500 37,119,318 Shareholders' equity 3,828,845 3,579,061 3,617,742 Percent BALANCE SHEET INFORMATION Change ENDING BALANCES 2005 Versus --------------------------- Prior Dec. 31 Sept. 30 Year --------------------------------------------------------- --------- Loans net of unearned income $35,897,939 $34,335,169 10.7% Total investment securities 11,669,483 11,855,712 (6.2%) Interest-earning assets 48,072,394 46,779,359 6.3% Total assets 52,607,110 51,105,385 6.2% Noninterest-bearing deposits 8,233,137 8,022,022 (5.5%) Interest-bearing deposits 28,115,245 27,658,103 8.5% Total deposits 36,348,382 35,680,125 5.4% Shareholders' equity 3,634,577 3,577,455 7.0% *T -0- *T Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) ---------------------------------------------------------------------- NONPERFORMING ASSETS 2006 2005 ----------------------------- ------------------- Sept. 30 June 30 March 31 Dec. 31 Sept. 30 ---------------------------------------------------------------------- Nonaccrual loans(1) $ 99,605 $ 94,892 $ 84,150 $102,981 $ 80,421 Foreclosed properties 11,668 12,684 14,566 17,667 15,853 Repossessions 2,182 1,833 1,599 2,274 1,869 ------------------------------------------------- Total nonperforming assets(1) $113,455 $109,409 $100,315 $122,922 $ 98,143 ================================================= Nonperforming assets to loans net of unearned income, foreclosed properties and repossessions 0.30% 0.29% 0.27% 0.34% 0.29% Accruing loans 90 days past due $ 52,213 $ 43,542 $ 49,208 $ 54,005 $ 52,404 ================================================= (1) Exclusive of accruing loans 90 days past due ---------------------------------------------------------------------- ALLOWANCE FOR LOAN AND LEASE LOSSES 2006 2005 ----------------------------- ------------------- 3rd 2nd 1st 4th 3rd Quarter Quarter Quarter Quarter Quarter ---------------------------------------------------------------------- Balance at beginning of period $359,092 $352,242 $366,695 $384,647 $365,626 Loans charged off (24,480) (25,926) (50,571) (47,314) (23,926) Recoveries of loans previously charged off 8,583 8,776 8,818 8,512 8,147 ------------------------------------------------- Net Charge-offs (15,897) (17,150) (41,753) (38,802) (15,779) Addition to allowance charged to expense 25,500 24,000 27,300 20,850 34,800 ------------------------------------------------- Balance at end of period $368,695 $359,092 $352,242 $366,695 $384,647 ================================================= Allowance for loan and lease losses to loans net of unearned income 0.97% 0.96% 0.96% 1.02% 1.12% Net charge-offs to average loans net of unearned income(1) 0.17% 0.19% 0.47% 0.44% 0.19% Allowance for loan and lease losses to nonperforming loans(2) 370.16% 378.42% 418.59% 356.08% 478.29% Allowance for loan and lease losses to nonperforming assets(2) 324.97% 328.21% 351.14% 298.32% 391.93% (1) Annualized (2) Exclusive of accruing loans 90 days past due *T