First American Corp., Nashville, is reclassifying a portion of its investment portfolio as "securities available for sale."
As a result, the securities, which had been on First American's books at cost, will be valued at market value.
The reclassification had no effect on earnings, total capital, or total assets reported in previously filed financial statements, First American said.
The changes came in connection with a review by the Securities and Exchange Commission of the company's registration statement for an offering of 1.5 million shares of common stock.
In addition, First American said the revaluation reflects an expectation that federal regulators and accounting rulemakers will require broader disclosure of securities available for sale.
Nationsbank Corp., Signet Banking Corp., and other banks have revalued investment portfolios in the last year as a result of discussion with the SEC.
At the end of the second quarter, First American reported total investment securities of $2.014 billion. Using the new categories, $1.499 billion will be classified as investment securities and $515 million as securities available for sale.