EXHIBIT 16



October 9, 1998


Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC  20549

Gentlemen:

We have read Item 4 of Form 8-K dated October 7, 1998, of New South Bancshares,
Inc. and are in agreement with the statements contained in the (a), (c), (d),
(e) and (f) paragraphs on page 1 therein.  We have no basis to agree or disagree
with other statements of the registrant contained therein.



                                       Ernst & Young LLP
                                       Birmingham, Alabama