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Allowance for Loan Losses | 6 Months Ended
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Jun. 30, 2017
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] |
Allowance | Allowance for Loan Losses The ALLL includes the following components: reserves for commercial loans evaluated based on pools of credit graded loans and reserves for pools of smaller-balance homogeneous consumer loans, both determined in accordance with ASC 450-20-50. The reserve factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics and are subject to qualitative adjustments by management to reflect current events, trends, and conditions (including economic considerations and trends). The current economic conditions and trends, performance of the housing market, unemployment levels, labor participation rate, regulatory guidance, and both positive and negative portfolio segment-specific trends, are examples of additional factors considered by management in determining the ALLL. Additionally, management considers the inherent uncertainty of quantitative models that are driven by historical loss data. Management evaluates the periods of historical losses that are the basis for the loss rates used in the quantitative models and selects historical loss periods that are believed to be the most reflective of losses inherent in the loan portfolio as of the balance sheet date. Management also periodically reviews analysis of the loss emergence period which is the amount of time it takes for a loss to be confirmed (initial charge-off) after a loss event has occurred. FHN performs extensive studies as it relates to the historical loss periods used in the model and the loss emergence period and model assumptions are adjusted accordingly. The ALLL also includes reserves determined in accordance with ASC 310-10-35 for loans determined by management to be individually impaired and an allowance associated with PCI loans. See Note 1 – Summary of Significant Accounting Policies and Note 5 - Allowance for Loan Losses in the Notes to Consolidated Financial Statements on FHN’s Form 10-K for the year ended December 31, 2016, for additional information about the policies and methodologies used in the aforementioned components of the ALLL. The following table provides a rollforward of the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2017 and 2016:
(Dollars in thousands) |  | C&I |  | Commercial Real Estate |  | Consumer Real Estate |  | Permanent Mortgage |  | Credit Card and Other |  | Total
Balance as of April 1, 2017 |  | $ | 93,107 |  |  | $ | 30,888 |  |  | $ | 49,680 |  |  | $ | 15,893 |  |  | $ | 12,400 |  |  | $ | 201,968 |
Charge-offs |  | (1,865 | ) |  | (20 | ) |  | (3,951 | ) |  | (843 | ) |  | (3,151 | ) |  | (9,830 | )
Recoveries |  | 600 |  |  | 140 |  |  | 5,143 |  |  | 488 |  |  | 748 |  |  | 7,119 |
Provision/(provision credit) for loan losses |  | 537 |  |  | (538 | ) |  | (4,803 | ) |  | 860 |  |  | 1,944 |  |  | (2,000 | )
Balance as of June 30, 2017 |  | 92,379 |  |  | 30,470 |  |  | 46,069 |  |  | 16,398 |  |  | 11,941 |  |  | 197,257 |
Balance as of January 1, 2017 |  | $ | 89,398 |  |  | $ | 33,852 |  |  | $ | 50,357 |  |  | $ | 16,289 |  |  | $ | 12,172 |  |  | $ | 202,068 |
Charge-offs |  | (2,465 | ) |  | (20 | ) |  | (7,800 | ) |  | (1,326 | ) |  | (6,632 | ) |  | (18,243 | )
Recoveries |  | 2,276 |  |  | 361 |  |  | 10,819 |  |  | 1,391 |  |  | 1,585 |  |  | 16,432 |
Provision/(provision credit) for loan losses |  | 3,170 |  |  | (3,723 | ) |  | (7,307 | ) |  | 44 |  |  | 4,816 |  |  | (3,000 | )
Balance as of June 30, 2017 |  | 92,379 |  |  | 30,470 |  |  | 46,069 |  |  | 16,398 |  |  | 11,941 |  |  | 197,257 |
Allowance - individually evaluated for impairment |  | 3,641 |  |  | 176 |  |  | 27,149 |  |  | 11,858 |  |  | 161 |  |  | 42,985 |
Allowance - collectively evaluated for impairment |  | 88,609 |  |  | 30,277 |  |  | 18,536 |  |  | 4,540 |  |  | 11,780 |  |  | 153,742 |
Allowance - purchased credit-impaired loans |  | 129 |  |  | 17 |  |  | 384 |  |  | — |  |  | — |  |  | 530 |
Loans, net of unearned as of June 30, 2017: |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | 38,034 |  |  | 3,024 |  |  | 137,999 |  |  | 85,913 |  |  | 360 |  |  | 265,330 |
Collectively evaluated for impairment |  | 12,538,913 |  |  | 2,204,947 |  |  | 4,278,063 |  |  | 322,182 |  |  | 353,135 |  |  | 19,697,240 |
Purchased credit-impaired loans |  | 21,272 |  |  | 4,025 |  |  | 1,397 |  |  | — |  |  | 55 |  |  | 26,749 |
Total loans, net of unearned income |  | $ | 12,598,219 |  |  | $ | 2,211,996 |  |  | $ | 4,417,459 |  |  | $ | 408,095 |  |  | $ | 353,550 |  |  | $ | 19,989,319 |
Balance as of April 1, 2016 |  | $ | 80,887 |  |  | $ | 25,626 |  |  | $ | 67,321 |  |  | $ | 18,754 |  |  | $ | 11,446 |  |  | $ | 204,034 |
Charge-offs |  | (7,869 | ) |  | (51 | ) |  | (6,582 | ) |  | (349 | ) |  | (3,445 | ) |  | (18,296 | )
Recoveries |  | 1,602 |  |  | 909 |  |  | 6,082 |  |  | 484 |  |  | 992 |  |  | 10,069 |
Provision/(provision credit) for loan losses |  | 6,352 |  |  | 3,780 |  |  | (7,740 | ) |  | (1,289 | ) |  | 2,897 |  |  | 4,000 |
Balance as of June 30, 2016 |  | 80,972 |  |  | 30,264 |  |  | 59,081 |  |  | 17,600 |  |  | 11,890 |  |  | 199,807 |
Balance as of January 1, 2016 |  | $ | 73,637 |  |  | $ | 25,159 |  |  | $ | 80,614 |  |  | $ | 18,947 |  |  | $ | 11,885 |  |  | $ | 210,242 |
Charge-offs |  | (14,394 | ) |  | (693 | ) |  | (13,508 | ) |  | (461 | ) |  | (6,852 | ) |  | (35,908 | )
Recoveries |  | 2,382 |  |  | 1,131 |  |  | 11,817 |  |  | 1,263 |  |  | 1,880 |  |  | 18,473 |
Provision/(provision credit) for loan losses |  | 19,347 |  |  | 4,667 |  |  | (19,842 | ) |  | (2,149 | ) |  | 4,977 |  |  | 7,000 |
Balance as of June 30, 2016 |  | 80,972 |  |  | 30,264 |  |  | 59,081 |  |  | 17,600 |  |  | 11,890 |  |  | 199,807 |
Allowance - individually evaluated for impairment |  | 4,076 |  |  | 434 |  |  | 31,911 |  |  | 15,583 |  |  | 147 |  |  | 52,151 |
Allowance - collectively evaluated for impairment |  | 76,786 |  |  | 29,449 |  |  | 26,834 |  |  | 2,017 |  |  | 11,743 |  |  | 146,829 |
Allowance - purchased credit-impaired loans |  | 110 |  |  | 381 |  |  | 336 |  |  | — |  |  | — |  |  | 827 |
Loans, net of unearned as of June 30, 2016: |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | 51,447 |  |  | 8,298 |  |  | 163,339 |  |  | 95,882 |  |  | 356 |  |  | 319,322 |
Collectively evaluated for impairment |  | 11,117,452 |  |  | 1,951,306 |  |  | 4,475,856 |  |  | 343,132 |  |  | 360,275 |  |  | 18,248,021 |
Purchased credit-impaired loans |  | 10,546 |  |  | 9,808 |  |  | 1,584 |  |  | — |  |  | 56 |  |  | 21,994 |
Total loans, net of unearned income |  | $ | 11,179,445 |  |  | $ | 1,969,412 |  |  | $ | 4,640,779 |  |  | $ | 439,014 |  |  | $ | 360,687 |  |  | $ | 18,589,337 |

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