XML 34 R21.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Business Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2017
Segment Reporting, Measurement Disclosures [Abstract] |
Business Segment Information | Business Segment Information FHN has four business segments: regional banking, fixed income, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers in Tennessee and other selected markets. Regional banking also provides investments, financial planning, trust services and asset management, credit card, and cash management. Additionally, the regional banking segment includes correspondent banking which provides credit, depository, and other banking related services to other financial institutions nationally. The fixed income segment consists of fixed income securities sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales. The corporate segment consists of unallocated corporate expenses, expense on subordinated debt issuances, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, tax credit investment activities, derivative valuation adjustments related to prior sales of Visa Class B shares, loss on extinguishment of debt, and acquisition- and integration-related costs. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses. Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented. The following table reflects the amounts of consolidated revenue, expense, tax, and average assets for each segment for the three and nine months ended September 30:
|  | Three Months Ended September 30 |  | Nine Months Ended September 30
(Dollars in thousands) |  | 2017 |  | 2016 |  | 2017 |  | 2016
Consolidated |  |  |  |  |  |  |  |
Net interest income |  | $ | 209,817 |  |  | $ | 185,195 |  |  | $ | 600,226 |  |  | $ | 533,533 |
Provision/(provision credit) for loan losses |  | — |  |  | 4,000 |  |  | (3,000 | ) |  | 11,000 |
Noninterest income |  | 112,417 |  |  | 148,545 |  |  | 357,029 |  |  | 428,364 |
Noninterest expense |  | 236,869 |  |  | 233,558 |  |  | 676,991 |  |  | 687,307 |
Income/(loss) before income taxes |  | 85,365 |  |  | 96,182 |  |  | 283,264 |  |  | 263,590 |
Provision/(benefit) for income taxes (a) |  | 13,596 |  |  | 28,547 |  |  | 57,903 |  |  | 82,802 |
Net income/(loss) |  | $ | 71,769 |  |  | $ | 67,635 |  |  | $ | 225,361 |  |  | $ | 180,788 |
Average assets |  | $ | 28,874,827 |  |  | $ | 27,609,702 |  |  | $ | 28,852,679 |  |  | $ | 27,021,137 |
|  | Three Months Ended September 30 |  | Nine Months Ended September 30
(Dollars in thousands) |  | 2017 |  | 2016 |  | 2017 |  | 2016
Regional Banking |  |  |  |  |  |  |  |
Net interest income |  | $ | 209,319 |  |  | $ | 190,508 |  |  | $ | 604,680 |  |  | $ | 541,135 |
Provision/(provision credit) for loan losses |  | 8,552 |  |  | 8,544 |  |  | 11,910 |  |  | 34,195 |
Noninterest income |  | 64,369 |  |  | 65,128 |  |  | 188,082 |  |  | 185,679 |
Noninterest expense |  | 150,464 |  |  | 145,050 |  |  | 451,175 |  |  | 454,970 |
Income/(loss) before income taxes |  | 114,672 |  |  | 102,042 |  |  | 329,677 |  |  | 237,649 |
Provision/(benefit) for income taxes |  | 41,267 |  |  | 37,027 |  |  | 118,986 |  |  | 84,736 |
Net income/(loss) |  | $ | 73,405 |  |  | $ | 65,015 |  |  | $ | 210,691 |  |  | $ | 152,913 |
Average assets |  | $ | 19,158,458 |  |  | $ | 17,582,899 |  |  | $ | 18,519,584 |  |  | $ | 16,704,462 |
Fixed Income |  |  |  |  |  |  |  |
Net interest income |  | $ | 5,979 |  |  | $ | 2,411 |  |  | $ | 12,109 |  |  | $ | 8,224 |
Noninterest income |  | 55,802 |  |  | 72,073 |  |  | 161,829 |  |  | 217,278 |
Noninterest expense |  | 53,105 |  |  | 59,423 |  |  | 155,791 |  |  | 180,850 |
Income/(loss) before income taxes |  | 8,676 |  |  | 15,061 |  |  | 18,147 |  |  | 44,652 |
Provision/(benefit) for income taxes |  | 2,979 |  |  | 5,518 |  |  | 5,949 |  |  | 16,195 |
Net income/(loss) |  | $ | 5,697 |  |  | $ | 9,543 |  |  | $ | 12,198 |  |  | $ | 28,457 |
Average assets |  | $ | 2,586,997 |  |  | $ | 2,305,986 |  |  | $ | 2,388,984 |  |  | $ | 2,348,640 |
Corporate |  |  |  |  |  |  |  |
Net interest income/(expense) |  | $ | (13,990 | ) |  | $ | (18,193 | ) |  | $ | (43,060 | ) |  | $ | (48,401 | )
Noninterest income (b) |  | (9,477 | ) |  | 5,134 |  |  | 2,217 |  |  | 15,766 |
Noninterest expense |  | 23,935 |  |  | 14,929 |  |  | 65,390 |  |  | 44,320 |
Income/(loss) before income taxes |  | (47,402 | ) |  | (27,988 | ) |  | (106,233 | ) |  | (76,955 | )
Provision/(benefit) for income taxes (a) |  | (34,255 | ) |  | (16,736 | ) |  | (83,019 | ) |  | (40,695 | )
Net income/(loss) |  | $ | (13,147 | ) |  | $ | (11,252 | ) |  | $ | (23,214 | ) |  | $ | (36,260 | )
Average assets |  | $ | 5,698,161 |  |  | $ | 5,880,268 |  |  | $ | 6,421,890 |  |  | $ | 6,024,736 |
Non-Strategic |  |  |  |  |  |  |  |
Net interest income |  | $ | 8,509 |  |  | $ | 10,469 |  |  | $ | 26,497 |  |  | $ | 32,575 |
Provision/(provision credit) for loan losses |  | (8,552 | ) |  | (4,544 | ) |  | (14,910 | ) |  | (23,195 | )
Noninterest income |  | 1,723 |  |  | 6,210 |  |  | 4,901 |  |  | 9,641 |
Noninterest expense |  | 9,365 |  |  | 14,156 |  |  | 4,635 |  |  | 7,167 |
Income/(loss) before income taxes |  | 9,419 |  |  | 7,067 |  |  | 41,673 |  |  | 58,244 |
Provision/(benefit) for income taxes |  | 3,605 |  |  | 2,738 |  |  | 15,987 |  |  | 22,566 |
Net income/(loss) |  | $ | 5,814 |  |  | $ | 4,329 |  |  | $ | 25,686 |  |  | $ | 35,678 |
Average assets |  | $ | 1,431,211 |  |  | $ | 1,840,549 |  |  | $ | 1,522,221 |  |  | $ | 1,943,299 |
Certain previously reported amounts have been reclassified to agree with current presentation. (a) Provision/(benefit) for income taxes for consolidated results and the Corporate segment for the three and nine months ended September 30, 2017, relative to the prior year periods, was affected by a decline in the effective tax rate in 2017 primarily related to the reversal of the valuation allowance for the deferred tax asset related to its 2012 federal capital loss carryforward based on capital gain transactions initiated in second quarter 2017. See Note 15 – Income Taxes in the Notes to Consolidated Financial Statements on FHN’s Form 10-K for the year ended December 31, 2016, for additional information related to FHN's valuation allowance related to its capital loss carryforward. (b) Three and nine months ended September 30, 2017 includes a $14.3 million pre-tax loss from the repurchase of equity securities previously included in a financing transaction.

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingMeasurementDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration