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Allowance for Loan Losses | 12 Months Ended
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Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] |
Allowance | Allowance for Loan Losses As discussed in Note 1 - Summary of Significant Accounting Polices, 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, and to a lesser extent, 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. For commercial loans, ASC 450-20-50 reserves are established using historical net loss factors by grade level, loan product, and business segment. The ALLL for smaller-balance homogeneous consumer loans is determined based on pools of similar loan types that have similar credit risk characteristics. ASC 450-20-50 reserves for the consumer portfolio are determined using segmented roll-rate models that incorporate various factors including historical delinquency trends, experienced loss frequencies, and experienced loss severities. Generally, reserves for consumer loans reflect inherent losses in the portfolio that are expected to be recognized over the following twelve months. The historical net loss factors for both commercial and consumer ASC 450-20-50 reserve models are subject to qualitative adjustments by management to reflect current events, trends, and conditions (including economic considerations and trends), which are not fully captured in the historical net loss factors. The pace of the economic recovery, performance of the housing market, unemployment levels, labor participation rate, the regulatory environment, regulatory guidance, and 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 an 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. Impairment related to individually impaired loans is measured in accordance with ASC 310-10. For all commercial portfolio segments, commercial TDRs and other individually impaired commercial loans are measured based on the present value of expected future payments discounted at the loan’s effective interest rate (“the DCF method”), observable market prices, or for loans that are solely dependent on the collateral for repayment, the net realizable value (collateral value less estimated costs to sell). Impaired loans also include consumer TDRs. Generally, the allowance for TDRs in all consumer portfolio segments is determined by estimating the expected future cash flows using the modified interest rate (if an interest rate concession), incorporating payoff and net charge-off rates specific to the TDRs within the portfolio segment being assessed, and discounted using the pre-modification interest rate. The discount rates of variable rate TDRs are adjusted to reflect changes in the interest rate index to which the rates are tied. The discounted cash flows are then compared to the outstanding principal balance in order to determine required reserves. Residential real estate loans discharged through bankruptcy are collateral-dependent and are charged down to net realizable value (collateral value less estimated costs to sell). The following table provides a rollforward of the allowance for loan losses by portfolio segment for December 31, 2017, 2016 and 2015:
(Dollars in thousands) |  | C&I |  | Commercial Real Estate |  | Consumer Real Estate |  | Permanent Mortgage |  | Credit Card and Other |  | Total
Balance as of January 1, 2017 |  | $ | 89,398 |  |  | $ | 33,852 |  |  | $ | 50,357 |  |  | $ | 16,289 |  |  | $ | 12,172 |  |  | $ | 202,068 |
Charge-offs |  | (17,657 | ) |  | (195 | ) |  | (13,156 | ) |  | (2,179 | ) |  | (13,207 | ) |  | (46,394 | )
Recoveries |  | 4,568 |  |  | 966 |  |  | 22,723 |  |  | 2,509 |  |  | 3,115 |  |  | 33,881 |
Provision/(provision credit) for loan losses |  | 21,902 |  |  | (6,196 | ) |  | (22,553 | ) |  | (1,054 | ) |  | 7,901 |  |  | — |
Balance as of December 31, 2017 |  | 98,211 |  |  | 28,427 |  |  | 37,371 |  |  | 15,565 |  |  | 9,981 |  |  | 189,555 |
Allowance - individually evaluated for impairment |  | 6,044 |  |  | 132 |  |  | 23,175 |  |  | 12,105 |  |  | 311 |  |  | 41,767 |
Allowance - collectively evaluated for impairment |  | 89,358 |  |  | 28,291 |  |  | 13,841 |  |  | 3,460 |  |  | 9,670 |  |  | 144,620 |
Allowance - purchased credit-impaired loans |  | 2,809 |  |  | 4 |  |  | 355 |  |  | — |  |  | — |  |  | 3,168 |
Loans, net of unearned as of December 31, 2017: |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | 43,024 |  |  | 2,407 |  |  | 128,895 |  |  | 84,794 |  |  | 593 |  |  | 259,713 |
Collectively evaluated for impairment |  | 15,909,110 |  |  | 4,181,908 |  |  | 6,200,330 |  |  | 314,513 |  |  | 613,806 |  |  | 27,219,667 |
Purchased credit-impaired loans |  | 105,139 |  |  | 30,380 |  |  | 38,530 |  |  | — |  |  | 5,500 |  |  | 179,549 |
Total loans, net of unearned income |  | $ | 16,057,273 |  |  | $ | 4,214,695 |  |  | $ | 6,367,755 |  |  | $ | 399,307 |  |  | $ | 619,899 |  |  | $ | 27,658,929 |
Balance as of January 1, 2016 |  | $ | 73,637 |  |  | $ | 25,159 |  |  | $ | 80,614 |  |  | $ | 18,947 |  |  | $ | 11,885 |  |  | $ | 210,242 |
Charge-offs |  | (18,460 | ) |  | (1,371 | ) |  | (21,993 | ) |  | (1,591 | ) |  | (14,224 | ) |  | (57,639 | )
Recoveries |  | 6,795 |  |  | 1,927 |  |  | 23,719 |  |  | 2,403 |  |  | 3,621 |  |  | 38,465 |
Provision/(provision credit) for loan losses |  | 27,426 |  |  | 8,137 |  |  | (31,983 | ) |  | (3,470 | ) |  | 10,890 |  |  | 11,000 |
Balance as of December 31, 2016 |  | 89,398 |  |  | 33,852 |  |  | 50,357 |  |  | 16,289 |  |  | 12,172 |  |  | 202,068 |
Allowance - individually evaluated for impairment |  | 4,219 |  |  | 194 |  |  | 28,802 |  |  | 12,470 |  |  | 133 |  |  | 45,818 |
Allowance - collectively evaluated for impairment |  | 85,015 |  |  | 33,503 |  |  | 21,151 |  |  | 3,819 |  |  | 12,039 |  |  | 155,527 |
Allowance - purchased credit-impaired loans |  | 164 |  |  | 155 |  |  | 404 |  |  | — |  |  | — |  |  | 723 |
Loans, net of unearned as of December 31, 2016: |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | 47,962 |  |  | 3,124 |  |  | 153,460 |  |  | 93,926 |  |  | 306 |  |  | 298,778 |
Collectively evaluated for impairment |  | 12,059,593 |  |  | 2,127,481 |  |  | 4,368,716 |  |  | 329,199 |  |  | 358,675 |  |  | 19,243,664 |
Purchased credit-impaired loans |  | 40,532 |  |  | 4,918 |  |  | 1,576 |  |  | — |  |  | 52 |  |  | 47,078 |
Total loans, net of unearned income |  | $ | 12,148,087 |  |  | $ | 2,135,523 |  |  | $ | 4,523,752 |  |  | $ | 423,125 |  |  | $ | 359,033 |  |  | $ | 19,589,520 |
Balance as of January 1, 2015 |  | $ | 67,011 |  |  | $ | 18,574 |  |  | $ | 113,011 |  |  | $ | 19,122 |  |  | $ | 14,730 |  |  | $ | 232,448 |
Charge-offs |  | (22,406 | ) |  | (3,550 | ) |  | (30,068 | ) |  | (3,141 | ) |  | (16,691 | ) |  | (75,856 | )
Recoveries |  | 13,339 |  |  | 1,876 |  |  | 23,895 |  |  | 1,687 |  |  | 3,853 |  |  | 44,650 |
Provision/(provision credit) for loan losses |  | 15,693 |  |  | 8,259 |  |  | (26,224 | ) |  | 1,279 |  |  | 9,993 |  |  | 9,000 |
Balance as of December 31, 2015 |  | 73,637 |  |  | 25,159 |  |  | 80,614 |  |  | 18,947 |  |  | 11,885 |  |  | 210,242 |
Allowance - individually evaluated for impairment |  | 3,643 |  |  | 481 |  |  | 31,278 |  |  | 15,463 |  |  | 167 |  |  | 51,032 |
Allowance - collectively evaluated for impairment |  | 69,980 |  |  | 23,519 |  |  | 48,828 |  |  | 3,484 |  |  | 11,717 |  |  | 157,528 |
Allowance - purchased credit-impaired loans |  | 14 |  |  | 1,159 |  |  | 508 |  |  | — |  |  | 1 |  |  | 1,682 |
Loans, net of unearned as of December 31, 2015: |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | 30,472 |  |  | 9,055 |  |  | 165,684 |  |  | 102,461 |  |  | 377 |  |  | 308,049 |
Collectively evaluated for impairment |  | 10,389,841 |  |  | 1,644,792 |  |  | 4,596,654 |  |  | 351,662 |  |  | 354,106 |  |  | 17,337,055 |
Purchased credit-impaired loans |  | 16,077 |  |  | 21,088 |  |  | 4,180 |  |  | — |  |  | 53 |  |  | 41,398 |
Total loans, net of unearned income |  | $ | 10,436,390 |  |  | $ | 1,674,935 |  |  | $ | 4,766,518 |  |  | $ | 454,123 |  |  | $ | 354,536 |  |  | $ | 17,686,502 |

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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