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Derivatives (Tables) | 6 Months Ended
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Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives Associated With Fixed Income Trading Activities | The following tables summarize FHN’s derivatives associated with fixed income trading activities as of June 30, 2018 and December 31, 2017:
|  | June 30, 2018
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Customer interest rate contracts |  | $ | 2,204,706 |  |  | $ | 9,837 |  |  | $ | 48,272 |
Offsetting upstream interest rate contracts |  | 2,204,706 |  |  | 46,619 |  |  | 9,676 |
Option contracts purchased |  | 70,000 |  |  | 58 |  |  | — |
Forwards and futures purchased |  | 5,466,761 |  |  | 16,942 |  |  | 1,902 |
Forwards and futures sold |  | 5,556,237 |  |  | 2,185 |  |  | 16,836 |
|  | December 31, 2017
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Customer interest rate contracts |  | $ | 2,026,753 |  |  | $ | 22,097 |  |  | $ | 18,323 |
Offsetting upstream interest rate contracts |  | 2,026,753 |  |  | 17,931 |  |  | 20,720 |
Option contracts purchased |  | 20,000 |  |  | 15 |  |  | — |
Forwards and futures purchased |  | 6,257,140 |  |  | 4,354 |  |  | 5,526 |
Forwards and futures sold |  | 6,292,012 |  |  | 5,806 |  |  | 4,010 |
Derivatives Associated With Interest Rate Risk Management Activities | The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of June 30, 2018 and December 31, 2017:
|  | June 30, 2018
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Customer Interest Rate Contracts Hedging |  |  |  |  |  |
Hedging Instruments and Hedged Items: |  |  |  |  |  |
Customer interest rate contracts |  | $ | 1,843,573 |  |  | $ | 6,180 |  |  | $ | 42,760 |
Offsetting upstream interest rate contracts |  | 1,843,573 |  |  | 40,026 |  |  | 6,383 |
Debt Hedging |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |
Interest rate swaps |  | $ | 900,000 |  |  | $ | 22 |  |  | $ | 4 |
Hedged Items: |  |  |  |  |  |
Term borrowings: |  |  |  |  |  |
Par |  | N/A |  |  | N/A |  |  | $ | 900,000 |
Cumulative fair value hedging adjustments |  | N/A |  |  | N/A |  |  | (21,542 | )
Unamortized premium/(discount) and issuance costs |  | N/A |  |  | N/A |  |  | (3,103 | )
Total carrying value |  | N/A |  |  | N/A |  |  | 875,355 |
|  | December 31, 2017
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Customer Interest Rate Contracts Hedging |  |  |  |  |  |
Hedging Instruments and Hedged Items: |  |  |  |  |  |
Customer interest rate contracts |  | $ | 1,608,912 |  |  | $ | 11,644 |  |  | $ | 19,780 |
Offsetting upstream interest rate contracts |  | 1,608,912 |  |  | 18,473 |  |  | 11,019 |
Debt Hedging |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |
Interest rate swaps |  | $ | 900,000 |  |  | $ | 371 |  |  | N/A |
Hedged Items: |  |  |  |  |  |
Term borrowings: |  |  |  |  |  |
Par |  | N/A |  |  | N/A |  |  | $ | 900,000 |
Cumulative fair value hedging adjustments |  | N/A |  |  | N/A |  |  | (13,472 | )
Unamortized premium/(discount) and issuance costs |  | N/A |  |  | N/A |  |  | (3,910 | )
Total carrying value |  | N/A |  |  | N/A |  |  | $ | 882,618 |
Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities | The following table summarizes gains/(losses) on FHN’s derivatives associated with interest rate risk management activities for the three and six months ended June 30, 2018 and 2017:
|  | Three Months Ended June 30 |  | Six Months Ended June 30
|  | 2018 |  | 2017 |  | 2018 |  | 2017
(Dollars in thousands) |  | Gains/(Losses) |  | Gains/(Losses) |  | Gains/(Losses) |  | Gains/(Losses)
Customer Interest Rate Contracts Hedging |  |  |  |  |  |
Hedging Instruments and Hedged Items: |  |  |  |  |  |  |  |
Customer interest rate contracts (a) |  | $ | (4,459 | ) |  | $ | 4,099 |  |  | $ | (29,183 | ) |  | $ | 823 |
Offsetting upstream interest rate contracts (a) |  | 4,459 |  |  | (4,099 | ) |  | 29,183 |  |  | (823 | )
Debt Hedging |  |  |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |  |  |
Interest rate swaps (b) |  | $ | (1,545 | ) |  | $ | 1,808 |  |  | $ | (8,140 | ) |  | $ | (992 | )
Hedged Items: |  |  |  |  |  |  |  |
Term borrowings (b) (c) |  | 1,520 |  |  | (1,804 | ) |  | 8,070 |  |  | 929 |
(a) | Gains/losses included in All other expense within the Consolidated Condensed Statements of Income.
(b) | Gains/losses included in the Interest expense for 2018 and All other expense for 2017 within the Consolidated Condensed Statements of Income.
(c) | Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.
Derivative Associated With Cash Flow Hedges | The following tables summarize FHN’s derivative activities associated with cash flow hedges as of June 30, 2018 and December 31, 2017:
|  | June 30, 2018
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Cash Flow Hedges |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |
Interest rate swaps |  | $ | 900,000 |  |  | $ | 24 |  |  | $ | 85 |
Hedged Items: |  |  |  |  |  |
Variability in cash flows related to debt instruments (primarily loans) |  | N/A |  |  | $ | 900,000 |  |  | N/A |
|  | December 31, 2017
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Cash Flow Hedges |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |
Interest rate swaps |  | $ | 900,000 |  |  | $ | 942 |  |  | N/A
Hedged Items: |  |  |  |  |  |
Variability in cash flows related to debt instruments (primarily loans) |  | N/A |  |  | $ | 900,000 |  |  | N/A
The following table summarizes gains/(losses) on FHN’s derivatives associated with cash flow hedges for the three and six months ended June 30, 2018 and 2017:
|  | Three Months Ended June 30 |  | Six Months Ended June 30
|  | 2018 |  | 2017 |  | 2018 |  | 2017
(Dollars in thousands) |  | Gains/(Losses) |  | Gains/(Losses) |  | Gains/(Losses) |  | Gains/(Losses)
Cash Flow Hedges |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |  |  |
Interest rate swaps (a) |  | $ | (3,914 | ) |  | $ | 3,491 |  |  | $ | (15,531 | ) |  | $ | 390 |
Gain/(loss) recognized in Other comprehensive income/(loss) |  | (3,457 | ) |  | 3,059 |  |  | (12,095 | ) |  | 1,997 |
Gain/(loss) reclassified from AOCI into Interest income |  | 463 |  |  | (904 | ) |  | 308 |  |  | (1,756 | )
(a) | Approximately $9.0 million of pre-tax losses are expected to be reclassified into earnings in the next twelve months.
Derivative Assets And Collateral Received | The following table provides details of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of June 30, 2018 and December 31, 2017:
|  |  |  |  |  |  |  | Gross amounts not offset in the Statements of Condition |  |
(Dollars in thousands) |  | Gross amounts of recognized assets |  | Gross amounts offset in the Statements of Condition |  | Net amounts of assets presented in the Statements of Condition (a) |  | Derivative liabilities available for offset |  | Collateral received |  | Net amount
Derivative assets: |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2018 (b) |  | $ | 102,852 |  |  | $ | — |  |  | $ | 102,852 |  |  | $ | (13,490 | ) |  | $ | (89,317 | ) |  | $ | 45 |
December 31, 2017 (b) |  | 71,458 |  |  | — |  |  | 71,458 |  |  | (17,278 | ) |  | (51,271 | ) |  | 2,909 |
(a) | Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of June 30, 2018 and December 31, 2017, $19.2 million and $10.2 million, respectively, of derivative assets (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
(b) | Amounts are comprised entirely of interest rate derivative contracts.
The following table provides details of Securities purchased under agreements to resell as presented on the Consolidated Condensed Statements of Condition and collateral pledged by counterparties as of June 30, 2018 and December 31, 2017:
|  |  |  |  |  |  |  | Gross amounts not offset in the Statements of Condition |  |
(Dollars in thousands) |  | Gross amounts of recognized assets |  | Gross amounts offset in the Statements of Condition |  | Net amounts of assets presented in the Statements of Condition |  | Offsetting securities sold under agreements to repurchase |  | Securities collateral (not recognized on FHN’s Statements of Condition) |  | Net amount
Securities purchased under agreements to resell: |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2018 |  | $ | 782,765 |  |  | $ | — |  |  | $ | 782,765 |  |  | $ | (2,090 | ) |  | $ | (772,347 | ) |  | $ | 8,328 |
December 31, 2017 |  | 725,609 |  |  | — |  |  | 725,609 |  |  | (259 | ) |  | (720,036 | ) |  | 5,314 |
Derivative Liabilities and Collateral Pledged | The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of June 30, 2018 and December 31, 2017:
|  |  |  |  |  |  |  | Gross amounts not offset in the Statements of Condition |  |
(Dollars in thousands) |  | Gross amounts of recognized liabilities |  | Gross amounts offset in the Statements of Condition |  | Net amounts of liabilities presented in the Statements of Condition (a) |  | Derivative assets available for offset |  | Collateral pledged |  | Net amount
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2018 (b) |  | $ | 107,178 |  |  | $ | — |  |  | $ | 107,178 |  |  | $ | (13,490 | ) |  | $ | (65,689 | ) |  | $ | 27,999 |
December 31, 2017 (b) |  | 69,842 |  |  | — |  |  | 69,842 |  |  | (17,278 | ) |  | (51,801 | ) |  | 763 |
(a) | Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As of June 30, 2018 and December 31, 2017, $28.2 million and $15.2 million, respectively, of derivative liabilities (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
(b) | Amounts are comprised entirely of interest rate derivative contracts.
The following table provides details of Securities sold under agreements to repurchase as presented on the Consolidated Condensed Statements of Condition and collateral pledged by FHN as of June 30, 2018 and December 31, 2017:
|  |  |  |  |  |  |  | Gross amounts not offset in the Statements of Condition |  |
(Dollars in thousands) |  | Gross amounts of recognized liabilities |  | Gross amounts offset in the Statements of Condition |  | Net amounts of liabilities presented in the Statements of Condition |  | Offsetting securities purchased under agreements to resell |  | Securities/ government guaranteed loans collateral |  | Net amount
Securities sold under agreements to repurchase: |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2018 |  | $ | 713,152 |  |  | $ | — |  |  | $ | 713,152 |  |  | $ | (2,090 | ) |  | $ | (710,862 | ) |  | $ | 200 |
December 31, 2017 |  | 656,602 |  |  | — |  |  | 656,602 |  |  | (259 | ) |  | (656,216 | ) |  | 127 |

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