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Variable Interest Entities (Tables) | 9 Months Ended
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Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Variable Interest Entities | The following table summarizes the impact to the Provision/(benefit) for income taxes on the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2018, and 2017 for LIHTC investments accounted for under the proportional amortization method.
|  | Three Months Ended September 30 |  | Nine Months Ended September 30
(Dollars in thousands) |  | 2018 |  | 2017 |  | 2018 |  | 2017
Provision/(benefit) for income taxes: |  |  |  |  |  |  |  |
Amortization of qualifying LIHTC investments |  | $ | 1,547 |  |  | $ | 3,774 |  |  | $ | 6,094 |  |  | $ | 8,414 |
Low income housing tax credits |  | (2,584 | ) |  | (3,103 | ) |  | (7,681 | ) |  | (8,101 | )
Other tax benefits related to qualifying LIHTC investments |  | (1,412 | ) |  | (2,478 | ) |  | (2,996 | ) |  | (4,307 | )
The following table summarizes VIEs consolidated by FHN as of September 30, 2018 and December 31, 2017:
|  | September 30, 2018 |  | December 31, 2017
|  | On-Balance Sheet Consumer Loan Securitization |  | Rabbi Trusts Used for Deferred Compensation Plans |  | On-Balance Sheet Consumer Loan Securitization |  | Rabbi Trusts Used for Deferred Compensation Plans
(Dollars in thousands) |  | Carrying Value |  | Carrying Value |  | Carrying Value |  | Carrying Value
Assets: |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | — |  |  | N/A |  |  | $ | — |  |  | N/A |
Loans, net of unearned income |  | 17,106 |  |  | N/A |  |  | 24,175 |  |  | N/A |
Less: Allowance for loan losses |  | — |  |  | N/A |  |  | — |  |  | N/A |
Total net loans |  | 17,106 |  |  | N/A |  |  | 24,175 |  |  | N/A |
Other assets |  | 35 |  |  | $ | 84,170 |  |  | 47 |  |  | $ | 80,479 |
Total assets |  | $ | 17,141 |  |  | $ | 84,170 |  |  | $ | 24,222 |  |  | $ | 80,479 |
Liabilities: |  |  |  |  |  |  |  |
Term borrowings |  | $ | 4,071 |  |  | N/A |  |  | $ | 11,226 |  |  | N/A |
Other liabilities |  | — |  |  | $ | 63,017 |  |  | 2 |  |  | $ | 61,733 |
Total liabilities |  | $ | 4,071 |  |  | $ | 63,017 |  |  | $ | 11,228 |  |  | $ | 61,733 |
The following table summarizes FHN’s nonconsolidated VIEs as of September 30, 2018:
(Dollars in thousands) |  | Maximum Loss Exposure |  | Liability Recognized |  | Classification
Type |  |  |  |  |  |
Low income housing partnerships |  | $ | 118,355 |  |  | $ | 52,148 |  |  | (a)
Other tax credit investments (b) (c) |  | 17,878 |  |  | — |  |  | Other assets
Small issuer trust preferred holdings (d) |  | 276,825 |  |  | — |  |  | Loans, net of unearned income
On-balance sheet trust preferred securitization |  | 48,306 |  |  | 65,868 |  |  | (e)
Proprietary residential mortgage securitizations |  | 1,592 |  |  | — |  |  | Trading securities
Holdings of agency mortgage-backed securities (d) |  | 5,209,810 |  |  | — |  |  | (f)
Commercial loan troubled debt restructurings (g) |  | 41,926 |  |  | — |  |  | Loans, net of unearned income
Sale-leaseback transaction |  | 16,327 |  |  | — |  |  | (h)
Proprietary trust preferred issuances (i) |  | — |  |  | 202,068 |  |  | Term borrowings
(a) | Maximum loss exposure represents $66.2 million of current investments and $52.1 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2020.
(b) | A liability is not recognized as investments are written down over the life of the related tax credit.
(c) | Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.
(d) | Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.
(e) | Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $65.9 million classified as Term borrowings.
(f) | Includes $.8 billion classified as Trading securities and $4.4 billion classified as Securities available-for-sale.
(g) | Maximum loss exposure represents $41.4 million of current receivables and $.6 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
(h) | Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.
(i) | No exposure to loss due to nature of FHN's involvement.
The following table summarizes FHN’s nonconsolidated VIEs as of December 31, 2017:
(Dollars in thousands) |  | Maximum Loss Exposure |  | Liability Recognized |  | Classification
Type |  |  |  |  |  |
Low income housing partnerships |  | $ | 94,798 |  |  | $ | 33,348 |  |  | (a)
Other tax credit investments (b) (c) |  | 20,394 |  |  | — |  |  | Other assets
Small issuer trust preferred holdings (d) |  | 332,455 |  |  | — |  |  | Loans, net of unearned income
On-balance sheet trust preferred securitization |  | 48,817 |  |  | 65,357 |  |  | (e)
Proprietary residential mortgage securitizations |  | 2,151 |  |  | — |  |  | Trading securities
Holdings of agency mortgage-backed securities (d) |  | 5,349,287 |  |  | — |  |  | (f)
Commercial loan troubled debt restructurings (g) |  | 19,411 |  |  | — |  |  | Loans, net of unearned income
Sale-leaseback transaction |  | 14,827 |  |  | — |  |  | (h)
Proprietary trust preferred issuances (i) |  | — |  |  | 212,378 |  |  | Term borrowings
(a) | Maximum loss exposure represents $61.5 million of current investments and $33.3 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2020.
(b) | A liability is not recognized as investments are written down over the life of the related tax credit.
(c) | Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.
(d) | Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.
(e) | Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $65.4 million classified as Term borrowings.
(f) | Includes $.5 billion classified as Trading securities and $4.8 billion classified as Securities available-for-sale.
(g) | Maximum loss exposure represents $19.1 million of current receivables and $.3 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
(h) | Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.
(i) | No exposure to loss due to nature of FHN's involvement.

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- Definition Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=108788376&loc=SL6759159-111685 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=108788376&loc=d3e5747-111685 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=108788376&loc=SL6228884-111685 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=108788376&loc=d3e5710-111685 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=108788376&loc=d3e5728-111685 + Details
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