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Business Segment Information | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [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, North Carolina, South Carolina, Florida and other selected markets. Regional banking also provides investments, wealth management, financial planning, trust services and asset management, mortgage banking, 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, underwriting, 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, and acquisition- and integration-related costs. The non-strategic segment consists of run-off consumer lending activities, legacy (pre-2009) mortgage banking elements, 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) | 2018 |  | 2017 |  | 2018 |  | 2017
Consolidated |  |  |  |  |  |  |
Net interest income | $ | 305,700 |  |  | $ | 209,817 |  |  | $ | 917,805 |  |  | $ | 600,226 |
Provision/(provision credit) for loan losses | 2,000 |  |  | — |  |  | 1,000 |  |  | (3,000 | )
Noninterest income (a) | 348,972 |  |  | 112,417 |  |  | 612,514 |  |  | 357,029 |
Noninterest expense | 294,031 |  |  | 236,869 |  |  | 940,064 |  |  | 676,991 |
Income/(loss) before income taxes | 358,641 |  |  | 85,365 |  |  | 589,255 |  |  | 283,264 |
Provision/(benefit) for income taxes (b) | 83,925 |  |  | 13,596 |  |  | 133,553 |  |  | 57,903 |
Net income/(loss) | $ | 274,716 |  |  | $ | 71,769 |  |  | $ | 455,702 |  |  | $ | 225,361 |
Average assets | $ | 40,077,033 |  |  | $ | 28,874,827 |  |  | $ | 40,199,487 |  |  | $ | 28,852,679 |
| Three Months Ended September 30 |  | Nine Months Ended September 30
(Dollars in thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Regional Banking |  |  |  |  |  |  |
Net interest income | $ | 302,448 |  |  | $ | 209,100 |  |  | $ | 902,546 |  |  | $ | 604,075 |
Provision/(provision credit) for loan losses | 8,045 |  |  | 8,552 |  |  | 17,428 |  |  | 11,910 |
Noninterest income | 79,857 |  |  | 64,370 |  |  | 240,093 |  |  | 188,089 |
Noninterest expense | 207,591 |  |  | 150,445 |  |  | 619,283 |  |  | 451,135 |
Income/(loss) before income taxes | 166,669 |  |  | 114,473 |  |  | 505,928 |  |  | 329,119 |
Provision/(benefit) for income taxes | 39,101 |  |  | 41,191 |  |  | 118,929 |  |  | 118,771 |
Net income/(loss) | $ | 127,568 |  |  | $ | 73,282 |  |  | $ | 386,999 |  |  | $ | 210,348 |
Average assets | $ | 28,659,158 |  |  | $ | 19,158,852 |  |  | $ | 28,450,747 |  |  | $ | 18,519,999 |
Fixed Income |  |  |  |  |  |  |
Net interest income | $ | 9,048 |  |  | $ | 5,985 |  |  | $ | 26,686 |  |  | $ | 12,126 |
Noninterest income | 41,123 |  |  | 55,803 |  |  | 125,091 |  |  | 161,833 |
Noninterest expense | 47,306 |  |  | 53,136 |  |  | 145,635 |  |  | 155,865 |
Income/(loss) before income taxes | 2,865 |  |  | 8,652 |  |  | 6,142 |  |  | 18,094 |
Provision/(benefit) for income taxes | 532 |  |  | 2,970 |  |  | 988 |  |  | 5,929 |
Net income/(loss) | $ | 2,333 |  |  | $ | 5,682 |  |  | $ | 5,154 |  |  | $ | 12,165 |
Average assets | $ | 3,247,016 |  |  | $ | 2,586,773 |  |  | $ | 3,326,118 |  |  | $ | 2,388,740 |
Corporate |  |  |  |  |  |  |
Net interest income/(expense) | $ | (15,415 | ) |  | $ | (13,769 | ) |  | $ | (48,651 | ) |  | $ | (42,408 | )
Noninterest income (a) | 222,619 |  |  | (9,476 | ) |  | 240,665 |  |  | 2,219 |
Noninterest expense | 33,323 |  |  | 23,926 |  |  | 152,797 |  |  | 65,365 |
Income/(loss) before income taxes | 173,881 |  |  | (47,171 | ) |  | 39,217 |  |  | (105,554 | )
Provision/(benefit) for income taxes (b) | 40,529 |  |  | (34,167 | ) |  | 4,253 |  |  | (82,758 | )
Net income/(loss) | $ | 133,352 |  |  | $ | (13,004 | ) |  | $ | 34,964 |  |  | $ | (22,796 | )
Average assets | $ | 6,904,585 |  |  | $ | 5,697,894 |  |  | $ | 6,990,484 |  |  | $ | 6,421,643 |
Non-Strategic |  |  |  |  |  |  |
Net interest income | $ | 9,619 |  |  | $ | 8,501 |  |  | $ | 37,224 |  |  | $ | 26,433 |
Provision/(provision credit) for loan losses | (6,045 | ) |  | (8,552 | ) |  | (16,428 | ) |  | (14,910 | )
Noninterest income (c) | 5,373 |  |  | 1,720 |  |  | 6,665 |  |  | 4,888 |
Noninterest expense | 5,811 |  |  | 9,362 |  |  | 22,349 |  |  | 4,626 |
Income/(loss) before income taxes | 15,226 |  |  | 9,411 |  |  | 37,968 |  |  | 41,605 |
Provision/(benefit) for income taxes | 3,763 |  |  | 3,602 |  |  | 9,383 |  |  | 15,961 |
Net income/(loss) | $ | 11,463 |  |  | $ | 5,809 |  |  | $ | 28,585 |  |  | $ | 25,644 |
Average assets | $ | 1,266,274 |  |  | $ | 1,431,308 |  |  | $ | 1,432,138 |  |  | $ | 1,522,297 |
Certain previously reported amounts have been reclassified to agree with current presentation.
(a) | Three and nine months ended September 30, 2018 includes a $212.9 million pre-tax gain from the sale of Visa Class B Shares. 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.
(b) | Provision/(benefit) for income taxes for consolidated results and the Corporate segment for the three and nine months ended September 30, 2017 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 carry forward 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.
(c) | Three and nine months ended September 30, 2018 includes a $3.8 million gain from the reversal of a previous valuation adjustment due to sales of TRUPs loans.
The following table reflects a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three and nine months ended September 30, 2018 and 2017:
| Three Months Ended September 30, 2018
(Dollars in thousands) | Regional Banking |  | Fixed Income |  | Corporate |  | Non-Strategic |  | Consolidated
Noninterest income: |  |  |  |  |  |  |  |  |
Fixed income (a) | $ | 103 |  |  | $ | 40,937 |  |  | $ | (5 | ) |  | $ | 3,778 |  |  | $ | 44,813 |
Deposit transactions and cash management | 34,008 |  |  | 3 |  |  | 1,725 |  |  | 56 |  |  | 35,792 |
Brokerage, management fees and commissions | 14,200 |  |  | — |  |  | — |  |  | — |  |  | 14,200 |
Trust services and investment management | 7,453 |  |  | — |  |  | (15 | ) |  | — |  |  | 7,438 |
Bankcard income | 6,999 |  |  | — |  |  | 57 |  |  | (178 | ) |  | 6,878 |
Bank-owned life insurance (b) | — |  |  | — |  |  | 4,337 |  |  | — |  |  | 4,337 |
Debt securities gains/(losses), net (b) | — |  |  | — |  |  | — |  |  | — |  |  | — |
Equity securities gains/(losses), net (b) (d) | — |  |  | — |  |  | 212,859 |  |  | — |  |  | 212,859 |
All other income and commissions (c) | 17,094 |  |  | 183 |  |  | 3,661 |  |  | 1,717 |  |  | 22,655 |
Total noninterest income | $ | 79,857 |  |  | $ | 41,123 |  |  | $ | 222,619 |  |  | $ | 5,373 |  |  | $ | 348,972 |
| Three Months Ended September 30, 2017
| Regional Banking |  | Fixed Income |  | Corporate |  | Non-Strategic |  | Consolidated
Noninterest income: |  |  |  |  |  |  |  |  |
Fixed income | $ | 135 |  |  | $ | 55,623 |  |  | $ | — |  |  | $ | — |  |  | $ | 55,758 |
Deposit transactions and cash management | 26,620 |  |  | — |  |  | 1,339 |  |  | 52 |  |  | 28,011 |
Brokerage, management fees and commissions | 11,937 |  |  | — |  |  | — |  |  | — |  |  | 11,937 |
Trust services and investment management | 6,968 |  |  | — |  |  | (15 | ) |  | — |  |  | 6,953 |
Bankcard income | 6,057 |  |  | — |  |  | 56 |  |  | 57 |  |  | 6,170 |
Bank-owned life insurance | — |  |  | — |  |  | 3,539 |  |  | — |  |  | 3,539 |
Debt securities gains/(losses), net | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Equity securities gains/(losses), net | — |  |  | — |  |  | 5 |  |  | — |  |  | 5 |
All other income and commissions (e) | 12,653 |  |  | 180 |  |  | (14,401 | ) |  | 1,611 |  |  | 43 |
Total noninterest income | $ | 64,370 |  |  | $ | 55,803 |  |  | $ | (9,476 | ) |  | $ | 1,720 |  |  | $ | 112,417 |
(a) | Includes $8.4 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards Codification ("ASC") 606, "Revenue From Contracts With Customers." Non-Strategic includes a $3.8 million gain from the reversal of a previous valuation adjustment due to sales of TRUPs loans excluded from the scope of ASC 606.
(b) | Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total non-interest income.
(c) | Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commission in scope of ASC 606.
(d) | In third quarter 2018, FHN sold its remaining holdings of Visa Class B shares resulting in a pre-tax gain of $212.9 million.
(e) | Corporate includes a $14.3 million pre-tax loss from the repurchase of equity securities previously included in a financing transaction.
| Nine Months Ended September 30, 2018
(Dollars in thousands) | Regional Banking |  | Fixed Income |  | Corporate |  | Non-Strategic |  | Consolidated
Noninterest income: |  |  |  |  |  |  |  |  |
Fixed income (a) | $ | 314 |  |  | $ | 123,929 |  |  | $ | (5 | ) |  | $ | 3,778 |  |  | $ | 128,016 |
Deposit transactions and cash management | 103,275 |  |  | 9 |  |  | 4,416 |  |  | 159 |  |  | 107,859 |
Brokerage, management fees and commissions | 41,423 |  |  | — |  |  | — |  |  | — |  |  | 41,423 |
Trust services and investment management | 22,891 |  |  | — |  |  | (44 | ) |  | — |  |  | 22,847 |
Bankcard income | 19,921 |  |  | — |  |  | 168 |  |  | (131 | ) |  | 19,958 |
Bank-owned life insurance (b) | — |  |  | — |  |  | 14,103 |  |  | — |  |  | 14,103 |
Debt securities gains/(losses), net (b) | — |  |  | — |  |  | 52 |  |  | — |  |  | 52 |
Equity securities gains/(losses), net (b) (d) | — |  |  | — |  |  | 212,924 |  |  | — |  |  | 212,924 |
All other income and commissions (c) (e) | 52,269 |  |  | 1,153 |  |  | 9,051 |  |  | 2,859 |  |  | 65,332 |
Total noninterest income | $ | 240,093 |  |  | $ | 125,091 |  |  | $ | 240,665 |  |  | $ | 6,665 |  |  | $ | 612,514 |
| Nine Months Ended September 30, 2017
| Regional Banking |  | Fixed Income |  | Corporate |  | Non-Strategic |  | Consolidated
Noninterest income: |  |  |  |  |  |  |  |  |
Fixed income | $ | 348 |  |  | $ | 161,198 |  |  | $ | — |  |  | $ | — |  |  | $ | 161,546 |
Deposit transactions and cash management | 76,288 |  |  | — |  |  | 4,004 |  |  | 142 |  |  | 80,434 |
Brokerage, management fees and commissions | 35,872 |  |  | — |  |  | — |  |  | — |  |  | 35,872 |
Trust services and investment management | 21,360 |  |  | — |  |  | (56 | ) |  | — |  |  | 21,304 |
Bankcard income | 16,894 |  |  | — |  |  | 169 |  |  | 167 |  |  | 17,230 |
Bank-owned life insurance | — |  |  | — |  |  | 11,137 |  |  | — |  |  | 11,137 |
Debt securities gains/(losses), net | 386 |  |  | — |  |  | 64 |  |  | — |  |  | 450 |
Equity securities gains/(losses), net | — |  |  | — |  |  | 5 |  |  | — |  |  | 5 |
All other income and commissions (f) | 36,941 |  |  | 635 |  |  | (13,104 | ) |  | 4,579 |  |  | 29,051 |
Total noninterest income | $ | 188,089 |  |  | $ | 161,833 |  |  | $ | 2,219 |  |  | $ | 4,888 |  |  | $ | 357,029 |
(a) | Includes $24.0 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards Codification ("ASC") 606, "Revenue From Contracts With Customers." Non-Strategic includes a $3.8 million gain from the reversal of a previous valuation adjustment due to sales of TRUPs loans excluded from the scope of ASC 606.
(b) | Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total non-interest income.
(c) | Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commission in scope of ASC 606.
(d) | In third quarter 2018, FHN sold its remaining holdings of Visa Class B shares resulting in a pre-tax gain of $212.9 million.
(e) | Corporate includes $4.1 million of gains on the sales of buildings.
(f) | Corporate includes a $14.3 million pre-tax loss from the repurchase of equity securities previously included in a financing transaction.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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