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Derivatives (Tables) | 9 Months Ended
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Sep. 30, 2020
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 September 30, 2020 and December 31, 2019:
|  | September 30, 2020
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Customer interest rate contracts |  | $ | 3,847,085 |  |  | $ | 240,218 |  |  | $ | 2,444 |
Offsetting upstream interest rate contracts |  | 3,847,085 |  |  | 2,317 |  |  | 16,828 |
Forwards and futures purchased |  | 15,069,709 |  |  | 41,553 |  |  | 3,456 |
Forwards and futures sold |  | 15,596,324 |  |  | 5,788 |  |  | 39,018 |
|  | December 31, 2019
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Customer interest rate contracts |  | $ | 2,697,522 |  |  | $ | 65,768 |  |  | $ | 6,858 |
Offsetting upstream interest rate contracts |  | 2,697,522 |  |  | 2,583 |  |  | 3,994 |
Option contracts purchased |  | 40,000 |  |  | 131 |  |  | — |
Forwards and futures purchased |  | 9,217,350 |  |  | 17,029 |  |  | 3,187 |
Forwards and futures sold |  | 9,403,112 |  |  | 3,611 |  |  | 16,620 |
Derivatives Associated With Interest Rate Risk Management Activities | The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of September 30, 2020 and December 31, 2019:
|  | September 30, 2020
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Customer Interest Rate Contracts Hedging |  |  |  |  |  |
Hedging Instruments and Hedged Items: |  |  |  |  |  |
Customer interest rate contracts |  | $ | 6,667,600 |  |  | $ | 487,005 |  |  | $ | 303 |
Offsetting upstream interest rate contracts |  | 6,667,600 |  |  | 303 |  |  | 25,997 |
Debt Hedging |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |
Interest rate swaps |  | $ | 500,000 |  |  | $ | 13 |  |  | N/A
Hedged Items: |  |  |  |  |  |
Term borrowings: |  |  |  |  |  |
Par |  | N/A |  | N/A |  | $ | 500,000 |
Cumulative fair value hedging adjustments |  | N/A |  | N/A |  | 729 |
Unamortized premium (discount) and issuance costs |  | N/A |  | N/A |  | (74) |
Total carrying value |  | N/A |  | N/A |  | $ | 500,655 |
|  | December 31, 2019
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Customer Interest Rate Contracts Hedging |  |  |  |  |  |
Hedging Instruments and Hedged Items: |  |  |  |  |  |
Customer interest rate contracts |  | $ | 3,044,067 |  |  | $ | 90,394 |  |  | $ | 3,515 |
Offsetting upstream interest rate contracts |  | 3,044,067 |  |  | 3,537 |  |  | 9,735 |
Debt Hedging |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |
Interest rate swaps |  | $ | 500,000 |  |  | N/A |  | $ | 69 |
Hedged Items: |  |  |  |  |  |
Term borrowings: |  |  |  |  |  |
Par |  | N/A |  | N/A |  | $ | 500,000 |
Cumulative fair value hedging adjustments |  | N/A |  | N/A |  | (1,604) |
Unamortized premium (discount) and issuance costs |  | N/A |  | N/A |  | (740) |
Total carrying value |  | N/A |  | N/A |  | $ | 497,656 |
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 nine months ended September 30, 2020 and 2019:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
(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) |  | $ | (14,050) |  |  | $ | 44,375 |  |  | $ | 197,346 |  |  | $ | 124,193 |
Offsetting upstream interest rate contracts (a) |  | 14,050 |  |  | (44,375) |  |  | (197,346) |  |  | (124,193) |
Debt Hedging |  |  |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |  |  |
Interest rate swaps (b) |  | $ | (1,421) |  |  | $ | 1,994 |  |  | $ | 2,776 |  |  | $ | 12,969 |
Hedged Items: |  |  |  |  |  |  |  |
Term borrowings (a) (c) |  | 1,412 |  |  | (2,004) |  |  | (2,333) |  |  | (12,876) |
(a)Gains (losses) included in Other expense within the Consolidated Statements of Income. (b)Gains (losses) included in Interest expense. (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 September 30, 2020 and December 31, 2019:
|  | September 30, 2020
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Cash Flow Hedges |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |
Interest rate contracts |  | $ | 1,500,000 |  |  | $ | 35,606 |  |  | N/A
Hedged Items: |  |  |  |  |  |
Variability in cash flows related to debt instruments (primarily loans) |  | N/A |  | $ | 1,500,000 |  |  | N/A
|  | December 31, 2019
(Dollars in thousands) |  | Notional |  | Assets |  | Liabilities
Cash Flow Hedges |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |
Interest rate contracts |  | $ | 900,000 |  |  | N/A |  | $ | 241 |
Hedged Items: |  |  |  |  |  |
Variability in cash flows related to debt instruments (primarily loans) |  | N/A |  | $ | 900,000 |  |  | N/A
Gains/(Losses) on Derivatives Associated with Cash Flow Hedges | The following table summarizes gains (losses) on FHN’s derivatives associated with cash flow hedges for the three and nine months ended September 30, 2020 and 2019:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
(Dollars in thousands) |  | Gains (Losses) |  | Gains (Losses) |  | Gains (Losses) |  | Gains (Losses)
Cash Flow Hedges |  |  |  |  |  |
Hedging Instruments: |  |  |  |  |  |  |  |
Interest rate contracts (a) |  | $ | (7,799) |  |  | $ | 3,840 |  |  | $ | 9,644 |  |  | $ | 22,954 |
Gain (loss) recognized in Other comprehensive income (loss) |  | (805) |  |  | 1,855 |  |  | 13,998 |  |  | 13,367 |
Gain (loss) reclassified from AOCI into Interest income |  | (2,128) |  |  | 989 |  |  | (3,853) |  |  | 3,773 |
(a)Approximately $26.5 million of pre-tax gains 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 Balance Sheets as of September 30, 2020 and December 31, 2019:
|  |  |  |  |  |  |  | Gross amounts not offset in the Balance Sheets |  |
(Dollars in thousands) |  | Gross amounts of recognized assets |  | Gross amounts offset in the Balance Sheets |  | Net amounts of assets presented in the Balance Sheets (a) |  | Derivative liabilities available for offset |  | Collateral received |  | Net amount
Derivative assets: |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative contracts |  | $ | 787,139 |  |  | $ | — |  |  | $ | 787,139 |  |  | $ | (11,401) |  |  | $ | (369,510) |  |  | $ | 406,228 |
Forward contracts |  | 47,341 |  |  | — |  |  | 47,341 |  |  | (16,105) |  |  | (16,213) |  |  | 15,023 |
|  | $ | 834,480 |  |  | $ | — |  |  | $ | 834,480 |  |  | $ | (27,506) |  |  | $ | (385,723) |  |  | $ | 421,251 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative contracts |  | $ | 162,344 |  |  | $ | — |  |  | $ | 162,344 |  |  | $ | (5,604) |  |  | $ | (143,334) |  |  | $ | 13,406 |
Forward contracts |  | 20,640 |  |  | — |  |  | 20,640 |  |  | (13,292) |  |  | (2,000) |  |  | 5,348 |
|  | $ | 182,984 |  |  | $ | — |  |  | $ | 182,984 |  |  | $ | (18,896) |  |  | $ | (145,334) |  |  | $ | 18,754 |
(a)Included in Other assets on the Consolidated Balance Sheets. As of September 30, 2020 and December 31, 2019, $2.6 million and $0.1 million of derivative assets have been excluded from these tables because they are generally not subject to master netting or similar agreements.
Derivative Liabilities and Collateral Pledged | The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019:
|  |  |  |  |  |  |  | Gross amounts not offset in the Balance Sheets |  |
(Dollars in thousands) |  | Gross amounts of recognized liabilities |  | Gross amounts offset in the Balance Sheets |  | Net amounts of liabilities presented in the Balance Sheets (a) |  | Derivative assets available for offset |  | Collateral pledged |  | Net amount
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative contracts |  | $ | 47,047 |  |  | $ | — |  |  | $ | 47,047 |  |  | $ | (11,401) |  |  | $ | (30,829) |  |  | $ | 4,817 |
Forward contracts |  | 42,474 |  |  | — |  |  | 42,474 |  |  | (16,105) |  |  | (26,369) |  |  | — |
|  | $ | 89,521 |  |  | $ | — |  |  | $ | 89,521 |  |  | $ | (27,506) |  |  | $ | (57,198) |  |  | $ | 4,817 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative contracts |  | $ | 24,431 |  |  | $ | — |  |  | $ | 24,431 |  |  | $ | (5,604) |  |  | $ | (18,689) |  |  | $ | 138 |
Forward contracts |  | 19,807 |  |  | — |  |  | 19,807 |  |  | (13,292) |  |  | (6,515) |  |  | — |
|  | $ | 44,238 |  |  | $ | — |  |  | $ | 44,238 |  |  | $ | (18,896) |  |  | $ | (25,204) |  |  | $ | 138 |
(a)Included in Other liabilities on the Consolidated Balance Sheets. As of September 30, 2020 and December 31, 2019, $19.9 million and $23.2 million, respectively, of derivative liabilities (primarily Visa-related derivatives) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
Schedule of Fair Value Derivative Instruments, Statements of Financial Performance and Financial Position, Location | The notional and fair values of these contracts are presented in the table below. Balances and activity for periods prior to the IBKC merger were not significant.
| September 30, 2020
(Dollars in thousands) | Notional |  | Assets |  | Liabilities
Mortgage Banking Hedges |  |  |  |  |
Option contracts written | $ | 698,744 |  |  | $ | 21,677 |  |  | $ | 223 |
Forward contracts purchased | 753,660 |  |  | 859 |  |  | 2,577 |
The following table summarizes gains (losses) on FHN's derivatives associated with mortgage banking activities for the three and nine month periods ended September 30, 2020.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2020 |  | 2020
(Dollars in thousands) |  | Gains (Losses) |  | Gains (Losses)
Mortgage Banking Hedges |  |  |  |
Option contracts written |  | $ | 7,434 |  |  | $ | 7,434 |
Forward contracts purchased |  | (9,633) |  |  | (9,633) |

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