XML 36 R21.htm IDEA: XBRL DOCUMENT
v3.20.2

Business Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2020
Segment Reporting, Measurement Disclosures [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 the southern and southeastern U.S. and other selected markets. Regional banking also provides investments, wealth management, financial planning, trust services and asset management, mortgage banking, title, credit card, and cash management services. 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, gain (loss) on extinguishment of debt, acquisition- and integration-related costs, expenses associated with rebranding initiatives, and various charges related to restructuring, repositioning, and efficiency efforts. The non-strategic segment consists of run-off consumer lending activities, 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) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Consolidated |  |  |  |  |  |  |  |
Net interest income |  | $ | 532,365 |  |  | $ | 300,676 |  |  | $ | 1,140,511 |  |  | $ | 898,794 |
Provision for credit losses (a) |  | 227,000 |  |  | 14,366 |  |  | 502,388 |  |  | 36,273 |
Noninterest income |  | 822,923 |  |  | 171,735 |  |  | 1,203,948 |  |  | 470,773 |
Noninterest expense |  | 587,040 |  |  | 308,306 |  |  | 1,210,139 |  |  | 904,883 |
Income before income taxes |  | 541,248 |  |  | 149,739 |  |  | 631,932 |  |  | 428,411 |
Provision for income taxes |  | 2,210 |  |  | 35,796 |  |  | 19,757 |  |  | 97,321 |
Net income |  | $ | 539,038 |  |  | $ | 113,943 |  |  | $ | 612,175 |  |  | $ | 331,090 |
Average assets |  | $ | 81,683,111 |  |  | $ | 41,940,901 |  |  | $ | 57,810,478 |  |  | $ | 41,359,574 |
(a)Increase in provision expense for the three and nine months ended September 30, 2020 is primarily due to provision related to non-PCD loans acquired in the IBKC merger and Truist branch acquisition and the economic forecast attributable to the COVID-19 pandemic.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in thousands) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Regional Banking |  |  |  |  |  |  |  |
Net interest income |  | $ | 583,907 |  |  | $ | 302,467 |  |  | $ | 1,233,654 |  |  | $ | 885,932 |
Provision for credit losses |  | 227,326 |  |  | 19,839 |  |  | 501,453 |  |  | 50,967 |
Noninterest income |  | 172,457 |  |  | 85,930 |  |  | 333,669 |  |  | 240,555 |
Noninterest expense |  | 373,680 |  |  | 193,956 |  |  | 768,870 |  |  | 586,697 |
Income before income taxes |  | 155,358 |  |  | 174,602 |  |  | 297,000 |  |  | 488,823 |
Provision for income taxes |  | 34,744 |  |  | 41,795 |  |  | 65,497 |  |  | 115,266 |
Net income |  | $ | 120,614 |  |  | $ | 132,807 |  |  | $ | 231,503 |  |  | $ | 373,557 |
Average assets |  | $ | 64,371,210 |  |  | $ | 31,632,768 |  |  | $ | 44,170,906 |  |  | $ | 30,231,372 |
Fixed Income |  |  |  |  |  |  |  |
Net interest income |  | $ | 11,632 |  |  | $ | 5,309 |  |  | $ | 36,088 |  |  | $ | 18,809 |
Noninterest income |  | 110,783 |  |  | 77,808 |  |  | 319,741 |  |  | 197,238 |
Noninterest expense |  | 67,395 |  |  | 67,582 |  |  | 231,488 |  |  | 173,656 |
Income before income taxes |  | 55,020 |  |  | 15,535 |  |  | 124,341 |  |  | 42,391 |
Provision for income taxes |  | 13,456 |  |  | 3,707 |  |  | 30,236 |  |  | 10,001 |
Net income |  | $ | 41,564 |  |  | $ | 11,828 |  |  | $ | 94,105 |  |  | $ | 32,390 |
Average assets |  | $ | 3,002,282 |  |  | $ | 2,882,478 |  |  | $ | 3,341,255 |  |  | $ | 2,952,925 |
Corporate |  |  |  |  |  |  |  |
Net interest income (expense) |  | $ | (69,187) |  |  | $ | (13,252) |  |  | $ | (145,847) |  |  | $ | (28,136) |
Noninterest income |  | 539,668 |  |  | 7,359 |  |  | 548,891 |  |  | 30,112 |
Noninterest expense |  | 142,894 |  |  | 42,297 |  |  | 199,461 |  |  | 139,052 |
Income (loss) before income taxes |  | 327,587 |  |  | (48,190) |  |  | 203,583 |  |  | (137,076) |
Provision (benefit) for income taxes |  | (46,785) |  |  | (11,632) |  |  | (77,690) |  |  | (36,416) |
Net income (loss) |  | $ | 374,372 |  |  | $ | (36,558) |  |  | $ | 281,273 |  |  | $ | (100,660) |
Average assets |  | $ | 13,595,544 |  |  | $ | 6,434,633 |  |  | $ | 9,527,471 |  |  | $ | 7,098,500 |
Non-Strategic |  |  |  |  |  |  |  |
Net interest income |  | $ | 6,013 |  |  | $ | 6,152 |  |  | $ | 16,616 |  |  | $ | 22,189 |
Provision/(provision credit) for loan losses |  | (326) |  |  | (5,473) |  |  | 935 |  |  | (14,694) |
Noninterest income |  | 15 |  |  | 638 |  |  | 1,647 |  |  | 2,868 |
Noninterest expense |  | 3,071 |  |  | 4,471 |  |  | 10,320 |  |  | 5,478 |
Income before income taxes |  | 3,283 |  |  | 7,792 |  |  | 7,008 |  |  | 34,273 |
Provision for income taxes |  | 795 |  |  | 1,926 |  |  | 1,714 |  |  | 8,470 |
Net income |  | $ | 2,488 |  |  | $ | 5,866 |  |  | $ | 5,294 |  |  | $ | 25,803 |
Average assets |  | $ | 714,075 |  |  | $ | 991,022 |  |  | $ | 770,846 |  |  | $ | 1,076,777 |
Certain previously reported amounts have been reclassified to agree with current presentation. The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the three months ended September 30, 2020 and 2019:
| Three months ended September 30, 2020
(Dollars in thousands) | Regional Banking |  | Fixed Income |  | Corporate |  | Non-Strategic |  | Consolidated
Fixed income (a) | 380 |  |  | 110,563 |  |  | — |  |  | — |  |  | 110,943 |
Mortgage banking and title income | 65,569 |  |  | — |  |  | 23 |  |  | (89) |  |  | 65,503 |
Deposit transactions and cash management | 40,500 |  |  | — |  |  | 1,528 |  |  | 28 |  |  | 42,056 |
Brokerage, management fees and commissions | 19,595 |  |  | — |  |  | (1,704) |  |  | — |  |  | 17,891 |
Trust services and investment management | 14,599 |  |  | — |  |  | (2,858) |  |  | — |  |  | 11,741 |
Bankcard income | 10,150 |  |  | — |  |  | 277 |  |  | 30 |  |  | 10,457 |
Securities gains (losses), net (b) | — |  |  | — |  |  | (1,170) |  |  | — |  |  | (1,170) |
Purchase accounting gain | — |  |  | — |  |  | 532,150 |  |  | — |  |  | 532,150 |
Other income (c) | 21,664 |  |  | 220 |  |  | 11,422 |  |  | 46 |  |  | 33,352 |
Total noninterest income | $ | 172,457 |  |  | $ | 110,783 |  |  | $ | 539,668 |  |  | $ | 15 |  |  | $ | 822,923 |
(a)Includes $9.9 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards Codification ("ASC") 606, "Revenue From Contracts With Customers." (b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. (c)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606.
| Three months ended September 30, 2019
(Dollars in thousands) | Regional Banking |  | Fixed Income |  | Corporate |  | Non- Strategic |  | Consolidated
Fixed income (a) | 57 |  |  | 77,588 |  |  | — |  |  | — |  |  | 77,645 |
Mortgage banking and title income | 1,643 |  |  | — |  |  | — |  |  | 376 |  |  | 2,019 |
Deposit transactions and cash management | 32,624 |  |  | — |  |  | 1,721 |  |  | 34 |  |  | 34,379 |
Brokerage, management fees and commissions | 14,157 |  |  | — |  |  | — |  |  | — |  |  | 14,157 |
Trust services and investment management | 7,190 |  |  | — |  |  | (27) |  |  | — |  |  | 7,163 |
Bankcard income | 7,030 |  |  | 11 |  |  | 63 |  |  | (87) |  |  | 7,017 |
Securities gains (losses), net (b) | — |  |  | — |  |  | 97 |  |  | — |  |  | 97 |
Other income (c) | 23,229 |  |  | 209 |  |  | 5,505 |  |  | 315 |  |  | 29,258 |
Total noninterest income | $ | 85,930 |  |  | $ | 77,808 |  |  | $ | 7,359 |  |  | $ | 638 |  |  | $ | 171,735 |
Certain previously reported amounts have been reclassified to agree with current presentation. (a)Includes $9.2 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards Codification ("ASC") 606, "Revenue From Contracts With Customers." (b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. (c)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606. The following tables reflect a disaggregation of FHN’s noninterest income by major product line and reportable segment for the nine months ended September 30, 2020 and 2019:
| Nine Months Ended September 30, 2020
(Dollars in thousands) | Regional Banking |  | Fixed Income |  | Corporate |  | Non-Strategic |  | Consolidated
Fixed income (a) | 582 |  |  | 318,417 |  |  | — |  |  | — |  |  | 318,999 |
Deposit transactions and cash management | 98,906 |  |  | — |  |  | 4,131 |  |  | 96 |  |  | 103,133 |
Mortgage banking and title income | 71,168 |  |  | — |  |  | 23 |  |  | 881 |  |  | 72,072 |
Brokerage, management fees and commissions | 48,799 |  |  | — |  |  | (1,703) |  |  | — |  |  | 47,096 |
Trust services and investment management | 29,562 |  |  | — |  |  | (2,893) |  |  | — |  |  | 26,669 |
Bankcard income | 23,853 |  |  | — |  |  | 421 |  |  | 88 |  |  | 24,362 |
Securities gains (losses), net (b) | — |  |  | — |  |  | (2,638) |  |  | — |  |  | (2,638) |
Purchase accounting gain | — |  |  | — |  |  | 532,150 |  |  | — |  |  | 532,150 |
Other income (c)(d) | 60,799 |  |  | 1,324 |  |  | 19,400 |  |  | 582 |  |  | 82,105 |
Total noninterest income | $ | 333,669 |  |  | $ | 319,741 |  |  | $ | 548,891 |  |  | $ | 1,647 |  |  | $ | 1,203,948 |
(a)Includes $28.6 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards Codification ("ASC") 606, "Revenue From Contracts With Customers." (b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. (c)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606. (d)Corporate balance includes negative deferred compensation income driven by equity market valuations.
| Nine Months Ended September 30, 2019
(Dollars in thousands) | Regional Banking |  | Fixed Income |  | Corporate |  | Non- Strategic |  | Consolidated
Fixed income (a) | 120 |  |  | 196,582 |  |  | — |  |  | 1,106 |  |  | 197,808 |
Mortgage banking and title income | 5,119 |  |  | — |  |  | — |  |  | 1,358 |  |  | 6,477 |
Deposit transactions and cash management | 93,316 |  |  | 4 |  |  | 4,956 |  |  | 98 |  |  | 98,374 |
Brokerage, management fees and commissions | 40,910 |  |  | — |  |  | — |  |  | — |  |  | 40,910 |
Trust services and investment management | 22,148 |  |  | — |  |  | (71) |  |  | — |  |  | 22,077 |
Bankcard income | 20,670 |  |  | 11 |  |  | 185 |  |  | (542) |  |  | 20,324 |
Securities gains (losses), net (b) | — |  |  | — |  |  | 177 |  |  | — |  |  | 177 |
Purchase accounting gain | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other income (c)(d) | 58,272 |  |  | 641 |  |  | 24,865 |  |  | 848 |  |  | 84,626 |
Total noninterest income | $ | 240,555 |  |  | $ | 197,238 |  |  | $ | 30,112 |  |  | $ | 2,868 |  |  | $ | 470,773 |
Certain previously reported amounts have been reclassified to agree with current presentation. (a)Includes $23.6 million of underwriting, portfolio advisory, and other noninterest income in scope of Accounting Standards Codification ("ASC") 606, "Revenue From Contracts With Customers." (b)Represents noninterest income excluded from the scope of ASC 606. Amount is presented for informational purposes to reconcile total noninterest income. (c)Includes other service charges, ATM and interchange fees, electronic banking fees, and insurance commissions in scope of ASC 606.

X
- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingMeasurementDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration