Loans

The following table provides the balance of loans, net of unearned income, by portfolio segment as of September 30, 2017 and December 31, 2016:



	September 30		December 31
(Dollars in thousands)	2017		2016
Commercial:
Commercial, financial, and industrial	$	12,791,844	$	12,148,087
Commercial real estate	2,251,015		2,135,523
Consumer:
Consumer real estate (a)	4,369,717		4,523,752
Permanent mortgage	403,082		423,125
Credit card & other	350,433		359,033
Loans, net of unearned income	$	20,166,091	$	19,589,520
Allowance for loan losses	194,867		202,068
Total net loans	$	19,971,224	$	19,387,452


(a)	Balances as of September 30, 2017 and December 31, 2016, include $26.2 million and $35.9 million of restricted real estate loans, respectively. See Note 13—Variable Interest Entities for additional information.

COMPONENTS OF THE LOAN PORTFOLIO

The loan portfolio is disaggregated into segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally determined based on the initial measurement attribute (i.e., amortized cost or purchased credit-impaired), risk characteristics of the loan, and FHN’s method for monitoring and assessing credit risk. Commercial loan portfolio segments include commercial, financial and industrial (“C&I”) and commercial real estate. Commercial classes within C&I include general C&I, loans to mortgage companies, the trust preferred loans (“TRUPS”) (i.e. long-term unsecured loans to bank and insurance-related businesses) portfolio and purchased credit-impaired (“PCI”) loans. Loans to mortgage companies include commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Commercial classes within CRE include income CRE, residential CRE and PCI loans. Consumer loan portfolio segments include consumer real estate, permanent mortgage, and the credit card and other portfolio. Consumer classes include home equity lines of credit (“HELOCs”), real estate (“R/E”) installment and PCI loans within the consumer real estate segment, permanent mortgage (which is both a segment and a class), and credit card and other.

Concentrations

FHN has a concentration of residential real estate loans (24 percent of total loans), the majority of which is in the consumer real estate segment (22 percent of total loans). Loans to finance and insurance companies total $2.8 billion (22 percent of the C&I portfolio, or 14 percent of the total loans). FHN had loans to mortgage companies totaling $2.0 billion (15 percent of the C&I segment, or 10 percent of total loans) as of September 30, 2017. As a result, 37 percent of the C&I segment is sensitive to impacts on the financial services industry.

Purchased Credit-Impaired Loans

The following table presents a rollforward of the accretable yield for the three and nine months ended September 30, 2017 and 2016:



	Three Months Ended September 30						Nine months ended September 30
(Dollars in thousands)	2017			2016			2017			2016
Balance, beginning of period	$	4,045		$	6,171		$	6,871		$	8,542
Addition	—			2,883			—			2,883
Accretion	(642		)	(837		)	(2,412		)	(2,984		)
Adjustment for payoffs	(198		)	(179		)	(1,232		)	(4,408		)
Adjustment for charge-offs	—			—			—			(674		)
Adjustment for pool excess recovery (a)	—			—			(222		)	—
Increase/(decrease) in accretable yield (b)	(2		)	686			112			5,398
Other	—			—			86			(33		)
Balance, end of period	$	3,203		$	8,724		$	3,203		$	8,724


(a)	Represents the removal of accretable difference for the remaining loans in a pool which is now in a recovery state.


(b)	Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

At September 30, 2017, the ALLL related to PCI loans was $3.1 million compared to $.7 million at December 31, 2016. A loan loss provision expense related to PCI loans of $2.6 million was recognized during the three months ended September 30, 2017, as compared to $.3 million recognized during the three months ended September 30, 2016. The loan loss provision expense related to PCI loans of $2.4 million was recognized during the nine months ended September 30, 2017. The loan loss provision related to PCI loans was not material during the nine months ended September 30, 2016.

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of September 30, 2017 and December 31, 2016:



	September 30, 2017				December 31, 2016
(Dollars in thousands)	Carrying value		Unpaid balance		Carrying value		Unpaid balance
Commercial, financial and industrial	$	17,903	$	21,239	$	40,368	$	41,608
Commercial real estate	3,842		4,933		4,763		6,514
Consumer real estate	940		1,259		1,172		1,677
Credit card and other	—		—		52		64
Total	$	22,685	$	27,431	$	46,355	$	49,863

Impaired Loans

The following tables provide information at September 30, 2017 and December 31, 2016, by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, excluding any valuation allowance but including any direct write-down of the investment. For purposes of this disclosure, PCI loans and the TRUPs valuation allowance have been excluded.



	September 30, 2017						December 31, 2016
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	2,055	$	10,769	$	—	$	10,419	$	16,636	$	—
Income CRE	—		—		—		—		—		—
Total	$	2,055	$	10,769	$	—	$	10,419	$	16,636	$	—
Consumer:
HELOC (a)	$	10,513	$	20,372	$	—	$	11,383	$	21,662	$	—
R/E installment loans (a)	4,431		5,135		—		3,957		4,992		—
Permanent mortgage (a)	5,481		7,604		—		5,311		7,899		—
Total	$	20,425	$	33,111	$	—	$	20,651	$	34,553	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	26,876	$	27,345	$	5,970	$	34,334	$	34,470	$	3,294
TRUPS	3,097		3,700		925		3,209		3,700		925
Income CRE	1,525		1,525		43		1,831		2,209		62
Residential CRE	795		1,263		83		1,293		1,761		132
Total	$	32,293	$	33,833	$	7,021	$	40,667	$	42,140	$	4,413
Consumer:
HELOC	$	74,009	$	76,587	$	14,174	$	84,711	$	87,126	$	15,927
R/E installment loans	46,905		47,708		9,762		53,409		54,559		12,875
Permanent mortgage	78,600		90,003		12,601		88,615		100,983		12,470
Credit card & other	544		544		246		306		306		133
Total	$	200,058	$	214,842	$	36,783	$	227,041	$	242,974	$	41,405
Total commercial	$	34,348	$	44,602	$	7,021	$	51,086	$	58,776	$	4,413
Total consumer	$	220,483	$	247,953	$	36,783	$	247,692	$	277,527	$	41,405
Total impaired loans	$	254,831	$	292,555	$	43,804	$	298,778	$	336,303	$	45,818


(a)	All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.



	Three Months Ended September 30								Nine months ended September 30
	2017				2016				2017				2016
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	5,771	$	—	$	13,708	$	—	$	8,706	$	—	$	12,088	$	—
Income CRE	—		—		1,234		—		—		—		2,057		—
Total	$	5,771	$	—	$	14,942	$	—	$	8,706	$	—	$	14,145	$	—
Consumer:
HELOC (a)	$	10,225	$	—	$	11,273	$	—	$	10,536	$	—	$	11,100	$	—
R/E installment loans (a)	4,182		—		4,158		—		4,014		—		4,333		—
Permanent mortgage (a)	5,693		—		4,280		—		5,701		—		4,292		—
Total	$	20,100	$	—	$	19,711	$	—	$	20,251	$	—	$	19,725	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	26,144	$	193	$	33,433	$	289	$	29,136	$	597	$	29,896	$	668
TRUPS	3,117		—		3,258		—		3,157		—		3,291		—
Income CRE	1,628		11		3,211		15		1,737		39		4,376		55
Residential CRE	1,044		—		1,355		5		1,210		10		1,376		17
Total	$	31,933	$	204	$	41,257	$	309	$	35,240	$	646	$	38,939	$	740
Consumer:
HELOC	$	74,894	$	554	$	87,919	$	546	$	78,859	$	1,695	$	88,266	$	1,527
R/E installment loans	47,628		315		57,775		357		49,634		950		58,890		1,019
Permanent mortgage	79,305		616		90,697		544		82,186		1,805		92,716		1,602
Credit card & other	452		3		348		4		351		8		353		10
Total	$	202,279	$	1,488	$	236,739	$	1,451	$	211,030	$	4,458	$	240,225	$	4,158
Total commercial	$	37,704	$	204	$	56,199	$	309	$	43,946	$	646	$	53,084	$	740
Total consumer	$	222,379	$	1,488	$	256,450	$	1,451	$	231,281	$	4,458	$	259,950	$	4,158
Total impaired loans	$	260,083	$	1,692	$	312,649	$	1,760	$	275,227	$	5,104	$	313,034	$	4,898


(a)	All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

Asset Quality Indicators

FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default (“PD”) and the loss given default (“LGD”) for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. This credit grading system is intended to identify and measure the credit quality of the loan portfolio by analyzing the migration of loans between grading categories. It is also integral to the estimation methodology utilized in determining the allowance for loan losses since an allowance is established for pools of commercial loans based on the credit grade assigned. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Pass loan grades are required to be reassessed annually or earlier whenever there has been a material change in the financial condition of the borrower or risk characteristics of the relationship. All commercial loans over $1 million and certain commercial loans over $500,000 that are graded 13 or worse are reassessed on a quarterly basis. Loan grading discipline is regularly reviewed internally by Credit Assurance Services to determine if the process continues to result in accurate loan grading across the portfolio. FHN may utilize availability of guarantors/sponsors to support lending decisions during the credit underwriting process and when determining the assignment of internal loan grades. LGD grades are assigned based on a scale of 1-12 and represent FHN’s expected recovery based on collateral type in the event a loan defaults. See Note 5 – Allowance for Loan Losses for further discussion on the credit grading system.

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of September 30, 2017 and December 31, 2016:



	September 30, 2017
(Dollars in thousands)	General C&I		Loans to Mortgage Companies		TRUPS (a)		Income CRE		Residential CRE		Total		Percentage of Total		Allowance for Loan Losses
PD Grade:
1	$	583,818	$	—	$	—	$	1,832	$	—	$	585,650	4	%	$	81
2	905,992		—		—		3,777		112		909,881		6		385
3	500,056		643,772		—		156,694		—		1,300,522		9		277
4	1,026,592		578,566		—		295,781		212		1,901,151		13		955
5	1,460,107		211,846		—		443,751		2,053		2,117,757		14		7,697
6	1,519,911		362,685		—		413,342		6,114		2,302,052		14		9,857
7	1,705,394		60,135		—		446,493		8,372		2,220,394		14		13,297
8	1,042,209		34,623		—		259,813		4,908		1,341,553		9		20,963
9	556,662		60,954		—		66,082		4,276		687,974		5		11,376
10	395,187		—		—		31,570		6,558		433,315		3		8,502
11	217,190		13,548		—		24,878		4,819		260,435		2		6,730
12	185,929		—		—		10,798		2,709		199,436		1		7,065
13	142,729		—		304,236		38,979		91		486,035		3		6,927
14,15,16	226,924		26		—		10,062		819		237,831		2		23,974
Collectively evaluated for impairment	10,468,700		1,966,155		304,236		2,203,852		41,043		14,983,986		99		118,086
Individually evaluated for impairment	28,931		—		3,097		1,525		795		34,348		1		7,021
Purchased credit-impaired loans	20,725		—		—		3,792		8		24,525		—		2,781
Total commercial loans	$	10,518,356	$	1,966,155	$	307,333	$	2,209,169	$	41,846	$	15,042,859	100	%	$	127,888



	December 31, 2016
(Dollars in thousands)	General C&I		Loans to Mortgage Companies		TRUPS (a)		Income CRE		Residential CRE		Total		Percentage of Total		Allowance for Loan Losses
PD Grade:
1	$	465,179	$	—	$	—	$	1,078	$	—	$	466,257	3	%	$	77
2	791,183		—		—		11,742		87		803,012		6		403
3	491,386		462,486		—		153,670		—		1,107,542		8		304
4	978,282		332,107		—		222,422		—		1,532,811		11		953
5	1,232,401		275,209		—		365,653		702		1,873,965		13		6,670
6	1,540,519		614,109		—		338,344		9,338		2,502,310		17		10,403
7	1,556,117		317,283		—		352,390		2,579		2,228,369		16		14,010
8	963,359		30,974		—		425,503		2,950		1,422,786		10		25,986
9	611,774		4,299		—		105,277		4,417		725,767		5		13,857
10	355,359		8,663		—		50,484		9,110		423,616		3		8,400
11	238,230		—		—		20,600		6,541		265,371		2		6,556
12	170,531		—		—		15,395		4,168		190,094		1		6,377
13	121,276		—		304,236		6,748		311		432,571		3		4,225
14,15,16	194,572		59		—		16,313		1,659		212,603		1		20,297
Collectively evaluated for impairment	9,710,168		2,045,189		304,236		2,085,619		41,862		14,187,074		99		118,518
Individually evaluated for impairment	44,753		—		3,209		1,831		1,293		51,086		1		4,413
Purchased credit-impaired loans	40,532		—		—		4,583		335		45,450		—		319
Total commercial loans	$	9,795,453	$	2,045,189	$	307,445	$	2,092,033	$	43,490	$	14,283,610	100	%	$	123,250


(a)	Balances as of September 30, 2017 and December 31, 2016, presented net of a $25.5 million valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade is “13”.

The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan-types, FHN is able to utilize the Fair Isaac Corporation (“FICO”) score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio.

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of September 30, 2017 and December 31, 2016:



	September 30, 2017						December 31, 2016
	HELOC		R/E Installment Loans		Permanent Mortgage		HELOC		R/E Installment Loans		Permanent Mortgage
FICO score 740 or greater	58.5	%	71.8	%	45.1	%	56.9	%	70.3	%	45.0	%
FICO score 720-739	8.8		8.1		12.8		8.8		8.3		9.5
FICO score 700-719	8.2		6.6		11.0		8.6		6.8		9.2
FICO score 660-699	12.1		8.4		15.3		13.2		8.4		17.1
FICO score 620-659	5.6		2.7		7.0		5.6		3.5		9.1
FICO score less than 620 (a)	6.8		2.4		8.8		6.9		2.7		10.1
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%


(a)	For this group, a majority of the loan balances had FICO scores at the time of the origination that exceeded 620 but have since deteriorated as the loans have seasoned.

Nonaccrual and Past Due Loans

The following table reflects accruing and non-accruing loans by class on September 30, 2017:



	Accruing								Non-Accruing
(Dollars in thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total Accruing		Current		30-89 Days Past Due		90+ Days Past Due		Total Non- Accruing		Total Loans
Commercial (C&I):
General C&I	$	10,462,376	$	19,324	$	129	$	10,481,829	$	5,260	$	1,252	$	9,290	$	15,802	$	10,497,631
Loans to mortgage companies	1,966,129		—		—		1,966,129		—		—		26		26		1,966,155
TRUPS (a)	304,236		—		—		304,236		—		—		3,097		3,097		307,333
Purchased credit-impaired loans	6,080		70		14,575		20,725		—		—		—		—		20,725
Total commercial (C&I)	12,738,821		19,394		14,704		12,772,919		5,260		1,252		12,413		18,925		12,791,844
Commercial real estate:
Income CRE	2,204,042		490		—		2,204,532		105		—		740		845		2,205,377
Residential CRE	41,043		—		—		41,043		—		—		795		795		41,838
Purchased credit-impaired loans	3,800		—		—		3,800		—		—		—		—		3,800
Total commercial real estate	2,248,885		490		—		2,249,375		105		—		1,535		1,640		2,251,015
Consumer real estate:
HELOC	1,375,690		14,312		8,518		1,398,520		43,188		3,217		9,020		55,425		1,453,945
R/E installment loans	2,883,593		5,855		3,609		2,893,057		15,510		2,875		3,035		21,420		2,914,477
Purchased credit-impaired loans	1,198		—		97		1,295		—		—		—		—		1,295
Total consumer real estate	4,260,481		20,167		12,224		4,292,872		58,698		6,092		12,055		76,845		4,369,717
Permanent mortgage	369,546		3,333		2,753		375,632		12,557		577		14,316		27,450		403,082
Credit card & other:
Credit card	191,714		1,254		1,081		194,049		—		—		—		—		194,049
Other	155,460		610		188		156,258		—		—		126		126		156,384
Purchased credit-impaired loans	—		—		—		—		—		—		—		—		—
Total credit card & other	347,174		1,864		1,269		350,307		—		—		126		126		350,433
Total loans, net of unearned income	$	19,964,907	$	45,248	$	30,950	$	20,041,105	$	76,620	$	7,921	$	40,445	$	124,986	$	20,166,091

(a) TRUPS is presented net of the valuation allowance of $25.5 million.

The following table reflects accruing and non-accruing loans by class on December 31, 2016:



	Accruing								Non-Accruing
(Dollars in thousands)	Current		30-89 Days Past Due		90+ Days Past Due		Total Accruing		Current		30-89 Days Past Due		90+ Days Past Due		Total Non- Accruing		Total Loans
Commercial (C&I):
General C&I	$	9,720,231	$	5,199	$	23	$	9,725,453	$	16,106	$	374	$	12,988	$	29,468	$	9,754,921
Loans to mortgage companies	2,041,408		3,722		—		2,045,130		—		—		59		59		2,045,189
TRUPS (a)	304,236		—		—		304,236		—		—		3,209		3,209		307,445
Purchased credit-impaired loans	40,113		185		234		40,532		—		—		—		—		40,532
Total commercial (C&I)	12,105,988		9,106		257		12,115,351		16,106		374		16,256		32,736		12,148,087
Commercial real estate:
Income CRE	2,085,455		14		—		2,085,469		232		460		1,289		1,981		2,087,450
Residential CRE	42,182		178		—		42,360		—		—		795		795		43,155
Purchased credit-impaired loans	4,809		109		—		4,918		—		—		—		—		4,918
Total commercial real estate	2,132,446		301		—		2,132,747		232		460		2,084		2,776		2,135,523
Consumer real estate:
HELOC	1,602,640		17,997		10,859		1,631,496		46,964		4,201		8,922		60,087		1,691,583
R/E installment loans	2,794,866		7,844		5,158		2,807,868		17,989		2,383		2,353		22,725		2,830,593
Purchased credit-impaired loans	1,319		164		93		1,576		—		—		—		—		1,576
Total consumer real estate	4,398,825		26,005		16,110		4,440,940		64,953		6,584		11,275		82,812		4,523,752
Permanent mortgage	385,972		4,544		5,428		395,944		11,867		2,194		13,120		27,181		423,125
Credit card & other:
Credit card	188,573		1,622		1,456		191,651		—		—		—		—		191,651
Other	166,062		992		134		167,188		—		—		142		142		167,330
Purchased credit-impaired loans	52		—		—		52		—		—		—		—		52
Total credit card & other	354,687		2,614		1,590		358,891		—		—		142		142		359,033
Total loans, net of unearned income	$	19,377,918	$	42,570	$	23,385	$	19,443,873	$	93,158	$	9,612	$	42,877	$	145,647	$	19,589,520

(a) TRUPS is presented net of the valuation allowance of $25.5 million.

Troubled Debt Restructurings

As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately.

A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR.

For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loans are generally structured using parameters of U.S. government-sponsored programs such as the former Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 1 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increases 2 percent per year until the original interest rate prior to modification is achieved. Permanent mortgage TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt-to-income ratio. After 5 years, the interest rate steps up 1 percent every year until it reaches the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities may be extended to 40 years on permanent mortgages and to 30 years for consumer real estate loans. Within the credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for 6 months to 1 year. In the credit card workout program, customers are granted a rate reduction to 0 percent and term extensions for up to 5 years to pay off the remaining balance.

Despite the absence of a loan modification, the discharge of personal liability through bankruptcy proceedings is considered a concession. As a result, FHN classifies all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs.

On September 30, 2017 and December 31, 2016, FHN had $241.6 million and $285.2 million of portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $38.6 million, or 16 percent as of September 30, 2017, and $44.9 million, or 16 percent as of December 31, 2016. Additionally, $63.2 million and $69.3 million of loans held-for-sale as of September 30, 2017 and December 31, 2016, respectively, were classified as TDRs.

The following tables reflect portfolio loans that were classified as TDRs during the three and nine months ended September 30, 2017 and 2016:



	Three Months Ended September 30, 2017					Nine Months Ended September 30, 2017
(Dollars in thousands)	Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial (C&I):
General C&I	—	$	—	$	—	2	$	842	$	836
Total commercial (C&I)	—	—		—		2	842		836
Consumer real estate:
HELOC	45	4,451		4,396		107	9,333		9,139
R/E installment loans	15	1,630		1,622		43	3,386		3,306
Total consumer real estate	60	6,081		6,018		150	12,719		12,445
Permanent mortgage	2	34		32		11	2,043		2,028
Credit card & other	37	261		251		66	426		411
Total troubled debt restructurings	99	$	6,376	$	6,301	229	$	16,030	$	15,720

	Three Months Ended September 30, 2016					Nine Months Ended September 30, 2016
(Dollars in thousands)	Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial (C&I):
General C&I	2	$	419	$	419	7	$	20,302	$	19,194
Total commercial (C&I)	2	419		419		7	20,302		19,194
Commercial real estate:
Income CRE	1	100		99		1	100		99
Total commercial real estate	1	100		99		1	100		99
Consumer real estate:
HELOC	48	5,720		5,573		200	18,418		18,189
R/E installment loans	10	345		337		44	4,569		4,846
Total consumer real estate	58	6,065		5,910		244	22,987		23,035
Permanent mortgage	2	710		704		6	1,551		1,544
Credit card & other	10	45		44		15	66		64
Total troubled debt restructurings	73	$	7,339	$	7,176	273	$	45,006	$	43,936

The following tables present TDRs which re-defaulted during the three and nine months ended September 30, 2017 and 2016, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.



	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
(Dollars in thousands)	Number	Recorded Investment		Number	Recorded Investment
Commercial (C&I):
General C&I	1	$	1,763	4	$	9,770
Total commercial (C&I)	1	1,763		4	9,770
Commercial real estate:
Income CRE	1	88		1	88
Total commercial real estate	1	88		1	88
Consumer real estate:
HELOC	—	—		4	685
Total consumer real estate	—	—		4	685
Permanent mortgage	1	89		2	627
Credit card & other	2	12		5	30
Total troubled debt restructurings	5	$	1,952	16	$	11,200

	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
(Dollars in thousands)	Number	Recorded Investment		Number	Recorded Investment
Consumer real estate:
HELOC	—	$	—	2	$	138
R/E installment loans	—	—		1	180
Total consumer real estate	—	—		3	318
Total troubled debt restructurings	—	$	—	3	$	318