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Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2019
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Allowance for Loan Losses Allowance for Loan Losses
The ALLL includes the following components: reserves for commercial loans evaluated based on pools of credit graded loans and reserves for pools of smaller-balance homogeneous consumer loans, both determined in accordance with ASC 450-20-50. The reserve factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics and are subject to qualitative adjustments by management to reflect current events, trends, and conditions (including economic considerations and trends). The current economic conditions and trends, performance of the housing market, unemployment levels, labor participation rate, regulatory guidance, and both positive and negative portfolio segment-specific trends, are examples of additional factors considered by management in determining the ALLL. Additionally, management considers the inherent uncertainty of quantitative models that are driven by historical loss data. Management evaluates the periods of historical losses that are the basis for the loss rates used in the quantitative models and selects historical loss periods that are believed to be the most reflective of losses inherent in the loan portfolio as of the balance sheet date. Management also periodically reviews analysis of the loss emergence period which is the amount of time it takes for a loss to be confirmed (initial charge-off) after a loss event has occurred. FHN performs extensive studies as it relates to the historical loss periods used in the model and the loss emergence period and model assumptions are adjusted accordingly. The ALLL also includes reserves determined in accordance with ASC 310-10-35 for loans determined by management to be individually impaired and an allowance associated with PCI loans. See Note 1 – Summary of Significant Accounting Policies and Note 5 - Allowance for Loan Losses in the Notes to Consolidated Financial Statements on FHN’s Form 10-K for the year ended December 31, 2018, for additional information about the policies and methodologies used in the aforementioned components of the ALLL.
The following table provides a rollforward of the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2019 and 2018:
(Dollars in thousands)
 
C&I
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Permanent
Mortgage
 
Credit Card
and Other
 
Total
Balance as of April 1, 2019
 
$
103,713

 
$
34,382

 
$
24,073

 
$
10,081

 
$
12,662

 
$
184,911

Charge-offs
 
(6,590
)
 
(121
)
 
(1,538
)
 
(176
)
 
(3,798
)
 
(12,223
)
Recoveries
 
519

 
(88
)
 
4,514

 
1,011

 
1,105

 
7,061

Provision/(provision credit) for loan losses
 
18,454

 
(1,220
)
 
(4,192
)
 
(2,241
)
 
2,199

 
13,000

Balance as of June 30, 2019
 
116,096

 
32,953

 
22,857

 
8,675

 
12,168

 
192,749

Balance as of January 1, 2019
 
98,947

 
31,311

 
26,439

 
11,000

 
12,727

 
180,424

Charge-offs
 
(9,691
)
 
(555
)
 
(4,338
)
 
(180
)
 
(7,986
)
 
(22,750
)
Recoveries
 
1,348

 
(31
)
 
7,967

 
1,599

 
2,192

 
13,075

Provision/(provision credit) for loan losses
 
25,492

 
2,228

 
(7,211
)
 
(3,744
)
 
5,235

 
22,000

Balance as of June 30, 2019
 
116,096

 
32,953

 
22,857

 
8,675

 
12,168

 
192,749

Allowance - individually evaluated for impairment
 
8,484

 
—

 
14,079

 
8,176

 
442

 
31,181

Allowance - collectively evaluated for impairment
 
106,758

 
32,953

 
7,700

 
499

 
11,669

 
159,579

Allowance - purchased credit-impaired loans
 
854

 
—

 
1,078

 
—

 
57

 
1,989

Loans, net of unearned as of June 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
        Individually evaluated for impairment
 
115,808

 
1,777

 
115,756

 
66,686

 
699

 
300,726

        Collectively evaluated for impairment
 
18,904,621

 
3,852,027

 
5,967,497

 
126,366

 
492,774

 
29,343,285

        Purchased credit-impaired loans
 
33,840

 
7,227

 
26,829

 
—

 
903

 
68,799

Total loans, net of unearned income
 
$
19,054,269

 
$
3,861,031

 
$
6,110,082

 
$
193,052

 
$
494,376

 
$
29,712,810

Balance as of April 1, 2018
 
$
100,238

 
$
29,057

 
$
35,201

 
$
12,984

 
$
9,714

 
$
187,194

Charge-offs
 
(3,287
)
 
(228
)
 
(1,481
)
 
(300
)
 
(4,712
)
 
(10,008
)
Recoveries 
 
1,036

 
75

 
5,444

 
631

 
1,090

 
8,276

Provision/(provision credit) for loan losses 
 
(1,153
)
 
4,928

 
(5,009
)
 
(1,623
)
 
2,857

 
—

Balance as of June 30, 2018
 
96,834

 
33,832

 
34,155

 
11,692

 
8,949

 
185,462

Balance as of January 1, 2018
 
98,211

 
28,427

 
39,823

 
13,113

 
9,981

 
189,555

Charge-offs
 
(5,362
)
 
(272
)
 
(3,392
)
 
(460
)
 
(9,005
)
 
(18,491
)
Recoveries
 
2,555

 
81

 
9,827

 
696

 
2,239

 
15,398

Provision/(provision credit) for loan losses
 
1,430

 
5,596

 
(12,103
)
 
(1,657
)
 
5,734

 
(1,000
)
Balance as of June 30, 2018
 
96,834

 
33,832

 
34,155

 
11,692

 
8,949

 
185,462

Allowance - individually evaluated for impairment 
 
1,213

 
—

 
20,399

 
10,787

 
305

 
32,704

Allowance - collectively evaluated for impairment 
 
93,429

 
33,744

 
13,116

 
905

 
8,557

 
149,751

Allowance - purchased credit-impaired loans
 
2,192

 
88

 
640

 
—

 
87

 
3,007

Loans, net of unearned as of June 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
        Individually evaluated for impairment 
 
32,599

 
2,252

 
122,335

 
76,861

 
604

 
234,651

        Collectively evaluated for impairment
 
16,349,811

 
4,106,974

 
6,169,058

 
172,958

 
545,453

 
27,344,254

        Purchased credit-impaired loans
 
56,335

 
27,130

 
36,315

 
—

 
3,055

 
122,835

Total loans, net of unearned income
 
$
16,438,745

 
$
4,136,356

 
$
6,327,708

 
$
249,819

 
$
549,112

 
$
27,701,740


Certain previously reported amounts have been reclassified to agree with current presentation.