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Derivatives (Tables)
 6 Months Ended
Jun. 30, 2019
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 June 30, 2019 and December 31, 2018:
 
 
 
June 30, 2019
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Customer interest rate contracts
 
$
2,390,963

 
$
63,951

 
$
3,084

Offsetting upstream interest rate contracts
 
2,390,963

 
2,666

 
5,638

Option contracts purchased
 
52,500

 
111

 
—

Option contracts written
 
10,000

 
—

 
16

Forwards and futures purchased
 
9,322,784

 
36,693

 
800

Forwards and futures sold
 
9,767,188

 
1,441

 
37,191

 
 
 
December 31, 2018
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Customer interest rate contracts
 
$
2,271,448

 
$
18,744

 
$
27,768

Offsetting upstream interest rate contracts
 
2,271,448

 
4,014

 
9,041

Option contracts purchased
 
20,000

 
25

 
—

Forwards and futures purchased
 
4,684,177

 
28,304

 
181

Forwards and futures sold
 
4,967,454

 
522

 
30,055
Derivatives Associated With Interest Rate Risk Management Activities
The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of June 30, 2019 and December 31, 2018:
 
 
 
June 30, 2019
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Customer Interest Rate Contracts Hedging 
 
 
 
 
 
 
Hedging Instruments and Hedged Items: 
 
 
 
 
 
 
Customer interest rate contracts
 
$
2,355,604

 
$
78,051

 
$
3,851

Offsetting upstream interest rate contracts
 
2,355,604

 
1,927

 
10,762

Debt Hedging
 
 
 
 
 
 
Hedging Instruments:
 
 
 
 
 
 
Interest rate swaps
 
$
900,000

 
$
118

 
$
71

Hedged Items:
 
 
 
 
 
 
Term borrowings:
 
 
 
 
 
 
Par
 
N/A

 
N/A

 
$
900,000

Cumulative fair value hedging adjustments
 
N/A

 
N/A

 
(4,223
)
Unamortized premium/(discount) and issuance costs
 
N/A

 
N/A

 
(1,487
)
Total carrying value
 
N/A

 
N/A

 
$
894,290


 
 
December 31, 2018
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Customer Interest Rate Contracts Hedging
 
 
 
 
 
 
Hedging Instruments and Hedged Items: 
 
 
 
 
 
 
Customer interest rate contracts
 
$
2,029,162

 
$
20,262

 
$
25,880

Offsetting upstream interest rate contracts
 
2,029,162

 
8,154

 
9,153

Debt Hedging
 
 
 
 
 
 
Hedging Instruments:
 
 
 
 
 
 
Interest rate swaps
 
$
900,000

 
$
127

 
$
6

Hedged Items:
 
 
 
 
 
 
Term borrowings:
 
 
 
 
 
 
Par
 
N/A

 
N/A

 
$
900,000

Cumulative fair value hedging adjustments
 
N/A

 
N/A

 
(15,094
)
Unamortized premium/(discount) and issuance costs
 
N/A

 
N/A

 
(2,295
)
Total carrying value
 
N/A

 
N/A

 
$
882,611
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 six months ended June 30, 2019 and 2018:
 
 
Three Months Ended
June 30
 
Six Months Ended
June 30
 
 
2019
 
2018
 
2019
 
2018
(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)
 
$
50,706

 
$
(4,459
)
 
$
79,818

 
$
(29,183
)
Offsetting upstream interest rate contracts (a)
 
(50,706
)
 
4,459

 
(79,818
)
 
29,183

Debt Hedging
 
 
 
 
 
 
 
 
Hedging Instruments:
 
 
 
 
 
 
 
 
Interest rate swaps (b)
 
$
6,697

 
$
(1,545
)
 
$
10,976

 
$
(8,140
)
Hedged Items:
 
 
 
 
 
 
 
 
Term borrowings (a) (c)
 
(6,605
)
 
1,520

 
(10,871
)
 
8,070

 
(a)
Gains/losses included in All other expense within the Consolidated Condensed Statements of Income.
(b)
Gains/losses included in the 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 June 30, 2019 and December 31, 2018:
 
 
 
June 30, 2019
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Cash Flow Hedges 
 
 
 
 
 
 
Hedging Instruments: 
 
 
 
 
 
 
Interest rate swaps
 
$
900,000

 
$
62

 
$
206

Hedged Items:
 
 
 
 
 
 
Variability in cash flows related to debt instruments (primarily loans)
 
N/A

 
$
900,000

 
N/A

 
 
 
December 31, 2018
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Cash Flow Hedges
 
 
 
 
 
 
Hedging Instruments: 
 
 
 
 
 
 
Interest rate swaps
 
$
900,000

 
$
888

 
$
5

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 six months ended June 30, 2019 and 2018:
 
 
Three Months Ended
June 30
 
Six Months Ended
June 30
 
 
2019
 
2018
 
2019
 
2018
(Dollars in thousands)
 
Gains/(Losses)
 
Gains/(Losses)
 
Gains/(Losses)
 
Gains/(Losses)
Cash Flow Hedges
 
 
 
 
 
 
Hedging Instruments:
 
 
 
 
 
 
 
 
Interest rate swaps (a)
 
$
11,896

 
$
(3,914
)
 
$
19,114

 
$
(15,531
)
       Gain/(loss) recognized in Other comprehensive income/(loss)
 
7,575

 
(3,457
)
 
11,511

 
(12,095
)
       Gain/(loss) reclassified from AOCI into Interest income
 
1,334

 
463

 
2,785

 
308

 
(a)
Approximately $.3 million of pre-tax losses 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 Condensed Statements of Condition as of June 30, 2019 and December 31, 2018:
 
 
 
 
 
 
 
 
 
Gross amounts not offset in the
Statements of Condition
 
 
(Dollars in thousands)
 
Gross amounts
of recognized
assets
 
Gross amounts
offset in the
Statements of
Condition
 
Net amounts of
assets presented
in the Statements
of Condition (a)
 
Derivative
liabilities
available for
offset
 
Collateral
received
 
Net amount
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2019 (b)
 
$
147,260

 
$
—

 
$
147,260

 
$
(5,149
)
 
$
(116,116
)
 
$
25,995

December 31, 2018 (b)
 
52,562

 
—

 
52,562

 
(12,745
)
 
(39,637
)
 
180

 
(a)
Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of June 30, 2019 and December 31, 2018, $38.3 million and $28.9 million, respectively, of derivative assets (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
(b)
Amounts are comprised entirely of interest rate derivative contracts.
Derivative Liabilities and Collateral Pledged
The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of June 30, 2019 and December 31, 2018:
 
 
 
 
 
 
 
 
 
Gross amounts not offset in the
Statements of Condition
 
 
(Dollars in thousands)
 
Gross amounts
of recognized
liabilities
 
Gross amounts
offset in the
Statements of
Condition
 
Net amounts of
liabilities presented
in the Statements
of Condition (a)
 
Derivative
assets available
for offset
 
Collateral
pledged
 
Net amount
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2019 (b)
 
$
23,612

 
$
—

 
$
23,612

 
$
(5,149
)
 
$
(15,487
)
 
$
2,976

December 31, 2018 (b)
 
71,853

 
—

 
71,853

 
(12,745
)
 
(54,773
)
 
4,335

 
(a)
Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As of June 30, 2019 and December 31, 2018, $64.9 million and $61.9 million, respectively, of derivative liabilities (primarily Visa-related derivatives and fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
(b)
Amounts are comprised entirely of interest rate derivative contracts.