Restructuring, Repositioning, and Efficiency

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring, Repositioning, and Efficiency

In first quarter 2019, FHN initiated a company-wide review of business practices with the goal of optimizing its expense base to improve profitability and create capacity to reinvest savings into technology and revenue production activities. Restructuring, repositioning, and efficiency charges related to these corporate-driven actions were $38.7 million in the nine months ended September 30, 2019 and are included in the corporate segment. Significant expenses recognized during the nine months ended September 30, 2019 resulted from the following actions:


•	Severance and other employee costs of $10.2 million primarily related to efficiency initiatives within corporate and bank services functions which are classified as Employee compensation, incentives and benefits within noninterest expense.


•	Expense of $15.0 million largely related to the identification of efficiency opportunities within the organization which is reflected in Professional fees.


•	Expense of $12.2 million related to costs associated with asset impairments which is reflected in Other expense.

Settlement of the obligations arising from current initiatives will be funded from operating cash flows.

Total expense recognized for the three and nine months ended September 30, 2019 is presented in the table below:



Dollars in thousands	Three Months Ended September 30			Nine Months Ended September 30
Employee compensation, incentives and benefits	$	1,182		$	10,244
Professional fees	6,488			15,025
Occupancy	(128		)	761
Other	300			12,632
Total restructuring and repositioning charges	$	7,842		$	38,662