Loans (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Schedule Of Loans By Portfolio Segment

The following table provides the balance of loans, net of unearned income, by portfolio segment as of September 30, 2019 and December 31, 2018:

	September 30		December 31
(Dollars in thousands)	2019		2018
Commercial (a):
Commercial, financial, and industrial	$	20,293,930	$	16,514,328
Commercial real estate	4,228,598		4,030,870
Consumer:
Consumer real estate (b)	6,062,829		6,249,516
Permanent mortgage	182,467		222,448
Credit card & other	493,009		518,370
Loans, net of unearned income	$	31,260,833	$	27,535,532
Allowance for loan losses	193,149		180,424
Total net loans	$	31,067,684	$	27,355,108

(a) In third quarter 2019, FHN corrected a previous mis-classification of commercial loans and reclassified approximately $410 million of market investor CRE loans from the C&I portfolio to the CRE portfolio. These loans were identified during an internal review and assessment by management of certain loan populations, a portion of which relate to loans acquired as part of the Capital Bank merger. The reclassification of these loan balances between regional banking portfolios did not have an impact on FHN’s consolidated period-end or average balance sheet and had an immaterial effect on the allowance for loan losses. No adjustments were made to prior periods as the impact of the reclassification, including the effect on the allowance for loan losses was deemed to be immaterial in all periods.

(b)

Balances as of September 30, 2019 and December 31, 2018, include $12.4 million and $16.2 million of restricted real estate loans, respectively. See Note 14—Variable Interest Entities for additional information.

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Movement Schedule Rollforward

The following table presents a rollforward of the accretable yield for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in thousands)	2019			2018			2019			2018
Balance, beginning of period	$	11,600		$	14,474		$	13,375		$	15,623
Accretion	(1,440		)	(2,183		)	(4,586		)	(6,927		)
Adjustment for payoffs	(369		)	(840		)	(1,084		)	(2,559		)
Adjustment for charge-offs	(59		)	(122		)	(314		)	(1,046		)
Adjustment for pool excess recovery	—			(123		)	—			(123		)
Increase/(decrease) in accretable yield (a)	2,416			4,062			5,080			10,721
Disposal	(4		)	—			(4		)	(240		)
Other	(35		)	—			(358		)	(181		)
Balance, end of period	$	12,109		$	15,268		$	12,109		$	15,268

(a)

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

Schedule Of Acquired Purchase Credit Impaired Loans By Portfolio Segment

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of September 30, 2019 and December 31, 2018:

	September 30, 2019				December 31, 2018
(Dollars in thousands)	Carrying value		Unpaid balance		Carrying value		Unpaid balance
Commercial, financial and industrial	$	28,777	$	30,478	$	38,873	$	44,259
Commercial real estate	6,596		7,268		15,197		17,232
Consumer real estate	25,514		28,591		30,723		34,820
Credit card and other	637		790		1,627		1,879
Total	$	61,524	$	67,127	$	86,420	$	98,190

Information By Class Related To Individually Impaired Loans

The following tables provide information at September 30, 2019 and December 31, 2018, 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, 2019						December 31, 2018
(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	$	63,070	$	78,914	$	—	$	42,902	$	45,387	$	—
Income CRE	1,940		1,940		—		1,589		1,589		—
Total	$	65,010	$	80,854	$	—	$	44,491	$	46,976	$	—
Consumer:
HELOC (a)	$	6,614	$	12,579	$	—	$	8,645	$	16,648	$	—
R/E installment loans (a)	5,042		5,853		—		4,314		4,796		—
Permanent mortgage (a)	2,791		4,619		—		3,601		6,003		—
Total	$	14,447	$	23,051	$	—	$	16,560	$	27,447	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	19,508	$	23,728	$	4,287	$	2,802	$	2,802	$	149
TRUPS	2,725		3,700		140		2,888		3,700		925
Income CRE	—		—		—		377		377		—
Total	$	22,233	$	27,428	$	4,427	$	6,067	$	6,879	$	1,074
Consumer:
HELOC	$	58,924	$	62,514	$	7,457	$	66,482	$	69,610	$	11,241
R/E installment loans	37,735		38,714		4,901		38,993		39,851		6,743
Permanent mortgage	61,511		71,406		8,363		67,245		78,010		9,419
Credit card & other	720		720		450		695		695		337
Total	$	158,890	$	173,354	$	21,171	$	173,415	$	188,166	$	27,740
Total commercial	$	87,243	$	108,282	$	4,427	$	50,558	$	53,855	$	1,074
Total consumer	$	173,337	$	196,405	$	21,171	$	189,975	$	215,613	$	27,740
Total impaired loans	$	260,580	$	304,687	$	25,598	$	240,533	$	269,468	$	28,814

(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
	2019				2018				2019				2018
(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	$	64,558	$	173	$	23,740	$	203	$	62,553	$	530	$	21,506	$	561
Loans to mortgage companies	18,628		—		—		—		12,419		—		—		—
Income CRE	1,690		3		1,680		12		1,576		30		1,379		37
Residential CRE	—		—		500		—		—		—		416		—
Total	$	84,876	$	176	$	25,920	$	215	$	76,548	$	560	$	23,301	$	598
Consumer:
HELOC (a)	$	6,495	$	—	$	8,343	$	—	$	6,852	$	—	$	8,878	$	—
R/E installment loans (a)	5,304		—		4,631		—		5,384		—		4,032		—
Permanent mortgage (a)	2,843		—		3,949		—		3,180		—		4,638		—
Total	$	14,642	$	—	$	16,923	$	—	$	15,416	$	—	$	17,548	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	14,620	$	4	$	16,375	$	—	$	10,892	$	4	$	16,038	$	—
TRUPS	2,750		—		2,960		—		2,806		—		3,004		—
Income CRE	169		—		199		5		294		9		335		5
Residential CRE	—		—		—		—		—		—		133		—
Total	$	17,539	$	4	$	19,534	$	5	$	13,992	$	13	$	19,510	$	5
Consumer:
HELOC	$	60,312	$	449	$	68,913	$	556	$	62,650	$	1,475	$	70,452	$	1,711
R/E installment loans	39,924		250		39,147		246		41,475		792		40,512		764
Permanent mortgage	62,652		537		71,898		585		64,700		1,632		74,617		1,737
Credit card & other	710		4		578		3		697		13		626		9
Total	$	163,598	$	1,240	$	180,536	$	1,390	$	169,522	$	3,912	$	186,207	$	4,221
Total commercial	$	102,415	$	180	$	45,454	$	220	$	90,540	$	573	$	42,811	$	603
Total consumer	$	178,240	$	1,240	$	197,459	$	1,390	$	184,938	$	3,912	$	203,755	$	4,221
Total impaired loans	$	280,655	$	1,420	$	242,913	$	1,610	$	275,478	$	4,485	$	246,566	$	4,824

(a)

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

Balances Of Commercial Loan Portfolio Classes, Disaggregated By PD Grade

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of September 30, 2019 and December 31, 2018:

	September 30, 2019
(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	$	651,636	$	—	$	—	$	2,394	$	—	$	654,030	3	%	$	68
2	798,897		—		—		49,116		44		848,057		3		197
3	654,023		1,127,283		3,314		407,538		1,144		2,193,302		9		283
4	1,219,024		859,310		35,786		550,707		512		2,665,339		11		813
5	2,004,530		683,685		80,765		1,026,006		10,338		3,805,324		16		9,398
6	2,349,020		1,515,178		33,815		741,795		21,484		4,661,292		19		12,139
7	2,835,023		505,068		11,446		651,383		34,688		4,037,608		17		20,443
8	1,536,468		210,719		—		249,301		22,253		2,018,741		8		20,488
9	992,076		123,013		26,123		158,079		14,759		1,314,050		5		15,027
10	626,518		7,439		18,536		56,241		3,236		711,970		3		9,732
11	469,096		—		—		62,676		2,489		534,261		2		11,114
12	267,147		5,856		—		40,484		1,386		314,873		1		9,233
13	294,924		—		5,786		76,879		1,309		378,898		2		11,906
14,15,16	227,322		—		—		33,432		512		261,266		1		23,586
Collectively evaluated for impairment	14,925,704		5,037,551		215,571		4,106,031		114,154		24,399,011		100		144,427
Individually evaluated for impairment	82,578		—		2,725		1,940		—		87,243		—		4,427
Purchased credit-impaired loans	29,801		—		—		5,082		1,391		36,274		—		901
Total commercial loans	$	15,038,083	$	5,037,551	$	218,296	$	4,113,053	$	115,545	$	24,522,528	100	%	$	149,755

	December 31, 2018
(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	$	610,177	$	—	$	—	$	12,586	$	—	$	622,763	3	%	$	100
2	835,776		—		—		1,688		29		837,493		4		274
3	782,362		716,971		—		289,594		147		1,789,074		9		315
4	1,223,092		394,862		43,220		563,243		—		2,224,417		11		686
5	1,920,034		277,814		77,751		798,509		14,150		3,088,258		15		8,919
6	1,722,136		365,341		45,609		657,628		33,759		2,824,473		14		8,141
7	2,690,784		96,603		11,446		538,909		26,135		3,363,877		16		16,906
8	1,337,113		53,224		—		265,901		20,320		1,676,558		8		18,545
9	1,472,852		96,292		45,117		455,184		29,849		2,099,294		10		15,454
10	490,795		13,260		18,536		60,803		3,911		587,305		3		8,675
11	311,967		—		—		66,986		788		379,741		2		7,973
12	244,867		9,379		—		82,574		5,717		342,537		2		6,972
13	285,987		—		5,786		55,408		251		347,432		2		10,094
14,15,16	224,853		—		—		28,835		837		254,525		1		23,307
Collectively evaluated for impairment	14,152,795		2,023,746		247,465		3,877,848		135,893		20,437,747		100		126,361
Individually evaluated for impairment	45,704		—		2,888		1,966		—		50,558		—		1,074
Purchased credit-impaired loans	41,730		—		—		12,730		2,433		56,893		—		2,823
Total commercial loans	$	14,240,229	$	2,023,746	$	250,353	$	3,892,544	$	138,326	$	20,545,198	100	%	$	130,258

(a)

Balances presented net of a $19.1 million valuation allowance as of September 30, 2019, and a $20.2 million valuation allowance as of December 31, 2018.

Loans by FICO Score, Consumer

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, 2019 and December 31, 2018:

	September 30, 2019						December 31, 2018
	HELOC		R/E Installment Loans		Permanent Mortgage		HELOC		R/E Installment Loans		Permanent Mortgage
FICO score 740 or greater	61.9	%	72.9	%	47.9	%	61.4	%	71.3	%	51.8	%
FICO score 720-739	8.8		8.1		7.9		8.5		8.8		7.6
FICO score 700-719	7.3		6.2		11.0		7.6		7.0		10.6
FICO score 660-699	10.5		7.4		16.7		10.9		7.6		14.7
FICO score 620-659	5.1		2.9		8.2		5.1		2.8		6.5
FICO score less than 620 (a)	6.4		2.5		8.3		6.5		2.5		8.8
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.

Accruing And Non-Accruing Loans By Class

The following table reflects accruing and non-accruing loans by class on September 30, 2019:

	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	$	14,914,990	$	18,979	$	334	$	14,934,303	$	43,877	$	960	$	29,142	$	73,979	$	15,008,282
Loans to mortgage companies	5,037,551		—		—		5,037,551		—		—		—		—		5,037,551
TRUPS (a)	215,571		—		—		215,571		—		—		2,725		2,725		218,296
Purchased credit-impaired loans	27,169		773		1,859		29,801		—		—		—		—		29,801
Total commercial (C&I)	20,195,281		19,752		2,193		20,217,226		43,877		960		31,867		76,704		20,293,930
Commercial real estate:
Income CRE	4,104,826		1,208		—		4,106,034		—		—		1,937		1,937		4,107,971
Residential CRE	114,154		—		—		114,154		—		—		—		—		114,154
Purchased credit-impaired loans	6,082		349		42		6,473		—		—		—		—		6,473
Total commercial real estate	4,225,062		1,557		42		4,226,661		—		—		1,937		1,937		4,228,598
Consumer real estate:
HELOC	1,267,603		9,694		6,673		1,283,970		45,456		6,601		7,767		59,824		1,343,794
R/E installment loans	4,659,224		8,032		5,648		4,672,904		13,068		2,420		3,911		19,399		4,692,303
Purchased credit-impaired loans	21,245		1,938		3,549		26,732		—		—		—		—		26,732
Total consumer real estate	5,948,072		19,664		15,870		5,983,606		58,524		9,021		11,678		79,223		6,062,829
Permanent mortgage	161,198		5,338		1,644		168,180		8,401		373		5,513		14,287		182,467
Credit card & other:
Credit card	200,696		1,264		1,127		203,087		—		—		—		—		203,087
Other	286,983		1,728		183		288,894		72		76		196		344		289,238
Purchased credit-impaired loans	371		260		53		684		—		—		—		—		684
Total credit card & other	488,050		3,252		1,363		492,665		72		76		196		344		493,009
Total loans, net of unearned income	$	31,017,663	$	49,563	$	21,112	$	31,088,338	$	110,874	$	10,430	$	51,191	$	172,495	$	31,260,833

(a) TRUPS is presented net of the valuation allowance of $19.1 million.

The following table reflects accruing and non-accruing loans by class on December 31, 2018:

	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	$	14,153,275	$	8,234	$	102	$	14,161,611	$	26,325	$	5,537	$	5,026	$	36,888	$	14,198,499
Loans to mortgage companies	2,023,746		—		—		2,023,746		—		—		—		—		2,023,746
TRUPS (a)	247,465		—		—		247,465		—		—		2,888		2,888		250,353
Purchased credit-impaired loans	39,433		624		1,673		41,730		—		—		—		—		41,730
Total commercial (C&I)	16,463,919		8,858		1,775		16,474,552		26,325		5,537		7,914		39,776		16,514,328
Commercial real estate:
Income CRE	3,876,229		626		—		3,876,855		30		—		2,929		2,959		3,879,814
Residential CRE	135,861		—		—		135,861		32		—		—		32		135,893
Purchased credit-impaired loans	13,308		103		1,752		15,163		—		—		—		—		15,163
Total commercial real estate	4,025,398		729		1,752		4,027,879		62		—		2,929		2,991		4,030,870
Consumer real estate:
HELOC	1,443,651		11,653		10,129		1,465,433		49,009		3,314		8,781		61,104		1,526,537
R/E installment loans	4,652,658		10,470		6,497		4,669,625		15,146		1,924		4,474		21,544		4,691,169
Purchased credit-impaired loans	24,096		2,094		5,620		31,810		—		—		—		—		31,810
Total consumer real estate	6,120,405		24,217		22,246		6,166,868		64,155		5,238		13,255		82,648		6,249,516
Permanent mortgage	193,591		2,585		4,562		200,738		11,227		996		9,487		21,710		222,448
Credit card & other:
Credit card	188,009		2,133		1,203		191,345		—		—		—		—		191,345
Other	320,551		3,570		526		324,647		110		60		454		624		325,271
Purchased credit-impaired loans	746		611		397		1,754		—		—		—		—		1,754
Total credit card & other	509,306		6,314		2,126		517,746		110		60		454		624		518,370
Total loans, net of unearned income	$	27,312,619	$	42,703	$	32,461	$	27,387,783	$	101,879	$	11,831	$	34,039	$	147,749	$	27,535,532

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

(a) TRUPS is presented net of the valuation allowance of $20.2 million.

Schedule Of Troubled Debt Restructurings Occurring During The Year

The following tables reflect portfolio loans that were classified as TDRs during the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30, 2019					Nine Months Ended September 30, 2019
(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	1	$	62	$	59	4	$	14,179	$	14,101
Total commercial (C&I)	1	62		59		4	14,179		14,101
Commercial real estate:
Income CRE	—	—		—		—	—		—
Total commercial real estate	—	—		—		—	—		—
Consumer real estate:
HELOC	13	1,638		1,631		57	7,013		6,950
R/E installment loans	16	1,771		1,854		77	9,261		9,292
Total consumer real estate	29	3,409		3,485		134	16,274		16,242
Permanent mortgage	—	—		—		5	1,469		1,498
Credit card & other	35	134		126		68	317		300
Total troubled debt restructurings	65	$	3,605	$	3,670	211	$	32,239	$	32,141
	Three Months Ended September 30, 2018					Nine Months Ended September 30, 2018
(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	1	$	25,591	$	25,439	9	$	27,639	$	27,190
Total commercial (C&I)	1	25,591		25,439		9	27,639		27,190
Commercial real estate:
Income CRE	1	442		442		4	643		637
Total commercial real estate	1	442		442		4	643		637
Consumer real estate:
HELOC	15	1,057		1,041		79	7,641		7,580
R/E installment loans	62	4,561		4,356		77	5,944		5,738
Total consumer real estate	77	5,618		5,397		156	13,585		13,318
Permanent mortgage	—	—		—		5	709		713
Credit card & other	12	65		59		80	370		350
Total troubled debt restructurings	91	$	31,716	$	31,337	254	$	42,946	$	42,208

Schedule Of Troubled Debt Restructurings Within The Previous 12 Months

The following tables present TDRs which re-defaulted during the three and nine months ended September 30, 2019 and 2018, 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, 2019			Nine Months Ended September 30, 2019
(Dollars in thousands)	Number	Recorded Investment		Number	Recorded Investment
Commercial (C&I):
General C&I	—	$	—	—	$	—
Total commercial (C&I)	—	—		—	—
Consumer real estate:
HELOC	2	99		4	198
R/E installment loans	—	—		1	38
Total consumer real estate	2	99		5	236
Permanent mortgage	1	7		1	7
Credit card & other	8	45		23	77
Total troubled debt restructurings	11	$	151	29	$	320
	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
(Dollars in thousands)	Number	Recorded Investment		Number	Recorded Investment
Commercial (C&I):
General C&I	1	$	321	2	$	579
Total commercial (C&I)	1	321		2	579
Consumer real estate:
HELOC	1	40		5	204
R/E installment loans	—	—		1	25
Total consumer real estate	1	40		6	229
Permanent mortgage	3	294		5	699
Credit card & other	13	56		39	212
Total troubled debt restructurings	18	$	711	52	$	1,719