Loans (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Schedule Of Loans By Portfolio Segment

The following table provides the balance (amortized cost basis) of loans, net of unearned income, by portfolio segment as of March 31, 2020 and December 31, 2019:

	March 31		December 31
(Dollars in thousands)	2020		2019
Commercial:
Commercial, financial, and industrial	$	22,124,430	$	20,051,091
Commercial real estate	4,639,692		4,337,017
Consumer:
Consumer real estate (a)	6,119,383		6,177,139
Credit card & other	494,798		495,864
Loans, net of unearned income	$	33,378,303	$	31,061,111
Allowance for loan losses	444,490		200,307
Total net loans	$	32,933,813	$	30,860,804

(a)

In first quarter 2020, the Permanent Mortgage portfolio was combined into Consumer Real Estate portfolio, all prior periods were revised for comparability.

Financing Receivable Credit Quality Indicators

The following tables provide the amortized cost basis of the commercial loan portfolio by year of origination and credit quality indicator as of March 31, 2020:

	C&I
(Dollars in thousands)	2020		2019		2018		2017		2016		prior to 2016 (a)		LMC (b)		Revolving Loans		Revolving Loans converted to term loans (c)		Total
PD Grade:
1	$	27,293	$	100,359	$	125,095	$	81,397	$	112,175	$	117,965	$	—	$	156,041	$	223	$	720,548
2	33,244		239,750		95,269		81,542		176,068		112,586		—		108,408		51		846,918
3	15,083		165,433		52,645		96,725		65,932		119,415		1,028,798		219,037		14,042		1,777,110
4	144,129		318,374		155,173		140,516		158,705		149,248		958,145		372,890		277		2,397,457
5	149,048		604,067		306,849		161,921		127,011		228,347		927,946		507,991		14,230		3,027,410
6	187,540		713,579		244,128		241,828		107,498		201,660		1,740,304		801,860		16,485		4,254,882
7	270,190		903,326		395,680		167,749		91,881		156,238		806,853		794,174		447		3,586,538
8	224,670		626,348		217,091		178,183		33,476		115,727		140,372		495,002		7,096		2,037,965
9	128,773		332,262		92,720		91,648		60,522		93,750		68,707		419,388		2,055		1,289,825
10	65,206		128,169		113,744		56,088		60,659		53,920		25,023		191,883		996		695,688
11	29,742		95,269		65,404		64,494		75,508		52,240		—		109,709		3,618		495,984
12	25,376		36,918		46,792		41,370		19,248		28,881		17,766		114,052		1,112		331,515
13	18,233		32,564		12,153		11,247		84,321		39,710		—		63,993		383		262,604
14,15,16	35,268		22,351		51,983		26,586		17,414		14,493		—		124,557		7,242		299,894
Collectively evaluated for impairment	1,353,795		4,318,769		1,974,726		1,441,294		1,190,418		1,484,180		5,713,914		4,478,985		68,257		22,024,338
Individually evaluated for impairment	—		12,771		12,642		14,552		1,827		24,145		—		33,988		167		100,092
Total C&I loans	$	1,353,795	$	4,331,540	$	1,987,368	$	1,455,846	$	1,192,245	$	1,508,325	$	5,713,914	$	4,512,973	$	68,424	$	22,124,430

(a) TRUPS loans were originated prior to 2016. Total balance of TRUPS as of March 31, 2020 is $215.4 million, with $3.3 million in PD 3, $42.4 million in PD 4, $84.5 million in PD 5, $27.3 million in PD 6, $7.4 million in PD 7, $31.9 million in PD 9, and $18.6 million in PD 10.

(b) LMC includes non-revolving 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. The loans are of short duration with maturities less than one year.

(c) $14.1 million of C&I loans were converted from revolving to term in first quarter 2020.

	Income CRE
(Dollars in thousands)	2020		2019		2018		2017		2016		prior to 2016		Revolving Loans		Revolving Loans converted to term loans		Total
PD Grade:
1	$	22,307	$	—	$	398	$	—	$	130	$	1,102	$	—	$	—	$	23,937
2	445		30,859		651		333		1,211		2,410		—		—		35,909
3	62,707		207,828		78,203		75,629		65,898		29,466		68,770		188		588,689
4	65,474		287,116		98,370		122,518		75,032		63,680		934		3,234		716,358
5	192,596		296,099		160,253		233,104		114,572		35,705		36,944		10,729		1,080,002
6	81,162		215,741		143,419		143,142		34,758		133,573		33,021		195		785,011
7	122,282		224,637		140,601		85,853		19,369		35,968		36,633		2,432		667,775
8	15,635		76,102		54,998		15,421		29,382		50,736		6,239		132		248,645
9	25,288		29,485		23,192		27,916		4,169		39,457		38		—		149,545
10	15,437		15,563		7,260		3,805		8,973		17,006		—		150		68,194
11	1,696		19,007		11,372		22,561		3,931		16,481		128		—		75,176
12	—		15,050		2,445		697		554		10,877		71		232		29,926
13	418		9,672		913		2,185		223		1,325		138		—		14,874
14,15,16	7,021		19,536		45		30,449		129		3,635		20,384		—		81,199
Collectively evaluated for impairment	612,468		1,446,695		722,120		763,613		358,331		441,421		203,300		17,292		4,565,240
Individually evaluated for impairment	—		—		—		—		—		163		—		—		163
Total CRE-IP	$	612,468	$	1,446,695	$	722,120	$	763,613	$	358,331	$	441,584	$	203,300	$	17,292	$	4,565,403

	Residential CRE
(Dollars in thousands)	2020		2019		2018		2017		2016		prior to 2016		Revolving Loans		Revolving Loans converted to term loans		Total
PD Grade:
1	$	—	$	—	$	—	$	—	$	—	$	23	$	—	$	—	$	23
2	—		—		—		—		—		—		—		—		—
3	—		—		272		175		—		106		—		—		553
4	95		886		—		313		—		124		—		—		1,418
5	—		—		—		—		79		—		—		—		79
6	5,568		6,252		42		338		44		349		—		—		12,593
7	—		527		2,904		1,795		—		190		21,382		—		26,798
8	150		312		463		—		—		153		100		—		1,178
9	—		—		263		—		498		79		—		—		840
10	—		735		266		—		—		77		—		—		1,078
11	3,517		20,693		3,471		161		—		477		—		—		28,319
12	—		—		—		—		—		161		—		—		161
13	1,006		—		45		—		—		9		—		—		1,060
14,15,16	15		28		—		—		—		146		—		—		189
Collectively evaluated for impairment	10,351		29,433		7,726		2,782		621		1,894		21,482		—		74,289
Individually evaluated for impairment	—		—		—		—		—		—		—		—		—
Total CRE-RES	$	10,351	$	29,433	$	7,726	$	2,782	$	621	$	1,894	$	21,482	$	—	$	74,289

The following table provides the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of December 31, 2019.

	December 31, 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	$	696,040	$	—	$	—	$	1,848	$	—	$	697,888	3	%	$	69
2	767,048		—		—		48,906		38		815,992		4		165
3	743,123		877,210		3,314		474,067		806		2,098,520		9		274
4	1,237,772		692,971		46,375		680,223		477		2,657,818		11		738
5	1,986,761		670,402		72,512		993,628		1,700		3,725,003		15		8,265
6	2,511,290		1,410,387		27,263		717,062		17,027		4,683,029		19		12,054
7	2,708,707		509,616		18,378		641,345		30,925		3,908,971		16		20,409
8	1,743,364		136,771		—		269,407		16,699		2,166,241		9		22,514
9	1,101,873		77,139		31,909		169,586		13,007		1,393,514		6		17,484
10	563,635		21,229		18,536		59,592		2,153		665,145		3		10,197
11	495,140		—		—		81,682		2,302		579,124		2		13,454
12	262,906		15,158		—		28,807		1,074		307,945		1		8,471
13	232,823		—		—		32,966		1,126		266,915		1		8,142
14,15,16	263,076		—		—		43,400		626		307,102		1		29,318
Collectively evaluated for impairment	15,313,558		4,410,883		218,287		4,242,519		87,960		24,273,207		100		151,554
Individually evaluated for impairment	82,438		—		—		1,563		—		84,001		—		6,196
Purchased credit-impaired loans	25,925		—		—		4,155		820		30,900		—		848
Total commercial loans	$	15,421,921	$	4,410,883	$	218,287	$	4,248,237	$	88,780	$	24,388,108	100	%	$	158,598

The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for consumer real estate as of March 31, 2020. Within consumer real estate, classes include home equity line of credit ("HELOC") and real estate installment. HELOCs are loans which during their draw period are classified as revolving loans. Once the draw period ends and the loan enters its repayment period, the loan converts to a term loan and is classified as revolving loans converted to term loans. All loans classified in the following table as revolving loans or revolving loans converted to term loans are HELOCs. Real estate installment loans are originated as a fixed term loan and are classified below in their vintage year from prior to 2016 to 2020. All loans in the following table classified in a vintage year are real estate installment loans.

	Consumer Real Estate
(Dollars in thousands)	2020		2019		2018		2017		2016		Prior to 2016		Revolving Loans		Revolving Loans converted to term loans (a)		Total
FICO score 740 or greater	$	134,032	$	586,720	$	451,497	$	438,007	$	541,683	$	1,346,587	$	646,462	$	142,848	$	4,287,836
FICO score 720-739	25,129		80,851		50,344		42,134		78,632		135,173		75,392		31,629		519,284
FICO score 700-719	10,325		63,306		32,469		36,606		35,111		130,881		58,913		29,201		396,812
FICO score 660-699	27,489		54,870		38,198		33,127		45,329		175,873		80,018		54,440		509,344
FICO score 620-659	1,026		21,260		9,708		11,482		16,651		72,843		28,433		31,527		192,930
FICO score less than 620	339		12,792		9,706		11,477		12,671		91,003		26,318		48,871		213,177
Total	$	198,340	$	819,799	$	591,922	$	572,833	$	730,077	$	1,952,360	$	915,536	$	338,516	$	6,119,383

(a) $9.0 million of HELOC loans were converted from revolving to term in first quarter 2020.

The following table reflects the amortized cost basis by year of origination and refreshed FICO scores for other consumer loans as of March 31, 2020.

	Other Consumer
(Dollars in thousands)	2020		2019		2018		2017		2016		Prior to 2016		Revolving Loans		Revolving Loans converted to term loans (a)		Total
FICO score 740 or greater	$	9,410	$	41,336	$	24,423	$	12,035	$	5,338	$	21,272	$	176,917	$	3,293	$	294,024
FICO score 720-739	1,509		6,235		3,799		1,911		1,054		2,954		36,173		709		54,344
FICO score 700-719	2,236		5,986		2,551		2,103		924		2,674		23,185		934		40,593
FICO score 660-699	3,219		8,803		4,355		3,221		1,524		4,041		32,282		1,700		59,145
FICO score 620-659	449		2,760		1,945		912		1,196		2,213		13,020		632		23,127
FICO score less than 620	279		1,458		1,190		752		3,034		4,573		10,781		1,498		23,565
Total	$	17,102	$	66,578	$	38,263	$	20,934	$	13,070	$	37,727	$	292,358	$	8,766	$	494,798

(a) $1.5 million of other consumer loans were converted from revolving to term in first quarter 2020.

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC and real estate installment classes of loans as of December 31, 2019.

	December 31, 2019
(Dollars in thousands)	HELOC		R/E Installment Loans (b)
FICO score 740 or greater	62.0	%	71.9	%
FICO score 720-739	8.6		8.3
FICO score 700-719	7.6		6.3
FICO score 660-699	10.8		8.1
FICO score 620-659	4.7		2.8
FICO score less than 620 (a)	6.3		2.6
Total	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 loan have seasoned.

(b) In first quarter 2020, the Permanent Mortgage portfolio was combined into Consumer Real Estate portfolio, all prior periods were revised for comparability.

Accruing And Non-Accruing Loans By Class

The following table reflects accruing and non-accruing loans by class on March 31, 2020:

	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 (a)	$	16,081,865	$	17,049	$	166	$	16,099,080	$	60,387	$	2,505	$	33,189	$	96,081	$	16,195,161
Loans to mortgage companies	5,713,914		—		—		5,713,914		—		—		—		—		5,713,914
TRUPS (b)	215,355		—		—		215,355		—		—		—		—		215,355
Total commercial (C&I)	22,011,134		17,049		166		22,028,349		60,387		2,505		33,189		96,081		22,124,430
Commercial real estate:
Income CRE	4,562,822		419		—		4,563,241		29		816		1,317		2,162		4,565,403
Residential CRE	74,222		39		—		74,261		—		28		—		28		74,289
Total commercial real estate	4,637,044		458		—		4,637,502		29		844		1,317		2,190		4,639,692
Consumer real estate:
HELOC	1,186,834		10,213		5,828		1,202,875		41,506		3,547		6,124		51,177		1,254,052
R/E installment loans	4,801,281		17,741		6,304		4,825,326		24,162		2,420		13,423		40,005		4,865,331
Total consumer real estate	5,988,115		27,954		12,132		6,028,201		65,668		5,967		19,547		91,182		6,119,383
Credit card & other:
Credit card	189,247		1,893		1,715		192,855		—		—		—		—		192,855
Other	300,308		1,144		131		301,583		153		38		169		360		301,943
Total credit card & other	489,555		3,037		1,846		494,438		153		38		169		360		494,798
Total loans, net of unearned income	$	33,125,848	$	48,498	$	14,144	$	33,188,490	$	126,237	$	9,354	$	54,222	$	189,813	$	33,378,303

(a) $36.1 million of general C&I loans are nonaccrual loans with no related allowance.

(b) TRUPS is presented net of the valuation allowance of $18.9 million.

The following table reflects accruing and non-accruing loans by class on December 31, 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	$	15,314,292	$	7,155	$	237	$	15,321,684	$	36,564	$	14,385	$	23,363	$	74,312	$	15,395,996
Loans to mortgage companies	4,410,883		—		—		4,410,883		—		—		—		—		4,410,883
TRUPS (a)	218,287		—		—		218,287		—		—		—		—		218,287
Purchased credit-impaired loans	23,840		287		1,798		25,925		—		—		—		—		25,925
Total commercial (C&I)	19,967,302		7,442		2,035		19,976,779		36,564		14,385		23,363		74,312		20,051,091
Commercial real estate:
Income CRE	4,242,044		679		—		4,242,723		—		19		1,340		1,359		4,244,082
Residential CRE	87,487		7		—		87,494		—		466		—		466		87,960
Purchased credit-impaired loans	4,752		128		95		4,975		—		—		—		—		4,975
Total commercial real estate	4,334,283		814		95		4,335,192		—		485		1,340		1,825		4,337,017
Consumer real estate:
HELOC	1,217,344		9,156		5,669		1,232,169		43,007		4,227		7,472		54,706		1,286,875
R/E installment loans (b)	4,812,446		12,894		9,170		4,834,510		20,710		1,076		9,202		30,988		4,865,498
Purchased credit-impaired loans	18,720		2,770		3,276		24,766		—		—		—		—		24,766
Total consumer real estate	6,048,510		24,820		18,115		6,091,445		63,717		5,303		16,674		85,694		6,177,139
Credit card & other:
Credit card	198,917		1,076		1,178		201,171		—		—		—		—		201,171
Other	291,700		1,802		337		293,839		101		44		189		334		294,173
Purchased credit-impaired loans	323		98		99		520		—		—		—		—		520
Total credit card & other	490,940		2,976		1,614		495,530		101		44		189		334		495,864
Total loans, net of unearned income	$	30,841,035	$	36,052	$	21,859	$	30,898,946	$	100,382	$	20,217	$	41,566	$	162,165	$	31,061,111

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

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

(b) In first quarter 2020, the Permanent Mortgage portfolio was combined into Consumer Real Estate portfolio, all prior periods were revised for comparability.

Schedule Of Troubled Debt Restructurings Occurring During The Year

The following tables reflect portfolio loans that were classified as TDRs during the three months ended March 31, 2020 and 2019:

	March 31, 2020					March 31, 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	3	$	5,927	$	4,433	2	$	13,895	$	13,820
Total commercial (C&I)	3	5,927		4,433		2	13,895		13,820
Consumer real estate:
HELOC	8	912		891		19	2,104		2,084
R/E installment loans	10	1,511		1,497		47	7,425		7,413
Total consumer real estate	18	2,423		2,388		66	9,529		9,497
Credit card & other	24	158		146		15	74		71
Total troubled debt restructurings	45	$	8,508	$	6,967	83	$	23,498	$	23,388

Schedule Of Troubled Debt Restructurings Within The Previous 12 Months

The following tables present TDRs which re-defaulted during the three months ended March 31, 2020 and 2019, 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.

	March 31, 2020			March 31, 2019
(Dollars in thousands)	Number	Recorded Investment		Number	Recorded Investment
Commercial (C&I):
General C&I	—	$	—	—	$	—
Total commercial (C&I)	—	—		—	—
Consumer real estate:
HELOC	4	960		1	33
R/E installment loans	5	344		—	—
Total consumer real estate	9	1,304		1	33
Credit card & other	7	31		8	18
Total troubled debt restructurings	16	$	1,335	9	$	51

Accrued Interest

AIR is included within Other assets in the Consolidated Condensed Statements of Condition and the amounts by portfolio segment are presented in the following table.

	March 31
(Dollars in thousands)	2020
Commercial:
Commercial, financial, and industrial	$	55,215
Commercial real estate	11,233
Consumer:
Consumer real estate	16,154
Credit card & other	1,672
Total accrued interest	$	84,274

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 year ended December 31, 2019:

	Year Ended
(Dollars in thousands)	2019
Balance, beginning of period	$	13,375
Accretion	(5,792		)
Adjustment for payoffs	(2,438		)
Adjustment for charge-offs	(479		)
Adjustment for pool excess recovery (a)	—
Increase in accretable yield (b)	5,513
Disposals	(4		)
Other	(367		)
Balance, end of period	$	9,808

(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.

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 December 31, 2019:

	December 31, 2019
(Dollars in thousands)	Carrying value		Unpaid balance
Commercial, financial and industrial	$	24,973	$	25,938
Commercial real estate	5,078		5,466
Consumer real estate	23,681		26,245
Credit card and other	489		567
Total	$	54,221	$	58,216

Information By Class Related To Individually Impaired Loans

	December 31, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	52,672	$	63,602	$	—
Income CRE	1,563		1,563		—
Total	$	54,235	$	65,165	$	—
Consumer:
HELOC (a)	$	4,940	$	10,438	$	—
R/E installment loans (a)	7,593		10,054		—
Total	$	12,533	$	20,492	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	29,766	$	31,536	$	6,196
TRUPS	—		—		—
Income CRE	—		—		—
Total	$	29,766	$	31,536	$	6,196
Consumer:
HELOC	$	55,522	$	59,122	$	7,016
R/E installment loans	94,191		104,121		12,282
Credit card & other	653		653		422
Total	$	150,366	$	163,896	$	19,720
Total commercial	$	84,001	$	96,701	$	6,196
Total consumer	$	162,899	$	184,388	$	19,720
Total impaired loans	$	246,900	$	281,089	$	25,916

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

	Three Months Ended March 31
		2019
(Dollars in thousands)		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance recorded:
Commercial:
General C&I		$	55,765	$	180
Loans to mortgage companies		—		—
Income CRE		1,556		13
Residential CRE		—		—
Total		$	57,321	$	193
Consumer:
HELOC (a)		$	7,597	$	—
R/E installment loans (a)		8,637		—
Total		$	16,234	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I		$	7,294	$	—
TRUPS		2,863		—
Income CRE		367		4
Residential CRE		—		—
Total		$	10,524	$	4
Consumer:
HELOC		$	65,013	$	522
R/E installment loans		108,059		822
Credit card & other		690		5
Total		$	173,762	$	1,349
Total commercial		$	67,845	$	197
Total consumer		$	189,996	$	1,349
Total impaired loans		$	257,841	$	1,546

(a)

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