Restructuring, Repositioning, and Efficiency

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring, Repositioning, and Efficiency

Beginning in 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 not significant in the nine months ended September 30, 2020 and were $38.7 million in the nine months ended September 30, 2019 and are included in the Corporate segment. Significant expenses resulted from the following actions:

•Severance and other employee costs primarily related to efficiency initiatives within corporate

and bank services functions which are classified as personnel expense within noninterest expense.

•Expense largely related to the identification of efficiency opportunities within the organization which is reflected in legal and professional fees.

•Expense 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, 2020 and 2019 is presented in the table below:


	Three Months Ended September 30,				Nine Months Ended September 30,
Dollars in thousands	2020		2019		2020		2019
Personnel expense	$	—	$	1,182	$	89	$	10,244
Legal and professional fees	2		6,488		16		15,025
Net occupancy expense	—		(128)		2		761
Other	(83)		300		(185)		12,632
Total restructuring, repositioning, and efficiency charges	$	(81)	$	7,842	$	(78)	$	38,662