Business Segment Information

12 Months Ended

Dec. 31, 2014

Business Segment Information [Abstract]

Business Segment Information

Note 21 – Business Segment Information

FHN has four business segments: regional banking, capital markets, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customerslargely in Tennessee and other selected markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, and cash management. Additionally, the regional banking segment includes correspondent banking which provides credit, depository, and other banking related services to other financial institutions nationally. The capital markets segment consists of fixed income sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists of gains/(losses) on the extinguishment of debt, unallocated corporate expenses, expense on subordinated debt issuances, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, tax credit investment activities, acquisition-related costs, and various charges related to restructuring, repositioning, and efficiency initiatives. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements including servicing fees (in periods subsequent to first quarter 2014 these amounts are significantly lower), and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses along with the associated restructuring, repositioning, and efficiency charges.

Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments which could change historical segment results. Total revenue, expense, and asset levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, they are to an extent subjective. Generally, all assignments and allocations have been consistently applied for all periods presented. The following table reflects the amounts of consolidated revenue, expense, tax, and assets for each segment for the years ended December 31:

(Dollars in thousands)		2014		2013		2012
Consolidated	Net interest income	$	627,718	$	637,374	$	688,667
	Provision for loan losses		27,000		55,000		78,000
	Noninterest income		550,044		584,577		671,329
	Noninterest expense		841,211		1,158,601		1,383,701
	Income/(loss) before income taxes		309,551		8,350		(101,705)
	Provision/(benefit) for income taxes		78,501		(32,169)		(85,262)
	Income/(loss) from continuing operations		231,050		40,519		(16,443)
	Income/(loss) from discontinued operations, net of tax		-		548		148
	Net income/(loss)	$	231,050	$	41,067	$	(16,295)
	Average assets	$	23,998,985	$	24,409,656	$	25,053,304
	Depreciation and amortization	$	56,896	$	71,616	$	117,972
	Expenditures for long-lived assets		38,880		41,463		21,862

(Dollars in thousands)		2014		2013		2012
Regional Banking	Net interest income	$	602,066	$	591,308	$	605,460
	Provision/(provision credit) for loan losses		29,187		18,460		(898)
	Noninterest income		254,697		247,718		253,422
	Noninterest expense		540,846		531,808		572,905
	Income/(loss) before income taxes		286,730		288,758		286,875
	Provision/(benefit) for income taxes		102,027		103,970		104,171
	Net income/(loss)	$	184,703	$	184,788	$	182,704
	Average assets	$	13,275,428	$	12,877,329	$	12,658,617
	Depreciation and amortization	$	38,271	$	46,864	$	73,720
	Expenditures for long-lived assets		30,833		34,764		17,617

Capital Markets	Net interest income	$	12,697	$	16,177	$	20,746
	Noninterest income		202,723		268,435		334,990
	Noninterest expense		146,828		232,415		262,971
	Income/(loss) before income taxes		68,592		52,197		92,765
	Provision/(benefit) for income taxes		25,751		19,619		35,054
	Net income/(loss)	$	42,841	$	32,578	$	57,711
	Average assets	$	2,068,967	$	2,255,281	$	2,296,549
	Depreciation and amortization	$	6,133	$	8,666	$	20,904
	Expenditures for long-lived assets		1,295		3,987		1,851

Corporate	Net interest income/(expense)	$	(54,126)	$	(46,127)	$	(35,908)
	Noninterest income		26,967		26,055		27,007
	Noninterest expense		70,453		75,263		99,438
	Income/(loss) before income taxes		(97,612)		(95,335)		(108,339)
	Provision/(benefit) for income taxes		(69,341)		(64,463)		(80,880)
	Net income/(loss)	$	(28,271)	$	(30,872)	$	(27,459)
	Average assets	$	5,591,239	$	5,192,411	$	5,223,014
	Depreciation and amortization	$	10,796	$	13,754	$	19,072
	Expenditures for long-lived assets		6,218		1,050		2,327

Non-Strategic	Net interest income	$	67,081	$	76,016	$	98,369
	Provision for loan losses		(2,187)		36,540		78,898
	Noninterest income		65,657		42,369		55,910
	Noninterest expense		83,084		319,115		448,387
	Income/(loss) before income taxes		51,841		(237,270)		(373,006)
	Provision/(benefit) for income taxes		20,064		(91,295)		(143,607)
	Income/(loss) from continuing operations		31,777		(145,975)		(229,399)
	Income/(loss) from discontinued operations, net of tax		-		548		148
	Net income/(loss)	$	31,777	$	(145,427)	$	(229,251)
	Average assets	$	3,063,351	$	4,084,635	$	4,875,124
	Depreciation and amortization	$	1,696	$	2,332	$	4,276
	Expenditures for long-lived assets		534		1,662		67

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