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		832,531		1,148,519		1,369,524
	Income/(loss) before income taxes		318,231		18,432		(87,528)
	Provision/(benefit) for income taxes		84,185		(19,389)		(72,028)
	Income/(loss) from continuing operations		234,046		37,821		(15,500)
	Income/(loss) from discontinued operations, net of tax		-		548		148
	Net income/(loss)	$	234,046	$	38,369	$	(15,352)
	Average assets	$	23,994,836	$	24,402,338	$	25,048,287
	Depreciation and amortization	$	56,896	$	71,616	$	117,972
	Expenditures for long-lived assets		38,880		41,463		21,862
Certain previously reported amounts have been revised to reflect the retroactive effect of the adoption of ASU 2014-01, “Equity Method and Joint Venture: Accounting for Investments in Qualified Affordable Housing Projects.” See Note 1 – Summary of Significant Accounting Policies for additional information.

(Dollars in thousands)		2014		2013		2012
Regional Banking	Net interest income	$	602,126	$	591,351	$	605,287
	Provision/(provision credit) for loan losses		29,187		18,460		(898)
	Noninterest income		254,705		247,717		253,470
	Noninterest expense		538,988		529,396		571,204
	Income/(loss) before income taxes		288,656		291,212		288,451
	Provision/(benefit) for income taxes		102,771		104,915		104,779
	Net income/(loss)	$	185,885	$	186,297	$	183,672
	Average assets	$	13,273,565	$	12,875,630	$	12,657,320
	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	$	12,688	$	16,187	$	20,765
	Noninterest income		202,725		268,436		334,992
	Noninterest expense		146,847		232,429		263,015
	Income/(loss) before income taxes		68,566		52,194		92,742
	Provision/(benefit) for income taxes		25,741		19,618		35,044
	Net income/(loss)	$	42,825	$	32,576	$	57,698
	Average assets	$	2,069,472	$	2,255,852	$	2,297,051
	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)	$	(54,175)	$	(46,178)	$	(35,908)
	Noninterest income		26,969		26,055		27,008
	Noninterest expense		61,387		64,865		84,251
	Income/(loss) before income taxes		(88,593)		(84,988)		(93,151)
	Provision/(benefit) for income taxes		(63,526)		(51,582)		(67,256)
	Net income/(loss)	$	(25,067)	$	(33,406)	$	(25,895)
	Average assets	$	5,588,328	$	5,186,034	$	5,218,611
	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	$	67,079	$	76,014	$	98,523
	Provision/(provision credit) for loan losses		(2,187)		36,540		78,898
	Noninterest income		65,645		42,369		55,859
	Noninterest expense		85,309		321,829		451,054
	Income/(loss) before income taxes		49,602		(239,986)		(375,570)
	Provision/(benefit) for income taxes		19,199		(92,340)		(144,595)
	Income/(loss) from continuing operations		30,403		(147,646)		(230,975)
	Income/(loss) from discontinued operations, net of tax		-		548		148
	Net income/(loss)	$	30,403	$	(147,098)	$	(230,827)
	Average assets	$	3,063,471	$	4,084,822	$	4,875,305
	Depreciation and amortization	$	1,696	$	2,332	$	4,276
	Expenditures for long-lived assets		534		1,662		67

Certain previously reported amounts have been revised to reflect the retroactive effect of the adoption of ASU 2014-01, “Equity Method and Joint Venture: Accounting for Investments in Qualified Affordable Housing Projects.” See Note 1 – Summary of Significant Accounting Policiesfor additional information.