Loans

6 Months Ended

Jun. 30, 2011

Loans

Loans

Note 4- Loans

The following table provides the balance of loans by portfolio on June 30, 2011, June 30, 2010, and December 31, 2010:

	June 30				December 31
(Dollars in thousands)	2011		2010		2010
Commercial:
Commercial, financial, and industrial	$	7,180,261	$	7,003,798	$	7,338,155
Commercial real estate
Income CRE		1,310,779		1,609,835		1,406,646
Residential CRE		182,857		396,934		263,878
Retail:
Consumer real estate		5,383,223		5,935,536		5,617,619
Permanent mortgage		1,015,122		1,018,887		1,086,859
Credit card & other		295,373		355,230		311,924
Restricted real estate loans (a)		694,031		833,830		757,491
Loans, net of unearned income	$	16,061,646	$	17,154,050	$	16,782,572
Allowance for loan losses		524,091		781,269		664,799
Total net loans	$	15,537,555	$	16,372,781	$	16,117,773

(a) Balances as of June 30, 2011 and 2010, and December 30, 2010, include $649.2 million, $770.3 million, and $701.8 million of consumer real estate loans and $44.9 million, $63.5 million, and $55.7 million of permanent mortgage loans, respectively.

FHN has a concentration of loans secured by residential real estate (45 percent of total loans), the majority of which is in the consumer real estate portfolio (34 percent of total loans). Additionally, on June 30, 2011, FHN had bank-related and trust preferred loans ("TRUPs") (i.e., loans to bank and insurance-related businesses) totaling $.7 billion (10 percent of the C&I portfolio, or 4 percent of total loans). Due to the higher credit losses encountered throughout the financial services industry, limited availability of market liquidity, and the impact from economic conditions on these borrowers these loans have experienced stress throughout the economic downturn.

Components of the Loan Portfolio. For purposes of the disclosures required pursuant to the adoption of amendments to ASC 310, the loan portfolio was disaggregated into segments and then further disaggregated into classes for certain disclosures. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally determined based on the initial measurement attribute (i.e., amortized cost or purchased credit impaired), risk characteristics of the loan, and an entity's method for monitoring and assessing credit risk. Commercial loan portfolio segments include commercial, financial, and industrial ("C&I") and commercial real estate ("CRE"). Commercial classes within C&I include general C&I, loans to mortgage companies, and the TRUPs portfolio. Loans to mortgage companies includes commercial lines of credit to qualified mortgage companies exclusively for the temporary warehousing of eligible mortgage loans prior to the borrower's sale of those mortgage loans to third party investors. Commercial classes within commercial real estate include income CRE and residential CRE. Retail loan portfolio segments include consumer real estate, permanent mortgage, and the combined credit card and other portfolios. Retail classes include HELOC and real estate ("R/E") installment loans within the consumer real estate segment, permanent mortgage (which is both a segment and a class), and credit card and other. Restricted real estate loans include HELOCs that were previously securitized on balance sheet as well as HELOC and some permanent mortgages that were consolidated on January 1, 2010 in conjunction with the adoption of amendments to ASC 810. Due to the winding down nature and decreasing size of the OTC residential construction portfolio, in most cases the remaining balances and activity of this portfolio has been combined with and included within the other retail class.

Allowance for Loan Losses. The allowance for loan losses ("ALLL") includes the following components: reserves for commercial loans evaluated based on pools of credit graded loans and reserves for pools of smaller-balance homogeneous retail loans, both determined in accordance with the ASC Topic related to Contingencies (ASC 450-20-50). The reserve factors applied to these pools are an estimate of probable incurred losses based on management's evaluation of historical net losses from loans with similar characteristics and are subject to adjustment by management to reflect current events, trends, and conditions (including economic considerations and trends). The slow economic recovery, weak housing market, and elevated unemployment levels are examples of additional factors considered by management in determining the allowance for loan losses. Also included are reserves, determined in accordance with the Receivables Topic (ASC 310-10-45), for loans determined by management to be individually impaired.

Key components of the estimation process are as follows: (1) commercial loans determined by management to be individually impaired loans are evaluated individually and specific reserves are determined based on the difference between the outstanding loan amount and the estimated net realizable value of the collateral (if collateral dependent) or the present value of expected future cash flows; (2) individual commercial loans not considered to be individually impaired are segmented based on similar credit risk characteristics and evaluated on a pool basis; (3) reserve rates for the commercial segment are calculated based on historical net charge-offs and are subject to adjustment by management to reflect current events, trends, and conditions (including economic considerations and trends); (4) management's estimate of probable incurred losses reflects the reserve rate applied against the balance of loans in the commercial segment of the loan portfolio; (5) retail loans are segmented based on loan type; (6) reserve amounts for each retail portfolio segment are calculated using analytical models based on net loss experience and are subject to adjustment by management to reflect current events, trends, and conditions (including economic considerations and trends); and (7) the reserve amount for each retail portfolio segment reflects management's estimate of probable incurred losses in the retail segment of the loan portfolio.

Commercial. For commercial loans, reserves are established using historical net loss factors by grade level, loan product, and business segment. An assessment of the quality of individual commercial loans is made utilizing credit grades assigned internally based on a dual grading system which estimates both the probability of default ("PD") and loss severity in the event of default. PD grades range from 1-16 while estimated loss severities, or loss given default ("LGD"), grades range from 1-12. This credit grading system is intended to identify and measure the credit quality of the loan portfolio by analyzing the migration of loans between grading categories. It is also integral to the estimation methodology utilized in determining the allowance for loan losses since an allowance is established for pools of commercial loans based on the credit grade assigned. The appropriate relationship team performs the process of categorizing commercial loans into the appropriate credit grades, initially as a component of the approval of the loan, and subsequently throughout the life of the loan as part of our servicing regimen. The proper loan grade for larger exposures is confirmed by a senior credit officer in the approval process. To determine the most appropriate credit grade for each loan, the credit risk grading system employs scorecards for particular categories of loans that consist of a number of objective and subjective measures that are weighted in a manner that produces a rank ordering of risk within pass-graded credits. Loan grades are frequently reviewed by Credit Risk Assurance to determine if the process continues to result in accurate loan grading across the portfolio.

FHN may utilize availability of guarantors/sponsors to support lending decisions during the credit underwriting process and when determining the assignment of internal loan grades. Where guarantor contributions are determined to be a source of repayment, an assessment of the guarantee is made. This guarantee assessment would include but not be limited to factors such as type and feature of the guarantee, consideration for the guarantee, key provisions of the guarantee agreement, and ability of the guarantor to be a viable secondary source of repayment.

Reliance on the guarantee as a viable secondary source of repayment is a function of an analysis proving capability to pay factoring in, among other things, liquidity, and direct/indirect debt cash flows. Therefore, a proper evaluation of each guarantor is critical. FHN establishes a guarantor's ability (financial wherewithal) to support a credit based on an analysis of recent information on the guarantor's financial condition. This would generally include income and asset information from sources such as recent tax returns, credit reports, and personal financial statements. In analyzing this information FHN seeks to assess a combination of liquidity, global cash flow, cash burn rate, and contingent liabilities to demonstrate the guarantor's capacity to sustain support for the credit and fulfill the obligation. FHN also considers the volume and amount of guarantees provided for all global indebtedness and the likelihood of realization. Guarantor financial information is periodically updated throughout the life of the loan. FHN presumes a guarantor's willingness to perform until financial support becomes necessary or if there is any current or prior indication or future expectation that the guarantor may not willingly and voluntarily perform under the terms of the guarantee.

In FHN's risk grading approach, it is deemed that financial support becomes necessary generally at a point when the loan would otherwise be graded substandard, reflecting a well-defined weakness. At that point, provided willingness is appropriately demonstrated, a strong, legally enforceable guarantee can mitigate the risk of default or loss, justify a less severe rating, and consequently reduce the level of allowance or charge-off that might otherwise be deemed appropriate. FHN establishes guarantor willingness to support the credit through documented evidence of previous and ongoing support of the credit. Previous performance under a guarantor's obligation to pay is not considered if the performance was involuntary.

Retail. The ALLL for smaller-balance homogenous retail loans is determined based on pools of similar loan types that have similar credit risk characteristics. FHN manages retail loan credit risk on a class basis. Reserves by portfolio are determined using segmented roll-rate models that incorporate various factors including historical delinquency trends, experienced loss frequencies, and experienced loss severities. Generally, reserves for retail loans reflect inherent losses in the portfolio that are expected to be recognized over the following twelve months.

Individually Impaired. Under ASC 310-10, individually impaired loans are measured based on the present value of expected future payments discounted at the loan's effective interest rate ("the DCF method"), observable market prices, or for loans that are solely dependent on the collateral for repayment, the estimated fair value of the collateral less estimated costs to sell (net realizable value). For loans measured using the DCF method or by observable market prices, if the recorded investment in the impaired loan exceeds this amount, a specific allowance is established as a component of the allowance for loan and lease losses; however, for impaired collateral-dependent loans, FHN will charge off the full difference between the book value and the best estimate of net realizable value.

The following table provides a rollforward of the allowance for loan losses by portfolio segment for the first six months of 2011 and 2010:

				Commercial Real			Consumer			Permanent			Credit Card and
(Dollars in thousands)	C&I			Estate			Real Estate			Mortgage			Other (a)			Total
Balance as of January 1, 2010	$	276,648		$	205,724		$	215,087		$	123,897		$	75,558		$	896,914
Adjustment due to amendments of ASC 810		—			—			16,106			8,472			—			24,578
Charge-offs		(54,941	)		(89,307	)		(114,399	)		(46,903	)		(34,393	)		(339,943	)
Recoveries		7,213			5,793			7,990			776			2,948			24,720
Provision		48,115			76,137			80,968			(8,929	)		(21,291	)		175,000
Balance as of June 30, 2010 (b) (c)		277,035			198,347			205,752			77,313			22,822			781,269
Allowance — individually evaluated for impairment		52,091			28,158			11,873			8,922			1,163			102,207
Allowance — collectively evaluated for impairment		224,944			170,189			193,879			68,391			21,659			679,062
Loans, net of unearned as of June 30, 2010:
Individually evaluated for impairment		171,947			294,836			41,337			64,384			634			573,138
Collectively evaluated for impairment		6,831,851			1,711,933			6,664,513			1,018,019			354,596			16,580,912
Total loans, net of unearned (b) (c)	$	7,003,798		$	2,006,769		$	6,705,850		$	1,082,403		$	355,230		$	17,154,050
Balance as of January 1, 2011	$	239,469		$	155,085		$	192,350		$	65,009		$	12,886		$	664,799
Charge-offs		(24,852	)		(23,711	)		(91,764	)		(20,784	)		(9,584	)		(170,695	)
Recoveries		8,837			5,066			8,436			3,534			2,114			27,987
Provision		(17,176	)		(36,973	)		53,633			(1,157	)		3,673			2,000
Balance as of June 30, 2011 (b) (c)		206,278			99,467			162,655			46,602			9,089			524,091
Allowance — individually evaluated for impairment		50,673			9,797			23,656			14,586			752			99,464
Allowance — collectively evaluated for impairment		155,605			89,670			138,999			32,016			8,337			424,627
Loans, net of unearned as of June 30, 2011:
Individually evaluated for impairment		222,896			174,379			91,117			111,979			1,186			601,557
Collectively evaluated for impairment		6,957,365			1,319,257			5,941,284			947,996			294,187			15,460,089
Total loans, net of unearned (b) (c)	$	7,180,261		$	1,493,636		$	6,032,401		$	1,059,975		$	295,373		$	16,061,646

(a)	Includes OTC.
(b)	Q2 2011 and Q2 2010 include $29.9 million and $43.0 million of reserves, respectively, and $649.2 million and $770.3 million of balances in restricted consumer real estate loans, respectively.
(c)	Q2 2011 and Q2 2010 include $3.1 million and $7.1 million of reserves, respectively, and $44.9 million and $63.5 million of balances in restricted permanent mortgage loans, respectively.

Impaired Loans. Generally, classified non-accrual commercial loans over $1 million are deemed to be impaired and are assessed for impairment measurement in accordance with ASC 310-10. Also, all commercial and retail consumer loans classified as troubled debt restructurings are deemed to be impaired and are assessed for impairment measurement in accordance with ASC 310-10.

When a loan is placed on nonaccrual status, accrued interest is reversed through interest income. FHN's policy is that interest payments received on impaired and nonaccrual loans are recognized as a payment of principal. Once all principal has been received, additional payments are recognized as interest income on a cash basis.

The average balance of impaired loans was $610.5 million and $612.2 million for the three and six months ended June 30, 2011, and $1.8 million and $3.1 million of interest income was recognized during the respective periods related to such impaired loans. The average balance of impaired loans was $613.4 million and $568.7 million for the three and six months ended June 30, 2010, and $.7 million and $1.3 million of interest income was recognized during the respective periods related to such impaired loans. The following tables provide loan classes with the period-end and quarterly average amount of recorded investment in impaired loans for which there is a related allowance for loan loss, the period-end and quarterly average amount of recorded investment in impaired loans where there is no related allowance for loan loss, the total unpaid principal balance of the impaired loans, and amount of interest income recognized on the impaired loans:

							Three Months Ended				Six Months Ended
	June 30, 2011						June 30, 2011				June 30, 2011
	Recorded		Unpaid Principal		Related		Average Recorded		Interest Income		Average Recorded		Interest Income
(Dollars in thousands)	Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	96,198	$	117,608	$	—	$	89,618	$	232	$	70,328	$	489
TRUPs		52,742		57,000		—		43,857		—		39,074		—
Income CRE		96,935		173,878		—		110,102		392		102,411		531
Residential CRE		42,920		93,746		—		53,571		269		51,161		344
Total	$	288,795	$	442,232	$	—	$	297,148	$	893	$	262,974	$	1,364
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	46,690	$	53,258	$	23,980	$	57,790	$	81	$	81,482	$	140
TRUPs		27,266		30,000		26,693		27,266		—		27,266		—
Income CRE		12,129		12,314		3,550		11,866		11		23,335		11
Residential CRE		22,395		22,631		6,247		22,351		—		31,354		—
Total	$	108,480	$	118,203	$	60,470	$	119,273	$	92	$	163,437	$	151
Retail:
HELOC	$	36,617	$	36,617	$	11,818	$	33,507	$	180	$	30,996	$	321
R/E Installment Loans		54,500		54,500		11,837		51,337		182		49,450		344
Permanent Mortgage		111,979		111,979		14,586		107,935		434		104,372		914
Credit Card & Other		1,186		1,186		752		1,250		12		975		24
Total	$	204,282	$	204,282	$	38,993	$	194,029	$	808	$	185,793	$	1,603
Total commercial	$	397,275	$	560,435	$	60,470	$	416,421	$	985	$	426,411	$	1,515
Total retail	$	204,282	$	204,282	$	38,993	$	194,029	$	808	$	185,793	$	1,603
Total impaired loans	$	601,557	$	764,717	$	99,463	$	610,450	$	1,793	$	612,204	$	3,118

	June 30, 2010
	Recorded		Unpaid Principal		Related
(Dollars in thousands)	Investment		Balance		Allowance
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	25,552	$	32,233	$	—
TRUPs		36,756		42,700		—
Income CRE		98,816		190,519		—
Residential CRE		96,584		202,797		—
Total	$	257,708	$	468,249	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	82,373	$	118,120	$	38,069
TRUPs		27,266		30,000		14,022
Income CRE		45,841		52,735		12,107
Residential CRE		53,595		60,319		16,051
Total	$	209,075	$	261,174	$	80,249
Retail:
HELOC	$	17,493	$	17,493	$	5,025
R/E Installment Loans		23,844		23,844		6,849
Permanent Mortgage		64,384		64,384		9,793
OTC, Credit Card, & Other		634		634		292
Total	$	106,355	$	106,355	$	21,959
Total commercial	$	466,783	$	729,423	$	80,249
Total retail	$	106,355	$	106,355	$	21,959
Total impaired loans	$	573,138	$	835,778	$	102,208

Asset Quality Indicators. As previously discussed, FHN employs a dual-grade commercial risk grading methodology to assign an estimate for PD and the LGD for each commercial loan. FHN utilizes these grades to measure, monitor, and assess credit risk within the commercial loan portfolio. The methodology utilizes multiple scorecards that have been developed using a combination of objective and subjective factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are "pass" grades. Prior to second quarter 2011, all loans with an assigned PD grade of "12" which is the lowest pass grade were included on the Watch list. In second quarter 2011, FHN implemented an enhanced process for determining which loans warrant additional oversight and monitoring. The identification of Watch List loans is now determined by the appropriate relationship team and is generally driven by specific events that may impact borrowers, rather than being driven solely by the assigned PD grade. This process enhancement did not have a material impact on the allowance for loan and lease losses. PD grades 13-16 corresponds to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Pass loan grades are required to be re-assessed annually or whenever there has been a material change in the financial condition of the borrower or structure of the relationship. Loans graded 13 or worse are re-assessed on a quarterly basis. LGD grades are assigned based on a scale of 1-12 and represent FHN's expected recovery based on collateral type in the event a loan defaults.

The following table provides the balances of commercial loan portfolio classes, disaggregated by PD grade as of June 30, 2011:

	June 30, 2011
	General		Loans to Mortgage				Income		Residential
(Dollars in millions)	C&I		Companies		TRUPS (a)		CRE		CRE		Total
PD Grade:
1	$	110	$	—	$	—	$	—	$	—	$	110
2		125		—		—		3		—		128
3		169		—		—		13		—		182
4		184		—		—		7		—		191
5		300		—		—		17		—		317
6		798		62		—		70		1		931
7		852		179		—		111		3		1,145
8		1,128		256		—		174		7		1,565
9		542		84		—		119		3		748
10		435		—		—		146		2		583
11		530		—		—		111		1		642
12		99		—		—		17		5		121
13		348		—		329		125		10		812
14,15,16		406		1		20		289		86		802
Total loans collectively evaluated for impairment		6,026		582		349		1,202		118		8,277
Total loans individually evaluated for impairment		143		—		80		109		65		397
Total commercial loans	$	6,169	$	582	$	429	$	1,311	$	183	$	8,674

(a) Presented net of a $35.6 million lower of cost or market ("LOCOM") valuation allowance. Based on the underlying structure of the notes, the highest possible internal grade is "13". Portfolio reserve estimate considers recent financial performance of individual borrowers and other factors.

The retail portfolio is comprised primarily of smaller balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of retail loan-types, FHN is able to utilize the Fair Isaac's ("FICO") score, among other attributes, to assess the quality of consumer borrowers. FICO scores are refreshed on a quarterly basis and attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are also other indicators of retail portfolio asset quality.

The following tables reflect period-end balances and various asset quality indicators by origination vintage for the HELOC, real estate installment, and permanent mortgage classes of loans as of June 30, 2011. Beginning with the first quarter Form 10-Q filing, the permanent mortgage asset quality indicators have been updated to allow a consistent presentation of the retail real estate loan portfolios.

HELOC

			Origination Characteristics														Avg
Origination	Period End							%			%			%			Refreshed
Vintage	Balance(a)		Avg orig CLTV			Avg orig FICO		Broker			TN			1st Lien			FICO
pre-2003	$	206		75.4	%		723		14.6	%		41.4	%		22.8	%		720
2003		298		76.1	%		733		24.0	%		25.8	%		16.0	%		726
2004		637		79.6	%		728		32.0	%		17.4	%		19.1	%		720
2005		789		79.5	%		734		16.1	%		16.7	%		12.1	%		721
2006		593		76.6	%		742		6.9	%		23.6	%		13.8	%		726
2007		599		77.5	%		746		13.4	%		29.3	%		14.8	%		732
2008		307		74.0	%		755		8.7	%		69.7	%		36.5	%		749
2009		192		71.6	%		755		0.0	%		86.3	%		44.9	%		755
2010		192		73.2	%		756		0.0	%		94.9	%		45.8	%		758
2011		72		72.7	%		756		0.0	%		94.4	%		46.9	%		758
Total	$	3,885		77.0	%		740		14.9	%		34.7	%		20.6	%		730

(a) Includes $649.2 million of restricted loan balances.

R/E Installment Loans

			Origination Characteristics														Avg
Origination	Period End							%			%			%			Refreshed
Vintage	Balance		Avg orig CLTV			Avg orig FICO		Broker			TN			1st Lien			FICO
pre-2003	$	69		77.5	%		693		17.9	%		62.4	%		67.1	%		689
2003		192		72.5	%		723		3.2	%		44.4	%		77.6	%		732
2004		113		74.0	%		712		7.3	%		50.9	%		72.1	%		712
2005		304		83.0	%		721		25.9	%		21.1	%		27.7	%		716
2006		334		78.9	%		722		4.6	%		24.6	%		25.1	%		707
2007		465		81.9	%		731		15.8	%		24.0	%		24.6	%		715
2008		182		77.1	%		737		5.7	%		77.8	%		79.2	%		733
2009		118		71.4	%		752		0.0	%		89.2	%		82.2	%		754
2010		212		85.0	%		748		0.0	%		89.1	%		97.2	%		749
2011		160		85.1	%		757		0.0	%		91.5	%		97.0	%		755
Total	$	2,149		79.8	%		731		9.5	%		47.7	%		54.0	%		724

Permanent Mortgage

			Origination Characteristics														Avg
Origination	Period End							%			%			%			Refreshed
Vintage	Balance(a)		Avg orig CLTV			Avg orig FICO		Broker			TN			1st Lien			FICO
pre-2004	$	196		67.6	%		726		50.9	%		8.9	%		100.0	%		732
2004		14		82.6	%		724		18.5	%		26.0	%		100.0	%		700
2005		71		79.8	%		740		36.2	%		3.0	%		98.8	%		720
2006		142		77.9	%		732		40.1	%		2.1	%		96.9	%		686
2007		407		76.9	%		731		55.5	%		0.9	%		95.6	%		678
2008		230		80.0	%		736		55.3	%		0.4	%		100.0	%		679
Total	$	1,060		76.4	%		732		50.8	%		2.9	%		97.9	%		691

(a) Includes $44.9 million of restricted loan balances and first lien mortgages recognized through the exercise of cleanup calls for certain proprietary first lien securitization trusts.

The following table reflects accruing delinquency amounts for the credit card and other portfolio classes.

	June 30, 2011
(Dollars in millions)	Credit Card		Other
Accruing delinquent balances:
30-89 days past due	$	1.4	$	0.9
90+ days past due		1.1		—
Total	$	2.5	$	0.9

Non-accrual and Past Due Loans. Loans are placed on non-accrual status if it becomes evident that full collection of principal and interest is at risk, impairment has been recognized as a partial charge-off of principal balance, or if the terms of a loan have been modified through troubled debt restructuring efforts. When a loan is placed on nonaccrual status, FHN applies the entire amount of any subsequent payments (including interest) to the outstanding principal balance.

The following table reflects accruing and non-accruing loans by class on June 30, 2011:

	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	$	5,999,416	$	36,859	$	398	$	6,036,673	$	70,532	$	8,229	$	52,773	$	131,534	$	6,168,207
Loans to mortgage companies		581,871		—		—		581,871		—		—		656		656		582,527
TRUPS (a)		349,519		—		—		349,519		—		—		80,008		80,008		429,527
Total commercial (C&I)		6,930,806		36,859		398		6,968,063		70,532		8,229		133,437		212,198		7,180,261
Commercial real estate:
Income CRE		1,184,361		14,322		181		1,198,864		35,221		6,552		70,142		111,915		1,310,779
Residential CRE		103,254		9,392		—		112,646		30,430		1,105		38,676		70,211		182,857
Total commercial real estate		1,287,615		23,714		181		1,311,510		65,651		7,657		108,818		182,126		1,493,636
Consumer real estate:
HELOC (b)		3,794,849		41,577		25,909		3,862,335		13,332		1,550		7,542		22,424		3,884,759
R/E installment loans		2,099,708		22,627		10,656		2,132,991		10,429		1,168		3,054		14,651		2,147,642
Total consumer real estate		5,894,557		64,204		36,565		5,995,326		23,761		2,718		10,596		37,075		6,032,401
Permanent mortgage (b)		877,922		20,865		20,674		919,461		27,813		2,537		110,164		140,514		1,059,975
Credit card & other
Credit card		189,180		1,480		1,141		191,801		—		—		—		—		191,801
Other (c)		93,173		908		10		94,091		6		—		9,475		9,481		103,572
Total credit card & other		282,353		2,388		1,151		285,892		6		—		9,475		9,481		295,373
Total loans, net of unearned	$	15,273,253	$	148,030	$	58,969	$	15,480,252	$	187,763	$	21,141	$	372,490	$	581,394	$	16,061,646

(a)	Includes LOCOM valuation allowance $35.6 million.
(b)	Includes restricted loans.
(c)	Includes OTC and non real estate installment loans.

The following table reflects accruing and non-accruing loans by class on June 30, 2010:

	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	$	5,548,007	$	69,396	$	2,125	$	5,619,528	$	67,980	$	19,035	$	52,184	$	139,199	$	5,758,727
Loans to mortgage companies		813,457		—		—		813,457		—		—		2,083		2,083		815,540
TRUPS (a)		365,700		—		—		365,700		—		—		63,831		63,831		429,531
Total commercial (C&I)		6,727,164		69,396		2,125		6,798,685		67,980		19,035		118,098		205,113		7,003,798
Commercial real estate:
Income CRE		1,431,439		20,394		633		1,452,466		25,131		4,777		127,461		157,369		1,609,835
Residential CRE		210,329		4,239		5,633		220,201		32,340		659		143,734		176,733		396,934
Total commercial real estate		1,641,768		24,633		6,266		1,672,667		57,471		5,436		271,195		334,102		2,006,769
Consumer real estate:
HELOC (b)		4,188,397		65,836		33,548		4,287,781		5,509		1,279		5,360		12,148		4,299,929
R/E installment loans		2,336,231		39,585		19,405		2,395,221		5,556		958		4,186		10,700		2,405,921
Total consumer real estate		6,524,628		105,421		52,953		6,683,002		11,065		2,237		9,546		22,848		6,705,850
Permanent mortgage (b)		907,103		23,734		27,582		958,419		12,732		1,509		109,743		123,984		1,082,403
Credit card & other
Credit card		185,222		2,091		1,840		189,153		—		—		—		—		189,153
Other (c)		111,867		651		98		112,616		—		—		53,461		53,461		166,077
Total credit card & other		297,089		2,742		1,938		301,769		—		—		53,461		53,461		355,230
Total loans, net of unearned	$	16,097,752	$	225,926	$	90,864	$	16,414,542	$	149,248	$	28,217	$	562,043	$	739,508	$	17,154,050

(a)	Includes LOCOM valuation allowance $35.6 million.
(b)	Includes restricted loans.
(c)	Includes OTC. All nonaccruing balances reflect OTC.

On June 30, 2011 and 2010, FHN had loans classified as troubled debt restructurings of $306.2 million and $142.4 million, respectively. Additionally, FHN had restructured $70.1 million and $34.7 million of loans held for sale as of June 30, 2011 and 2010, respectively. For restructured loans in the portfolio, FHN had loan loss reserves of $45.2 million, or 15 percent of the recorded investment amount, as of June 30, 2011. On June 30, 2011 and 2010, there were no significant outstanding commitments to advance additional funds to customers whose loans had been restructured.