Fair Value Of Assets And Liabilities (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Of Assets And Liabilities [Abstract]

Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

Recurring Fair Value Measurements
The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2012:
			September 30, 2012
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - capital markets:
	U.S. treasuries		$	-	$	124,722	$	-	$	124,722
	Government agency issued MBS			-		564,425		-		564,425
	Government agency issued CMO			-		72,340		-		72,340
	Other U.S. government agencies			-		82,736		-		82,736
	States and municipalities			-		31,817		-		31,817
	Corporate and other debt			-		308,309		5		308,314
	Equity, mutual funds, and other			-		811		-		811
		Total trading securities - capital markets		-		1,185,160		5		1,185,165
Trading securities - mortgage banking
	Principal only			-		5,462		-		5,462
	Interest only			-		-		13,739		13,739
		Total trading securities - mortgage banking		-		5,462		13,739		19,201
Loans held-for-sale				-		10,996		213,639		224,635
Securities available for sale:
	U.S. treasuries			-		54,996		-		54,996
	Government agency issued MBS			-		1,271,450		-		1,271,450
	Government agency issued CMO			-		1,554,741		-		1,554,741
	Other U.S. government agencies			-		-		4,202		4,202
	States and municipalities			-		16,470		1,500		17,970
	Corporate and other debt			517		-		-		517
	Venture capital			-		-		9,000		9,000
	Equity, mutual funds, and other			13,277		-		-		13,277
		Total securities available-for-sale		13,794		2,897,657		14,702		2,926,153
Mortgage servicing rights				-		-		120,537		120,537
Other assets:
	Deferred compensation assets			23,301		-		-		23,301
	Derivatives, forwards and futures			14,862		-		-		14,862
	Derivatives, interest rate contracts			-		319,163		-		319,163
		Total other assets		38,163		319,163		-		357,326
		Total assets	$	51,957	$	4,418,438	$	362,622	$	4,833,017
Trading liabilities - capital markets:
	U.S. treasuries		$	-	$	350,434	$	-	$	350,434
	Government agency issued MBS			-		5,125		-		5,125
	Government agency issued CMO			-		8,096		-		8,096
	Other U.S. government agencies			-		4,439		-		4,439
	States and municipalities			-		1,109		-		1,109
	Corporate and other debt			-		146,750		-		146,750
	Equity, mutual funds, and other			-		1,017		-		1,017
		Total trading liabilities - capital markets		-		516,970		-		516,970
Other short-term borrowings				-		-		11,585		11,585
Other liabilities:
	Derivatives, forwards and futures			12,424		-		-		12,424
	Derivatives, interest rate contracts			-		210,320		-		210,320
	Derivatives, other			-		-		2,340		2,340
		Total other liabilities		12,424		210,320		2,340		225,084
		Total liabilities	$	12,424	$	727,290	$	13,925	$	753,639

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2011:
			September 30, 2011
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - capital markets:
	U.S. treasuries		$	-	$	102,054	$	-	$	102,054
	Government agency issued MBS			-		374,691		-		374,691
	Government agency issued CMO			-		189,044		-		189,044
	Other U.S. government agencies			-		193,021		-		193,021
	States and municipalities			-		28,229		-		28,229
	Corporate and other debt			-		312,399		5		312,404
		Total trading securities - capital markets		-		1,199,438		5		1,199,443
Trading securities - mortgage banking
	Principal only			-		8,585		-		8,585
	Interest only			-		-		19,168		19,168
		Total trading securities - mortgage banking		-		8,585		19,168		27,753
Loans held-for-sale				-		10,468		206,852		217,320
Securities available for sale:
	U.S. treasuries			-		40,189		-		40,189
	Government agency issued MBS			-		1,514,960		-		1,514,960
	Government agency issued CMO			-		1,510,175		-		1,510,175
	Other U.S. government agencies			-		11,565		6,366		17,931
	States and municipalities			-		17,865		1,500		19,365
	Corporate and other debt			528		-		-		528
	Venture capital			-		-		13,179		13,179
	Equity, mutual funds, and other			13,260		-		-		13,260
		Total securities available-for-sale		13,788		3,094,754		21,045		3,129,587
Mortgage servicing rights				-		-		150,803		150,803
Other assets:
	Deferred compensation assets			24,414		-		-		24,414
	Derivatives, forwards and futures			37,431		-		-		37,431
	Derivatives, interest rate contracts			-		347,266		-		347,266
	Derivatives, other			-		62		-		62
		Total other assets		61,845		347,328		-		409,173
		Total assets	$	75,633	$	4,660,573	$	397,873	$	5,134,079
Trading liabilities - capital markets:
	U.S. treasuries		$	-	$	281,174	$	-	$	281,174
	Government agency issued MBS			-		13		-		13
	Government agency issued CMO			-		1,604		-		1,604
	Other U.S. government agencies			-		1,649		-		1,649
	States and municipalities			-		1,379		-		1,379
	Corporate and other debt			-		185,301		-		185,301
		Total trading liabilities - capital markets		-		471,120		-		471,120
Other short-term borrowings				-		-		15,814		15,814
Other liabilities:
	Derivatives, forwards and futures			18,377		-		-		18,377
	Derivatives, interest rate contracts			-		242,871		-		242,871
	Derivatives, other			-		-		3,656		3,656
		Total other liabilities		18,377		242,871		3,656		264,904
		Total liabilities	$	18,377	$	713,991	$	19,470	$	751,838

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value

Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the three months ended September 30, 2012 and 2011, on a recurring basis are summarized as follows:
			Three Months Ended September 30, 2012
										Securities available-for-sale						Mortgage								Other
			Trading			Loans held-				Investment			Venture			servicing				Net derivative				short-term
(Dollars in thousands)			securities			for-sale				portfolio			Capital			rights, net				liabilities				borrowings
Balance on July 1, 2012			$	14,905			$	214,560			$	6,162	$	9,000			$	129,291			$	(3,505)			$	(12,439)
	Total net gains/(losses) included in:
		Net income		1,068				(2,799)				-		-				(2,098)				10				854
		Other comprehensive income		-				-				(25)		-				-				-				-
	Purchases			-				17,368				-		-				-				-				-
	Issuances			-				-				-		-				-				-				-
	Sales			-				-				-		-				-				-				-
	Settlements			(2,229)				(4,914)				(435)		-				(6,656)				1,155				-
	Net transfers into/(out of) Level 3			-				(10,576)	(c)			-		-				-				-				-
Balance on September 30, 2012			$	13,744			$	213,639			$	5,702	$	9,000			$	120,537			$	(2,340)			$	(11,585)
Net unrealized gains/(losses) included in net income			$	707	(a)		$	(2,799)	(a)		$	-	$	-	(b)		$	(2,181)	(a)		$	10	(d)		$	854	(a)

			Three Months Ended September 30, 2011
										Securities available-for-sale						Mortgage								Other
			Trading			Loans held-				Investment			Venture			servicing				Net derivative				short-term
(Dollars in thousands)			securities			for-sale				portfolio			Capital			rights, net				liabilities				borrowings
Balance on July 1, 2011			$	22,853			$	215,870			$	8,181	$	13,179			$	186,958			$	(1,270)			$	(23,645)
	Total net gains/(losses) included in:
		Net income		(750)				(3,195)				-		-				(30,800)				-				7,831
		Other comprehensive income		-				-				87		-				-				-				-
	Purchases			-				1,316				-		-				-				-				-
	Issuances			-				-				-		-				-				(2,500)				-
	Sales			-				-				-		-				-				-				-
	Settlements			(2,930)				(6,199)				(402)		-				(5,355)				114				-
	Net transfers into/(out of) Level 3			-				(940)	(c)			-		-				-				-				-
Balance on September 30, 2011			$	19,173			$	206,852			$	7,866	$	13,179			$	150,803			$	(3,656)			$	(15,814)
Net unrealized gains/(losses) included in net income			$	(1,116)	(a)		$	(3,195)	(a)		$	-	$	-	(b)		$	(30,330)	(a)		$	-	(d)		$	7,831	(a)

• Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
• Represents recognized gains and losses attributable to venture capital investments classified within securities available-for-sale that are included in securities gains/(losses) in noninterest income.
• Transfers out of recurring level 3 balances reflect movements out of loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
• Included in Other expense.

Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the nine months ended September 30, 2012 and 2011, on a recurring basis are summarized as follows:
			Nine Months Ended September 30, 2012
											Securities available-for-sale					Mortgage								Other
			Trading			Loans held-				Investment			Venture			servicing				Net derivative				short-term
(Dollars in thousands)			securities			for-sale				portfolio			Capital			rights, net				liabilities				borrowings
Balance on January 1, 2012			$	18,059			$	210,487			$	7,262	$	12,179			$	144,069			$	(11,820)			$	(14,833)
	Total net gains/(losses) included in:
		Net income		2,847				(849)				-		5,071				(4,541)				(1,601)				3,248
		Other comprehensive income		-				-				(195)		-				-				-				-
	Purchases			-				35,119				-		-				-				-				-
	Issuances			-				-				-		-				-				-				-
	Sales			-				-				-		(8,250)				-				-				-
	Settlements			(7,162)				(15,539)				(1,365)		-				(18,991)				11,081				-
	Net transfers into/(out of) Level 3			-				(15,579)	(c)			-		-				-				-				-
Balance on September 30, 2012			$	13,744			$	213,639			$	5,702	$	9,000			$	120,537			$	(2,340)			$	(11,585)
Net unrealized gains/(losses) included in net income			$	1,595	(a)		$	(849)	(a)		$	-	$	-	(b)		$	(3,800)	(a)		$	(1,601)	(d)		$	3,248	(a)

			Nine Months Ended September 30, 2011
											Securities available-for-sale					Mortgage								Other
			Trading			Loans held-				Investment			Venture			servicing				Net derivative				short-term
(Dollars in thousands)			securities			for-sale				portfolio			Capital			rights, net				liabilities				borrowings
Balance on January 1, 2011			$	26,478			$	207,632			$	39,391	$	13,179			$	207,319			$	(1,000)			$	(27,309)
	Total net gains/(losses) included in:
		Net income		2,183				1,928				-		-				(38,159)				(1,132)				11,495
		Other comprehensive income		-				-				(1,601)		-				-				-				-
	Purchases			-				25,205				-		-				-				-				-
	Issuances			-				-				-		-				-				(2,500)				-
	Sales			(132)				-				(29,217)		-				-				-				-
	Settlements			(9,356)				(23,192)				(707)		-				(18,357)				976				-
	Net transfers into/(out of) Level 3			-				(4,721)	(c)			-		-				-				-				-
Balance on September 30, 2011			$	19,173			$	206,852			$	7,866	$	13,179			$	150,803			$	(3,656)			$	(15,814)
Net unrealized gains/(losses) included in net income			$	944	(a)		$	1,928	(a)		$	-	$	-	(b)		$	(37,378)	(a)		$	(1,132)	(d)		$	11,495	(a)

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

• Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
• Represents recognized gains and losses attributable to venture capital investments classified within securities available-for-sale that are included in securities gains/(losses) in noninterest income.
• Transfers out of recurring level 3 balances reflect movements out of loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
• Included in Other expense.

Nonrecurring Fair Value Measurements

									Three Months Ended		Nine Months Ended
	Carrying value at September 30, 2012								September 30, 2012		September 30, 2012
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)		Net gains/(losses)
Loans held-for-sale - SBAs	$	-	$	37,429	$	-	$	37,429	$	-	$	15
Loans held-for-sale - first mortgages		-		-		13,467		13,467		(671)		(355)
Loans, net of unearned income (a)		-		-		128,626		128,626		(44,608)		(61,958)
Real estate acquired by foreclosure (b)		-		-		50,589		50,589		(2,732)		(7,873)
Other assets (c)		-		-		76,822		76,822		(3,201)		(6,405)
									$	(51,212)	$	(76,576)

									Three Months Ended		Nine Months Ended
	Carrying value at September 30, 2011								September 30, 2011		September 30, 2011
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)		Net gains/(losses)
Loans held-for-sale - SBAs	$	-	$	46,592	$	-	$	46,592	$	-	$	(2)
Loans held-for-sale - first mortgages		-		-		13,160		13,160		(3,889)		(8,506)
Loans, net of unearned income (a)		-		-		135,667		135,667		(20,130)		(37,890)
Real estate acquired by foreclosure (b)		-		-		80,055		80,055		(4,350)		(14,001)
Other assets (c)		-		-		75,129		75,129		(3,434)		(7,790)
									$	(31,803)	$	(68,189)

• Represents carrying value of loans for which adjustments are based on the appraised value of the collateral. Write-downs on these loans are recognized as part of provision.
• Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
• Represents tax credit investments.

Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements

Level 3 Measurements
The following table provides information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of September 30, 2012:
(Dollars in Thousands)
	Fair Value at
Level 3 Class	September 30, 2012		Valuation Techniques	Unobservable Input	Values Utilized
Interest only trading securities	$	13,739	Discounted cash flow	(a)	(a)
Loans held-for-sale - mortgages		227,106	Discounted cash flow	Prepayment speeds	6% - 10%
				Credit spreads	2% - 4%
				Delinquency adjustment factor	15% - 25% added to credit spread
				Loss severity trends	50% - 60% of UPB
Venture capital investments		9,000	Recent purchase offers	Adjustment for preferences in equity tranches	0% - 10% discount
			Recent capitalization transactions	Adjustment for preferences in equity tranches	0% - 10% discount
Mortgage servicing rights		120,537	Discounted cash flow	(a)	(a)
Other short-term borrowings		11,585	Discounted cash flow	(b)	(b)
Derivative liabilities, other		2,340	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.0 billion
				Probability of resolution scenarios	10%-50%
				Time until resolution	9 - 18 months
Loans, net of unearned income (c)		128,626	Appraisals from comparable properties	Adjustment for value changes since appraisal	5% - 15% of appraisal
			Other collateral valuations	Borrowing base certificates	20% - 50% of gross value
				Financial Statements/Auction Values	0% - 25% of reported value
Real estate acquired by foreclosure (d)		50,589	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (e)		76,822	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal

• The unobservable inputs for Interest-only trading securities and MSR are discussed in Note 12 – Loan Sales and Securitizations.
• The inputs and associated ranges for Other short-term borrowings mirror those of the related MSR.
• Represents carrying value of loans for which adjustments are based on the appraised value of the collateral. Write-downs on these loans are recognized as part of provision.
• Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
• Represents tax credit investments.

Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount

The following table reflects the differences between the fair value carrying amount of mortgages held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
		September 30, 2012
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Loans held-for-sale reported at fair value:
	Total loans	$	224,635	$	330,900		$	(106,265)
	Nonaccrual loans		43,398		92,831			(49,433)
	Loans 90 days or more past due and still accruing		10,481		21,329			(10,848)
		September 30, 2011
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Loans held-for-sale reported at fair value:
	Total loans	$	217,320	$	294,411		$	(77,091)
	Nonaccrual loans		40,178		84,216			(44,038)
	Loans 90 days or more past due and still accruing		12,205		27,260			(15,055)

Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings

Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:
			Three Months Ended				Nine Months Ended
			September 30				September 30
(Dollars in thousands)			2012		2011		2012		2011
Changes in fair value included in net income:
	Mortgage banking noninterest income
		Loans held-for-sale	$	(2,799)	$	(3,195)	$	(849)	$	1,928
		Other short-term borrowings		854		7,831		3,248		11,495

Summary Of Book Value And Estimated Fair Value Of Financial Instruments

				September 30, 2012
				Book		Fair Value
(Dollars in thousands)				Value		Level 1		Level 2		Level 3		Total
Assets:
Loans, net of unearned income and allowance for loan losses
	Commercial:
		Commercial, financial and industrial		$	8,359,909	$	-	$	-	$	8,138,108	$	8,138,108
		Commercial real estate
			Income CRE		1,138,348		-		-		1,083,886		1,083,886
			Residential CRE		64,157		-		-		62,734		62,734
	Retail:
		Consumer real estate (c)			5,619,956		-		-		5,287,039		5,287,039
		Permanent mortgage (c)			779,954		-		-		722,087		722,087
		Credit card & other			279,715		-		-		280,344		280,344
Total loans, net of unearned income and allowance for loan losses					16,242,039		-		-		15,574,198		15,574,198
Short-term financial assets
	Total interest-bearing cash				440,916		440,916		-		-		440,916
	Total federal funds sold & securities purchased under agreements to resell				529,688		-		529,688		-		529,688
Total short-term financial assets					970,604		440,916		529,688		-		970,604
Trading securities (a)					1,204,366		-		1,190,622		13,744		1,204,366
Loans held-for-sale (a)					410,550		-		48,425		362,125		410,550
Securities available-for-sale (a) (b)					3,123,629		13,794		2,897,657		212,178		3,123,629
Derivative assets (a)					334,025		14,862		319,163		0		334,025
Other assets
	Tax credit investments				76,822		-		-		76,822		76,822
	Deferred compensation assets				23,301		23,301		-		-		23,301
Total other assets					100,123		23,301		-		76,822		100,123
Nonearning assets
	Cash & due from banks				355,978		355,978		-		-		355,978
	Capital markets receivables				791,190		-		791,190		-		791,190
	Accrued interest receivable				85,042		-		85,042		-		85,042
Total nonearning assets					1,232,210		355,978		876,232		-		1,232,210
Total assets				$	23,617,546	$	848,851	$	5,861,787	$	16,239,067	$	22,949,705
Liabilities:
Deposits:
	Defined maturity			$	1,582,097	$	-	$	1,618,019	$	-	$	1,618,019
	Undefined maturity				14,646,014		-		14,646,014		-		14,646,014
Total deposits					16,228,111		-		16,264,033		-		16,264,033
Trading liabilities (a)					516,970		-		516,970		-		516,970
Short-term financial liabilities
	Total federal funds purchased & securities sold under agreements to repurchase				1,794,176		-		1,794,176		-		1,794,176
	Total other borrowings				856,958		-		845,373		11,585		856,958
Total short-term financial liabilities					2,651,134		-		2,639,549		11,585		2,651,134
Term borrowings
	Real estate investment trust-preferred				45,743		-		-		42,300		42,300
	Term borrowings - new market tax credit investment				15,301		-		-		16,280		16,280
	Borrowings secured by residential real estate				415,975		-		-		353,578		353,578
	Other long term borrowings				1,786,219		-		1,716,741		-		1,716,741
Total term borrowings					2,263,238		-		1,716,741		412,158		2,128,899
Derivative liabilities (a)					225,084		12,424		210,320		2,340		225,084
Other noninterest-bearing liabilities
	Capital markets payables				574,201		-		574,201		-		574,201
	Accrued interest payable				43,184		-		43,184		-		43,184
Total other noninterest-bearing liabilities					617,385		-		617,385		-		617,385
Total liabilities				$	22,501,922	$	12,424	$	21,964,998	$	426,083	$	22,403,505

• Classes are detailed in the recurring and nonrecurring measurement tables.
• Level 3 includes restricted investments in FHLB-Cincinnati stock of $125.5 million and FRB stock of $66.0 million.
• Includes restricted real estate loans and secured borrowings.

		September 30, 2011
		Book		Fair
(Dollars in thousands)		Value		Value
Assets:
Loans, net of unearned income and allowance for loan losses		$	15,791,757	$	15,083,851
Short-term financial assets			1,077,937		1,077,937
Trading securities			1,227,197		1,227,197
Loans held-for-sale			386,147		386,147
Securities available-for-sale			3,327,846		3,327,846
Derivative assets			384,759		384,759
Other assets			99,543		99,543
Nonearning assets			952,045		952,045
Liabilities:
Deposits:
	Defined maturity	$	1,721,882	$	1,770,342
	Undefined maturity		13,976,373		13,976,373
Total deposits			15,698,255		15,746,715
Trading liabilities			471,120		471,120
Short-term financial liabilities			2,723,951		2,723,951
Term borrowings			2,509,806		2,222,021
Derivative liabilities			264,904		264,904
Other noninterest-bearing liabilities			554,302		554,302

	Contractual Amount				Fair Value
	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
Unfunded Commitments:
Loan commitments	$	7,890,786	$	7,417,606	$	1,571	$	1,419
Standby and other commitments		371,899		373,335		5,333		6,370