Derivatives (Tables)

3 Months Ended

Mar. 31, 2013

Derivatives [Abstract]

Derivatives Associated With Legacy Mortgage Servicing Activities

The following table summarizes FHN’s derivatives associated with legacy mortgage servicing activities for the three months ended March 31, 2013 and 2012:
										Gains/(Losses)
										Three Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			March 31, 2013
Retained Interests Hedging
Hedging Instruments:
	Forwards and Futures	$	124,000		$	162		$	-		$	(411)
	Interest Rate Swaps and Swaptions	$	735,000		$	1,956		$	215		$	735
Hedged Items:
	Mortgage Servicing Rights		N/A		$	106,329			N/A		$	1,177
	Other Retained Interests		N/A		$	16,454			N/A		$	481

										Gains/(Losses)
										Three Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			March 31, 2012
Retained Interests Hedging
Hedging Instruments:
	Forwards and Futures	$	2,361,000		$	25,200		$	1,155		$	(1,311)
	Interest Rate Swaps and Swaptions	$	2,420,000		$	9,713		$	30,443		$	4,384
Hedged Items:
	Mortgage Servicing Rights		N/A		$	139,672			N/A		$	5,031
	Other Retained Interests		N/A		$	24,610			N/A		$	960

Derivatives Associated With Capital Markets Trading Activities

The following table summarizes FHN’s derivatives associated with capital markets trading activities as of March 31, 2013 and 2012:
	March 31, 2013
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,477,632		$	119,866		$	1,327
Offsetting Upstream Interest Rate Contracts		1,477,632			1,327			119,866
Option Contracts Purchased		2,500			5			-
Option Contracts Written		2,500			-			2
Forwards and Futures Purchased		5,786,940			7,541			8,199
Forwards and Futures Sold		5,923,867			8,090			8,381

	March 31, 2012
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,502,356		$	113,429		$	2,749
Offsetting Upstream Interest Rate Contracts		1,502,356			2,749			113,429
Forwards and Futures Purchased		4,222,885			2,737			4,716
Forwards and Futures Sold		4,557,546			4,454			4,667

Derivatives Associated With Interest Rate Risk Management Activities

The following tables summarize FHN’s derivatives associated with interest rate risk management activities for the three months ended March 31, 2013 and 2012:
										Gains/(Losses)
										Three Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			March 31, 2013
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	925,608		$	49,941	$	330			$	(5,313)
	Offsetting Upstream Interest Rate Contracts (a)	$	925,608		$	330	$	50,741			$	5,713
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,604,000		$	85,114	$	7,427			$	(17,574)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,604,000	(c)		$	17,574	(d)

										Gains/(Losses)
										Three Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			March 31, 2012
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	1,000,992		$	63,749	$	362			$	(5,789)
	Offsetting Upstream Interest Rate Contracts (a)	$	1,000,992		$	362	$	65,449			$	6,189
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,604,000		$	117,944	$	1,236			$	(10,231)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,604,000	(c)		$	10,231	(d)

• Gains/losses included in the Other expense section of the Consolidated Condensed Statements of Income.
• Gains/losses included in the All other income and commissions section of the Consolidated Condensed Statements of Income.
• Represents par value of term borrowings being hedged.
• Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Schedule Of Derivative Activities Associated With Trust Preferred Loans

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans for the three months ended March 31, 2013 and 2012:

Gains/(Losses)

Three Months Ended

(Dollars in thousands)

Notional

Assets

Liabilities

March 31, 2013

Loan Portfolio Hedging

Hedging Instruments:

Interest Rate Swaps

$

21,500

N/A

$

1,456

$

587

Hedged Items:

Trust Preferred Loans (a)

N/A

$

21,500

(b)

N/A

$

(587)

(c)

Gains/(Losses)

Three Months Ended

(Dollars in thousands)

Notional

Assets

Liabilities

March 31, 2012

Loan Portfolio Hedging

Hedging Instruments:

Interest Rate Swaps

$

196,250

N/A

$

7,017

$

1,792

Hedged Items:

Trust Preferred Loans (a)

N/A

$

196,250

(b)

N/A

$

(1,790)

(c)

• Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.
• Represents principal balance being hedged.
• Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Derivative Assets And Collateral Received

The following table provides a detail of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of March 31:
								Gross amounts not offset in the
								Statement of Condition
			Gross amounts		Net amounts of		Derivative
	Gross amounts		offset in the		assets presented		liabilities
	of recognized		Statement of		in the Statement		available for		Collateral
(Dollars in thousands)	assets		Condition		of Condition (a)		offset		Received		Net amount
Derivative assets:
2013 (b)	$	258,534	$	-	$	258,534	$	(22,582)	$	(234,562)	$	1,390
2012 (b)		333,146		-		333,146		(46,301)		(265,428)		21,417

• Included in Derivative Assets on the Consolidated Condensed Statements of Condition. As of March 31, 2013 and 2012, $15.8 million and $7.2 million, respectively, of derivative assets (primarily capital markets forward contracts)have been excluded from these tables because they are generally not subject to master netting or similar agreements.
• 2013 is comprised entirely of interest rate derivative contracts. 2012 includes $307.9 million of interest rate derivative contracts and $25.2 million of forwards and futures contracts.

Derivative Liabilities and Collateral Pledged

The following table provides a detail of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of March 31:
									Gross amounts not offset in the
									Statement of Condition
			Gross amounts			Net amounts of
	Gross amounts		offset in the		liabilities presented			Derivative
	of recognized		Statement of			in the Statement		assets available		Collateral
(Dollars in thousands)	liabilities		Condition			of Condition (a)		for offset		pledged		Net amount
Derivative liabilities:
2013 (b)	$	181,362	$	-		$	181,362	$	(22,582)	$	(153,870)	$	4,910
2012 (b)		221,840		-			221,840		(46,301)		(170,153)		5,386

• Included in Derivative Liabilities on the Consolidated Condensed Statements of Condition. As of March 31, 2013 and 2012, $18.6 million and $12.3 million, respectively, of derivative liabilities (primarily capital markets forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
• 2013 is comprised entirely of interest rate derivative contracts. 2012 includes $220.7 million of interest rate derivative contracts and $1.1 million of forwards and futures contracts.