Fair Value Of Assets And Liabilities (Tables)

3 Months Ended

Mar. 31, 2013

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 March 31, 2013:
			March 31, 2013
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - capital markets:
	U.S. treasuries		$	-	$	99,618	$	-	$	99,618
	Government agency issued MBS			-		385,351		-		385,351
	Government agency issued CMO			-		283,932		-		283,932
	Other U.S. government agencies			-		195,051		-		195,051
	States and municipalities			-		21,141		-		21,141
	Corporate and other debt			-		396,186		5		396,191
	Equity, mutual funds, and other			-		8		-		8
		Total trading securities - capital markets		-		1,381,287		5		1,381,292
Trading securities - mortgage banking
	Principal only			-		-		5,293		5,293
	Interest only			-		-		11,161		11,161
		Total trading securities - mortgage banking		-		-		16,454		16,454
Loans held-for-sale				-		-		232,684		232,684
Securities available for sale:
	U.S. treasuries			-		39,994		-		39,994
	Government agency issued MBS			-		1,065,551		-		1,065,551
	Government agency issued CMO			-		1,849,353		-		1,849,353
	Other U.S. government agencies			-		-		3,276		3,276
	States and municipalities			-		13,755		1,500		15,255
	Venture capital			-		-		4,300		4,300
	Equity, mutual funds, and other			14,996		-		-		14,996
		Total securities available-for-sale		14,996		2,968,653		9,076		2,992,725
Mortgage servicing rights				-		-		109,102		109,102
Other assets:
	Deferred compensation assets			22,785		-		-		22,785
	Derivatives, forwards and futures			15,793		-		-		15,793
	Derivatives, interest rate contracts			-		258,539		-		258,539
		Total other assets		38,578		258,539		-		297,117
		Total assets	$	53,574	$	4,608,479	$	367,321	$	5,029,374
Trading liabilities - capital markets:
	U.S. treasuries		$	-	$	434,119	$	-	$	434,119
	Government agency issued MBS			-		26,121		-		26,121
	Government agency issued CMO			-		24,986		-		24,986
	Other U.S. government agencies			-		50,547		-		50,547
	Corporate and other debt			-		245,533		-		245,533
		Total trading liabilities - capital markets		-		781,306		-		781,306
Other short-term borrowings				-		-		10,984		10,984
Other liabilities:
	Derivatives, forwards and futures			16,580		-		-		16,580
	Derivatives, interest rate contracts			-		181,364		-		181,364
	Derivatives, other			-		5		2,050		2,055
		Total other liabilities		16,580		181,369		2,050		199,999
		Total liabilities	$	16,580	$	962,675	$	13,034	$	992,289

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of March 31, 2012:
			March 31, 2012
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - capital markets:
	U.S. treasuries		$	-	$	106,317	$	-	$	106,317
	Government agency issued MBS			-		435,924		-		435,924
	Government agency issued CMO			-		190,244		-		190,244
	Other U.S. government agencies			-		183,718		-		183,718
	States and municipalities			-		33,481		-		33,481
	Corporate and other debt			-		263,298		5		263,303
	Equity, mutual funds, and other			-		444		-		444
		Total trading securities - capital markets		-		1,213,426		5		1,213,431
Trading securities - mortgage banking
	Principal only			-		7,229		-		7,229
	Interest only			-		-		17,381		17,381
		Total trading securities - mortgage banking		-		7,229		17,381		24,610
Loans held-for-sale				-		8,555		214,603		223,158
Securities available for sale:
	U.S. treasuries			-		40,037		-		40,037
	Government agency issued MBS			-		1,427,029		-		1,427,029
	Government agency issued CMO			-		1,572,836		-		1,572,836
	Other U.S. government agencies			-		9,453		5,094		14,547
	States and municipalities			-		16,570		1,500		18,070
	Corporate and other debt			527		-		-		527
	Venture capital			-		-		12,179		12,179
	Equity, mutual funds, and other			13,267		-		-		13,267
		Total securities available-for-sale		13,794		3,065,925		18,773		3,098,492
Mortgage servicing rights				-		-		142,956		142,956
Other assets:
	Deferred compensation assets			24,102		-		-		24,102
	Derivatives, forwards and futures			32,391		-		-		32,391
	Derivatives, interest rate contracts			-		307,946		-		307,946
		Total other assets		56,493		307,946		-		364,439
		Total assets	$	70,287	$	4,603,081	$	393,718	$	5,067,086
Trading liabilities - capital markets:
	U.S. treasuries		$	-	$	445,381	$	-	$	445,381
	Other U.S. government agencies			-		1,822		-		1,822
	States and municipalities			-		181		-		181
	Corporate and other debt			-		120,088		-		120,088
	Other			-		99		-		99
		Total trading liabilities - capital markets		-		567,571		-		567,571
Other short-term borrowings				-		-		15,073		15,073
Other liabilities:
	Derivatives, forwards and futures			10,538		-		-		10,538
	Derivatives, interest rate contracts			-		220,686		-		220,686
	Derivatives, other			-		4		2,960		2,964
		Total other liabilities		10,538		220,690		2,960		234,188
		Total liabilities	$	10,538	$	788,261	$	18,033	$	816,832

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 March 31, 2013 and 2012, on a recurring basis are summarized as follows:
			Three Months Ended March 31, 2013
										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, 2013			$	17,992			$	221,094			$	5,253	$	4,300			$	114,311			$	(2,175)			$	(11,156)
	Total net gains/(losses) included in:
		Net income		921				175				-		-				833				(186)				172
		Other comprehensive income		-				-				(37)		-				-				-				-
	Purchases			-				18,467				-		-				-				-				-
	Issuances			-				-				-		-				-				-				-
	Sales			-				-				-		-				-				-				-
	Settlements			(2,454)				(4,228)				(440)		-				(6,042)				311				-
	Net transfers into/(out of) Level 3			-				(2,824)	(c)			-		-				-				-				-
Balance on March 31, 2013			$	16,459			$	232,684			$	4,776	$	4,300			$	109,102			$	(2,050)			$	(10,984)
Net unrealized gains/(losses) included in net income			$	431	(a)		$	175	(a)		$	-	$	-	(b)		$	925	(a)		$	(186)	(d)		$	172	(a)

			Three Months Ended March 31, 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		1,878				872				-		-				4,471				(742)				(240)
		Other comprehensive income		-				-				(166)		-				-				-				-
	Purchases			-				11,027				-		-				-				-				-
	Issuances			-				-				-		-				-				-				-
	Sales			-				-				-		-				-				-				-
	Settlements			(2,551)				(5,754)				(502)		-				(5,584)				9,602				-
	Net transfers into/(out of) Level 3			-				(2,029)	(c)			-		-				-				-				-
Balance on March 31, 2012			$	17,386			$	214,603			$	6,594	$	12,179			$	142,956			$	(2,960)			$	(15,073)
Net unrealized gains/(losses) included in net income			$	1,406	(a)		$	872	(a)		$	-	$	-	(b)		$	5,213	(a)		$	(742)	(d)		$	(240)	(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
	Carrying value at March 31, 2013								March 31, 2013
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)
Loans held-for-sale - SBAs	$	-	$	8,156	$	-	$	8,156	$	-
Loans held-for-sale - first mortgages		-		-		11,633		11,633		84
Loans, net of unearned income (a)		-		-		125,223		125,223		(206)
Real estate acquired by foreclosure (b)		-		-		32,655		32,655		(1,018)
Other assets (c)		-		-		74,109		74,109		(1,609)
									$	(2,749)

									Three Months Ended
	Carrying value at March 31, 2012								March 31, 2012
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)
Loans held-for-sale - SBAs	$	-	$	73,255	$	-	$	73,255	$	4
Loans held-for-sale - first mortgages		-		-		11,206		11,206		768
Loans, net of unearned income (a)		-		-		120,938		120,938		(11,387)
Real estate acquired by foreclosure (b)		-		-		59,132		59,132		(5,225)
Other assets (c)		-		-		86,794		86,794		(1,986)
									$	(17,826)

• Represents carrying value of loans for which adjustments are required to be 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 March 31, 2013 and 2012:
(Dollars in Thousands)
	Fair Value at
Level 3 Class	March 31, 2013		Valuation Techniques	Unobservable Input	Values Utilized
Trading securities - mortgage	$	16,454	Discounted cash flow	(a)	(a)
Loans held-for-sale - mortgages		244,317	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		4,300	Industry comparables	Adjustment for minority interest and small business status	40% - 50% discount
			Discounted cash flow	Discount rate	25% - 30%
				Earnings capitalization rate	20% - 25%
Mortgage servicing rights		109,102	Discounted cash flow	(a)	(a)
Other short-term borrowings		10,984	Discounted cash flow	(b)	(b)
Derivative liabilities, other		2,050	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.0 billion
				Probability of resolution scenarios	10%-60%
				Time until resolution	6 - 18 months
Loans, net of unearned income (c)		125,223	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% 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)		32,655	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (e)		74,109	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 Principal-only and 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 required to be 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.

(Dollars in Thousands)
	Fair Value at
Level 3 Class	March 31, 2012		Valuation Techniques	Unobservable Input	Values Utilized
Interest only trading securities	$	17,381	Discounted cash flow	(a)	(a)
Loans held-for-sale - mortgages		225,809	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		12,179	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		142,956	Discounted cash flow	(a)	(a)
Other short-term borrowings		15,073	Discounted cash flow	(b)	(b)
Derivative liabilities, other		2,960	Discounted cash flow	Visa covered litigation resolution amount	$4.3 billion - $5.1 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	3 - 12 months
Loans, net of unearned income (c)		120,938	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 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)		59,132	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (e)		86,794	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 forInterest-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 required to be 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 tables reflect 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.
		March 31, 2013
(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	$	232,684	$	367,952		$	(135,268)
	Nonaccrual loans		61,868		130,874			(69,006)
	Loans 90 days or more past due and still accruing		8,179		18,370			(10,191)
		March 31, 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	$	223,158	$	310,837		$	(87,679)
	Nonaccrual loans		44,313		96,820			(52,507)
	Loans 90 days or more past due and still accruing		8,702		19,062			(10,360)

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
			March 31
(Dollars in thousands)			2013		2012
Changes in fair value included in net income:
	Mortgage banking noninterest income
		Loans held-for-sale	$	175	$	872
		Other short-term borrowings		172		(240)

Summary Of Book Value And Estimated Fair Value Of Financial Instruments

The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as well as unfunded commitments as of March 31, 2013 and 2012.

				March 31, 2013
				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		$	8,005,081	$	-	$	-	$	7,854,761	$	7,854,761
		Commercial real estate
			Income CRE		1,050,837		-		-		1,014,785		1,014,785
			Residential CRE		49,903		-		-		50,130		50,130
	Retail:
		Consumer real estate			5,458,763		-		-		4,916,105		4,916,105
		Permanent mortgage			767,835		-		-		644,070		644,070
		Credit card & other			292,034		-		-		293,746		293,746
Total loans, net of unearned income and allowance for loan losses					15,624,453		-		-		14,773,597		14,773,597
Short-term financial assets
	Total interest-bearing cash				431,182		431,182		-		-		431,182
	Federal funds sold				33,738		-		33,738		-		33,738
	Securities purchased under agreements to resell				732,696		-		732,696		-		732,696
Total short-term financial assets					1,197,616		431,182		766,434		-		1,197,616
Trading securities (a)					1,397,746		-		1,381,287		16,459		1,397,746
Loans held-for-sale (a)					390,874		-		8,156		382,718		390,874
Securities available-for-sale (a)(b)					3,190,219		14,996		2,968,653		206,570		3,190,219
Derivative assets (a)					274,332		15,793		258,539		-		274,332
Other assets
	Tax credit investments				74,109		-		-		74,109		74,109
	Deferred compensation assets				22,785		22,785		-		-		22,785
Total other assets					96,894		22,785		-		74,109		96,894
Nonearning assets
	Cash & due from banks				275,262		275,262		-		-		275,262
	Capital markets receivables				533,306		-		533,306		-		533,306
	Accrued interest receivable				82,711		-		82,711		-		82,711
Total nonearning assets					891,279		275,262		616,017		-		891,279
Total assets				$	23,063,413	$	760,018	$	5,999,086	$	15,453,453	$	22,212,557
Liabilities:
Deposits:
	Defined maturity			$	1,511,333	$	-	$	1,543,436	$	-	$	1,543,436
	Undefined maturity				14,693,134		-		14,693,134		-		14,693,134
Total deposits					16,204,467		-		16,236,570		-		16,236,570
Trading liabilities (a)					781,306		-		781,306		-		781,306
Short-term financial liabilities
	Federal funds purchased				1,361,670		-		1,361,670		-		1,361,670
	Securities sold under agreements to repurchase				488,010		-		488,010		-		488,010
	Total other borrowings				186,898		-		175,914		10,984		186,898
Total short-term financial liabilities					2,036,578		-		2,025,594		10,984		2,036,578
Term borrowings
	Real estate investment trust-preferred				45,777		-		-		47,000		47,000
	Term borrowings - tax credit investments				18,000		-		-		18,747		18,747
	Borrowings secured by residential real estate				375,261		-		-		221,809		221,809
	Other long term borrowings				1,758,826		-		1,731,763		-		1,731,763
Total term borrowings					2,197,864		-		1,731,763		287,556		2,019,319
Derivative liabilities (a)					199,999		16,580		181,369		2,050		199,999
Other noninterest-bearing liabilities
	Capital markets payables				461,333		-		461,333		-		461,333
	Accrued interest payable				43,437		-		43,437		-		43,437
Total other noninterest-bearing liabilities					504,770		-		504,770		-		504,770
Total liabilities				$	21,924,984	$	16,580	$	21,461,372	$	300,590	$	21,778,542

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

				March 31, 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		$	7,585,576	$	-	$	-	$	7,366,581	$	7,366,581
		Commercial real estate
			Income CRE		1,214,129		-		-		1,136,404		1,136,404
			Residential CRE		86,747		-		-		77,419		77,419
	Retail:
		Consumer real estate			5,717,175		-		-		5,253,260		5,253,260
		Permanent mortgage			756,127		-		-		655,696		655,696
		Credit card & other			265,560		-		-		265,779		265,779
Total loans, net of unearned income and allowance for loan losses					15,625,314		-		-		14,755,139		14,755,139
Short-term financial assets
	Total interest-bearing cash				761,098		761,098		-		-		761,098
	Total federal funds sold				18,732		-		18,732		-		18,732
	Securities purchased under agreements to resell				595,973		-		595,973		-		595,973
Total short-term financial assets					1,375,803		761,098		614,705		-		1,375,803
Trading securities (a)					1,238,041		-		1,220,655		17,386		1,238,041
Loans held-for-sale (a)					431,905		-		81,810		350,095		431,905
Securities available-for-sale (a)(b)					3,296,603		13,794		3,065,925		216,884		3,296,603
Derivative assets (a)					340,337		32,391		307,946		-		340,337
Other assets
	Tax credit investments				86,794		-		-		86,794		86,794
	Deferred compensation assets				24,102		24,102		-		-		24,102
Total other assets					110,896		24,102		-		86,794		110,896
Nonearning assets
	Cash & due from banks				349,604		349,604		-		-		349,604
	Capital markets receivables				522,001		-		522,001		-		522,001
	Accrued interest receivable				86,630		-		86,630		-		86,630
Total nonearning assets					958,235		349,604		608,631		-		958,235
Total assets				$	23,377,134	$	1,180,989	$	5,899,672	$	15,426,298	$	22,506,959
Liabilities:
Deposits:
	Defined maturity			$	1,849,839	$	-	$	1,885,016	$	-	$	1,885,016
	Undefined maturity				15,085,331		-		15,085,331		-		15,085,331
Total deposits					16,935,170		-		16,970,347		-		16,970,347
Trading liabilities (a)					567,571		-		567,571		-		567,571
Short-term financial liabilities
	Total federal funds purchased				1,487,469		-		1,487,469		-		1,487,469
	Securities sold under agreements to repurchase				313,765		-		313,765		-		313,765
	Total other borrowings				181,570		-		166,497		15,073		181,570
Total short-term financial liabilities					1,982,804		-		1,967,731		15,073		1,982,804
Term borrowings
	Real estate investment trust-preferred				45,710		-		-		39,950		39,950
	Term borrowings - new market tax credit investment				15,301		-		-		15,837		15,837
	Borrowings secured by residential real estate				489,145		-		-		391,316		391,316
	Other long term borrowings				1,790,550		-		1,680,528		-		1,680,528
Total term borrowings					2,340,706		-		1,680,528		447,103		2,127,631
Derivative liabilities (a)					234,188		10,538		220,690		2,960		234,188
Other noninterest-bearing liabilities
	Capital markets payables				361,018		-		361,018		-		361,018
	Accrued interest payable				46,211		-		46,211		-		46,211
Total other noninterest-bearing liabilities					407,229		-		407,229		-		407,229
Total liabilities				$	22,467,668	$	10,538	$	21,814,096	$	465,136	$	22,289,770
Certain previously reported amounts have been reclassified to agree with current presentations.

• 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 $66.1 million.

	Contractual Amount				Fair Value
	March 31, 2013		March 31, 2012		March 31, 2013		March 31, 2012
Unfunded Commitments:
Loan commitments	$	8,486,803	$	7,716,583	$	1,634	$	1,555
Standby and other commitments		318,884		375,733		5,355		5,467