Business Segment Information

6 Months Ended

Jun. 30, 2013

Business Segment Information [Abstract]

Business Segment Information

Note 12 – 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 surrounding 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 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, 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 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 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 thethree and six months endedJune 30:

	Three Months Ended				Six Months Ended
	June 30				June 30
(Dollars in thousands)	2013		2012		2013		2012
Consolidated
Net interest income	$	160,019	$	172,675	$	321,401	$	344,604
Provision for loan losses		15,000		15,000		30,000		23,000
Noninterest income		142,632		158,907		299,059		361,348
Noninterest expense		227,408		527,177		467,948		849,171
Income/(loss) before income taxes		60,243		(210,595)		122,512		(166,219)
Provision/(benefit) for income taxes		15,008		(88,178)		32,738		(77,608)
Income/(loss) from continuing operations		45,235		(122,417)		89,774		(88,611)
Income/(loss) from discontinued operations, net of tax		1		487		431		52
Net income/(loss)	$	45,236	$	(121,930)	$	90,205	$	(88,559)
Average assets	$	24,598,772	$	25,014,635	$	24,837,175	$	25,107,504

	Three Months Ended				Six Months Ended
	June 30				June 30
(Dollars in thousands)	2013		2012		2013		2012
Regional Banking
Net interest income	$	147,324	$	148,599	$	293,392	$	296,112
Provision/(provision credit) for loan losses		13,201		4,828		10,716		(2,598)
Noninterest income		61,900		65,037		121,044		125,089
Noninterest expense		128,948		143,322		259,285		283,904
Income/(loss) before income taxes		67,075		65,486		144,435		139,895
Provision/(benefit) for income taxes		24,051		23,630		52,151		50,782
Net income/(loss)	$	43,024	$	41,856	$	92,284	$	89,113
Average assets	$	12,939,370	$	12,356,541	$	12,947,925	$	12,294,096

Capital Markets
Net interest income	$	4,031	$	5,608	$	7,931	$	11,288
Noninterest income		68,199		74,968		144,811		181,743
Noninterest expense		59,926		60,936		121,595		141,242
Income/(loss) before income taxes		12,304		19,640		31,147		51,789
Provision/(benefit) for income taxes		4,586		7,403		11,729		19,641
Net income/(loss)	$	7,718	$	12,237	$	19,418	$	32,148
Average assets	$	2,423,760	$	2,385,317	$	2,457,759	$	2,368,458

Corporate
Net interest income/(expense)	$	(9,963)	$	(5,538)	$	(18,584)	$	(11,724)
Noninterest income		3,811		3,825		11,666		13,087
Noninterest expense		17,070		19,143		34,655		41,520
Income/(loss) before income taxes		(23,222)		(20,856)		(41,573)		(40,157)
Provision/(benefit) for income taxes		(15,201)		(13,388)		(26,719)		(25,700)
Net income/(loss)	$	(8,021)	$	(7,468)	$	(14,854)	$	(14,457)
Average assets	$	5,068,783	$	5,293,008	$	5,161,043	$	5,360,180

Non-Strategic
Net interest income	$	18,627	$	24,006	$	38,662	$	48,928
Provision for loan losses		1,799		10,172		19,284		25,598
Noninterest income		8,722		15,077		21,538		41,429
Noninterest expense		21,464		303,776		52,413		382,505
Income/(loss) before income taxes		4,086		(274,865)		(11,497)		(317,746)
Provision/(benefit) for income taxes		1,572		(105,823)		(4,423)		(122,331)
Income/(loss) from continuing operations		2,514		(169,042)		(7,074)		(195,415)
Income/(loss) from discontinued operations, net of tax		1		487		431		52
Net income/(loss)	$	2,515	$	(168,555)	$	(6,643)	$	(195,363)
Average assets	$	4,166,859	$	4,979,769	$	4,270,448	$	5,084,770

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