Business Segment Information

3 Months Ended

Mar. 31, 2014

Business Segment Information [Abstract]

Business Segment Information

Note 13 – 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 other selected 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 (in periods subsequent to first quarter 2014 these amounts will be significantly reduced), 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 and equity 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 an 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 months endedMarch 31:

		Three Months Ended
		March 31
(Dollars in thousands)	2014		2013
Consolidated
Net interest income	$	152,359	$	161,382
Provision for loan losses		10,000		15,000
Noninterest income		145,730		156,427
Noninterest expense		220,214		240,540
Income/(loss) before income taxes		67,875		62,269
Provision/(benefit) for income taxes		18,645		17,730
Income/(loss) from continuing operations		49,230		44,539
Income/(loss) from discontinued operations, net of tax		-		430
Net income/(loss)	$	49,230	$	44,969
Average assets	$	23,916,069	$	25,044,547
Certain previously reported amounts have been reclassified to agree with current presentation.

	Three Months Ended
	March 31
(Dollars in thousands)	2014		2013
Regional Banking
Net interest income	$	142,010	$	147,120
Provision/(provision credit) for loan losses		12,990		(2,485)
Noninterest income		59,992		59,144
Noninterest expense		133,050		131,077
Income/(loss) before income taxes		55,962		77,672
Provision/(benefit) for income taxes		19,880		28,221
Net income/(loss)	$	36,082	$	49,451
Average assets	$	12,617,386	$	12,957,581

Capital Markets
Net interest income	$	3,478	$	3,968
Noninterest income		56,758		76,612
Noninterest expense		52,594		61,533
Income/(loss) before income taxes		7,642		19,047
Provision/(benefit) for income taxes		2,845		7,222
Net income/(loss)	$	4,797	$	11,825
Average assets	$	2,037,850	$	2,457,779

Corporate
Net interest income/(expense)	$	(9,113)	$	(10,059)
Noninterest income		13,215		7,855
Noninterest expense		19,578		17,613
Income/(loss) before income taxes		(15,476)		(19,817)
Provision/(benefit) for income taxes		(11,766)		(12,083)
Net income/(loss)	$	(3,710)	$	(7,734)
Average assets	$	5,856,661	$	5,254,472

Non-Strategic
Net interest income	$	15,984	$	20,353
Provision/(provision credit) for loan losses		(2,990)		17,485
Noninterest income		15,765		12,816
Noninterest expense		14,992		30,317
Income/(loss) before income taxes		19,747		(14,633)
Provision/(benefit) for income taxes		7,686		(5,630)
Income/(loss) from continuing operations		12,061		(9,003)
Income/(loss) from discontinued operations, net of tax		-		430
Net income/(loss)	$	12,061	$	(8,573)
Average assets	$	3,404,172	$	4,374,715

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