Business Segment Information

3 Months Ended

Jun. 30, 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 and six months endedJune 30:

		Three Months Ended			Six Months Ended
		June 30			June 30
(Dollars in thousands)	2014		2013		2014		2013
Consolidated
Net interest income	$	156,768	$	160,019	$	309,127	$	321,401
Provision for loan losses		5,000		15,000		15,000		30,000
Noninterest income		126,901		142,632		272,631		299,059
Noninterest expense		165,332		227,408		385,546		467,948
Income/(loss) before income taxes		113,337		60,243		181,212		122,512
Provision/(benefit) for income taxes		32,157		15,008		50,802		32,738
Income/(loss) from continuing operations		81,180		45,235		130,410		89,774
Income/(loss) from discontinued operations, net of tax		-		1		-		431
Net income/(loss)	$	81,180	$	45,236	$	130,410	$	90,205
Average assets	$	23,651,952	$	24,582,818	$	23,783,281	$	24,812,407
Certain previously reported amounts have been reclassified to agree with current presentation.

	Three Months Ended				Six Months Ended
	June 30				June 30
(Dollars in thousands)	2014		2013		2014		2013
Regional Banking
Net interest income	$	148,654	$	148,220	$	290,664	$	295,340
Provision/(provision credit) for loan losses		8,425		13,201		21,415		10,716
Noninterest income		66,226		61,885		126,218		121,029
Noninterest expense		133,564		129,584		266,614		260,661
Income/(loss) before income taxes		72,891		67,320		128,853		144,992
Provision/(benefit) for income taxes		25,843		24,146		45,723		52,367
Net income/(loss)	$	47,048	$	43,174	$	83,130	$	92,625
Average assets	$	13,055,204	$	12,939,928	$	12,837,505	$	12,948,706

Capital Markets
Net interest income	$	2,590	$	4,097	$	6,068	$	8,065
Noninterest income		47,564		68,199		104,322		144,811
Noninterest expense (a)		111		59,822		52,705		121,355
Income/(loss) before income taxes		50,043		12,474		57,685		31,521
Provision/(benefit) for income taxes		19,146		4,651		21,991		11,873
Net income/(loss)	$	30,897	$	7,823	$	35,694	$	19,648
Average assets	$	2,074,028	$	2,407,287	$	2,056,039	$	2,432,394

Corporate
Net interest income/(expense)	$	(10,522)	$	(11,182)	$	(19,635)	$	(21,241)
Noninterest income		5,214		3,811		18,429		11,666
Noninterest expense		15,798		17,141		35,376		34,754
Income/(loss) before income taxes		(21,106)		(24,512)		(36,582)		(44,329)
Provision/(benefit) for income taxes		(17,270)		(15,698)		(29,036)		(27,781)
Net income/(loss)	$	(3,836)	$	(8,814)	$	(7,546)	$	(16,548)
Average assets	$	5,344,855	$	5,068,970	$	5,599,344	$	5,161,208

Non-Strategic
Net interest income	$	16,046	$	18,884	$	32,030	$	39,237
Provision/(provision credit) for loan losses		(3,425)		1,799		(6,415)		19,284
Noninterest income		7,897		8,737		23,662		21,553
Noninterest expense		15,859		20,861		30,851		51,178
Income/(loss) before income taxes		11,509		4,961		31,256		(9,672)
Provision/(benefit) for income taxes		4,438		1,909		12,124		(3,721)
Income/(loss) from continuing operations		7,071		3,052		19,132		(5,951)
Income/(loss) from discontinued operations, net of tax		-		1		-		431
Net income/(loss)	$	7,071	$	3,053	$	19,132	$	(5,520)
Average assets	$	3,177,865	$	4,166,633	$	3,290,393	$	4,270,099

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

(a)Three and six months ended June 30, 2014, includes $47.1 million related to agreements with insurance companies for the recovery of litigation and legal expenses FHN incurred in connection with the Sentinel litigation matter which was settled in 2011.