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Derivatives (Tables)

3 Months Ended

Jun. 30, 2014

The following tables summarize FHN’s derivatives associated with capital markets trading activities as of June 30, 2014 and 2013:

	June 30, 2014
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,760,032		$	80,710		$	4,948
Offsetting Upstream Interest Rate Contracts		1,760,032			4,948			80,710
Option Contracts Purchased		17,500			29			-
Option Contracts Written		5,000			-			4
Forwards and Futures Purchased		2,378,633			4,571			330
Forwards and Futures Sold		2,487,732			548			4,980

	June 30, 2013
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,706,209		$	88,851		$	8,925
Offsetting Upstream Interest Rate Contracts		1,706,209			8,925			88,851
Option Contracts Purchased		40,000			36			-
Option Contracts Written		2,500			-			6
Forwards and Futures Purchased		3,726,645			21,109			6,573
Forwards and Futures Sold		4,159,652			5,201			27,995

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of and for the three and six months ended June 30, 2014 and 2013:
										Gains/(Losses)
										Three Months Ended				Six Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			June 30, 2014				June 30, 2014
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	759,266		$	28,143	$	997			$	2,714			$	2,069
	Offsetting Upstream Interest Rate Contracts (a)		775,204			997		28,643				(2,714)				(2,069)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,254,000		$	42,121	$	12,095			$	(3,628)			$	(3,239)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,254,000	(c)		$	3,628	(d)		$	3,239	(d)

										Gains/(Losses)
										Three Months Ended				Six Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			June 30, 2013				June 30, 2013
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	890,611		$	36,742	$	3,027			$	(15,896)			$	(21,209)
	Offsetting Upstream Interest Rate Contracts (a)		890,611			3,027		37,242				16,196				21,909
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,254,000		$	71,606	$	18,722			$	(24,774)			$	(42,348)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,254,000	(c)		$	24,774	(d)		$	42,348	(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.

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of and for the three and six months ended June 30, 2014 and 2013:
												Gains/(Losses)
												Three Months Ended				Six Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			June 30, 2014				June 30, 2014
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	900		$	42			$	105
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A		$	(41)	(c)		$	(104)	(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.

The following table summarizes FHN's derivatives associated with legacy mortgage servicing activities as of and for the three and six months ended June 30, 2013:
										Gains/(Losses)
										Three Months Ended			Six Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			June 30, 2013			June 30, 2013
Retained Interests Hedging
Hedging Instruments:
	Forwards and Futures	$	35,000		$	92		$	459		$	(2,795)		$	(3,206)
	Interest Rate Swaps and Swaptions		407,000			168			3,376			(6,314)			(5,580)
Hedged Items:
	Mortgage Servicing Rights		N/A		$	111,207			N/A		$	9,153		$	10,330
	Other Retained Interests		N/A			15,872			N/A			1,313			1,794

The following table provides a detail of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of June 30:

								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:
2014 (b)	$	156,919	$	-	$	156,919	$	(26,475)	$	(129,064)	$	1,380
2013 (b)		209,411		-		209,411		(37,505)		(170,712)		1,194

Included in Derivative Assets on the Consolidated Condensed Statements of Condition. As of June 30, 2014 and 2013, $5.1 million and $26.4 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.
2014 is comprised entirely of interest rate derivative contracts. 2013 includes $209.3 million of interest rate derivative contracts and $.1 million of forwards and futures contracts.

The following table provides a detail of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of June 30:

									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:
2014 (b)	$	128,293	$	-		$	128,293	$	(26,475)	$	(88,935)	$	12,883
2013 (b)		161,720		-			161,720		(37,505)		(116,510)		7,705

Included in Derivative Liabilities on the Consolidated Condensed Statements of Condition. As of June 30, 2014 and 2013, $10.0 million and $36.8 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.
2014 is comprised entirely of interest rate derivative contracts. 2013 includes $161.3 million of interest rate derivative contracts and $.5 million of forwards and futures contracts.