Allowance

3 Months Ended

Mar. 31, 2015

Loans And Leases Receivable Allowance [Abstract]

Note 5 - Allowance for Loan Losses

The ALLL includes the following components: reserves for commercial loans evaluated based on pools of credit graded loans and reserves for pools of smaller-balance homogeneous retail loans, both determined in accordance with ASC 450-20-50. The reserve factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics and are subject to qualitative adjustments by management to reflect current events, trends, and conditions (including economic considerations and trends). The pace of the economic recovery, performance of the housing market, unemployment levels, labor participation rate, the regulatory environment, regulatory guidance, and both positive and negative portfolio segment-specific trends, are examples of additional factors considered by management in determining the ALLL. Additionally, management considers the inherent uncertainty of quantitative models that are driven by historical loss data. Management evaluates the periods of historical losses that are the basis for the loss rates used in the quantitative models and selects historical loss periods that are believed to be the most reflective of losses inherent in the loan portfolio as of the balance sheet date. Management also periodically reviews analysis of the loss emergence period which is the amount of time it takes for a loss to be confirmed (initial charge-off) after a loss event has occurred. FHN performs extensive studies as it relates to the historical loss periods used in the model and the loss emergence period and model assumptions are adjusted accordingly. The ALLL also includes reserves determined in accordance with ASC 310-10-35 for loans determined by management to be individually impaired and an allowance associated with PCI loans. See Note 1 – Summary of Significant Accounting Policies and Note – 5 Allowance for Loan Losses in the Notes to Consolidated Financial Statements on Form 10-K for the year ended December 31, 2014, for additional information about the policies and methodologies used in the aforementioned components of the ALLL.

The following table provides a rollforward of the allowance for loan losses by portfolio segment for the three months ended March 31, 2015 and 2014:
				Commercial		Consumer		Permanent		Credit Card
(Dollars in thousands)		C&I		Real Estate		Real Estate		Mortgage		and Other		Total
Balance as of January 1, 2014		$	86,446	$	10,603	$	126,785	$	22,491	$	7,484	$	253,809
Charge-offs			(5,807)		(627)		(12,264)		(2,218)		(3,776)		(24,692)
Recoveries			1,602		279		4,974		578		696		8,129
Provision			(9,509)		5,268		3,914		1,670		8,657		10,000
Balance as of March 31, 2014			72,732		15,523		123,409		22,521		13,061		247,246
Allowance - individually evaluated for impairment			5,187		1,495		43,653		19,211		236		69,782
Allowance - collectively evaluated for impairment			67,477		12,207		79,746		3,310		12,825		175,565
Allowance - purchased credit impaired loans			68		1,821		10		-		-		1,899
Loans, net of unearned as of March 31, 2014:
	Individually evaluated for impairment		54,968		26,701		173,577		121,843		772		377,861
	Collectively evaluated for impairment		7,691,266		1,086,829		5,083,734		500,399		333,020		14,695,248
	Purchased credit impaired loans		6,761		38,888		703		-		-		46,352
Total loans, net of unearned		$	7,752,995	$	1,152,418	$	5,258,014	$	622,242	$	333,792	$	15,119,461
Balance as of January 1, 2015		$	67,011	$	18,574	$	113,011	$	19,122	$	14,730	$	232,448
Charge-offs			(3,555)		(787)		(8,537)		(1,184)		(3,936)		(17,999)
Recoveries			1,953		691		4,724		618		893		8,879
Provision			2,243		(813)		47		1,630		1,893		5,000
Balance as of March 31, 2015			67,652		17,665		109,245		20,186		13,580		228,328
Allowance - individually evaluated for impairment			6,019		611		41,737		17,766		228		66,361
Allowance - collectively evaluated for impairment			61,440		14,642		67,018		2,420		13,352		158,872
Allowance - purchased credit impaired loans			193		2,412		490		-		-		3,095
Loans, net of unearned as of March 31, 2015:
	Individually evaluated for impairment		52,697		12,528		171,611		110,838		484		348,158
	Collectively evaluated for impairment		9,580,800		1,282,944		4,748,806		400,870		337,853		16,351,273
	Purchased credit impaired loans		4,858		25,425		2,400		-		9		32,692
Total loans, net of unearned		$	9,638,355	$	1,320,897	$	4,922,817	$	511,708	$	338,346	$	16,732,123