Business Segment Information

3 Months Ended

Mar. 31, 2015

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 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 ofunallocated 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 are significantly lower), 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 the three months ended March 31:

		Three Months Ended
		March 31
(Dollars in thousands)	2015		2014
Consolidated
Net interest income	$	156,866	$	152,359
Provision for loan losses		5,000		10,000
Noninterest income		129,689		145,730
Noninterest expense		376,221		218,044
Income/(loss) before income taxes		(94,666)		70,045
Provision/(benefit) for income taxes		(22,261)		20,066
Net income/(loss)	$	(72,405)	$	49,979
Average assets	$	25,644,604	$	23,910,853
Certain previously reported amounts have been revised to reflect the retroactive effect of the adoption of ASU 2014-01,"Equity Method and Joint Venture: Accounting for Investments in Qualified Affordable Housing Projects." See Note 1 - Financial Information for additional information.

	Three Months Ended
	March 31
(Dollars in thousands)	2015		2014
Regional Banking
Net interest income	$	154,409	$	142,026
Provision/(provision credit) for loan losses		4,915		12,990
Noninterest income		60,204		59,992
Noninterest expense		135,780		132,543
Income/(loss) before income taxes		73,918		56,485
Provision/(benefit) for income taxes		26,381		20,083
Net income/(loss)	$	47,537	$	36,402
Average assets	$	14,228,116	$	12,615,394

Capital Markets
Net interest income	$	4,323	$	3,476
Noninterest income		61,565		56,759
Noninterest expense		54,683		52,598
Income/(loss) before income taxes		11,205		7,637
Provision/(benefit) for income taxes		4,167		2,843
Net income/(loss)	$	7,038	$	4,794
Average assets	$	2,446,267	$	2,038,368

Corporate
Net interest income/(expense)	$	(16,084)	$	(9,923)
Noninterest income		5,385		13,215
Noninterest expense		14,169		17,327
Income/(loss) before income taxes		(24,868)		(14,035)
Provision/(benefit) for income taxes		(11,640)		(10,628)
Net income/(loss)	$	(13,228)	$	(3,407)
Average assets	$	6,414,745	$	5,852,792

Non-Strategic
Net interest income	$	14,218	$	16,780
Provision/(provision credit) for loan losses		85		(2,990)
Noninterest income		2,535		15,764
Noninterest expense		171,589		15,576
Income/(loss) before income taxes		(154,921)		19,958
Provision/(benefit) for income taxes		(41,169)		7,768
Net income/(loss)	$	(113,752)	$	12,190
Average assets	$	2,555,476	$	3,404,299

Certain previously reported amounts have been revised to reflect the retroactive effect of the adoption of ASU 2014-01,"Equity Method and Joint Venture: Accounting for Investments in Qualified Affordable Housing Projects." See Note 1 - Financial Information for additional information.