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Fair Value Of Assets And Liabilities (Tables)
 3 Months Ended
Mar. 31, 2015
Fair Value Of Assets And Liabilities [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis
Recurring Fair Value Measurements
The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of March 31, 2015:
March 31, 2015
(Dollars in thousands)Level 1  Level 2  Level 3  Total
Trading securities - capital markets:      
U.S. treasuries$-  $108,199  $-  $108,199  
Government agency issued MBS-  547,569  -  547,569  
Government agency issued CMO-  312,086  -  312,086  
Other U.S. government agencies-  161,317  -  161,317  
States and municipalities-  57,181  -  57,181  
Corporate and other debt-  339,560  5  339,565  
Equity, mutual funds, and other-  1,225  -  1,225  
Total trading securities - capital markets -  1,527,137  5  1,527,142  
Trading securities - mortgage banking:      
Principal only-  -  4,013  4,013  
Interest only-  -  83  83  
Subordinated bonds--1,2251,225
Total trading securities - mortgage banking-  -  5,321  5,321  
Loans held-for-sale-  -  26,700  26,700  
Securities available-for-sale:      
U.S. treasuries-  100  -  100  
Government agency issued MBS-  762,850  -  762,850  
Government agency issued CMO-  2,716,147  -  2,716,147  
Other U.S. government agencies-  -  1,691  1,691  
States and municipalities-  8,405  1,500  9,905  
Equity, mutual funds, and other25,870  -  -  25,870  
Total securities available-for-sale25,870  3,487,502  3,191  3,516,563  
Other assets:      
Mortgage servicing rights--2,3422,342
Deferred compensation assets26,440  -  -  26,440  
Derivatives, forwards and futures6,910  -  -  6,910  
Derivatives, interest rate contracts -  140,976  -  140,976  
Derivatives, other-267-267
Total other assets33,350  141,243  2,342  176,935  
Total assets$59,220  $5,155,882  $37,559  $5,252,661  
Trading liabilities - capital markets:      
U.S. treasuries$-  $514,886  $-  $514,886  
Government agency issued CMO-1-1
Other U.S. government agencies-  17,863  -  17,863  
States and municipalities-1,643-1,643
Corporate and other debt-  276,748  -  276,748  
Equity, mutual funds, and other-2,000-2,000
Total trading liabilities - capital markets-  813,141  -  813,141  
Other liabilities:  
Derivatives, forwards and futures7,828  -  -  7,828  
Derivatives, interest rate contracts -  120,440  -  120,440  
Derivatives, other-  -  5,0055,005
Total other liabilities7,828120,4405,005133,273
Total liabilities$7,828  $933,581  $5,005  $946,414  

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of March 31, 2014:
  March 31, 2014
(Dollars in thousands)Level 1  Level 2  Level 3  Total
Trading securities - capital markets:      
U.S. treasuries$-  $145,136  $-  $145,136
Government agency issued MBS-  412,994  -  412,994
Government agency issued CMO-  124,304  -  124,304
Other U.S. government agencies-  86,672  -  86,672
States and municipalities-  29,787  -  29,787
Corporate and other debt-  382,341  5  382,346
Equity, mutual funds, and other-  6,922  -6,922
Total trading securities - capital markets -  1,188,156  5  1,188,161
Trading securities - mortgage banking:      
Principal only-  -  4,764  4,764
Interest only-  -  339  339
Subordinated bonds--1,4851,485
Total trading securities - mortgage banking-  -  6,588  6,588
Loans held-for-sale-  -  229,219  229,219
Securities available-for-sale:      
U.S. treasuries-  39,990  -  39,990
Government agency issued MBS-  792,562  -  792,562
Government agency issued CMO-  2,531,770  -  2,531,770
Other U.S. government agencies-  -  2,182  2,182
States and municipalities-  13,655  1,500  15,155
Venture capital-  -  4,300  4,300
Equity, mutual funds, and other26,482  -  -  26,482
Total securities available-for-sale26,482  3,377,977  7,982  3,412,441
Other assets:      
Mortgage servicing rights--4,6874,687
Deferred compensation assets23,335  -  -  23,335
Derivatives, forwards and futures4,015  -  -  4,015
Derivatives, interest rate contracts-  162,450  -  162,450
Total other assets27,350  162,450  4,687  194,487
Total assets$53,832  $4,728,583  $248,481  $5,030,896
Trading liabilities - capital markets:      
U.S. treasuries$-  $420,574  $-  $420,574
Government agency issued MBS-  1,083  -  1,083
Government agency issued CMO-  503  -  503
Other U.S. government agencies-  9,739  -  9,739
States and municipalities-1,436-1,436
Corporate and other debt-233,287-233,287
Equity, mutual funds, and other-635-635
Total trading liabilities - capital markets-  667,257  -  667,257
Other liabilities:
Derivatives, forwards and futures2,738  -  -  2,738
Derivatives, interest rate contracts-  130,180  -  130,180
Derivatives, other-  -  4,945  4,945
Total other liabilities2,738  130,180  4,945  137,863
Total liabilities$2,738  $797,437  $4,945  $805,120
Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value
Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the three months ended March 31, 2015 and 2014, on a recurring basis are summarized as follows:
Three Months Ended March 31, 2015
SecuritiesMortgage
TradingLoans held-available-servicingNet derivative
(Dollars in thousands)securitiesfor-salefor-salerights, netliabilities
Balance on January 1, 2015$5,643  $27,910  $3,307$2,517$(5,240)
Total net gains/(losses) included in:
Net income170  1,142  --(57)
Other comprehensive income /(loss)-  -  (14)--  
Purchases-  854  ---  
Issuances-  -  ---  
Sales-  -  ---  
Settlements(487)(3,922)(102)(175)292  
Net transfers into/(out of) Level 3-  716 (b)  ---  
Balance on March 31, 2015$5,326  $26,700  $3,191$2,342$(5,005)
Net unrealized gains/(losses) included in net income$171 (a)  $1,142 (a)  $-$-$(57) (c)  

Three Months Ended March 31, 2014
AFS SecuritiesMortgage
TradingLoans held-Investment VentureservicingNet derivative
(Dollars in thousands)securitiesfor-saleportfolio Capitalrights, netliabilities
Balance on January 1, 2014$7,200  $230,456  $3,826$4,300$72,793  $(2,915)
Total net gains/(losses) included in:
Net income(85)  1,187--1,133  (2,341)
Other comprehensive income /(loss)-  -  (17)--  -
Purchases1,559  4,106  ---  -
Issuances-  -  ---  -
Sales(1,715)  -  --(68,519)  -
Settlements(366)(4,193)(127)-(720)311
Net transfers into/(out of) Level 3 -  (2,337) (b)---  -
Balance on March 31, 2014$6,593  $229,219  $3,682$4,300$4,687  $(4,945)
Net unrealized gains/(losses) included in net income$40 (a)$1,187 (a)$-$-$73 (a)$(2,341) (c)

  • Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
  • Transfers out of recurring loans held-for-sale level 3 balances reflect movements out of loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
  • Included in Other expense.
Nonrecurring Fair Value Measurements

Nonrecurring Fair Value Measurements

From time to time, FHN may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of LOCOM accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheet at March 31, 2015 and 2014, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment, the related carrying value, and the fair value adjustments recorded during the respective periods.

    Three Months Ended
Carrying value at March 31, 2015March 31, 2015
(Dollars in thousands)  Level 1  Level 2  Level 3  Total   Net gains/(losses)
Loans held-for-sale - SBAs  $-  $3,211  $-  $3,211  $3
Loans held-for-sale - first mortgages  -  -  858  858  38
Loans, net of unearned income (a)-  -  40,386  40,386  (1,541)
Real estate acquired by foreclosure (b)-  -  29,681  29,681  (376)
Other assets (c)-  -  28,265  28,265  (395)
          $(2,271)

Three Months Ended
Carrying value at March 31, 2014March 31, 2014
(Dollars in thousands)  Level 1  Level 2  Level 3  Total   Net gains/(losses)
Loans held-for-sale - SBAs  $-  $3,494  $-  $3,494  $42
Loans held-for-sale - first mortgages  -  -  9,191  9,191  (17)
Loans, net of unearned income (a)-  -  57,035  57,035  (488)
Real estate acquired by foreclosure (b)-  -  42,970  42,970  (858)
Other assets (c)-  -  30,445  30,445  (325)
          $(1,646)
Certain previously reported amounts have been revised to reflect the retroactive effect of the adoption of ASU 2014-01, "Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects." See Note 1 - Financial Information for additional information.

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral. Write-downs on these loans are recognized as part of provision.
  • Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.
Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements
Level 3 Measurements
The following tables provide information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of March 31, 2015 and 2014:
(Dollars in Thousands)
Fair Value at
Level 3 ClassMarch 31, 2015Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage (a)$5,321Discounted cash flowPrepayment speeds 42% - 46%
Discount rate6% - 55%
Loans held-for-sale - residential real estate27,558Discounted cash flowPrepayment speeds - First mortgage2% - 22%
Prepayment speeds - HELOC5% - 15%
Foreclosure losses50% - 60%
Loss severity trends - First mortgage10% - 70% of UPB
Loss severity trends - HELOC45% - 100% of UPB
Draw rate - HELOC5% - 12%
Derivative liabilities, other5,005Discounted cash flowVisa covered litigation resolution amount$4.5 billion - $5.6 billion
Probability of resolution scenarios10% - 25%
Time until resolution6 - 48 months
Loans, net of unearned income (b)40,386Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 10% of appraisal
Other collateral valuationsBorrowing base certificates adjustment20% - 50% of gross value
Financial Statements/Auction values adjustment0% - 25% of reported value
Real estate acquired by foreclosure (c)29,681Appraisals from comparable propertiesAdjustment for value changes since appraisal0% - 10% of appraisal
Other assets (d)28,265Discounted cash flowAdjustments to current sales yields for specific properties0% - 15% adjustment to yield
Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 25% of appraisal

  • The unobservable inputs for principal-only and interest-only trading securities and subordinated bonds are discussed in the Trading securities-mortgage paragraph.
  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision.
  • Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.

(Dollars in Thousands)
Fair Value at
Level 3 ClassMarch 31, 2014Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage (a)$6,588Discounted cash flowPrepayment speeds40% - 46%
Discount rate47% - 49%
Loans held-for-sale - residential real estate238,410Discounted cash flowPrepayment speeds - First mortgage6% - 10%
Prepayment speeds - HELOC3% - 12%
Credit spreads2% - 4%
Delinquency adjustment factor15% - 25% added to credit spread
Loss severity trends - First mortgage50% - 60% of UPB
Loss severity trends - HELOC35% - 100% of UPB
Draw Rate - HELOC2% - 11%
Derivative liabilities, other4,945Discounted cash flowVisa covered litigation resolution amount$4.4 billion - $5.2 billion
Probability of resolution scenarios10% - 30%
Time until resolution12 - 48 months
Loans, net of unearned income (b)57,035Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 10% of appraisal
Other collateral valuationsBorrowing base certificates adjustment20% - 50% of gross value
Financial Statements/Auction Values adjustment0% - 25% of reported value
Real estate acquired by foreclosure (c)42,970Appraisals from comparable propertiesAdjustment for value changes since appraisal0% - 10% of appraisal
Other assets (d)30,445Discounted cash flowAdjustments to current sales yields for specific properties0% - 15% adjustment to yield
Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 25% of appraisal

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

  • The unobservable inputs for principal-only and interest-only trading securities and subordinated bonds are discussed in the Trading securities-mortgage paragraph.
  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision.
  • Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.
Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount
The following tables reflect the differences between the fair value carrying amount of residential real estate loans held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
March 31, 2015
(Dollars in thousands)Fair value carrying amountAggregate unpaid principalFair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:    
Total loans$26,700  $40,762  $(14,062)
Nonaccrual loans6,780  13,023  (6,243)
Loans 90 days or more past due and still accruing1,343  1,686  (343)
March 31, 2014
(Dollars in thousands)Fair value carrying amountAggregate unpaid principalFair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:    
Total loans$229,219  $374,401  $(145,182)
Nonaccrual loans61,842  133,600  (71,758)
Loans 90 days or more past due and still accruing7,260  15,010  (7,750)
Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings
Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:
Three Months Ended
March 31
(Dollars in thousands)20152014
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held-for-sale$1,142$1,187
Summary Of Book Value And Estimated Fair Value Of Financial Instruments

The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as well as unfunded loan commitments and stand by and other commitments as of March 31, 2015 and 2014.

  March 31, 2015
BookFair Value
(Dollars in thousands)  Value  Level 1  Level 2  Level 3  Total
Assets:          
Loans, net of unearned income and allowance for loan losses          
Commercial:          
Commercial, financial and industrial  $9,570,703  $-  $-  $9,523,767  $9,523,767  
Commercial real estate  1,303,232  -  -  1,285,775  1,285,775
Retail:          
Consumer real estate 4,813,572  -  -  4,640,351  4,640,351  
Permanent mortgage 491,522  -  -  458,133  458,133  
Credit card & other  324,766  -  -  326,506  326,506  
Total loans, net of unearned income and allowance for loan losses  16,503,795  -  -  16,234,532  16,234,532  
Short-term financial assets          
Interest-bearing cash  438,633  438,633  -  -  438,633  
Federal funds sold  43,052  -  43,052  -  43,052  
Securities purchased under agreements to resell  831,541  -  831,541  -  831,541  
Total short-term financial assets1,313,226438,633874,593-1,313,226
Trading securities (a)1,532,463  -  1,527,137  5,326  1,532,463  
Loans held-for-sale (a)133,958  -  3,211  130,747  133,958  
Securities available-for-sale (a) (b)3,672,331  25,870  3,487,502  158,959  3,672,331  
Securities held-to-maturity4,299  -  -  5,451  5,451  
Derivative assets (a)148,153  6,910  141,243  -  148,153
  
Other assets  
Tax credit investments  80,331--62,76862,768  
Deferred compensation assets26,44026,440--26,440
Total other assets  106,771  26,440  -  62,768  89,208
Nonearning assets    
Cash & due from banks  282,800  282,800  -  -  282,800  
Capital markets receivables  190,662  -  190,662  -  190,662  
Accrued interest receivable  72,716  -  72,716  -  72,716  
Total nonearning assets  546,178  282,800  263,378  -  546,178
Total assets  $23,961,174  $780,653  $6,297,064  $16,597,783  $23,675,500
          
Liabilities:    
Deposits:    
Defined maturity$1,210,417  $-  $1,216,398  $-  $1,216,398  
Undefined maturity17,428,137-17,428,137-17,428,137
Total deposits18,638,554  -18,644,535-18,644,535  
Trading liabilities (a)813,141  -  813,141  -  813,141
Short-term financial liabilities    
Federal funds purchased703,352-703,352-703,352
Securities sold under agreements to repurchase  309,297  -  309,297  -  309,297  
Other short-term borrowings158,745-158,745-158,745
Total short-term financial liabilities  1,171,394  -  1,171,394  -  1,171,394
Term borrowings    
Real estate investment trust-preferred  45,913  -  -  49,350  49,350  
Term borrowings - new market tax credit investment  18,000  -  -  18,208  18,208  
Borrowings secured by residential real estate60,914--52,56852,568
Other long term borrowings1,448,388-1,426,924-1,426,924
Total term borrowings1,573,215  -  1,426,924  120,126  1,547,050  
Derivative liabilities (a)133,273  7,828  120,440  5,005  133,273
  
Other noninterest-bearing liabilities    
Capital markets payables  91,176  -  91,176  -  91,176  
Accrued interest payable  31,745  -  31,745  -  31,745  
Total other noninterest-bearing liabilities122,921  -  122,921  -122,921
Total liabilities$22,452,498  $7,828  $22,299,355  $125,131$22,432,314

  • Classes are detailed in the recurring and nonrecurring measurement tables.
  • Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $66.0 million.

  March 31, 2014
BookFair Value
(Dollars in thousands)  Value  Level 1  Level 2  Level 3  Total
Assets:          
Loans, net of unearned income and allowance for loan losses          
Commercial:          
Commercial, financial and industrial$7,680,262  $-  $-  $7,595,334  $7,595,334  
Commercial real estate  1,136,895  -  -  1,093,796  1,093,796
Retail:          
Consumer real estate5,134,606  -  -  4,824,384  4,824,384  
Permanent mortgage599,721  -  -  540,843  540,843  
Credit card & other  320,731  -  -  322,690  322,690  
Total loans, net of unearned income and allowance for loan losses14,872,215  -  -  14,377,047  14,377,047  
Short-term financial assets          
Interest-bearing cash  685,540  685,540  -  -  685,540  
Federal funds sold16,555-16,555-16,555
Securities purchased under agreements to resell  605,276  -  605,276  -  605,276  
Total short-term financial assets  1,307,371  685,540  621,831  -  1,307,371  
Trading securities (a)1,194,749  -  1,188,156  6,593  1,194,749  
Loans held-for-sale (a)361,359  -  3,494  357,865  361,359  
Securities available-for-sale (a) (b)3,571,179  26,482  3,377,977  166,720  3,571,179  
Securities held-to-maturity4,274--5,4545,454
Derivative assets (a)166,465  4,015  162,450  -  166,465  
Other assets          
Tax credit investments  85,901  -  -  73,344  73,344  
Deferred compensation assets  23,335  23,335  -  -  23,335  
Total other assets  109,236  23,335  -  73,344  96,679  
Nonearning assets          
Cash & due from banks  450,270  450,270  -  -  450,270  
Capital markets receivables  51,082  -  51,082  -  51,082  
Accrued interest receivable  73,010  -  73,010  -  73,010  
Total nonearning assets  574,362  450,270  124,092  -  574,362  
Total assets$22,161,210  $1,189,642  $5,478,000  $14,987,023  $21,654,665  
          
Liabilities:          
Deposits:          
Defined maturity  $1,436,657  $-  $1,448,362  $-  $1,448,362  
Undefined maturity  15,236,086  -  15,236,086  -  15,236,086  
Total deposits  16,672,743  -  16,684,448  -  16,684,448  
Trading liabilities (a)667,257  -  667,257  -  667,257  
Short-term financial liabilities          
Federal funds purchased1,135,665-1,135,665-1,135,665
Securities sold under agreements to repurchase  411,795  -  411,795  -  411,795  
Other short-term borrowings  204,023  -  204,023  -  204,023  
Total short-term financial liabilities  1,751,483  -  1,751,483  -  1,751,483  
Term borrowings          
Real estate investment trust-preferred  45,845  -  -  49,350  49,350  
Term borrowings - new market tax credit investment  18,000  -  -  17,810  17,810  
Borrowings secured by residential real estate  77,119  -  -  66,554  66,554  
Other long term borrowings  1,366,084  -  1,362,408  -  1,362,408  
Total term borrowings1,507,048-1,362,408133,7141,496,122
Derivative liabilities (a)137,863  2,738  130,180  4,945  137,863  
Other noninterest-bearing liabilities          
Capital markets payables  39,510  -  39,510  -  39,510  
Accrued interest payable  33,244  -  33,244  -  33,244  
Total other noninterest-bearing liabilities  72,754  -  72,754  -  72,754  
Total liabilities  $20,809,148  $2,738  $20,668,530  $138,659  $20,809,927  

  • Classes are detailed in the recurring and nonrecurring measurement tables.
  • Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $66.0 million.

Contractual AmountFair Value
(Dollars in thousands)March 31, 2015March 31, 2014March 31, 2015March 31, 2014
Unfunded Commitments:  
Loan commitments$7,073,470  $7,543,821$2,439  $1,805
Standby and other commitments374,173  316,3995,229  5,642