Business Segment Information

6 Months Ended

Jun. 30, 2015

Business Segment Information [Abstract]

Business Segment Information

Note 12 – Business Segment Information

FHN has four business segments: regional banking, fixed income (formerly 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 customersin 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 fixed income 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 and six months ended June 30:

		Three Months Ended			Six Months Ended
		June 30			June 30
(Dollars in thousands)	2015		2014		2015		2014
Consolidated
Net interest income	$	166,640	$	156,768	$	323,506	$	309,127
Provision for loan losses		2,000		5,000		7,000		15,000
Noninterest income		130,301		126,901		259,990		272,631
Noninterest expense		218,394		163,162		594,615		381,206
Income/(loss) before income taxes		76,547		115,507		(18,119)		185,552
Provision/(benefit) for income taxes		21,590		33,578		(671)		53,644
Net income/(loss)	$	54,957	$	81,929	$	(17,448)	$	131,908
Average assets	$	25,414,048	$	23,647,298	$	25,528,689	$	23,778,347
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				Six Months Ended
	June 30				June 30
(Dollars in thousands)	2015		2014		2015		2014
Regional Banking
Net interest income	$	165,908	$	148,675	$	320,317	$	290,701
Provision/(provision credit) for loan losses		17,078		8,425		21,993		21,415
Noninterest income		65,989		66,227		126,193		126,219
Noninterest expense		144,203		132,996		279,983		265,539
Income/(loss) before income taxes		70,616		73,481		144,534		129,966
Provision/(benefit) for income taxes		24,996		26,070		51,377		46,153
Net income/(loss)	$	45,620	$	47,411	$	93,157	$	83,813
Average assets	$	15,023,869	$	13,053,129	$	14,628,188	$	12,835,470

Fixed Income
Net interest income	$	4,297	$	2,587	$	8,620	$	6,063
Noninterest income		56,001		47,564		117,566		104,323
Noninterest expense		51,214		116		105,897		52,714
Income/(loss) before income taxes		9,084		50,035		20,289		57,672
Provision/(benefit) for income taxes		3,171		19,143		7,338		21,986
Net income/(loss)	$	5,913	$	30,892	$	12,951	$	35,686
Average assets	$	2,416,132	$	2,074,593	$	2,431,118	$	2,056,581

Corporate
Net interest income/(expense)	$	(17,376)	$	(11,968)	$	(33,460)	$	(21,891)
Noninterest income		3,901		5,215		9,286		18,430
Noninterest expense		13,770		13,532		27,939		30,859
Income/(loss) before income taxes		(27,245)		(20,285)		(52,113)		(34,320)
Provision/(benefit) for income taxes		(15,882)		(16,369)		(27,522)		(26,997)
Net income/(loss)	$	(11,363)	$	(3,916)	$	(24,591)	$	(7,323)
Average assets	$	5,565,279	$	5,341,568	$	5,987,666	$	5,595,768

Non-Strategic
Net interest income	$	13,811	$	17,474	$	28,029	$	34,254
Provision/(provision credit) for loan losses		(15,078)		(3,425)		(14,993)		(6,415)
Noninterest income		4,410		7,895		6,945		23,659
Noninterest expense		9,207		16,518		180,796		32,094
Income/(loss) before income taxes		24,092		12,276		(130,829)		32,234
Provision/(benefit) for income taxes		9,305		4,734		(31,864)		12,502
Net income/(loss)	$	14,787	$	7,542	$	(98,965)	$	19,732
Average assets	$	2,408,768	$	3,178,008	$	2,481,717	$	3,290,528

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.