The following tables summarize FHN’s investment securities on September 30, 2015 and 2014:

	September 30, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale ("AFS"):
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued mortgage-backed securities ("MBS")		914,878		31,773		(700)		945,951
Government agency issued collateralized mortgage obligations ("CMO")		2,514,362		30,281		(9,207)		2,535,436
Other U.S. government agencies		1,443		3		-		1,446
States and municipalities		9,155		-		-		9,155
Equity and other (a)		182,014		-		(461)		181,553
Total securities available-for-sale (b)	$	3,621,952	$	62,057	$	(10,368)	$	3,673,641
Securities held-to-maturity ("HTM"):
States and municipalities	$	4,313	$	1,091	$	-	$	5,404
Total securities held-to-maturity	$	4,313	$	1,091	$	-	$	5,404

Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8 million. The remainder is money market, mutual funds, and cost method investments.
Includes $2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.


	September 30, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued MBS		685,426		33,820		(2,381)		716,865
Government agency issued CMO		2,648,047		15,637		(39,999)		2,623,685
Other U.S. government agencies		1,859		70		-		1,929
States and municipalities		10,205		-		-		10,205
Equity and other (a)		182,119		-		(232)		181,887
Total securities available-for-sale (b)	$	3,527,756	$	49,527	$	(42,612)	$	3,534,671
Securities held-to-maturity:
States and municipalities	$	4,286	$	1,094	$	-	$	5,380
Total securities held-to-maturity	$	4,286	$	1,094	$	-	$	5,380

Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $66.0 million. The remainder is money market, mutual funds, and cost method investments.
Includes $3.2 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.


The amortized cost and fair value by contractual maturity for the available-for-sale and held-to-maturity securities portfolios on September 30, 2015, are provided below:

		Held-to-Maturity				Available-for-Sale
		Amortized		Fair		Amortized		Fair
(Dollars in thousands)		Cost		Value		Cost		Value
Within 1 year		$	-	$	-	$	2,943	$	2,946
After 1 year; within 5 years			-		-		100		100
After 5 years; within 10 years			-		-		-		-
After 10 years			4,313		5,404		7,655		7,655
	Subtotal		4,313		5,404		10,698		10,701
Government agency issued MBS and CMO (a)			-		-		3,429,240		3,481,387
Equity and other			-		-		182,014		181,553
Total		$	4,313	$	5,404	$	3,621,952	$	3,673,641

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The table below provides information on gross gains and gross losses from investment securities for the three and nine months ended September 30:
	Three Months Ended				Nine Months Ended
		September 30				September 30
(Dollars in thousands)	2015		2014		2015		2014
Gross gains on sales of securities	$	-	$	133	$	284	$	5,867
Gross losses on sales of securities		-		-		-		-
Net gain/(loss) on sales of securities (a)		-		133		284		5,867
Venture capital investments (b)		-		(995)		-		(2,995)
Net other than temporary impairment ("OTTI") recorded (c)		(345)		-		(345)		-
Total securities gain/(loss), net	$	(345)	$	(862)	$	(61)	$	2,872

There were no sales proceeds for the three months ended September 30, 2015; proceeds for the nine months ended September 30, 2015 were not material. Proceeds from sales for the three months ended September 30, 2014 were $3.3 million and for the nine months ended September 30, 2014 were $9.2 million, inclusive of $1.4 million of equity securities.
Includes write-offs and/or unrealized fair value adjustments related to venture capital investments.
OTTI recorded in third quarter 2015 is related to equity securities.

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of September 30, 2015 and 2014:
	As of September 30, 2015
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	370,165	$	(1,487)	$	435,331	$	(7,720)	$	805,496	$	(9,207)
Government agency issued MBS		69,997		(242)		32,538		(458)		102,535		(700)
Total debt securities		440,162		(1,729)		467,869		(8,178)		908,031		(9,907)
Equity		-		-		630		(461)		630		(461)
Total temporarily impaired securities	$	440,162	$	(1,729)	$	468,499	$	(8,639)	$	908,661	$	(10,368)


	As of September 30, 2014
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	724,834	$	(5,113)	$	949,556	$	(34,886)	$	1,674,390	$	(39,999)
Government agency issued MBS		32,621		(244)		103,858		(2,137)		136,479		(2,381)
Total debt securities		757,455		(5,357)		1,053,414		(37,023)		1,810,869		(42,380)
Equity		849		(198)		10		(34)		859		(232)
Total temporarily impaired securities	$	758,304	$	(5,555)	$	1,053,424	$	(37,057)	$	1,811,728	$	(42,612)

FHN has reviewed investment securities that were in unrealized loss positions in accordance with its accounting policy for OTTI and does not consider them other-than-temporarily impaired. For debt securities with unrealized losses, FHN does not intend to sell them and it is more-likely-than-not that FHN will not be required to sell them prior to recovery. The decline in value is primarily attributable to changes in interest rates and not credit losses. For equity securities, FHN has both the ability and intent to hold these securities for the time necessary to recover the amortized cost.