Allowance

9 Months Ended

Sep. 30, 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, 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 which were filed as part of Exhibit 99.1 to FHN’s Current Report on Form 8-K dated October 19, 2015, 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 and nine months ended September 30, 2015 and 2014:
				Commercial		Consumer		Permanent		Credit Card
(Dollars in thousands)		C&I		Real Estate		Real Estate		Mortgage		and Other			Total
Balance as of July 1, 2014		$	68,591	$	15,821	$	118,037	$	23,727	$	17,452	$	243,628
Charge-offs			(3,741)		(1,789)		(13,465)		(1,047)		(3,642)		(23,684)
Recoveries			5,219		312		5,669		686		811		12,697
Provision/(provision credit) for loan losses			(199)		1,106		8,154		(3,145)		84		6,000
Balance as of September 30, 2014			69,870		15,450		118,395		20,221		14,705		238,641
Balance as of January 1, 2014		$	86,446	$	10,603	$	126,785	$	22,491	$	7,484	$	253,809
Charge-offs			(14,997)		(3,163)		(33,803)		(4,144)		(11,033)		(67,140)
Recoveries			8,338		2,323		16,113		1,958		2,240		30,972
Provision/(provision credit) for loan losses			(9,917)		5,687		9,300		(84)		16,014		21,000
Balance as of September 30, 2014			69,870		15,450		118,395		20,221		14,705		238,641
Allowance - individually evaluated for impairment			6,039		1,104		41,492		17,329		255		66,219
Allowance - collectively evaluated for impairment			63,783		11,613		76,845		2,892		14,450		169,583
Allowance - purchase credit impaired loans			48		2,733		58		-		-		2,839
Loans, net of unearned as of September 30, 2014:
	Individually evaluated for impairment		46,862		22,365		174,532		118,537		548		362,844
	Collectively evaluated for impairment		8,425,391		1,221,636		4,955,813		454,252		351,958		15,409,050
	Purchased credit-impaired loans		5,076		34,393		643		-		11		40,123
Total loans, net of unearned		$	8,477,329	$	1,278,394	$	5,130,988	$	572,789	$	352,517	$	15,812,017
Balance as of July 1, 2015		$	78,750	$	21,492	$	85,457	$	22,377	$	13,275	$	221,351
Charge-offs			(8,632)		(533)		(7,994)		(1,038)		(3,612)		(21,809)
Recoveries			2,264		868		5,785		229		1,126		10,272
Provision/(provision credit) for loan losses			(919)		3,521		(776)		(1,492)		666		1,000
Balance as of September 30, 2015			71,463		25,348		82,472		20,076		11,455		210,814
Balance as of January 1, 2015		$	67,011	$	18,574	$	113,011	$	19,122	$	14,730	$	232,448
Charge-offs			(17,163)		(2,208)		(23,434)		(3,031)		(13,406)		(59,242)
Recoveries			5,143		1,712		18,360		1,518		2,875		29,608
Provision/(provision credit) for loan losses			16,472		7,270		(25,465)		2,467		7,256		8,000
Balance as of September 30, 2015			71,463		25,348		82,472		20,076		11,455		210,814
Allowance - individually evaluated for impairment			6,156		587		33,918		15,696		168		56,525
Allowance - collectively evaluated for impairment			65,063		22,591		48,050		4,380		11,286		151,370
Allowance - purchased credit-impaired loans			244		2,170		504		-		1		2,919
Loans, net of unearned as of September 30, 2015:
	Individually evaluated for impairment		39,659		10,309		170,068		105,054		380		325,470
	Collectively evaluated for impairment		9,565,626		1,457,568		4,641,396		358,839		348,937		16,372,366
	Purchased credit-impaired loans		5,010		20,167		2,472		-		7		27,656
Total loans, net of unearned		$	9,610,295	$	1,488,044	$	4,813,936	$	463,893	$	349,324	$	16,725,492