Business Segment Information

9 Months Ended

Sep. 30, 2015

Business Segment Information [Abstract]

Business Segment Information

Note 12 – Business Segment Information

FHN has four business segments: regional banking, fixed income, 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 nine months ended September 30:

		Three Months Ended			Nine Months Ended
		September 30			September 30
(Dollars in thousands)	2015		2014		2015		2014
Consolidated
Net interest income	$	163,562	$	159,541	$	487,068	$	468,668
Provision for loan losses		1,000		6,000		8,000		21,000
Noninterest income		125,103		157,815		385,093		430,446
Noninterest expense		215,436		244,016		810,051		625,222
Income/(loss) before income taxes		72,229		67,340		54,110		252,892
Provision/(benefit) for income taxes		8,897		16,842		8,226		70,486
Net income/(loss)	$	63,332	$	50,498	$	45,884	$	182,406
Average assets	$	25,314,761	$	23,802,334	$	25,456,596	$	23,786,429
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				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2015		2014		2015		2014
Regional Banking
Net interest income	$	165,258	$	153,868	$	485,575	$	444,569
Provision/(provision credit) for loan losses		6,696		2,204		28,689		23,619
Noninterest income		62,773		64,155		188,966		190,374
Noninterest expense		135,776		135,903		415,759		401,442
Income/(loss) before income taxes		85,559		79,916		230,093		209,882
Provision/(benefit) for income taxes		30,809		28,561		82,186		74,714
Net income/(loss)	$	54,750	$	51,355	$	147,907	$	135,168
Average assets	$	14,991,229	$	13,575,811	$	14,750,532	$	13,084,962

Fixed Income
Net interest income	$	3,008	$	2,950	$	11,628	$	9,013
Noninterest income		51,756		49,896		169,322		154,219
Noninterest expense		59,783		47,915		165,680		100,629
Income/(loss) before income taxes		(5,019)		4,931		15,270		62,603
Provision/(benefit) for income taxes		(2,359)		1,696		4,979		23,682
Net income/(loss)	$	(2,660)	$	3,235	$	10,291	$	38,921
Average assets	$	2,189,076	$	2,003,401	$	2,349,551	$	2,038,659

Corporate
Net interest income/(expense)	$	(19,037)	$	(14,246)	$	(52,497)	$	(36,137)
Noninterest income		8,559		4,139		17,845		22,569
Noninterest expense		11,521		16,511		39,460		47,370
Income/(loss) before income taxes		(21,999)		(26,618)		(74,112)		(60,938)
Provision/(benefit) for income taxes		(24,841)		(16,928)		(52,363)		(43,925)
Net income/(loss)	$	2,842	$	(9,690)	$	(21,749)	$	(17,013)
Average assets	$	5,888,475	$	5,228,339	$	5,954,239	$	5,471,945

Non-Strategic
Net interest income	$	14,333	$	16,969	$	42,362	$	51,223
Provision/(provision credit) for loan losses		(5,696)		3,796		(20,689)		(2,619)
Noninterest income		2,015		39,625		8,960		63,284
Noninterest expense		8,356		43,687		189,152		75,781
Income/(loss) before income taxes		13,688		9,111		(117,141)		41,345
Provision/(benefit) for income taxes		5,288		3,513		(26,576)		16,015
Net income/(loss)	$	8,400	$	5,598	$	(90,565)	$	25,330
Average assets	$	2,245,981	$	2,994,783	$	2,402,274	$	3,190,863

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.