Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2015

Variable Interest Entities [Abstract]

The following table summarizes VIEs consolidated by FHN as of September 30, 2015 and 2014:

			September 30, 2015						September 30, 2014
			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans
			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans
(Dollars in thousands)			Carrying Value			Carrying Value			Carrying Value			Carrying Value
Assets:
Cash and due from banks				$	2,000			N/A		$	300			N/A
Loans, net of unearned income					59,258			N/A			81,111			N/A
	Less: Allowance for loan losses				54			N/A			812			N/A
		Total net loans			59,204			N/A			80,299			N/A
Other assets					114		$	66,490			438		$	66,290
Total assets				$	61,318		$	66,490		$	81,037		$	66,290
Liabilities:
Term borrowings				$	48,491			N/A		$	70,720			N/A
Other liabilities					3		$	49,275			4		$	50,477
Total liabilities				$	48,494		$	49,275		$	70,724		$	50,477

Summary of the Impact of Qualifying LIHTC Investments

		Three Months Ended				Nine Months Ended
		September 30				September 30
(Dollars in thousands)		2015		2014		2015		2014
Provision/(benefit) for income taxes:
Amortization of qualifying LIHTC investments	$	2,293	$	2,470	$	6,653	$	7,410
Low income housing tax credits		(2,363)		(2,462)		(7,089)		(7,387)
Other tax benefits related to qualifying LIHTC investments		(819)		(1,859)		(2,418)		(5,578)

Summary Of VIEs Not Consolidated By FHN

The following table summarizes FHN’s nonconsolidated VIEs as of September 30, 2015:

	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized			Classification
Type
Low income housing partnerships	$	76,982		$	22,224	(a)
Other Tax Credit Investments (b) (c)		21,359			-	Other assets
Small issuer trust preferred holdings (d)		344,291			-	Loans, net of unearned income
On-balance sheet trust preferred securitization		50,037			64,137	(e)
Proprietary and agency residential mortgage securitizations		25,105			-	(g)
Holdings of agency mortgage-backed securities (d)		4,030,604			-	(h)
Short positions in agency mortgage-backed securities (f)		N/A			896	Trading liabilities
Commercial loan troubled debt restructurings (i) (j)		29,280			-	Loans, net of unearned income
Managed discretionary trusts (f)		N/A			N/A	N/A

Maximum loss exposure represents $54.8 million of current investments and $22.2 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other Liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2016.
A liability is not recognized as investments are written down over the life of the related tax credit.
Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.
Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.
Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $64.1 million classified as Term borrowings.
No exposure to loss due to the nature of FHN’s involvement.
Includes $.6 million classified as MSR related to proprietary and agency residential mortgage securitizations and $4.6 million classified as Trading securities related to proprietary residential mortgage securitizations. Aggregate servicing advances of $19.9 million are classified as Other assets.
Includes $549.2 million classified as Trading securities and $3.5 billion classified as Securities available-for-sale.
Maximum loss exposure represents $29.2 million of current receivables and $.1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
A liability is not recognized as the loans are the only variable interests held in the troubled commercial borrowers’ operations.

The following table summarizes FHN's nonconsolidated VIEs as of September 30, 2014:

	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized		Classification
Type
Low income housing partnerships	$	63,921	$	5,937	(a)
Other Tax Credit Investments (b) (c)		22,077		-	Other assets
Small issuer trust preferred holdings (d)		364,912		-	Loans, net of unearned income
On-balance sheet trust preferred securitization		52,320		61,853	(e)
Proprietary trust preferred issuances (f)		N/A		206,186	Term borrowings
Proprietary and agency residential mortgage securitizations		26,973		-	(g)
Holdings of agency mortgage-backed securities (d)		3,843,125		-	(h)
Commercial loan troubled debt restructurings (i) (j)		55,539		-	Loans, net of unearned income
Managed discretionary trusts (f)		N/A		N/A	N/A

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.

Maximum loss exposure represents $58.0 million of current investments and $5.9 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other Liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2016.
A liability is not recognized as investments are written down over the life of the related tax credit.
Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.
Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.
Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $61.9 million classified as Term borrowings.
No exposure to loss due to the nature of FHN’s involvement.
Includes $.9 million classified as MSR related to proprietary and agency residential mortgage securitizations and $6.1 million classified as Trading securities related to proprietary and agency residential mortgage securitizations. Aggregate servicing advances of $19.9 million are classified as Other assets.
Includes $502.6 million classified as Trading securities and $3.3 billion classified as Securities available-for-sale.
Maximum loss exposure represents $52.4 million of current receivables and $3.1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
A liability is not recognized as the loans are the only variable interests held in the troubled commercial borrowers’ operations.