Business Segment Information

6 Months Ended

Jun. 30, 2016

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, gains on the extinguishment of debt, and acquisition-related costs. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements including servicing fees, 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.

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. Business segment revenue, expense, asset, and equity 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, to an extent they are 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)	2016		2015		2016		2015
Consolidated
Net interest income	$	176,264	$	166,640	$	348,338	$	323,506
Provision for loan losses		4,000		2,000		7,000		7,000
Noninterest income		145,514		130,301		279,819		259,990
Noninterest expense		226,822		218,394		453,749		594,615
Income/(loss) before income taxes		90,956		76,547		167,408		(18,119)
Provision/(benefit) for income taxes		30,016		21,590		54,255		(671)
Net income/(loss)	$	60,940	$	54,957	$	113,153	$	(17,448)
Average assets	$	26,828,548	$	25,411,578	$	26,723,621	$	25,526,120
Certain previously reported amounts have been reclassified to agree with current presentation.

	Three Months Ended				Six Months Ended
	June 30				June 30
(Dollars in thousands)	2016		2015		2016		2015
Regional Banking
Net interest income	$	178,321	$	165,903	$	350,634	$	320,311
Provision/(provision credit) for loan losses		10,883		17,078		25,650		21,993
Noninterest income		61,275		65,983		120,551		126,179
Noninterest expense		164,315		143,960		309,666		279,437
Income/(loss) before income taxes		64,398		70,848		135,869		145,060
Provision/(benefit) for income taxes		22,455		25,086		47,881		51,582
Net income/(loss)	$	41,943	$	45,762	$	87,988	$	93,478
Average assets	$	16,575,676	$	15,021,991	$	16,260,430	$	14,626,026

Fixed Income
Net interest income	$	3,147	$	4,293	$	5,813	$	8,613
Noninterest income		78,083		56,002		145,205		117,566
Noninterest expense		62,881		51,253		121,549		105,992
Income/(loss) before income taxes		18,349		9,042		29,469		20,187
Provision/(benefit) for income taxes		6,755		3,154		10,630		7,298
Net income/(loss)	$	11,594	$	5,888	$	18,839	$	12,889
Average assets	$	2,470,699	$	2,417,317	$	2,370,179	$	2,432,194

Corporate
Net interest income/(expense)	$	(15,850)	$	(17,366)	$	(30,214)	$	(33,440)
Noninterest income		4,909		3,901		10,632		9,286
Noninterest expense		16,072		14,061		29,551		28,403
Income/(loss) before income taxes		(27,013)		(27,526)		(49,133)		(52,557)
Provision/(benefit) for income taxes		(12,840)		(15,991)		(24,094)		(27,694)
Net income/(loss)	$	(14,173)	$	(11,535)	$	(25,039)	$	(24,863)
Average assets	$	5,833,122	$	5,562,880	$	6,097,578	$	5,985,074

Non-Strategic
Net interest income	$	10,646	$	13,810	$	22,105	$	28,022
Provision/(provision credit) for loan losses		(6,883)		(15,078)		(18,650)		(14,993)
Noninterest income		1,247		4,415		3,431		6,959
Noninterest expense		(16,446)		9,120		(7,017)		180,783
Income/(loss) before income taxes		35,222		24,183		51,203		(130,809)
Provision/(benefit) for income taxes		13,646		9,341		19,838		(31,857)
Net income/(loss)	$	21,576	$	14,842	$	31,365	$	(98,952)
Average assets	$	1,949,051	$	2,409,390	$	1,995,434	$	2,482,826
Certain previously reported amounts have been reclassified to agree with current presentation.