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Derivatives (Tables)

6 Months Ended

Jun. 30, 2016

Derivatives Associated With Capital Markets Trading Activities

The following tables summarize FHN’s derivatives associated with fixed income trading activities as of June 30, 2016 and 2015:

	June 30, 2016
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,877,212		$	95,612		$	473
Offsetting Upstream Interest Rate Contracts		1,877,212			473			95,612
Option Contracts Purchased		10,000			13			-
Forwards and Futures Purchased		4,428,569			19,437			1,653
Forwards and Futures Sold		4,587,802			2,136			17,965

	June 30, 2015
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,640,844		$	66,078		$	3,285
Offsetting Upstream Interest Rate Contracts		1,640,844			3,285			66,078
Option Contracts Purchased		15,000			55			-
Forwards and Futures Purchased		2,297,489			2,773			2,174
Forwards and Futures Sold		2,531,248			2,526			2,614

Derivatives Associated With Interest Rate Risk Management Activities

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of and for the three and six months ended June 30, 2016 and 2015:
										Gains/(Losses)
										Three Months Ended				Six Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			June 30, 2016				June 30, 2016
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	906,197		$	47,086	$	115			$	8,154			$	20,713
	Offsetting Upstream Interest Rate Contracts (a)		906,197			115		47,586				(8,154)				(20,713)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	900,000		$	24,511		N/A			$	6,660			$	26,606
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	900,000	(c)		$	(6,557)	(d)		$	(26,211)	(d)

										Gains/(Losses)
										Three Months Ended				Six Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			June 30, 2015				June 30, 2015
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	744,167		$	24,148	$	409			$	(6,158)			$	(1,915)
	Offsetting Upstream Interest Rate Contracts (a)		744,167			409		24,648				6,158				1,915
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,350,000		$	15,954	$	5,131			$	(10,810)			$	(9,840)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,350,000	(c)		$	10,735	(d)		$	9,812	(d)

Gains/losses included in the All other expense section of the Consolidated Condensed Statements of Income.
Gains/losses included in the All other income and commissions section of the Consolidated Condensed Statements of Income.
Represents par value of term borrowings being hedged.
Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Derivative Associated With Cash Flow Hedges

The following table summarizes FHN’s derivative activities associated with cash flow hedges as of and for the three and six months ended June 30, 2016.

Gains/(Losses)

Three Months Ended

Six Months Ended

(Dollars in thousands)

Notional

Assets

Liabilities

June 30, 2016

Cash Flow Hedges

Hedging Instruments:

Interest Rate Swaps

250,000

7,606

N/A

1,988

(a)

7,606

(a)

Hedged Items:

Variability in Cash Flows Related to Trust Preferred Loans

N/A

250,000

N/A

(a) Includes approximately $1.7 million expected to be reclassified into earnings in the next twelve months.

Schedule Of Derivative Activities Associated With Trust Preferred Loans

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of and for the three and six months ended June 30, 2016 and 2015:
												Gains/(Losses)
												Three Months Ended				Six Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			June 30, 2016				June 30, 2016
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	379		$	66			$	109
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A		$	(65)	(c)		$	(106)	(c)

												Gains/(Losses)
												Three Months Ended				Six Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			June 30, 2015				June 30, 2015
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	640		$	63			$	104
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A		$	(62)	(c)		$	(103)	(c)

Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.
Represents principal balance being hedged.
Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Derivative Assets And Collateral Received


The following table provides a detail of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of June 30:

								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Derivative
	Gross amounts		offset in the		assets presented		liabilities
	of recognized		Statements of		in the Statements		available for		Collateral
(Dollars in thousands)	assets		Condition		of Condition (a)		offset		Received		Net amount
Derivative assets:
2016 (b)	$	175,403	$	-	$	175,403	$	(13,963)	$	(141,426)	$	20,014
2015 (b)		109,874		-		109,874		(15,750)		(93,656)		468

Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of June 30, 2016 and 2015, $21.6 million and $5.4 million, respectively, of derivative assets (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
2016 and 2015 are comprised entirely of interest rate derivative contracts.

Derivative Liabilities and Collateral Pledged


The following table provides a detail of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of June 30:

									Gross amounts not offset in the
									Statements of Condition
			Gross amounts			Net amounts of
	Gross amounts		offset in the		liabilities presented			Derivative
	of recognized		Statements of			in the Statements		assets available		Collateral
(Dollars in thousands)	liabilities		Condition			of Condition (a)		for offset		pledged		Net amount
Derivative liabilities:
2016 (b)	$	144,165	$	-		$	144,165	$	(13,963)	$	(67,682)	$	62,520
2015 (b)		100,191		-			100,191		(15,750)		(68,775)		15,666

Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As of June 30, 2016 and 2015, $26.5 million and $9.6 million, respectively, of derivative liabilities (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
2016 and 2015 are comprised entirely of interest rate derivative contracts.