The following tables summarize FHN’s investment securities on September 30, 2016 and 2015:

	September 30, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued mortgage-backed securities ("MBS")		1,877,496		62,910		(49)		1,940,357
Government agency issued collateralized mortgage obligations ("CMO")		1,881,795		21,457		(2,108)		1,901,144
Equity and other (a)		185,992		1		-		185,993
Total securities available-for-sale (b)	$	3,945,383	$	84,368	$	(2,157)	$	4,027,594
Securities held-to-maturity:
States and municipalities	$	4,340	$	400	$	-	$	4,740
Corporate bonds		10,000		302		-		10,302
Total securities held-to-maturity	$	14,340	$	702	$	-	$	15,042

Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million. The remainder is money market and cost method investments.
Includes $3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.


	September 30, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued MBS		914,878		31,773		(700)		945,951
Government agency issued CMO		2,514,362		30,281		(9,207)		2,535,436
Other U.S. government agencies		1,443		3		-		1,446
States and municipalities		9,155		-		-		9,155
Equity and other (a)		182,014		-		(461)		181,553
Total securities available-for-sale (b)	$	3,621,952	$	62,057	$	(10,368)	$	3,673,641
Securities held-to-maturity:
States and municipalities	$	4,313	$	1,091	$	-	$	5,404
Total securities held-to-maturity	$	4,313	$	1,091	$	-	$	5,404

Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8 million. The remainder is money market, mutual funds, and cost method investments.
Includes $2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.


The amortized cost and fair value by contractual maturity for the available-for-sale and held-to-maturity securities portfolios on September 30, 2016 are provided below:

		Held-to-Maturity				Available-for-Sale
		Amortized		Fair		Amortized		Fair
(Dollars in thousands)		Cost		Value		Cost		Value
Within 1 year		$	-	$	-	$	100	$	100
After 1 year; within 5 years			-		-		-		-
After 5 years; within 10 years			10,000		10,302		-		-
After 10 years			4,340		4,740		-		-
	Subtotal		14,340		15,042		100		100
Government agency issued MBS and CMO (a)			-		-		3,759,291		3,841,501
Equity and other			-		-		185,992		185,993
Total		$	14,340	$	15,042	$	3,945,383	$	4,027,594

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The table below provides information on gross gains and gross losses from available-for-sale investment securities for the three and nine months ended September 30:
	Three Months Ended				Nine Months Ended
		September 30				September 30
(Dollars in thousands)	2016		2015		2016		2015
Gross gains on sales of securities	$	-	$	-	$	3,999	$	284
Gross (losses) on sales of securities		-		-		(2,326)		-
Net gain/(loss) on sales of securities (a)		-		-		1,673		284
Net OTTI recorded (b)		(200)		(345)		(200)		(345)
Total securities gain/(loss), net	$	(200)	$	(345)	$	1,473	$	(61)

There were no sales proceeds for the three months ended September 30, 2016 and 2015; cash proceeds for the nine months ended September 30, 2016 and 2015 were $1.5 million and $.3 million, respectively. Nine months ended September 30, 2016 includes a $1.7 million gain from an exchange of approximately $294 million of AFS debt securities.
OTTI recorded is related to equity securities.

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of September 30, 2016 and 2015:
	As of September 30, 2016
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	320,282	$	(631)	$	142,060	$	(1,477)	$	462,342	$	(2,108)
Government agency issued MBS		38,477		(49)		-		-		38,477		(49)
Total temporarily impaired securities	$	358,759	$	(680)	$	142,060	$	(1,477)	$	500,819	$	(2,157)


	As of September 30, 2015
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	370,165	$	(1,487)	$	435,331	$	(7,720)	$	805,496	$	(9,207)
Government agency issued MBS		69,997		(242)		32,538		(458)		102,535		(700)
Total debt securities		440,162		(1,729)		467,869		(8,178)		908,031		(9,907)
Equity		-		-		630		(461)		630		(461)
Total temporarily impaired securities	$	440,162	$	(1,729)	$	468,499	$	(8,639)	$	908,661	$	(10,368)

FHN has reviewed investment securities that were in unrealized loss positions in accordance with its accounting policy for OTTI and does not consider them other-than-temporarily impaired. For debt securities with unrealized losses, FHN does not intend to sell them and it is more-likely-than-not that FHN will not be required to sell them prior to recovery. The decline in value is primarily attributable to changes in interest rates and not credit losses. For equity securities, FHN has both the ability and intent to hold these securities for the time necessary to recover the amortized cost.