Business Segment Information

9 Months Ended

Sep. 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 nine months ended September 30:

		Three Months Ended			Nine Months Ended
		September 30			September 30
(Dollars in thousands)	2016		2015		2016		2015
Consolidated
Net interest income	$	185,195	$	163,562	$	533,533	$	487,068
Provision for loan losses		4,000		1,000		11,000		8,000
Noninterest income		148,545		125,103		428,364		385,093
Noninterest expense		233,558		215,436		687,307		810,051
Income/(loss) before income taxes		96,182		72,229		263,590		54,110
Provision/(benefit) for income taxes		28,547		8,897		82,802		8,226
Net income/(loss)	$	67,635	$	63,332	$	180,788	$	45,884
Average assets	$	27,609,702	$	25,312,903	$	27,021,137	$	25,454,266
Certain previously reported amounts have been reclassified to agree with current presentation.

	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2016		2015		2016		2015
Regional Banking
Net interest income	$	190,510	$	165,253	$	541,144	$	485,564
Provision/(provision credit) for loan losses		8,544		6,696		34,194		28,689
Noninterest income		65,128		62,763		185,679		188,942
Noninterest expense		144,972		135,589		454,638		415,026
Income/(loss) before income taxes		102,122		85,731		237,991		230,791
Provision/(benefit) for income taxes		37,095		30,876		84,976		82,458
Net income/(loss)	$	65,027	$	54,855	$	153,015	$	148,333
Average assets	$	17,582,996	$	14,989,007	$	16,704,503	$	14,748,349

Fixed Income
Net interest income	$	2,412	$	3,003	$	8,225	$	11,616
Noninterest income		72,073		51,757		217,278		169,323
Noninterest expense		59,575		59,844		181,124		165,836
Income/(loss) before income taxes		14,910		(5,084)		44,379		15,103
Provision/(benefit) for income taxes		5,459		(2,384)		16,089		4,914
Net income/(loss)	$	9,451	$	(2,700)	$	28,290	$	10,189
Average assets	$	2,305,968	$	2,190,624	$	2,348,619	$	2,350,786

Corporate
Net interest income/(expense)	$	(18,195)	$	(19,027)	$	(48,409)	$	(52,467)
Noninterest income		5,134		8,559		15,766		17,845
Noninterest expense		14,841		11,804		44,392		40,207
Income/(loss) before income taxes		(27,902)		(22,272)		(77,035)		(74,829)
Provision/(benefit) for income taxes		(16,739)		(24,946)		(40,833)		(52,640)
Net income/(loss)	$	(11,163)	$	2,674	$	(36,202)	$	(22,189)
Average assets	$	5,880,090	$	5,886,929	$	6,024,553	$	5,951,999

Non-Strategic
Net interest income	$	10,468	$	14,333	$	32,573	$	42,355
Provision/(provision credit) for loan losses		(4,544)		(5,696)		(23,194)		(20,689)
Noninterest income		6,210		2,024		9,641		8,983
Noninterest expense		14,170		8,199		7,153		188,982
Income/(loss) before income taxes		7,052		13,854		58,255		(116,955)
Provision/(benefit) for income taxes		2,732		5,351		22,570		(26,506)
Net income/(loss)	$	4,320	$	8,503	$	35,685	$	(90,449)
Average assets	$	1,840,648	$	2,246,343	$	1,943,462	$	2,403,132
Certain previously reported amounts have been reclassified to agree with current presentation.