Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2016

Variable Interest Entities [Abstract]

The following table summarizes VIEs consolidated by FHN as of September 30, 2016 and 2015:

			September 30, 2016						September 30, 2015
			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				$	127			N/A		$	2,000			N/A
Loans, net of unearned income					38,519			N/A			59,258			N/A
	Less: Allowance for loan losses				588			N/A			54			N/A
		Total net loans			37,931			N/A			59,204			N/A
Other assets					286		$	72,916			114		$	66,490
Total assets				$	38,344		$	72,916		$	61,318		$	66,490
Liabilities:
Term borrowings				$	26,062			N/A		$	48,491			N/A
Other liabilities					3		$	53,429			3		$	49,275
Total liabilities				$	26,065		$	53,429		$	48,494		$	49,275

Summary of the Impact of Qualifying LIHTC Investments

		Three Months Ended				Nine Months Ended
		September 30				September 30
(Dollars in thousands)		2016		2015		2016		2015
Provision/(benefit) for income taxes:
Amortization of qualifying LIHTC investments	$	5,445	$	2,293	$	10,073	$	6,653
Low income housing tax credits		(2,615)		(2,363)		(7,672)		(7,089)
Other tax benefits related to qualifying LIHTC investments		(6,131)		(819)		(8,310)		(2,418)

Summary Of VIEs Not Consolidated By FHN

The following table summarizes FHN’s nonconsolidated VIEs as of September 30, 2016:

	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized			Classification
Type
Low income housing partnerships	$	65,754		$	12,817	(a)
Other tax credit investments (b) (c)		20,321			-	Other assets
Small issuer trust preferred holdings (d)		333,309			-	Loans, net of unearned income
On-balance sheet trust preferred securitization		49,370			64,803	(e)
Proprietary residential mortgage securitizations		17,201			-	(f)
Holdings of agency mortgage-backed securities (d)		4,586,329			-	(g)
Short positions in agency mortgage-backed securities (h)		N/A			199	Trading liabilities
Commercial loan troubled debt restructurings (i)		36,354			-	Loans, net of unearned income
Sale-leaseback transaction		11,827			-	(j)

Maximum loss exposure represents $52.9 million of current investments and $12.8 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 2017.
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 $64.8 million classified as Term borrowings.
Includes $.3 million classified as MSR, $2.8 million classified as Trading securities, and $14.1 million of aggregate servicing advances.
Includes $.7 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.
No exposure of loss due to the nature of FHN’s involvement.
Maximum loss exposure represents $36.3 million of current receivables and $.1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

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

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 of loss due to the nature of FHN’s involvement.
Includes $.6 million classified as MSR, $4.6 million classified as Trading securities, and $19.9 million of aggregate servicing advances.
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.