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Derivatives (Tables)

9 Months Ended

Sep. 30, 2016

Derivatives Associated With Fixed Income Trading Activities

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

	September 30, 2016
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,891,507		$	80,800		$	580
Offsetting Upstream Interest Rate Contracts		1,891,507			580			80,800
Option Contracts Purchased		67,500			89			-
Forwards and Futures Purchased		4,183,225			10,092			965
Forwards and Futures Sold		4,528,079			1,667			9,959

	September 30, 2015
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,670,717		$	82,905		$	1,512
Offsetting Upstream Interest Rate Contracts		1,670,717			1,512			82,905
Option Contracts Purchased		10,000			23			-
Forwards and Futures Purchased		3,458,150			15,561			353
Forwards and Futures Sold		3,578,542			774			15,568

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 nine months ended September 30, 2016 and 2015:
										Gains/(Losses)
										Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2016				September 30, 2016
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	1,204,975		$	45,096	$	89			$	(1,964)			$	18,749
	Offsetting Upstream Interest Rate Contracts (a)		1,204,975			89		45,596				1,964				(18,749)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	900,000		$	17,257		N/A			$	(7,254)			$	19,352
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	900,000	(c)		$	7,152	(d)		$	(19,059)	(d)

										Gains/(Losses)
										Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2015				September 30, 2015
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	790,321		$	34,507	$	210			$	10,558			$	8,643
	Offsetting Upstream Interest Rate Contracts (a)		790,321			210		35,007				(10,558)				(8,643)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,150,000		$	16,960		N/A			$	3,247			$	(6,593)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,150,000	(c)		$	(3,167)	(d)		$	6,645	(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 nine months ended September 30, 2016.

Gains/(Losses)

Three Months Ended

Nine Months Ended

(Dollars in thousands)

Notional

Assets

Liabilities

September 30, 2016

Cash Flow Hedges

Hedging Instruments:

Interest Rate Swaps (a)

250,000

5,061

N/A

(2,545)

(b)

5,061

(b)

Hedged Items:

Variability in Cash Flows Related to Trust Preferred Loans

N/A

250,000

N/A

(a) After tax gains/(losses) included within AOCI.

(b) Includes approximately $1.2 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 nine months ended September 30, 2016 and 2015:
												Gains/(Losses)
												Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			September 30, 2016				September 30, 2016
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	287		$	93			$	201
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A		$	(92)	(c)		$	(199)	(c)

												Gains/(Losses)
												Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			September 30, 2015				September 30, 2015
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	600		$	40			$	144
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A		$	(39)	(c)		$	(142)	(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 details of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of September 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)	$	148,883	$	-	$	148,883	$	(8,823)	$	(125,095)	$	14,965
2015 (b)		136,098		-		136,098		(9,748)		(121,401)		4,949

Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of September 30, 2016 and 2015, $11.9 million and $16.5 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 details of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of September 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)	$	127,352	$	-		$	127,352	$	(8,823)	$	(57,298)	$	61,231
2015 (b)		120,234		-			120,234		(9,748)		(78,211)		32,275

Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As of September 30, 2016 and 2015, $17.5 million and $20.7 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.