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Fair Value Of Assets And Liabilities (Tables)
 9 Months Ended
Sep. 30, 2016
Fair Value Of Assets And Liabilities [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis
Recurring Fair Value Measurements
The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2016:
September 30, 2016
(Dollars in thousands)Level 1  Level 2  Level 3  Total
Trading securities - fixed income:      
U.S. treasuries$-  $110,538  $-  $110,538  
Government agency issued MBS-  478,756  -  478,756  
Government agency issued CMO-  266,284  -  266,284  
Other U.S. government agencies-  121,460  -  121,460  
States and municipalities-  93,448  -  93,448  
Corporate and other debt-  246,153  5  246,158  
Equity, mutual funds, and other-  1,112  -  1,112  
Total trading securities - fixed income -  1,317,751  5  1,317,756  
Trading securities - mortgage banking-  -  2,779  2,779
Loans held-for-sale-  214  22,536  22,750  
Securities available-for-sale:      
U.S. treasuries-  100  -  100  
Government agency issued MBS-  1,940,357  -  1,940,357  
Government agency issued CMO-  1,901,144  -  1,901,144  
Equity, mutual funds, and other24,636  -  -  24,636  
Total securities available-for-sale24,636  3,841,601  -  3,866,237  
Other assets:      
Mortgage servicing rights--1,2461,246
Deferred compensation assets31,892  -  -  31,892  
Derivatives, forwards and futures11,759  -  -  11,759  
Derivatives, interest rate contracts -  148,972  -  148,972  
Derivatives, other-5-5
Total other assets43,651  148,977  1,246  193,874  
Total assets$68,287  $5,308,543  $26,566  $5,403,396  
Trading liabilities - fixed income:      
U.S. treasuries$-  $508,895  $-  $508,895  
Government agency issued MBS-199-199
Other U.S. government agencies-  7,934  -  7,934  
States and municipalities-143-143
Corporate and other debt-  185,055  -  185,055  
Total trading liabilities - fixed income-  702,226  -  702,226  
Other liabilities:  
Derivatives, forwards and futures10,924  -  -  10,924  
Derivatives, interest rate contracts -  127,352  -  127,352  
Derivatives, other-  13  6,5406,553
Total other liabilities10,924127,3656,540144,829
Total liabilities$10,924  $829,591  $6,540  $847,055  

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2015:
  September 30, 2015
(Dollars in thousands)Level 1  Level 2  Level 3  Total
Trading securities - fixed income:      
U.S. treasuries$-  $97,211  $-  $97,211
Government agency issued MBS-  265,290  -  265,290
Government agency issued CMO-  283,927  -  283,927
Other U.S. government agencies-  113,739  -  113,739
States and municipalities-  65,255  -  65,255
Trading Loans-16,943-16,943
Corporate and other debt-  381,470  5  381,475
Equity, mutual funds, and other-  742  -742
Total trading securities - fixed income -  1,224,577  5  1,224,582
Trading securities - mortgage banking-  -  4,598  4,598
Loans held-for-sale-  -  26,789  26,789
Securities available-for-sale:      
U.S. treasuries-  100  -  100
Government agency issued MBS-  945,951  -  945,951
Government agency issued CMO-  2,535,436  -  2,535,436
Other U.S. government agencies-  -  1,446  1,446
States and municipalities-  7,655  1,500  9,155
Equity, mutual funds, and other25,840  -  -  25,840
Total securities available-for-sale25,840  3,489,142  2,946  3,517,928
Other assets:
Mortgage servicing rights-  -  1,993  1,993
Deferred compensation assets25,972  -  -  25,972
Derivatives, forwards and futures16,335  -  -  16,335
Derivatives, interest rate contracts-  136,121  -  136,121
Derivatives, other-92-92
Total other assets42,307  136,213  1,993  180,513
Total assets$68,147  $4,849,932  $36,331  $4,954,410
Trading liabilities - fixed income:      
U.S. treasuries$-  $478,759  $-  $478,759
Government agency issued MBS-1,481-1,481
Other U.S. government agencies-6,482-6,482
Corporate and other debt-301,841-301,841
Total trading liabilities - fixed income-  788,563  -  788,563
Other liabilities:
Derivatives, forwards and futures15,921  -  -  15,921
Derivatives, interest rate contracts-  120,234  -  120,234
Derivatives, other-  -  4,810  4,810
Total other liabilities15,921  120,234  4,810  140,965
Total liabilities$15,921  $908,797  $4,810  $929,528
Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value
Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the three months ended September 30, 2016 and 2015, on a recurring basis are summarized as follows:
Three Months Ended September 30, 2016
SecuritiesMortgage
TradingLoans held-available-servicingNet derivative
(Dollars in thousands)securitiesfor-salefor-salerights, netliabilities
Balance on July 1, 2016$2,826  $25,738  $1,500$1,406$(6,835)
Total net gains/(losses) included in:
Net income304  1,604  --(4)
Purchases-  198  ---  
Settlements(346)(2,146)(1,500)(160)299  
Net transfers into/(out of) Level 3-  (2,858) (b)  ---  
Balance on September 30, 2016$2,784  $22,536  $-$1,246$(6,540)
Net unrealized gains/(losses) included in net income$244 (a)  $1,604 (a)  $-$-$(4) (c)

Three Months Ended September 30, 2015
SecuritiesMortgage
TradingLoans held-available-servicingNet derivative
(Dollars in thousands)securitiesfor-salefor-salerights, netliabilities
Balance on July 1, 2015$4,929  $26,525  $3,060$2,158  $(4,810)
Total net gains/(losses) included in:
Net income57  803--  (302)
Other comprehensive income/(loss)-  -  (16)-  -
Purchases-  1,902  --  -
Settlements(383)(1,664)(98)(165)302
Net transfers into/(out of) Level 3 -  (777) (b)--  -
Balance on September 30, 2015$4,603  $26,789  $2,946$1,993  $(4,810)
Net unrealized gains/(losses) included in net income$57 (a)$803 (a)$-$-$(302) (c)

  • Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
  • Transfers out of recurring loans held-for-sale level 3 balances generally reflect movements out of recurring loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
  • Included in Other expense.

Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the nine months ended September 30, 2016 and 2015, on a recurring basis are summarized as follows:
  Nine Months Ended September 30, 2016
SecuritiesMortgage
  TradingLoans held-available-servicingNet derivative
(Dollars in thousands)securitiesfor-salefor-salerights, netliabilities
Balance on January 1, 2016$4,377  $27,418  $1,500$1,841  $(4,810)
Total net gains/(losses) included in:
  Net income506  2,375  -31  (2,627)
Purchases-  673  --  -  
Sales-  -  -(205)  -  
Settlements(2,099)(4,643)(1,500)(421)897  
Net transfers into/(out of) Level 3-  (3,287) (b)  --  -  
Balance on September 30, 2016$2,784  $22,536  $-$1,246  $(6,540)
Net unrealized gains/(losses) included in net income$324 (a)  $2,375 (a)  $-$-$(2,627) (c)

Nine Months Ended September 30, 2015
SecuritiesMortgage
TradingLoans held-available-servicingNet derivative
(Dollars in thousands)securitiesfor-salefor-salerights, netliabilities
Balance on January 1, 2015$5,642  $27,910  $3,307$2,517$(5,240)  
Total net gains/(losses) included in:
Net income296  2,193--(466)  
Other comprehensive income/(loss)-  -  (44)--  
Purchases-  3,080  ---  
Settlements(1,335)(4,483)(317)(524)896
Net transfers into/(out of) Level 3 -  (1,911) (b)---  
Balance on September 30, 2015$4,603  $26,789  $2,946$1,993$(4,810)  
Net unrealized gains/(losses) included in net income$296 (a)$2,193 (a)$-$-$(466) (c)

  • Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
  • Transfers out of recurring loans held-for-sale level 3 balances generally reflect movements out of recurring loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
  • Included in Other expense.

Nonrecurring Fair Value Measurements

Nonrecurring Fair Value Measurements

From time to time, FHN may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of LOCOM accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheet at September 30, 2016 and 2015, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment, the related carrying value, and the fair value adjustments recorded during the respective periods.

    Three Months EndedNine Months Ended
Carrying value at September 30, 2016September 30, 2016September 30, 2016
(Dollars in thousands)  Level 1  Level 2  Level 3  Total   Net gains/(losses)Net gains/(losses)
Loans held-for-sale - first mortgages$-  $-  $671  $671  $10$17
Loans, net of unearned income (a)-  -  31,797  31,797  461(3,249)
Real estate acquired by foreclosure (b)-  -  13,678  13,678  (711)(1,561)
Other assets (c)-  -  28,285  28,285  (788)(2,325)
$(1,028)$(7,118)

Three Months EndedNine Months Ended
Carrying value at September 30, 2015September 30, 2015September 30, 2015
(Dollars in thousands)  Level 1  Level 2  Level 3  Total   Net gains/(losses)Net gains/(losses)
Loans held-for-sale - first mortgages  $-  $-  $726  $726  $10$48
Loans, net of unearned income (a)-  -  27,898  27,898  1,1952,729
Real estate acquired by foreclosure (b)-  -  25,872  25,872  (706)(2,366)
Other assets (c)-  -  27,825  27,825  (439)(1,383)
          $60$(972)

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
  • Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.
Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements
Level 3 Measurements
The following tables provide information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of September 30, 2016 and 2015:
(Dollars in Thousands)
Fair Value at
Level 3 ClassSeptember 30, 2016Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage$2,779Discounted cash flowPrepayment speeds 34% - 46%
Discount rate30% - 57%
Loans held-for-sale - residential real estate23,207Discounted cash flowPrepayment speeds - First mortgage2% - 20%
Prepayment speeds - HELOC5% - 15%
Foreclosure losses47% - 57%
Loss severity trends - First mortgage5% - 70% of UPB
Loss severity trends - HELOC35% - 100% of UPB
Draw rate - HELOC5% - 12%
Derivative liabilities, other6,540Discounted cash flowVisa covered litigation resolution amount$4.4 billion - $5.2 billion
Probability of resolution scenarios10% - 30%
Time until resolution27 - 57 months
Loans, net of unearned income (a)31,797Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 10% of appraisal
Other collateral valuationsBorrowing base certificates adjustment20% - 50% of gross value
Financial Statements/Auction values adjustment0% - 25% of reported value
Real estate acquired by foreclosure (b)13,678Appraisals from comparable propertiesAdjustment for value changes since appraisal0% - 10% of appraisal
Other assets (c)28,285Discounted cash flowAdjustments to current sales yields for specific properties0% - 15% adjustment to yield
Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 25% of appraisal

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
  • Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.

(Dollars in Thousands)
Fair Value at
Level 3 ClassSeptember 30, 2015Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage$4,598Discounted cash flowPrepayment speeds43% - 45%
Discount rate6% - 59%
Loans held-for-sale - residential real estate27,515Discounted cash flowPrepayment speeds - First mortgage2% - 20%
Prepayment speeds - HELOC5% - 15%
Foreclosure Losses45% - 55%
Loss severity trends - First mortgage20% - 70% of UPB
Loss severity trends - HELOC35% - 100% of UPB
Draw Rate - HELOC5% - 12%
Derivative liabilities, other4,810Discounted cash flowVisa covered litigation resolution amount$4.5 billion - $5.5 billion
Probability of resolution scenarios5% - 25%
Time until resolution6 - 42 months
Loans, net of unearned income (a)27,898Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 10% of appraisal
Other collateral valuationsBorrowing base certificates adjustment20% - 50% of gross value
Financial Statements/Auction Values adjustment0% - 25% of reported value
Real estate acquired by foreclosure (b)25,872Appraisals from comparable propertiesAdjustment for value changes since appraisal0% - 10% of appraisal
Other assets (c)27,825Discounted cash flowAdjustments to current sales yields for specific properties0% - 15% adjustment to yield
Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 25% of appraisal

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
  • Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.
Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount
The following tables reflect the differences between the fair value carrying amount of residential real estate loans held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
September 30, 2016
(Dollars in thousands)Fair value carrying amountAggregate unpaid principalFair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:    
Total loans$22,750  $34,241  $(11,491)
Nonaccrual loans6,638  12,850  (6,212)
Loans 90 days or more past due and still accruing22  26  (4)
September 30, 2015
(Dollars in thousands)Fair value carrying amountAggregate unpaid principalFair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:    
Total loans$26,789  $41,350  $(14,561)
Nonaccrual loans7,206  13,712  (6,506)
Loans 90 days or more past due and still accruing2,677  3,822  (1,145)
Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings
Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:
Three Months EndedNine Months Ended
September 30September 30
(Dollars in thousands)2016201520162015
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held-for-sale$1,604$803$2,375$2,193
Summary Of Book Value And Estimated Fair Value Of Financial Instruments

The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as well as unfunded loan commitments and stand by and other commitments as of September 30, 2016 and 2015.

  September 30, 2016
BookFair Value
(Dollars in thousands)  Value  Level 1  Level 2  Level 3  Total
Assets:          
Loans, net of unearned income and allowance for loan losses          
Commercial:          
Commercial, financial and industrial  $12,031,432  $-  $-  $11,937,281  $11,937,281  
Commercial real estate  2,033,175  -  -  2,009,820  2,009,820
Consumer:          
Consumer real estate 4,525,136  -  -  4,455,675  4,455,675  
Permanent mortgage 419,511  -  -  410,302  410,302  
Credit card & other  344,976  -  -  345,971  345,971  
Total loans, net of unearned income and allowance for loan losses  19,354,230  -  -  19,159,049  19,159,049  
Short-term financial assets:          
Interest-bearing cash  219,834  219,834  -  -  219,834  
Federal funds sold  27,097  -  27,097  -  27,097  
Securities purchased under agreements to resell  802,815  -  802,815  -  802,815  
Total short-term financial assets1,049,746219,834829,912-1,049,746
Trading securities (a)1,320,535  -  1,317,751  2,784  1,320,535  
Loans held-for-sale 155,215  -  46,681  108,534  155,215  
Securities available-for-sale (a) (b)4,027,594  24,636  3,841,601  161,357  4,027,594  
Securities held-to-maturity14,340  -  -  15,042  15,042  
Derivative assets (a)160,736  11,759  148,977  -  160,736
  
Other assets:  
Tax credit investments  90,824--89,87989,879  
Deferred compensation assets31,89231,892--31,892
Total other assets  122,716  31,892  -  89,879  121,771
Nonearning assets:    
Cash & due from banks  327,639  327,639  -  -  327,639  
Fixed income receivables  91,997  -  91,997  -  91,997  
Accrued interest receivable  64,511  -  64,511  -  64,511  
Total nonearning assets  484,147  327,639  156,508  -  484,147
Total assets  $26,689,259  $615,760  $6,341,430  $19,536,645  $26,493,835
          
Liabilities:    
Deposits:    
Defined maturity$1,325,079  $-  $1,334,178  $-  $1,334,178  
Undefined maturity20,249,101-20,249,101-20,249,101
Total deposits21,574,180  -21,583,279-21,583,279  
Trading liabilities (a)702,226  -  702,226  -  702,226
Short-term financial liabilities:    
Federal funds purchased538,284-538,284-538,284
Securities sold under agreements to repurchase  341,998  -  341,998  -  341,998  
Other short-term borrowings792,736-792,736-792,736
Total short-term financial liabilities  1,673,018  -  1,673,018  -  1,673,018
Term borrowings:    
Real estate investment trust-preferred  46,015  -  -  49,350  49,350  
Term borrowings - new market tax credit investment  18,000  -  -  18,240  18,240  
Borrowings secured by residential real estate26,062--24,75924,759
Other long term borrowings975,574-965,124-965,124
Total term borrowings1,065,651  -  965,124  92,349  1,057,473  
Derivative liabilities (a)144,829  10,924  127,365  6,540  144,829
  
Other noninterest-bearing liabilities:    
Fixed income payables  68,897  -  68,897  -  68,897  
Accrued interest payable  15,376  -  15,376  -  15,376  
Total other noninterest-bearing liabilities84,273  -  84,273  -84,273
Total liabilities$25,244,177  $10,924  $25,135,285  $98,889$25,245,098

  • Classes are detailed in the recurring and nonrecurring measurement tables.
  • Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million.

  September 30, 2015
BookFair Value
(Dollars in thousands)  Value  Level 1  Level 2  Level 3  Total
Assets:          
Loans, net of unearned income and allowance for loan losses          
Commercial:          
Commercial, financial and industrial$9,538,832  $-  $-  $9,473,702  $9,473,702  
Commercial real estate  1,462,696  -  -  1,447,848  1,447,848
Consumer:          
Consumer real estate4,731,464  -  -  4,535,337  4,535,337  
Permanent mortgage443,817  -  -  413,188  413,188  
Credit card & other  337,869  -  -  339,527  339,527  
Total loans, net of unearned income and allowance for loan losses16,514,678  -  -  16,209,602  16,209,602  
Short-term financial assets:          
Interest-bearing cash  596,689  596,689  -  -  596,689  
Federal funds sold64,438-64,438-64,438
Securities purchased under agreements to resell  793,098  -  793,098  -  793,098  
Total short-term financial assets  1,454,225  596,689  857,536  -  1,454,225  
Trading securities (a)1,229,180  -  1,224,577  4,603  1,229,180  
Loans held-for-sale (a)124,308  -  -  124,308  124,308  
Securities available-for-sale (a) (b)3,673,641  25,840  3,489,142  158,659  3,673,641  
Securities held-to-maturity4,313--5,4045,404
Derivative assets (a)152,548  16,335  136,213  -  152,548  
Other assets:          
Tax credit investments  98,341  -  -  58,030  58,030  
Deferred compensation assets  25,972  25,972  -  -  25,972  
Total other assets  124,313  25,972  -  58,030  84,002  
Nonearning assets:          
Cash & due from banks  256,342  256,342  -  -  256,342  
Fixed income receivables  83,547  -  83,547  -  83,547  
Accrued interest receivable  65,956  -  65,956  -  65,956  
Total nonearning assets  405,845  256,342  149,503  -  405,845  
Total assets$23,683,051  $921,178  $5,856,971  $16,560,606  $23,338,755  
          
Liabilities:          
Deposits:          
Defined maturity  $1,033,896  $-  $1,039,007  $-  $1,039,007  
Undefined maturity  17,831,324  -  17,831,324  -  17,831,324  
Total deposits  18,865,220  -  18,870,331  -  18,870,331  
Trading liabilities (a)788,563  -  788,563  -  788,563  
Short-term financial liabilities:          
Federal funds purchased520,992-520,992-520,992
Securities sold under agreements to repurchase  332,329  -  332,329  -  332,329  
Other short-term borrowings  99,887  -  99,887  -  99,887  
Total short-term financial liabilities  953,208  -  953,208  -  953,208  
Term borrowings:          
Real estate investment trust-preferred  45,947  -  -  49,350  49,350  
Term borrowings - new market tax credit investment  18,000  -  -  18,158  18,158  
Borrowings secured by residential real estate  48,491  -  -  41,848  41,848  
Other long term borrowings  1,227,502  -  1,214,410  -  1,214,410  
Total term borrowings1,339,940-1,214,410109,3561,323,766
Derivative liabilities (a)140,965  15,921  120,234  4,810  140,965  
Other noninterest-bearing liabilities:          
Fixed income payables  95,346  -  95,346  -  95,346  
Accrued interest payable  25,358  -  25,358  -  25,358  
Total other noninterest-bearing liabilities  120,704  -  120,704  -  120,704  
Total liabilities  $22,208,600  $15,921  $22,067,450  $114,166  $22,197,537  

Certain previously reported amounts have been reclassified to agree with current presentation.

  • Classes are detailed in the recurring and nonrecurring measurement tables.
  • Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8 million.

Contractual AmountFair Value
(Dollars in thousands)September 30, 2016September 30, 2015September 30, 2016September 30, 2015
Unfunded Commitments:  
Loan commitments$8,012,345  $7,962,431$1,998  $2,694
Standby and other commitments287,499  281,7403,867  4,424