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Derivatives (Tables)
 3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Associated With Fixed Income Trading Activities
The following tables summarize FHN’s derivatives associated with fixed income trading activities as of March 31, 2018 and December 31, 2017:
 
 
 
March 31, 2018
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Customer interest rate contracts
 
$
2,022,577

 
$
12,228

 
$
40,742

Offsetting upstream interest rate contracts
 
2,022,577

 
39,429

 
11,677

Option contracts purchased
 
10,000

 
13

 
—

Forwards and futures purchased
 
6,019,851

 
10,429

 
8,757

Forwards and futures sold
 
6,212,589

 
9,062

 
9,801

 
 
 
December 31, 2017
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Customer interest rate contracts
 
$
2,026,753

 
$
22,097

 
$
18,323

Offsetting upstream interest rate contracts
 
2,026,753

 
17,931

 
20,720

Option contracts purchased
 
20,000

 
15

 
—

Forwards and futures purchased
 
6,257,140

 
4,354

 
5,526

Forwards and futures sold
 
6,292,012

 
5,806

 
4,010
Derivatives Associated With Interest Rate Risk Management Activities
The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of March 31, 2018 and December 31, 2017:
 
 
 
March 31, 2018
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Customer Interest Rate Contracts Hedging 
 
 
 
 
 
 
Hedging Instruments and Hedged Items: 
 
 
 
 
 
 
Customer interest rate contracts
 
$
1,759,979

 
$
6,214

 
$
38,335

Offsetting upstream interest rate contracts
 
1,759,979

 
36,050

 
6,339

Debt Hedging
 
 
 
 
 
 
Hedging Instruments:
 
 
 
 
 
 
Interest rate swaps
 
$
900,000

 
 N/A

 
$
57

Hedged Items:
 
 
 
 
 
 
Term borrowings:
 
 
 
 
 
 
Par
 
N/A

 
N/A

 
$
900,000

Cumulative fair value hedging adjustments
 
N/A

 
N/A

 
(20,023
)
Unamortized premium/(discount) and issuance costs
 
N/A

 
N/A

 
(3,506
)
Total carrying value
 
N/A

 
N/A

 
$
876,471


 
 
December 31, 2017
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Customer Interest Rate Contracts Hedging
 
 
 
 
 
 
Hedging Instruments and Hedged Items: 
 
 
 
 
 
 
Customer interest rate contracts
 
$
1,608,912

 
$
11,644

 
$
19,780

Offsetting upstream interest rate contracts
 
1,608,912

 
18,473

 
11,019

Debt Hedging
 
 
 
 
 
 
Hedging Instruments:
 
 
 
 
 
 
Interest rate swaps
 
$
900,000

 
$
371

 
N/A

Hedged Items:
 
 
 
 
 
 
Term borrowings:
 
 
 
 
 
 
Par
 
N/A

 
N/A

 
$
900,000

Cumulative fair value hedging adjustments
 
N/A

 
N/A

 
(13,472
)
Unamortized premium/(discount) and issuance costs
 
N/A

 
N/A

 
(3,910
)
Total carrying value
 
N/A

 
N/A

 
$
882,618
Gains/(Losses) on Derivatives Associated with Interest Rate Risk Management Activities
The following table summarizes gains/(losses) on FHN’s derivatives associated with interest rate risk management activities for the three months ended March 31, 2018 and 2017:
 
 
Three Months Ended
March 31
 
 
2018
 
2017
(Dollars in thousands)
 
Gains/(Losses)
 
Gains/(Losses)
Customer Interest Rate Contracts Hedging
 
 
Hedging Instruments and Hedged Items:
 
 
 
 
Customer interest rate contracts (a)
 
$
(24,724
)
 
$
(3,276
)
Offsetting upstream interest rate contracts (a)
 
24,724

 
3,276

Debt Hedging
 
 
 
 
Hedging Instruments:
 
 
 
 
Interest rate swaps (b)
 
$
(6,595
)
 
$
(2,800
)
Hedged Items:
 
 
 
 
Term borrowings (b) (c)
 
6,550

 
2,733

 
(a)
Gains/losses included in All other expense within the Consolidated Condensed Statements of Income.
(b)
Gains/losses included in the Interest expense for 2018 and All other expense for 2017 within the Consolidated Condensed Statements of Income.
(c)
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 tables summarize FHN’s derivative activities associated with cash flow hedges as of March 31, 2018 and December 31, 2017:
 
 
 
March 31, 2018
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Cash Flow Hedges 
 
 
 
 
 
 
Hedging Instruments: 
 
 
 
 
 
 
Interest rate swaps
 
$
900,000

 
$
690

 
$
23

Hedged Items:
 
 
 
 
 
 
Variability in cash flows related to debt instruments (primarily loans)
 
N/A

 
$
900,000

 
N/A

 
 
 
December 31, 2017
(Dollars in thousands)
 
Notional
 
Assets
 
Liabilities
Cash Flow Hedges
 
 
 
 
 
 
Hedging Instruments: 
 
 
 
 
 
 
Interest rate swaps
 
$
900,000

 
$
942

 
N/A
Hedged Items:
 
 
 
 
 
 
Variability in cash flows related to debt instruments (primarily loans)
 
N/A

 
$
900,000

 
N/A
Gains/(Losses) on Derivatives Associated with Cash Flow Hedges
The following table summarizes gains/(losses) on FHN’s derivatives associated with cash flow hedges for the three months ended March 31, 2018 and 2017:
 
 
Three Months Ended
March 31
 
 
2018
 
2017
(Dollars in thousands)
 
Gains/(Losses)
 
Gains/(Losses)
Cash Flow Hedges
 
 
Hedging Instruments:
 
 
 
 
Interest rate swaps (a)
 
$
(11,618
)
 
$
(3,101
)
       Gain/(loss) recognized in Other comprehensive income/(loss)
 
(8,844
)
 
(1,062
)
       Gain/(loss) reclassified from AOCI into Interest income
 
(155
)
 
(852
)
 
(a)
Approximately $7.2 million of pre-tax losses are expected to be reclassified into earnings in the next twelve months.
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 March 31, 2018 and December 31, 2017:
 
 
 
 
 
 
 
 
 
Gross amounts not offset in the
Statements of Condition
 
 
(Dollars in thousands)
 
Gross amounts
of recognized
assets
 
Gross amounts
offset in the
Statements of
Condition
 
Net amounts of
assets presented
in the Statements
of Condition (a)
 
Derivative
liabilities
available for
offset
 
Collateral
received
 
Net amount
Derivative assets:
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2018 (b)
 
$
94,611

 
$
—

 
$
94,611

 
$
(11,477
)
 
$
(26,901
)
 
$
56,233

December 31, 2017 (b)
 
71,458

 
—

 
71,458

 
(17,278
)
 
(33,370
)
 
20,810

 
(a)
Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of March 31, 2018 and December 31, 2017, $19.7 million and $10.2 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.
(b)
Amounts 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 March 31, 2018 and December 31, 2017:
 
 
 
 
 
 
 
 
 
Gross amounts not offset in the
Statements of Condition
 
 
(Dollars in thousands)
 
Gross amounts
of recognized
liabilities
 
Gross amounts
offset in the
Statements of
Condition
 
Net amounts of
liabilities presented
in the Statements
of Condition (a)
 
Derivative
assets available
for offset
 
Collateral
pledged
 
Net amount
Derivative liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2018 (b)
 
$
97,173

 
$
—

 
$
97,173

 
$
(11,477
)
 
$
(65,927
)
 
$
19,769

December 31, 2017 (b)
 
69,842

 
—

 
69,842

 
(17,278
)
 
(51,801
)
 
763

 
(a)
Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As of March 31, 2018 and December 31, 2017, $24.2 million and $15.2 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.
(b)
Amounts are comprised entirely of interest rate derivative contracts.