Restructuring, Repositioning, and Efficiency

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring, Repositioning, and Efficiency

In first quarter 2019, FHN initiated a company-wide review of business practices with the goal of optimizing its expense base to improve profitability and create capacity to reinvest savings into technology and revenue production activities. Restructuring, repositioning, and efficiency charges related to these corporate-driven actions were $12.2 million in first quarter 2019 and are included in the corporate segment. Significant expenses recognized in the quarter resulted from the following actions:


•	Severance and other employee costs of $6.5 million primarily related to efficiency initiatives within corporate and bank services functions which are classified as Employee compensation, incentives and benefits within noninterest expense.


•	Expense of $4.3 million largely related to the identification of efficiency opportunities within the organization which is reflected in Professional fees.

Settlement of the obligations arising from current initiatives will be funded from operating cash flows.

Total expense recognized for the three months ended March 31, 2019 is presented in the table below:



Dollars in thousands	Total Expense
Employee compensation, incentives and benefits	$	6,505
Professional fees	4,295
Occupancy	817
Other (a)	535
Total restructuring and repositioning charges	$	12,152


(a)	Primarily relates to costs associated with asset impairments.