Business Segment Information

12 Months Ended

Dec. 31, 2011

Business Segment Information [Abstract]

Business Segment Information

Note 21 q Business Segment Information

Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses among segments which could change historical segment results. In third quarter 2011, FHN sold First Horizon Msaver, Inc ("Msaver"), the former subsidiary of First Tennessee Bank which provided administrative services for health savings accounts. In first quarter 2011, FHN agreed to sell First Horizon Insurance, Inc. ("FHI"), the former subsidiary of First Tennessee Bank, which provided property and casualty insurance to customers in over 40 states, and Highland Capital Management Corporation ("Highland"), the former subsidiary of First Horizon National Corporation, which provided asset management services. The results of operations for these divested businesses have been included in the Income/(loss) from discontinued operations, net of tax line on the Consolidated Statements of Income for all periods presented. Consistent with historical practice, these businesses were moved to the non-strategic segment with other exited businesses and discontinued products. For comparability, previously reported items have been revised to reflect these changes. The divestiture of Msavers closed in third quarter 2011, and the divestitures of FHI and Highland closed in second quarter 2011.

FHN has four business segments: regional banking, capital markets, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and surrounding markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, cash management, and first lien mortgage originations within the Tennessee footprint. Additionally, the regional banking segment includes correspondent banking which provides credit, depository, and other banking related services to other financial institutions. The capital markets segment consists of fixed income sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists of gains on the extinguishment of debt, unallocated corporate expenses, expense on subordinated debt issuances and preferred stock, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, low income housing investment activities, and various charges related to restructuring, repositioning, and efficiency. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses along with the associated restructuring, repositioning, and efficiency charges.

Total revenue, expense, and asset levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, they are to an extent subjective. This assignment and allocation has been consistently applied for all periods presented. The following table reflects the amounts of consolidated revenue, expense, tax, and assets for each segment for the years ended December 31:

(Dollars in thousands)		2011			2010				2009
Consolidated	Net interest income		$	700,832		$	730,838			$	776,468
	Provision for loan losses			44,000			270,000				880,000
	Noninterest income			786,011			932,725				1,234,397
	Noninterest expense			1,292,995			1,341,810				1,536,813
	Income/(loss) before income taxes			149,848			51,753				(405,948	)
	Provision/(benefit) for income taxes			15,836			(21,182	)			(170,716	)
	Income/(loss) from continuing operations			134,012			72,935				(235,232	)
	Income/(loss) from discontinued operations, net of tax			8,618			(11,332	)			(23,203	)
	Net income/(loss)		$	142,630		$	61,603			$	(258,435	)
	Average assets		$	24,733,627		$	25,677,371			$	28,147,808
	Depreciation and amortization		$	89,321		$	82,500			$	81,407
	Expenditures for long-lived assets			35,408			42,631				21,180

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

(Dollars in thousands)		2011				2010				2009
Regional	Net interest income		$	561,808			$	557,200			$	556,103
Banking	Provision/(provision credit) for loan losses			(61,505	)			92,297				306,168
	Noninterest income			266,227				285,981				308,708
	Noninterest expense			564,862				605,948				645,108
	Income/(loss) before income taxes			324,678				144,936				(86,465	)
	Provision/(benefit) for income taxes			119,461				52,275				(33,147	)
	Net income/(loss)		$	205,217			$	92,661			$	(53,318	)
	Average assets		$	11,407,928			$	11,378,819			$	12,174,724
	Depreciation and amortization		$	52,855			$	44,184			$	40,225
	Expenditures for long-lived assets			24,914				33,296				16,539
Capital Markets	Net interest income		$	22,090			$	21,649			$	15,128
	Noninterest income			355,739				424,170				632,871
	Noninterest expense			320,835				318,188				386,120
	Income before income taxes			56,994				127,631				261,879
	Provision for income taxes			21,608				47,809				98,461
	Net income		$	35,386			$	79,822			$	163,418
	Average assets		$	2,257,841			$	2,115,716			$	2,070,039
	Depreciation and amortization		$	12,802			$	9,740			$	8,832
	Expenditures for long-lived assets			4,465				1,142				541
Corporate	Net interest income/(expense)		$	(4,189	)		$	1,654			$	25,534
	Noninterest income			69,939				64,027				55,881
	Noninterest expense			105,215				70,749				92,717
	Loss before income taxes			(39,465	)			(5,068	)			(11,302	)
	Benefit for income taxes			(51,175	)			(39,973	)			(21,232	)
	Net income		$	11,710			$	34,905			$	9,930
	Average assets		$	5,131,198			$	4,984,730			$	4,764,920
	Depreciation and amortization		$	16,608			$	8,998			$	1,939
	Expenditures for long-lived assets			1,128				4,970				2,036
Non-Strategic	Net interest income		$	121,123			$	150,335			$	179,703
	Provision for loan losses			105,505				177,703				573,832
	Noninterest income			94,106				158,547				236,937
	Noninterest expense			302,083				346,925				412,868
	Loss before income taxes			(192,359	)			(215,746	)			(570,060	)
	Benefit for income taxes			(74,058	)			(81,293	)			(214,798	)
	Loss from continuing operations			(118,301	)			(134,453	)			(355,262	)
	Income/(loss) from discontinued operations, net of tax			8,618				(11,332	)			(23,203	)
	Net loss		$	(109,683	)		$	(145,785	)		$	(378,465	)
	Average assets		$	5,936,660			$	7,198,106			$	9,138,125
	Depreciation and amortization		$	7,056			$	19,578			$	30,411
	Expenditures for long-lived assets			4,901				3,223				2,064

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