Business Segment Information

12 Months Ended

Dec. 31, 2012

Business Segment Information [Abstract]

Business Segment Information

Note 21 – Business Segment Information

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, and cash management. 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, 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, tax credit investment activities, and various charges related to restructuring, repositioning, and efficiency initiatives. 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.

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. Total revenue, expense, and asset levels reflect those which are specifically identifiable or which are allocated based on internal allocation method. Because the allocations are based on internally developed assignments and allocations they are to an extent subjective. Generally, all assignments and allocations have 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)	2012		2011		2010
Consolidated
Net interest income	$	688,667	$	700,832	$	730,838
Provision for loan losses		78,000		44,000		270,000
Noninterest income		671,329		786,011		932,725
Noninterest expense		1,383,701		1,292,995		1,341,810
Income/(loss) before income taxes		(101,705)		149,848		51,753
Provision/(benefit) for income taxes		(85,262)		15,836		(21,182)
Income/(loss) from continuing operations		(16,443)		134,012		72,935
Income/(loss) from discontinued operations, net of tax		148		8,618		(11,332)
Net income/(loss)	$	(16,295)	$	142,630	$	61,603
Average assets	$	25,068,721	$	24,733,626	$	25,677,371
Depreciation and amortization	$	117,972	$	89,321	$	82,500
Expenditures for long-lived assets		21,862		35,408		42,631

(Dollars in thousands)	2012		2011		2010
Regional Banking
Net interest income	$	597,992	$	561,902	$	556,822
Provision/(provision credit) for loan losses		(898)		(61,505)		92,297
Noninterest income		252,691		266,828		286,669
Noninterest expense		567,581		564,920		606,152
Income/(loss) before income taxes		284,000		325,315		145,042
Provision/(benefit) for income taxes		103,066		119,706		52,315
Net income/(loss)	$	180,934	$	205,609	$	92,727
Average assets	$	12,656,612	$	11,456,329	$	11,423,745
Depreciation and amortization	$	71,815	$	52,830	$	44,201
Expenditures for long-lived assets		17,054		24,912		33,369

Capital Markets
Net interest income	$	20,308	$	22,090	$	21,649
Noninterest income		334,979		355,739		424,170
Noninterest expense		263,308		320,835		318,188
Income/(loss) before income taxes		91,979		56,994		127,631
Provision/(benefit) for income taxes		34,750		21,608		47,809
Net income/(loss)	$	57,229	$	35,386	$	79,822
Average assets	$	2,311,463	$	2,257,841	$	2,115,716
Depreciation and amortization	$	20,483	$	12,777	$	9,740
Expenditures for long-lived assets		1,837		4,465		1,142

Corporate
Net interest income/(expense)	$	(23,564)	$	(6,472)	$	(354)
Noninterest income		27,056		69,338		63,339
Noninterest expense		101,312		105,164		70,181
Income/(loss) before income taxes		(97,820)		(42,298)		(7,196)
Provision/(benefit) for income taxes		(76,831)		(52,264)		(40,774)
Net income/(loss)	$	(20,989)	$	9,966	$	33,578
Average assets	$	5,224,744	$	5,131,104	$	4,984,252
Depreciation and amortization	$	21,353	$	16,647	$	9,042
Expenditures for long-lived assets		2,453		1,134		4,979

Non-Strategic
Net interest income	$	93,931	$	123,312	$	152,721
Provision for loan losses		78,898		105,505		177,703
Noninterest income		56,603		94,106		158,547
Noninterest expense		451,500		302,076		347,289
Income/(loss) before income taxes		(379,864)		(190,163)		(213,724)
Provision/(benefit) for income taxes		(146,247)		(73,214)		(80,532)
Income/(loss) from continuing operations		(233,617)		(116,949)		(133,192)
Income/(loss) from discontinued operations, net of tax		148		8,618		(11,332)
Net income/(loss)	$	(233,469)	$	(108,331)	$	(144,524)
Average assets	$	4,875,902	$	5,888,352	$	7,153,658
Depreciation and amortization	$	4,321	$	7,067	$	19,517
Expenditures for long-lived assets		518		4,897		3,141

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