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Derivatives (Tables)

12 Months Ended

Dec. 31, 2014

Derivatives Associated With Capital Markets Trading Activities

The following tables summarize FHN’s derivatives associated with capital markets trading activities as of December 31, 2014 and 2013:

	December 31, 2014
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,754,939		$	76,614		$	3,681
Offsetting Upstream Interest Rate Contracts		1,754,939			3,681			76,614
Option Contracts Purchased		15,000			12			-
Forwards and Futures Purchased		884,439			1,383			459
Forwards and Futures Sold		1,175,667			962			1,576

	December 31, 2013
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,786,532		$	76,980		$	11,214
Offsetting Upstream Interest Rate Contracts		1,786,532			11,214			76,980
Option Contracts Purchased		5,000			9			-
Forwards and Futures Purchased		1,278,331			2,489			824
Forwards and Futures Sold		1,445,656			531			3,519

Derivatives Associated With Interest Rate Risk Management Activities

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of and for the years ended December 31, 2014 and 2013:

										Gains/(Losses)
(Dollars in thousands)		Notional		Assets			Liabilities			December 31, 2014
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	664,345		$	26,084	$	430			$	577
	Offsetting Upstream Interest Rate Contracts (a)		664,345			430		26,584				(577)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,654,000		$	24,811	$	3,910			$	(12,126)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,654,000	(c)		$	12,272	(d)


										Gains/(Losses)
(Dollars in thousands)		Notional		Assets			Liabilities			December 31, 2013
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	759,830		$	28,747	$	3,670			$	(30,057)
	Offsetting Upstream Interest Rate Contracts (a)		776,236			3,670		29,247				30,547
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,254,000		$	58,226	$	24,904			$	(61,853)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,254,000	(c)		$	61,853	(d)

Gains/losses included in the Other expense section of the Consolidated Statements of Income.
Gains/losses included in the All other income and commissions section of the Consolidated Statements of Income.
Represents par value of term borrowings being hedged.
Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Schedule Of Derivative Activities Associated With Trust Preferred Loans

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of and for the years ended December 31, 2014 and 2013:

Gains/(Losses)

(Dollars in thousands)

Notional

Assets

Liabilities

December 31, 2014

Loan Portfolio Hedging

Hedging Instruments:

Interest Rate Swaps

6,500

N/A

744

262

Hedged Items:

Trust Preferred Loans (a)

N/A

6,500

(b)

N/A

(259)

(c)

Gains/(Losses)

(Dollars in thousands)

Notional

Assets

Liabilities

December 31, 2013

Loan Portfolio Hedging

Hedging Instruments:

Interest Rate Swaps

6,500

N/A

1,006

1,037

Hedged Items:

Trust Preferred Loans (a)

N/A

6,500

(b)

N/A

(1,032)

(c)

Assets included in the Loans, net of unearned income section of the Consolidated Statements of Condition.
Represents principal balance being hedged.
Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Derivatives Associated With Legacy Mortgage Servicing Activities

The following table summarizes FHN’s derivatives associated with legacy mortgage servicing activities as of and for the year ended December 31, 2013:

										Gains/(Losses)
(Dollars in thousands)		Notional		Assets			Liabilities			December 31, 2013
Retained Interests Hedging
Hedging Instruments:
	Forwards and Futures	$	-		$	-		$	-		$	(3,047)
	Interest Rate Swaps and Swaptions		-			-			-			(4,275)
Hedged Items:
	Mortgage Servicing Rights		N/A		$	70,492			N/A		$	21,591
	Other Retained Interests		N/A			7,195			N/A			3,813

Derivative Assets And Collateral Received


The following table provides a detail of derivative assets and collateral received as presented on the Consolidated Statements of Condition as of December 31:

								Gross amounts not offset in the
								Statement of Condition
			Gross amounts		Net amounts of		Derivative
	Gross amounts		offset in the		assets presented		liabilities
	of recognized		Statement of		in the Statement		available for		Collateral
(Dollars in thousands)	assets		Condition		of Condition (a)		offset		Received		Net amount
Derivative assets:
2014 (b)	$	131,731	$	-	$	131,731	$	(15,768)	$	(114,230)	$	1,733
2013 (b)		178,837		-		178,837		(68,216)		(110,621)		-

Included in Derivative Assets on the Consolidated Statements of Condition. As of December 31, 2014 and 2013, $2.4 million and $3.0 million, respectively, of derivative assets (primarily capital markets forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
2014 and 2013 are comprised entirely of interest rate derivative contracts.

Derivative Liabilities and Collateral Pledged


The following table provides a detail of derivative liabilities and collateral pledged as presented on the Consolidated Statements of Condition as of December 31:

									Gross amounts not offset in the
									Statement of Condition
			Gross amounts			Net amounts of
	Gross amounts		offset in the		liabilities presented			Derivative
	of recognized		Statement of			in the Statement		assets available		Collateral
(Dollars in thousands)	liabilities		Condition			of Condition (a)		for offset		pledged		Net amount
Derivative liabilities:
2014 (b)	$	111,963	$	-		$	111,963	$	(15,768)	$	(78,390)	$	17,805
2013 (b)		147,021		-			147,021		(68,216)		(59,999)		18,806

Included in Derivative Liabilities on the Consolidated Statements of Condition. As of December 31, 2014 and 2013, $7.3 million of derivative liabilities (primarily capital markets forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
2014 and 2013 are comprised entirely of interest rate derivative contracts.