Business Segment Information

12 Months Ended

Dec. 31, 2015

Business Segment Information [Abstract]

Business Segment Information

Note 20 – Business Segment Information

FHN has four business segments: regional banking, fixed income, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customersin Tennessee and other selected 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 nationally. The fixed income 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 ofunallocated 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, gains on the extinguishment of debt, acquisition-related costs, 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 (in periods subsequent to first quarter 2014 these amounts are significantly lower), 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 and equity 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 an 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)		2015		2014		2013
Consolidated	Net interest income	$	653,720	$	627,718	$	637,374
	Provision for loan losses		9,000		27,000		55,000
	Noninterest income		517,325		550,044		584,577
	Noninterest expense		1,053,791		832,531		1,148,519
	Income/(loss) before income taxes		108,254		318,231		18,432
	Provision/(benefit) for income taxes		10,941		84,185		(19,389)
	Income/(loss) from continuing operations		97,313		234,046		37,821
	Income/(loss) from discontinued operations, net of tax		-		-		548
	Net income/(loss)	$	97,313	$	234,046	$	38,369
	Average assets	$	25,638,265	$	23,994,836	$	24,402,338
	Depreciation and amortization	$	60,743	$	56,894	$	71,613
	Expenditures for long-lived assets		43,514		38,880		41,463

(Dollars in thousands)		2015		2014		2013
Regional Banking	Net interest income	$	655,180	$	602,126	$	591,351
	Provision for loan losses		34,545		29,187		18,460
	Noninterest income		251,616		254,705		247,717
	Noninterest expense		563,535		538,988		529,396
	Income/(loss) before income taxes		308,716		288,656		291,212
	Provision/(benefit) for income taxes		110,232		102,771		104,915
	Net income/(loss)	$	198,484	$	185,885	$	186,297
	Average assets	$	14,934,440	$	13,273,565	$	12,875,630
	Depreciation and amortization	$	40,056	$	38,008	$	46,552
	Expenditures for long-lived assets		37,578		30,697		34,014

Fixed Income	Net interest income	$	15,534	$	12,688	$	16,187
	Noninterest income		231,311		202,725		268,436
	Noninterest expense		220,210		146,847		232,429
	Income/(loss) before income taxes		26,635		68,566		52,194
	Provision/(benefit) for income taxes		8,981		25,741		19,618
	Net income/(loss)	$	17,654	$	42,825	$	32,576
	Average assets	$	2,368,900	$	2,069,472	$	2,255,852
	Depreciation and amortization	$	5,735	$	6,233	$	8,837
	Expenditures for long-lived assets		1,640		1,358		3,995

Corporate	Net interest income/(expense)	$	(71,727)	$	(54,175)	$	(46,178)
	Noninterest income		23,330		26,969		26,055
	Noninterest expense		56,906		61,387		64,865
	Income/(loss) before income taxes		(105,303)		(88,593)		(84,988)
	Provision/(benefit) for income taxes		(79,891)		(63,526)		(51,582)
	Net income/(loss)	$	(25,412)	$	(25,067)	$	(33,406)
	Average assets	$	6,003,080	$	5,588,328	$	5,186,034
	Depreciation and amortization	$	13,987	$	10,929	$	13,975
	Expenditures for long-lived assets		3,848		6,268		1,798

Non-Strategic	Net interest income	$	54,733	$	67,079	$	76,014
	Provision/(provision credit) for loan losses		(25,545)		(2,187)		36,540
	Noninterest income		11,068		65,645		42,369
	Noninterest expense		213,140		85,309		321,829
	Income/(loss) before income taxes		(121,794)		49,602		(239,986)
	Provision/(benefit) for income taxes		(28,381)		19,199		(92,340)
	Income/(loss) from continuing operations		(93,413)		30,403		(147,646)
	Income/(loss) from discontinued operations, net of tax		-		-		548
	Net income/(loss)	$	(93,413)	$	30,403	$	(147,098)
	Average assets	$	2,331,845	$	3,063,471	$	4,084,822
	Depreciation and amortization	$	965	$	1,724	$	2,249
	Expenditures for long-lived assets		448		557		1,656
Certain previously reported amounts have been reclassified to agree with current presentation.