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Fair Value Of Assets And Liabilities (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Of Assets And Liabilities [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis
Recurring Fair Value Measurements
The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015:
December 31, 2015
(Dollars in thousands)Level 1  Level 2  Level 3  Total
Trading securities - fixed income:      
U.S. treasuries$-  $64,483  $-  $64,483  
Government agency issued MBS-  258,899  -  258,899  
Government agency issued CMO-  99,260  -  99,260  
Other U.S. government agencies-  83,740  -  83,740  
States and municipalities-  32,729  -  32,729  
Corporate and other debt-  331,709  5  331,714  
Equity, mutual funds, and other-  6,253  -  6,253  
Total trading securities - fixed income -  877,073  5  877,078  
Trading securities - mortgage banking-  -  4,372  4,372
Loans held-for-sale-  -  27,418  27,418  
Securities available-for-sale:      
U.S. treasuries-  100  -  100  
Government agency issued MBS-  1,573,611  -  1,573,611  
Government agency issued CMO-  2,169,683  -  2,169,683  
Other U.S. government agencies-  102  -  102  
States and municipalities-  -  1,500  1,500  
Equity, mutual funds, and other26,434  -  -  26,434  
Total securities available-for-sale26,434  3,743,496  1,500  3,771,430  
Other assets:      
Mortgage servicing rights--1,8411,841
Deferred compensation assets29,399  -  -  29,399  
Derivatives, forwards and futures4,361  -  -  4,361  
Derivatives, interest rate contracts -  99,855  -  99,855  
Derivatives, other-149-149
Total other assets33,760  100,004  1,841  135,605  
Total assets$60,194  $4,720,573  $35,136  $4,815,903  
Trading liabilities - fixed income:      
U.S. treasuries$-  $284,275  $-  $284,275  
Corporate and other debt-  281,744  -  281,744  
Total trading liabilities - fixed income-  566,019  -  566,019  
Other liabilities:  
Derivatives, forwards and futures3,527  -  -  3,527  
Derivatives, interest rate contracts -  100,002  -  100,002  
Derivatives, other-  -  4,8104,810
Total other liabilities3,527100,0024,810108,339
Total liabilities$3,527  $666,021  $4,810  $674,358  

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of December 31, 2014:
  December 31, 2014
(Dollars in thousands)Level 1  Level 2  Level 3  Total
Trading securities - fixed income:      
U.S. treasuries$-  $115,908  $-  $115,908
Government agency issued MBS-  330,443  -  330,443
Government agency issued CMO-  188,632  -  188,632
Other U.S. government agencies-  127,263  -  127,263
States and municipalities-  54,647  -  54,647
Trading Loans-15,088-15,088
Corporate and other debt-  354,178  5  354,183
Equity, mutual funds, and other-  2,590  -2,590
Total trading securities - fixed income -  1,188,749  5  1,188,754
Trading securities - mortgage banking-  -  5,637  5,637
Loans held-for-sale-  -  27,910  27,910
Securities available-for-sale:      
U.S. treasuries-  100  -  100
Government agency issued MBS-  751,165  -  751,165
Government agency issued CMO-  2,611,266  -  2,611,266
Other U.S. government agencies-  -  1,807  1,807
States and municipalities-  8,705  1,500  10,205
Equity, mutual funds, and other26,264  -  -  26,264
Total securities available-for-sale26,264  3,371,236  3,307  3,400,807
Other assets:
Mortgage servicing rights-  -  2,517  2,517
Deferred compensation assets25,665  -  -  25,665
Derivatives, forwards and futures2,345  -  -  2,345
Derivatives, interest rate contracts-  131,631  -  131,631
Derivatives, other-112-112
Total other assets28,010  131,743  2,517  162,270
Total assets$54,274  $4,691,728  $39,376  $4,785,378
Trading liabilities - fixed income:      
U.S. treasuries$-  $286,016  $-  $286,016
Other U.S. government agencies-1,958-1,958
Corporate and other debt-306,340-306,340
Total trading liabilities - fixed income-  594,314  -  594,314
Other liabilities:
Derivatives, forwards and futures2,035  -  -  2,035
Derivatives, interest rate contracts-  111,964  -  111,964
Derivatives, other-  -  5,240  5,240
Total other liabilities2,035  111,964  5,240  119,239
Total liabilities$2,035  $706,278  $5,240  $713,553
Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value
Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the years ended December 31, 2015, 2014, and 2013, on a recurring basis are summarized as follows:
  Year Ended December 31, 2015
SecuritiesMortgage
  TradingLoans held-available-servicingNet derivative
(Dollars in thousands)securitiesfor-salefor-salerights, netliabilities
Balance on January 1, 2015$5,642  $27,910  $3,307$2,517  $(5,240)
Total net gains/(losses) included in:
  Net income369  2,765  (47)-  (775)
  Other comprehensive income / (loss)-  -  --  -  
Purchases-  3,116  --  -  
Issuances-  -  --  -  
Sales-  -  (1,760)-  -  
Settlements(1,634)(4,462)-(676)1,205  
Net transfers into/(out of) Level 3-  (1,911) (b)  --  -  
Balance on December 31, 2015$4,377  $27,418  $1,500$1,841  $(4,810)
Net unrealized gains/(losses) included in net income$369 (a)  $2,765 (a)  $-$-$(775) (c)

Year Ended December 31, 2014
Securities available-for-saleMortgage
TradingLoans held-Investment VentureservicingNet derivative
(Dollars in thousands)securitiesfor-saleportfolio Capitalrights, netliabilities
Balance on January 1, 2014$7,200  $230,456  $3,826$4,300$72,793  $(2,915)
Total net gains/(losses) included in:
Net income149  52,494-(2,995)1,248  (5,981)
Other comprehensive income /(loss)-  -  (64)--  -  
Purchases1,559  5,654  ---  -  
Issuances-  -  ---  -  
Sales(1,715)  (236,975)  -(5)(70,204)  -  
Settlements(1,551)(19,806)(455)(1,300)(1,320)3,656  
Net transfers into/(out of) Level 3 -  (3,913) (b)---  -  
Balance on December 31, 2014$5,642  $27,910  $3,307$-$2,517  $(5,240)
Net unrealized gains/(losses) included in net income$225 (a)$1,991 (a)$-$-$43 (a)$(5,981) (c)

Year Ended December 31, 2013
Securities available-for-saleMortgageOther
TradingLoans held-InvestmentVentureservicing Net derivativeshort-term
(Dollars in thousands)securitiesfor-saleportfoliocapitalrights, netliabilitiesborrowings
Balance on January 1, 2013$17,992$221,094$5,253$4,300$114,311$(2,175)$(11,156)
Total net gains/(losses) included in:
Net income5,028(4,387)--20,182(2,013)(3)
Other comprehensive income/(loss)--(114)----
Purchases-69,929-----
Issuances-------
Sales(7,784)---(39,633)-11,159
Settlements(8,036)(40,369)(1,313)-(22,067)1,273-
Net transfers into/(out of) Level 3 -(15,811) (b)-----
Balance on December 31, 2013$7,200$230,456$3,826$4,300$72,793$(2,915)$-
Net unrealized gains/(losses) included in net income$1,237 (a)$(4,387) (a)$-$-$17,394 (a)$2,013 (c)$-

  • Primarily included in mortgage banking income on the Consolidated Statements of Income.
  • Transfers out of recurring loans held-for-sale level 3 balances reflect movements out of loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
  • Included in Other expense.

Nonrecurring Fair Value Measurements

Nonrecurring Fair Value Measurements

From time to time, FHN may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of LOCOM accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheet at December 31, 2015, 2014, and 2013, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment, the related carrying value, and the fair value adjustments recorded during the respective periods.

Year Ended
Carrying value at December 31, 2015December 31, 2015
(Dollars in thousands)Level 1Level 2Level 3TotalNet gains/(losses)
Loans held-for-sale - first mortgages--72972957
Loans, net of unearned income (a)--27,02627,0264,087
Real estate acquired by foreclosure (b)--24,97724,977(2,868)
Other assets (c)--24,57724,577(4,582)
$(3,306)
Year Ended
Carrying value at December 31, 2014December 31, 2014
(Dollars in thousands)Level 1Level 2Level 3TotalNet gains/(losses)
Loans held-for-sale - SBAs$-$3,322$-$3,322$46
Loans held-for-sale - first mortgages--846846(470)
Loans, net of unearned income (a)--40,53140,531(801)
Real estate acquired by foreclosure (b)--30,43030,430(3,465)
Other assets (c)--28,66028,660(2,087)
$(6,777)
Year Ended
Carrying value at December 31, 2013December 31, 2013
(Dollars in thousands)Level 1Level 2Level 3TotalNet gains/(losses)
Loans held-for-sale - SBAs$-$6,185$-$6,185$(122)
Loans held-for-sale - first mortgages--9,4579,457139
Loans, net of unearned income (a)--62,83962,839(3,109)
Real estate acquired by foreclosure (b)--45,75345,753(4,987)
Other assets (c)--30,81030,810(2,021)
$(10,100)
Certain previously reported amounts have been reclassified to agree with current presentation.

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses. Gains in 2015 are due to recoveries of previously charged-off amounts.
  • Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.
Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements
Level 3 Measurements
The following tables provide information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of December 31, 2015 and 2014:
(Dollars in Thousands)
Fair Value at
Level 3 ClassDecember 31, 2015Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage$4,372Discounted cash flowPrepayment speeds 42% - 43%
Discount rate6% - 63%
Loans held-for-sale - residential real estate28,147Discounted cash flowPrepayment speeds - First mortgage2% - 20%
Prepayment speeds - HELOC3% - 15%
Foreclosure losses45% - 55%
Loss severity trends - First mortgage10% - 70% of UPB
Loss severity trends - HELOC35% - 100% of UPB
Draw rate - HELOC2% - 12%
Derivative liabilities, other4,810Discounted cash flowVisa covered litigation resolution amount$4.4 billion - $5.4 billion
Probability of resolution scenarios5% - 25%
Time until resolution6 - 42 months
Loans, net of unearned income (a)27,026Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 10% of appraisal
Other collateral valuationsBorrowing base certificates adjustment20% - 50% of gross value
Financial Statements/Auction values adjustment0% - 25% of reported value
Real estate acquired by foreclosure (b)24,977Appraisals from comparable propertiesAdjustment for value changes since appraisal0% - 10% of appraisal
Other assets (c)24,577Discounted cash flowAdjustments to current sales yields for specific properties0% - 15% adjustment to yield
Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 25% of appraisal

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
  • Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.

(Dollars in Thousands)
Fair Value at
Level 3 ClassDecember 31, 2014Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage$5,637Discounted cash flowPrepayment speeds41% - 46%
Discount rate8% - 56%
Loans held-for-sale - residential real estate28,756Discounted cash flowPrepayment speeds - First mortgage2% - 12%
Prepayment speeds - HELOC5% - 15%
Foreclosure Losses50% - 60%
Loss severity trends - First mortgage10% - 70% of UPB
Loss severity trends - HELOC45% - 100% of UPB
Draw Rate - HELOC5% - 12%
Derivative liabilities, other5,240Discounted cash flowVisa covered litigation resolution amount$4.8 billion - $5.6 billion
Probability of resolution scenarios10% - 30%
Time until resolution12 - 48 months
Loans, net of unearned income (a)40,531Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 10% of appraisal
Other collateral valuationsBorrowing base certificates adjustment20% - 50% of gross value
Financial Statements/Auction Values adjustment0% - 25% of reported value
Real estate acquired by foreclosure (b)30,430Appraisals from comparable propertiesAdjustment for value changes since appraisal0% - 10% of appraisal
Other assets (c)28,660Discounted cash flowAdjustments to current sales yields for specific properties0% - 15% adjustment to yield
Appraisals from comparable propertiesMarketability adjustments for specific properties0% - 25% of appraisal

  • Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
  • Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
  • Represents tax credit investments accounted for under the equity method.
Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount
The following tables reflect the differences between the fair value carrying amount of residential real estate loans held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
December 31, 2015
(Dollars in thousands)Fair value carrying amountAggregate unpaid principalFair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:    
Total loans$27,418  $41,881  $(14,463)
Nonaccrual loans7,702  14,807  (7,105)
Loans 90 days or more past due and still accruing2,181  3,004  (823)
December 31, 2014
(Dollars in thousands)Fair value carrying amountAggregate unpaid principalFair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:    
Total loans$27,910  $43,822  $(15,912)
Nonaccrual loans7,430  14,316  (6,886)
Loans 90 days or more past due and still accruing2,587  4,000  (1,413)
Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings
Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:
Year Ended
December 31
(Dollars in thousands)201520142013
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held-for-sale$2,765$52,494$(4,387)
Other short-term borrowings--(3)
Summary Of Book Value And Estimated Fair Value Of Financial Instruments

The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Statements of Condition as well as unfunded loan commitments and stand by and other commitments as of December 31, 2015 and 2014.

  December 31, 2015
BookFair Value
(Dollars in thousands)  Value  Level 1  Level 2  Level 3  Total
Assets:          
Loans, net of unearned income and allowance for loan losses          
Commercial:          
Commercial, financial and industrial  $10,362,753  $-  $-  $10,280,766  $10,280,766  
Commercial real estate  1,649,776  -  -  1,619,795  1,619,795
Retail:          
Consumer real estate 4,685,904  -  -  4,546,018  4,546,018  
Permanent mortgage 435,176  -  -  400,970  400,970  
Credit card & other  342,651  -  -  344,892  344,892  
Total loans, net of unearned income and allowance for loan losses  17,476,260  -  -  17,192,441  17,192,441  
Short-term financial assets:          
Interest-bearing cash  602,836  602,836  -  -  602,836  
Federal funds sold  114,479  -  114,479  -  114,479  
Securities purchased under agreements to resell  615,773  -  615,773  -  615,773  
Total short-term financial assets1,333,088602,836730,252-1,333,088
Trading securities (a)881,450  -  877,073  4,377  881,450  
Loans held-for-sale 126,342  -  6,616  119,726  126,342  
Securities available-for-sale (a) (b)3,929,846  26,434  3,743,496  159,916  3,929,846  
Securities held-to-maturity14,320  -  -  15,349  15,349  
Derivative assets (a)104,365  4,361  100,004  -  104,365
  
Other assets:  
Tax credit investments  91,507--55,40655,406  
Deferred compensation assets29,39929,399--29,399
Total other assets  120,906  29,399  -  55,406  84,805
Nonearning assets:    
Cash & due from banks  300,811  300,811  -  -  300,811  
Fixed income receivables  63,660  -  63,660  -  63,660  
Accrued interest receivable  62,497  -  62,497  -  62,497  
Total nonearning assets  426,968  300,811  126,157  -  426,968
Total assets  $24,413,545  $963,841  $5,583,598  $17,547,215  $24,094,654
          
Liabilities:    
Deposits:    
Defined maturity$1,231,876  $-  $1,238,044  $-  $1,238,044  
Undefined maturity18,735,602-18,735,602-18,735,602
Total deposits19,967,478  -19,973,646-19,973,646  
Trading liabilities (a)566,019  -  566,019  -  566,019
Short-term financial liabilities:    
Federal funds purchased464,166-464,166-464,166
Securities sold under agreements to repurchase  338,133  -  338,133  -  338,133  
Other short-term borrowings137,861-137,861-137,861
Total short-term financial liabilities  940,160  -  940,160  -  940,160
Term borrowings:    
Real estate investment trust-preferred  45,964  -  -  49,350  49,350  
Term borrowings - new market tax credit investment  18,000  -  -  17,972  17,972  
Borrowings secured by residential real estate41,100--35,46935,469
Other long term borrowings1,210,112-1,193,482-1,193,482
Total term borrowings1,315,176  -  1,193,482  102,791  1,296,273  
Derivative liabilities (a)108,339  3,527  100,002  4,810  108,339
  
Other noninterest-bearing liabilities:    
Fixed income payables  23,072  -  23,072  -  23,072  
Accrued interest payable  14,871  -  14,871  -  14,871  
Total other noninterest-bearing liabilities37,943  -  37,943  -37,943
Total liabilities$22,935,115  $3,527  $22,811,252  $107,601$22,922,380

  • Classes are detailed in the recurring and nonrecurring measurement tables.
  • Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8 million.

  December 31, 2014
BookFair Value
(Dollars in thousands)  Value  Level 1  Level 2  Level 3  Total
Assets:          
Loans, net of unearned income and allowance for loan losses          
Commercial:          
Commercial, financial and industrial$8,940,275  $-  $-  $8,902,045  $8,902,045  
Commercial real estate  1,259,143  -  -  1,243,404  1,243,404
Retail:          
Consumer real estate4,935,060  -  -  4,747,761  4,747,761  
Permanent mortgage519,839  -  -  483,179  483,179  
Credit card & other  343,401  -  -  345,198  345,198  
Total loans, net of unearned income and allowance for loan losses15,997,718  -  -  15,721,587  15,721,587  
Short-term financial assets          
Interest-bearing cash  1,621,967  1,621,967  -  -  1,621,967  
Federal funds sold63,080-63,080-63,080
Securities purchased under agreements to resell  659,154  -  659,154  -  659,154  
Total short-term financial assets  2,344,201  1,621,967  722,234  -  2,344,201  
Trading securities (a)1,194,391  -  1,188,749  5,642  1,194,391  
Loans held-for-sale (a)141,285  -  3,322  137,963  141,285  
Securities available-for-sale (a) (b)3,556,613  26,264  3,371,236  159,113  3,556,613  
Securities held-to-maturity4,292--5,4045,404
Derivative assets (a)134,088  2,345  131,743  -  134,088  
Other assets          
Tax credit investments  82,907  -  -  65,314  65,314  
Deferred compensation assets  25,665  25,665  -  -  25,665  
Total other assets  108,572  25,665  -  65,314  90,979  
Nonearning assets          
Cash & due from banks  349,171  349,171  -  -  349,171  
Fixed income receivables  42,488  -  42,488  -  42,488  
Accrued interest receivable  67,301  -  67,301  -  67,301  
Total nonearning assets  458,960  349,171  109,789  -  458,960  
Total assets$23,940,120  $2,025,412  $5,527,073  $16,095,023  $23,647,508  
          
Liabilities:          
Deposits:          
Defined maturity  $1,276,938  $-  $1,282,833  $-  $1,282,833  
Undefined maturity  16,792,001  -  16,792,001  -  16,792,001  
Total deposits  18,068,939  -  18,074,834  -  18,074,834  
Trading liabilities (a)594,314  -  594,314  -  594,314  
Short-term financial liabilities          
Federal funds purchased1,037,052-1,037,052-1,037,052
Securities sold under agreements to repurchase  562,214  -  562,214  -  562,214  
Other short-term borrowings  157,218  -  157,218  -  157,218  
Total short-term financial liabilities  1,756,484  -  1,756,484  -  1,756,484  
Term borrowings          
Real estate investment trust-preferred  45,896  -  -  49,350  49,350  
Term borrowings - new market tax credit investment  18,000  -  -  18,049  18,049  
Borrowings secured by residential real estate  65,612  -  -  56,623  56,623  
Other long term borrowings  1,750,597  -  1,730,061  -  1,730,061  
Total term borrowings1,880,105-1,730,061124,0221,854,083
Derivative liabilities (a)119,239  2,035  111,964  5,240  119,239  
Other noninterest-bearing liabilities          
Fixed income payables  18,157  -  18,157  -  18,157  
Accrued interest payable  23,995  -  23,995  -  23,995  
Total other noninterest-bearing liabilities  42,152  -  42,152  -  42,152  
Total liabilities  $22,461,233  $2,035  $22,309,809  $129,262  $22,441,106  

  • Classes are detailed in the recurring and nonrecurring measurement tables.
  • Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $66.0 million.

Contractual AmountFair Value
(Dollars in thousands)December 31, 2015December 31, 2014December 31, 2015December 31, 2014
Unfunded Commitments:  
Loan commitments$7,903,294  $7,231,879$2,748  $2,358
Standby and other commitments279,272  331,8774,421  4,451