Business Segment Information

12 Months Ended

Dec. 31, 2016

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 consumer and commercial customersin Tennessee and other selected markets. Regional banking also 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 securities sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, 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, derivative valuation adjustments related to prior sales of Visa Class B shares, and acquisition-related costs. 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.

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. Business segment revenue, expense, asset, and equity 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, to an extent they are 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 average assets, as well as, depreciation and amortization expense and expenditures for long lived assets for each segment for the years ended December 31:

(Dollars in thousands)		2016		2015		2014
Consolidated	Net interest income	$	729,084	$	653,720	$	627,718
	Provision for loan losses		11,000		9,000		27,000
	Noninterest income		552,441		517,325		550,044
	Noninterest expense		925,204		1,053,791		832,531
	Income/(loss) before income taxes		345,321		108,254		318,231
	Provision/(benefit) for income taxes		106,810		10,941		84,185
	Net income/(loss)	$	238,511	$	97,313	$	234,046
	Average assets	$	27,427,227	$	25,635,975	$	23,993,017
	Depreciation and amortization	$	64,673	$	60,743	$	56,894
	Expenditures for long-lived assets		62,554		43,514		38,880
Certain previously reported amounts have been revised to reflect the retroactive effect of the adoption of ASU 2015-03,"Simplifying the Presentation of Debt Issuance Costs." See Note 1-Summary of Significant Accounting Policies for additional information.

(Dollars in thousands)		2016		2015		2014
Regional Banking	Net interest income	$	741,863	$	655,164	$	602,204
	Provision for loan losses		38,886		34,545		29,187
	Noninterest income		249,003		251,586		254,667
	Noninterest expense		615,530		562,572		537,129
	Income/(loss) before income taxes		336,450		309,633		290,555
	Provision/(benefit) for income taxes		120,360		110,589		103,503
	Net income/(loss)	$	216,090	$	199,044	$	187,052
	Average assets	$	17,143,540	$	14,932,077	$	13,269,663
	Depreciation and amortization	$	39,243	$	37,993	$	35,583
	Expenditures for long-lived assets		51,354		37,367		30,617

Fixed Income	Net interest income	$	10,766	$	15,517	$	12,664
	Noninterest income		269,339		231,314		202,726
	Noninterest expense		229,863		220,441		147,030
	Income/(loss) before income taxes		50,242		26,390		68,360
	Provision/(benefit) for income taxes		17,959		8,885		25,661
	Net income/(loss)	$	32,283	$	17,505	$	42,699
	Average assets	$	2,365,640	$	2,370,334	$	2,070,401
	Depreciation and amortization	$	5,977	$	6,108	$	6,422
	Expenditures for long-lived assets		2,099		1,706		1,358

Corporate	Net interest income/(expense)	$	(65,912)	$	(71,688)	$	(53,970)
	Noninterest income		20,436		23,331		26,969
	Noninterest expense		58,914		57,943		62,330
	Income/(loss) before income taxes		(104,390)		(106,300)		(89,331)
	Provision/(benefit) for income taxes		(55,924)		(80,276)		(63,810)
	Net income/(loss)	$	(48,466)	$	(26,024)	$	(25,521)
	Average assets	$	6,030,123	$	6,000,978	$	5,586,935
	Depreciation and amortization	$	18,989	$	16,054	$	13,093
	Expenditures for long-lived assets		8,946		3,971		6,348

Non-Strategic	Net interest income	$	42,367	$	54,727	$	66,820
	Provision/(provision credit) for loan losses		(27,886)		(25,545)		(2,187)
	Noninterest income		13,663		11,094		65,682
	Noninterest expense		20,897		212,835		86,042
	Income/(loss) before income taxes		63,019		(121,469)		48,647
	Provision/(benefit) for income taxes		24,415		(28,257)		18,831
	Net income/(loss)	$	38,604	$	(93,212)	$	29,816
	Average assets	$	1,887,924	$	2,332,586	$	3,066,018
	Depreciation and amortization	$	464	$	588	$	1,796
	Expenditures for long-lived assets		155		470		557
Certain previously reported amounts have been reclassified to agree with current presentation.