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Fair Value Of Assets And Liabilities (Tables)
 12 Months Ended
Dec. 31, 2016
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, 2016:
December 31, 2016
(Dollars in thousands)Level 1  Level 2  Level 3  Total
Trading securities - fixed income:      
U.S. treasuries$-  $146,988  $-  $146,988  
Government agency issued MBS-  256,611  -  256,611  
Government agency issued CMO-  150,058  -  150,058  
Other U.S. government agencies-  52,314  -  52,314  
States and municipalities-  60,351  -  60,351  
Corporate and other debt-  227,934  5  227,939  
Equity, mutual funds, and other-  242  -  242  
Total trading securities - fixed income -  894,498  5  894,503  
Trading securities - mortgage banking-  -  2,568  2,568
Loans held-for-sale-  2,345  21,924  24,269  
Securities available-for-sale:      
U.S. treasuries-  100  -  100  
Government agency issued MBS-  2,208,687  -  2,208,687  
Government agency issued CMO-  1,547,958  -  1,547,958  
Equity, mutual funds, and other25,249  -  -  25,249  
Total securities available-for-sale25,249  3,756,745  -  3,781,994  
Other assets:      
Mortgage servicing rights--985985
Deferred compensation assets32,840  -  -  32,840  
Derivatives, forwards and futures33,587  -  -  33,587  
Derivatives, interest rate contracts -  88,025  -  88,025  
Derivatives, other-42-42
Total other assets66,427  88,067  985  155,479  
Total assets$91,676  $4,741,655  $25,482  $4,858,813  
Trading liabilities - fixed income:      
U.S. treasuries$-  $381,229  $-  $381,229  
Other U.S. government agencies-  844  -  844  
Corporate and other debt-  179,775  -  179,775  
Total trading liabilities - fixed income-  561,848  -  561,848  
Other liabilities:  
Derivatives, forwards and futures33,274  -  -  33,274  
Derivatives, interest rate contracts -  96,371  -  96,371  
Derivatives, other-  7  6,2456,252
Total other liabilities33,27496,3786,245135,897
Total liabilities$33,274  $658,226  $6,245  $697,745  

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-  -  1,841  1,841
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-  -  4,810  4,810
Total other liabilities3,527  100,002  4,810  108,339
Total liabilities$3,527  $666,021  $4,810  $674,358
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, 2016, 2015, and 2014, on a recurring basis are summarized as follows:
  Year Ended December 31, 2016
SecuritiesMortgage
  TradingLoans held-available-servicingNet derivative
(Dollars in thousands)securitiesfor-salefor-salerights, netliabilities
Balance on January 1, 2016$4,377  $27,418  $1,500$1,841  $(4,810)
Total net gains/(losses) included in:
  Net income604  3,380  -31  (2,634)
Purchases-  706  --  -  
Sales-  -  -(205)  -  
Settlements(2,408)(6,264)(1,500)(682)1,199  
Net transfers into/(out of) Level 3-  (3,316) (b)  --  -  
Balance on December 31, 2016$2,573  $21,924  $-$985  $(6,245)
Net unrealized gains/(losses) included in net income$159 (a)  $3,380 (a)  $-$-$(2,634) (c)

Year Ended Decmber 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)  
Purchases-  3,116  ---  
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-InvestmentVentureservicing Net derivative
(Dollars in thousands)securitiesfor-saleportfoliocapitalrights, 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 income14952,494-(2,995)1,248(5,981)
Other comprehensive income/(loss)--(64)---
Purchases1,5595,654----
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)

  • Primarily included in mortgage banking income on the Consolidated Statements of Income.
  • Transfers out of recurring loans held-for-sale level 3 balances generally reflect movements out of recurring 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, 2016, 2015, and 2014, 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, 2016December 31, 2016
(Dollars in thousands)Level 1Level 2Level 3TotalNet gains/(losses)
Loans held-for-sale - SBAs$-$4,286$-$4,286$(1)
Loans held-for-sale - first mortgages--63863875
Loans, net of unearned income (a)--31,07031,070(2,055)
Real estate acquired by foreclosure (b)--11,23511,235(2,041)
Other assets (c)--29,60929,609(3,349)
$(7,371)
Year Ended
Carrying value at December 31, 2015December 31, 2015
(Dollars in thousands)Level 1Level 2Level 3TotalNet gains/(losses)
Loans held-for-sale - first mortgages$-$-$729$72957
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)

  • 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, 2016 and 2015:
(Dollars in Thousands)
Fair Value at
Level 3 ClassDecember 31, 2016Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage$2,568Discounted cash flowPrepayment speeds 22% - 41%
Discount rate29% - 50%
Loans held-for-sale - residential real estate22,562Discounted cash flowPrepayment speeds - First mortgage2% - 13%
Prepayment speeds - HELOC3% - 15%
Foreclosure losses50% - 70%
Loss severity trends - First mortgage5% - 50% of UPB
Loss severity trends - HELOC15% - 100% of UPB
Derivative liabilities, other6,245Discounted cash flowVisa covered litigation resolution amount$4.4 billion - $5.2 billion
Probability of resolution scenarios10% - 30%
Time until resolution24 - 54 months
Loans, net of unearned income (a)31,070Appraisals 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)11,235Appraisals from comparable propertiesAdjustment for value changes since appraisal0% - 10% of appraisal
Other assets (c)29,609Discounted 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, 2015Valuation TechniquesUnobservable InputValues Utilized
Trading securities - mortgage$4,372Discounted cash flowPrepayment speeds42% - 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.
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, 2016
(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$24,269  $35,262  $(10,993)
Nonaccrual loans6,775  12,910  (6,135)
Loans 90 days or more past due and still accruing211  331  (120)
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)
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)201620152014
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held-for-sale$3,380$2,765$52,494
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, 2016 and 2015.

  December 31, 2016
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  $12,058,689  $-  $-  $11,918,374  $11,918,374  
Commercial real estate  2,101,671  -  -  2,078,306  2,078,306
Consumer:          
Consumer real estate 4,473,395  -  -  4,385,669  4,385,669  
Permanent mortgage 406,836  -  -  404,930  404,930  
Credit card & other  346,861  -  -  347,577  347,577  
Total loans, net of unearned income and allowance for loan losses  19,387,452  -  -  19,134,856  19,134,856  
Short-term financial assets:          
Interest-bearing cash  1,060,034  1,060,034  -  -  1,060,034  
Federal funds sold  50,838  -  50,838  -  50,838  
Securities purchased under agreements to resell  613,682  -  613,682  -  613,682  
Total short-term financial assets1,724,5541,060,034664,520-1,724,554
Trading securities (a)897,071  -  894,498  2,573  897,071  
Loans held-for-sale (a)111,248  -  6,631  104,617  111,248  
Securities available-for-sale (a) (b)3,943,499  25,249  3,756,745  161,505  3,943,499  
Securities held-to-maturity14,347  -  -  14,773  14,773  
Derivative assets (a)121,654  33,587  88,067  -  121,654
  
Other assets:  
Tax credit investments  100,105--98,40098,400  
Deferred compensation assets32,84032,840--32,840
Total other assets  132,945  32,840  -  98,400  131,240
Nonearning assets:    
Cash & due from banks  373,274  373,274  -  -  373,274  
Fixed income receivables  57,411  -  57,411  -  57,411  
Accrued interest receivable  60,870  -  60,870  -  60,870  
Total nonearning assets  491,555  373,274  118,281  -  491,555
Total assets  $26,824,325  $1,524,984  $5,528,742  $19,516,724  $26,570,450
          
Liabilities:    
Deposits:    
Defined maturity$1,355,133  $-  $1,361,104  $-  $1,361,104  
Undefined maturity21,317,230-21,317,230-21,317,230
Total deposits22,672,363  -22,678,334-22,678,334  
Trading liabilities (a)561,848  -  561,848  -  561,848
Short-term financial liabilities:    
Federal funds purchased414,207-414,207-414,207
Securities sold under agreements to repurchase  453,053  -  453,053  -  453,053  
Other short-term borrowings83,177-83,177-83,177
Total short-term financial liabilities  950,437  -  950,437  -  950,437
Term borrowings:    
Real estate investment trust-preferred  46,032  -  -  49,350  49,350  
Term borrowings - new market tax credit investment  18,000  -  -  17,918  17,918  
Borrowings secured by residential real estate23,126--21,96921,969
Other long term borrowings953,498-965,066-965,066
Total term borrowings1,040,656  -  965,066  89,237  1,054,303  
Derivative liabilities (a)135,897  33,274  96,378  6,245  135,897
  
Other noninterest-bearing liabilities:    
Fixed income payables  21,002  -  21,002  -  21,002  
Accrued interest payable  10,336  -  10,336  -  10,336  
Total other noninterest-bearing liabilities31,338  -  31,338  -31,338
Total liabilities$25,392,539  $33,274  $25,283,401  $95,482$25,412,157

  • 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 $68.6 million.

  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
Consumer:          
Consumer real estate4,685,904  -  -  4,479,333  4,479,333  
Permanent mortgage435,176  -  -  400,970  400,970  
Credit card & other  342,651  -  -  344,892  344,892  
Total loans, net of unearned income and allowance for loan losses17,476,260  -  -  17,125,756  17,125,756  
Short-term financial assets:          
Interest-bearing cash  602,836  602,836  -  -  602,836  
Federal funds sold114,479-114,479-114,479
Securities purchased under agreements to resell  615,773  -  615,773  -  615,773  
Total short-term financial assets  1,333,088  602,836  730,252  -  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--15,34915,349
Derivative assets (a)104,365  4,361  100,004  -  104,365  
Other assets:          
Tax credit investments  91,507  -  -  55,406  55,406  
Deferred compensation assets  29,399  29,399  -  -  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  $17,480,530  $24,027,969  
          
Liabilities:          
Deposits:          
Defined maturity  $1,231,876  $-  $1,238,044  $-  $1,238,044  
Undefined maturity  18,735,602  -  18,735,602  -  18,735,602  
Total deposits  19,967,478  -  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 borrowings  137,861  -  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 estate  41,100  -  -  35,469  35,469  
Other long term borrowings  1,207,613  -  1,193,482  -  1,193,482  
Total term borrowings1,312,677-1,193,482102,7911,296,273
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 liabilities  37,943  -  37,943  -  37,943  
Total liabilities  $22,932,616  $3,527  $22,811,252  $107,601  $22,922,380  

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.

  • 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.

Contractual AmountFair Value
(Dollars in thousands)December 31, 2016December 31, 2015December 31, 2016December 31, 2015
Unfunded Commitments:  
Loan commitments$8,744,649  $7,903,294$2,924  $2,748
Standby and other commitments277,549  279,2724,037  4,421